A business contract is a legally binding agreement between two or more parties. It defines obligations, rights, and remedies in commercial transactions. Governed primarily by the Indian Contract Act, 1872, contracts are essential for smooth business functioning.
Clear proposal and unconditional acceptance.
Something of value exchanged by parties.
Legal ability to enter into an agreement.
No coercion, fraud, or undue influence.
The purpose must be legal and ethical.
Clear terms and feasible obligations.
Defines roles, responsibilities, and profit sharing of partners.
Governs rights and obligations of shareholders in a company.
Outlines terms for services to be provided between parties.
Protects confidential and sensitive business data.
Defines the employment relationship, terms, and benefits.
Regulates terms between a business and its suppliers.
| Law | Role |
|---|---|
| Indian Contract Act, 1872 | Governs all contractual obligations. |
| Companies Act, 2013 | Applies to contracts by/with companies. |
| Specific Relief Act, 1963 | Remedies for breach of contracts. |
| Indian Stamp Act, 1899 | Stamping requirement based on jurisdiction. |
| IT Act, 2000 | Legalizes e-contracts and digital signatures. |
Compensation for losses due to breach.
Court orders party to fulfill obligations.
Prevents a party from performing certain acts.
Cancels contract; restores original position.
Fair compensation for partially completed work.