Law of Contracts

Solapur University · LL.B. Semester 1 · CC-I

Unit 1 — General Principles of Law of Contract

1.1 History and nature of contractual obligations · 1.2 Agreement and Contract: definition, elements and kinds. · 1.3 Proposal and acceptance - their various forms, essential elements. · Communication and revocation - proposal and invitations for proposal - floating offers –tenders. · 1.4 Consideration- its need, meaning, kinds, essential element- nudumpactum- privity of contract and of consideration - its exceptions- adequacy of consideration - present, past and adequate consideration - evaluation of the doctrine of consideration. · 1.5 Capacity of contract - meaning -incapacity arising out of status and mental defect - minor's agreements - definitions of 'minor' -accessories supplied to a minor - agreements beneficial and detrimental to a minor –affirmation -restitution incases of minor's agreements -fraud by a minor -agreements made on behalf of a minor -minor's agreements and estoppel - evaluation of the law relating to minor's agreements -other illustrations of incapacity to contract. · 1.6 Free consent-Its need and definition-factors vitiating free consent · 1.6.1 Coercion – definition -essential elements -duress and coercion -various illustrations of coercion -Doctrine of economic duress -effect of coercion. · 1.6.2 Undue influence –definition -essential elements -between which parties can it exist? Who is to prove it? Illustrations of undue influence -Independent advice- pardahnashin women -unconscionable bargains -effect of undue influence. · 1.6.3 Misrepresentation - definition-misrepresentation of Law and of fact -their effects and illustration. · 1.6.4 Fraud –definition -essential elements suggestiofalsi- supperesiovery -when does silence amount to fraud? Active concealment of truth -importance of intention · 1.6.5 Mistake –definition –kinds -fundamental error -mistake of Law and of fact- their effects - When does a mistake vitiate free consent and when does it not vitiate free consent? · 1.7 Legality of objects: - · 1.7.1 Void agreements- Lawful and unlawful considerations, and objects - void, voidable, illegal and unlawful agreements and their effects. · 1.7.2 Unlawful considerations and objects: · 1.7.2.l Forbidden by law · 1.7.2.2 Defeating the provision of any law · 1.7.2.3 Fraudulent · 1.7.2.4 Injurious to person or property · 1.7.2.5 Immoral · 1.7.2.6 Against public policy · 1.7.3 Void Agreements · 1.7.3.1 Agreements without consideration · 1.7.3.2 Agreements in restraint of marriage · 1.7.3.3 Agreements in restraint of trade-its exceptions-Sale of goodwill, · Section -11 restrictions, under the Partnership Act, trade combinations, exclusivedealing agreements, restraints on employees under agreements of service. · 1.7.3.4 Agreements in restraint of legal proceedings-its exceptions. · 1.7.3.5 Uncertain agreements. · 1.7.3.6 Wagering agreement -its exceptions. · 1.8 Discharge of contract and its various modes. · 1.8.1 By performance - conditions of valid tender of performance - How? By Whom? · Where? When? In what manner? Performance of reciprocal promises - time as essence of contract. · 1.8.2 By breach – anticipatory breach and present breach. · 1.8.3 Impossibility of performance - specific grounds of frustration- application to leases – theories of frustration-effect of frustration– frustration and restitution. · 1.8.4 By period of limitation. · 1.8.5 By agreement - rescission and alteration - their effect - remission andwaiver of performance-extension of time accord and satisfaction. · 1.9 Quasi Contracts or certain relations resembling those created by contract · 1.10 Remedies in contractual relations: · 1.10.1 Damages-kinds-remoteness of damages- ascertainment of damages. · 1.10.2 Injunction-When granted and when refused-Why? · 1.10.3 Refund and restitution · 1.10.4 Specific performance - when? Why?

Unit 2 — Government as a Contracting Party

Constitutional provisions -government power to contract -procedural requirements- kinds of government contracts their usual clauses- performance of such contracts - settlements of disputes and remedies.

Unit 3 — Standard Form Contract

Nature, advantages -unilateral character, principles of protection against the possibility of exploitation - judicial approach to such contracts -exemption clauses- clash between two standard form contracts -Law commissions of India's views

Unit 4 — Strategies and constraints to enforce Contractual obligations

4.1 Judicial methods -redressal forum, remedies · 4.2 Other methods like arbitration, Lok Adalat, and other such non-formal methods. · 4.3 Systemic constraints in settling contractual disputes · 4.3.1 Court fees, service of summons, injunctions, delay.

Unit 5 — Specific Relief

5.1 Specific performance of contract · 5.1.1 Contract that can be specifically enforced · 5.1.2 Persons against whom specific enforcement can be ordered · 5.2 Rescission and cancellation · 5.3 Injunction · 5.3.1 Temporary · 5.3.2 Perpetual · 5.4 Declaratory orders · 5.5 Discretion and powers of court