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What is the significance of the Indian Contract Act, 1872?
- a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.
- b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.
- c)It introduces definiteness in business transactions and affects the entire society.
- d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.
Correct answer is option 'A'. Can you explain this answer?
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What is the significance of the Indian Contract Act, 1872?a)It determi...
The Indian Contract Act, 1872 plays a crucial role in regulating and governing contract laws in India. It is considered a significant piece of legislation as it determines the circumstances under which promises made by the contracting parties shall be legally binding on them.
1. Determining legally binding promises:
The Act outlines the essential elements of a valid contract, including offer, acceptance, consideration, intention to create legal relations, capacity, and free consent. These elements help to determine whether a promise made by the parties constitutes a legally binding contract. The Act ensures that parties are aware of their rights and obligations when entering into a contract.
2. Establishing rules and regulations:
The Act provides a comprehensive framework of rules and regulations for the formation and performance of contracts. It defines various types of contracts such as sale, lease, partnership, bailment, and agency, and lays down specific provisions related to each type. These rules help in protecting the interests of the parties involved and provide clarity in resolving disputes arising from contract breaches.
3. Rights and liabilities between parties:
The Act clearly defines the rights and liabilities of the contracting parties. It sets out the obligations that each party has towards the other and provides remedies in case of contract breaches. By doing so, it ensures fairness and equity in contractual relationships and promotes confidence in business transactions.
4. Impact on business transactions and society:
The Indian Contract Act, 1872 introduces definiteness and certainty in business transactions. It provides a legal framework that enables parties to engage in commercial activities with confidence and trust. The Act brings uniformity and coherence in contract laws, making it easier for businesses to operate and engage in trade or commerce smoothly. It also protects the interests of consumers and promotes economic development.
In conclusion, the significance of the Indian Contract Act, 1872 lies in its role in determining the circumstances under which promises made by the contracting parties shall be legally binding. It provides rules and regulations for contract formation and performance, establishes rights and liabilities between parties, and affects business transactions and society as a whole.
1. Determining legally binding promises:
The Act outlines the essential elements of a valid contract, including offer, acceptance, consideration, intention to create legal relations, capacity, and free consent. These elements help to determine whether a promise made by the parties constitutes a legally binding contract. The Act ensures that parties are aware of their rights and obligations when entering into a contract.
2. Establishing rules and regulations:
The Act provides a comprehensive framework of rules and regulations for the formation and performance of contracts. It defines various types of contracts such as sale, lease, partnership, bailment, and agency, and lays down specific provisions related to each type. These rules help in protecting the interests of the parties involved and provide clarity in resolving disputes arising from contract breaches.
3. Rights and liabilities between parties:
The Act clearly defines the rights and liabilities of the contracting parties. It sets out the obligations that each party has towards the other and provides remedies in case of contract breaches. By doing so, it ensures fairness and equity in contractual relationships and promotes confidence in business transactions.
4. Impact on business transactions and society:
The Indian Contract Act, 1872 introduces definiteness and certainty in business transactions. It provides a legal framework that enables parties to engage in commercial activities with confidence and trust. The Act brings uniformity and coherence in contract laws, making it easier for businesses to operate and engage in trade or commerce smoothly. It also protects the interests of consumers and promotes economic development.
In conclusion, the significance of the Indian Contract Act, 1872 lies in its role in determining the circumstances under which promises made by the contracting parties shall be legally binding. It provides rules and regulations for contract formation and performance, establishes rights and liabilities between parties, and affects business transactions and society as a whole.
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What is the significance of the Indian Contract Act, 1872?a)It determi...
The Indian Contract Act, 1872 is significant as it establishes the rules and principles governing contracts in India. It determines the conditions under which promises made by the contracting parties become legally binding and enforceable. The act specifies the remedies available in case of a breach of contract and provides clarity in contractual relationships.Example: A and B enter into a contract for the sale of goods. The Indian Contract Act, 1872 sets out the legal framework for their agreement, including the formation, performance, and enforcement of the contract.
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What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer?
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What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer?.
What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the significance of the Indian Contract Act, 1872?a)It determines the circumstances under which promises made by the contracting parties shall be legally binding on them.b)It provides rules and regulations for the purpose of contract, including rights and liabilities between parties.c)It introduces definiteness in business transactions and affects the entire society.d)It is the most important branch of mercantile law, essential for carrying on trade or commerce smoothly.Correct answer is option 'A'. Can you explain this answer?.
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