125-723: The Permanent Settlement , also known as the Permanent Settlement of Bengal , was an agreement between the East India Company and landlords of Bengal to fix revenues to be raised from land that had far-reaching consequences for both agricultural methods and productivity in the entire British Empire and the political realities of the Indian countryside. It was concluded in 1793 by the Company administration headed by Charles, Earl Cornwallis . It formed one part of
250-412: A Law Commission -sponsored proposal to both unite and codify English and Scots Law, proposed the abolition of consideration. Some commentators have suggested for consideration to be replaced by estoppel as a basis for contracts. A contract is often evidenced in writing or by deed . The general rule is that a person who signs a contractual document will be bound by the terms in that document. This rule
375-539: A meeting of the minds between the parties. Within the overarching category of civil law jurisdictions, there are several distinct varieties of contract law with their own distinct criteria: the German tradition is characterised by the unique doctrine of abstraction , systems based on the Napoleonic Code are characterised by their systematic distinction between different types of contracts, and Roman-Dutch law
500-434: A severability clause . The test of whether a clause is severable is an objective test—whether a reasonable person would see the contract standing even without the clauses. Typically, non-severable contracts only require the substantial performance of a promise rather than the whole or complete performance of a promise to warrant payment. However, express clauses may be included in a non-severable contract to explicitly require
625-467: A tort action based on reliance. Although verbal contracts are generally binding in most common law jurisdictions, some types of contracts may require formalities such as being in writing or by deed . A contract cannot be formed without assent of the two parties to be bound by its terms. Normally this is by written signature (which may include an electronic signature), but the assent may also be oral or by conduct. Assent may be given by an agent for
750-517: A Western-European style land market in Bengal, and encouraging investment in land and agriculture, thereby creating the conditions for long-term economic growth for both the company and region's inhabitants. Firstly, the policy of fixing the rate of expected tax revenue for the foreseeable future meant that the income of the company from taxation actually decreased in the long-term because revenues remained fixed while expenses increased over time. Meanwhile,
875-407: A certain field. In addition, the court may also imply a term; if price is excluded, the court may imply a reasonable price, with the exception of land, and second-hand goods, which are unique. If there are uncertain or incomplete clauses in the contract, and all options in resolving its true meaning have failed, it may be possible to sever and void just those affected clauses if the contract includes
1000-696: A civil law legal system at independence or adopting civil and commercial codes based on German or French law. While jurisdictions such as Japan, South Korea, and the Republic of China modelled their contract law after the German pandectist tradition, the Arab world largely modelled its legal framework after the Napoleonic Code . While the Netherlands adopted a legal system based on the Napoleonic Code in
1125-569: A contract use technicalities to satisfy requirements while in fact circumventing them in practice. Typically, this is in the form of "peppercorn" consideration, i.e. consideration that is negligible but still satisfies the requirements of law. The doctrine of consideration has been expressly rejected by the UNIDROIT Principles of International Commercial Contracts on the grounds that it yields uncertainty and unnecessary litigation, thereby hindering international trade. Similarly,
1250-454: A contractual term will become a condition: A term is a condition (rather than an intermediate or innominate term, or a warranty), in any of the following five situations: (1) statute explicitly classifies the term in this way; (2) there is a binding judicial decision supporting this classification of a particular term as a "condition"; (3) a term is described in the contract as a "condition" and upon construction it has that technical meaning; (4)
1375-606: A family friend. Towards the close of 1768 he sailed for India as a writer in the East India Company's service. Soon after his arrival in Kolkata, then called Calcutta, in May 1769 Shore was appointed to the secret political department, in which he remained for about twelve months. In September 1770 he was nominated assistant to the board of revenue at Murshidabad . Shore at the age of 19 suddenly found himself invested with
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#17327658761251500-411: A future date. The activities and intentions of the parties entering into a contract may be referred to as contracting . In the event of a breach of contract , the injured party may seek judicial remedies such as damages or equitable remedies such as specific performance or rescission . A binding agreement between actors in international law is known as a treaty . Contract law, the field of
1625-586: A larger body of legislation, known as the Cornwallis Code . The Cornwallis Code of 1793 divided the East India Company's service personnel into three branches: revenue, judicial, and commercial. Revenues were collected by zamindars , native Indians who were treated as landowners. This division created an Indian landed class that supported British authority. The Permanent Settlement was introduced first in Bengal and Bihar and later in Varanasi and also
1750-576: A minute into the records of the Supreme Council. As a result of what was seen as a breach of confidence, Shore resigned his seat on the board. In January 1785 Shore returned to England in the company of Hastings. While in England, on 14 February 1786 he married Charlotte, the only daughter of James Cornish, a medical practitioner at Teignmouth. Having been appointed by the Court of Directors to
1875-411: A mixture of Roman-Dutch law and English common law (e.g. South Africa and neighbouring countries). In common law jurisdictions, the formation of a contract generally requires an offer, acceptance , consideration , and mutual intent to be bound . The concept of contract law as a distinct area of law in common law jurisdictions originated with the now-defunct writ of assumpsit , which was originally
2000-533: A monument was erected to his memory. Teignmouth was elected president of the Royal Society of Literature, but declined the office in favour of Bishop Burgess. Teignmouth was a close friend of Sir William Jones, whom he succeeded as president of the Asiatic Society of Bengal on 22 May 1794. On that occasion he delivered an address on the 'Literary History' of his predecessor (London, 1795), which
2125-839: A number of articles for the Christian Observer , and the earlier annual reports of the Bible Society were written by him. He was also the author of some mediocre verse. He published: A portrait of Teignmouth was painted by Arthur William Devis . Teignmouth had three sons and six daughters by his wife, who died on 13 July 1834. He was succeeded in the title by his eldest son, Charles John Shore . His second son, Frederick John , married Charlotte Mary Cornish of Devonshire in 1830. His second daughter, Anna Maria, married Sir Thomas Hill . Another daughter, Caroline Dorothea, married Rev. Robert Anderson (their eldest daughter, Florence Caroline, married Lord Alwyne Compton ). Shore
2250-451: A party. Remedies for breach of contract include damages (monetary compensation for loss) and, for serious breaches only, cancellation. Specific performance and injunction may also be available if damages are insufficient. In order for a legally enforceable contract to be formed, the parties must reach mutual assent (also called a meeting of the minds ). This is typically reached through an offer and an acceptance which does not vary
2375-406: A patient refuses to pay after being examined by a doctor, the patient has breached a contract implied in fact. A contract which is implied in law is sometimes called a quasi-contract . Such contracts are means for courts to remedy situations in which one party would be unjustly enriched were he or she not required to compensate the other. Quantum meruit claims are an example. Where something
2500-478: A pharmaceutical manufacturer, advertised a smoke ball that would, if sniffed "three times daily for two weeks", prevent users from catching the flu . If it failed to do so, the company promised to pay the user £ 100, adding that they had "deposited £1,000 in the Alliance Bank to show [their] sincerity in the matter". When the company was sued for the money, they argued the advert should not have been taken as
2625-530: A purported acceptance that varies the terms of an offer is not an acceptance but a counteroffer and hence a rejection of the original offer. The principle of offer and acceptance has been codified under the Indian Contract Act, 1872 . In determining if a meeting of the minds has occurred, the intention of contracting parties is interpreted objectively from the perspective of a reasonable person . The "objective" approach towards contractual intent
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#17327658761252750-438: A reasonable construction of the contract. In New South Wales, even if there is uncertainty or incompleteness in a contract, the contract may still be binding on the parties if there is a sufficiently certain and complete clause requiring the parties to undergo arbitration, negotiation or mediation. Courts may also look to external standards, which are either mentioned explicitly in the contract or implied by common practice in
2875-490: A result, landholders were unsupervised or reported to corrupt and indolent officials. The result was that revenues were extracted without regard for future income or local welfare. Following the devastating famine of 1770 , which was partially caused by this shortsightedness, Company officials in Calcutta better understood the importance of oversight of revenue officials. Warren Hastings , then governor-general , introduced
3000-453: A reward for his services Shore was created Baron Teignmouth , of Teignmouth in the peerage of Ireland by letters patent executed at Dublin on 3 March 1798. Resigning the government into the hands of Sir Alured Clarke , Teignmouth left India in March 1798. On 4 April 1807 he was appointed a member of the board of control , an office to which no salary was attached, and four days afterwards
3125-473: A seat on the Supreme Council, Shore returned to India, and on 21 January 1787 he took his seat as a member of the government of Bengal. Many of the reforms instituted by Charles Cornwallis were attributable to Shore's influence in the council. In the summer of 1789, Shore completed the ten-yearly settlement of the revenues of Bengal, Bihar , and Odisha . Though Shore recommended caution and further inquiry, and protested against rigidity, his decision in favour of
3250-430: A serious, legally binding offer but a puff . The Court of Appeal held that it would appear to a reasonable man that Carbolic had made a serious offer and determined that the reward was a contractual promise. As decided in the case of Pharmaceutical Society of Great Britain v Boots Cash Cashiers , an offer that is made in response to an invitation to treat, without any negotiation or explicit modification of terms,
3375-625: A statement of common contractual principles for arbitrators and judges to apply where national laws are lacking. Notably, the Principles reject the doctrine of consideration, arguing that elimination of the doctrine "bring[s] about greater certainty and reduce litigation" in international trade. The Principles also rejected the abstraction principle on the grounds that it and similar doctrines are "not easily compatible with modern business perceptions and practice". Contract law can be contrasted with tort law (also referred to in some jurisdictions as
3500-485: A system of five-yearly inspections and temporary tax farmers. They did not want to take direct control of local administration in villages for several reasons, one being that the Company did not want to upset those who had traditionally enjoyed power and prestige in rural Bengal. The Company failed to consider the question of incentivisation . Many appointed tax farmers absconded with as much revenue as they could during
3625-455: A term is a condition is determined in part by the parties' intent. In a less technical sense, however, a condition is a generic term and a warranty is a promise. In specific circumstances these terms are used differently. For example, in English insurance law, violation of a "condition precedent" by an insured is a complete defence against the payment of claims. In general insurance law,
3750-486: A tort-based action (such as the tort of deceit ) if the misrepresentation is negligent or fraudulent. In U.S. law, the distinction between the two is somewhat unclear. Warranties are generally viewed as primarily contract-based legal action, while negligent or fraudulent misrepresentations are tort-based, but there is a confusing mix of case law in the United States. In modern English law, sellers often avoid using
3875-488: A warranty is a promise that must be complied with. In product transactions, warranties promise that the product will continue to function for a certain period of time. In the United Kingdom, the courts determine whether a term is a condition or warranty, regardless of how or whether the term was classified in the contract. Statute may also declare a term or nature of term to be a condition or warranty. For example,
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4000-430: A wider class of persons. Research in business and management has also paid attention to the influence of contracts on relationship development and performance. Private international law is rooted in the principle that every jurisdiction has its own distinct contract law shaped by differences in public policy, judicial tradition, and the practices of local businesses. Consequently, while all systems of contract law serve
4125-408: Is a "provision forming part of a contract". Each term gives rise to a contractual obligation, breach of which can give rise to litigation , although a contract may also state circumstances in which performance of an obligation may be excused. Not all terms are stated expressly, and terms carry different legal weight depending on how central they are to the objectives of the contract. Contracting
4250-436: Is a specific phase within procurement . It includes creating, negotiating, and managing contracts. Obligations created by contracts can generally be transferred, subject to requirements imposed by law. Laws regarding the modification of contracts or the assignment of rights under a contract are broadly similar across jurisdictions. In most jurisdictions, a contract may be modified by a subsequent contract or agreement between
4375-433: Is advertised in a newspaper or on a poster, the advertisement will not normally constitute an offer but will instead be an invitation to treat , an indication that one or both parties are prepared to negotiate a deal. An exception arises if the advertisement makes a unilateral promise, such as the offer of a reward, as in the case of Carlill v Carbolic Smoke Ball Co , decided in nineteenth-century England . The company,
4500-404: Is largely based on the writings of renaissance-era Dutch jurists and case law applying general principles of Roman law prior to the Netherlands' adoption of the Napoleonic Code. The UNIDROIT Principles of International Commercial Contracts , published in 2016, aim to provide a general harmonised framework for international contracts, independent of the divergences between national laws, as well as
4625-411: Is presumed to incorporate the terms of the invitation to treat. In contract law, consideration refers to something of value which is given in exchange for the fulfilment of a promise. In Dunlop v. Selfridge , Lord Dunedin described consideration "the price for which the promise of the other is bought". Consideration can take multiple forms and includes both benefits to the promisor and detriments to
4750-545: Is referred to as the rule in L'Estrange v Graucob or the "signature rule". This rule was approved by the High Court of Australia in Toll(FGCT) Pty Ltd v Alphapharm Pty Ltd . The rule typically binds a signatory to a contract regardless of whether they have actually read it, provided the document is contractual in nature. However, defences such as duress or unconscionability may enable the signer to avoid
4875-729: Is restricted on public policy grounds. Consequently, the validity and enforceability of a contract depends not only on whether a jurisdiction is a common, civil, or mixed law jurisdiction but also on the jurisdiction's particular policies regarding capacity. For instance, very small children may not be held to bargains they have made, on the assumption that they lack the maturity to understand what they are doing; errant employees or directors may be prevented from contracting for their company, because they have acted ultra vires (beyond their power). Another example might be people who are mentally incapacitated, either by disability or drunkenness. Specifics vary between jurisdictions, for example article 39 of
5000-701: The British and Foreign Bible Society on 14 May 1804, and held that office until the end of his life. He took an active part in the various controversies in the Society, and gave his decision in favour of the exclusion of the apocryphal books from all editions of the Bible issued by the society. He died at his house in Portman Square on 14 February 1834, aged 82, and was buried in Marylebone parish church, where
5125-549: The East India Company who served as Governor-General of Bengal from 1793 to 1798. In 1798 he was created Baron Teignmouth in the Peerage of Ireland . Shore was the first president of the British and Foreign Bible Society . A close friend of the orientalist Sir William Jones (1746–1794), Shore edited a memoir of Jones's life in 1804, containing many of Jones's letters. Born in St. James's Street, Piccadilly , on 5 October 1751, he
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5250-707: The Egyptian Civil Code , modelled after the Napoleonic Code but containing provisions designed to fit Arab and Islamic society. The Egyptian Civil Code was subsequently used as a model for the majority of Arab states. In the 20th century, the growth of export trade led to countries adopting international conventions, such as the Hague-Visby Rules and the UN Convention on Contracts for the International Sale of Goods , bringing
5375-620: The European Union being an economic community with a range of trade rules, there continues to be no overarching "EU Law of Contract". In 2021, Mainland China adopted the Civil Code of the People's Republic of China , which codifies its contract law in book three. While generally classified as a civil law jurisdiction, contract law in mainland China has been influenced by a number of sources, including traditional Chinese views toward
5500-654: The Law of Property Act 1925 ). Nonetheless, a valid contract may generally be made orally or even by conduct. An oral contract may also be called a parol contract or a verbal contract, with "verbal" meaning "spoken" rather than "in words", an established usage in British English with regards to contracts and agreements, and common although somewhat deprecated as "loose" in American English . An unwritten, unspoken contract, also known as "a contract implied by
5625-629: The Meiji Restoration , Japan adopted a series of legal codes modelled primarily on German law, adopting its commercial code in 1899. The Japanese adaptation of German civil law was spread to the Korean Peninsula and China as a result of Japanese occupation and influence, and continues to form the basis of the legal system in South Korea and the Republic of China. In 1949, Abd El-Razzak El-Sanhuri and Edouard Lambert drafted
5750-734: The Neolithic Revolution . A notable early modern development in contract law was the emergence of the hawala system in the Indian subcontinent and the Arab world , under which a series of contractual relationships formed the basis of an informal value transfer system spanning the Silk Road . In the Indian subcontinent, the hawala system gave rise to the hundi , a transferrable contract entitling its holder in due course to obtain money from its issuer or an agent thereof, giving rise to
5875-474: The Philippine Civil Code provides a comprehensive overview of the most typical circumstances resulting in lost or diminished juridical capacity: age, mental disability, the state of being a deaf-mute , penalty, absence, insolvency, and trusteeship . John Shore, 1st Baron Teignmouth John Shore, 1st Baron Teignmouth (5 October 1751 – 14 February 1834) was a British official of
6000-682: The Sale of Goods Act 1979 s15A provides that terms as to title, description, quality and sample are generally conditions . The United Kingdom has also developed the concept of an "intermediate term" (also called innominate terms), first established in Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962]. Traditionally, while warranties are contractual promises which are enforced through legal action, regardless of materiality, intent, or reliance, representations are traditionally precontractual statements that allow for
6125-502: The United Nations Convention on Contracts for the International Sale of Goods does not require consideration for a contract to be valid, thereby excluding the doctrine with regard to contracts covered by the convention even in common law jurisdictions where it would otherwise apply. The continued existence of the doctrine in common law jurisdictions is controversial. Scots lawyer Harvey McGregor 's " Contract Code ",
6250-553: The law of obligations concerned with contracts, is based on the principle that agreements must be honoured . Like other areas of private law , contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jurisdictions, civil law jurisdictions, or mixed-law jurisdictions that combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed-law jurisdictions solely require
6375-526: The 'Permanent Settlement' was adopted. The British thought that once the revenue demands of the state were permanently set, there would be a regular flow of tax income. Furthermore, landholders would invest in their agricultural land as the producer can keep surpluses in excess of the fixed tax. The British officials thought that such a process would lead to the emergence of yeomen class of farmers and rich landowners who would invest their capital to generate further surpluses. This new emergent class would be loyal to
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#17327658761256500-544: The British. The policy failed to identify individuals who were willing to contract to pay fixed revenue perpetually and to invest in the improvement of agriculture. After much discussion and disagreement between the officials, the Permanent Settlement was made with the existing rajas and taluqdars of Bengal who were now classified as zamindars. They had to pay fixed revenue in perpetuity. Thus, zamindars were not
6625-611: The Canadian province of Quebec are mixed law jurisdictions which primarily adhere to French legal tradition with regard to contract law and other principles of private law. Over the course of the nineteenth and twentieth century, the majority of jurisdictions in the Middle East and East Asia adopted civil law legal frameworks based on the Napoleonic, German, or Swiss model. The Napoleonic Code shapes contract law across much of
6750-511: The Irish House of Lords, nor was he elected a representative peer after the union. He was twice examined before the House of Commons on Indian affairs, on 18 June 1806 and on 30 March 1813. In consequence of the order of the House of Commons for Teignmouth's attendance on the first occasion, the House of Lords on 19 July 1806 passed a resolution maintaining the privilege of peerage as apart from
6875-548: The Middle East, while contract law in Japan, South Korea, and the Republic of China is rooted in the German pandectist tradition. In 1926, Turkey replaced its Ottoman-era mixture of Islamic and secular laws with a secular civil code modelled after that of Switzerland , with its contract and commercial law modelled after the Swiss Code of Obligations , which was in turn influenced by German and French legal traditions. Following
7000-502: The Permanent Settlement was both very sudden and dramatic, one that nobody had apparently foreseen. By ensuring that zamindars' lands were held in perpetuity and with a fixed tax burden, they became desirable commodities. In addition, the government tax demand was inflexible, and the British East India Company's collectors refused to make allowances for times of drought, flood or other natural disaster. The tax demand
7125-580: The Permanent Settlement were reproduced all over India, and indeed elsewhere in the Empire, including Kenya , the political structure was altered forever. The landlord class held much greater power than they had under the Mughals , who subjected them to oversight by a trained bureaucracy with the power to attenuate their tenure. The power of the landlord caste/class over smallholders was not diluted in India until
7250-407: The United States requires a written contract for tangible product sales in excess of $ 500, and for real estate contracts to be written. If the contract is not required by law to be written, an oral contract is generally valid and legally binding. The United Kingdom has since replaced the original Statute of Frauds, but written contracts are still required for various circumstances such as land (through
7375-508: The Zamindar class would not only be a revenue-generating instrument but also serve as intermediaries for the more political aspects of their rule, preserving local custom and protecting rural life from the possibly rapacious influences of its own representatives. However, it worked both ways, as zamindars became a naturally conservative interest group. Once British policy in the mid-19th century changed to one of reform and intervention in custom,
7500-454: The acts of the parties", which can be legally implied either from the facts or as required in law . Implied-in-fact contracts are real contracts under which parties receive the "benefit of the bargain". However, contracts implied in law are also known as quasi-contracts, and the remedy is quantum meruit , the fair market value of goods or services rendered. In commercial agreements it is presumed that parties intend to be legally bound unless
7625-489: The basis of public policy . For example, in the English case Balfour v. Balfour a husband agreed to give his wife £30 a month while he was away from home, but the court refused to enforce the agreement when the husband stopped paying. In contrast, in Merritt v Merritt the court enforced an agreement between an estranged couple because the circumstances suggested their agreement was intended to have legal consequences. If
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#17327658761257750-446: The boundary between tort and contract law somewhat uncertain. Contracts are widely used in commercial law , and for the most part form the legal foundation for transactions across the world. Common examples include contracts for the sale of services and goods, construction contracts , contracts of carriage , software licenses , employment contracts , insurance policies , sales or leases of land, among others. A contractual term
7875-499: The buyer explicitly expressed the importance of this requirement. The relative knowledge of the parties may also be a factor, as in English case of Bissett v Wilkinson , where the court did not find misrepresentation when a seller said that farmland being sold would carry 2000 sheep if worked by one team; the buyer was considered sufficiently knowledgeable to accept or reject the seller's opinion. According to Andrew Tettenborn et al , there are five differing circumstances under which
8000-409: The categorisation of contracts into bilateral and unilateral ones. For example, the High Court of Australia stated that the term unilateral contract is "unscientific and misleading". In certain circumstances, an implied contract may be created. A contract is implied in fact if the circumstances imply that parties have reached an agreement even though they have not done so expressly. For example, if
8125-408: The civil and fiscal jurisdiction of a large district; he also studied languages. In 1772 Shore went to Rajshahi as first assistant to the resident of the province. In the following year he acted temporarily as Persian translator and secretary to the board at Murshidabad. In June 1775 he was appointed a member of the revenue council at Calcutta. He continued to hold that post until the dissolution of
8250-466: The collection of the revenues, he devoted much of his time to the adjudication of exchequer cases. He acted as revenue commissioner in Dacca and Behar, and he drew up plans for judicial and financial reforms. Deploring the lavish profusion of the governor-general, Shore communicated his views of the financial situation to John Macpherson , who, instead of privately imparting them to Hastings, inserted them as
8375-596: The condition of the Bengali peasantry became increasingly pitiable, with famines becoming a regular occurrence as landlords (who risked immediate loss of their land if they failed to deliver the expected amount from taxation) sought to guarantee revenue by coercing the local agriculturalists to cultivate cash crops such as cotton, indigo, and jute, while long-term private investment by the zamindars in agricultural infrastructure failed to materialise. Earlier zamindars in Bengal, Bihar and Odisha had been functionaries who held
8500-573: The continuance of the British Dominion and having complete command over the mass of the people." The question of incentivisation now being understood to be central, the security of tenure of landlords was guaranteed. In short, the former landholders and revenue intermediaries were granted proprietorial rights (effective ownership) to the land they held. Smallholders were no longer permitted to sell their land, but they could not be expropriated by their new landlords. Incentivisation of zamindars
8625-527: The contract itself, countries have rules to determine the law governing the contract and the jurisdiction for disputes. For example, European Union Member States apply Article 4 of the Rome I Regulation to decide the law governing the contract, and the Brussels I Regulation to decide jurisdiction. Contracts have existed since antiquity, forming the basis of trade since the dawn of commerce and sedentism during
8750-469: The council at the close of 1780. Though he revised one of the bitter philippics launched by Philip Francis against Warren Hastings , and is said to have written one of the memorials against the supreme court and Sir Elijah Impey , he was appointed by the governor-general to a seat in the committee of revenue at Calcutta, which took the place of the provincial council. Shore gained the confidence of Hastings by attention to his duties. Besides superintending
8875-438: The crew were already contracted to sail the ship. The pre-existing duty rule also extends to general legal duties; for example, a promise to refrain from committing a tort or crime is not sufficient. Some jurisdictions have modified the English principle or adopted new ones. For example, in the Indian Contract Act, 1872 , past consideration constitutes valid consideration, and that consideration may be from any person even if not
9000-480: The demand of government is fixed, an opportunity is afforded to the landholder of increasing his profits, by the improvement of his lands". The British had in mind "improving landlords" in their own country, such as Coke of Norfolk . The Court of Directors also hoped to guarantee the company's income, which was constantly plagued by defaulting zamindars who fell into arrears, making it impossible for them to budget their spending accurately. The immediate consequence of
9125-582: The departure of Cornwallis. He succeeded to the government on 28 October 1793. The period of Shore's rule as governor-general was comparatively uneventful. His policy was attacked as temporising and timid. He acquiesced in the invasion by the Marathas of the dominions of Ali Khan Asaf Jah II , the Nizam of Hyderabad ; he permitted the growth of a French subsidiary force in the service of more than one native power; he thwarted Lord Hobart 's efforts for extending
9250-481: The early 19th century, Dutch colonies retained the precedent-based Roman-Dutch law . British colonies in Southern Africa adopted Roman-Dutch principles in areas of private law via reception statutes adopting South African law, retaining Roman-Dutch law for most matters of private law while applying English common law principles in most matters of public law . Saint Lucia , Mauritius , Seychelles , and
9375-431: The extent of their enforceability as part of a contract. English common law distinguishes between important conditions and warranties , with a breach of a condition by one party allowing the other to repudiate and be discharged while a warranty allows for remedies and damages but not complete discharge. In modern United States law the distinction is less clear but warranties may be enforced more strictly. Whether or not
9500-411: The first efforts towards land reform in the 1950s, still incomplete everywhere except West Bengal . In Pakistan , where land reform was never carried out, elections in rural areas still suffer from a tendency towards oligarchy, reflecting the concentration of influence in the hands of zamindar families. This is because once Pakistan became separated from India, and the two began to fight over Kashmir,
9625-508: The freedom of contract in order to prevent businesses from exploiting consumers. In 1993, Harvey McGregor , a British barrister and academic, produced a "Contract Code" under the auspices of the English and Scottish Law Commissions , which was a proposal to both unify and codify the contract laws of England and Scotland. This document was offered as a possible "Contract Code for Europe", but tensions between English and German jurists meant that this proposal has so far come to naught. In spite of
9750-534: The freedom of contract. For example, the Civil Rights Act of 1964 restricted private racial discrimination against African-Americans. The US Constitution contains a Contract Clause , but this has been interpreted as only restricting the retroactive impairment of contracts. In the late twentieth and early twenty-first century, consumer protection legislation, such as Singapore's Consumer Protection (Fair Trading) Act 2003, progressively imposed limits upon
9875-567: The full performance of an obligation. English courts have established that any intention to make the contract a "complete code", so as to exclude any option to resort to a common law or extra-contractual remedy, must be evidenced in "clear express words": otherwise a "presumption that each party to a contract is entitled to all remedies which arise by operation of law" will be honoured by the courts. Common law jurisdictions typically distinguish three different categories of contractual terms, conditions, warranties and intermediate terms, which vary in
10000-568: The general purpose of contract law is to enforce promises . Other approaches to contract theory are found in the writings of legal realists and critical legal studies theorists, which have propounded Marxist and feminist interpretations of contract. Attempts at understanding the overarching purpose and nature of contracting as a phenomenon have been made, notably relational contract theory . Additionally, certain academic conceptions of contracts focus on questions of transaction cost and ' efficient breach ' theory. Another important dimension of
10125-472: The goal of the government was revenue extraction to fund the military. As a result, the central leadership skewed the relationship between the elected and non-elected institutions of the state. Contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties . A contract typically involves consent to transfer of goods , services , money , or promise to transfer any of those at
10250-403: The guardian of a young girl took out a loan to educate her. After she was married, her husband promised to pay the debt but the loan was determined to be past consideration. In the early English case of Stilk v. Myrick [1809], a captain promised to divide the wages of two deserters among the remaining crew if they agreed to sail home short-handed; however, this promise was found unenforceable as
10375-482: The landowners but rather revenue collector agents of the state. Cornwallis believed that they would immediately accept it and so begin investing in improving their land. In 1790, the Court of Directors issued a ten-year (decennial) settlement to the zamindars , which was made permanent in 1793. By the Permanent Settlement Act of 1793, their right to keep armed forces was removed. They remained just
10500-482: The law of delicts), the other major area of the law of obligations. While tort law generally deals with private duties and obligations that exist by operation of law, and provide remedies for civil wrongs committed between individuals not in a pre-existing legal relationship , contract law provides for the creation and enforcement of duties and obligations through a prior agreement between parties. The emergence of quasi-contracts , quasi-torts , and quasi-delicts renders
10625-549: The majority of English-speaking countries, the rules are derived from English contract law which emerged as a result of precedents established by various courts in England over the centuries. Meanwhile, civil law jurisdictions generally derive their contract law from Roman law , although there are differences between German contract law , legal systems inspired by the Napoleonic Code or the Civil Code of Lower Canada (e.g. Québec and Saint Lucia ), and jurisdictions following Roman-Dutch law (e.g. Indonesia and Suriname ) or
10750-565: The obligation. Further, reasonable notice of a contract's terms must be given to the other party prior to their entry into the contract. Written contracts have typically been preferred in common law legal systems. In 1677 England passed the Statute of Frauds which influenced similar statute of frauds laws in the United States and other countries such as Australia. In general, the Uniform Commercial Code as adopted in
10875-405: The offer's terms, which is known as the " mirror image rule ". An offer is defined as a promise that is dependent on a certain act, promise, or forbearance given in exchange for the initial promise An acceptance is simply the assent of the other contracting party or parties to the terms stipulated in the contract. As an offer states the offeror's willingness to be bound to the terms proposed therein,
11000-450: The offeror. Consideration must be lawful for a contract to be binding. Applicable rules in determining if consideration is lawful exist both in case law and in the codes of some common law jurisdictions. The general principles of valid consideration in the common law tradition are that: The insufficiency of past consideration is related to the pre-existing duty rule . For example, in the early English case of Eastwood v. Kenyon [1840],
11125-554: The offeror. In a reward contract, for example, a person who has lost a dog could promise a reward if the dog is found, through publication or orally. The payment could be additionally conditioned on the dog being returned alive. Those who learn of the reward are not required to search for the dog, but if someone finds the dog and delivers it, the promisor is required to pay. On the other hand, advertisements which promise bargains are generally regarded not as offers for unilateral contracts but merely "invitations to treat". Some have criticised
11250-437: The other party to the contract. Contract theory is a large body of legal theory that addresses normative and conceptual questions in contract law. One of the most important questions asked in contract theory is why contracts are enforced. One prominent answer to this question focuses on the economic benefits of enforcing bargains. Another approach, associated with Charles Fried in his book Contract as Promise , maintains that
11375-491: The parties expressly state the opposite. For example, in Rose & Frank Co v JR Crompton & Bros Ltd , an agreement between two business parties was not enforced because an "honour clause" in the document stated "this is not a commercial or legal agreement, but is only a statement of the intention of the parties". In contrast, domestic and social agreements such as those between children and parents are typically unenforceable on
11500-493: The parties have explicitly agreed that breach of that term, no matter what the factual consequences, will entitle the innocent party to terminate the contract for breach; or (5) as a matter of general construction of the contract, the clause must be understood as intended to operate as a condition. In all systems of contract law, the capacity of a variety of natural or juristic persons to enter into contracts, enforce contractual obligations, or have contracts enforced against them
11625-525: The parties to modify the terms governing their obligations to each other. This is reflected in Article 3.1.2 of the Principles of International Commercial Contracts , which states that "a contract is concluded, modified or terminated by the mere agreement of the parties, without any further requirement". Assignments are typically subject to statutory restrictions, particularly with regard to the consent of
11750-463: The policy then being followed by Calcutta, which was attempting to increase taxation of zamindars . Between 1786 and 1790, the new Governor-General Lord Cornwallis and Sir John Shore (later Governor-General) entered a heated debate over whether or not to introduce a permanent settlement with the zamindars . Shore argued that the native zamindars would not trust the permanent settlement to be permanent and that it would take time before they realised it
11875-517: The principle underlying contemporary negotiable instruments . The hawala system also influenced the development of agency in common law and in civil laws . In Roman law, agents could not act on behalf of other individuals in the formation of binding contracts. On the other hand, Islamic law accepted agency as permissible in not only contract law but in the law of obligations generally, an approach that has since become mainstream in common law, mixed law, and most civil law jurisdictions. Analogously,
12000-568: The privilege of parliament. This resolution, however, was not communicated to the Commons; and on the second occasion the order of the Commons for Teignmouth's attendance was not questioned by the Lords. Shore became a prominent member of the Clapham sect : from 1802 to 1808 he lived at Clapham. He then moved to London, where he passed the remainder of his days. He was elected the first president of
12125-447: The promisee. The Indian Contract Act also codifies examples of when consideration is invalid, for example when it involves marriage or the provision of a public office. The primary criticism of the doctrine of consideration is that it is purely a formality that merely serves to complicate commerce and create legal uncertainty by opening up otherwise simple contracts to scrutiny as to whether the consideration purportedly tendered satisfies
12250-422: The promisee. Forbearance to act, for example, can constitute valid consideration, but only if a legal right is surrendered in the process. Common law jurisdictions require consideration for a simple contract to be binding, but allow contracts by deed to not require consideration. Similarly, under the Uniform Commercial Code , firm offers in most American jurisdictions are valid without consideration if signed by
12375-475: The proprietary rights of the zamindars was ratified by Cornwallis and formed the basis of the much discussed Permanent Settlement . In December 1789, Shore embarked for England, where he arrived in April 1790. He is said to have refused the offer of a baronetcy on the ground of "the incompatibility of poverty and titles". On 2 June 1790 he was examined as a witness in the trial of Warren Hastings with regard to
12500-470: The requirements of the law. While the purpose of the doctrine was ostensibly to protect parties seeking to void oppressive contracts, this is currently accomplished through the use of a sophisticated variety of defences available to the party seeking to void a contract. In practice, the doctrine of consideration has resulted in a phenomenon similar to that of Ḥiyal in Islamic contracts, whereby parties to
12625-544: The right to collect revenue on behalf of the Mughal emperor and his representative, the diwan , in Bengal. The diwan supervised the zamindars to ensure they were neither lax nor overly stringent. When the East India Company was awarded the diwani or overlordship of Bengal by the empire following the Battle of Buxar in 1764, it found itself short of trained administrators, especially those familiar with local custom and law. As
12750-778: The role of law, the PRC's socialist background, the Japanese/German-based law of the Republic of China on Taiwan , and the English-based common law used in Hong Kong. Consequently, contract law in the Chinese mainland functions as a de facto mixed system. The 2021 civil code provides for the regulation of nominate contracts in a manner similar to that of jurisdictions such as Japan, Germany, France, and Québec. The rules governing contracts vary between jurisdictions. In
12875-438: The sale of a home, the buyer promises to pay the seller $ 200,000 in exchange for the seller's promise to deliver title to the property. Bilateral contracts commonly take place in the daily flow of commercial transactions. Less common are unilateral contracts, in which one party makes a promise, but the other side does not promise anything. In these cases, those accepting the offer are not required to communicate their acceptance to
13000-432: The same overarching purpose of enabling the creation of legally enforceable obligations, they may contain significant differences. Accordingly, many contracts contain a choice of law clause and a forum selection clause to determine the jurisdiction whose system of contract law will govern the contract and the court or other forum in which disputes will be resolved, respectively. Failing express agreement on such matters in
13125-630: The south district of Madras . The system eventually spread all over northern India by a series of regulations dated 1 May 1793. These regulations remained in place until the Charter Act of 1833 . The other two systems prevalent in India were the Ryotwari System and the Mahalwari System . Many argue that the settlement and its outcome had several shortcomings when compared with its initial goals of increasing tax revenue, creating
13250-520: The sphere of British influence; and he looked on while Tipu Sahib was preparing for war. In these matters Shore faithfully obeyed his instructions. Though he showed weakness in dealing with the mutiny of the officers of the Bengal army, he boldly settled the question of the Oudh succession, when he substituted Saadat Ali Khan II for Wazir Ali Khan , albeit at the cost of the Massacre of Benares . As
13375-563: The tax collectors of the land. There were considerably weakened as they were now banned from holding any court, as it was brought under the supervision of a collector appointed by the company. British officials believed that investing in the land would improve the economy. People also killed some British officials. In 1819, the Governor-general of India, Francis Rawdon-Hastings , observed that "[the Permanent Settlement,] fashioned with great care and deliberation has....subjected almost
13500-471: The tax-farming excesses were countered by the introduction of the Settlement, the use of land was not part of the agreement. There was a tendency of Company officials and Indian landlords to force their tenants into plantation-style farming of cash crops like indigo and cotton rather than rice and wheat. That was a cause of many of the worst famines of the nineteenth century. Once the salient features of
13625-561: The term "represents" in order to avoid claims under the Misrepresentation Act 1967 , while in America the use of "warrants and represents" is relatively common. English courts may weigh parties' emphasis in determining whether a non-contractual statement is enforceable as part of the contract. In the English case of Bannerman v White , the court upheld a rejection by a buyer of hops which had been treated with sulphur since
13750-447: The terms of a contract are so uncertain or incomplete as to elude reasonable interpretation, the parties cannot have reached an agreement in the eyes of the law. An agreement to agree does not constitute a contract, and an inability to agree on key issues, which may include such things as price or safety, may cause an entire contract to fail. However, a court will attempt to give effect to commercial contracts where possible, by construing
13875-401: The theoretical debate in contract is its place within, and relationship to a wider law of obligations . Obligations have traditionally been divided into contracts, which are voluntarily undertaken and owed to a specific person or persons, and obligations in tort which are based on the wrongful infliction of harm to certain protected interests, primarily imposed by the law, and typically owed to
14000-630: The time period between inspections. The British Parliament took note of the disastrous consequences of the system, and in 1784, British Prime Minister William Pitt the Younger directed the Calcutta administration to alter it immediately. In 1786 Charles Cornwallis was sent out to India to reform the company's practices. In 1786, the East India Company Court of Directors first proposed a permanent settlement for Bengal, changing
14125-547: The transactions of the committee of revenue at Calcutta, and he testified to his friend's popularity among the Indians. Shore was appointed by the court of directors governor-general of India in succession to Cornwallis on 19 September 1792, and was created a baronet on 2 October following; Edmund Burke protested vainly. Shore embarked for India at the end of the month. On 10 March 1793 he arrived at Calcutta, where he remained without official employment or responsibility until
14250-552: The transfer of debt , which was not accepted under Roman law, became widely practiced in medieval European commerce, owing largely to trade with the Muslim world during the Middle Ages. Since the nineteenth century, two distinct traditions of contract law emerged. Jurisdictions that were previously British colonies generally adopted English common law . Other jurisdictions largely adopted the civil law tradition, either inheriting
14375-732: The various legal traditions closer together. In the early 20th century, the United States underwent the " Lochner era ", in which the Supreme Court of the United States struck down economic regulations on the basis of freedom of contract and the Due Process Clause . These decisions were eventually overturned, and the Supreme Court established a deference to legislative statutes and regulations that restrict freedom of contract. The need to prevent discrimination and unfair business practices has placed additional restrictions on
14500-682: The wealth necessary to purchase land. They could also manipulate the system to bring to sale land that they specifically wanted. Historian Bernard S. Cohn and others have argued that the Permanent Settlement led to a commercialisation of land that previously did not exist in Bengal and, as a consequence, it led to a change in the social background of the ruling class from "lineages and local chiefs" to "under civil servants and their descendants, and to merchants and bankers". The new landlords were different in their outlook; "often they were absentee landlords who managed their land through managers and who had little attachment to their land". The Company hoped that
14625-432: The whole of the lower classes throughout these provinces to most grievous oppression." In 1829, Lord Bentinck , however, noted that the scheme did succeed in one important respect, saying, "If, however, security was wanting against extensive popular tumult or revolution, I should say that the Permanent Settlement....has this great advantage at least, of having created a vast body of rich landed proprietors deeply interested in
14750-402: The zamindars were vocal in their opposition. The Permanent Settlement had the features that state demand was fixed at 89% of the rent and 11% was to be retained by the zamindar. The state demand could not be increased but payment should be made on the due date, before sunset, so it was also known as the 'Sunset Law'. Failure to pay led to the sale of land to the highest bidder. While the worst of
14875-399: Was first used in the English case of Smith v Hughes in 1871. Where an offer specifies a particular mode of acceptance, only acceptance communicated via that method will be valid. Contracts may be bilateral or unilateral . A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for
15000-481: Was frequently reprinted, and has been translated into Italian. Three of his contributions to the society are printed in 'Asiatick Researches' (ii. 307–22, 383–7, iv. 331– 350). He translated in three manuscript volumes the Persian version of an abridgment of the 'Jôg Bashurst,' but later destroyed them in consequence of the little encouragement which his translations of Persian versions of Hindu authors received. He wrote
15125-408: Was genuine. The main aim of the Permanent Settlement was to resolve the problem of agrarian crisis and distress that had resulted in lower agricultural output. The British officials thought that investment in agriculture, trade, and the resources of the revenue of the state could be increased by agriculture. To permanently fix the revenue and secure property rights, the system which came to be known as
15250-537: Was higher than that in England at the time. As a result, many zamindars immediately fell into arrears. The company's policy of auction of any zamindari lands deemed to be in arrears created a market for land that previously did not exist. Many of the new purchasers of this land were Indian officials within the East India Company's government. The bureaucrats were ideally placed to purchase lands which they knew to be underassessed and therefore profitable. In addition, their position as officials gave them opportunity to acquire
15375-405: Was intended to encourage improvements of the land, such as drainage, irrigation and the construction of roads and bridges; such infrastructure had been insufficient through much of Bengal. With a fixed land tax, zamindars could securely invest in increasing their income without any fear of having the increase taxed away by the company. Cornwallis made the motivation quite clear by declaring that "when
15500-474: Was sworn a member of the privy council. He occasionally transacted business at the board of control, or at the Cockpit, where as a privy councillor he sometimes decided Indian appeals with Sir William Grant and Sir John Nicholl . But he occupied the most of his time in religious and philanthropic matters, though he nominally remained a member of the board until February 1828. Teignmouth never took his seat in
15625-483: Was the elder son of Thomas Shore of Melton Place, near Romford , an East India Company employee, by his wife Dorothy, daughter of Captain Shepherd of the company's naval service. At the age of fourteen Shore was sent to Harrow School . In his seventeenth year Shore was moved to a commercial school at Hoxton for the purpose of learning bookkeeping, to take up an opportunity made for him by the merchant Frederick Pigou,
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