Laws of ContractLaws of Contract

11--General Principals of the Law of General Principals of the Law of contract ( Sec 1contract ( Sec 1--75 )75 )-- General principals of General principals of contract such as rulescontract such as rules\\laws relating to laws relating to communicationcommunication 22--Specific kinds of Contracts Specific kinds of Contracts vizviz ii--Contracts of Indemnity and Guarantee(Sec124Contracts of Indemnity and Guarantee(Sec124--147)147) iiii--Contracts of Bailment and Pledge(Sec148Contracts of Bailment and Pledge(Sec148--181)181) IiiIii--Contracts of Agency ( Sec182Contracts of Agency ( Sec182--238)238)

Every promise and every set of promises, Every promise and every set of promises, forming the considerations for each other , forming the considerations for each other , is an Agreement It implies that an is an Agreement It implies that an agreement is an accepted proposalagreement is an accepted proposal

11--Plurity of PersonsPlurity of Persons--Expression of Expression of common intentioncommon intention 22--Consensus adConsensus ad--idemidem--The persons The persons

making an agreement must consent to making an agreement must consent to some determinationsome determination 33--Promise or Reciprocal promisesPromise or Reciprocal promises--Every Every

promise or set of promises, forming the promise or set of promises, forming the consideration for each otherconsideration for each other

11--Social AgreementsSocial Agreements 22--Legal ( Valid ) AgreementsLegal ( Valid ) Agreements 33--Void AgreementsVoid Agreements 44--Voidable AgreementsVoidable Agreements 55--Unforeceable AgreementsUnforeceable Agreements 66--Illegal AgreementsIllegal Agreements 77--Agreements to Agree in futureAgreements to Agree in future

All agreements are contracts if they are All agreements are contracts if they are made by the free consent of parties 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 consideration and with a lawful object, and are not hereby expressively declared to be are not hereby expressively declared to be void.void. An agreement enforceable by law is a An agreement enforceable by law is a

contractcontract

11--Plurity of PersonsPlurity of Persons--There must be minimum There must be minimum two personstwo persons 22--Offer and AcceptanceOffer and Acceptance--Lawful proposal or Lawful proposal or

offer by one party to anotheroffer by one party to another 33--Legal Relationship, Legal consequences, Legal Relationship, Legal consequences,

Promises Promises and Obligations recognized by Law.and Obligations recognized by Law.--two or more parties intention to create a legal two or more parties intention to create a legal relationshiprelationship 44--Lawful considerationLawful consideration--The agreement must The agreement must

be supported by considerationbe supported by consideration 55--Contractual Capacity ( Competency ) of Contractual Capacity ( Competency ) of

PartiesParties--Parties must be capable of entering Parties must be capable of entering into a contractinto a contract

66--Free and Genuine consentFree and Genuine consent--Free and Free and genuine consentgenuine consent 77--Lawful objectLawful object--The object of agreement must The object of agreement must

be lawfulbe lawful 88--Agreement not declared voidAgreement not declared void--the the

agreement must have not been declared void agreement must have not been declared void by any lawby any law 99--Certainity and Possibility of PerformanceCertainity and Possibility of Performance--

The terms of agreement must be certainThe terms of agreement must be certain 1010--Legal FormalitiesLegal Formalities--The agreement may be The agreement may be

oral or in writingoral or in writing

11--Classification according to ValidityClassification according to Validity 22--Classification according to formationClassification according to formation 33--Classification on the basis of the Classification on the basis of the

Obligation to PerformObligation to Perform 44--Clasiification on the basis of ExecutionClasiification on the basis of Execution

AA-- EnforceabilityEnforceability--Avoidable or enforceable Avoidable or enforceable contractcontractBB--Legal obligationLegal obligation--Certain agreements Certain agreements

may not create any legal obligationmay not create any legal obligationCC--Binding on PartiesBinding on Parties--Binding between Binding between

Agreement and contractAgreement and contractDD-- SpecialtySpecialty--Agreement has a wider Agreement has a wider

concept than a contractconcept than a contract

ii--LegalityLegality--Enforcement by a PartyEnforcement by a Party iiii--Time of EnforceabilityTime of Enforceability--Whether it can be Whether it can be

enforced from beginningenforced from beginning iiiiii--RestitutionRestitution--Restitution is always Restitution is always

followedfollowed iviv--CompensationCompensation--Compensation based on Compensation based on

performanceperformance\\non performancenon performance vv--Collateral transactionsCollateral transactions--validity of validity of

collateral agreementcollateral agreement \\ contractcontract

ii--All inclusiveAll inclusive--The word void is used in The word void is used in broader sensebroader sense iiii--ProofsProofs--Void agreements are not illegal Void agreements are not illegal

unless they are proved illegalunless they are proved illegal iiiiii--Collateral transactionsCollateral transactions--Void agreement Void agreement

does not involve collateral transactionsdoes not involve collateral transactions iviv-- Punish abilityPunish ability--Void agreements are not Void agreements are not

always punishablealways punishable

ii--Defect in subject Defect in subject \\ ProcedureProcedure--Technical Technical and procedural requirementsand procedural requirements iiii--Timing of enforceabilityTiming of enforceability--Illegal Illegal

agreements are void from beginningagreements are void from beginning iiiiii--Collateral transactionsCollateral transactions flaw in flaw in

procedural mattersprocedural matters iviv--PunishmentPunishment--Penalty clausePenalty clause

A contract is made by process of lawful offer A contract is made by process of lawful offer by one party and the lawful acceptance of by one party and the lawful acceptance of the offer by the other party to whom it is the offer by the other party to whom it is made.made. Thus an offer is the starting point of making Thus an offer is the starting point of making

a contracta contract

11--Express and Implied offerExpress and Implied offer--An offer An offer made by words ,spoken or writtenmade by words ,spoken or written 22--Specific and General offerSpecific and General offer--When an When an

offer is made to definite class of peopleoffer is made to definite class of people 33--Positive and negative offerPositive and negative offer--Whether the Whether the

offer is positive or negativeoffer is positive or negative

11-- The offer may be Express or ImpliedThe offer may be Express or Implied 22--The offer may be positive or negativeThe offer may be positive or negative 33--Offer must intend to create legal Offer must intend to create legal

relationshiprelationship 44--Terms of offer must be certainTerms of offer must be certain 55--An offer may be made to specific person An offer may be made to specific person

or class of persons or any one in the world or class of persons or any one in the world at largeat large 66-- The offer must express the final The offer must express the final

willingness of the Offerorwillingness of the Offeror

77-- Every offer must be communicated to the Every offer must be communicated to the OffereeOfferee 88--An offer must be distinguished fromAn offer must be distinguished from 99--Offer must be made with a view to Offer must be made with a view to

obtaining the assentobtaining the assent 1010--Offer should not contain a Offer should not contain a term,theterm,the nonnon--

compliance of which would amount to compliance of which would amount to acceptanceacceptance 1111--An offer may be conditionalAn offer may be conditional

11-- By notice of revocationBy notice of revocation 22--By lapse of timeBy lapse of time 33--By failure of the Acceptor to fulfill a By failure of the Acceptor to fulfill a

condition precedent to acceptancecondition precedent to acceptance 44--By failure to accept according to the mode By failure to accept according to the mode

prescribedprescribed 55--By death or insanity of the OfferorBy death or insanity of the Offeror 66--By rejectionBy rejection 77--By subsequent illegality or destruction of By subsequent illegality or destruction of

th bj t ttth bj t tt

An An AcceptanceAcceptance is defined as is defined as When the When the person to whom the proposal is made person to whom the proposal is made signifies his assent thereto ,the proposal is signifies his assent thereto ,the proposal is said to be accepted. A proposal when said to be accepted. A proposal when accepted becomes a promise ( Sec 2 (b) )accepted becomes a promise ( Sec 2 (b) )

11--Acceptance must be absolute and Acceptance must be absolute and unconditionalunconditional 22--Acceptance by usual mode as desired by Acceptance by usual mode as desired by

offerorofferor 33--Acceptance can not precede an offerAcceptance can not precede an offer 44--Acceptance must be express or impliedAcceptance must be express or implied 55--Acceptance must be given within a Acceptance must be given within a

reasonable timereasonable time 66--Acceptance must show to fulfill a promiseAcceptance must show to fulfill a promise

77-- Acceptance must by an ascertained Acceptance must by an ascertained personperson 88--Offer once rejected ca not be accepted Offer once rejected ca not be accepted

until it is reneweduntil it is renewed 99--Acceptance of offer means acceptance of Acceptance of offer means acceptance of

all terms attached to the offerall terms attached to the offer 1010--Acceptance must be made before the Acceptance must be made before the

lapse or revocation of an offerlapse or revocation of an offer 1111-- The acceptor must be aware of the The acceptor must be aware of the

proposal at the time of the offerproposal at the time of the offer

ii--As against the person who makes itAs against the person who makes it--When it is put into course of transmissionWhen it is put into course of transmission iiii--As against the person to whom it is As against the person to whom it is

made.made.--When it comes to the knowledge of When it comes to the knowledge of the personthe person

11-- An offer sent by post is communicated only An offer sent by post is communicated only when it reaches the when it reaches the offereeofferee 22--An acceptance sent through post is An acceptance sent through post is

completed ,the moment the letter of completed ,the moment the letter of acceptance properly addressed and stamped is acceptance properly addressed and stamped is postedposted 33--An acceptance binds the acceptor only when An acceptance binds the acceptor only when

it reaches the offerorit reaches the offeror 44--The place where letter of acceptance is The place where letter of acceptance is

posted will be the place where the contract is posted will be the place where the contract is mademade 55--Regarding revocation of an offer the letter ofRegarding revocation of an offer the letter of

11--Offer constitutes the first stage in the Offer constitutes the first stage in the formation of a contract, where as formation of a contract, where as acceptance constitutes the second stage in acceptance constitutes the second stage in the formation of a contractthe formation of a contract 22--An offer is made by the offeror to the An offer is made by the offeror to the

offereeofferee .But an acceptance is given by the .But an acceptance is given by the offereeofferee to the offerorto the offeror 33--An offer is not held until it is brought to the An offer is not held until it is brought to the

knowledge of the knowledge of the offereeofferee..

11-- The consideration is an act or abstinenceThe consideration is an act or abstinence 22--Such act ,or abstinence should be done at Such act ,or abstinence should be done at

the desire of the promisorthe desire of the promisor 33--Such act or abstinence may be done by Such act or abstinence may be done by

the promisee or any other personthe promisee or any other person 44--Such act or abstinence is either already Such act or abstinence is either already

executed or it is in process of execution or executed or it is in process of execution or may be still executormay be still executor

11-- Consideration is required both for Consideration is required both for formation and discharge of an agreement formation and discharge of an agreement or contractor contract 22--Consideration may be past, present or Consideration may be past, present or

futurefuture 33--Consideration may either be positive or Consideration may either be positive or

negativenegative 44-- Consideration must moveConsideration must move 55--Consideration may be furnished by the Consideration may be furnished by the

Promisee or any other personPromisee or any other person

66-- Consideration must be lawfulConsideration must be lawful 77--Consideration must be real and not Consideration must be real and not

illusoryillusory 88--Consideration must be of some value in Consideration must be of some value in

the eyes of lawthe eyes of law 99--Consideration need not be adequateConsideration need not be adequate 1010--Consideration must not be the Consideration must not be the

performance of existing dutiesperformance of existing duties

AA-- Natural love and AffectionNatural love and Affection BB-- Compensation for past voluntary servicesCompensation for past voluntary servicesCC--Promise to pay time barred debt.Promise to pay time barred debt.DD--Completed giftCompleted gift EE--AgencyAgency FF--RemissionRemissionGG--BailmentBailmentHH--GuaranteeGuarantee

11--Beneficiary in a trust or chargeBeneficiary in a trust or charge 22--Acknowledgement of payment or Acknowledgement of payment or

EstoppedEstopped 33--Agreement creating a charge on LandAgreement creating a charge on Land 44--Family settlements Family settlements 55--Assignee of a contractAssignee of a contract

Every person is competent to contract who Every person is competent to contract who is of the age of the majority according to the is of the age of the majority according to the law to which he is subject and who is of law to which he is subject and who is of sound mind and is not disqualified from sound mind and is not disqualified from contracting by any law to which he is subjectcontracting by any law to which he is subject

AA--IdiotsIdiots--A person who is devoid of any A person who is devoid of any faculties of thinking or forming rational faculties of thinking or forming rational judgment judgment BB--Lunatics and Insane personsLunatics and Insane persons--Whose Whose

mental power has been derailedmental power has been derailedCC--DrunkardsDrunkards A person under the influence A person under the influence

of intoxicationof intoxication

Minor is a person who has not completed Minor is a person who has not completed the age of 18 years. However ,a minor for the age of 18 years. However ,a minor for whom a guardian has been appointed by a whom a guardian has been appointed by a court or when his property is managed by court or when his property is managed by the court of wardsthe court of wards

11--Agreement void ab initioAgreement void ab initio 22--No ratificationNo ratification 33--Can be a promise or beneficiaryCan be a promise or beneficiary 44--No estoppelsNo estoppels 55--No specific performanceNo specific performance 66--Liability for tortsLiability for torts 77--No insolvencyNo insolvency 88--Partnership by a minor is permittedPartnership by a minor is permitted

99--Can be an agentCan be an agent 1010--Cannot bind parents or guardianCannot bind parents or guardian 1111--Joint contracts by minor and adultJoint contracts by minor and adult 1212--Liability for necessariesLiability for necessaries 1313--Minor can be ShareholderMinor can be Shareholder 1414--Claim against the property and not Claim against the property and not

against the personagainst the person 1515--Restitution stops where repayment Restitution stops where repayment

beginsbegins

ii--Livery for an officerLivery for an officers servants servant iiii-- Horse, when Doctor ordered riding Horse, when Doctor ordered riding

exercisesexercises iiiiii--Goods supplied to a MinorGoods supplied to a Minors wife for her s wife for her

supportsupport iviv--Rings purchased as gifts to the MinorRings purchased as gifts to the Minors s

fiancfiancee vv-- A racing bicycleA racing bicycle

ii--Goods supplied for the purpose of tradingGoods supplied for the purpose of trading iiii--A Silver gift gobletA Silver gift goblet iiiiii--Cigars and tobaccoCigars and tobacco iviv--Refreshment to an undergraduate for Refreshment to an undergraduate for

entertainingentertaining

On the ground of status, some degree of On the ground of status, some degree of incapacity is imposed by lawincapacity is imposed by law AA--Foreign Sovereigns ,Ambassadors and Foreign Sovereigns ,Ambassadors and

EnvoysEnvoys BB--Alien EnemyAlien EnemyCC-- ProfessionalsProfessionalsDD--CorporationCorporation EE--BankruptBankrupt FF--Felons and ConvictsFelons and ConvictsGG--MarriageMarriage

To make a contract valid not only the To make a contract valid not only the presence of a consent of the other party is presence of a consent of the other party is necessary but this consent should be free necessary but this consent should be free and genuineand genuine If there is no consent , the parties are not If there is no consent , the parties are not

said to be ad idemsaid to be ad idem

Coercion isCoercion is i)i)--the committing or threatening to commit the committing or threatening to commit

any act forbidden by the Indian Panel Code any act forbidden by the Indian Panel Code or or ii)ii)-- the unlawful detaining or threatening to the unlawful detaining or threatening to

detain any property to the prejudice of any detain any property to the prejudice of any person whatsoeverperson whatsoever iii)iii)--with the intension of causing any person with the intension of causing any person

to enter into an agreement .it is immaterial to enter into an agreement .it is immaterial whether the Indian Panel Code is or not in whether the Indian Panel Code is or not in force in the place where the coercion is force in the place where the coercion is

ii--The Committing of any act forbidden by the The Committing of any act forbidden by the Indian Panel CodeIndian Panel Code iiii--The Threat to commit any act forbidden by The Threat to commit any act forbidden by

Indian Penal Code (IPC)Indian Penal Code (IPC) iiiiii--The unlawful detention of any propertyThe unlawful detention of any property iviv--threatening to detain any property threatening to detain any property

wronglywrongly vv--The Intention to get consent to the The Intention to get consent to the

AgreementAgreement vivi--Coercion may proceed from any partyCoercion may proceed from any party viivii Coercion may be directed against anyCoercion may be directed against any

11--Does a threat to prosecute a man or file a Does a threat to prosecute a man or file a civil or criminal suit against a man amount to civil or criminal suit against a man amount to coercion?.coercion?. 22--Does a threat to charge high prices Does a threat to charge high prices

amount to coercion?amount to coercion? 33--Does a threat to charge high rate of Does a threat to charge high rate of

interest amount to coercion ?interest amount to coercion ?

A contract is said to be induced by undue A contract is said to be induced by undue influence where influence where ii--One of the parties involved is in position to One of the parties involved is in position to

dominate the will of the otherdominate the will of the other iiii--He has been in a position to obtain an He has been in a position to obtain an

unfair advantage over the otherunfair advantage over the other

Where a person who is in a position to Where a person who is in a position to dominate the will of another, enters into a dominate the will of another, enters into a contract with him ,and the transaction contract with him ,and the transaction appears, on the face of it or on the evidence appears, on the face of it or on the evidence adduced, to be unconscionable, the burden adduced, to be unconscionable, the burden of proving that such contract was not of proving that such contract was not induced by undue influence shall lie upon induced by undue influence shall lie upon the person in a position to dominate the will the person in a position to dominate the will of the otherof the other

11--PropertyProperty--The consent is obtained by threat The consent is obtained by threat of an offenceof an offence 22--CrimeCrime--Includes criminal act and criminal Includes criminal act and criminal

liabilityliability 33--Character or forceCharacter or force--Coercion is mainly of Coercion is mainly of

physical character physical character 44--ConsentConsent--Destroying the consentDestroying the consent 55--PlacePlace--may be committed outside India but may be committed outside India but

undue influence is exercised in Indiaundue influence is exercised in India 66--PresumptionPresumption--Has to be proved by a person Has to be proved by a person

who alleges itwho alleges it 77--Third partyThird party--May be directed against a third May be directed against a third

partyparty

Section 13 of the Indian Penal Code states Section 13 of the Indian Penal Code states that that FraudFraud means and includes various means and includes various acts committed by a party to a contract , or acts committed by a party to a contract , or with his connivance, or by his agent, with with his connivance, or by his agent, with intent to deceive another party thereto or his intent to deceive another party thereto or his agent, or to induce him to enter into a agent, or to induce him to enter into a contract.contract.

ii--Suggestion as to a factSuggestion as to a fact iiii--The active concealment of a factThe active concealment of a fact iiiiii--The representation must relate to a factThe representation must relate to a fact iviv--Fraud by a party or his agent to the Fraud by a party or his agent to the

contractcontract vv--The representation must in fact deceiveThe representation must in fact deceive vivi--Actually deceived or suffered damageActually deceived or suffered damage

11-- The general rule is that mere silence is The general rule is that mere silence is not fraudnot fraud 22-- Silence is fraudulent Silence is fraudulent 33--Silence is fraudulent where the Silence is fraudulent where the

circumstances are such that circumstances are such that silence is in silence is in itself equivalent to speechitself equivalent to speech

ii-- Statutory obligation to discloseStatutory obligation to disclose iiii--Duty to disclose in contracts of Duty to disclose in contracts of Uberrimae Uberrimae

fidei fidei ( utmost good faith )( utmost good faith ) iiiiii--Silence is , in itself ,equivalent to speechSilence is , in itself ,equivalent to speech

Misrepresentation is any undue statement Misrepresentation is any undue statement made by a party to the contract to another made by a party to the contract to another ,which is a material statement of fact and ,which is a material statement of fact and not of law and which induced the other party not of law and which induced the other party to act upon the statement and enter into the to act upon the statement and enter into the contract. Misrepresentation arises when the contract. Misrepresentation arises when the presentation or statement made is presentation or statement made is inaccurate but the inaccuracy is not due to inaccurate but the inaccuracy is not due to any desire to defraud the other party.any desire to defraud the other party.

In case of misrepresentation, the contract In case of misrepresentation, the contract becomes voidable and the aggrieved party canbecomes voidable and the aggrieved party can ii--Avoid the agreementAvoid the agreement iiii--Insist that the contract be performed and he Insist that the contract be performed and he

shall be put in the position in which he would shall be put in the position in which he would have been if the representation made had been have been if the representation made had been true.true. iiiiii--If the party to whom the innocent If the party to whom the innocent

misrepresentation is made had the means of misrepresentation is made had the means of discovering the truth with ordinary diligence, discovering the truth with ordinary diligence, the contract is not voidablethe contract is not voidable

ii--In both the cases ,a false In both the cases ,a false representation representation is made by a partyis made by a party iiii--In both the cases ,the contract is In both the cases ,the contract is voidablevoidable

at the option of the party whose consent is at the option of the party whose consent is obtained by fraud or misrepresentationobtained by fraud or misrepresentation

11--IntentionIntention--The type of statementThe type of statement 22--DamagesDamages--Suit for damagesSuit for damages 33--RescissionRescission--When contract is vitiated by When contract is vitiated by

innocent misrepresentationinnocent misrepresentation 44--Where truth can be recovered with Where truth can be recovered with

ordinary diligenceordinary diligence--Discovering the truthDiscovering the truth 55--Criminal actCriminal act--Criminal act punishable Criminal act punishable

under the Indian Panel Codeunder the Indian Panel Code 66--SilenceSilence--Silence can be construed as Silence can be construed as

fraudfraud

Mistake may be defined as erroneous belief Mistake may be defined as erroneous belief concerning something, consent cannot be concerning something, consent cannot be said to be said to be freefree when an agreement is when an agreement is entered into under a mistake. An agreement entered into under a mistake. An agreement is valid as a contract only when the parties is valid as a contract only when the parties agree upon the same thing in the same agree upon the same thing in the same sensesense

ii--Mistake by LawMistake by Lawa)a)--Mistake as to law in IndiaMistake as to law in Indiab)b)--Mistake as to a foreign lawMistake as to a foreign law

iiii-- Mistake of factMistake of fact a)a)--BilateralBilateral b)b)--UnilateralUnilateral

ii-- Mistake as to the subject matterMistake as to the subject matter aa--Mistake as to the existence of the subject Mistake as to the existence of the subject

mattermatter bb--Mistake as to the identity of the subject Mistake as to the identity of the subject

mattermatter cc--Mistake about the quality of the subject Mistake about the quality of the subject

mattermatter dd--Mistake as to the quantity of the subject Mistake as to the quantity of the subject

mattermatter ee--Mistake as to the title of the subject matterMistake as to the title of the subject matter ff--Mistake as to the price of the subject Mistake as to the price of the subject

mattermatter

iiii--Mistake as to the possibility of Mistake as to the possibility of performingperforming the contractthe contract aa--Physical impossibilityPhysical impossibility bb--Legal impossibilityLegal impossibility

Section 23 of the Contract act states that Section 23 of the Contract act states that the object or consideration of an the object or consideration of an agreement is unlawful in the following agreement is unlawful in the following casescases ii--Where it is forbidden by lawWhere it is forbidden by law iiii--Where it defeats the provisions of any lawWhere it defeats the provisions of any law iiiiii--Where it is fraudulentWhere it is fraudulent iviv--Where it is injurious to another person or Where it is injurious to another person or

his propertyhis property vv Where it is immoralWhere it is immoral

11--Forebidden by lawForebidden by law 22--The object and Consideration must not The object and Consideration must not

defeat the Provisions of any lawdefeat the Provisions of any law 33--The Object and Consideration must not be The Object and Consideration must not be

FraudulentFraudulent 44--If it involves or implies Injury to the person or If it involves or implies Injury to the person or

property of anotherproperty of another 55-- The Object and Consideration must not be The Object and Consideration must not be

immoralimmoral 66-- The Object and Consideration must not be The Object and Consideration must not be

opposed to the public policyopposed to the public policy

Public interest Public interest implies common good or implies common good or general social welfare .general social welfare . The term The term public interestpublic interest is ,therefore , is ,therefore , an an

elusive abstraction ,yet it indicates a elusive abstraction ,yet it indicates a standard of goodness for judging private standard of goodness for judging private acts and conduct in the social context.acts and conduct in the social context.

11--Trading with an alien enemyTrading with an alien enemy 22--Agreement to promote hostile action in a Agreement to promote hostile action in a

friendly statefriendly state 33--Agreement interfering with course of justiceAgreement interfering with course of justice 44--Agreements in restraint of Legal proceedingsAgreements in restraint of Legal proceedings 55--Agreements for stifling criminal prosecution Agreements for stifling criminal prosecution 66--Agreement tending to be an abuse of legal Agreement tending to be an abuse of legal

process process 77--Agreement to oust the jurisdiction of courtsAgreement to oust the jurisdiction of courts

88--Agreements to vary periods of limitationAgreements to vary periods of limitation 99--Agreement for sale or to influence of Agreement for sale or to influence of

public officespublic offices 1010--Agreements to influence election in Agreements to influence election in

public officespublic offices 1111--Agreement tending to create interest Agreement tending to create interest

opposed to dutyopposed to duty 1212--Agreement tending to create monopoliesAgreement tending to create monopolies 1313--Agreement to restraint of parental rightsAgreement to restraint of parental rights

1414 A t t i ti l lib tA t t i ti l lib t

1515-- Agreement in restraint of marriageAgreement in restraint of marriage 1616--Marriage brokerage agreementsMarriage brokerage agreements 1717--Agreement interfering with marital dutiesAgreement interfering with marital duties 1818--Agreement in fraud of creditorsAgreement in fraud of creditors 1919--Agreement to defraud revenue Agreement to defraud revenue

authoritiesauthorities 2020--Agreement in restraint of professionAgreement in restraint of profession 2121--Agreement tending to create monopolies Agreement tending to create monopolies 2222--Agreement in restraint of tradeAgreement in restraint of trade

When a person agrees to help another by When a person agrees to help another by money or otherwise in litigation in which he money or otherwise in litigation in which he is himself is not interested ,it is called is himself is not interested ,it is called Maintenance Maintenance . When a person helps . When a person helps another in litigation in exchange of a another in litigation in exchange of a promise to handover a portion of the fruits of promise to handover a portion of the fruits of the litigation ,it is called the litigation ,it is called champertychamperty..

An agreement which interferes with an An agreement which interferes with an individual individual s rights to engage himself in any s rights to engage himself in any lawful trade ,occupation or profession is lawful trade ,occupation or profession is called called agreement in restraint of tradeagreement in restraint of trade..

11--Sale of GoodwillSale of Goodwill--That seller will not carry That seller will not carry any businessany business 22--Exceptions under Partnership actExceptions under Partnership act--The The

Indian Partnership Act 1932Indian Partnership Act 1932 33--Service contractsService contracts--Employees working Employees working

elsewhere during the period of agreementelsewhere during the period of agreement 44--Trade combinationsTrade combinations--A voluntary A voluntary

agreement among the membersagreement among the members 55-Exclusive agencyExclusive agency Dealing in goods ofDealing in goods of

11--Agreement by persons who are not Agreement by persons who are not competent to contractcompetent to contract 22--Agreements under a mutual mistake of Agreements under a mutual mistake of

fact material to the agreementfact material to the agreement 33--Agreements with unlawful consideration or Agreements with unlawful consideration or

objectobject 44--Agreements ,the consideration or object of Agreements ,the consideration or object of

which is unlawful in partwhich is unlawful in part 55--Agreement without considerationAgreement without consideration 66 Agreements in restraint of marriageAgreements in restraint of marriage

77-- Agreements in restraints of TradeAgreements in restraints of Trade 88--Agreements in restraint of legal Agreements in restraint of legal

proceedingsproceedings 99--Agreements the meaning of which is Agreements the meaning of which is

uncertainuncertain 1010--Wagering agreementsWagering agreements 1111--Agreements to do impossible actsAgreements to do impossible acts

Wager as a promise to give money or Wager as a promise to give money or moneys' worth upon the determination or moneys' worth upon the determination or ascertainment of an uncertain eventascertainment of an uncertain eventCovered under Sec 30 of Indian Contract Covered under Sec 30 of Indian Contract

Act 1872Act 1872

11--Uncertain eventUncertain event 22--Mutual chances of gain or lossMutual chances of gain or loss 33--Neither party to have control over the Neither party to have control over the

eventevent 44--No other interest in the eventNo other interest in the event 55--The promise must be to pay money or The promise must be to pay money or

moneymoneys worths worth

A wagering agreement being A wagering agreement being voidvoid can not can not be enforced in any court of lawbe enforced in any court of law Sec 30 of the Act lays down that all the Sec 30 of the Act lays down that all the

wagering contracts are voidwagering contracts are void

11--Horse raceHorse race 22--CrossCross--word competitors and cross word competitors and cross word word

puzzlepuzzle 33--Sports competitions, Literary competitionsSports competitions, Literary competitions 44--Picture puzzlePicture puzzle 55--Lottery or RaffleLottery or Raffle 66--Chit fundChit fund 77--Flower show competition, Dog show Flower show competition, Dog show

competition ,beauty contestcompetition ,beauty contest 88--Contract of insuranceContract of insurance

11--GamblingGambling--It is a game of chanceIt is a game of chance 22--IntentionIntention--The parties contemplate to get The parties contemplate to get

a certain sum of money on the happening of a certain sum of money on the happening of an uncertain future eventan uncertain future event 33--Insurable interestInsurable interest-- The parties do not The parties do not

cover up their risk of future loss.cover up their risk of future loss. 44--IndemnityIndemnity It is not a contract of It is not a contract of

IndemnityIndemnity

55--Legal effectLegal effect It is a void agreement ab It is a void agreement ab initioinitio 66--Parties interestParties interest Only one of the parties Only one of the parties

is interested in protecting the subject matteris interested in protecting the subject matter 77--StakesStakes--There is the same stake for both There is the same stake for both

the partiesthe parties 88--Risk Risk Neither of the parties is subject to Neither of the parties is subject to

any particular risk before entering into a any particular risk before entering into a contractcontract

11--GamblingGambling It is not a game of chanceIt is not a game of chance 22--IntentionIntention There is no such intentionThere is no such intention 33--Insurable interestInsurable interest One of the parties One of the parties

covers up his risk for future loss .He has covers up his risk for future loss .He has insurable interestinsurable interest 44--Indemnity Indemnity General ( nonGeneral ( non--life) insurance life) insurance

is a contract of indemnityis a contract of indemnity

55--Legal effectLegal effect It is a valid contractIt is a valid contract 66--Parties interestParties interest Both the contracting Both the contracting

parties are interestedparties are interested 77--StakesStakes The stakes of the parties are not The stakes of the parties are not

samesame 88--RiskRisk The insured ( subject matter ) is The insured ( subject matter ) is

subject to risksubject to risk

The term The term Illegal agreement Illegal agreement may be may be defined as the agreement which is defined as the agreement which is expressively or impliedly prohibited by law expressively or impliedly prohibited by law i.e. By Indian Panel Code or by some other i.e. By Indian Panel Code or by some other special Legislationspecial Legislation

ii-- Effects on main transactionEffects on main transaction--Void from Void from very beginning very beginning iiii--Effects on collateral transactionsEffects on collateral transactions--Any Any

incidental or parallel transactionincidental or parallel transaction iiiiii--Plaintiff not relying on the illegal Plaintiff not relying on the illegal

contractcontract--If the Plaintiff has parted with If the Plaintiff has parted with possession of his propertypossession of his property

11--Restrictions from enforcing legal rightsRestrictions from enforcing legal rights 22--Agreeement which cuts short the limitation Agreeement which cuts short the limitation

periodperiod 33--An agreement which extinguishes the An agreement which extinguishes the

rights of a partyrights of a party 44--An agreement which discharges a party An agreement which discharges a party

from liabilityfrom liability

A contingent contract is a contract indicating A contingent contract is a contract indicating to do or not to do something, if some event, to do or not to do something, if some event, collateral to such contract, does or does not collateral to such contract, does or does not happen. The contract of insurance, contract happen. The contract of insurance, contract of indemnity and guarantee are the of indemnity and guarantee are the examplesexamples

11-- Its performance depends upon the Its performance depends upon the uncertainty of happening or nonuncertainty of happening or non-- happening happening in future of some event. it is this in future of some event. it is this dependence on a future which distinguishes dependence on a future which distinguishes a contract from other contracts.a contract from other contracts. 22--The event must be collateral i.e. incidental The event must be collateral i.e. incidental

to contractto contract 33--the contingent event should not be mere the contingent event should not be mere

will of promisor.will of promisor.

11--The happening of a Future Uncertain The happening of a Future Uncertain eventevent 22--The nonThe non--happening of an uncertain Future happening of an uncertain Future

eventevent 33--When Event to be is Deemed impossibleWhen Event to be is Deemed impossible 44--The happening of an event within fixed The happening of an event within fixed

timetime 55--The nonThe non--happening of an event within a happening of an event within a

fixed timefixed time 66 impossible eventsimpossible events

11--Mutual promiseMutual promise--Agreement consists of Agreement consists of mutual promisesmutual promises 22--ValidityValidity--A wagering contract is absolutely A wagering contract is absolutely

voidvoid 33--PerformancePerformance--Neither party intends to Neither party intends to

perform the contractperform the contract 44--Interest in the subject matterInterest in the subject matter--Have no Have no

other interest in the subject matterother interest in the subject matter 55--Future eventFuture event--future event is the sole future event is the sole

determining factordetermining factor 66--NatureNature--All contingent contracts are not of a All contingent contracts are not of a

wagering naturewagering nature

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