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The Indian Contract Act, 1872 [1] prescribes the law relating to contracts in India and is the key regulating Indian contract law. Then the principles of English Common Law. It is applicable to all the states of India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding.
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Contract law, minority, mortgage Mohori Bibee v Dharmodas Ghose , [1903] UKPC 12, is a major Indian contract law case decided by the Judicial Committee of the Privy Council . The case held that a contract entered into by a minor is totally void.
The landmark case Toshniwal Brothers (Pvt.) Ltd. vs Eswarprasad, E. and Others, decided in 1996, describes the legality of employment bonds in India.It holds that under the Indian Contract Act, 1872, contracts requiring an employee to pay a bond if they prematurely resign their employment are legal and enforceable, at least in cases where employers pay expenses like training for the employee. [2]
The rules were exported across the British Empire, as for example in the Indian Contract Act 1872. [39] Further requirements of fairness in exchanges between unequal parties, or general obligations of good faith and disclosure were unwarranted because was said that liabilities "are not to be forced upon people behind their backs". [40]
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