SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCES

SAVEETHA SCHOOL OF LAW

SAVEETHA UNIVERSITY

SYLLABUS

SUBJECT NAME: LAW OF CONTRACT

SUBJECT CODE: LC02

OBJECTIVE

The objective of this course is to introduce to the students the Law now a days is a matter of
great intricacy. As such no sound business would attempt to solve important legal questions
effecting its business interest without expert legal advice. However there are certain elements
of law which standout as it were like, Finger – Post or Rather like danger signals, and
indicates difficulty is likely to arise and where legal advice is ascribable. As general
knowledge of some of more important legal principles and how they apply to certain problem
will certainly help a businessman in avoiding conflict with the persons with whom he comes
into business contacts.

COURSE INSTRUCTIONS:

1.   Students from first to final years are free to choose this law course.

2.   This Core Course is for 4 credit points (Minimum 65 Hours).

3.   The minimum attendance requirement for successful completion of the Course is

4.   The evaluation process of this course is of two segments. Every student has to
mandatorily complete the following components for completing the course.

The evaluation and assessment shall be as follows:

a)      Formative Assessment (100 Marks)

Formative Assessment includes the following components:

Monthly 1                                    –       10 Marks

Monthly 2                                    – 10 Marks

Model                                      – 20 Marks

Research Field Visit                    –  10 Marks

Research based Assignment         - 10 Marks

Publication                                           10 Marks

Seminar                                             - 5 Marks

Moot / Case Study                                 - 5 Marks

Co-curricular                                     - 20 Marks

Summative Assessment includes:

 Course end Written Examination – 70 Marks (2hrs 30 mins)

Viva - 30 marks

Minimum Prescribed Mark:

Every student has to secure a minimum of 35 marks out of 100 in the Formative
Assessment in order to take up the end examination. Every student shall secure a
minimum of 35 out of 100 in the Summative Assessment. In order to have cleared the
course every student should secure an aggregate of 100 marks out of the total 200. In
case of a student not securing the minimum prescribed mark, she/he has to redo the
course.

5. Using mobile phones, ear phones, mobile phone chargers, etc. during the class hours
is strictly prohibited.
6. Students interested in participating seminars, conference, moot courts, mock trials
and other co-curricular activities should get prior approval from the respective
Committees and inform to the concerned course faculty to get OD.

7. The attendance once entered in the portal cannot be altered.

8. It is mandatory to participate in Multi Moot-inter class Moot competition in every

SYLLABUS

UNIT 1:
History of Indian contract act- recent amendments - characteristic of a contract -Meaning and
section -2 (important definitions) .Definition of Contract, Types- based on validity, creation,
execution and liability Offer-, Kinds of Offer – Implied offer, General offer, Standing offer,
Cross offer, Counter offer, Invitation offer, Lapse of offer. Legal rules for valid offer-
Acceptance- Communication of offer and acceptance, Revocation of offer, Revocation of
acceptance. Consideration – Definition and Salient features of Consideration, Exceptions to
Consideration, Past, present and future Consideration, Privity of Contract and Exceptions,
Promissory Estoppel.

UNIT II:

Capacity to Contract ((Ss.10, 11, 12, 64, 65, 68)) – Indian Majority act and Ward &
Guardianship Act- RULE IN MOHIRIBIBI VS DHARMADAS GOSH – Effect of Minor’s
Agreement, Contract with Lunatics and persons disqualified by Law. Free Consent (S. 13 –
22) – Coercion, Undue influence, Misrepresentation- Misrepresentation Act of 1967, Fraud-
when silence amounts to fraud, and Mistake- mistake of law- Mistake of Indian law &
mistake of foreign law and mistake of fact- unilateral mistake, bilateral mistake- kinds &
mistake due to negligence of 3rd parties.

UNIT III:
Lawful object – Lawful consideration (Ss. 23, 24 & 25) - types of unlawful object and
consideration. Unlawful Agreements, Agreements opposed to public policy, Stifling
Prosecution, Agreement in Restraint of Trade,. Wagering agreements – Contingent
Contracts(section 30 to 36)– types, difference between- Void Agreements, Void and
Voidable Contracts. Difference between wagering and contingent contract.Doctrine of
restitution.

UNIT IV:
Discharge of Contract (Ss. 37 – 67) – By Performance, Tender of Performance, Performance
of Reciprocal Promises, Appropriation of Payments (Rule in Clayton’s Case) section- 59 to
61, Assignment of contract- Devolution of joint liability- reciprocal promises – kinds,
Performance by Joint promisors. Discharge of contract- Discharge by Impossibility,
Discharge by Agreement- by lapse of time- impossibility of events- breach of contract-
rescind the contract- Doctrine of Frustration
UNIT V:
Remedies for Breach (Ss. 73, 74 & 75) – rescind the contract- Measures and Damages, Kinds
of Damages, suit for injunction- suit for specific performance- Duty to mitigate, Quantum
Meruit, Earnest Money- motive foe claiming damages- Quasi – Contracts section 68 to 72 –
Theory of unjust enrichment, Necessaries supplied to Lunatic or Minor, Payment by an
interested person, Liability to pay for Non-gratuitous acts, finder of lost goods, Things
delivered by Mistake or Coercion. Government contracts- Electronic record-section 73&74.
UNIT VI:
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 (Part II) • Injunctions: Ss. 36 – 41 of
Specific Relief Act, 1965 • Declaratory Decrees (Sec.- 34 to 35) • Preventive Relief (Sec.- 36
to 43)

CASE LAWS
1. Balfour Vs Balfour
2. Bennet vs Bennet
3. Carlil vs Carbolic Smoke ball co,.
4. Cooper vs Philips
5. Cundey vs Lindensy
6. Derry vs Peek and others
7. Dutton vs Pole
8. Fisher vs Bell
9. Hadley vs Bexandile
 10. Harvey vs Facey
11. Inderjit Singh vs sunder Singh
12. Mohiribibi vs Darmodsh gosh
13. Philips vs brooks
14. Raja Singh vs chaicoo singh
15. Simpson vs Londen North western Railway
16. Devayens vs Noble
17. Boulton vs Jones
18. Foster vs Mackinnon
19. Mannu Singh vs Umadat singh
20. Lalman shukla vs Gauri Dutt

TEXT BOOK
Law of Contract and Specific Relief - Dr.Avtar Singh
Law of Contracts - M.Krishnan Nair
REFERENCE
Business Laws - N.D. Kapoor
Law of Contract - Anson
Law of Contract - Cheshire and Fifoot
Law of Contracts - Chitty
Specific Relief Act - 1963

Changes in the syllabus

● Added new topics in all the units