LAW
OF CONTRACT - NATURE AND OBJECT:
The
law of contract forms the oldest branch of law relating to business because it
is existed from the very time of living the person in a group. The Law of
Contract is the most crucial area of commercial law because every commercial
transaction begins with an agreement between two or more people, Law of
Contract is concerned with agreements that can be upheld in court.
The object of the Law of
Contract is to introduce definiteness in commercial and other transactions. Law
of contract is determining the circumstances in which promises made by the
parties to a contract shall be legally binding on them. There are rules
defining remedies, which are available in court of law against the person who
fails to perform, and the conditions under which the remedies are available. The
law of contract is most important to those people who are engaged in trade, commerce
and industry, as all the activities are being regulated by the law of contract.
According to Salmond a
contract is an agreement creating and defining obligations between the parties.
According to Sir William
Anson, A contract is an agreement enforceable at law made between two or more
persons, by which rights are acquired by one or more to acts or forbearances on
the part of the other or others.
Sir William Anson
observed: As the law relating to property had its origin in the attempt to
ensure that what a man has lawfully acquired, he shall retain, so the law of
contract is intended to ensure that what a man has been led to expect shall
come to pass; and that what has been promised to him shall be performed.
Thus, in short, it can
be said that the object of law of contract is to ensure realization of reasonable
expectation of the parties entered into contract.
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