What Is The Legal Definition Of The Contract According To The Contract Act 1872?

Pakistani contact act 1872 contains the law relating in contracts. It provides the rules I commercial transactions. It determines the circumstances in which promises made by the parties to a contract shall be legally binding on them. It honors all the customs or usage of trade which are inconsistent with the act. However where the act is silent and there is no usage or custom relevant to the case decision are made on the basis of equality and justice, It is most important branch of law. It affects all of us in our daily life.

The relating to contract in Pakistan is containing in the contract act, 1872. it extends to the whole of Pakistan and  came into force on the 1st day of September, 1872. it consists of 238 sections divided in the following parts.

• General principles governing all types of contracts.
• Sections 76 to 123 stand repealed.
• Contracts of indemnity and guarantee.
• Contracts of bailment and pledge.
• Contracts of agency.

Initially the provisions relating to sale of good and partnership were also contained in the contract act. But subsequently sections 76-123 relating to sale of goods were repealed and a separate act called the sale of goods act 1930.