The history of the Indian Contract Act guides to knowledge the very source of the commercial processes and in this regard, the importance of contracting to conduct one's business in our daily life
1. Vedic/Medival Period2. Mohamedan Period3. hindu Law4. British Regime
1. Vedic or Medival PeriodDuring the whole Vedic and Medieval periods, the history of humans in India, there was no general code covering commercial transactions of money. Principles were derived from various references - this is like - the sources of Hindu law, namely the Vedas, the Dhramshatras, Smritis, and the Shrutis give a vigorous classification of the law similar to the contracts in those ancient times.
2. Mohamedan PeriodDuring the Mahomedan period in India, all matters relating to the contract were governed under the Mohammedan Law of Contract. The word contract in Arabic is Aqd meaning conjunction. It indicates the conjunction of the proposal (ijab) and the acceptance which is Kabul.
3. Hindu LawThough Roman notions of contract law have not been directly included under the Indian law of contracts. However, the framers of the Indian Contract Act, the English, were aware of the developments in the field of law of contracts in Rome. Thus, Roman Contract notions have helped in the development of English law, thus affecting the Indian Contract Act.
4. British RegimeBritishers came to India around 1600 and they started governing India through the medium of charters and different regulations. By the Regulating Act of 1773, the Supreme Court of Judicature was founded in Calcutta replacing the Mayor’s court and it served as the highest court of British India from 1774 to 1862 till the time the High Court of Calcutta was established under the Indian High Courts Act.
By analyzing the development of the contract through different time periods ranging from Roman law to Muslim Law to Hindu law and then to legal sanctions in British Regime, it can be concluded that though the technicality and the modes and means of punishment may vary, even the applicability of the law may vary