INDIAN CONTRACT ACT 1872 Sec 2(h) [2(C)], CONSIDERATION [2 ...
Transcript of INDIAN CONTRACT ACT 1872 Sec 2(h) [2(C)], CONSIDERATION [2 ...
INDIAN CONTRACT ACT 1872
Sec 2(h) – Contract is an Agreement enforceable by law
Sec 10 – All agreements are contract if they are made by the
• free consent of parties competent to contract for
• a lawful consideration and with a
• lawful object and are not hereby expressly declared to be void.
OFFER [2(A)], ACCEPTOR [2(B)], PROMISE [2(C)], CONSIDERATION [2(D)], AGREEMENT [2(E)]
ESSENTIAL OF A CONTRACT
1. Not be a Social agreement/ Domestic agreement
a. Balfour v Balfour (Maintenance allowance)
b. Spellmen v Spellman (Car)
2. Intention to create a Legal Obligation
a. Balfour v Balfour (Maintenance allowance)
3. There must be a consensus ad idem (Agreed in same sense)
4. Free consent and genuine [sec 14]
5. Lawful Consideration [Sec 2(d)]
6. Capacity of Contract [Sec 11]
a. Age Majority
b. sound Mind
7. Lawful Object [ Sec 23 ]
8. Not declared Void by any law in force
9. Oral or in Writing if agreement says then to be registered
10. Possibility of Performance
11. Term must be clear and certain
KINDS OF CONTRACT
• Valid contract
• Void contract Sec 2(g) – Void ab initio
o Mohiribibi vs Dharmadhas Ghose
• Voidable contract Sec 2(i)
o Only one person has all rights
• Un enforceable contract
• Illegal contract
OFFER OR PROPOSAL
Express offer and Implied Offer
General Offer and Specific Offer
Carlil V Carbolic Smoke company
Cross Offer
Tinn v Hoffman
Counter Offer
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Hyde v Wrench
ESSENTIAL OF AN OFFER
1. Legal Relationship
2. Define, Un ambiguous
3. Communicated to person whom it is made
4. Obtaining ascent of offeree
5. Not contain a term non-compliance
OFFER TO CHAFFER ( OFFER AND INVITATION TO MAKE OFFER)
Harvey V Facey
Fisher v bell
LAPSE OF OFFER TERMINATION OF OFFER
1. Notice of termination or Revocation
2. By lapse of Time
3. By non fulfilment of precedents
4. By Death or Insanity
a. Dickinson v Dodds
5. Counter Offer
WHAT IS MEANT BY ACCEPTANCE
LEGAL RULES OF ACCEPTANCE
1. Absolute and un qualified
Hyde v Wrench
2. Communicated to Offer
Bhagavandhas v Giridharlal
3. Given by Mode prescribed by Offer
4. Reasonable time
5. Cannot precede offer
6. Intention to create a legal obligation
7. Acceptance should be by the offeree
8. Given before the lapse of time
PAST CONSIDERATION
InRe MC Ardle
Love and Affection
Poonoo v Faez
DOCTRINE OF PRIVITY OF CONSIDERATION
Dunlop V Selfridge
Chinnayyaa v Ramayya
CHARITABLE SUBSCRIPTION
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Kdharnathth v Gorie Mohammed
CAPACITY TO CONTRACT 11
INCOMPETENT TO CONTRACT
1. Minor
a) Void Ab initio
i. Mohiri bib v Dharmadhas Ghose
b) Minor can be 3romise of beneficiary
c) No ractification
d) No restitution
e) No Estopel
f) No Specific performance
g) No Vicarious liability
h) Liable to enter Partnership
2. Un Sound Mind 12
a. Lunatic
b. Idiot
c. Drunken
3. He is not disqualified by law (Alien Enemy)
Free Consent 13
• Coercion 15
• Undue Influence 16
• Misrepresentation 18
o Derry v Peek ( tram)
• Fraud 17
o Peek v Gurney ( document liability ,share holder)
• Mistake 20 21 22
o Mistake of law
o Mistake of Fact
▪ Bilateral
• Common Mistake ( Bell v Lever Brother)
o Subject matter
▪ Existence of Subject Matter
▪ Quantity
▪ Quality
▪ Price
▪ Title
o Performing Contract
▪ Physical Impossibility
▪ Legally Impossibility
• Mutual Mistake
▪ Uni lateral
• Mistake of identity
• Nature of Contract
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UNLAWFUL AGREEMENT -23
• It is forbidden by law
• It would defeat the provisions of law
• It is fraudulent
• It implies or involves injury to person or property
• Court regarded as its immoral or opposed to public policy
Pearce v Brooks
AGREEMENT OPPOSED TO PUBLIC POLICY
N V P Pandian v M M Roy
• Trading with Alien
• Stifling Prosecution
• Maintenance and Champerty
• Transfer of Public office and Titles
EX TURPI CAUSA NON ORITUR ACTIO IN PARI DELICTO POTIOR EST CONDITIO DEFENDANTIS CONSEQUENCES OF ILLEGALITY Pearce v Brooks
Void Agreements 24-30
• Agreement without consideration 25
• Agreement in restrain of marriage 26
• Agreement in restrain of Profession, Trade or Business 27
• Agreement in restrain of legal proceedings 28
• Uncertain Agreements 29
• Wagering Agreements 30
DOCTRINE OF BLUE PENCIL
24 Many single considerations,57- Reciprocal Promice,58- Alternative Promise
CONTINGENT CONTRACT 32-36
Absolute Contract or Conditional Contract
Essential feature
• Valid
• Performance must be conditional
• Relate to future events
• Event collateral to contract
QUASI CONTRACT 68-72
• Necessaries supplied 68
• Reimbursement of Money 69
• Obligation of Person enjoying benefit of non gratuitous act- Quantum merit
• Obligation of finder of lost goods 71
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• Liability of person to whom money is paid by mistake 72
DOCTRINE OF PRIVY OF CONTRACT
Dunlop Tyre v Selfridge Co
Exception to Doctrine
• Beneficiary of Trust
• Marriage settlement ( Family Arrangement)
• Charge crated over Property
• Acknowledgment or Estoppel of part payment
• Assignment of Contract
• Contract through an Agent
DISCHARGE OF CONTRACT
• By Performance 37,38
o Joint Promisor , Joint Promises
o Joint Promises
o Joint and Several Promises
o Devolution of joint liabilities
o Devolution of Joint Rights
o Appropriation of payment ( Rule in Clayton)
• By Agreement of consent 62,63
o Novation
o Recession
o Remission
o Alteration
o Waiver
o Merger
o Accord and Satisfaction
• By impossibility ( Doctrine of Frustration) 53
o Death of subject matter of contract
o Death or Disablement of Parties
o Subsequent illegality
o Declaration war
o No occurrence state of thing or particular event
• By lapse of Time
• By Operation of Law
• By Breach of contract
o Actual Breach
o Anticipatory Breach
REMEDIES OF BREACH OF CONTRACT
• Rescission of Contract
• Damages
o General
o Special
o Punitive, Exemplary vindictive
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o Nominal
Rule in Hadley v Baxendale 73
• Quantum Merit
• Specific performance
• Injuction
o Perpetual
o Temporary
o Mandatory
o Prohibition
SPECIFIC RELIEF ACT
• Recovery of Procession of Property ( Immovable and Movable) 5-8
• Specific Performance 9-25
• Rectification of Instrument 26
• Recission of Contracts 27030
• Cancellation of Instruments 31-33
• Declaratory Decrees 34-35
• Preventive Relief by way of Injuction
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