Building Contracts
The Indian Contract Act, 1872 defines the term “Contract”, under its section 2 (h), as “An agreement enforceable by law”.
What is a contract?
The Indian Contract Act, 1872 defines the term “Contract”, under its section 2 (h), as “An agreement enforceable by law”. When one person makes a proposal to another to do something, in return for a consideration, it is an offer. When the other person accepts that offer, they enter into a Contract. Such a Contract can be legally enforced. For a Contract to be valid, it must follow the principle of quid per quo. When a Contractor agrees to build something for the Owner, in return, he must receive a consideration i.e. the contract Sum, to be paid by the Owner. The consideration paid and the service rendered have to be equitable.
After the Tendering process is completed, the next stage is execution of the Contract, between the Owner and the selected Contractor. Let us see how it is done.
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