Short title this act may be called the indian contract act 1872 this act may be called the indian contract act 1872 extent commencement it extends to the whole of india 1 except the state of jammu and kashmir and it shall come into force on the first day of september 1872. The indian contract act 1872 prescribes the law relating to contracts in india and is the key act regulating indian contract law the act is based on 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 under section 2 the indian contract act defines a contract as an agreement which is enforceable by law. Section 10 of the indian contract act 1872 provides that all agreements are contracts if they are made by the free consent of parties competent to contract for a lawful consideration and with a lawful object and are not hereby expressly declared to be void elements of valid contract. The indian contract act 1872 a 9 of 18721 preamble 1 short title extent commencement 2 saving