In legal terms, a contract is a legally binding agreement that establishes, defines and controls the rights and duties of the parties that enter into the contract. In the spirit of English Common Law, the Act was enacted. One of the most common elements of a contract is a commitment to transfer one of these things at some future time. Citizens of India are protected by the Indian Contract Act, which includes their contractual rights. It grants the contractual parties rights, responsibilities, and obligations to assist them effectively complete business, from routine transactions to documenting the enterprises of multi-national corporations. An Act of Parliament was passed on April 25, 1872, and went into effect on September 1, 1872, under the Indian Contract Act, 1872.Contracts are referred to in Section 2(h) as "agreements enforced by law." This definition relies heavily on the concepts of "agreement" and "enforceable by law," both of which are important terms. When something is legally enforceable, it indicates that a person who has been wronged may seek redress in court.