The provisions of Indian Contract Act override

Solution (By Examveda Team)

The Indian Contract Act, 1872 primarily governs contractual relationships and applies to all agreements enforceable by law. However, it does not override Hindu law or Mohammedan law, which deal with personal laws like marriage, succession, and inheritance.

Why the Indian Contract Act Overrides Usage or Customs of Trade?
- According to Section 1 of the Indian Contract Act, 1872, the Act prevails over any trade customs or usages unless they are expressly recognized by law.
- If a trade usage or custom contradicts the provisions of the Indian Contract Act, then the Act will override such customs.
- This ensures uniformity and certainty in business transactions, preventing unfair trade practices that may arise from outdated or region-specific customs.

Why the Indian Contract Act Does Not Override Hindu or Mohammedan Law?
- Hindu law and Mohammedan law are primarily concerned with personal matters such as marriage, inheritance, religious customs, and family laws.
- The Indian Contract Act only deals with commercial and contractual matters, which are separate from personal laws.
- There is no provision in the Act stating that it overrides Hindu or Mohammedan law, meaning these laws remain applicable in their respective domains.

Conclusion:
- The Indian Contract Act only overrides trade customs or usages that conflict with its provisions.
- It does not override Hindu or Mohammedan law since they govern different areas of law.
- Therefore, the correct answer is Option C – Usage or customs of trade.