1.

Contract
A contract is like a promise between two people that creates a legal
obligation. It's more than just an invitation or friendly offer. Imagine it as a
handshake deal, but one the law takes seriously!

Easy Case Study: Lemonade Stand

 Sarah sets up a lemonade stand with a sign: "Lemonade - $1 per cup."
 Michael sees the sign, likes the lemonade, and gives Sarah $1. Sarah
gives him a cup.

2. Agreement

An agreement is like a meeting of the minds where two people come

together and decide on something. It's more than just a conversation, but
not as formal as a signed contract.

Easy Case Study: Sharing Fries

 You and your friend are at a restaurant.
 You order fries, but your friend loves them too.
 You say, "Hey, we can share!" and your friend agrees.

Here's why it's an agreement:

 You both understand and accept the idea of sharing the fries.
 It's not a formal contract, but there's a basic understanding of what will happen.
 3. Promise

A promise is like a verbal commitment you make to someone. It's a

statement that you'll do something specific in the future.

You tell someone you'll do something for them. Promises aren't always
enforceable by law, unlike contracts. But they're important for building trust
and keeping your word.

Easy Case Study: Movie Night with Mom

 You tell your mom, "I promise I'll clean my room before the movie night this Friday."

4. Proposal
 Clarity: The offer must be clear and leave no room for misunderstanding.
 Serious Intent: It must be a genuine offer, not a joke or casual remark.
 Communication: The offer needs to be communicated to the other person.
Remember, an offer can be withdrawn anytime before it's accepted.

Scenario Proposal or Not?

You tell your friend, "I'll sell you my Yes, this is a proposal. It's a clear offer to
bike for $100." sell your bike for a specific price.

You say to your friend, "I might sell No, this isn't a proposal. It's not a clear or
you my bike someday." serious offer.
 5. Enforceability: Can You Make Them Do It?
Enforceability is about whether a rule or agreement can be forced through if someone
breaks it. Think of it like this:

 You make a deal with your friend to trade your comic book for their video game.
 Enforceability means if your friend doesn't give you the game (after agreeing), you could
take some action (like asking a parent to help).

Easy Case Study: Library Book Return

 The library has a rule: return books on time or pay a fine.
 This rule is enforceable because the library can make you pay if you're late.

Here's the key: enforceability means there's a consequence for breaking the rule or
agreement.

Essentials of valid contract

1. Offer and acceptance

Offer: Imagine someone proposing a deal. This proposal, with
clear terms (like price and what is being offered), is the offer. It needs to
be communicated to the other party.
Acceptance: If the other person agrees to the exact terms of the
offer, that is acceptance. It is like a handshake on the deal, and must
also be communicated.
Case Study (think lemonade stand):
 Sarah offers to sell a glass of lemonade for $1 (the offer).
 You agree to pay $1 for the lemonade (acceptance).
 There is a meeting of the minds (both agree on the price and
drink), forming a valid contract!
 2. Legal Relationship:

Think of it as a legal connection between parties. A valid

contract creates this connection, meaning a court can enforce
the agreement if someone breaks it.

Case Study (fixing a leaky faucet):

 You call a plumber (John) to fix a leaky faucet. You agree on a price
($50).
 This creates a legal relationship. John has a legal obligation to fix the
faucet, and you have a legal obligation to pay $50.
 If John doesn't fix it, you could sue him in court to enforce the contract
(legal relationship).

Case Study (friendly game):

 You and a friend agree to a friendly basketball game (the agreement).

 There is no expectation of legal consequences for winning or losing (no
legal relationship).
 It is a casual agreement, not a formal contract.

3. Competency of parties
This means both people entering the contract are legally capable
of understanding and carrying it out.

Think of it like this: You would not expect a small child to understand
the weight of a complex contract or business deal.

Case Study (signing for a package):

 A delivery person arrives with a package for your 8-year-old neighbor

(incompetent party).
 Your neighbor can't legally sign for it (doesn't understand the
responsibility).
 An adult needs to sign instead (competent party).

Remember: People who are minors (underage) or mentally unfit might

not be considered competent to contract.
 4. Consideration
This is the "dealt for exchange" in a contract. It is the value each party
gives or promises to give in return for the other's promise.
Think of it like a trade: You wouldn't give someone your phone for
nothing, right? Consideration is what you get in return, like money or a
service.

Case Study (washing the car):

 You offer to wash your neighbor's car (your promise).

 In return, your neighbor agrees to pay you $10 (their promise).
 Both sides are giving something of value, forming a valid contract.

5. Free consent
This means both parties agree to the contract terms willingly, without
any pressure, threats, or misleading information. It's like a genuine "yes"
based on understanding.
Think of it like this: Imagine someone forcing you to sign a contract by
threatening you. That would not be a free choice, right?
Case Study (Car under Pressure):

 You are interested in a used car. The salesperson pressures you all day,
making threats and giving misleading information.
 Under pressure, you sign a contract to buy the car.
 Due to the lack of free consent, this contract might be challenged in
court.
 6. Lawful Object

This means the purpose of the contract must be legal and not
violate any laws. A contract cannot be formed to achieve
something illegal.

Think of it like this: You can't have a contract to steal a car or sell
illegal drugs. That is obviously not okay!

Case Study (Selling a Used Bike):

 You agree to sell your used bike to your friend for $50 (the contract).
 Selling a used bike is a legal activity.
 This contract has a lawful object.

However, consider this twist:

 You agree to sell your friend a stolen bike for $50.

 Stealing is illegal, so selling a stolen bike is also illegal.
 This contract would have an unlawful object and would not be valid.

7. Not Declared as Void

This simply means the contract should not be something the law
specifically prohibits or considers unenforceable.
You can't have a contract to pay someone to commit a crime or
something that harms public interest.
Case study

 You hire someone to write a fake college transcript for you (fake
documents are illegal activity).
 This contract would likely be declared void because the object is illegal.
 8. Certainty:

This means the terms of the contract are clear, specific, and
leave no room for major misunderstandings. It ensures both
parties know exactly what they are agreeing to.

Case Study (Painting the House):

 You hire a painter to paint your house (the contract).

 The contract clearly states the area to be painted, the color, and the total
cost (certainty).
 Both you and the painter are aware of your obligations.

However, consider this twist:

 You hire a painter to paint your house without specifying the area, color,
or cost.
 This lack of certainty could lead to disagreements later about which area
to be painted and how much it should cost.

9. Possibility of Performance:

This means the act promised in the contract must be

physically achievable and legal to complete.

Case Study (Delivering a Time Machine):

 You hire a scientist to build a time machine and deliver it to you (the
contract).
 Building a working time machine is currently beyond our scientific
capabilities (impossible performance).

However,

 You hire a mechanic to fix your car (the contract).

 Fixing a car is a well-established and achievable task (possible
performance).
 10. Legal Formalities:

Not all contracts require a written document, signature, or

specific rituals. However, some contracts might need to
follow certain legal formalities to be enforceable.

Case Study (Buying Groceries):

 You buy groceries at the store (the contract).

 In most places, buying everyday goods doesn't require a written contract.

However,

 You agree to buy a house (the contract).

 House contracts usually need to be written down and signed by both
parties to be legally valid.
 Classifications of contract

1 Express Contracts:

Express contracts are agreements formed through clear and explicit

communication between parties. This communication can be spoken
words and written documents

Case Study (Pizza Delivery):

 You call a pizza place and order a pizza (offer).

 They confirm the order (acceptance).
 This verbal agreement is an express contract.

2 Implied contracts

Implied contracts are agreements formed through the conduct of the

parties, not by spoken or written words. Your actions show your
intention to agree.

Case Study (Restaurant Meal):

 You sit at a restaurant table.

 They bring you a menu.
 By staying and ordering, you create an implied contract to pay for the
meal.
 3 quasi contracts
They're not real contracts because there wasn't an actual agreement
between the parties. But, to avoid unfair situations, the law creates a
contract-like situation.

Imagine you:

 Accidentally receive benefits from someone else.

 It would be unfair for you to keep them without paying.

Case study

finding someone's wallet:

 You accidentally use someone else's money at the store (receiving a

benefit by mistake).
 The law creates a quasi-contract, saying you should return the money
(pay something back).

4 Executed Contract
An executed contract is an agreement where both parties have
already fulfilled their obligations. It's like a handshake after everything
is done.

Imagine buying lemonade at a stand:

 You agree to pay $1 for lemonade (the contract).

 The seller gives you the lemonade, and you give them $1 (fulfilling the
contract).
 Now, the contract is considered "executed" because everything is done
5 Executory Contract

An executory contract is when both sides agree to do something in the

future, but they have not done it yet.

For example, if you hire a painter to paint your house next week, and
both you and the painter agree on it, but the painting has not happened
and you have not paid yet, that is an executory contract.
 Lecture 2
Free consent

Consent:
consent means freely agreeing to the terms without any pressure or
force. Both parties must understand what they're agreeing to.

Case Study:

 Sarah agrees to sell her bicycle to Alex for $50. She understands the price and is happy
with it. This is valid consent.

Not Valid Consent:

 Alex threatens Sarah that he'll damage her bicycle if she doesn't sell it for $20. Here,
Sarah's consent is due to fear, not free will.

Effect of absence of consent

A contract formed without consent of one or both parties is generally void

(invalid). This means the contract cannot be enforced by law.

 Case study:
Rahul 'forces' Sonia to sign a contract to sell her land.

Sonia did not agree willingly due to threaten.

The contract may be declared void due to absence of consent.

 Lecture 3
Void agreement
Agreement in restraint of trade

Concept:
Imagine a promise between employer and employee. The employee
agrees not to work for a competitor (or start their own similar business)
for a certain time and place after leaving the job. This protects the
employer's confidential information and customer base.

Case Study:

 Sarah, a baker with a secret cookie recipe, sells her bakery to Ben. As
part of the deal, Sarah signs an agreement not to open another bakery
within 10 miles for 2 years. This protects Ben's investment in Sarah's
customer base and recipe.

 These agreements are to protect legal business interests, not just to stop
competition.

Wagering Agreements

Concept: A wagering agreement is a bet between two parties on

the outcome of an uncertain event. If you win, you get something
from the other person, and if you lose, you give them something.
These agreements can be legal or illegal depending on the
situation and location.

Case Study:

Two friends, Alice and Bob, are watching a cricket match. Bob is
confident his team will win, while Alice disagrees. They make a
wagering agreement: If Bob's team wins, Alice will buy him
dinner. If Alice's team wins, Bob will buy her dinner.
Agreements in Restraint of Legal Proceedings

These are agreements that try to stop someone from going to court.
Basically, you're saying "we can't sue each other, no matter what
happens." They are generally not allowed.

Case Study:

Imagine Sarah buys a used bike from Ben. They sign a contract that says
if the bike breaks down, Sarah can't sue Ben. This is an agreement in
restraint of legal proceedings. It's likely unenforceable because Sarah
should have the right to sue if the bike has problems.

Agreements in Restraint of Marriage

These are agreements that try to prevent someone from getting married.
The law considers them unfair because everyone has the right to choose
who they marry. Such agreements are generally unenforceable.

Case Study:

John's rich uncle says he will give John a lot of money, but only if
John promises never to marry. This promise is called an agreement in
restraint of marriage. It is not allowed because everyone should be free
to marry who they want. So, John can't be forced to stay single for the
money.
Uncertain Agreements same as certainty essential contracts

Concept: An uncertain agreement is one where the terms are so unclear

that it is impossible to tell what the parties actually agreed to. This
makes it difficult, or even impossible, to enforce the agreement.

Case Study:

Imagine Sarah agrees to sell her car to Ben for "a bunch of money." This
is uncertain. What exactly is "a bunch of money"? $1000? $10,000?
Without a clear price, the agreement is too unclear and might not be
enforceable in court.

Agreements Contingent on Impossible Events same

as possibilities of performance opposite
Concept: These are agreements where something has to happen that cannot possibly
happen for the agreement to be valid. Because the condition is impossible, the whole
agreement is considered void (not enforceable).

Case Study:

Imagine Ben agrees to pay Sarah $1 million if pigs can fly. This agreement is contingent
on an impossible event. Pigs can't fly, so Ben will never have to pay Sarah. The
agreement is void from the start.

Agreements to do Impossible Acts same as

possibilities of performance opposite
Concept: These are agreements where one party promises to do something that is
physically or legally impossible. Since they can't fulfill the promise, the agreement is
considered void (not enforceable).

Case Study:

Imagine Sarah agrees to pay Ben $1 million if he can breathe underwater for 24 hours
without any equipment. Breathing underwater for that long is currently impossible for
humans. So, the agreement is void. Sarah wouldn't have to pay even if Ben tried really
hard!

Lecture 4

Capacity of parties
Agreements by person of unsound mind
 A person of unsound mind can't make a valid agreement.
 This means they can't fully understand the agreement or the consequences of it.

Case Study:

 Imagine Sarah, who has dementia, agrees to sell her valuable painting for a very low
price.
 Since Sarah might not understand the value of the painting due to her condition, the
agreement could be considered void.

Reasoning:

 The law protects people who can't take care of their own interests.

Positions of a person who is usually of unsound mind but occasionally

of sound mind:
A person who is usually not able to think clearly but sometimes can
think clearly is called legally incapacitated. This means they may need help
making decisions because they're not always able to understand things
properly.
Case study
 when Sarah is feeling better, she can manage her daily tasks like
cooking or shopping. But when her condition worsens, she may need
someone to help her with important decisions like managing her money or
healthcare. This shows how Sarah's ability to think clearly can change, and
why she might need help making decisions sometimes.

Burden of proof
The burden of proof is the responsibility to provide evidence or
support for a claim or argument. In other words, it's the obligation to show
that something is true or valid.

Case Study (Simple):

 Lisa accuses Michael of damaging her bike.

 The burden of proof is on Lisa.
 She needs to show evidence (witnesses, photos,videos) that michael caused
the damage.
Lecture 5
Bailment and essentials

Bailment simply means temporarily giving someone possession of

your stuff for a specific reason.

Short Case: You lend your bike to your friend (you = bailor, friend =
bailee) so he can ride to the store (specific reason). he has to return the
same bike (not a different one!) when he is done.

1 Contract: Bailment needs an agreement between two people.

Case, Ali asks Faraz to look after his bike. Faraz agrees.

2 Specific Purpose: Goods given for a particular reason.

Case, Ali gives his bike to Faraz to keep it safe while he is inside the
store.

3 Delivery of Goods: Handover of items from one person to another.

Case, Ali hands his bike over to Faraz

4 Only for Movable Goods: Bailment is for stuff you can move.

Case, Ali's bike is easily movable, so it fits the criteria for bailment.
5 Return of Specific Goods: You get back exactly what you gave.
Case, When Ali comes out of the store, he expects to receive back the
same bike he gave to Faraz.

pledge and essentials

A pledge is a fancy way of saying you give someone something

valuable (movable property) as security for a loan. Imagine you need
some money for an emergency.

you go to your friend and say, "Hey, can I borrow $500? I'll give you my
gold watch as security, and if I can't pay you back, you can keep the watch."

 1 Movable Property: Only things you can move (like jewelry or a

car) can be pledged.

Case, The gold watch serves as the pledged movable property.

 2 Limited Interest: It is like borrowing a tool, you can use it for a

specific task, but you have to return it and don't become the owner.

Case, your friend accepts the gold watch as security for the loan
$500.

 3 Transfer of Possession: You give him the item, but not

ownership.

Case, you hands over your gold watch to your friend.

 4 No Ownership Transfer: You are still the real owner, just

borrowing money with the item as security.

Case, Although your friend holds the watch, ownership remains

with you until the debt is repaid.
  5 Not Mere Custody: The thing given is not just held for
safekeeping; it is used as a promise to pay back money or do
something else.

Case, your friend holds onto the watch not just for safekeeping but
as security for the loan.

Indemnity Contract:

 Explanation: In an indemnity contract, someone promises to pay for

any harm or loss that happens.
 Example: Ali hires Faraz to paint his house and Faraz accidentally
damages the walls, Faraz promises to pay for the repairs.

Guarantee Contract:

 Explanation: In a guarantee contract, someone promises to pay if

someone else can't pay for something.

Example: Ali borrows money from the bank to buy a car. Faraz guarantees
the loan, agreeing to repay the bank if Ali cannot pay back the loan.
Lecture 6

1. Discharge by Performance: Everyone fulfills their duties under the

contract, and you're both done.

 Case: You hire a painter to paint your room blue. They paint it
blue, you pay them – contract complete!

2. Discharge by Breach: Someone breaks the contract's rules.

 Case: You order a red shirt online, but they send you a green one.
That's a breach, and you might be able to get a refund or the
correct shirt.

3. Discharge by Agreement: Both sides agree to cancel the deal, even if

nobody messed up.

 Case: You order a pizza but find out your friend is already
bringing one. You call the pizzeria and agree to cancel your order.
 4. Discharge by Subsequent Impossibility: Something unexpected
makes fulfilling the contract impossible (not your fault!).

 Case: You agree to mow your neighbor's lawn, but a sudden flood
washes everything away. Mowing is now impossible, so the
contract is discharged.

1. Rescission of Contract: Sue to cancel a contract if something went wrong.

Raza hired Sajjad to paint his house, but the job was poorly done, so Raza
wants to cancel the contract.

2. Quantum Meruit: Sue for fair payment for work done, even without a contract.

Sajjad painted Raza's fence without a contract, and now Raza refuses to pay
him for the work.

3. Specific Performance: Sue to make someone do what they promised in a contract.

Raza hired Sajjad to paint his house by a certain date, but Sajjad hasn't
finished, so Raza is suing to make Sajjad complete the job as agreed.

4. Suing for an injunction order: means asking the court to tell someone to
stop doing something or make them do something specific.

Raza's neighbor is painting their house with noisy equipment late at night,
so Raza seeks a court order to stop them until the noise issue is resolved.

5. Suit for damages

When someone suffers harm due to another's actions, they may sue for damages,
seeking financial compensation for their losses. Imagine you hire a painter and they do a
terrible job. You sue them for damages.

You want the court to order the painter to pay you enough money to fix their mistake and
get things back to how they should be.

This money you receive is called compensation. It covers the actual financial loss you suffered
due to their bad work

Raza hired Sajjad to repair his bike, but Sajjad caused further damage. Raza sues for
damages.