Law of Contract I

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B.A.LL.B. (Hons.

) Semester-I

54. Tabassum Sultana v. State of UP, AIR 1997 All 177.

LAW OF CONTRACT-I
(GENERAL PRINCIPLE OF CONTRACT & SPECIFIC RELIEF)

(The entire syllabus is divided into five units. Ten questions shall be set in all with two
questions from each unit. The candidate shall be required to answer five questions in all
selecting one from each unit.)

Objective: Contract law provides the framework within which all commercial
transactions, from the smallest consumer purchase to the most complex business
deal, take place. The Indian Contract Act occupies the most important place in the
Commercial Law. Without contract Act, it would have been difficult to carry on
trade or any other business activity and in employment law. It is not only the
business community which is concerned with the Contract Act, but it affects
everybody. The objective of the Contract Law is to ensure that the rights and
obligations arising out of a contractual relation are honoured and that legal remedies
are made available to those who are affected. The course structure of Contract-I is
designed to acquaint students with the conceptual and operational parameters of
various general principles relating to conceptual and practical principles of rules for
formation of contract, performance and enforcement of contract remedies.

UNIT- I
INDIAN CONTRACT ACT, 1872

 General: Literal Concept-Utility and Purpose.


 Indian Contract Act, 1872: Scheme of the Act and its Salient Features-Definition
of Contract-Void Contract and Voidable Contract
 Formation of Contract: Offer-General and Specific Offer-Cross and Counter
Offer; Acceptance-Mode of Acceptance-Communication and Revocation of Offer
and Acceptance-Contract through Electronic Medium.
 Intention to Create Legal Relationship/Obligations

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FACULTY OF LAW

UNIT- II
INDIAN CONTRACT ACT, 1872

 Consideration: Definition and Essential Elements-Privity of Contract and Privity


of Consideration-Exceptions-Adequacy of Consideration-Past, Executed and
Executor Consideration.
 Capacity to Contract: Meaning-Incapacity arising out of Status & Mental Defects;
Nature of Minor’s Agreement-Effect of Minor’s Agreement as regard to Estoppel-
Liability, Restitution and Notification-Accessories Supplied to a Minor-
Agreements Beneficial and Detrimental to a Minor.
 Principle of Free Consent: Coercion-Undue Influence-Misrepresentation-Fraud-
Mistake; Unlawful Consideration and Object
 Void Agreement: Meaning-Agreement without Consideration-Agreement in
Restraint of Marriage-Agreement in Restraint of Trade-Agreement in Restraint of
Legal Proceedings-Unmeaning Agreement-Wagering Agreement

UNIT- III
INDIAN CONTRACT ACT, 1872
 Contingent Contract: Performance of Contingent Contract
 Discharge of Contract: Performance-Impossibility of Performance-Doctrine of
Frustration-By Agreement-By Breach-Anticipatory Breach-Breach during
Performance
 Appropriation of Payment
 Quasi-Contract
UNIT- IV
INDIAN CONTRACT ACT, 1872

 Damages
 Remoteness of Damages & Measures of Damages
 Penalty Clause

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B.A.LL.B. (Hons.) Semester-I

 Quantum Meruit
UNIT- V
SPECIFIC RELIEF ACT

 Specific Performance of Contract: Contract that can be Specifically Enforced,


Persons against whom Specific Enforcement can be ordered.
 Rescission and Cancellation
 Injunction: Temporary-Perpetual
 Declaratory Orders: Discretion and Power of the Court

Suggested Readings

1. Dr. Avtar Singh: Law of Contract & Specific Relief, Eastern Book Company,
Lucknow.
2. Dr. R.K. Bangia: Contract, Allahabad Law Agency, Allahabad.
3. H. K. Saharay: Dutt on Contract-The Indian Contract Act, 1872, Eastern Law House,
Kolkata.
4. G. H. Treitel: The Law of Contract, Sweet & Maxwell, London.
5. H. G. Beale and Joseph Chitty: Chitty on Contracts: General Principles, Sweet &
Maxwell, London.
6. J. Beatson, Andrew Burrows & John Cartwright: Anson's Law of Contract, Oxford
University Press, London.
7. M. Krishnan Nair: Indian Contract Law, Orient Longman, Hyderabad.
8. Michael P. Furmston: Cheshire, Fifoot & Furmston’s Law of Contract, Oxford
University Press, London.
9. N. C. Seddon, R. A. Bigwood & M. P. Ellinghaus: Cheshire and Fifoot-Law of
Contract, Butterworths, London.

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FACULTY OF LAW

10. Pollock & Mulla (revised & edited by Nilima Bhadbhade): Indian Contract Act,
1872, Lexis Nexis, Gurgaon.
11. T. S. Venkatesa Iyer: Lectures on Law of Contract, Asia Law House, Hyderabad.
12. Venkoba Rao (revised by S. C. Srivastava): Law of Agency, LexisNexis, Gurgaon.

Relevant Cases

1. Carlill v. Carbolic Smoke Ball Co., (1893) 1 QB 256.


2. Lalman Shukla v. Gauri Dutt, (1913) 11 All 486.
3. Balfour v. Balfour, (1919) 2 KB 571.
4. Weeks v. Tybald, (1605) 75 ER 982.
5. Harvey v. Facie, (1893) AC 552.
6. Powel v. Lee, (1908) 24 LTR 606.
7. Bhagwandas Govardhandas Kedia v. Girdhari Lal Parshotamdas & Co., AIR 1966 SC
543.
8. Dutton v. Poole, (1672) KB Lev 210.
9. Tweddle v. Atkinson, 30 LJ QB 218.
10. Durga Prasad v. Baldeo, (1880) 3 All 221.
11. Kedar Nath v. Gorie Mohamed (1886) 1 LR 14 Cal 614.
12. Chinnaya v. Ramayaa, (1882) 4 Mad 137.
13. Mohori Bibee v. Dharmodas Ghose, 30 Cal 539.
14. Khan Gul v. Lakha Singh, ILR (1928) 9 Lah 711.
15. Madhub Chandra v. Raj Coomar, (1874) XIV Bengal Law Rev. 76.
16. Nordenfelt v. Maxim Nordenfelt Gun & Ammunition Co., Ltd. (1894) AC 535.
17. Krell v. Henry, (1903) 2 KB 740 CA.
18. Satyabrata Ghose v. Mugneeram, AIR 1954 SC 44.
19. Hadley v. Baxendale, (1854) 9 Exch 341.
20. Simpson v. London North Rly. Co., (1876) QBD 274.
21. Victoria Laundry (Windsor) Ltd. v. Nowman Industries Ltd., (1949) KB 528.
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B.A.LL.B. (Hons.) Semester-I

22. Ardeshir H. Mama v. Flora Sassoon, IP 1928 PC 208.


23. Devender Singh v. Syed, AIR 1973 SC 2457.
24. Thomas v. Hanuman Prasad, AIR (1983) A 202.
25. American Cyanamid v. Ethican, (1975) 1 All ER 504.

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