Forward Contract - Definition - Law Dictionary Home Dictionary Definition forward-contract

Definition :

Forward contract, means a transaction involving delivery, other than Cash or Tom or Spot delivery, of foreign exchange. [Foreign Exchange Manage-ment (Foreign Exchange Derivative Contracts) Regulations, 2000, R. 2 (iv)]

The expression 'forward contracts' in s. 2(c) is construed so as to include speculative contracts which ostensibly are for delivery of goods, Shivanarayana Kabre v. State of Madras, AIR 1967 SC 986 (989). [Forward Contracts (Regulation) Act, (74 of 1952), s. 2(c)]

An agreement to buy or sell a particular non-standardized asset (use currencies) at a fixed price on a future rate, Black's Law Dictionary, 7th Edn., p. 666.