Law of Contract-I

Syllabus: Law of Contract – I
Semester I
July-November 2018
Course teachers: Dr. (Mrs.) Balwinder Kaur , Mr. Vishal Dixit & Ms. Navita Agrawal
In day to day life every individual makes a variety of promises. Every promise gives rise
to an expectation in the minds of other party that, the promisor would perform certain obligation
and fulfill the promise towards him/her. However, all promises are not enforceable by law. Only
those promises which are meant for enforcing through law are termed as contracts. The law of
contract is a branch of law which deals with regulation of all types of promises which are meant
to be enforced through law. In India, the general principles of contract laws are codified under
the Indian Contract Act, 1872. Provisions of the Specific Relief Act, 1963 help fulfill the end
objective of the Indian Contract Act, 1872 and compliment it for ensuring its effective
implementation.
This course is designed to acquaint a student with the conceptual and operational
parameters of various general principles relating to contract law. It aims to equip the students
with the basics of contract law so as to enable them to deal effectively with the various disputes
related to contracts.
SYLLABUS
Module 1: Introduction
• Contract: Meaning, Nature and Types

• Historical Background of Indian Contract Laws
• Indian Contract Act, 1872
• Major Definitions under Indian Contract Act, 1872.
Module 2: Agreement (Ss. 2-9)
• Formation of an Agreement
• Intention to Create Legal Relationship
• Doctrine of Promissory Estoppel
• Standard Form Contracts or Contracts of Adhesion
• Proposal and Acceptance- Their various forms, Essential Elements
• Counter Offer
• Communication
• Revocation- Mode of Revocation of Offer
Module 3: Capacity to Contract (Ss.10, 11, 12, 64, 65, 68)
• What agreements are Contracts ( S.10 )

• Legal Disability to Enter into Contract
• Minors, Persons of Unsound Mind
• Effects of Minors Agreement
• Persons disqualified by Law
• Liability for Necessaries Supplied to the Minor
• Indian Contract Act, 1872, (Ss. 10 - 12, 64, 65, 68); Specific Relief Act, 1963, (S.33);
Indian Majority Act, 1875.
Module 4: Free Consent (Ss. 13 – 22)
• Consent – Definition
• Free Consent and Vitiating Elements
• Coercion
• Undue Influence
• Fraud
• Misrepresentation
• Difference in Fraud and Misrepresentation; and Damages under Section 75 of the Indian
Contract Act, 1872
• Mistake
• Effect on Contracts influenced by any factor Vitiating Free Consent
Module 5: Consideration (Ss. 23, 24 & 25)
• Meaning and Nature of Consideration - NudumPactum

• Doctrine of Privity of Contract and of Consideration- Its Exceptions
• Exceptions of consideration
• Adequacy of Consideration: Present, Past and Adequate Consideration
• Unlawful Consideration and its Effect.
• Indian Contract Act, 1872: Sections 2(d), 2(f), 23 and 25
Module 6: Limitations on Freedom of Contract (Ss. 23, 26 – 31), Quasi – Contracts and
Unjust Enrichment (Ss 68 – 72)
• Legality of Object
• Void and Voidable Agreements
• Agreements against Public Policy
• Agreements with Unlawful Consideration
• Agreements without Consideration
• Agreements in Restraint of Marriage
• Agreements in Restraint of Trade
• Agreements in Restraint of Legal Proceedings
• Ambiguous and Uncertain Agreements
• WageringAgreements – Its exceptions
• Contingent Contracts
• Doctrine of Unjust Enrichment
• Concept and Classification of Quasi Contracts
Module 7: Discharge of a Contract (Ss. 37 – 67) and Remedies for the Breach Thereof
(Ss. 73, 74 & 75)
• By Performance
• Performance by Joint Promisors
• Discharge by Novation - Remission
• Accord and Satisfaction
• Clayton’s Rule of Appropriation of Payments
• Discharge by Impossibility of Performance - Doctrine of Frustration
• Discharge by Breach - Anticipatory Breach - Actual breach
• Doctrine of Quantum Meriut
Module 8:
• Damages
• Types of Damages
• Remoteness of damages
• Ascertainment of Damages
Module 9: Specific Relief Act, 1963 (Part I) / Recovering Possession of Property and
the Specific Performance of Contracts
• Recovering possession of property (Sec.- 5 to 8)

• Specific Performance: Ss. 9 – 24 of Specific Relief Act, 1965
Module 10: Specific Relief Act, 1963 (Part II)
• Injunctions: Ss. 36 – 41 of Specific Relief Act, 1965

• Declaratory Decrees (Sec.- 34 to 35)
• Preventive Relief (Sec.- 36 to 43)
Suggested References
1. NilimaBhadbhade (ed.), Mulla, Indian Contract Act and Specific Reliefs, Butterworth’s
India, New Delhi, Vol. I & II, (12th Edn.- 2001)
2. Chitty on Contracts, Sweet & Maxwell, London, Vol. I & II, (28thEdn. – 1999).
3. J. Beatson, Anson’s Law of Contract, Clarendon Press, Oxford, (28th Edn. -2002).
4. A. C. Moitra, Law of Contract and Specific Relief, Universal Law Publishing Co.(5th Edn.
-2005)
5. Dr. Avtar Singh, Law of Contract, EBC, Lucknow (9th Edn. – 2005)
6. M. Krishnan Nair, Law of Contracts, Orient Longman, Hyderabad, (5th Edn. – 1996)
Statutes
1. The Indian Contract Act, 1872
2. Specific Relief Act, 1963
3. Indian Majority Act, 1875.

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Syllabus: Law of Contract – I

• Contract: Meaning, Nature and Types

Module 2: Agreement (Ss. 2-9)

• What agreements are Contracts ( S.10 )

Module 4: Free Consent (Ss. 13 – 22)

Module 5: Consideration (Ss. 23, 24 & 25)

• Meaning and Nature of Consideration - NudumPactum

• Recovering possession of property (Sec.- 5 to 8)

Module 10: Specific Relief Act, 1963 (Part II)

• Injunctions: Ss. 36 – 41 of Specific Relief Act, 1965

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