Contracts

Part A ( 6 MARKS)
Nov 2022, Jun 2022, Apr 2023, Aug 2023, Sep 2019
1. Revocation of offer

A contract arises after an offer is accepted. Contract is Offer + acceptance.

Before the offer is accepted, It can be revoked. After the acceptance of the contract, an
offer cannot be revoked.
Section 5 states, a proposal may be revoked at any time before the communication of its
acceptance is completed as against the proposer and not afterwards.
Example – a resignation is an offer to quit the post and the same can be withdrawn before
the resignation is accepted.
Section 6 deals with Modes of revocation of offer. A proposal is revoked
1. By the communication of revocation of the notice of revocation by the proposer to the
other party
2. By the lapse of time described in such proposal for its acceptance or if no time is so
prescribed, by the lapse of the reasonable time without communication of the
acceptance
3. Failure of the acceptor to fulfil a condition precedent to the acceptance
4. By the death or insanity of the proposer. If the fact of the death or insanity of the
propose comes to the knowledge of the acceptor before acceptance.
2. Standard form contract

Standard form contract is a pre-written contract where the terms and conditions are non-
negotiable and are usually drafted by one party and presented to the other party for
signature. Standard form contracts are also known as adhesion contracts or boilerplate
contracts.

In India, standard form contracts are recognised under the Indian Contract Act, 1872.

The Indian Contract Act, 1872 does not provide a specific definition of standard form
contracts, but it does recognise their existence.

Section 23 of the Act states that any contract that involves a certain degree of unfairness
or unconscionability, or which is against public policy, is void.

This provision applies to standard form contracts as well, and any clause in such a contract
that is found to be unconscionable or against public policy can be held to be void.

Use of standard form contracts

The purpose of standard form contracts is to streamline the contracting process by

providing a pre-written set of terms and conditions that can be used for a large number of
transactions.

These contracts are often used in situations where one party has significantly more
bargaining power than the other, such as in consumer contracts or employment contracts.
Standard form contracts can save time and resources by avoiding the need for
negotiations and individualized drafting of contracts for each transaction. However, they
can also be used to take advantage of consumers or other parties who may not fully
understand the terms and conditions of the contract.

Standard form contracts are commonly used in various sectors such as insurance,
banking, and telecommunications, among others. These contracts often contain a large
amount of legal jargon, and the terms and conditions can be difficult for the average
consumer to understand.

Why do people accept standard form contracts?

Here are some points on why people accept standard form contracts:
1. Convenience: Standard form contracts offer pre-drafted terms that can be easily
accepted or rejected without the need for time-consuming negotiations or
customizations. This can save parties time and resources, particularly in cases where
the transaction is routine or standardized.
2. Familiarity: These contracts are widely used and accepted in a particular industry or
market. Parties may feel more comfortable using a standard form contract that they
are familiar with, rather than negotiating new terms or using an unfamiliar document.
3. Perceived lack of bargaining power: In some cases, parties may believe that the
other party is in a stronger position and that they have little leverage to negotiate more
favourable terms. In these cases, accepting a standard form contract may be seen as
the only viable option, even if the terms are not entirely satisfactory.
4. Lack of legal expertise: Some parties may lack the legal expertise to effectively
negotiate or draft a contract, and may prefer to use a standard form contract as a way
to ensure that the basic terms and provisions are covered.
5. Cost: Negotiating or drafting a custom contract can be expensive, particularly for small
businesses or individuals. In these cases, using a standard form contract may be a
more cost-effective option.
Legal status of standard form contracts
The standard form contracts are considered to be legally binding agreements, assuming
that the parties have freely and voluntarily agreed to the terms in India.

Important rules related to standard form contracts

To address the unequal bargaining power between parties, several rules have been
developed to protect the weaker party. Some of these rules include:

Doctrine of unconscionability
Under this doctrine, a court may refuse to enforce a contract if it is found to be
unconscionable or oppressive to the weaker party. This means that if the terms of a
contract are overly harsh or one-sided, a court may declare the contract void or modify the
terms to make them more equitable.
Statutory protections
Certain statutes have been enacted to provide protections to consumers, employees, and
other weaker parties in standard form contracts. For example, the Consumer Protection
Act, 2019 provides consumers with the right to file complaints against unfair trade
practices and seeks to promote fair competition.
 Implied terms
In some cases, courts may imply certain terms into a contract to protect the interests of
the weaker party. For example, in a contract of employment, courts may imply a duty of
good faith and fair dealing on the part of the employer towards the employee.
Duty to disclose
The party with greater bargaining power has a duty to disclose any relevant information
that may affect the weaker party’s decision to enter into the contract. Failure to disclose
such information may result in the contract being held void.
Right to rescind
The weaker party may have the right to rescind the contract if they were induced to enter
into it by misrepresentation, fraud, or undue influence.

Example:
Terms and condition drafted by insurance companies are same for all the consumers
entering into the insurance agreement/ contract.
Railway’s terms and condition prior to the issuance of the ticket is similar to all the train
travellers.

3. Uncertain agreements (Section 29)

Uncertain agreements are described in Sec 29 of Indian contracts act.
An agreement is void under Section 29 of the Indian Contract Act of 1872 when its
contents are ambiguous and uncertain and hence cannot be clarified.
For example,
- suppose X agrees to exchange a tonne of oil. This agreement is unenforceable due to
uncertainty since the intended categorization cannot be ascertained.
- Mr. A makes an offer to Mr. B to buy his watch but does not specify how much or when
he should respond. As a result of the terms' ambiguity, the contract would be ruled
doubtful and invalid.

Conditions of Uncertain Agreements

Following are the major conditions for uncertain agreements −
Requirement for Certainty
To be regarded as not void and uncertain, an agreement's terms and conditions must
be explicit; otherwise, it is a void agreement.

Resolving Uncertainty
If an ambiguity present in an agreement could be resolved without modifying the main
principle of an agreement, then it will not be considered void.

For example, the delivery of the parcel was fixed to be done at four o’clock. But whether 4
AM or PM is not defined. Since this is a minute ambiguity and can be resolved, the
agreement can still be upheld.

4. Void Contracts
A contract is an agreement enforceable by law.
A void contract is an agreement that is not enforceable by law.
There are some agreements that have been declared as void even if they satisfy the
conditions of a valid contract
 The agreements that are considered as void as per the Indian contracts act are as follows
–
1. Agreements in which the consideration and object is not lawful . (Sec 23 and 24)
If the object of the contract is to kill a person, then it is unlawful object and
If the consideration for a contract is to vandalize someones property
2. Agreements without consideration (Sec 25)
If the contract does not have an consideration clause i.e. quid pro quo i.e. absence of
anything in return then the agreement is void.
3. Agreement in restraint of Marriage (Sec 26)
Any agreement that deals with restraining someone from marrying or forcing someone
to marry other person unwillingly. i.e. any marriage brokerage agreement is void.
4. Agreement in restraint of trade (Sec 27)
If a person signs a contract which suggest that the other person should not do trade /
profession of his choice then it is void.
5. Agreement in restraint of legal proceedings (Sec 28)
If a person enters into a contract that forces other person not to pursue legal action
then it’s a void contract

6. Agreements which are ambiguous and uncertain (Sec 29)

As per section 29 of the Indian Contract Act, 1872, “agreements, the meaning of which
is not certain, or capable of being made certain, are void”.
In simpler words, agreements whose meaning or terms are unclear and vague are void.
For example, Mr A approaches Mr B to buy a car from XYZ company, but he does not
disclose what features he wants in his car. So, due to the uncertainty of terms, the
agreement would be considered uncertain and hence void.

7. Agreements by way of wager (Sec 30)

Any contracts involving betting is void. Wagering agreements are those that are
dependent on happening or not happening of future events. The even may lead to loss
for one and gain for another.

8. Agreements to an impossible act (Sec 56)

A contract in which one party promises to perform to perform an impossible act. Such
as a contract that involves a person promising to take a person to Moon.

9. Agreements with Minor

Any agreement or contract with Minor is Void abinitio.

5. Appropriation of payments: Clayton’s Rule

Appropriation means ‘application’ of payments.

Section 59 to 61 of the Indian Contract Act, 1872, lay down certain rules regarding the
Appropriation of payments.
 If the debtor owes several debts to the creditor, and makes a payment to any of them and
later requests the creditor to apply the payment to the discharge of a particular debt. If
the creditor agrees to this request, he is bound by such appropriation. This section applies
to several distinct debts and not to a single debt, or to various heads of one debt.
The basic idea is that “When money is paid, it is to be applied according to express the will
of the payer and not the receiver. If the party to whom the money is offered does not
agree to apply it according to the will of the party offering it, he must refuse it and stand
upon the rights which the law has given him”.

6. Doctrine of Frustration(Sec 56)

When the performance of the contract becomes impossible, the purpose which the parties
have in mind is frustrated. If the performance becomes impossible because of the
supervening event, then the promisor is excused from the performance of the contract.
This is called doctrine of frustration.
The Impossibility and Frustration are interchangeably used.
The changed circumstances makes the contract impossible and hence the contracting
parties are absolved from the further performance

As general rule parties to contract are having an intention towards the fulfillment of their
part and in case of breach, party breaching is liable to compensate for the same. But an
exception to this rule is laid down in Section 56 of the Indian contract act 1872. Section 56
deals with the doctrine of frustration as being acts which cannot be performed. Under this
doctrine a promisor is relieved of any liability under a contract in the event of the breach
of contract and contract will be deemed to be void.

7. IMPORTANT : Duty to Mitigate the Loss

In the realm of contract law, the duty to mitigate, also known as the doctrine of avoidable
consequences, serves as a guiding principle that places an obligation on the party who has
suffered a loss due to a breach of contract to take reasonable action to minimize the
damages incurred.
From a legal perspective, the duty to mitigate is rooted in the principle that one should not
benefit from their own inaction in the face of adversity.
Courts often scrutinize the actions taken post-breach to determine if the non-breaching
party made a genuine effort to mitigate damages. This can include seeking alternative
solutions, reducing costs, or even entering into substitute agreements where feasible.
ere are some in-depth insights into the duty to mitigate:

1. Reasonable Steps: The non-breaching party is expected to take steps that a reasonable
person in their position would take. This does not mean they must go to extraordinary
lengths, but they cannot ignore obvious opportunities to reduce losses.
2. Timing of Mitigation: The duty to mitigate arises immediately after the breach has
occurred. Delay in taking action can be seen as a failure to mitigate.
3. Costs of Mitigation: Any costs incurred in the process of mitigating the damage can
typically be recovered from the breaching party, provided they are reasonable and
necessary.
4. Burden of Proof: It is the breaching party's burden to prove that the non-breaching party
failed to mitigate damages, and as such, any damages awarded should be reduced
accordingly.
 5. Limitations of Mitigation: There are limits to this duty. For instance, the non-breaching
party is not required to enter into a demeaning or substantially different contract to
mitigate losses.

8. Temporary and Perpetual Injunctions

An injunction can be defined as discretionary relief by the court, either requiring the party
to do something or refraining from doing something. It may be in the form of an interim
order or a fint order. The few instances where the remedy of injunction is used are:

o To prevent someone from publishing content online or offline or to destroy the

already published content,
o To prevent from further construction on a piece of land or from selling or
transferring any property in question,
o To grant a search order,
o To prevent someone from leaving a place or country

There are basically two types of injunction as provided by section 36 of the Specific Relief
Act, 1963. Section 36 of the Specific Relief Act with the head 'Preventive relief how
granted" reads as, "Preventive relief is granted at the discretion of the court by injunction,
temporary or perpetual". As per provisions of section 36 injunctions are either temporary
(interlocutory) or perpetual.

Temporary and perpetual injunctions are defined under Section 37 of the Specific Relief Act
which reads as:

"(1) Temporary injunctions are such as to continue until a specified time, or until further
order of the court and they may be granted at any stage of a suit, and are regulated by
the Code of Civil Procedure, 1908.

(2) A perpetual injunction can only be granted by the decree made at the hearing and
upon the merits of the suit, the defendant is thereby perpetually enjoined from the
assertion of a right, or from the commission of an act which would be contrary to the
rights of the plaintiff.

9. Specific offer
A contract is an agreement legally enforceable by law. An agreement is a combination of
offer and acceptance.

An offer is defined as one person indicates his willingness

o to do something or not to do something
o to get assent of the other party

A specific offer is an offer that is made to a specific or ascertained person, this kind of
offer can be accepted by the person to whom it is made

Example - A offers to sell a car to B for a specific price.

10. Consideration:

Consideration is the benefit that each party receives, or expects to receive, when entering
into a contract.

Consideration is often monetary, but it can be a promise to perform a specific act, or a

promise to refrain from doing something.

In order for a contract or agreement to be legally binding, every party to the contract must
receive some type of consideration. In other words, a contract is a two-way street, so each
party must receive something of value from the other party or parties.
Illegal or immoral acts are not legally considered to serve as consideration.

11. Undue Influence

Undue influence is defined in Section 16 of the Indian contracts act 1872.Section 13 of the
ICA defines consent as the meeting of minds of the parties i.e. Consensus ad diem(When
they are in agreement on the same thing in the same sense).
Section 14 defines free consent as – Consent is said to be free if its is not caused by
Undue Influence – Undue influence is defined as – if the parties to a contract are so placed
to each other that one party is in a position to dominate the will of the other party.
Consequently the other party is compelled to enter into an agreement against his will.
Such an agreement is said to be induced by Undue influence.
Or a person by virtue of his authority or by fiduciary relations dominates the will of the
other person under some special circumstances.
Example –
1. Income tax officer vs assessee
2. Police office vs accused
3. Creditor vs debtor
4. Parent vs Son
5. Master Vs servant

12. IMPORTANT : Contingent contracts

Section 30 defines contingent contracts. A contingent contract is also called as a
conditional contract. A contract where performance of the contract is dependent on the
occurrence of a future event that is not within the control of the parties.
Contingent event : The event upon which the performance of a contingent
contract is dependent must be uncertain. It must not be certain to happen or not to
happen.
 Contingent condition: The performance of a contingent contract may also be
dependent on the fulfillment of a condition. This means that the contract will be
performed only if a certain condition is fulfilled. For example, a contract to sell a
house if the buyer obtains a loan from a bank is a contingent contract, as the
fulfillment of the condition is uncertain.
13. Accord and Satisfaction
There are multiple ways in which a party can discharge their contractual obligations.
One such method is the doctrine of accord and satisfaction, by which the parties are
allowed to discharge their contractual obligations by performing certain modified
obligations or terms. The act of substituting a new agreement for the old agreement
discharges any remaining obligations under the old one.
Accord is agreement on new terms of the contract and satisfaction is the performance of
those terms as per the contract. When an accord is reached and satisfaction is rendered,
the obligations under the original contract are discharged and no new claims can be made
under the original contract.

14. Quasi Contract: Rights of Finder of lost goods

Quasi contracts - The word 'quasi' means pseudo or partly or almost and that is why it can
also be called a pseudo contract. A quasi-contract is an agreement that is retroactive in
nature. These kinds of agreements take place between parties who have no prior
contractual commitments or intention of getting into a contract.
This type of contract aims to prevent from gaining undue benefit and financially draining
other party
A second word for quasi-contracts is implied contracts.

A literal meaning is attached to the term implied contract as the defendants are ordered to
pay for the damages and the quantum meruit or restitution is measured as per the
intensity of the wrong done. Lastly, none of the parties involved are supposed to give
consent as the agreement is being established in the court, therefore, making it legally
enforceable without consent. The main aim of such contracts is to make a fair decision
that will, later on, turn into an outcome that is acceptable to the party that has been
wronged.

Type of Quasi contracts

Sec 68: Claim for the necessaries provided to a person incapable of contracts
Sec 69 : Reimbursement of money paid due by another
Sec 70: Obligation of person enjoying benefit of non-gratuitous act
Sec 71: Responsibility of finder of goods
Sec 72: Liability of a person getting benefit under mistake or coercion

As per Sec 71, Finder of goods is called Bailee.

Finder of goods is a person who finds the goods belonging to another.
Duties of the finder of Goods
1. Duty of reasonable care (Sec 151-152)
2. Duty not to make unauthorized use (Sec 154)
3. Duty not to mix (Sect 155-157)
4. Duty to return (Sec 160-161)
Rights of the finder:
The Indian Contract Act, in Sections 168 and 169, explains the rights of a finder of lost
goods.
 A finder has the right to keep possession of the lost goods until the true owner
comes forward and claims them.
 The finder is considered the best owner, except for the true owner. This right is
given to the finder because of the trouble and expenses they may have incurred
 to preserve and find the owner of the goods. However, the finder cannot sue the
owner for these expenses. Instead, they have a particular lien on the goods,
which allows them to refuse to return the items until they are compensated for
their expenses.
 Finder has ability to claim any reward (Section 168) that the owner has offered
for the return of the lost goods. The finder may retain possession of the goods
until they receive the reward. If the owner does not provide the reward, the
finder can take legal action against them. However, this right is only enforceable
if the owner has offered a reward.
 In addition to the above rights, the finder also has the right to sell the goods
(Section 169) under certain conditions. If the goods are perishable or could lose
significant value, the finder can sell them if the owner cannot be found despite
reasonable diligence. The finder can also sell the goods if the owner refuses to
pay the lawful charges, and those charges amount to two-thirds of the goods'
value. By selling the goods, the finder can recover their expenses incurred while
preserving and trying to find the owner.
 The finder has the right to possession of the goods against everyone except the
rightful owner.

15. Kinds of Damages

Damage is the loss caused due to the breach of contract by a person in the contract.
Damages are the compensation for Damage causes.
Damages are common type of remedies available for the party as a recovery for the
damage

1) General Damages
General or Ordinary Damages refers to those damages that are payable on loss
caused/suffered naturally during the normal course of events from breach of contract. The
main aim behind awarding General Damages is to compensate the aggrieved party and
not to punish them. The quantum of General Damages will be exactly the amount which
would place the victim in the same position as he/she was before the breach of contract.
Illustration: A entered into a contract to deliver 500 cans of blueberries to B who owns a
bakery shop on a specified date. However, A fails to deliver the cans as mentioned in the
contract. Here, B is entitled to receive General damages to as compensation for loss
suffered due to breach of contract.

2) Special Damages
Special Damages refers to those damages that are payable when loss is caused due to
unusual or special circumstances. Aggrieved parties receive special damages when they
have experienced indirect loss due to breach of contract.
Illustration: A enters into a contract with B (a baker) to deliver 10 bags of flour on a date
specified in the contract. However, A fails to deliver 10 bags of flour because of which B
could not deliver cakes to birthday parties and suffered loss. Here, B is entitled to receive
special damages for loss suffered due to non performance of contract by A.

3) Aggravated Damages
Aggravated Damages are damages that are payable to the victim when the defendant
or surrounding increases the injury to the victim by subjecting them to humiliation,
distress, embarrassment, false imprisonment, defamation etc. The aggravated Damages
are compensatory in nature and awarded in case of aggravated damage caused to the
plaintiff.
Illustration: X and Y were friends since childhood but after a few year X starts consuming
drugs and in order to make him feel better, Y increases his dose of drugs which make ever
sick. Here, X can claim Aggravated Damages.

4) Exemplary Damages
Exemplary Damages are also known as punitive damages are damages awarded by
the court in circumstances where the court wants to make an ‘’example’’ and deter others
from committing the same wrong.
Illustration: A and B were engaged and were about to get married but A later broke off
the engagement and refused to marry B. B felt humiliated, suffered mental torture and
wasted money on wedding preparation. Court held that B is entitled to receive both
ordinary and special damages. It was also held that damages can not be measured by any
fixed standard and mere paying damages is not enough but the defendant should also be
punished in an exemplary manner for it.

5) Nominal Damages
Nominal Damages are compensation that is awarded to the victims when there is
violation of their rights. Nominal Damages are awarded to the plaintiff if their legal rights
have been infringed even though they have not suffered any loss or injury.
Illustration: Sam enters into a contract with Peter to sell his watch at 1000 bucks on a
specified date. Later he refuses to buy the watch. Sam then sells his watch to Mary at the
said price. Here, even though Sam did not suffer any loss due to breach of contract by the
conduct of Peter still he can claim Nominal Damages as his legal rights were violated by
non performance of contract by Peter.

6) Pecuniary Damages
Pecuniary Damages are damages that are quantifiable in nature. These can be
measured in financial terms. They are mostly common in civil lawsuits. Some examples of
Pecuniary Damages are medical bills, wage replacement, loss of earning capacity, future
care, cost of physical damage etc.
Illustration: A’s mother fell severely ill and had to be admitted to hospital immediately
for treatment. A could not meet the cost of treatment for his mother so he approached B
and asked for some money for his mother’s treatment. B agreed to give him money for
treatment on a promise that he will return the money after 6 months. A fails to return
money to B. Here, B will be entitled to receive Pecuniary Damages and the amount would
be calculated from medical bills.

7) Non Pecuniary Damages

Non Pecuniary Damages are damages that are not quantifiable in nature. These cannot be
measured in financial terms or it is difficult to measure it in monetary terms because of its
subjective nature. Some examples of Non Pecuniary Damages are Pain, suffering, distress,
impairment of life, Physical and mental impairment, impairment of relationship, loss of
future wages etc.
Illustration: A and B went out on a drive and met with an accident. A was driving the car
carelessly. Both A and B were severely injured but B lost limbs in the accident . Here, B can
 claim Non Pecuniary Damages from A for his negligent driving which lead to her physical
impairment.

8) Compensatory Damages
Compensatory Damages are payable to the plaintiff by civil court to compensate for
damages, injury or other losses as a result of negligence or unlawful action of another
party.
Illustration: A and B were neighbours. A had a small vegetable garden at the front of the
house. B grew vegetables for commercial purposes. One day B’s dog enters into A’s
vegetable garden and destroys all his vegetables in his garden because of which he
suffered huge loss. B then moves to the court to claim compensatory damages. Civil Court
held A liable to pay Compensatory Damages to B.

9) Non compensatory Damages

Non Compensatory Damages are damages awarded by the court of competent
jurisdiction that are penal in nature.
Illustration: A induces B to kill himself by constantly reminding him that he is worthless
and that he should die. B eventually commits suicide. Here, A will not only be punished for
abetment of suicide but will also be liable to pay (Non Compensatory Damages) to B.

10) Liquidated Damages

Liquidated Damages are Damages wherein the parties to contract have decided
beforehand to pay a certain amount on breach of contract.
Illustration: Marry enters into a contract to sell her house to Trinity at agreed price and
on specified time. The also mentioned in the contract that if any party breaches the
contract, then that party will pay compensation amount of 800$ to the aggrieved party.
This amount of 800$ is liquidated damages.

11) Unliquidated Damages

Unliquidated Damages are Damages are those damages that are decided by the court
after assessing the loss and injury suffered by the party due to breach of contract.
Illustration: A gives his house on rent to B in return of 12000/- per month as rent
amount. After a few years, B refuses to pay the rent amount as specified in the contract. A
moves to the court to claim his rent amount. Here, the court may assess the loss or injury
suffered by him and can decide the compensation amount as it may fit deemed.

16. Rectification of instruments

Rectification of instruments is a legal remedy available under the Specific Relief Act of
1963, which allows parties to correct errors or mistakes in written instruments such
as contracts, deeds, agreements, or other legal documents.

Rectification of instruments in India is governed by section 26 of the Specific Relief Act.

This section provides the legal framework for rectifying mistakes in written instruments.
Certain requirements must be met to obtain rectification, and important implications are
associated with this remedy.

Requirements of Rectification
The points below describe the requirements of rectification.
1. Mutual Mistake
Rectification can be sought when there is a mutual mistake, meaning both parties to the
contract are in agreement that there is an error or mistake in the written instrument. The
mistake should be of such a nature that it does not reflect the true intentions or
understanding of the parties at the time of contract formation.
2. Document Does Not Reflect Intention
The mistake in the instrument should be such that it results in the document not reflecting
the parties’ true intention. The mistake should be substantial and not a mere clerical error
or a minor discrepancy.
3. Clear and Convincing Evidence
The party seeking rectification bears the burden of proving that there was a mistake in the
instrument and that the rectification is necessary to correct that mistake. The evidence
presented should be clear, convincing, and beyond any reasonable doubt.

Implications of Rectification

The following points describe the implications of rectification.

1. Correcting Mistakes
The primary implication of rectification is that it allows for correcting mistakes in written
instruments. Once rectified, the instrument will reflect the true intentions and
understanding of the parties, thereby avoiding any unintended consequences that may
have arisen due to the mistake.
2. Validity and Enforceability
Rectification ensures that the corrected instrument is valid and enforceable. It removes
any doubts or ambiguities caused by the mistake and provides legal certainty to the
parties involved.
3. Impact on Rights and Obligations
Rectification may have implications on the rights and obligations of the parties. Once the
instrument is rectified, the parties will be bound by its corrected terms, and any
obligations or duties arising from the instrument will be based on the rectified version.
4. Retroactive Effect
Rectification operates retroactively, meaning it is effective from the original contract date.
It is as if the mistake had never occurred, and the corrected terms are deemed to have
been in place from the beginning.
Rectification is a significant legal remedy ensuring written instruments’ accuracy and
integrity. Rectifying mistakes upholds the parties’ intentions and maintains the contracts’
fairness and enforceability. It provides a mechanism to correct errors and avoid any unjust
or unintended consequences arising from mistakes in legal documents.
Example –
Mr X and Mr Y enter a partnership agreement to start a new business venture. They draft a
written agreement that outlines the terms and conditions of their partnership, including
the profit-sharing ratio and the duration of the partnership. However, during the drafting
process, a typographical error mistakenly stated Mr X’s profit share as 60% instead of the
intended 40%.
 Conditions Under Which Rectification May Be Granted
Here are four conditions under which rectification may be granted.
1. Mutual Mistake
Rectification can be granted when there is a mutual mistake, meaning both parties to the
contract agree that there is an error or mistake in the written instrument. The mistake
must be material and should not reflect the true intentions or understanding of the parties
at the time of contract formation.
2. Clear Evidence
The party seeking rectification must provide clear and convincing evidence of the mistake
in the instrument. This evidence should demonstrate that the written document does not
accurately represent the intended terms of the agreement.
3. Intention to Rectify
It is necessary for the party seeking rectification to establish an intention to rectify the
mistake when entering into the contract. This means that the parties recognized the error
and intended to correct it.
4. Prompt Action
The party seeking rectification should promptly apply for rectification. Delay in seeking
rectification may affect the court’s decision, as it can raise questions about the party’s
sincerity or the importance of rectifying the mistake.

17. Wagering Agreements (Section 30 of Indian Contracts Act )

The term wager means a Bet.
Sir William Anson’s define “Wager” as a “promise to give money or money’s worth upon
the determination or ascertainment of an uncertain event”.
Section 30 of the Indian Contract Act, 1872 deals with wagering agreements and it states
that “Agreements by way of wager are void and no suit shall be brought for recovering
anything alleged to be won on any wager, or entrusted to any person to abide the result of
any game or other uncertain event on which any wager is made”.
A wagering agreement being void cannot be enforced in any court of law and section 30 of
Indian Contract Act, 1872 expressly declares that “no suit shall be brought for recovering
anything alleged to be won on any wager, or entrusted to any person to abide the result of
any game or other uncertain event on which any wager is made”.
Essentials of a Wager
 It must be dependent upon the determination of an uncertain event: this
implies that for an agreement to be a wagering agreement, it is necessary that
the subject matter of the agreement must be dependent on an uncertain event.
 There must be mutual chances of gain or loss: the second essential feature is
that upon the determination of the contemplated event, each party should stand
to win or lose. If there are no such mutual chance of gain or loss, there is no
wager
 Neither party to have control over the event: if one of the parties has
the event in his own hands, the transaction lacks an essential ingredient of
a wager
 No other interest in the event: the parties must not have any interest in the
happening of the event other than the sum or stake he will win or lose.
Exceptions to Wagers
 Horse race
o As per the Section 30 of Indian Contract Act, 1872 horse racing and the
contribution for the reward of such competitions of amounts more than Rs 500 is
not considered unlawful.
 Cross word competitions and lottery
o If skill plays a substantial part in the result and prizes are awarded according to
the merits of the solution, the competition is not a lottery. Thus, any
competitions which involve the application of skill and in which an effort is made
to select the best and most skillful competitor, are not wagers.
 Insurance Contracts
o An insurance contract is deemed to a contract of indemnity used to protect the
interest of parties. On the other hand, the purpose of a wagering contract is to
earn money or money’s worth from an uncertain event.
 Share market transaction
o Although stock market dealings involve speculation, they are not considered
wagering agreements because they are based on informed decisions and market
analysis rather than pure chance.
Case Laws
 Gherulal Parakh v. Mahadeodas Maiya (1959)
o In this case it has been laid down by the Supreme Court that “though a wager is
void and unenforceable, it is not forbidden by law”.
o Any transaction collateral to the main transaction is enforceable.

o In a wagering agreement, it is important to determine that whether such

agreement is also unlawful under Section 23 of the Indian Contract Act, 1872 in
order to test its legality.
 Dr. K.R. Lakshmanan v. State Of Tamil Nadu (1996) – Horse racing Exception
o In this case one of the major issues arise before the Supreme Court that
“whether the running of horse-races by the club is a game of chance or a game
of mere skill”?
o The Supreme Court held that “Horse racing has been universally recognized as a
sport. Horsemanship involves considerable skill, technique and knowledge and
jockeys have to be specially trained over a period of years”.
o Horse racing has been held judicially to be a game of skill unlike pure games of
chance like Roulette or a Lottery.
 State of Andhra Pradesh v. K. Satyanarayana & Ors (1967)
o In this case, the Supreme Court held that “rummy is a predominantly skill-based
game since the fall of the cards has to be memorized and skill is required in
 holding and discarding cards. Hence, we cannot say that rummy is a game
completely based on chance.
o If there is evidence of gambling in some other way or that the owner of the
house or the club is making a profit or gain from the game of Rummy or any
other game played for stakes, the offence may be brought home.

18. IMPORTANT: Novation

o A contract can be discharged either by agreement or by a breach.
o Novation is one way to discharge a contract by agreement and section 62 of the
India Contract, 1872 Act gives expression to the doctrine of Novation.
o The substitution or replacement of an old contract with a new one is termed
as Novation.
o It takes place with the consent and agreement of both the parties to a contract thus
with the creation of new contractual obligations, the old ones are discharged.
o The doctrine of Novation exists to give expression to the concept that parties to a
contract should be competent to add, subtract or vary the terms of the contract
before its breach with the help of a new contract.[i]
Few elements which become extremely necessary for the discharge of
contract by novation are:
o There has to be a complete substitution of the original contract by a new contract.
o Till a new contract comes into existence, the original contact stands to exist and is
enforceable as well.
o The new contract should be a valid contract as under the provisions of the Indian
Contract Act, 1872.
o The original contract has to remain unbroken which implies that novation can take
place only before the breach of the original contract.
o The essence of novation lies in the intention of both the parties to substitute the old
with the new one, and not in the similarity/dissimilarity between the terms of the old
and new contract.[ii]
o With the creation of a new contract, the parties can excuse performance under the
original contract as mentioned under section 62 of the Indian Contract Act, 1872.

19. Agreement in restraint of Legal Proceedings

o As per Section 2(g) of Indian contracts act, A void agreement is a contract that is
not legally enforceable right from the outset.
o The reasons for an agreement to be void can be various, including illegality,
immorality, being against public policy, involving fraud or misrepresentation, and
being impossible to perform.
o Examples of void agreements are agreements to commit a crime or agreements
that are prohibited by law.

o Under section 28 of the Indian contract act, agreements that restrain either one or
both of the parties from going to the courts are not valid or void.
 o When a contract debars a party to the contract from going to the appropriate courts
or tribunals or which limits the time to approach a court is void and it comes under
agreements in restraint of legal proceedings.

20. Preventive reliefs

o Specific Relief act means an act which provides remedies for persons whose civil or
contractual rights have been violated. Whenever there is a breach of contract,
compensation or damages are provided for the same, but when the damages or
compensation are not of adequate relief then, in that case, the specific relief or
preventive relief is provided. Now understand about these terms:

o Specific relief: it means when a person does a breach of contract and when monetary
compensation fails to complete contractual obligation then specific relief is granted.

o Preventive relief: it means when a person is prevented to do an act, which is not

validly liable to do.
o Preventive relief under the Specific Relief Act, 1963 has been devised to deal & counter
a scenario where the nature of the contract is such that neither the grant of damages
nor the specific performance is unlikely to serve any purpose.

o In such cases, the court resorts to restrain the party who threatens to breach the
contract to the possible extent.

o Example: in a contract of musical performance between the performer & the other
party, the other party, can seek preventive relief to deter the performer from accepting
or entering into any other such contracts, which creates a pressure & compulsion for
fulfilling his promise.

21. Valid contract

o An agreement that is enforceable by law is a contract.
o Section 10 of the Indian contracts defines a valid contract
o A contract is said to be valid if it has the following essentials –
 Free Consent –
Link (Concept of Free Consent Under the Indian Contract Act, 1872)
 Section 13 defines consent as - when the parties to a contract agree on
the same thing in the same sense
 Section 14 defines Free consent. A consent is said to be free if its is not
caused by –
o Coercion (Section 15) (Voidable)
o Undue influence (Section 16) (Voidable)
o Fraud (Section 17) (Voidable)
o Misrepresentation (Section 18) (Voidable)
o Mistake (Section 20) (void)
 Mistake of Fact
 Mistake of Law
 Competency of the parties –
  Section 11 & 12 of Indian contracts act explains competency of the
parties
 The parties to a contract should be major i.e. 18 years of age
 Should be of sound mind
 Are not disqualified by the court of law
 Lawful objects & Lawful considerations –
The legality of the object in contract law stipulates that the consideration and
the object of a contract are considered legal except when:
o They are specifically forbidden by law.
o They are fraudulent in nature.
o The nature of the object and the consideration is such that it defeats the
purpose of the law.
o They involve injury or harm to a person(s) or property.
o They are considered immoral by the court of law.
o They are against public policy.

Forbidden by the Law

 An object and/or a consideration prohibited by law are not
considered legal and render a contract void.
 Unlawful consideration of the object means unlawful acts that
are punishable by the law.
 The acts disallowed by the appropriate authority by means of
their rules and regulations are also considered for determining
the legality.
 However, if these rules and regulations are not in tandem with
the law, they are not applicable.
 Forbidden by law provision renders a contract void but all void
contracts may not be illegal.
Fraudulent in Nature
 The object and the consideration of the contract must not be
fraudulent as then the contract will become void.
Example - A enters a contract with B where he agrees to pay B if he
embezzles money from C. This is considered a fraudulent object, and
the contract is not valid.
Defeats the Purpose of the Law
 If the purpose of entering into the contract is to go against any
provisions of law, the contract will be deemed void. The contract is
void if:
 The object of the contract is to perform an illegal act.
 The object of the contract is explicitly or in an implied
manner prohibited by law.
 The completion of the contract is impossible without going
against the provisions of the law.
Example - A enters into a contract with B whereby B promises to not
pursue legal proceedings against A if A commits a robbery in B’s house.
This contract is against the provisions of IPC law.

Involves Injury or Harm to Another Person or Property

  The object of the contract must not cause any destruction to
property or cause injury to another person.
Examples:
 Publishing a book on the life of a person without his consent.
 Destruction of property.
 Violation of licenses.
 Violation of copyrights.
e.g. - A enters into a contract with B whereby he agrees to pay a sum
of money to B if he destroys a city landmark. This contract does not
have a lawful consideration and lawful object and it is not deemed
legal.
Immoral as Per Law
 If the object and/or consideration of the contract are considered
immoral, the contract will not be deemed void.
 Immoral acts are against the reasonable and acceptable general
behavior or personal conduct accepted by society.
 Example - A lends money to B on the condition that B will divorce C,
and later get married to A. If B does not divorce C, then A cannot
pursue legal proceedings against B to recover the money. The basic
premise of this contract is immoral so it will be deemed void.

Against the Public Policy

 A lawful object in business law means that it should not be against

public policy.
 The purpose of public policy is not to curtail any individual’s rights
but to maintain and protect the general welfare of the community.

Kinds of contract that are considered to be against the public

policy:
 Entering into an agreement with a party that belongs to a country
with which India does not have peaceful relations, makes the
agreement void.
Restraining from prosecution: A contract that prohibits a person from
pursuing legal recourse is considered void.
Maintenance and Champerty: In Maintenance, a person promises to
maintain a lawsuit in which he has no vested interest. Champerty is when
a person agrees to assist another party in litigation in return for a portion
of the damages or proceeds received.
  An agreement to indulge in trafficking in public offices.
 Agreements to create monopolies.
 An agreement to brokerage marriage as a reward.
 An agreement to induce judiciary or state officials to act in a corrupt
manner and interferes with legal proceedings.
Case laws: Gherulal Parakh v. Mahadeodas Maiya & Ors. (1959):
The Supreme Court held that any agreement which was against public policy, will be
seen as an agreement injurious to person and will be deemed as void.
 Certainty and possibility of performance : The contract should not be
impossible to perform. For example, going to Moon or mars etc.
22. Privity of Contract
 ‘Privity’ is the principle followed in contract law which states that terms of a
contract are only binding upon the parties to a contract.
 They therefore cannot be enforced by a third party. This means that only parties to
the contract can sue or be sued under it. This principle emanates from the English
law.
 Privity of contract is one of the most fundamental tenets of the contract law. It
prevents vesting of any rights or liabilities with respect to the contract in any third
person who is not a party to the contract.
 The ‘Doctrine of Privity’ is based upon the English law principle of ‘Interest theory’.
 Interest theory states that a third party with respect to the contract shall not sue
under the provisions of a contract.
Essentials of Privity of Contract

A contract has been entered into between two parties:

The most important essential is that there has been a contract between two or more
parties.
Parties must be competent and there should be a valid consideration:
Competency of parties and the existence of consideration are pre-requisites for
application of this doctrine.
There has been a breach of contract by one party: Breach of contract by one
party is the essential requirement for the application of the doctrine of privity of
contract.
Only parties to contract can sue each other:
Now after the breach, only parties to a contract are entitled to sue against each
other for non-performance of contract.

Exception to the ‘Doctrine of Privity of Contract’

A Beneficiary under a Contract:

If a contract has been entered into between two persons for the benefit of a third person
not being a party, then in the event of failure by any party to perform his part, the third
party can enforce his right against the others.

Conduct, Acknowledgement or Admission:

There can also be situation in which although there may be no privity of contract between
the two parties, but if one of them by his conduct or acknowledgment recognizes the right
of the other, he may be liable on the basis of law of estoppel.
 Law of estoppel is a legal principle that prevents someone from arguing something or
asserting a right that contradicts what they previously said or agreed to by law.

Provision for Maintenance or Marriage under Family Arrangement:

This type of provision is treated as an exception to the doctrine of privity of contract for
protecting the rights of family members who are not likely to get a specific share and to
give maximum effect to the will of the testator.

Case Laws
Tweddle v. Atkinson (1861):
The ‘Doctrine of Privity’ of contract was recognized for the first time under Indian
Law.
Jamna Das v. Pandit Ram Autar Pande (1916):
The privy council stated that a person who is not a party to the agreement cannot
recover the amount owed from another party to the agreement.

23. Effect of Minors agreement : Nature of Minor’s Agreement

o An agreement entered into by a minor is considered void and has no legal effect. As
a result, it lacks any enforceable contractual obligations on both parties. Since a
contract with a minor is deemed invalid from the beginning, it is essentially non-
existent in the eyes of the law.
o Therefore, neither party is legally bound by any contractual obligations or duties
arising from such an agreement. The concept of a void minor’s agreement ensures
that the legal framework recognises the minor’s limited capacity to enter into
binding contracts, providing protection and safeguarding their rights and interests.

What are the Rules Regarding Minor’s Agreement?

The rules regarding minor’s agreement are:
An Agreement With or By Minor is Void
Section 10 of the Indian Contract Act states that a contract involving a minor is
considered void.
Similarly, Section 11 clarifies that a minor lacks the competence required for entering
into a contract.
Prior to 1903, Indian courts had differing opinions on whether a contract with a minor
was void or voidable.
Case law:
However, the Mohri Bibi v. Dharmo Das Ghose (1903) case settled this matter
definitively.
In this case, a minor borrowed Rs. 20,000 from B and provided a mortgage as security.
After reaching adulthood a few months later, the minor filed a lawsuit seeking the
cancellation and voidance of the mortgage executed during their minority. The court
ruled that the mortgage by the minor was void, and B was not entitled to any
repayment.
Absence of Ratification
An agreement with a minor is entirely void. Even upon attaining a majority, a minor
cannot ratify the agreement because a void agreement cannot be ratified. The Act of
ratification cannot confer validity on an act authorised by an incompetent person.
However, if a minor, upon reaching adulthood, makes a new promise supported by
fresh consideration, that new promise will be binding.
Minor as a Promisee or Beneficiary
A minor can be a promisee or beneficiary in a contract and have the right to enforce
such a contract. There are no restrictions on a minor being a beneficiary, such as being
a payee or promisee in a contract. Therefore, a minor is capable of purchasing
immovable property and can sue for the recovery of possession upon tendering the
purchase money. Similarly, a minor in whose favour a promissory note has been
executed can enforce it.

No Estoppel against a Minor

If a minor misrepresents their age and induces the other party to enter into a contract,
the minor cannot be held liable for that contract. Estoppel does not apply to a minor,
which means that they are not prevented from using their minority as a defence to
avoid a contract.

Specific Performance Except in Certain Cases

Since a minor’s contract is absolutely void, there is no possibility of specific
performance of such a contract. A guardian of a minor cannot bind the minor through
an agreement for the purchase of immovable property. Therefore, the minor cannot
seek specific performance of a contract that the guardian lacked the authority to enter
into.

However, a contract entered into by a guardian or manager on behalf of a minor can be

specifically enforced if:
(a) The contract falls within the authority of the guardian or manager.
(b) It is for the benefit of the minor.
(Lalchand v. Narhar 89 IC 896)
No Insolvency
A minor cannot be declared insolvent since they are incapable of incurring debts. Any
dues or debts would be payable from the minor’s personal properties, and the minor is
not personally liable for them.

Partnership
Due to their inability to enter into contracts, a minor cannot be a partner in a
partnership firm. However, under Section 30 of the Indian Contract Act, a minor can be
admitted to the benefits of a partnership.
 Minor as an Agent
A minor can act as an agent. However, they will not be held liable to their principal for
their acts. A minor can draw, deliver, and endorse negotiable instruments without
assuming personal liability.

Minor’s Inability to Bind Parent or Guardian

Without express or implied authority, an infant is incapable of binding their parent or
guardian, even for necessaries. Parents can only be held liable when the child is acting
as their agent.

Joint Contract by Minor and Adult

In a joint contract involving a minor and an adult, the adult will be held liable for the
contract, while the minor will not be held accountable. In the case of Sain Das vs. Ram
Chand, where there was a joint purchase with one of the purchasers being a minor, it
was determined that the vendor could enforce the contract against the adult purchaser
but not the minor.

Surety for a Minor

In a contract of guarantee where an adult acts as a surety for a minor, the adult is
liable to the third party as there is a direct contract between the surety and the third
party.

Minor as Shareholder
Since a minor cannot enter into a contract, they cannot become a company
shareholder. If a minor mistakenly becomes a member, the company has the right to
rescind the transaction and remove the minor’s name from the register. However, a
minor, acting through their lawful guardian, can become a shareholder by transferring
or transmitting fully paid shares.

Liability for Necessaries

The provision for necessaries supplied to a minor or to a person whom the minor is
legally bound to support is governed by Section 68 of the Indian Contract Act. A claim
for necessaries supplied to a minor is enforceable by law. However, a minor is not
personally liable for the price he may have promised and is only liable for the value of
the necessaries. The minor’s property, not the minor personally, is liable.

To hold the minor’s estate liable for necessaries, two conditions must be met:
(a) The contract must be for goods reasonably necessary for the minor’s support
according to their station in life.
(b) The minor must not already have a sufficient supply of these necessities.
24. Liquidated damages
 Liquidated damages are damages that are included in a contract to compensate for a
potential breach of the contract.

This means that the party or parties who are injured by such a breach will be
compensated for their injury.

The exact amount of damages to be awarded is commonly stated in a liquidated

damages clause, though that is not required.

If the amount is not specified, it is considered “at large,” meaning that a court or other
tribunal will determine the appropriate amount to award if and when a breach actually
occurs.

Reasonableness of the Amount

To enforce the reasonableness of the amount of damages specified in such a clause,
courts look to what would have been considered reasonable when the contract was
formed, as opposed to when the breach actually took place. If the amount of liquidated
damages specified ends up being severely overestimated, compared to the actual
harm incurred, then the courts generally find the amount to be more of a punishment
than an estimate.
Benefits of a Liquidated Damages Clause
Establishes some level of predictability, even if it is not precise, and can therefore act
as a kind of insurance against a potential breach.

The parties are able to measure the cost of actually performing their duties against
what it would cost them if a breach actually happened.

25. Declaratory decree

o The declaratory decree is a means to provide relief to someone who is being denied
rights or titles to which he/she is entitled.
o The Specific Relief Act, 1963 (SRA) provides such relief under Sections 34 and 35.

Section 34 - Discretion of Court as to Declaration of Status or Right

o Any person entitled to any legal character, or to any right as to any property, may
institute a suit against any person denying, or interested to deny, his title to such
character or right, and the court may in its discretion make therein a declaration
that he is so entitled, and the plaintiff need not in such suit ask for any further relief.
Explanation —A trustee of property is a “person interested to deny” a title adverse to
the title of someone who is not in existence, and for whom, if in existence, he would be
a trustee.
Points for Consideration:
o It is a binding declaration under which the court declares some existing rights in
favour of the plaintiff and declaratory decree exists only when the plaintiff is denied
his right which he is entitled to.
o This provision encourages the plaintiff to come forward to enjoy the rights to which
they are entitled and if any defendant denies providing any rights for which the
plaintiff is entitled, then it gives them the power to file the suit and get special
relief.
 Requirements Relief of Declaratory Decree
o The Plaintiff has to prove that the defendant has denied or is interested in denying
the character or title of the Plaintiff and the Plaintiff has to establish that there must
be some present danger to his interest.
Section 35 - Effect of Declaration
A declaration made under this Chapter is binding only on the parties to the suit,
persons claiming through them respectively, and, where any of the parties are trustees,
on the persons for whom, if in existence at the date of the declaration, such parties
would be trustees.
o The present provision lays down that the declaration made under Section 34 is
binding on:
 The parties to the suit.
 Persons claiming through them.
 Trustees, where any of the parties are trustees, on the persons for whom, if in
existence at the date of the declaration, such parties would be trustees.

26. Anticipatory Breach of Contract (Section 39)

A breach is a failure by a party to fulfil the obligations under a contract. It is of two types,
namely, anticipatory breach and actual breach. In this article, we will focus on
understanding both types of breaches with the help of some examples.

The anticipatory breach of contract is specified under Section 39 of the Indian Contract
Act, 1872. It states: “When a party to a contract has refused to perform or disable himself
from performing, his promise in its entirety, the promisee may put an end to the contract,
unless he has signified, but words or conduct, his acquiescence in its continuance.”

As the name suggests, an anticipatory breach is a breach of contract before the time of
performance. So, if a promisor denies to perform his promise and signifies his
unwillingness before the time for performance, then it is an anticipatory breach of
contract.

The promisor can convey his unwillingness either by:

 Expressing it in words (spoken or written)
 Implying it by his conduct

When a promisor refuses to perform his promise leading to an anticipatory breach of

contract, the promisee is excused from performance or from further performance of his
obligations. Also, he can either:
 Treat the contract as cancelled and file a suit against the other party for damages
arising from the breach. This suit can be filed immediately without waiting until the
date of performance specified in the contract.
[OR]
 Choose not to cancel the contract but treat it as an operative and wait until the time of
performance has passed before holding the other party responsible for the damages
caused due to non-performance. However, he will need to keep the contract alive for
the benefit of all parties involved.
 27.Lapse of offer
28.Provisional acceptance
29. Coercion
 Section 10 of the Indian Contract act 1872 specifies the essentials needed for a valid
contract.
 One of the essentials is that parties should enter into a contract with their free consent.
 Section 14 of the Indian Contract act says that consent is said to be free when it is not
caused by Coercion, Undue Influence, Fraud, Misrepresentation or mistake.
 So if the consent has been caused by these mentioned factors, then the contract
formed is not the valid one.
Meaning of Coercion
 Coercion has been defined in Section 15 of the Indian contract act,
“Coercion is the committing or threatening to commit, any act forbidden by Indian
Penal Code, or the unlawful detaining, or threatening to detain, any property, to the
prejudice of any person whatever, with the intention of causing any person to enter
into an agreement.”

We can analyse from this section that coercion is said to have taken place
where the consent has been caused either by:
1. Committing, or threatening to commit any act forbidden by IPC; or by
2. Unlawful (illegal) detaining or threatening to detain any property.

15 marks
1. A stranger to a contract cannot sue but a stranger to a consideration can sue. Explain
2. Two are more persons are said to consent when they agree upon the something in the
same sense. Explain this statement with illustration.
3. Explain briefly about the specific performance of contracts
4. All contracts are agreements, but all agreements are not contracts. Discuss
5. Explain the effects of agreement with a minor under the Indian contract act.
6. IMPORTANT: What the various modes of discharge of contract
7. Discuss the remedies for breach of contract and kinds of damages

10 marks
1. A is a minor represents to B that he is a major and borrows a sum of 1,00,000 from B and
deposits it in a bank account , subsequently A becomes major. B sues for recovery of the
amount decide
2. D lived as a paying boarder with a family. He agreed with the members of the family to
share prize money of a newspaper competition. The entry sent by D won a Price of $750.
He refused to share the amount won. Can the members of the family recover their shares
3. A and B two hindu brothers decided the family property between them and agreed a the
time of partition that they should contribute a sum of Rs. 10000 in equal shares and invest
it in the security of the immovable property and pay the interacts towards the
maintenance of their mother. Can the mother compiles her sons to have the amount
invested as settled in her favour.
4. X a physician practicing in New Delhi. Took Y as his assistant for three years during which
Y agreed not to practice of his own in New Delhi. At the end of a year from the date of
agreement with X, Y began his own independent practice while still in service. Has X any
legal remedy against Y.
5. A offers by a letter to sell his car to B for Rs 50,000. B at the same time offers by Letter to
buy A’s car for 50,000. Both A and B received the respective letters. Is there a concluded
contract between A and B
6. A Muslim lady sued her father in law to recover the arrears of allowance payable to her by
him. Under an agreement between him and her own father in consideration of her
marriage. Will she succeed.
7. A sold some land to B. at the time of the sale both parties believed in Good faith that the
area of the land sold was 10 hectare. It however, it turned out that the area was 7
hectares only. How is the contract affected. Give reasons.
8. A left his carriage on Bs premises. B’s landlord seized the carriage as distress for recent. A
paid the rent to obtain the release of his carriage. Can A recover the amount from B
9.