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

of 6 Contract Act - Semester 1 Kerala University 2017-2020

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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



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



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



• 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



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



indian contract act 1872 sec 2(h) [2(c)], consideration [2

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