Law of Contract is an agreement of the parties, the object of which
is to create a legal obligation. Contract essentially consists mainly of two
elements: an agreement and a legal
obligation which is enforceable by law.
Before the British rule in the country, principles
of contract under the Muslim law were applicable to the members of the society
irrespective of their caste, creed or religious belief, but special rules of
contract between members of the Hindus were not disturbed.
Indiscriminate use of English law by the Supreme
Court in the Presidency town of Calcutta led to inconveniences to the native
people and caused discontentment amongst them. To obviate the same, British
Parliament enacted a law in 1781 which allowed the use of Muslim law of
contract in dealings between Muslims, and Hindu law of contract in dealings
between the Hindus. But the British rulers continued to apply principles of
English common law to all foreigners including the Englishmen residing in the
presidency towns and also to persons serving in the East India Company’s
various factories outside the presidency towns.
British rulers gradually started changing their
policy and introduced some of the principles of English common law through the
regulations made by the Governor-General-in-Council. But ultimately they felt
the necessity of codification of laws of the country, and thus came into being
the Indian Contract Act 1872 which is still in operation in Bangladesh with
little modification. This Act deals with general principles of contract.
Originally the Act contained provisions regarding
sale of goods in sections 72-123, repealed after enactment of the Sale of Goods
Act 1930 and partnership in sections 239-266 repealed after the enactment of
the Partnership Act 1932. In addition to the above three enactments, the
Carrier’s Act 1865, the Railways Act 1890, the Carriage of Goods by Sea Act
1925, the Carriage by Air Act 1934, and the Insurance Act 1938 deal with
special areas of contract. Contract Act after repeal of these sections contain
general principles of laws of contract (sections 1-75) and specific kinds of
contracts namely, contracts of indemnity and guarantee (sections 124-147),
contracts of bailment and pledge (sections 148-181) and contracts of agency
(sections 182-238). (Source-Banglapedia)
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