Law of Contract is the whole law of agreements that deals with legal obligations arising from an agreement between two or more parties. Let us understand the statement in detail.

Definition of Law of Contract

The Law of Contract is a body of law that governs agreements between parties. It includes legal rules that determine the conditions under which promises are binding and enforceable. It also defines the rights and obligations of parties to a contract.

Explanation of the statement

(a) The whole law of obligations

The Law of Contract is a part of the law of obligations. The law of obligations is a broad category of legal rules that governs any situation where one person owes a duty to another person. This includes contracts, torts, and other forms of legal obligation.

(b) The whole law of agreements

The Law of Contract is the whole law of agreements. It is concerned with contracts that are legally enforceable. A contract is an agreement that creates an obligation between parties. The law of contract governs the creation, performance, and enforcement of these obligations.

(c) Deals with only such legal obligation which arise from an agreement

The Law of Contract only deals with legal obligations that arise from an agreement between parties. It does not govern other forms of legal obligation, such as those arising from torts or criminal law. For a contract to be legally enforceable, it must meet certain requirements, such as having a valid offer, acceptance, and consideration.

(d) Deals with social agreements

The Law of Contract does not deal with social agreements. Social agreements are agreements that are not legally enforceable, such as promises made between friends or family members. These agreements are not legally binding and cannot be enforced in a court of law.

Conclusion

The Law of Contract is a fundamental area of law that governs agreements between parties. It is concerned with legally enforceable contracts and defines the rights and obligations of parties to a contract. The law of contract is an essential part of the law of obligations and plays a crucial role in commercial transactions, employment relationships, and other areas of modern life.

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