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INDIAN CONTRACT ACT,1872INDIAN CONTRACT ACT,1872

General Principles(Section 1-75)

Specific Contracts (Sections 124-238)

Elements of contract, performance of contract, breach of contract, remedies for breach of contract.

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SALE OF GOODS ACT, 1930SALE OF GOODS ACT, 1930

Section 76-123, Repealed from Contract Act, Section 76-123, Repealed from Contract Act, now Sale of Goods Act, 1930.now Sale of Goods Act, 1930.

INDIAN PARTNERSHIP ACT, INDIAN PARTNERSHIP ACT, 19321932

• Section 239-266, Repealed from Contract Act, now Indian Partnership Act, 1932.

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DEFINITIONSDEFINITIONS

A contract is an agreement creating and defining A contract is an agreement creating and defining obligations between the parties--- obligations between the parties--- SALMONDSALMOND

Every agreement and promise enforceable at law is a Every agreement and promise enforceable at law is a contract---- contract---- Sir FREDICK POLLOCKSir FREDICK POLLOCK

A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others----ANSON

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CONTRACT IS A CONCURRENT CONTRACT IS A CONCURRENT SUBJECTSUBJECT

Covered in Entry of 7 of list III (Seventh Covered in Entry of 7 of list III (Seventh Schedule to Indian Constitution)Schedule to Indian Constitution)

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Compensation/DamagesCompensation/Damages

Can be obtained through Civil-CourtCan be obtained through Civil-Court

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Section 1Section 1

An An Usage or Custom or TradeUsage or Custom or Trade or any incident or any incident of contract is not affected as long as it is of contract is not affected as long as it is inconsistent with provisions of the ACT.inconsistent with provisions of the ACT.

The Act extends to the whole of India except J The Act extends to the whole of India except J & K.& K.

Came into effect on 01-09-1872.Came into effect on 01-09-1872.

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“OFFER" OR “PROPOSAL” {Sect-2(a)}

Is the starting point in the process of making Is the starting point in the process of making an agreement.an agreement.

When one person who desires to create a legal When one person who desires to create a legal obligation, communicates to another his obligation, communicates to another his willingness to do or not to do a thing, with willingness to do or not to do a thing, with a a view to obtaining the consent of that other view to obtaining the consent of that other person towards such an act or abstinenceperson towards such an act or abstinence, the , the person is said to be making a person is said to be making a Proposal or Proposal or Offer.Offer.

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Example of offerExample of offer

““A” offers to sell her book to “B”. (Positive A” offers to sell her book to “B”. (Positive Act)Act)

““A” offers not to file a suit against “B”. If A” offers not to file a suit against “B”. If latter pays “A” the amount of RS. 10,000/- latter pays “A” the amount of RS. 10,000/- outstanding. (Negative Act)outstanding. (Negative Act)

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Guidelines for a Valid OfferGuidelines for a Valid Offer

An offer may be “Express” or “Implied.”An offer may be “Express” or “Implied.” An offer must reflect to give rise to legal An offer must reflect to give rise to legal

consequences and be capable of creating legal consequences and be capable of creating legal relations.relations.

The term of the offer must be certain.The term of the offer must be certain. An offer may be “Specific” or “General”.An offer may be “Specific” or “General”. An offer must be communicated to the offeree.An offer must be communicated to the offeree. An offer can be made subject to any terms and An offer can be made subject to any terms and

condition. condition.

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Communication of ProposalCommunication of Proposal

Communication of an acceptance of proposal Communication of an acceptance of proposal is complete when it comes to the knowledge of is complete when it comes to the knowledge of the person to whom it is made.the person to whom it is made.

““A” proposes, by letter, to sell a house to “B” A” proposes, by letter, to sell a house to “B” at a certain price.—the communication of at a certain price.—the communication of proposal is complete when “B” receives the proposal is complete when “B” receives the letter.letter.

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Lapse of an offerLapse of an offer An offer lapses after stipulated or reasonable time. {Section An offer lapses after stipulated or reasonable time. {Section

6(2)}6(2)} An offer lapses by not being accepted in the mode prescribed, An offer lapses by not being accepted in the mode prescribed,

or if no mode is prescribed, in some usual and reasonable or if no mode is prescribed, in some usual and reasonable manner.manner.

An offer lapses by rejection.An offer lapses by rejection.(a) may be express(a) may be express(b) may be Implied- by making counter offer(b) may be Implied- by making counter offer

-by giving Conditional -by giving Conditional acceptance. acceptance.

An offer lapses by the death or insanity of the offeror. An offer lapses by the death or insanity of the offeror. An offer lapses by revocation. {Section 6(1)} An offer lapses by revocation. {Section 6(1)}

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“ACCEPTANCE” An acceptance is the act of expression by the An acceptance is the act of expression by the

offeree of offeree of his assenthis assent to the terms of the offer. to the terms of the offer. It signifies the offeree's willingness to be It signifies the offeree's willingness to be bound by the terms of the proposal bound by the terms of the proposal communicated to him.communicated to him.

To be valid an acceptance must To be valid an acceptance must correspond correspond exactly with the termsexactly with the terms of the offer, of the offer,

It must be It must be unconditional and absoluteunconditional and absolute and and It must be It must be communicated communicated to the offeror. to the offeror.

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Guidelines for a Valid AcceptanceGuidelines for a Valid Acceptance

Must be given only by the person to whom the offer Must be given only by the person to whom the offer is made.is made.

Acceptance must be absolute and unqualified.Acceptance must be absolute and unqualified. Acceptance must be expressed in some usual and Acceptance must be expressed in some usual and

reasonable manner, unless the proposal prescribes the reasonable manner, unless the proposal prescribes the manner.manner.

Must be communicated by the acceptor.Must be communicated by the acceptor. Must be given within a reasonable time and before Must be given within a reasonable time and before

the offer lapses or revoked.the offer lapses or revoked.

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Communication of Offer and Communication of Offer and AcceptanceAcceptance

Communication of Offer-Communication of Offer-

-When it comes to the -When it comes to the knowledge of the person to knowledge of the person to whom it is made. whom it is made.

Communication of Acceptance- Communication of Acceptance-

-When the person to whom -When the person to whom the proposal is made signifies his the proposal is made signifies his

assent.assent.

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Two Aspects Two Aspects

As against the Proposer-As against the Proposer-

-When it is put in a -When it is put in a course of transmission to himcourse of transmission to him

As against the acceptor- As against the acceptor-

-When it comes to the -When it comes to the knowledge of the proposer knowledge of the proposer

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Communication of a RevocationCommunication of a Revocation

As against the person who makes it-As against the person who makes it- when it is when it is put into a course of transmission to the person put into a course of transmission to the person to whom it is made.to whom it is made.

As against the person to whom it is madeAs against the person to whom it is made- - when it comes to his knowledge when it comes to his knowledge

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Time limit during which offer and Time limit during which offer and acceptance can be revokedacceptance can be revoked

ProposalProposal- - May be revoked at any time before May be revoked at any time before the communication of its acceptance is the communication of its acceptance is complete as against the proposer.complete as against the proposer.

AcceptanceAcceptance- May revoked at any time before - May revoked at any time before the communication of the acceptance is the communication of the acceptance is complete as against the acceptor. complete as against the acceptor.

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AGREEMENT (Sect 2-9)

Proposal (Sec 2-6) Acceptance (Sec 2-9)

(1) Consideration (Sec 2-25) (2) Capacity to Contract (Sec 23-24)

(3) Legality of object (Sec 11-12)

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MEANING OF ‘AGREEMENT’{2(h)}

‘‘A promise or a set of promises'A promise or a set of promises' forming forming consideration for each other. consideration for each other.

A promise arises when a proposal is accepted.A promise arises when a proposal is accepted. By implication, an agreement is an accepted By implication, an agreement is an accepted

proposal. proposal.

In other words, an agreement consists of an In other words, an agreement consists of an ‘Offer' and its ‘Acceptance'. ‘Offer' and its ‘Acceptance'.

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PROMISOR AND PROMISEEPROMISOR AND PROMISEE

Person making the proposal—”Person making the proposal—”PromisorPromisor”” The person accepting the proposal The person accepting the proposal

–”–”PromiseePromisee”. {Section 2(c)}”. {Section 2(c)}

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AN “AGREEMENT" IS A CONTRACT IF

‘‘It is made by the free consent of parties It is made by the free consent of parties competent to contract, for a lawful competent to contract, for a lawful consideration and with a lawful object, and is consideration and with a lawful object, and is not expressly declared to be void'. not expressly declared to be void'.

The contract must be definite and its purpose The contract must be definite and its purpose should be to create a legal relationship. should be to create a legal relationship.

The parties to a contract must have the legal The parties to a contract must have the legal capacity to make it.capacity to make it.

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CONSIDERATION {Sec 2(d)}CONSIDERATION {Sec 2(d)}

““When When at the desire of the promisorat the desire of the promisor, the , the Promisee or any other person has done or Promisee or any other person has done or abstained from doing, or does or abstains from abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, or promises to do or to abstain from doing, something, such act or abstinence or doing, something, such act or abstinence or promise.”promise.”

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ExplanationExplanation

Must be done at the Must be done at the desire of the Promisordesire of the Promisor.. Must be done by the Must be done by the Promisee or any other Promisee or any other

personperson.. It may be already executed or is in the process It may be already executed or is in the process

of being done or may be still executory. of being done or may be still executory. It must be It must be something to which the attaches a something to which the attaches a

valuevalue..

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ExampleExample

““A” promises to type the manuscript of “B’s” A” promises to type the manuscript of “B’s” book, and in return “B” promises to teach A’s book, and in return “B” promises to teach A’s son for a month. son for a month.

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Guidelines of Valid ConsiderationGuidelines of Valid Consideration

Must move at desire of the promisor.Must move at desire of the promisor. May move from the Promisee or any other May move from the Promisee or any other

person (Included third person also).person (Included third person also). Doctrine of “Doctrine of “Constructive ConsiderationConstructive Consideration” ”

•Even a stranger to the consideration can

Even a stranger to the consideration can

sue on a contract---provided he is a party to

sue on a contract---provided he is a party to

the contract.

the contract.

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Privity of ContractPrivity of Contract

A A stranger to a contract cannot suestranger to a contract cannot sue, only a , only a person who is a party to a contract can sue on person who is a party to a contract can sue on it.it.

““A” mortgages his property to “B” in A” mortgages his property to “B” in consideration of B’s promise to “A” to pay A’s consideration of B’s promise to “A” to pay A’s debt to “C”, “C” cannot file a suit against “B” debt to “C”, “C” cannot file a suit against “B” to enforce his promise, “C” being no party to to enforce his promise, “C” being no party to the contract between “A” and “B”.the contract between “A” and “B”.

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ExceptionsExceptions

Where an Where an express or implied trustexpress or implied trust is created. is created. Family settlement.Family settlement. When the defendant constitutes himself, as the When the defendant constitutes himself, as the

agent of the third party.agent of the third party. In case of agency.In case of agency. In case of assignment of rights under a In case of assignment of rights under a

contract.contract.

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Guidelines Guidelines

Consideration may be Past, present or future.Consideration may be Past, present or future. Must be “Must be “something of value”something of value”..

• It must be of some value in the eye of law. i.e. It must be of some value in the eye of law. i.e. must be must be realreal

(1)(1)Physically possiblePhysically possible(2)(2)Not IllegalNot Illegal(3)(3)Not uncertainNot uncertain(4)(4)Not IllusoryNot Illusory

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Examples of Past, Present and Examples of Past, Present and FutureFuture

““A” teaches the son of “B” at B’s request in the A” teaches the son of “B” at B’s request in the month of January, and in Feb “B” promises to pay month of January, and in Feb “B” promises to pay “A” a sum of Rs. 200 for his services.“A” a sum of Rs. 200 for his services.

““A” sells a book to “B” and “B” pays its price A” sells a book to “B” and “B” pays its price immediately.immediately.

““X” promises to sell and deliver 10 bags of wheat to X” promises to sell and deliver 10 bags of wheat to “Y” for Rs. 10,000/- after a week, upon Y’s promise “Y” for Rs. 10,000/- after a week, upon Y’s promise to pay the agreed price at the time of delivery. to pay the agreed price at the time of delivery.

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Exception to the rule “No Exception to the rule “No Consideration, No Contract”Consideration, No Contract”

Agreement made on account of natural love Agreement made on account of natural love and affection. {Section 25(1)}and affection. {Section 25(1)}

Agreement to compensate for past voluntary Agreement to compensate for past voluntary service. {Section 25(2)}service. {Section 25(2)}

Agreement to pay a time-barred debt. {Section Agreement to pay a time-barred debt. {Section 25 (3)}25 (3)}

Completed gift.Completed gift. Contract of agency. (Section 185)Contract of agency. (Section 185) Contribution to charity.Contribution to charity.

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Essential for Love and AffectionEssential for Love and Affection

Expressed in writingExpressed in writing Registered under the law for the time being in Registered under the law for the time being in

force for registration of documentsforce for registration of documents Is made on account of natural love and Is made on account of natural love and

affection.affection. Between parties standing in a near relation to Between parties standing in a near relation to

each other.each other.

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ExamplesExamples

““A” for natural love and affection, promises to A” for natural love and affection, promises to give his son “B” Rs. 10,000/- .”A” puts his give his son “B” Rs. 10,000/- .”A” puts his promise in writing and register it.promise in writing and register it.

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Essentials for past Voluntary Essentials for past Voluntary servicesservices

A promise made without consideration is also valid, A promise made without consideration is also valid, if it is a promise to compensate, wholly or in part, a if it is a promise to compensate, wholly or in part, a person who has already willingly done something for person who has already willingly done something for the promisor, or done something which the promisor the promisor, or done something which the promisor was legally bind to do.was legally bind to do.

Must be rendered willinglyMust be rendered willingly The promisor must be in existence at the service was The promisor must be in existence at the service was

rendered.rendered. The service rendered must be legal. The service rendered must be legal.

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ExampleExample

““A” finds B’s purse and gives it to him. “B” A” finds B’s purse and gives it to him. “B” promises to give “A” Rs. 100. this is a contractpromises to give “A” Rs. 100. this is a contract

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Capacity of PartiesCapacity of Parties

Every person is competent to contract + Every person is competent to contract + who is of the age of majority + who is of the age of majority + According to the law to which he is subject According to the law to which he is subject + who is of sound + who is of sound mind + is not disqualified from mind + is not disqualified from contracting by any law to which he is subject.contracting by any law to which he is subject.

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MinorMinor

Indian Majority Act, 1875- who is under 18 Indian Majority Act, 1875- who is under 18 years of age is a minor.years of age is a minor.

Section 11- According to the law Section 11- According to the law to which he is subject.to which he is subject.

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CriteriaCriteria

In the case of contracts relating to ordinary In the case of contracts relating to ordinary mercantile transactionsmercantile transactions, the age of majority is , the age of majority is to be determined by the law of the place where to be determined by the law of the place where the contract is made. the contract is made.

In case of contracts relating to land, the age of In case of contracts relating to land, the age of majority is to be determined by the law of the majority is to be determined by the law of the place where the land is situated. place where the land is situated.

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ExampleExample

Where a person aged 18 years, domiciled in Where a person aged 18 years, domiciled in India, endorsed certain negotiable instrument India, endorsed certain negotiable instrument in Ceylon, by the laws of which he was a in Ceylon, by the laws of which he was a minor, he was held not to be liable as an minor, he was held not to be liable as an endorser.endorser.

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Sum upSum up An agreement by a minor is absolutely void and inoperative as An agreement by a minor is absolutely void and inoperative as

against him.against him. Beneficial agreements are valid contracts.Beneficial agreements are valid contracts. No ratification on attaining the age of minority.No ratification on attaining the age of minority. Minor’s liability for necessaries. Minor’s liability for necessaries. Specific performance.Specific performance. Minor partnerMinor partner Minor agentMinor agent Minor and insolvencyMinor and insolvency Position of minor’s parentsPosition of minor’s parents Minor shareholderMinor shareholder

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CaseCase Mohiri Bibee v. Dharmodas Ghose (1903) 30 Cal. Mohiri Bibee v. Dharmodas Ghose (1903) 30 Cal.

539.539. A minor has no capacity to contract and minor’s A minor has no capacity to contract and minor’s

contract is absolutely void.contract is absolutely void. ““X”, a minor borrowed Rs. 20,000 from “Y”, a X”, a minor borrowed Rs. 20,000 from “Y”, a

money lender. As a Security for the money advanced, money lender. As a Security for the money advanced, “X” executed a mortgage in Y’s favour.“X” executed a mortgage in Y’s favour.Court=Court= The Contract was void and “Y” cannot The Contract was void and “Y” cannot compelled to repay the amount advanced by him.compelled to repay the amount advanced by him.

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Specific PerformanceSpecific Performance

A contract entered to on behalf of Minor by A contract entered to on behalf of Minor by his guardian or parents can be enforced ifhis guardian or parents can be enforced if

(a)(a) The contract is within the authority of The contract is within the authority of guardian or manger guardian or manger

(b)(b) It for the benefit of the minor.It for the benefit of the minor.

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Sound Mind (Section 12)Sound Mind (Section 12)

For the purpose of making a contract For the purpose of making a contract ==

At the time when he makes it , he is capable of At the time when he makes it , he is capable of understanding it understanding it

++

and of forming a rational judgment as to its and of forming a rational judgment as to its effects upon his interests.effects upon his interests.

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Sum upSum up

A person unsound mind cannot enter into contract.A person unsound mind cannot enter into contract. (1) (1) Condition= Condition= but if he makes a contract when is but if he makes a contract when is

of sound mind, i.e. during lucid interval, he will be of sound mind, i.e. during lucid interval, he will be bound by it.bound by it.

(2) (2) Condition= Condition= but for necessaries supplied to a but for necessaries supplied to a lunatic or to any member of his family, the lunatic or to any member of his family, the lunatic’s estate, if any, will be liable. lunatic’s estate, if any, will be liable. No personal No personal liability.liability.

(3) (3) Condition= Condition= if contract is for benefit it can be if contract is for benefit it can be enforced against the other party.enforced against the other party.

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Persons disqualified from entering Persons disqualified from entering into Contract.into Contract.

Alien enemiesAlien enemies Foreign sovereigns and ambassadorsForeign sovereigns and ambassadors Professional personsProfessional persons CorporationsCorporations Married womenMarried women

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Essentials for making a Contract (Sec 10-30)

Free Consent (Sec 13-22) Not Expressly Declared to be void

Flaws in Free Consent & it’s Effects

Coercion (Sect 15)Fraud (Sec 17)

Misrepresentation (S-18)

Undue influence (Sec 16) Effect (Sec 19A)

Mistake (Sec 20-22) Effect (Sec 20)

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CONSENT (Section 13)CONSENT (Section 13)

“ “ Meeting of Minds”Meeting of Minds” ““Two or more persons are said to consent Two or more persons are said to consent

when when they are agree upon the same thingthey are agree upon the same thing in in the same manner.”the same manner.”

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ExampleExample

““A” agree to sell his fiat car for Rs. 80.000/-A” agree to sell his fiat car for Rs. 80.000/- ““B” agrees to buy the same.B” agrees to buy the same. There is valid contract Since “A” and “B” There is valid contract Since “A” and “B”

have consented to the same subject matter.have consented to the same subject matter.

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ExampleExample

““A”, who owns three Fiat Cars, offers to sell A”, who owns three Fiat Cars, offers to sell one, say, ‘car x’ to “B” for Rs. 80,000/-.one, say, ‘car x’ to “B” for Rs. 80,000/-.

““B” agrees to buy the car for the price thinking B” agrees to buy the car for the price thinking that “A” is selling “car y”.that “A” is selling “car y”.

There is no consent and hence no contractThere is no consent and hence no contract

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FREE CONSENT (Section 14)FREE CONSENT (Section 14)

Coercion Coercion (Section 15)(Section 15) Undue influence Undue influence (Section 16)(Section 16) Misrepresentation Misrepresentation (Section 18)(Section 18) Fraud Fraud (Section 17)(Section 17) Mistake Mistake (Section 20, 21 and 22)(Section 20, 21 and 22)

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COERCION ( Section 15)COERCION ( Section 15)

The doing of The doing of any act forbidden by the any act forbidden by the Indian Penal codeIndian Penal code is coercion even though is coercion even though such act is done in a place where the Indian such act is done in a place where the Indian Penal Code is not in force.Penal Code is not in force.

““A” at the point of a pistol asks “B” to execute A” at the point of a pistol asks “B” to execute a promissory note in his favour and “B” to a promissory note in his favour and “B” to save his life does so.save his life does so.

he can avoid this agreement as his consent he can avoid this agreement as his consent was not free. was not free.

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ExampleExample

A Hindu widow if forced to adopt “X” under A Hindu widow if forced to adopt “X” under threat that her husband’s dead body would not threat that her husband’s dead body would not be allowed to be removed unless she adopts be allowed to be removed unless she adopts “X”.“X”.

Is it Coercion or not?Is it Coercion or not?

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ExampleExample

An agent refused to hand over the books of An agent refused to hand over the books of accounts of the principal unless he released accounts of the principal unless he released him from all liabilities concerning past him from all liabilities concerning past transaction.transaction.

Whether agreement is enforceable?Whether agreement is enforceable?

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AnswerAnswer

The release so given was not binding, being The release so given was not binding, being the outcome of coercion.the outcome of coercion.

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ExampleExample

““X” threatens to kill “A” if does not sell his X” threatens to kill “A” if does not sell his house to “B” at a very low price.house to “B” at a very low price.

The agreement is caused by coercion.The agreement is caused by coercion.

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QuestionQuestion

The sugar co-operative Societies of Maharashtra are The sugar co-operative Societies of Maharashtra are governed by the provisions of Maharashtra Co-governed by the provisions of Maharashtra Co-operative Societies Act,1960.operative Societies Act,1960.

Its members are predominantly sugarcane farmers.Its members are predominantly sugarcane farmers. Under the law, Co-operatives compulsorily took Under the law, Co-operatives compulsorily took

deposits from its farmer members.deposits from its farmer members. The question arose if this was coercion and a ground The question arose if this was coercion and a ground

for making the contract voidablefor making the contract voidable

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LiabilityLiability

A person to whom money has been paid , or A person to whom money has been paid , or anything delivered under coercion must repay anything delivered under coercion must repay or return it.or return it.

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Example Example

A railway company refuses to deliver certain A railway company refuses to deliver certain goods to the consignee, except upon the goods to the consignee, except upon the payment of an illegal charge for carriage. payment of an illegal charge for carriage.

The consignee pays the sum charged in order The consignee pays the sum charged in order to obtain the goods.to obtain the goods.

He is entitled to recover so much of the charge He is entitled to recover so much of the charge as was illegally excessive.as was illegally excessive.

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Effect Effect

The agreement is a contract voidable at the The agreement is a contract voidable at the option of the party whose consent was so option of the party whose consent was so obtained.obtained.

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UNDUE INFLUENCEUNDUE INFLUENCE

Where the relations subsisting between the Where the relations subsisting between the parties are such that one of the parties is in a parties are such that one of the parties is in a position to dominate the willposition to dominate the will of the other and of the other and uses that position to obtain uses that position to obtain an unfair an unfair advantageadvantage over the other. over the other.

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Position to dominate the will of Position to dominate the will of anotheranother

Where he holds a Where he holds a real or apparent authorityreal or apparent authority over the other.over the other.

Where he stands in a Where he stands in a fiduciary relationfiduciary relation (based on mutual trust and confidence) to the (based on mutual trust and confidence) to the other.other.

Where he makes a contract with a person Where he makes a contract with a person whose whose mental capacitymental capacity is affected by reason is affected by reason of age, illness or mental or bodily distress of age, illness or mental or bodily distress

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ExampleExample

A Hindu, well advanced in age, with the object A Hindu, well advanced in age, with the object of securing benefits to his soul in the next of securing benefits to his soul in the next world, gave away his whole property to his world, gave away his whole property to his “guru”.“guru”.

Undue influenceUndue influence

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ExampleExample

““A” having advanced money to his son “B” A” having advanced money to his son “B” during his minority, upon “B” coming of age, during his minority, upon “B” coming of age, obtains, by misuse of parental influence, a obtains, by misuse of parental influence, a bond from “B” for greater amount than the bond from “B” for greater amount than the sum due in respect of the advance.sum due in respect of the advance.

““A” employs undue influence. A” employs undue influence.

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Undue influence when presumedUndue influence when presumed

When he holds a real or apparent authority When he holds a real or apparent authority over the other, or where he stands in a over the other, or where he stands in a fiduciary relation to the otherfiduciary relation to the other

Mental capacity is for the time being or Mental capacity is for the time being or permanently affected by reason of age, illness permanently affected by reason of age, illness or mental or bodily distress.or mental or bodily distress.

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Undue influence when not presumedUndue influence when not presumed

Husband and wifeHusband and wife Master and servantMaster and servant Creditor and debtorCreditor and debtor Landlord and tenantLandlord and tenant

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Presumption can be rebuttedPresumption can be rebutted

Full disclosure of all material facts was madeFull disclosure of all material facts was made The consideration was adequateThe consideration was adequate The weaker party was in receipt of The weaker party was in receipt of

independent legal advice.independent legal advice.

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Transaction with Parda-Nishin womenTransaction with Parda-Nishin women

Transaction with parda-nishin women are Transaction with parda-nishin women are founded on founded on equity and good conscienceequity and good conscience..

A person who contracts with women has to A person who contracts with women has to prove that no undue influence was used and prove that no undue influence was used and that she had free and independent advice, fully that she had free and independent advice, fully understood the content of the contract and understood the content of the contract and exercised her will.exercised her will.

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MeaningMeaning

A women who goes to a court and gives A women who goes to a court and gives evidence, who fixes rents with tenants and evidence, who fixes rents with tenants and collects rents, who communicates when collects rents, who communicates when necessary, in matters of business, with men necessary, in matters of business, with men other that members of her own family, could other that members of her own family, could not be regarded as a not be regarded as a Parda-Nishin.Parda-Nishin.

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Legal Effect on Contract

Voidable Voidable at the option of the aggrieved party.at the option of the aggrieved party. In this, the In this, the court has discretioncourt has discretion to direct the to direct the

aggrieved party for refunding the benefit aggrieved party for refunding the benefit whether in whole or in part or set aside the whether in whole or in part or set aside the contract without any direction for refund.contract without any direction for refund.

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MISREPRESENTATION (18)MISREPRESENTATION (18)

Innocent Misrepresentation Willful Misrepresentation