Law of Contract – I

Savitribai Phule Pune University · LL.B. Semester 1 · LCC 0502

Unit 1 — Introduction & Formation of Contract:

1. Meaning, Nature and Scope of Contract · 2. Offer / Proposal: Definition, essential elements, Communication, Revocation, General/ Specific Offer, Invitation to Offer, Tenders and Auctions. · 3. Acceptance: Definition, essential elements, Communication, Revocation. · 4. Modes of Communication – Postal, Telephonic, Telex, E-mail and WhatsApp. · 5. Essential elements of a Valid Contract & Effect of Void, Voidable, Valid, Illegal, Unlawful Agreements · 6. Online Contracts and Standard & Printed Form of Contracts.

Unit 2 — Competency of Parties – Section 10 to 12 of ICA, 1872:

1. Age of majority under the Indian Majority Act 1875, Contracts with Minors, effect of contracting with a minor, the purpose of the law, liability for supply of necessaries: Section 68 of ICA, 1872. · 2. Soundness of mind for the purpose of making contracts, effect of unsoundness of mind on the contract. · 3. Legal disqualification – examples: Section 75 of the Patents Act, 1970, Section 75 of the Indian Forests Act, 1927, Section 130 of the Transfer of Property Act, 1882. · 4. Competency of prisoners in jail, married women, aliens, insolvents.

Unit 3 — Free Consent - Sections 13 to 22, 64, 65, 67 of ICA, 1872:

1. Consent and Free Consent. · 2. Coercion and its effect on the contract: Sections 15 and 19 of Indian Contract Act, 1872 · 3. Undue Influence and its effect on the contract, Pardanashin women unconscionable bargains: Sections 16 and 19A of Indian Contract Act, 1872. · 4. Misrepresentation and its effect on the contract: Sections 18 and 19 of Indian Contract Act, 1872 5. Fraud and its effect on the contract: Sections 17 and 19 of Indian Contract Act, 1872. · 6. Mistake, mutual and common mistake, unilateral mistake, mistake of law and fact, its effect on the contract: Sections 20 - 22 of ICA, Section 26 of SRA, 1963. · 7. Remedies available to the party whose consent is not free: rescission, restoration - Sections 19, 19A, 67, 64, 65 of ICA,1872, Loss of right of rescission - Sections 25 and 28 of SRA, 1963.

Unit 4 — Consideration - Sections 2(d) ICA, 1872:

1. Definitions, meaning, importance and essential elements of Consideration. · 2. Act, forbearance and promise · 3. Present, past and future consideration · 4. Adequacy of consideration and effect of inadequacy · 5. No consideration, no contract, and exceptions to the rule · 6. Doctrine of Privity of Contract and its exceptions.

Unit 5 — Void Agreements - Sections 23 – 30 of ICA, 1872:

1. Unlawful agreements, circumstances in which agreements enforced even if unlawful: Sections 23-24, 57-58 of ICA,1872, Section 27 of SRA, 1963 · 2. Void agreements: Restraint of marriage, trade and legal proceedings, uncertain agreements, wagering agreements: Sections 26 – 30 & 56 of ICA, 1872 · 3. Effect of void and of unlawful agreements

Unit 6 — Contingent Contracts and Quasi-Contracts:

1. Contingent contracts and their enforcement - Sections 31 – 36 of ICA, 1872: · a) Definition of contingent contract, contingent and absolute obligations · b) Effect of happening & non-happening of event · c) Enforcement of contingent contracts · 2. Quasi-contracts - Sections 68-72, 73(Para 3) of ICA, 1872: · a) Five kinds of quasi-contracts stated in the Act – Sections 68-72 of ICA, 1872 · b) Doctrine of Restitution · c) Effect of breach of quasi-contractual obligations

Unit 7 — Performance and Discharge of Contract:

1. Obligation to perform or offer to perform; who must perform, effect of death on personal contracts, rights and liabilities under a contract: Sections 37-41 of ICA, 1872 · 2. Devolution of Joint rights and liabilities: Sections 42-45 of ICA · 3. Time & Place of performance, right to terminate if time is of essence of contract: Sections 46- 50, 55 of ICA, 1872 · 4. Liability to pay interest for delay: under contract terms, under the Interest Act 1978 · 5. Performance of Reciprocal promises, effect of non-performance of one of reciprocal promises; unilateral and bilateral promises: Sections 51 - 54 of ICA, 1872 · 6. Appropriation of payments: Sections 59-61 of ICA, 1872. Discharge of a Contract: · 1. By performance; by offer of performance: Sections 38 of the ICA, 1872 · 2. By non-performance by one party: 54 of ICA, 1872 · 3. By breach of contract and rescission: Sections 39, 53, 55 of ICA, 1872 · 4. Doctrine of impossibility and its effect: Section 56 of ICA · 5. By agreement: novation, alteration and rescission: Section 62 of ICA, 1872 · 6. By act of promisee: dispensing, remission and waiver, extension of time, accord and satisfaction: Section 63 of ICA, 1872 · 7. Termination or discharge under contract provisions.

Unit 8 — Contract Remedies:

1. Remedies under Contract Law: · a) Compensation (damages) Section 73-74 of ICA, 1872: - General and special, substantial and nominal, aggravated and punitive, liquidated and unliquidated and rules as to remoteness of damages · b) Claim in quantum meruit. · 2. Remedies under Specific Relief Act, 1963: · a) Specific performance: · • Cases in which it can and cannot be granted- Sections 10 and 14 of SRA, 1963 · • Personal bars to relief - Section 16 of SRA, 1963 · • Discretionary relief - Section 20 of SRA, 1963 · • Who can claim specific performance - Section 15 of SRA, 1963 · • Against whom can specific performance be claimed - Section 19 of SRA, 1963 · • Claim for compensation and other reliefs in a suit for specific performance - Sections 21–24, 29 of SRA, 1963 · • Defenses in suits of specific performance - Section 9 of SRA, 1963 · • Rescission of a contract of which specific performance has been decreed - Section 28 of SRA, 1963 · b) Injunctions in suits relating to contract: · • Discretionary relief - Section 36 of SRA, 1963 · • Kinds - Temporary and perpetual, prohibitory and mandatory: Section 36- 37, 39 of SRA, 1963 · • When can injunction be granted? - Section 38(1) and (2) of the SRA, 1963 · • When will injunction not be granted? - Section 41 clauses (a), (b), (e), (g), (i), (j) of SRA, 1963 · • Injunction to enforce negative covenants - Section 42 of SRA, 1963 · • Claim for compensation in a suit for injunction. - Section 40 of SRA, 1963 · c) Rescission - Sections 27, 30 of SRA, 1963 · d) Rectification of instruments - Section 26 of SRA, 1963 · e) Cancellation of instruments - Sections 31, 33 of SRA, 1963.