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How to read an Act ?How to read an Act ?

Remember that Law (Act) is binding in natureRemember that Law (Act) is binding in natureon those to whom it applies individuals, generalon those to whom it applies individuals, generalsociety, corporates, firms, or any groups in thesociety, corporates, firms, or any groups in thesociety.society.

To regulate different subject matters, a separateTo regulate different subject matters, a separatelaw may be enacted, such as taxation,law may be enacted, such as taxation,

companies, environment, labour and industrycompanies, environment, labour and industrymatters, minimum wages, crimes, procedures ofmatters, minimum wages, crimes, procedures ofcourts both criminal and civil courts, manner ofcourts both criminal and civil courts, manner ofascertaining facts by evaluating the evidence etc.ascertaining facts by evaluating the evidence etc.

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Every Act is a piece of legislation made into lawEvery Act is a piece of legislation made into lawafter passing the process of enactment. Initially, aafter passing the process of enactment. Initially, aBill is introduced and after debates in theBill is introduced and after debates in thelegislatures (Parliament or State Legislativelegislatures (Parliament or State LegislativeAssemblies), the bill is sent to President or GovernorAssemblies), the bill is sent to President or Governor

for giving his assent and thereafter the Bill comes anfor giving his assent and thereafter the Bill comes anAct and after publishing in the Official Gazette, theAct and after publishing in the Official Gazette, theAct comes into operation either from the date ofAct comes into operation either from the date ofpublication or on a date as may be specified in thepublication or on a date as may be specified in theAct or at a later date when the Central GovernmentAct or at a later date when the Central Governmentor State Government is empowered to declare.or State Government is empowered to declare.

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Arrangement of ActsArrangement of Acts

Each Act is identified with a Title such asEach Act is identified with a Title such asThe Indian Contract Act, 1872, TheThe Indian Contract Act, 1872, TheCompanies Act, 1956 etc. The year atCompanies Act, 1956 etc. The year atthe end of the name of the Act signifiesthe end of the name of the Act signifiesthe year in which it is enacted as law.the year in which it is enacted as law.

Below the Title of Act, a preamble will beBelow the Title of Act, a preamble will bethere which gives the purpose or object forthere which gives the purpose or object forwhich that Act is enacted.which that Act is enacted.

The entire text of the Act is divided intoThe entire text of the Act is divided intovarious Sections and some Acts may alsovarious Sections and some Acts may alsohave Schedules with cross reference to ahave Schedules with cross reference to aparticular Section of the Act.particular Section of the Act.

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Section 2: Interpretation or Definitions (of certain terms andSection 2: Interpretation or Definitions (of certain terms andwords used in the text of the Act are interpreted or definedwords used in the text of the Act are interpreted or defined

and that definition should be relevant for interpretation ofand that definition should be relevant for interpretation ofany matter dealt in the Act).any matter dealt in the Act).

Subsequent Sections sometimes create certain authorities toSubsequent Sections sometimes create certain authorities toenforce the provisions of the subject matter of that Actenforce the provisions of the subject matter of that Act(Income Tax Officers, Company Law Board, Enforcement(Income Tax Officers, Company Law Board, EnforcementDirectorate, etc.)Directorate, etc.)

Appellate Authorities are created within the Act to provide aAppellate Authorities are created within the Act to provide achance to appeal against the actions or orders of thechance to appeal against the actions or orders of theEnforcement Authorities of the Act.Enforcement Authorities of the Act.

When no Enforcement Authorities or Appellate AuthoritiesWhen no Enforcement Authorities or Appellate Authoritiesare stated in the Act, then normal Civil Courts of the countryare stated in the Act, then normal Civil Courts of the countrydeal with such cases. (As in the case of Contract Act, Sale ofdeal with such cases. (As in the case of Contract Act, Sale ofGoods Act, Partnership Act etc.)Goods Act, Partnership Act etc.)

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Arrangement of the IndianArrangement of the Indian

Contract Act, 1872Contract Act, 1872

Preamble of the Act:Preamble of the Act: WHEREAS it is expedientWHEREAS it is expedientto define and amend certain parts of the lawto define and amend certain parts of the law

relating to contracts; It is hereby enacted asrelating to contracts; It is hereby enacted as

follows:follows:

It contains 238 Sections divided into XIt contains 238 Sections divided into Xchapters. (Chapters VII and XI repealed withchapters. (Chapters VII and XI repealed with

enactment of Sale of Goods Act, 1930 andenactment of Sale of Goods Act, 1930 and

Indian Partnership Act, 1932).Indian Partnership Act, 1932).

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Section Chapter Subject matter

1-2 Prelim. Short title, interpretation clause

3-9 I Of the Communication, Acceptance andRevocation of Proposals

10-30 II Of Contracts, Voidable Contracts and VoidAgreements

31-36 III Contingent Contracts

37-67 IV Performance of Contracts

68-72 V Of certain relations resembling those created byContract (Quasi Contracts)

73-75 VI Of the consequences of Breach of Contract

76-123 VII Repealed by the Sale of Goods Act, 1930124-147 VIII Of Indemnity and Guarantee

148-181 IX Of Bailment, Pledges etc.

182-238 X Agency

239-266 XI Of Partnership (repealed by the Indian Partnership

Act, 1932)