Law: Contract Act (IX of 1872)

Section: 2(b) (c) (h), 9 , 25(3)

  Contract Act (IX of 1872)--- ----Ss. 2(b) (c) (h), 9 & 25(3)---Proposal when becomes promise---Offer or proposal, in itself was not a "promise", but would become a "promise" only when it was accepted---" Promise" in itself could be equivalent of an agreement whereas agreement enforceable by law, was a contract---Rule laid down in S. 9 of the Contract Act, 1872 which signifies that a proposal or acceptance of any promise need not be in words, would remain applicable to acceptance of proposals covered by S. 25(3) of the Act---Such acceptance could be otherwise than in words and need not be in writing at all. David Sutherland Clark v. Rose Grimshaw AIR 1923 Lah. 481; S.' Venkatappayya v. Y. Venkatappaya AIR 1946 Mad. 72; Reasatullah v. Tripura Modern Bank Limited PLD 1968 Dacca 260; Hussain Corporation Limited v. Habib Bank Limited 1986 MLD 344 and Habib Bank Limited v. Shamim Qureshi PLD 1988 Kar. 481 ref. Contract Act (IX of 1872)--- ----S. 25(3)---Promise to pay---Nature and extent---Promise to pay, falling within terms of S. 25(3), Contract Act, 1872 could be absolute or conditional-- If promise was absolute, there would be no question of promise refusing to accept same---Necessity for acceptance would arise only when proposal or offer to pay a time-barred debt was conditional and requisite acceptance could be expressed or implied---In case of refusal to accept, the conditional offer or proposal could not be deemed to mature into a promise equivalent to an agreement and would not revive a time-barred debt or sustain an action therefor. Contract Act (IX of 1872)--- ----S. 25---Limitation Act (IX of 1908), S. 19---Promise and acknowledgement---Distinction---Word "promise" in S. 25 of Contract Act, 1872, is to be distinguished from the word "acknowledgment" occurring in S. 19 of the Limitation Act, 1908---Concept of "promise" involves a conscious undertaking to pay and law insists upon a writing in that behalf to be duly signed so as to make the intention to pay adequately manifest---If an undertaking to pay was involved, promisor had every right to ensure for himself the mode of payment…