CURRENT SCINERIO OF FREEDOM OF CONTRACT IN INDIA

In India, the freedom of contract is not absolute. The Indian government may
regulate various types of contracts which are related to tenancy, consumer
protection, and employment to protect the interest of the parties which are
involved in it. Additionally, the court also enforces contract when a breach of
the contract is done by the parties then court also enforce a contract in a
manner that promotes fairness.

As above mentioned, The concept of freedom of contract in India refers to the

ability of parties to enter into contracts on mutually agreed terms with the free
consent of the parties. This principle is recognized in the Indian Contract Act,
1872, which provides that a contract is a legally binding agreement entered
into by two or more parties who have the capacity to contract and who freely
consent to the terms of the agreement.

Most important cases decided by an Indian court that have shaped the
development of the principle of freedom of contract:

1. Satyabrata Ghose v. Mugneeram Bangur and Co. (1954):

In this case, the Supreme Court of India recognized that freedom of contract is
not absolute and is subject to certain limitations, such as the requirement that
contracts should not be illegal, immoral, or opposed to public policy.

2. Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly

(1986):

In this case, the Supreme Court held that freedom of contract cannot be used
to justify unfair or oppressive terms that are one-sided and disadvantageous
to one party.

3. Tata Cellular v. Union of India (1994):

In this case, the Supreme Court recognized that freedom of contract includes
the freedom to negotiate terms and conditions of the contract, and that
contracts should be interpreted in a manner that gives effect to the intentions
of the parties.

4. Shashoua v. Sharma (2009):

In this case, the Delhi High Court held that contracts entered into by parties
should be based on mutual trust and confidence, and that the principle of
good faith should be applied to all contracts.

Summary of all the cases that, As agreed with all the points freedom of
contract is an important concept in Law of Contract. Freedom of Contract is
not an absolute right and is subject to certain requirement and limitations. In
India, these cases perfectly shaped the concept of the freedom of contract.
Which helped to clarify the boundaries and limitation of this important principle
and aslo protect the interest of the parties whichs are involves into the
contract.

CONCLUSION
In India, the Concept of freedom of contract is a fundamental aspect of the law
of contract, it is subject to limitation. It also protects the interests of weaker
parties of the contract. One of the important things is that party itself aware of
this limitation and also ensures that their contract has all legal requirements.