The Life of a Contract: From Offer to Performance

📝 Abstract

This article explores the life cycle of a contract 🤝— from offer to performance — simplifying each stage for law students and new learners. Backed by key provisions of the Indian Contract Act, 1872 and landmark judicial decisions, it demonstrates how contracts govern legal relationships in the real world.

*Have you ever wondered how a contract is born, lives, and gets fulfilled?

👩Have you ever wondered how a contract comes into existence, what makes it legally binding, and how it finally gets fulfilled? Whether you’re a law student or a professional, understanding the contract life cycle is essential.

As a law student, understanding the journey of a contract is essential — not just for exams, but also for real-world legal practice. Here’s a simplified path of how a contract evolves — from a mere offer to full performance.

🗣️ “ಕಾನೂನು ಓದಿ, ಜೀವನ ಕಲಿಯಿರಿ” – “Study Law, Live Life.” – A line that reflects both tradition and transformation.📚

“The contract is said to be discharged by performance” → Consider:

✅ The contract is fulfilled and discharged upon complete performance

✅ Performance marks the final discharge of contractual obligations

Instead of “fulfilled through performance” and “variation”, which you commented about, try: ✅ …discharged upon full and proper performance of obligations.According to Section 2(h), of the Act, 1872, contract is an agreement which is enforceable by law.

👉 Steps as follows

1. Offer

Everything begins with a proposal — a clear expression of willingness to enter into a contract, as defined under Section 2(a) of the Indian Contract Act, 1872. This must be communicated and certain in its terms.
🧠 Case: Carlill v. Carbolic Smoke Ball Co., [1893] 1 QB 256 (CA)-

2. Acceptance

 ➡️Unilateral contracts are binding when performance occurs, even without direct communication of acceptance.Section 2(b)  When the offer is accepted without changes, a contract begins to form. Any conditional acceptance is a counter-offer, not a valid acceptance under Section 7.

🧠 📌Example: Postal rule of acceptance, as upheld in common law.

 Felthouse v. Bindley, (1862) 11 CBNS 869; 142 ER 1037-

➡️Silence does not amount to acceptance in contract law.

3. Consideration

A promise is not enforceable unless there is something in return — called consideration, defined in Section 2(d). It can be an act, forbearance, or promise.

🧠 Case: Currie v. Misa, (1875) LR 10 Ex 153 –

➡️ Consideration must be something of  value in the eyes of law.

🔎 Key Point: Consideration can be an act, abstinence, or promise.

4. Enforceability

Even with offer, acceptance, and consideration, a contract must fulfill enforceability under Sections 10 and 11 — involving free consent, lawful object, and capacity of parties.

5. Performance

This is the final and most crucial stage. Once both parties fulfill their obligations, the contract is said to be discharged by performance under Section 37. If not, it may result in breach and remedies under Section 73.

🔁 “The contract is said to be discharged by performance” = The contract is fulfilled and legally concluded once all agreed terms are carried out.

🤔 Why this matters?

Understanding contract life cycle helps law students, interns, and young professionals grasp real-world transactions — from lease agreements to employment contracts and more.
“Pacta sunt servanda” – Agreements must be kept.

🎓 My Take as a Law Student

While studying this in class, I realized that contracts are not just theory — they shape business deals, protect rights, and guide our legal systems. Through cases, moot courts, and discussions, I’ve learned how essential each stage is.

“The contract is said to be discharged by performance” → maybe change to “fulfilled through performance” for variation.

✨ If you’re a fellow law student or curious learner, save this flow. It’s a helpful visual for exams and internships.

--By Spoorthi B, First-Year BA LLB (Hons.) Student University Law College and department in studies in law  Bangalore University

💡 References – Legal + Academic.

 Indian Contract Act, 1872

Statutes