Our aim is to try to give information about the law in common language to our readership, so we have created a separate section of legal knowledge in this blog. Under which we can give information about the law on different topics.
In the context of this topic, today we will see what is called a contract? And there are many types of contracts in our life, in which we will see about what is called a legal contract and why a simple promise or promise is not considered legal. What is an international contract and how does it applied in other countries, if there is a dispute, then in which court these disputes are run. Trying to find answers to many such questions will go through this article.
It is necessary to have the consciousness of justice in the people who run the law and order, otherwise, no matter how much knowledge of justice, but if there is no consciousness to give justice, then law and order cannot run. Therefore, in our personal life and in business life, contract is a very important thing, which is very important to be legal. Will try to know what is a registered contract and what is an ordinary contract.
Next we will try to know in detail what is a contract? How many types of contracts are there? What are the necessary components of the contract, many such aspects of the contract will try to be kept in front of you.
What is Contract ? –
The Contract means a legal agreement in which there are more than two parties and their rights and duties are fixed for some work. When these contracts are made according to the law, rights and duties are fixed in everyone and this contract becomes legally applicable to the people involved in the contract. It also includes business contracts and personal contracts/agreements which are bound by law.
These contracts may be oral only, may be express and may be primarily written. These contracts can be on an individual level as well as for business purposes. Such contracts are made politically, so the parties involved in the contract can be a person or a law body can also contract, it is called a legal entity in legal language.
We will see further how legal contracts should be made through the Contract Act, but it is very important to know which contracts are valid in the court as a whole. If we talk about property documents, then they are declared valid through government registered. The financial contract is declared valid through this stamp paper and registered fee. The same notarized document is also considered legal to some extent.
History of Contract –
The contract system in the human civilization began after the development of trade, in which the responsibility of both parties to complete any barter transaction was fixed on this trust. There was always the possibility of disputes in this and human civilization felt the need to have some rules for this, due to which the role of mediator in the polity was created, which could be done according to the rules. But in some practice the resolution of such disputes was very strange because the written contract system had not yet been created.
Very strange rules were used to give money through loans, in which a person or any property was kept as security, which meant that the property was more important than the promise. The true meaning of the contract method is seen in the Roman Empire in the 6th century, in which such contracts were made, which were bound contracts and those that are not bound. After this the contract system is not seen continuously till the 13th century.
In the 13th century, trade started increasing in Europe and education started spreading in a good amount, through which the merchant class established merchant courts through their own organized institution and opened these courts to settle trade disputes, in which the importance of written contract was established. Had a role. In British India, we have seen the use of contract law, the same basic structure that has been seen after 1947, in which after 1990, changes were made to the globalization that has been made according to international trade.
Difference between Contracts & Agreements –
It is said that not all agreements are contracts, but all contracts must have an agreement. Promising for something normal cannot be a contract, when we give a promise to give a gift to a close person and do not fulfill it, it does not mean that it is not a breach of contract because it has to fulfill the law requirements, so it is not done. Only the contract is called.
Completion of this agreement is not legally binding, but it is necessary to fulfill the contract legally. The purpose of making the contract and agreement different is that the aggrieved person or organization has the right to get compensation for not fulfilling the contract, it is not in the agreement. That is why it is very important for us to know the basic difference between contract and agreement.
Contract This is a very complicated process, there is no obligation for the same agreement and it does not matter in the court. What should be the validity of the contract, we will see later, but on its validity and invalidity, it is understandable that this is a contract. Most importantly, there are two parties that are legally eligible to enter into a contract. In this, no contract is made by putting anyone under pressure and the contract of such behavior is not binding on the behavior which has been declared illegal in the eyes of law.
Indian Contract Act 1872 –
Before this law was implemented in British India, rules were made on the basis of religion to behave in the society. The purpose of bringing this law in British India British came mainly to do business and their legal system was very old which was based on logic and facts, which we still use today.
There was no separate rule and separate justice system for anyone here, so even today we use this system. Most of the people in the society do not think on logic and facts, they think in an emotional way, so problems are created and everyone feels that I am equal in my place, so jurisprudence based on facts has always been a very effective jurisprudence.
Ever since this law was enacted, many changes have been made in it, in which the Partnership Act and the Sales of Goods Act have been separated from the Contract Act because it is a very big subject. Many laws made in British India after 1950 are still used today.
In which changes were made after the introduction of international law in all member countries after 1990, and after the advent of computers, this concept was included in the digital contract, under which the contracts made were also included. Many contracts like property have not been made digital even today.
What is Business Contract –
As the different registration of running the company and the process of making their contract under its rules, it was considered as a separate component in the form of business, contract, for which the need of professional logo was started and the concept of business contract was created.
Like our property contract, gift document at the individual level, many contracts are required in the business under which the transactions are done.
In which many people have to be dealt with and many problems are created, so to handle this thing in a professional way, under the business contract, a list of all the contracts to be put for business in a format is made so that no contract remains. Don’t go
What are the types of business contract –
- partnership contract
- indemnity contract
- bill of sale contract
- employment agreements
- promissory notes
- licensing agreements
- property agreement
Elements of contracts –
- treatment of money
- Contractor’s mental capacity
- follow legal rules
- Main Types of Contracts (Based on Formation) –
- Express Contract / Express Contract
- Employed, Contract
- quasi contract
- e contract
What is called illegal contract –
Contracts which are not made under the Indian Contract Act are declared illegal. What are the components required to make a contract, it validates the validity of the contract. In which provisions have been given to make the contract legal by making some changes in the contract, illegal contract.
The contract which is made by following all the rules of law is called a valid contract. In which some of the following components make the contract illegal.
- contracts made under pressure
- unreasonable contract rules
- Rules made against public policy
- the purpose of the contract is unlawful
- A party in the contract is not able to contract
Breach of contract –
Contracts are made in accordance with the law, to fulfill its purpose, the law provides protection to it and it is resolved if any problem arises in the future. Justice is given to the victim, be it in the form of money or in the form of fulfillment of the contract. Breach of contract means the promise made by both the parties to each other in the written contract and when one party does not fulfill this promise, it is considered a breach.
The purpose of making this law is to protect personal behavior and business behavior. Therefore, the more valid the contract, the safer it will be for the victim and it is not easy for any party to violate the rules of the contract. In the Court of Law, every document for the registration of the contract is seen as evidence to prove the validity or infringement of the contract.
Breach of contract in an international contract makes it a complex subject, with disputes being resolved through alternative dispute resolution (ADR) rather than through a traditional court of law. Which has been given the rights of Quasi Judiciary by the Government of India by making a law, which saves the waste of time and money. We get to see this judicial system in India after 1990. The same is used for all types of contract violations.
What is Contract Management ?
Many contracts are made at the individual level but very few are made. That’s why this contract management system is used in the business world. Small companies do not give much importance to it, but in big companies a lot of time is given for this. So that many contracts made in the business can be completed well, due to which the losses to the company are very high. Hence, contract management is considered a very important component in business industries.
The entire process is planned from the inception of the contract to its implementation. Many types of contracts given above are being made every day in the company, so planning it becomes very important. Every day many contracts are made in a big corporate company, for which the legal department is posted, which is responsible for all the activities from its validity to completion.
Therefore, from the contract with employees to the business contract with the company, many types of contracts have to be seen by the legal department every day. In which many disputes go to court and for the sake of caution, the company has to plan all the contracts on priority. After the advent of digital technology, this method of management, software is made for such management by spending money through a computer.
What is called Social Contract –
In a democracy, the society is the king and he creates the state by his representative, so it is called social contract. Philosophers like Thomas Hobb, John Locke and Rousseau created this concept which is called social contract. the Preamble of our Constitution It is the citizens of India and the Government of India, which is called a state in legal language, in which social agreement is made. The citizens of the country will send their representatives to the Parliament after years and they will work for the citizens.
In order to make a normal contract, it is necessary to have a transaction or transaction of money, but there is no such provision in the social contract. Here people choose their representatives and they run the system of democracy for them. If those representatives are not working properly, then they are replaced through elections. The country whose citizens are aware of their rights and rights, that social contract runs democracy effectively and controls the citizens of the power.
This is a contract made between the ruler and the citizen, in which no such law has been made when it comes to India for the wrong behavior made by the ruler. But still it is considered a contract. Every elected representative of the Parliament is accountable to the citizens of his constituency, so after every five years of elections, if this representation does not work properly, then the public replaces him.
After the creation of the Internet and computers, many changes were made in the Contract Act and the Evidence Act, under which the contract made on the Internet platform was given legal recognition, in which many important contracts are still made directly, but many contracts are made in today’s era. This is known as an electronic contract.
When we withdraw money from ATM from any bank or do any transaction through credit card, it all comes under e-contract. We get to see many contracts like terms and conditions, disclaimer, on many digital mediums running YouTube channels and blogs, websites which are considered legally valid. Through the technology of digital signature, a person or company of a country makes e-contract with a person or company sitting thousands of miles away.
To win digital technology will be part of our life so much law and order has to change itself. That’s why we see that changes have been made in the Contract Act and Evidence Act along with the increase in digital activities. Therefore, the interpretation of what is called a digital document as evidence has been changed. The basic principles of contract making are the same, only some technology related changes have been made in the law.
Validity of Contracts –
The legal validity of the contract depends on its registration, the fee of which has to be paid to the government system. Due to which the legal responsibility of your contract is taken by the government and if it is violated, it becomes easy for the victim to get justice. The Legal system is seen as a fear in India and spending money for it is not considered a priority.
Although many contracts are made, but the agreement made according to the rules of law is called a contract. Generally, a document made on the ground level only on stamp paper is also called a contract, a notary document is also called a contract. For it to be a legally binding, the more that document is securely registered, the more it will be valid.
There are many problems regarding the contract due to lack of knowledge of the people and most of the time people like to settle the problem through mutual agreement on breach of contract. Therefore, the awareness of what is called a valid contract is not seen in the society or in the business industries.
In this way, we have seen here what is called a contract and how many types are there. Due to lack of knowledge of many people in the society, many times the wrong type of contracts is completed under pressure. That’s why our reason for writing here on this topic is to give legal information about the contract so that the mishaps can be prevented.
Big companies in the business sector are well aware of the importance of contracts, so they spend a lot on it, but small companies try to avoid it, which creates problems in many dealings while doing business, in which how the contract should be done Due to lack of correct information, wrong decisions are taken.
That’s why we have tried to give you the most important information about the contract that suits you. We have seen through legal changes what the consequences of digital contracts will be in today’s times and how responsibility will be determined. We believe that in future you will get the benefit of this article. If you have any question regarding this then you can contact us.