CHAPTER I

PRELIMINARY

2

Agreement and Contract

2

Essentials of Contract

2

Q.

What are the basic essential of valid contract?

2

CHAPTER II

PROPOSAL OR OFFER

Q.

What is an offer and state also essentials of offer?

4

Essential of a Valid Proposal

4

1.

The Proposal must be Communicated

4

Q.

What principle laid down in section 3?

5

Q.

What principle laid down in the case of Lalman Shukla?

5

Q.

Explain with the example when the communication is complete.

6

2.

Proposal must be certain

6

3.

Intention to Create Legal Relationship

6

Q.

Whether it is necessary to create legal relationship for a valid contract?

6

Q.

Explain the facts of Balfour v. Balfour case.

6

4.

Offer may be General or Specific

7

Q.

Discuss the facts of Lalman Shukla v. Gauri Dutt case.

7

Q.

Laid down the principle in Carlill v. Carbolic case.

7

Offer and Invitation to Offer

8

Q.

What is invitation to offer and how it differs from offer? Discuss the relevant case laws.

8

Q.

Explain the facts of Harvey v. Facie and principle laid down.

8

Revocation of Proposal

9

Q.

How and when proposal is revoked? Explain with examples.

9

CHAPTER III

ACCEPTANCE

Q.

Discuss the facts and principle laid down in “Felthouse v. Bindley”.

11

Communication of Acceptance must be by a Person who has Authority to Accept

12

Q.

Discuss the mode of communication of acceptance and whether acceptance may inferred from conduct of parties.

12

Acceptance may also be Inferred from the Conduct of Parties

12

Implied Acceptance

13

When is Communication of Acceptance Completes

13

Q.

Explain the principle laid down in section 4 with relevant examples.

14

Q.

How the acceptance in complete by Telex or Telephone?

15

Q.

What are the essentials of a valid acceptance?

16

Essentials of a Valid Acceptance

16

1.

Acceptance should be Communicated

16

2.

Acceptance should be Absolute and Unqualified

17

Q.

Discuss the facts of Hyde v. Wrench.

17

3.

Acceptance should be Expressed in Usual and Prescribed Manner

18

4.

Acceptance should be made while the Offer is Still Subsisting

19

Revocation of Acceptance

19

CHAPTER IV

CONSIDERATION

Q.

What is consideration? Explain with the examples and case laws.

21

Essentials of the Consideration

22

1.

At the Desire of the Promisor

22

Q.

What are the essentials of the consideration?

22

Q.

Discuss the facts of case ‘Durgaprasad v. Baldeo.’

22

2.

The Promisee or any Other Person

23

Q.

What principle laid down in Kedarnath v. Gourie Mohammad?

23

Q.

What are the facts in Dulton v. Poole?

23

Q.

Define ‘Privity of Contract’ whether it is applicable in India?

24

Doctrine of Privity of Contract of India

24

Exceptions to the Doctrine of Privity of Contract

25

Q.

What are the exceptions to the doctrine of ‘Privity of Contract’? Explain with the help of case law.

25

3.

Has Done or Abstained from Doing Something

27

4.

Does or Abstains from Doing Something

27

5.

Promises to do or to Abstain from Doing Something

27

6.

Such Act or Abstinence or Promise is Called Consideration for the Promise

27

Adequacy of Consideration

28

Consideration must be Real

28

Exception to Consideration

28

Q.

An agreement without consideration is void? Explain with suitable examples.

28

1.

Natural Love and Affection

29

Q.

Define the essentials laid down in section 25(1)

29

2.

Promise to Compensate for Something Done Voluntarily

30

3.

Promise to Pay a Time-barred Debts

31

4.

Promise may Dispense with or Remit Performance

31

5.

Consideration not Necessary

31

CHAPTER V

CAPACITY TO CONTRACT

Q.

Who is minor? Whether a minor is competent to make a contract? Discuss briefly.

32

Who is a Minor

32

Nature of Minors Contract

32

Q.

Discuss the principle laid down in Mohori Bibi v. Dharmodas Ghose.

32

Q.

Explain the status of contract if it is made by guardian in the interest of minor.

33

Effects of Minor’s Agreement

34

1.

Estoppel against a Minor

34

Q.

Discuss the rule defined in the case of Khan Gul v. Lakha Singh.

34

2.

Action in Contract cannot be Converted into an Action in Tort

34

3.

Doctrine of Restitution

35

Q.

Define doctrine of restitution with the help of case laws.

35

Beneficial Contracts

36

Contract of Marriage

36

Contracts of Apprenticeship

36

Q.

Explain the facts and principle in Roberts v. Gray case.

36

Ratification

36

Q.

Whether a minor’s contract is subject to ratification?

36

Necessaries Supplied to Minor: Section 68

37

Q.

What things are come under the purview of “necessaries”?

37

What is Sound Mind for the Purpose of Contracting: Section 12

37

Q.

When a unsound mind person is capable to enter into the contract.

37

CHAPTER VI

FREE CONSENT

Q.

When a consent is said to be free?

38

Q.

Define coercion and essential elements of coercion.

38

1.

Act Forbidden by IPC

39

Q.

Which acts are forbidden by IPC? Explain with the help of relevant case.

39

2.

Unlawful Detaining of Property

39

Q.

Define undue influence and explain the essential elements with suitable examples.

40

Unconscionable Transaction

41

Q.

What elements are included in the definition of fraud?

42

Q.

Explain the principle laid down in the case of Derry v. Peek.

42

1.

False Statement of True Facts

43

2.

Active Concealment of Facts [Section 17(2)]

43

3.

Promise without Intention to Perform it [Section 17(3)]

43

4.

Any Other Act Fitted to Deceive [Section 17(4)]

43

5.

Any Act or Omission which the Law Declares or Fraudulent [Section 17(5)]

44

Q.

Define misrepresentation with essential elements with the help of examples and relevant case laws.

44

Essential Elements

44

Q.

Under which section and in which cases agreements are to be prove void?

44

Mistake of Fact and Mistake of Law

45

Q.

What is the difference between Mistake of fact and mistake in law?

45

Q.

Define mistake of fact under sections 20 and 22.

45

Fact Eessential to the Agreement

46

Q.

Explain the rule laid down by the Supreme Court.

47

CHAPTER VII

LEGALITY OF OBJECT (SECTION 23)

Q.

“Explain the cases in which the agreement is unlawful thereby declared void”?

48

Q.

What is the distinction between illegal and void contracts?

49

1.

Forbidden by Law

49

Q.

Explain the facts of Pearce v. Brooks.

49

2.

Defeat the Provisions of any Law

50

3.

Fraudulent

50

4.

Injury to Person or Property of Another

50

5.

Immoral or Opposed to Public Policy

51

Heads of Public Policy

52

Q.

Define the heads of public policy.

52

CHAPTER VIII

VOID AGREEMENTS

Q.

What are void agreements? Explain in brief.

53

Q.

Explain section 27 with the relevant case law.

54

Q.

What are exceptions defined in section 27?

55

Provisions in Partnership Act

55

Q.

What are the provisions in partnership which relate with the section 27? Explain with the help of examples.

55

Exceptions Recognised through Judicial Interpretation

55

Q.

Explain the circumstances in which agreements are void in restraint of legal proceedings.

56

Q.

Define uncertainty with the help of illustrations.

57

Q.

Define wager. Whether wager is void?

58

Q.

Essentials of a wagering contract. Explain with the help of illustrations.

58

Q.

Define lotteries.

59

Effects of Wagering Contracts

59

Q.

What are the effects of wagering contracts?

59

Exception to section 30

59

Q.

What are the exceptions of wagering contracts?

59

¨

Contingent Contracts

60

Q.

Define contingent contract: what are the essentials? Define with the help of examples.

60

Essentials

60

¨

Performance of contract

62

Q.

What is the obligation of party to contract?

62

Q.

Define the tender of performance.

62

Q.

What are the effects of refusal of party? Its perform promise wholly.

63

¨

Performance of joint promises

64

Each Promisor may Compel Contribution

65

Sharing of Loss by Default in Contribution

65

Time and place for performance

66

Q.

Define the time and place for performance of contract.

66

¨

Performance of reciprocal promises

68

Q.

Define reciprocal promises.

68

Effect of such Failure when Time is not Essential

70

Effect of Acceptance of Performance at time other than that Agreed Upon

70

Q.

Define the cases in which time is essence of contract.

70

¨

Discharge of contract (Sections 56-58)

72

Q.

Explain the doctrine of impossibility.

72

Q.

Discuss the case in which damages are awarded to injured party.

72

Q.

What are the grounds of doctrine of frustrations? Explain the suitable case laws.

73

1.

Destruction of Subject-matter

73

Q.

Explain the facts of Taylor v. Coldwell.

73

2.

Change of Circumstances

73

3.

Non-occurrence of Contemplated Event

74

4.

Death or Incapacity of Party

74

Q.

Discuss the principle laid down in case of Robinson v. Davison.

74

5.

Government, Administrative, Legislative Intervention

74

Q.

Discuss the status or position of government in doctrine of frustration.

74

6.

Change in Law

75

Q.

Explain the rule laid down in the case of Shyam Biri Works Pvt. Ltd.

75

Q.

What promises are said to be reciprocal or alternative? Explain with the help of suitable examples.

75

¨

Appropriation of contracts (Sections 59, 60, 61)

76

Q.

Discuss the “appropriation of contracts”

76

Contracts which need not be Performed

77

Q.

Discuss in brief the contracts which need not to be performed.

77

Q.

Explain the term ‘novation’ with the help of case laws.

78

1.

Novation in the Terms of the Contract

78

2.

Novation by Change in the Parties to the Contract

78

Q.

What are the consequences of the rescission of a valid contract?

79

¨

Of Certain relations resembling those created by contract (Sections 68-72)

82

Q.

Define quasi-contract and what is the legal obligation of such contracts.

82

Q.

Explain the facts and principle laid down in Sinclair v. Brougham.

82

1.

Claim for Necessaries Supplied to a Person Incompetent to Contract

83

Q.

Explain section 68 with the help of illustrations and suitable case laws.

83

2.

Obligation of Person Enjoying Benefit of Non-gratuitous Act

84

Q.

What are the responsibility of finder of goods.

84

Q.

Explain the liability of person to whom money paid as thing delivered by mistake or coercion.

85

¨

Of the consequences of breach of contract

86

Q.

Explain the remedies which are available to injured party or breach of contract.

86

1.

Damages

86

2.

Quantum Meruit

86

Q.

Define Quantum meruit.

86

3.

Specific Performance and Injunction

86

Compensation for Failure to Discharge Obligation Resembling those Created by Contract

86

Q.

Define liquidated damages.

86

Q.

In what circumstances compensation is awarded to injured party for failure to discharge obligations? Explain with the help of illustrations.

86

Remoteness of Damages

88

Q.

Define Remoteness of damages.

88

Q.

Whether remote damages are subject to compensation to injured party?

88

Q.

Explain section 75.

89

Part II

Specific Contracts (Sections 124-238

Chapter IX

Contract of Indemnity and Guarantee

¨

Contract of Indemnity

91

Q.

Explain the facts of Adamson v. Jarvis.

91

Q.

Define contract of indemnity explained in section 124.

92

Q.

Explain the rights which are available to indemnity-holder.

93

¨

Contract of Guarantee (Sections 126-147)

94

Q.

Define the term ‘contract of guarantee’, ‘surety’, ‘principal debtor’, ‘creditor’.

94

Q.

What consideration is required for formation of contract of guarantee.

95

Q.

Define continuing guarantee and also explain the revocation of continuing guarantee.

96

Q.

Discuss in brief in which surety is discharge for performance of contract?

98

Q.

How surety can be discharged on the compounding giving extra time to the debtor principal?

100

Q.

Discuss the liabilities of co-surety.

101

Q.

When a guarantee is proved to be invalid?

104

¨

Distinction between a Contract of Guarantee and a Contract of Indemnity

106

Q.

Discuss the point of distinction between a contract of guarantee and contract of indemnity.

106

CHAPTER X

Of Bailment (Sections 148-171)

Q.

Explain the definition of Bailment, bailor and bailee under section 148.

108

Q.

What are the essential elements of a valid bailment? Explain with the help of examples and case-laws.

109

Q.

How delivery is made to bailee by bailor?

110

Q.

What are the legal obligations imposed by law an bailor and bailee?

110

Q.

What are the grounds on which contract of bailment is terminated?

111

Q.

What are the effects of mixture with or without consent bailor’s consent?

112

Q.

Define lien. What are the kinds of lien? Explain with the help of examples.

116

Q.

Define General lien of bankers, factors, wharfingers, attorneys and policy-brokers.

118

¨

Distinction between Particular & General Lien

120

Q.

Explain the points of distinction between particular and general lien.

120

¨

Pledge (Sections 172-181)

121

Q.

Define pledge pawnor and pawnee

121

Q.

What are the essentials of pledge? Explain in brief.

121

Q.

Define the right of pawnee to retain the goods.

122

Q.

Explain in brief the rights of pawnee.

123

Q.

Define merchantile agent and explain also the pledge by him?

124

¨

Suits by Bailees or Bailors against Wrong-doers

126

CHAPTER XI

AGENCY (Sections 182-238)

¨

Appointment and Authority of Agents

127

Q.

Define agency.

127

Q.

Define the capacity of person who may employ an agent.

128

Q.

Discuss the competency of agent.

129

Q.

What consideration is required to form an agency?

129

Q.

Discuss the extent of agent’s authority.

131

¨

Kinds of Agents

132

Q.

Explain in brief kinds of agents.

132

Q.

Explain in brief Del credere agent.

133

¨

Sub-agents (Sections 190-195)

133

Q.

Who may be sub-agent? Explain.

133

Q.

Explain—Who can appoint sub-agent and who is responsible for the acts of sub-agent?

134

¨

Ratification (sections 196-200)

135

Q.

Define ratification and what are factors responsible for ratification.

135

¨

Revocation of Authority (Sections 201-210)

138

Q.

When an agent can be terminated and what are the modes of revocation?

138

Q.

Discuss the power of principal to revoke the agent’s authority.

139

Q.

When does agent’s authority terminates take effect?

140

Q.

Explain with the help of illustrations.

141

Q.

When the sub-agent’s terminates.

142

¨

Agent’s Duty to Principal (Sections 211-221)

142

Q.

What are the duties of agent in conducting principal’s business?

142

Q.

Explain the rights of principal in agency.

144

Q.

Define Agent’s lien on principal’s property.

147

Q.

What are essentials for lien?

147

¨

Principal’s duty to agent

147

Q.

What are the principal’s duties to agent? Explain.

147

¨

Effect of Agency on Contracts with Third Persons

149

Q.

How can agent’s contract be enforced and what are the consequences thereof?

149

PART II

The Specific Relief Act, 1963

¨

Introduction

154

PART I

Preliminary

155

PART II

SPECIFIC RELIEF

CHAPTER I

RECOVERING POSSESSION OF PROPERTY (Sections 5-8)

Q.

Define the manner for recovery of specific immovable property.

157

Q.

What are the essential elements to sue or person dispossessed of immovable property?

158

Q.

Explain the principle laid down in section 7.

159

Q.

Distinguished section 7 with section 8.

162

CHAPTER II

SPECIFIC PERFORMANCE OF CONTRACT (Sections 9-25)

Q.

Define specific performance.

163

Q.

What are the cases in which specific performance of contract enforceable?

164

Q.

Explain the specific performance in connection of trust.

166

Q.

Whether it is possible for the specific performance of part of contract?

167

Q.

What are the rights of purchaser or lessee against the other with no title or imperfect title?

168

Q.

Explain in brief, the contracts which cannot be specifically enforced by court of law.

169

Q.

Explain the cases. In which who can obtain the specific performance?

171

Q.

Explain the parties who are barred to claim relief?

172

Q.

Explain the rule laid down in section 17 with illustrations.

174

Q.

Discuss specific performance of a contract against whom enforced?

175

¨

Discretion and powers of court

177

Q.

What are the discreation and powers of court?

177

Q.

What are the powers of court to award compensation? Explain with examples.

178

Q.

What are the powers of the court to grant relief? Explain with relevant case laws.

179

Q.

Whether the liquidation of damages is a bar to specific performance? Explain.

180

¨

Enforcement of awards and direction to execute settlements

180

Q.

How can be award for specific enforcement enforced.

180

CHAPTER III

Rectification of Instruments

Q.

When an instrument can be rectified and who may claims rectification?

181

Who may Claim Rectification section 26(1)

182

Discretion of the Court in Granting Rectification section 26(2)

183

Enforcement of Rectified Instrument section 26(3) & (4)

183

Mistake

183

CHAPTER IV

Rescission of contracts (Sections 27-30)

Q.

Discuss in brief the cases where rescission may be adjudged or refused?

184

Q.

Explain the rule laid down in section 28 with the help of suitable case-laws.

185

Q.

Define Alternative prayer.

186

CHAPTER V

Cancellation of instrument (Sections 31-33)

Q.

In what circumstances an instrument may be ordered to be cancelled? Explain with the help of suitable case-laws and illustrations.

188

Q.

Discuss the facts of Dayawati v. Madanlal Verma.

189

Q.

Explain the provision defined in section 33.

189

CHAPTER VI

Declaratory Decrees (Sections 34, 35)

Q.

What are the declaratory decrees and how the court can use his discreationary power?

192

Q.

What are the effects of declaration in decrees?

194

CHAPTER VII

Injunctions Generally (Sections 36-37)

Q.

Define injunction.

195

Characteristics

195

Injunction will not be Issued in Cases

195

Q.

In what cases the injunction is not issued?

195

Q.

What is preventive relief? Give examples also.

196

Q.

What are the kinds of injunctions?

196

CHAPTER VIII

Perpetual injunctions (Sections 38-42)

Q.

Discuss the factors in which courts may grant perpetual injunction.

197

Q.

Define Mandatory injunction. Explain illustrations also.

199

Q.

What are the cases in which injunction can be refused?

200

• 

Table of Cases

203

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