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Anil in Pune agrees to sell his scooter to Bhavna for Rs 40,000. Neither party has said anything about the law that governs the deal. Under India's legal framework, which of the following is the primary source of the rules that decide whether their agreement is an enforceable contract?

The Indian Contract Act, 1872, an Act passed by Parliament, is the primary source of rules on whether the agreement is an enforceable contract. It is codified statutory law covering contracts generally, whereas RBI circulars and Registrar of Companies notifications deal with other regulatory areas.

  1. AThe Indian Contract Act, 1872, a statute enacted by ParliamentCorrect
  2. BA circular issued by the Reserve Bank of India
  3. CA local custom followed in Pune markets, overriding the statute
  4. DA notification of the Registrar of Companies

Explanation

The general law of contracts in India is codified in the Indian Contract Act, 1872, which is an Act of Parliament and hence statutory law. RBI circulars regulate banking and monetary matters, not general contracts. The Registrar of Companies deals with company registration under company law. Custom cannot override a statute that covers the point.

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