Small Cyprus and huge India share a common colonial history (India – 1858 – 1947; Cyprus -1914 – 1960), and the foundation of Cypriot and Indian Legal System is the Common Law, since both of the countries were British Colonies. Hence, the law in relation to contract, the Contract Law, Cap 149, was heavily influenced by the Common Law and identical to the Contract Law in India, the Indian Contract Act 1872, which reflects the principles of English contract law applicable in 1960.

Under the section 10 of the Contract Law, Cap 10 the “contract” is defined as an agreement between two or more parties, which establishes specific obligations, consideration (benefits) and rights, and they are legally recognized and enforceable. This definition is identical to the Section-2(h) of the Indian Contract Act 1872 as well as subsequent principles and rules indicated in the Contract Law, Cap 149. For example, section 166 concerned about the reasonable notice of the Cap 149 was modeled on the sections 205 and 206 of the Indian Contract Act 1872, and it was acknowledged by the court in the case of Kazinos & Co v Letraset (Export) Ltd (1985), 2 JSC.

Therefore, the Contract Law in Cyprus and India is identical in major instances and the courts of Cyprus may seek for the further guidance in the Indian Contract Act 1872.