Histor of contract law

What governed contracts in Ancient India?

There was no specific contract law; rules came from Dharmashastra.

Which ancient text contained rules relating to contracts?

Dharmashastra (including Vyavahara sections).

According to Manusmriti Ch. 8 Verse 163, which contracts are invalid?

Contracts made by intoxicated, insane, or minor persons.

Which section of the Indian Contract Act is similar to Manusmriti Ch. 8 Verse 163?

Section 11 (Competency to Contract).

According to Narada Smriti Verse 51, when could a person enter into a contract?

At the age of 16.

Which Act changed the age of majority from 16 to 18?

Indian Majority Act, 1875.

What distinction did Kautilya make regarding contractual capacity?

Between personal contractual capacity and legal authority to bind others.

Who is a Karta?

Head of a Hindu Joint Family with power to bind the family in certain transactions.

Who can become a Karta?

Traditionally the father; after his death, the mother; now the senior-most coparcener (including women after legal developments).

According to Manu Smriti Ch. 8 Verses 165 & 168, what is the effect of lack of free consent?

The contract is invalid.

Which section of the Indian Contract Act deals with free consent?

Section 14.

What happens to a fraudulent mortgage, sale, or gift under ancient law?

It is null and void.

What is the effect of transactions made under force?

They are void.

Before the Indian Contract Act, what principles governed contracts acc to Manu Smriti?

Contracts had to be transparent, witnessed, and free from fraud or force

According to Katyayana Smriti, who is liable if a wife borrows money for necessity?

The husband is liable to repay.

Which verse of Katyayana Smriti deals with incapability?

545 and 568

What section talks about incapability like in Katyayana Smriti?

Section 68

What is the objective of the Indian Contract Act, 1872?

To regulate rights and obligations arising from contracts.

Before 1872, how were contract laws applied in India?

Personal laws (Hindu and Muslim laws) governed contracts.

How did English law arrive?

By Charter of 1726

Whom did the English law initially governed

The King's merchants.

What happened under the Regulating Act, 1773?

The Calcutta Mayor's Court became the Supreme Court.

What major change occurred after the Regulating Act, 1773?

English common law began to be applied to Indians, creating conflicts with Hindu and Muslim laws.

What problem arose from applying English common law to natives?

Conflict with existing Hindu and Muslim personal laws.

What did the Act of Settlement, 1781 do?

Restricted English law and protected personal laws in family matters (Section 17)

To which cities was the Act of Settlement later extended?

Bombay and Madras.

How was the legal system in 19th-century India described?

A legal mess.

Was there a specific contract law before 1872?

No.

On what basis were many contract disputes decided before 1872?

Justice, equity, and good conscience.

What was the drawback of deciding cases on justice, equity, and good conscience?

The law became uncertain and inconsistent.

According to Professor M. P. Jain, what was the nature of pre-1872 contract law?

A mixed system of English, Hindu, and Muslim law.

Why was pre-1872 law uncertain according to M. P. Jain?

Judges had discretion and decisions changed over time.

Which Law Commission drafted the Indian Contract Bill?

The Third Law Commission (1861).

Who prepared the first draft of the Indian Contract Bill in 1866?

The Third Law Commission.

Why did the Law Commission resign during drafting?

Differences of opinion.

Who completed the final draft of the Indian Contract Act?

Sir James F Stephen.

When did the Indian Contract Act come into force?

1 September 1872.

Under which provision does the Indian Contract Act continue to operate?

Article 372(1) of the Constitution.

How many sections did the original Indian Contract Act contain?

266 sections.

Which topics were originally included in the Indian Contract Act?

General principles, special contracts, sale of goods, and partnership.

Which subjects were later separated from the Indian Contract Act?

Sale of Goods and Partnership.