Pros And Cons Of Indian Contract

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INTRODUCTION

A contract is an agreement, enforceable by law, made between at least two parties by which rights are acquired by one and obligations are created on the part of another. If the party, which had agreed to do something, fails to that, then the other party has a remedy. It is a voluntary, deliberate, and legally binding agreement between two or more competent parties. Contracts are usually written but may be spoken or implied, and generally have to do with employment, sale or lease, or tenancy.
For example D Airlines sells a ticket on 1 January to X for the journey from Mumbai to Bangalore on 10 January. The Airlines is under and obligation to take X from Mumbai to Bangalore on 10 January. In case the Airlines fail to fulfil its promise, X has a remedy against it. Thus, X has a right against the Airlines to be taken from Mumbai to Bangalore on 10 January. A corresponding duty is imposed on the Airlines. As there is a breach of promise by the promisor (the Airlines), the other party to the contract (i.e., X) has a legal remedy.
There are various essentials of valid contract as laid down in Indian Contract Act, 1872. The essentials of a valid contract are proposal and acceptance, Consideration, competence of parties to contract and free consent. There is various form of contract as laid down in Indian Contract act 1872.
The “Bank of Bihar vs. Damodar Prasad” is the case of guarantee. Guarantee is type of contract and defined in section 126 of Indian Contract

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