Contract - Definition - Law Dictionary Home Dictionary Definition contract

Definition :

Contract, an agreement between competent parties, to do or to abstain from doing some act. For numerous other definitions, see Chalmers's Sale of Goods Act, App. II., where it is said that the 'disposition of the best modern writers appears to be to define ' contract ' as an agreement enforce-able at law,' but contended that this definition seems rather too narrow.

Every contract is founded upon the mutual agree-ment of the parties; the other essentials are legality, capacity (depending on age, mental ability, sex and status) a mutual identity of consent (consensus ad idem), and form. When an agreement is stated either verbally or in writing it is usually called an express contract; when the agreement is matter of inference and deduction, it is called n implied contract. (See IMPLIED CONTRACT.)

Contract, which provides that the price includes the cost of the goods, the freight and the insurance premium for the transit, Halsbury's Laws of England, Vol. 3(1), para 253, p. 210.

Contracts may be classified in various ways.

As to their form, they maybe divided into (1) contracts of record, e.g., a recognizance; (2) contracts under seal, otherwise called 'specialty contracts'; (3) simple contracts, which may be either in writing or by parol, or may arise by implication of law from the acts of the parties. All simple contracts require a consideration to support them.

Contracts are also distinguished into executed and executory: executed, where nothing remains to be done by either party, and where the transaction is completed at the moment that the arrangement is made; as where an article is sold and delivered, and payment for it is made on the spot; executory, where some future act is to be done; as where an agreement is made to build a house in six months, or to do an act on or before some future day, or to lend money upon a certain interest payable at a future time.

There is also another distinction, namely, that between entire and severable contracts. An entire contract is one the consideration of which is entire on both sides. The entire fulfilment of the promise by either is a condition to the fulfilment of any part of the promise by the other. Whenever, therefore, there is a contract to pay a gross sum for a certain an definite consideration, the contract is entire. 'If a man engages to carry a box of cigars from London to Birmingham, it is an entire contract, and he cannot throw the cigars out of the carriage half-way there, and ask for half the money; or if a shoemaker agrees to make a pair of shoes, he cannot offer you one shoe, and ask you to pay one half the price' (Re Hall,(1878) 9 Ch D p. 545, per Jessel, M.R.). A severable contract, on the other hand, is one the consideration of which is, by its terms, susceptible of apportionment on either side, so as to correspond to the unascertained consideration on the other side, as a contract to pay a person the worth of his services so long as he will do certain work; or to give a certain price for every bushel of so much corn as corresponds to a sample. As to the evidence required to prove certain kinds of contracts, see FRAUDS, STATUTE OF; (English) Bills of Exchange Act,1882 (45 & 46 Vict. c. 61), s. 17, Copyright Act, 1911. Acknowledgements of debt barred by the Statute of Limitations. Representations as to credit, 9 Geo. 4, c. 14, s. 1; (English) Guarantee, Mercantile Law Amendment Act, 19 & 20 Vict. c. 97, s. 13 (English) L.P. Act, 1925, s. 40, partly replacing s. 4 of the (English) Statute of Frauds and Companies Act,1929, and as to contracts generally, see the works on Contracts of Addison, Anson, Chitty, Leake, Pollock, Pothier, or Story. See also CONSIDERATION,COMMON SEAL, CORPORATION, COMPANY, ILLEGALITY, IMPOSSIBILITY.

means agreements between those who are only ostensibly buyers and sellers o stocks and shares where the common intension of the parties is to pay or receive the differences between their prices on and dry and their prices on another day are contracts for differences and are contracts by way of wagering, Universal Stock Exchange v. Strachan, (1896) AC 166 (UK) Halsbury's Laws of England, Vol. 4(a), para 21, p. 14

is a deliberate engagement between competent parties upon a legal consideration to do or to abstain from doing some Act, Stroud's Dictionary of Law, Vol. 1, pp. 517-521

In India, the Union Government as well as the government of a State can make contracts for any purpose; these are expressed to be made by the President in respect of the Union and the Governor in respect of a State; however, neither the President not the Governor is personally liable in respect of any such contract, Constitution of India, Arts. 298 and 299.

In India, the Union Government as well as the government of a State can make contracts for any purpose; these are expressed to be made by the President in respect of the Union and the Governor in respect of a State; however, neither the President not the Governor is personally liable is respect of any such contract, Commentary on the Constitution of India, Durga Das Basu, Vol. 4, 5th Edn., pp. 400-401.