Sir Fredric Pllock`s definition, endorsed by Lord Dunedin in Dunlop v Selfridge Ltd (1915) AC 847, is as follows: the courts cannot make a contract for the parties. If the parties do not have an explicit or tacit agreement on the essential terms of a contract, there is no contract. Courts are only empowered to enforce contracts for the parties, not to write them down. A contract to be enforceable must be valid. The role of the Tribunal is to enforce agreements only if they exist and not to create them by imposing conditions that the Tribunal deems appropriate. In Relectmove (1995), Selectmove owed tax arrears to the tax authorities. The IR was able to put Selectmove into liquidation because it could not assume its responsibility. There was a meeting in which Selectmove offered to pay all taxes as soon as they expired and that it would pay the delay from the following February with a rate of $1,000 per month. The collector informed Selectmove that this proposal would need the agreement of his supervisor and that it would prove to them if it was not acceptable. Selectmove later, the IR began liquidation, with Selectmove opposing and relying on the agreement reached at the July meeting. The Indian Contract Act, 1872 imposes the Contracts Act in India and is the most important law governing contract law in India.
The law is based on the principles of English common law. It applies to all states of India. It determines the circumstances in which the commitments of the parties are legally binding. In accordance with section 2(h), the Indian Contract Act defines a contract as a legally enforceable agreement. An agreement must be based on a legitimate counterpart on both sides. The essential conditions for a valid consideration must be as follows: – A countervailable contract is a legally enforceable agreement, but it may be treated as if it had never been binding on a party who, at the time of its performance, suffered from a disability or who was a victim of fraud. The contract is not invalid unless the party chooses to treat it as such by opposing its application. A countervailable contract may be ratified either explicitly or tacitly by the party who has the right to avoid it. Express ratification takes place when the party that has become legitimate declares that it accepts the terms and obligations of the treaty.