Section 1 of ICA : Section 1: Short Title

Explanation using Example

Imagine you are starting a business in Mumbai, India, and you wish to form a contract with a supplier from Kolkata to purchase raw materials. The Indian Contract Act, 1872 would govern the terms and conditions of your agreement, as it applies to the whole of India, including both Mumbai and Kolkata. The contract you form would need to adhere to the provisions of this Act, which has been in force since September 1, 1872.

However, if there is a specific trade custom in Kolkata's market that does not contradict the Act, such as a customary method of delivery or payment, this custom can still be considered part of your contract due to the 'Saving' clause. Similarly, if there are other laws or regulations that apply to your business that are not repealed by the Contract Act, those laws will still be in effect.