A contract is an agreement that creates and defines obligations between the parties that are involved in the agreement. Contract should be valid. In a valid contract law all the parties are legally bound to perform the contract. Thus a contract can be formed by either of the parties. If the one of these parties refused to perform according to the contract the other parties do have the authority to enforce it by the court.
Contract law can be imposed by the people for different purposes. Such as contract of a marriage engagement, contract of guarantee, contract of family settlement, contract of partnership, contract of sale of land, contract to purchase a share and contract of insurance etc.
It is very different from the commercial law. In case of contract law for the sale of land the seller is bound to disclose all the materials and the defects in the property which are within his knowledge. These are the defects of which the buyer is not aware of and want to be. Without any ordinary diligence the buyer cannot discover that.
In the contract of the purchase of shares, both the promoters and the directors, who issue the prospectus of a company to invite the public to buy the shares of their company, possess information which is made available to the general public? They must disclose all the facts regarding to the company. In the case of partnership contract it is the partner who provides all the information about commercial law.
A condition is a stipulation essential to the main purpose of the contract. A warranty is a stipulation not essential to the main purpose of the contract. It forms the basis of a contract and goes direct to the root of the contract. It does not form the basis of a contract and does not go direct to the root of the contract law.
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