Contract Contents Manupatra

CHAPTER I 2
PRELIMINARY
• 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 6

contract?
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 8

the relevant case laws.
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 12

Authority to Accept
Q. Discuss the mode of communication of acceptance and whether 12

acceptance may inferred from conduct of parties.
• Acceptance may also be Inferred from the Conduct of Parties 12
20-11-2019 (Page 1 of 12) www.manupatra.com Indian Institute of Technology Kharagpur

• 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'? 25

Explain with the help of case law.
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 27

Promise
• Adequacy of Consideration 28
• Consideration must be Real 28

• Exception to Consideration 28
Q. An agreement without consideration is void? Explain with suitable 28

examples.
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? 32

Discuss briefly.
• 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 33

interest of minor.
• 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. W h e n a unsound mind person is capable to enter into the 37

contract.
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 39
case.
2. Unlawful Detaining of Property 39
Q. Define undue influence and explain the essential elements with 40

suitable examples.
• 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. A n y Act or Omission which the Law Declares or Fraudulent 44

[Section 17(5)]
Q. Define misrepresentation with essential elements with the help of 44

examples and relevant case laws.
• Essential Elements 44
Q. Under which section and in which cases agreements are to be 44

prove void?
• Mistake of Fact and Mistake of Law 45
Q. What is the difference between Mistake of fact and mistake in 45

law?
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 48

declared void"?

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 55

section 27? Explain with the help of examples.
• Exceptions Recognised through Judicial Interpretation 55
Q. Explain the circumstances in which agreements are void in 56

restraint of legal proceedings.
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 58

illustrations.
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
Â¨ Contingent Contracts 60
Q. Define contingent contract: what are the essentials? Define with 60

the help of examples.
• Essentials 60
Â¨ 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 63

wholly.
Â¨ 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
Â¨ Performance of reciprocal promises 68
Q. Define reciprocal promises. 68
• Effect of such Failure when Time is not Essential 70
• Effec t of Acceptance of Performance at time other than that 70

Agreed Upon
Q. Define the cases in which time is essence of contract. 70
Â¨ 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 73

suitable case laws.
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. Disc uss the status or position of government in doctrine of 74

frustration.
6. Change in Law 75
Q. Explain the rule laid down in the case of Shyam Biri Works Pvt. 75
Ltd.
Q. What promises are said to be reciprocal or alternative? Explain 75

with the help of suitable examples.
Â¨ 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
Â¨ O f Certain relations resembling those created by contract 82

(Sections 68-72)
Q. Define quasi-contract and what is the legal obligation of such 82

contracts.
Q. Explain the facts and principle laid down in Sinclair v. Brougham. 82
1. Cla im for Necessaries Supplied to a Person Incompetent to 83

Contract
Q. Explain section 68 with the help of illustrations and suitable case 83

laws.
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 85

delivered by mistake or coercion.
Â¨ Of the consequences of breach of contract 86
Q. Explain the remedies which are available to injured party or breach 86

of contract.
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 86

Created by Contract
Q. Define liquidated damages. 86
Q. In what circumstances compensation is awarded to injured party 86

for failure to discharge obligations? Explain with the help of
illustrations.
• Remoteness of Damages 88
Q. Define Remoteness of damages. 88
Q. Whether remote damages are subject to compensation to injured 88

party?
Q. Explain section 75. 89
Part II
Specific Contracts (Sections 124-238
Chapter IX
Contract of Indemnity and Guarantee
Â¨ 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
Â¨ Contract of Guarantee (Sections 126-147) 94
Q. Define the term 'contract of guarantee', 'surety', 'principal debtor', 94

'creditor'.
Q. W h a t consideration is required for formation of contract of 95

guarantee.
Q. Define continuing guarantee and also explain the revocation of 96

continuing guarantee.
Q. Discuss in brief in which surety is discharge for performance of 98

contract?
Q. How surety can be discharged on the compounding giving extra 100

time to the debtor principal?
Q. Discuss the liabilities of co-surety. 101
Q. When a guarantee is proved to be invalid? 104
Â¨ Distinction between a Contract of Guarantee and a Contract of 106

Indemnity
Q. Discuss the point of distinction between a contract of guarantee 106

and contract of indemnity.
CHAPTER X
Of Bailment (Sections 148-171)
Q. Explain the definition of Bailment, bailor and bailee under section 108
148.
Q. What are the essential elements of a valid bailment? Explain with 109
the help of examples and case-laws.
Q. How delivery is made to bailee by bailor? 110
Q. What are the legal obligations imposed by law an bailor and 110
bailee?

Q. W h a t are the grounds on which contract of bailment is 111
terminated?
Q. What are the effects of mixture with or without consent bailor's 112
consent?
Q. Define lien. What are the kinds of lien? Explain with the help of 116
examples.
Q. Define General lien of bankers, factors, wharfingers, attorneys and 118

policy-brokers.
Â¨ Distinction between Particular & General Lien 120
Q. Explain the points of distinction between particular and general 120

lien.
Â¨ 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
Â¨ Suits by Bailees or Bailors against Wrong-doers 126
CHAPTER XI
AGENCY (Sections 182-238)
Â¨ 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
Â¨ Kinds of Agents 132
Q. Explain in brief kinds of agents. 132
Q. Explain in brief Del credere agent. 133
Â¨ 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 134
acts of sub-agent?
Â¨ Ratification (sections 196-200) 135
Q. De f i n e ratification and what are factors responsible for 135

ratification.
Â¨ Revocation of Authority (Sections 201-210) 138
Q. When an agent can be terminated and what are the modes of 138
revocation?
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
Â¨ 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
Â¨ Principal's duty to agent 147
Q. What are the principal's duties to agent? Explain. 147
Â¨ Effect of Agency on Contracts with Third Persons 149
Q. H o w can agent's contract be enforced and what are the 149

consequences thereof?
PART II
The Specific Relief Act, 1963
Â¨ Introduction 154
PART I 155
Preliminary
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 158

immovable property?
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 164
enforceable?
Q. Explain the specific performance in connection of trust. 166
Q. Whether it is possible for the specific performance of part of 167

contract?
Q. What are the rights of purchaser or lessee against the other with 168
no title or imperfect title?
Q. Explain in brief, the contracts which cannot be specifically 169

enforced by court of law.
Q. Explain the cases. In which who can obtain the specific 171
performance?
Q. Explain the parties who are barred to claim relief? 172
Q. Explain the rule laid down in section 17 with illustrations. 174
Q. Disc uss specific performance of a contract against whom 175

enforced?
Â¨ 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 178

with examples.
Q. What are the powers of the court to grant relief? Explain with 179
relevant case laws.
Q. Whet her the liquidation of damages is a bar to specific 180

performance? Explain.
Â¨ 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. W h e n an instrument can be rectified and who may claims 181

rectification?
• 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 184

refused?
Q. Explain the rule laid down in section 28 with the help of suitable 185
case-laws.
Q. Define Alternative prayer. 186
CHAPTER V
Cancellation of instrument (Sections 31-33)
Q. I n what circumstances an instrument may be ordered to be 188

cancelled? Explain with the help of suitable case-laws and
illustrations.
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 192
discreationary power?
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. Disc uss the factors in which courts may grant perpetual 197
injunction.
Q. Define Mandatory injunction. Explain illustrations also. 199
Q. What are the cases in which injunction can be refused? 200
• Table of Cases 203
© Universal law Publishing Co.

Contract Contents Manupatra

Uploaded by

Copyright:

Available Formats

Contract Contents Manupatra

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Contract Contents Manupatra

Uploaded by

Copyright:

Available Formats

CHAPTER I 2

• Agreement and Contract 2

Q. What are the basic essential of valid contract? 2

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 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 8

Q. Explain the facts of Harvey v. Facie and principle laid down. 8

Q. How and when proposal is revoked? Explain with examples. 9

Q. Discuss the facts and principle laid down in "Felthouse v. Bindley". 11

• Communication of Acceptance must be by a Person who has 12

Q. Discuss the mode of communication of acceptance and whether 12

• Acceptance may also be Inferred from the Conduct of Parties 12

20-11-2019 (Page 1 of 12) www.manupatra.com Indian Institute of Technology Kharagpur

• 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

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'? 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 27

• Consideration must be Real 28

20-11-2019 (Page 2 of 12) www.manupatra.com Indian Institute of Technology Kharagpur

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