The Law of Agreement in Sri Lanka: An Overview
The law of agreement refers to the legal principles that govern the formation, interpretation, and enforcement of contracts between parties. In Sri Lanka, the law of agreement is primarily governed by the Contract Act of 1872, which was modeled after the Indian Contract Act of 1872.
Formation of a Contract
Under the Contract Act, a contract is formed when there is an offer and acceptance of that offer by the parties involved. The offer must be communicated to the offeree, and the acceptance must be unconditional and communicated to the offeror. Additionally, the terms of the contract must be clear and certain, and the parties must have the capacity to enter into the contract.
Interpretation of a Contract
Once a contract is formed, its terms must be interpreted to determine the intent of the parties. The courts in Sri Lanka will generally look to the language of the contract and the surrounding circumstances to determine the intent of the parties. In cases where the terms of the contract are ambiguous, the courts will look to the parties’ conduct and industry customs to interpret the contract.
Enforcement of a Contract
If one party breaches the terms of a contract, the other party may seek damages or specific performance of the contract. Damages refer to monetary compensation for the breach of contract, while specific performance refers to a court order requiring the breaching party to fulfill their obligations under the contract.
In Sri Lanka, contracts involving immovable property must be in writing and signed by the parties. Additionally, contracts involving the payment of a certain amount of money or goods of a certain value must be in writing and signed by the parties.
Conclusion
The law of agreement in Sri Lanka is an important part of the country’s legal system. Whether you’re entering into a business contract or a simple agreement with a friend, it’s important to understand the principles of contract law to ensure that your rights are protected. By following the rules governing the formation, interpretation, and enforcement of contracts, you can avoid disputes and protect your interests.