Contract LLB Notes

8/11/2019 Contract LLB Notes

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CONTRACT IAND SPECIFIC RELIEF ACT

SEC- 1 TO 75:- Of Indian contract act profits for general principle of contract.

Whenever there is any contract his part admissible is automatically this act is the branch ofsubstantive law which create right parliamentary law.There are 2 procedure of contract.

2 Parts of contract

A) Formative B) Consequential1. Proposal 1. Performance2. Acceptance 2. Breach of performs

3. Consideration4. Competent party5. Free constant6. Lawful object and

Consideration

# Contains- Prohibited agreement Concept of contingent contract Concept of quasi contract Discharge of contract

SPECIFIC RELAIF ACT

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A) Formative 1. Proposal - As per English law it called as offer and in India it called proposal

# Definition- When 1 person signified to another his willingness to so some thing or to

absent from thing with a view so obtain such act or abstinence than he is said to make a proposal.

Essential performance 1. There must be intention to create legal relationship2. There must be clear communication

#Case of kalai hider Allahabad high courtFact- the plaintiff and defendant were family friend plaintiff invited the defendant for adiner along with the family member defendant accepted the invitation for the dinneraccording to all preparation made by plaintiff however defendant failed to attend the

party.Plaintiff field suit for recovering of compensation on the point of

breach of contract court held that he is not mentionable because there no imitation tocreate legal relationship.

2. CAMMUNICATION - proposal must be communication created there must be clearcommunication of the proposal by the person who made the proposal to the personwhom the proposal may be made.

2) ACCEPTANSE sec:2 (b)When the person to whom the proposal is made signified his

assent there to is sais to have accepted the proposal. When proposal is accepted here isbecomes promise the relationship between becomes promise and promise relationship.

Essential elements of valid acceptance - 1 . There must be intention to create legalrelationship.

# CASE OF Balfour v/s BalfourFact Mr. and Mrs. Belfour living in England, Mr.Balfour was in service of the company

his job was primarily in England however it was transfer to shrilanka he was not allow to takefamily with him. He promise his wife that when he goes to Shrilanka he will send certainamount periodically to her however letter say he field to send such promise amount to wifeinstituted suit against husband for recovery of such precise amount. Finally court held thatinstituted there is no intoned to create legal relationship. Hence suit is not mountable.

2) it must be communicated -

#CASE OF lalman v/s gauri data


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Fact - defendant Gauri Datta had employee named at lalman one day nephew of gauridata ran away. There are various servants by the master to find. Including lalman. Meanwhile gauri data announced reward of his field as lalman was not awere about this rewardhe found the boy and delivered to parents afterwards he comes to know about the reward

there for he claim the suit against the suit gauri satta issued to pay there she failed suitlalman is not entitles to recover amount of reward because there was no communicationof the proposal and expectance.

Types of proposal -1. General proposal2. Specific proposal

If there is general offer or proposal ten acceptance may be any person may be any

person this issue. has been announced in the #CASE OFCarlil v/s carbolic smoke ball

Fact- Defendant Company manufacturing the medicine as to cold in the form of smokeball. They said in advertisement that him who uses our smoke ball and irrespecton ofthat she gets affected by cold then he will be prayed with 100 pounds. In furnacesMrs.carlil and old lady started from could therefore compensation company refund topay. There for she instituted the suit against company. Court held that for the generalafter there is no need to communication acceptance performance is equal toacceptance there for company directed to pay the reward amount.

Counter proposal acceptance shall be absulate and it shall be unconditional acceptanceotherwise it amount to be a counter proposal. The counter proposal revock the generalproposal.

# CASE of Hyde v\s wrenchFact defendant was the owner of the land he offer to sale his land to plainfigg at this pries

of 1000 pound plaintiff said he is ready to pay 9950 pound defendant was not agreed for sale.Now plaintiff shown his wellness to 1000/- pound. But that is also refused by the defendant.according to the plaintiff instituted suit against the defendant not to sled his land at 10000/- rscourt held that there is no void contract because there is no agreement between the parties.There is counter offer and counter offer revoke the original proposal accordingly sit of theplaintiff was dismissed.

3) CONSIDRATION - Means consideration is one o the must essential elements formationof contract it is the right to paid for contract it may be lawful lot otherwise. The concept

of consideration dependant on Latin magazine ex nudo pacto means out of new factno cause of action arises in other were a contract without consideration became void.


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#Definition sec-2(b) when as the desire of the promise or any other person has done orabsent from during or promises to so or to absent from at doing something such act orabstains promise is called as consideration for the promise.

Essential Elements 1. It must move at the desire to promissar2. It may move from promises or ay other person3. It must be real and not invalid illusory4. It did not be addecular5. It may be past, present, future6. It must be not be illegal, immoral, a port to public policy

A Contract without consideration is valid : sec : 25

As a journal rule a contract without consideration is be void however sec.25 of theIndian contract act parties for certain expectation to this journal rules.

1. Love and affection sec: 25(I) an agreement between 2 relationship out of love andaffection is valid ever without consideration.

For ex- A is a parent promises his sun D to pay rs.1000/- in writing the promise isenforceable. In short the promise is must in writing must be registered under the lawenforces.

2. Compensation for violently services sec: - a person promises for tell for pastservice is legally binding.

For ex a promise to pay rs.1000/- to the person who had handed over the missingbag is enforcement

3. Time barred debt a debt by limitation is declared bad suit can be instituted forrecovery within 3 years time beyond 3 years it its not actionable however a promisemade by person on the behalf of the debtor to pay time barred debt then validactionable.

Privety of contract as journal rule only party to a contract alone can 2 and it issued suesof sued on that contract. Stranger or out snider to contract cant suit sue of sued in thistlethe doctrine of privity of contract. According to English law a stranger to a contract suithowever in India lender exception circumstances a stranger can suit.


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1. Beneficiary of trust trust is created for the Beneficiary of called the owner of trust calledstellar and the trust are the party to the contract and he tensional is a stranger to acontract the revisited od the terms even they his is a stranger to the contract.

2. Marriage settlement- a stranger to contract can suit in respect of marriages settlement

# IN CASE OF Rose v/s Joseph Fact the defendant is consist entered in to an agreements with the plaintiff father he

married plaintiff who did not married plaintiff suit was held actionable through she isstranger to contract.

3. Acknowledgement- the promise of by the defendant or acknowledgment or estoppelscreates the privet of contract him self and the stranger the stranger can suit.

4. Assignment of contract the beneficiary enter the contract are assign to the 3 rd party theassign to the 3 rd party canto

5. Through and agent the agent entered through the contract on the half of principle theprincipal can enforce the contract.

Capacity to contract - (competent parties)Sec-10 of the act privies a contract to be valid the partly must be competent to contractCapacity of contract sec-11 any person is competent to contract provided by

1. He/she ------- major2. He/she ------- sound mind3. He/she ------ must not have been disqualified by law

Minor, purpose of unsound mind and person disqualified by law are not competent tocontract.

1. Minor according to sec.3 of the Indian contract act 1875 has not competed the age of 18years .the minority external to 21 years he for guardian is appointed under guardianwords act contract per minor as follows ------ >

i) Void-ab-initio - it means invited from the very beginning this rule was let downprivacy council in the case of# CASE OF moharbibi v/s dharmadas ghose

Fact in this case a minor mortgaged his house for.20000/- to money lender and receivedan advance the contract and did not return the advance in an action court held that thecontract is not enforceable an the general that an agreement with minor that agreementwith minor is void ab- initio


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2. A minor can be promise or beneficiary but not promissory she or he can enjoy the benefitbut cant be held liable.

3. A minor did not return restituted the beneficiary received under void or voidableagreements.

4. A minor can issued for special performances

Expectations - journals minor is not liable to meant any liability haw ever she is label fornecessary supply to him as his defendant residents ,food, cloth, education and frugalexpenses of sister of minor.

# In the case of kedarnath v/s ajundhiya Fact it was held that money given to minor for marriage expenses was removable.

3. Person of unsound mind sec 12 profits to a person for the purpose of making acontract if at the time whom and make is capable of under standing it and of forminga rational judgment at to be effect upon the interest.

# Following are the person of unsound

1. Lunatics lunatics is adperson how is mentally deranged due to some mental strengthare other personal experience he is a person who is usually of sound mind butoccasionally of un sound mind may not made the contract when he is in unsound stage ofmind.

2. Idiots a idiots is a person who has completely loss his mental power he cant make acontract of validity.

3. Intoxicated perso n a drunken person Intoxicateble person is incapable or forming arational judgment. His position is similar to back of the lunatics.

4) persons of disqualified the person re disqualified by law1. Alien enemy means a citizens of enemy country he exist between the periods of

war gong on.2. Insolvent- means banking persons when any persons decided to be insolvent then

he shall not entered in to contract3. Convicts if any person convicted under any law enforce then he is may disqualified

to enter in to contract.

Free consent- Sec-13 : concept of free consent when 2 or more person agrees upon the something in

same sense its called as consent. Consent means meeting of minds or mutuality of mind. Sec-14 : free consent consent is free if it is not caused by 5 thing

1.

Coercion2. Undue influence


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3. Fraud4. Miss presentation5. Mistake

1. Coercion its means and include 2 definition . 1st Definition comity or threatening to commit any act forbidden by the Indian penalcode.

2nd definition unlawful detaining or treating to detain any property

3rd definition to the prosodies of any persons so as to cost such person to enter in theability.

#Case of ranganyakkanmma v/s settiFact r was married her husband was rich having property act his disposal sale they hasno issue of child. Unfortunately her husband was died. Accordingly to all relatives of herhusband are gathered to that last arrangement of husband of r instead her to take theirrelatives in adoptions she refused to the court .

Relatives prevented her from having the last right and he had no choose oak the boyfrom relatives in adoption. Later n she contended the agreement is not enforceablebecause the consent is unfree consent according to the court held that adoption was notvalid because anent was obtained by forced.

2. Undue influence 16 sec - when 1 person is in a position to dominate heal of anther andusage that position to gain or the gate unfair advantage over another is said to execute.Under influence the person who eliminate consent is unferee than such person has towhen why or how his consent was or free his consent was not free his consent was burdenof always lies on the shakers of the person who amendment.

# in case of allcard v/s skinnerFact- a young rich girl who recently acquired majority having no parents she had her friendaction at none in neat n church all authority they came to know about her they influenceher mind who donate all her property to the church accordingly she donated all herproperty to the church . Her presets is loss as property after couple of year she challengethe validity of the donation of the property to the church she said that her consent wasunfree accordingly court dismiss a case. The suit was barred court held that there wasundue influence but she came in the court after laps of lamination period.

3. Fraud sec : 17 : fraud means and include any of the following act by party to theagreement or this convict or the agent against of other partys to the agreement.


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a) Suggestion as to which is not theory by the person who dos not believe it to be true.b) Concealment of material actc) Any promise made with out intension made.d) any act threatening to

e) any act declared to disaudianse by only law

Therefore fraud can be committed by suggest your policy and super very Suggestion fraud means false suggestion or false statement made. Spread very means

intentional casement there for fraud can by committed by doing scalene is also amount tofraud same time.

# Case of Derry vs. peekFact by an act British trams a steam according to the company was incorporated which ah

accent of running tramp on steam power. According company issued prospectus to public atlarge. For inviting the investment they made statement in prospectus that company was allowedto run tramp on steam power. Infect no permission was granted by govt. only application waspending ultimately that application came to be rejected one of the investor instituted the suitthat company. For fraud court held that there is no fraud was committed. No doubt there was afalse statement by there was no intension receive the public shit against company is toodismissed.

4. Misrepresentation sec: 18 there is a false statement made however there is nointension to dismiss such representation may be commit method.A) Positive assertion means a person he makes statement and he is not aware as

falusarityB) Breach of duty there is no intension to issue but there is reach duty.C) Causing innocent mistake by other partys such a person he induced other person to

believe and think to be true and to act on such a belief then it aliens to onpresentation

5. Mistake sec: 21, 22, and 23 when there is mistake as to question of fact thenagreement because void. If 1 st 4 elements are present that is coercion, fraud, undueinfluences, misrepresentation then contact became voidable. The word mistake is thecombination of the 2 different words miss-take means taking something by mistakenly ithad divided into 2 category they are follows I) Mistake factII) Mistake law

I) Mistake fact it depends on Latin principal innovation practice executing means

ignored of fact is good excuse ignorant of law is no excuse it there is consent


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detained by mistake then termer is no agreement because there is no free onsetthere for such an agreement becomes void.

Lawful consent & lawful consideration sec : 23,24,25

Sec- 25 objects or consideration is said to be lawful undid.

1. Forbidden by law2. Fraudulent3. Nature that implies to person or property4. It would defect the person of any law5. It is against rule of majority or afoul of public policy. How consideration becomes

divided in the

# Case of vijli devi vs. nansa nadar :Fact - vijli devi was a married women she had friendship with nansa nadar . nansa nadar inducedto her to take divorc from his husband. Vijli devi express there inability to rise money then nansanadar give him loan for taking divorc. Shortly vijli devi take diverse and won the case. But shedenied to married with nansa nadar. Nansa nadar intuited a suit against the vijli devil. Court heldthat there was no lawful loses and consideration there for no agreement enforceable by law.Accordingly suit was dismissed by the court.

Sec- 25 profits exceptions to the journal rule ex nude facto journal rule means agreementwithout consideration became void however under exceptional cause agreement withoutconsideration becomes void.

1) If it is made out of love and affection2) If there are past violent service provided3) If there is promise to pay time barred debt then in such cases even agreement without

consideration becomes void.

Quasi contract sec 68-72 : The name of certain relations resembling with bothcrated by contract quasi contract means half way contact formative part was absent noconsideration in contract there must be formative part was absent and no need to giveconsideration. And performance of contract was held. This contract was enforceable bylaw. There are 5 illustration of the quasi contract.

1. Nasserites suppliers to a tent to contact of he was independent. There also such personis liable for contract.

2. Ra embarrassment re embarrassment of a person in respect of payment made byperson who is not liable to pay she makes such payment so as to profits his interest sec 69


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3. Non gradation: where there is benefit is taken from non gradation act sec -70 then suchperson is liable.

4. Finder of goods in respect of finder of goods sec- 71. Though there is formative partperson is liable there is quasi contract.

5. Moneys money applies or goods delivered under mistake for sec-72. Than in thesubstantive of formative there is a quasi contract relationship.

Void agreements void agreements means are though agreements which are legally nonexisted agreements law says no contract and such agreements there so no legalrelationship created.

1. Agreements without consideration - agreements without consideration were totally void.Ex ex nude pacto non oritu acto.

2. Whenever the object or the purpose of the agreements became void.

3. Happening of something or in future events. Which not happen such agreements arebecame void.

4. Non happening or something if contract was depending on non happening and thanhappening on certainty events the agreements become void.

5. Happening of thing becomes impossible than agreements became void. If such thingwhich are agree on the agreements happening of such thing agreement.

6. Wa ger agreements wagering agreement are always void it means agreements betweenthe parties to pay money dependant on certainty amount uncertain event gain to oneperson have except the loss or gain.

7. If agreement is impossible than such agreements becomes void and impossible by act.

Contingent contract sec : 31-36Sec 31: in case of contract1. This is contingent or happening of a non happening of such than that said to be

contingent contract.2. When there is contracting or performance in independent on happening or non

happening or some thing there is a element of enforce ability of there is said as toperformance of reciprocal promise if the contingent offered than only reciprocalpromises are enforceable by law.

Prohibitory agreements - sec : 25-28When ever prays in the agreements there are exchange of promise and such agreementsare enforceable at law how ever certain agreements are prohibited though agreementsprohabtual nature in respect of liberty, freedom, or personal right then such agreementsare not enforceable .

1. Agreements prohibiting a person to carried on any business trade ot profession in such a

case such agreements are not enforceable at lay.


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Expectation 1. in respect of sale of goods there shall be reasonable there shall bereasonable restriction enforce goodwill mean business reputation the cash berequensable impart. In respect of other goodwill of business.

2. Agreements in return of marriage sec: 26: right to married is to be personal right. Bedefense of mortality of society marriage is said to be basis of society agreements retrain ofwill validly of public policy or local they are void in nature.

3. Agreement in the same of legal preceding sec: 20 relents to right of the person tightthey are necessary incident of human personality. If such tight are violet then they suchstationary right profits to go to course of law. If any agreements in retrain of legalprocedure then they are void nature.

Performance

Sec : 37 to 41 meaning of the term to performance of contract means to executeforming or to honor the promises exchange contract is always for the state ofperformance means to give effect performance is to be donned by partys to the contractunless it is specifically pro otherwise especially when personal services benefited or whomthere is specially personal skill the performance shall be back to same partys it would caseinvolve the performance can be done by any one on his behalf is all desertion the terms ofcontract.

Offer of performances offer of the performance processes express readiness andwillingness to performance the promise offer of the performance when excepted byothers the refusal of the offer to performance then there is rejection of performance

Time and place of the performance performance is to be done on at exact time and asplace if no time and place aggregated than it should be al reasonable place of business nadshall be during reasonable business hour there for performance is methods discharge ofthe contract.

# Discharge of contract sec: 42-75It is process weather contractual relationship comes to end is

relate to existing shed between of a contract by various method contract comes to an end asfollows.

2 METHODS1. Successful method - that is called as method of performance2. Unsuccessful method - includes 5 methods

1. Method of innovations2. Nature of remission3. Breach of contract4. Anticipatory breech of contract

5. Doctrine of frustrations


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1. Method of novations it means renew of contract. Than old contract was automaticallydischarged.A) There is previous contract b/w the partysB) Old contract is substituted by new contract

C) New contract is to be performance and stand contract discharge.

2. Doctrine of frustration the term frosted the term frosted ditto unsuccessful or not givingeffect. frustration of contract means contract cant be perform because of certaintycontinually the concept of frustrations is an out come of impossibility of performance ofthe contract bw the party .

Illustration A and B entered in a contract where by A and B to pays this horse to forcertainty pries it is found at the time of contract horse was dead in such caseperformance will not possible because contract stand the frosted.

3. Breach of contract and anticipatory breach of contract.Parties to contract state of refuses or avoid performance of contract then that is called adbreach of contract such a breach is of 2 kinds 1.breach of contract and anticipatory ofcontract. When at the time of performance is will be avoided then it is called as breach ofcontract .or it before the time of performance it is a breach performance it is a breach ofcontract. That is called of contract that is called as anticipatory breach of contact.

Remedys for rightful partys 1. Compensation compensation for the violation of contractual types there can be 2

performance of compensation in term of money can be claim2. Damages for the violation of legal right damages can be claim. Damages are the

mantiorbilitly for the legal form.3. To residing the contract it means to cancels the contract party to contract has a right

to refused the contract in case Brach.4. Specific performance the very thing party which is against between under this

remedy is avoidable under the specific relief.

# Specific relief act - 1963

There is performance in specific or the very thing is to be claimed. An agreed inpromises. The basis of this act founding law of equity in England there is no any compensation interms of money but partys to perform promises as agreed.

Remedys under the specific performance the term injection came from inject the wordinject means to stop. From doing again and again so as to avoid future violation

prohibitory order can be injections re of 2 types.


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1) Injunction

1. Prohibitory 2. MandatoryA) Perpetual A) injection mandatory

B) Temporary B) mandatory injectionI) interneII) ad-interne

1. Prohibitory injection - means not to do some thing. they are again of 2 kindsA) Perpetual injection means forever stops to do something. They are having halation

in future.B) Temporary injection - they are during tendency of 2 of produce ring while perpetual

injection always granted is to be finally decided. Temporary injection has 2 types.

I) interne - ii) ad-interne

2. Mandatory - there can be order it required to do same thing such mandatory are 2kindsa) Injection mandatory - is that during the tendency of proceeding.b) Mandatory injection - it is after deposal of preceding or suit.

3. Declaration suit or nitrous where is no money or property involve but what is involve isdeclaration of legal right can dew to by court then that is called as declaration relies.

4. Rectification suit can be instituted in the court of law for correction of bills anddocument.

5. Specific performance the very thing is recued to perform especially when there is nosubstitute provided the specific performance can be performed.A) When ever there is any contract curtaining to immovable property money is not

adequate relief that there shall he specific performance can be claim.B) In respect of movable property as a journal rule there shall be no specific performance

because there can be substantive for the performance how ever there is a exceptionprovided it is the rave comity of business or it has got special value to the than onlyspecific performance can be granted . The end.

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