Week 1 - Section 1 - 2

PRELIMINARY  
1.   Short title. This Act may be called the Contract Act, 1872.   Extent and commencement.   It extends to the whole of Pakistan; and it shall come into force on the first day of September, 1872.   Enactments repealed. Nothing herein contained shall affect the provisions of any Statute, Act, or Regulation not hereby expressly  repealed, nor any usage or custom of trade, nor any incident of any contract not inconsistent with the provisions of this Act.      2. Interpretation clause. In this Act the following words and expressions are used in the following senses unless, a contrary  intention appears from the context-- (a)  “Proposal”: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal;   (b) “Promise”: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise;   (c)  Promisor and Promisee”: The person making the proposal is called the”promisor”, and the person accepting the proposal is called  the”promisee”;   (d)  “Consideration”: When, at the desire of the promisor, the promisee or any other person who has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from  doing, something, such act or abstinence or promise is called a consideration for the promise;   (e) “Agreement”: Every promise and every set of promises, forming he consideration for each other, is an agreement;   (f) “Reciprocal promises”: Promises which form the consideration or part of the consideration for each other called reciprocal promises;   (g) “Void agreement”: An agreement not enforceable by law is said to be void;   (h) “Contract”: An agreement enforceable by laws a contract;  (i) “Voidable contract”: An agreement which is enforceable by law at the opinion of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract; and   (j) “Void contract”: A contractor which ceases to be enforceable by law becomes void when it ceases to be enforceable.  

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