PPT on Introduction and Evolution of Contracts

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    INTRODU

    CTION

    ANDEVOL

    UTION

    OF

    CONTRA

    CTS

    CAPTAIN. A. LAWRENCE.Executive Director,Indian Institute of Logistics

    President, Chennai Streamer AgentsAssociation (CHENSAA)

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    Meaning of the term Contacts

    A written or spoken agreement, especiallyone concerning employment, sales, ortenancy, that is intended to be enforceableby law.

    In other words, Contract means

    An agreement between two or moreparties, especially one that is written andenforceable by law.

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    A contract is an agreement entered intovoluntarily by two parties or more with

    the intention of creating a legalobligation, which may have elements inwriting, though contracts can be made

    orally.

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    Contract law varies greatly from onejurisdiction to another, including

    differences in common law compared tocivil law, the impact of received law,particularly from England in common law

    countries, and of law codified in regionallegislation.

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    http://en.wikipedia.org/wiki/Common_lawhttp://en.wikipedia.org/wiki/Civil_law_(legal_system)http://en.wikipedia.org/wiki/Civil_law_(legal_system)http://en.wikipedia.org/wiki/Common_law
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    THE IMPORTANCE OFCONTRACT LAW

    Law of contracts affects all aspects of dailylife.

    Commercial Law Contracts: having to dowith commerce.

    Common Law Contracts: derived from the

    judgments and decrees of courts.

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    http://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servanda
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    Origin and scope Of Contracts

    Contract law is based on the principleexpressed in the Latin phrase Pacta sunt

    servanda, which is usually translated"agreements must be kept" but moreliterally means "pacts must be kept.

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    http://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacthttp://en.wikipedia.org/wiki/Pacthttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servandahttp://en.wikipedia.org/wiki/Pacta_sunt_servanda
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    Contract law can be classified, as ishabitual in civil law systems, as part of ageneral law of obligations, along with tort,

    unjust enrichment, and restitution.

    As a means of economic ordering, contract

    relies on the notion of consensual exchangeand has been extensively discussed inbroader economic, sociological, andanthropological terms

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    http://en.wikipedia.org/wiki/Civil_law_(legal_system)http://en.wikipedia.org/wiki/Law_of_obligationshttp://en.wikipedia.org/wiki/Torthttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Restitutionhttp://en.wikipedia.org/wiki/Restitutionhttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Torthttp://en.wikipedia.org/wiki/Law_of_obligationshttp://en.wikipedia.org/wiki/Civil_law_(legal_system)
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    In American English, the term extendsbeyond the legal meaning to encompass abroader category ofagreements.

    However, contract is a form of economicordering common throughout the world,and different rules apply in jurisdictions

    applying civil law (derived from Roman lawprinciples), Islamic law, socialist legalsystems, and customary or local law.

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    http://en.wikipedia.org/wiki/Gentlemen's_agreementhttp://en.wikipedia.org/wiki/Roman_lawhttp://en.wikipedia.org/wiki/Roman_lawhttp://en.wikipedia.org/wiki/Gentlemen's_agreement
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    Evolution of Contracts

    Mesopotamia:

    Historical records tend to support thatthe Evolution of Contracts has its roots

    as far back as Mesopotamia in 2250 BCwith a simple type of contract law, which dealtwith mainly the public and the governing ruler.

    Some of the records are somewhat difficult toread and translate but anthropologist andhistorians have located some documents.

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    The laws or contracts tend to govern bothpublic and private lives.

    What is interesting is the fact that thedeeds or agreement seem to be drawn

    up by what we call a notary publicin the temple area and confirmed

    by the ruler or god.

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    Trade was prevalent thus leading toexamples, which set the foundations of

    our modern day Supply ChainManagement functions.

    One good example of the law is: When amerchant gives to his clerk grain, wool, oil,or some other merchandise for sale, theclerk shall give a strict account and turn inthe money to the merchant and the

    merchant shall give to the clerk a receipt forthe money paid over to him.

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    Hammurabi:

    Then we see a more advanced legal

    system and advanced contractual documentssometime during the rule of Hammurabi in1780 whereby the entire ancient legal system

    was revised.He created the first metropolis.

    His records are the first records that datethat show a ruler proclaiming an entireconcept of the law.

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    His code was carved on a black stonemonument for public view.

    Such items as an eye for an eye andthings that seemed to identify the culture

    and the feeling of the people of the timessuch as the law:

    If a man builds a house badly, and thehouse falls and kills the owner, the builderwill be slain.

    If the owner's son was killed, the buildersson is slain.

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    Moses:

    If we skip to the time of Moses we find yetanother example of a clearly statedcontractual agreement that of the Ten

    Commandments and of course the Bible ofour Lord.

    The laws of this time seem to be in linewith those of Hammurabi and tended to bethe basis of many religious covenants.

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    Law of England(Common Law)

    Skipping further into the 16th and 18thcentury the Law of England seem to havethe biggest impact on Contract Law,

    bringing the American Colony laws anddramatic change in different countriesLaw.

    Some important laws were Decree of the Emperor Henry IV concerning a

    Truce of God 1085 AD; Constitutions of Clarendon 1164 AD;

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    Frame of Governments of the Colony ofPennsylvania and Virginia;

    Fundamentals of the Constitution; History of the Britons; Laws of Richard I;

    Laws of William the Conqueror; Laws of Kings 753-510 BC; Magna Carter 1215; Mayflower Compact 1620;

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    The Ordinance of Louis the Pius; and AgrarianLaw 111 BC to mention a few which lead tothe American laws and to the modern dayversion of contracts Law.

    Although many variations have occurredover the years but one thing remains

    the same that a Contract no matter

    the content must be a bindingagreement, which is agreed to by bothparties.

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    Contracts in the 80tys and 90tys

    The experience in the 80tys was dynamicand uncertain.

    With the invention of the PC, and working

    with companies like IBM, yes they had thePC before the market was able to enjoyand reap the benefits. IBM had the first

    Internet so they utilized the benefits of theofferings within a closed Internet amongstselected sites.

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    Most find that 80tys to be the time wherethe establishment of good common sense

    contractual training began and ITinfluenced contacts.

    Contacts thus started evolving throughout

    the world.

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    People from different parts of the worldwere tied up to each other through theHelp of IT and thus contractualrelationship between parties from differentparts of the world started.

    In the 80tys it was the norm to the cut andpaste of clauses and terms the same asthe 70tys but they had a document saved

    prior to the cut and paste and thuseliminating unnecessary typing ofdocuments.

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    In 90tys with the advancement ofdatabase software like lotus contractswere a snap a customized document in a

    day. In the late 90tys and early 2000 there

    were even more advanced with EDI and

    everything streamlined and consolidatedinto an audit ready process.

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    Conclusion

    Contracts are promises that we hope thelaw will enforce. Another conclusion is thata contract is an agreement between two or

    more parties that establishes anenforceable legal relationship.

    Still another theory is that it is an

    agreement between two or more parties,which creates an obligation to do or not todo a particular thing.

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    All contracts are agreements, but not allagreements are contracts Agreementsoften deal with personal or social matters

    that cannot be enforced by law. If an agreement imposes a legal

    obligation, an enforceable contract results.

    However, if it imposes merely a social ormoral obligation, it is not a contract and sois not legally enforceable.

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    AnyD

    oubts.?

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    THANK YOU