Needs and Importance of Contracts

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Needs and Importance of Contracts

At the moment, an individual is in the chains of contract to run his livelihood daily. A large number of people do not understand the meaning of contract, yet there is a contract and its execution in their lives knowingly or unknowingly, and explicitly or implicitly whether the state or the person is bound to make a contract. As it practically executes the promises made between people and business organizations. There is the presence of contracts in all sectors of society.

The principal motive of a contract is to bring peace and harmony to society by executing the promises made by individuals or business institutions. To execute the promises and agreements made orally or in written forms in the morally corrupted society that binds people to perform the promises which are the main motto of contract law. It tries to implement the promises pragmatically in social life. It has a great influence only in civil law. It does not go with criminal law. It helps to live a practical life in the society.

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Contract law links with politics, economics, business, and social fields. The nature and structure of the state is also contractual. A contract mainly analyzes the things to be done or not to be done as mentioned in the contract. The victim of the contract can seek legal remedies and get compensation as per the civil law’s provision if the other side violates the norms of the contract. This is the liability borne by contract law and has a high value.

The needs and importance are as below:

  1. Contract enlivens business, industrial, or occupational activities.
  2. A contract is the base of the business world. No company or industry can be run in its absence.
  3. To regulate and execute domestic and international trade, (contract is essential)
  4. Contract deals with bank, insurance, carriage, selling corporate agency, mortgage, guarantee, bailment, pledge, exchange paper, indemnity, and arbitration. All these business activities can’t be imagined without a contract.
  5. Contract practically executes the promises of the parties.
  6. The violator of the contract agreement needs to pay indemnity to the other party if he seeks legal remedy in the civil court.
  7. The development of the country is beyond imagination without economic growth and development there is a sharp need to develop trade and industry. For this contract is needed.
  8. By means of contract, there is the creation of economic and business activities as well as liabilities.
  9. As a contract has a larger scope, it covers even daily personal life. It can be classified into two: I) General contract, ii) Special contract
  10. Contract creates social and business relations. So it has importance since it involves these areas.
  11. A contract makes the contracting parties enable to stand on their promises.
  12. Contract is inevitable in daily life. It is hard to imagine any activities to run in life.

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12 Needs and Importance of Contracts are:

1. Contract enlivens business, industrial or occupational activities.
2. Contract is the base of business world. No company or industry can be run in its absence.
3. To regulate and execute domestic and international trade, (contract is essential)
4. Contract deals with bank, insurance, carriage, selling corporate agency, mortgage, guarantee, bailment, pledge, exchange paper, indemnity, and arbitration. All these business activities can’t be imagined without a contract.
5. Contract practically executes the promises of the parties.
6. The violator of contract agreement needs to pay indemnity to the other party if he seeks legal remedy in the civil court.
7. The development of the country is beyond imagination without economic growth and development for it there is the sharp need to develop trade and industry. For this contract is needed.
8. By means of contract, there is the creation of economic and business activities as well as liabilities.
9. As a contract has a larger scope, it covers even daily personal life. It can be classified into two:
I) General contract,
ii) Special contract
10. Contract creates social and business relations. So it has importance since it involves these areas.
11. A contract makes the contracting parties enable to stand on their promises.
12. Contract is inevitable in daily life. It is hard to imagine any activities to run in life.

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