Model

AnswerPaper
CONTRACT–I( Course—I)
(
General
pri
nci
plesofcontract
s)

Q.NO.1 Def
ine‘
cont
ract
”.Descr
ibet
hev
ari
ousr
equi
sit
esofav
ali
d
cont
ract
.

Lawmeansa‘ setofr
ules’
whi
chgov
ernsourbehav
iour
sand
r
elat
ing i
nacivi
l
izedsoci
ety.

Oneshouldknowt
hel
awt
owhi
chhei
ssubj i
ectbecause“gnor
anceofl
awi
sno
excuse”
.

Sour
cesofMer
cant
il
eLawi
nIndi
a
Engl
i
shMer
cant
il
e I
ndi
anSt
atusLaw Judi
cial
Deci
sions Cust
omsandUsages

Commencementandappl
i
cabi
l
ity
:-

ShortTi
tl
e Ext
entand commencement
TheIndi
ancont
ractAct1872 Appl
icabletowholeI
ndi
an Fi
rstdayofSeptember
exceptthestateofJammu&Kashmi
r 1872(1stSept1872)

. Priortot hisEngl ishl awofcont r

actwasf ol
lowedinI ndi
a
Lawofcont r
actcr eatesjusinpersonem andnoti njusinrem.
TheI ndianCont ractActconsi stsofthefoll
owingtwopar ts:
(a)General Princi
plesoft heLawofCont ract
.
(b)Specialkindsofcont racts.
Thegener alprinci palsoftheLawofCont r
actarecont ai
nedinSections
1to75oft heI ndianCont ractAct .Thesepr i
nci
plesapplytoal lki
ndsofcontracts
i
rrespecti
veoft heirnature.
Speci al contractsar econtainedinSecti
ons124t o238oft heI
ndian
ContractAct.Thesespeci al cont ract
sar eI
ndemnity,Guarantee,Bai
lment,pl
edge
andAgency .

Cont
ract
sasDef
inedbyEmi
nentJur
ist
s
1.“
Ever yagreementandpromiseenforceabl
eatlawisacontract
.”–Poll
ock
2.“
ACont r
actisanagreementbetweent woormor eper
sonswhichisint
ended
tobe
Enforceabl
eatl awandiscont
ractedbytheacceptancebyonepartyofanoff
er
madet o
Him bytheot herpar
tytodoorabstainfr
om doi
ngsomeact .”–Halsbury
3.“
Acont r
actisanagreementcreat
inganddefi
ningobli
gati
onbetweenthe
parti
es”–
Sal
mond

Cont
ract2(
h):
-Anagr
eementenf
orceabl
ebyLawi
sacont
ract
.
Sec.
10:-
“
Allagr
eement
sar
econt
ract
s,i
ftheyar
emade–
byfreeconsentoft heparti
es,
competenttocont
ract
,
foralawfulconsiderati
onand
withalawfulobject,and
notherebyexpresslydeclar
edtobevoid.
”

ESSENTI
ALSOFAVALI
DCONTRACT
Of
fer+acceptance=Pr omi
se+consi
derat
ion
=
Agreement
+
Enfor
ceabili
tyByLaw=contr
act

1.Pr
operof ferandproperacceptancewi t
hint
entiontocreat
elegalr
elat
ionshi
p.
Cases;-AandBagr eet ogot oamov i
eoncomi ngSunday .Adoesnotturn
i
nr esult
inginlossofB’ stimeBcannotcl aim anydamagesf rom Bsince
theagreementt owat chamov i
eisadomest icagreementwhichdoesnot
resul
tinacontract
.
I
ncaseofsoci alagreementt her
eisnointenti
ontocreatel
egalrel
ati
onshi
p
andtheretheisnocont r
act( Bal
fourv.Bal
four
)

Incaseofcommercialagr
eements,
thel
awpr
esumet
hatt
hepar
ti
eshad
t
hei
ntent
iont
ocreat
elegalrel
ati
ons.
[
anagr
eementofapur
elydomest
icorsoci
alnat
urei
snotacont
ract]

2.Lawf
ulconsi
der
ati
on:-consi
der
aton mustnotbe unl
i awf
ul,i
mmor
alor
opposedt
othepubl
i
cpol
i
cy.
3.Capacity
:-Thepar t
iest oacont ractmusthavecapacit
y(legalabil
ity
)tomake
val
idcontract
.
Secti
on 11:-oft he Indian cont r
actActspecifyt hatev ery person i
s
competenttocontr actprovided.
(i
)Isoftheageofmaj orityaccor dingtotheLawwhichhei ssubject,
and
(i
i
)Whoi sofsoundmi ndand
(i
i
i)Isnotdisquali
fi
edfrom cont ractingbyanyl
awtowhi chhei ssubject.

Per
sonofunsoundmi ndcanenteri
ntoacontr
actdur
inghisl uci
dint
erv
al.
Anali
enenemy,f
oreignsoverei
gnsandaccr
edit
edrepresentati
veofa
f
orei
gnstat
e.I
nsol
ventsandconvictsar
enotcompetentt
ocont ract.

4.Fr
eeconsent
:-consentofthepar
ti
esmustbegenui
neconsentmeansagr
eed
uponsamethi
ngint hesamesensei
.e.t
her
eshouldbeconsensus–ad–
i
dem.
Theconsenti
ssai
dtobef
reewheni
tisnotcausedbycoer
cion,
unduei
nfl
uence,
f
raud,
misr
epr
esent
ati
onormi
stake.
5.Lawfulobj
ect
Theobjectofagr eementshoul dbelawf ulandlegal.
Twoper sonscannotent erintoanagr eementtodoacr iminalact
.
Consi
der at
ionorobj ectofanagr eementi sunl
awf uli
fit
(a)Isforbiddenbyl aw;or
(b)Isofsuchnat uret
hat ,i
fpermi t
ted,woulddef eattheprovisi
onsof
anylaw; or
(C)isfraudulent;or
(d)Involvesori mpli
es,inj
urytopersonorpr opert
yofanot her;or
(e)Cour tregardsitasimmor al,
oropposedt opublicpoli
cy.

6.Possibi
l
ityofper
for
mance:
Thetermsoftheagr
eementshoul
dbecapableofper
for
mance.
Anagreementstodoact
,impossi
blei
nit
sel
fcannotbeenf
orced.

Exampl e:Aagr eestoBt odiscovertreasurebymagi c.Theagreementi s

voidbecauset heacti nitsel
fisimpossi bl
etobeper f
ormedf r
om t hevery
beginning.
7.Thet ermsoft heagr eementsarecertainorar ecapableofbeingmadecer t
ain
[
29]
Exampl e:Aagr eedtopayRs. 5lakht oBf orul
tra-
moder ndecorati
onofhi s
drawingr oom.Theagr eementi sv oi
dbecauset hemeani ngoft heterm
“ult
ra–moder n”isnotcertai
n.
8.Notdecl aredVoi d
Theagr eementshoul dbesucht hatitshouldbecapableorbeingenf or
ced
bylaw.
Certainagr eement shavebeenexpr essl
ydeclaredill
egalorvoi
dbyt helaw.

9.Necessar ylegalf
ormalit
ies
Acont ractmaybeor alori
nwr i
ting.
Wher eapar ti
culart
ypeofcontractisrequi
redbylawtobeinwr i
tingand
regi
stered,itmustcompl ywit
hnecessar yformal
iti
esastowri
ting,
registrat
ion
andattestation.
Iflegalformali
ti
esarenotcarr
iedoutt henthecontr
acti
snotenfor ceabl
e
bylaw.

Exampl
e:Apr
omi
set
opayat
ime.Bar
reddebtmustbei
nwr
it
ing.

Agr
eementisawiderter
mt hancontr
actwher
easal
lcont
ract
sar
e
agr
eements.Al
lagr
eementsarenotcont
racts.

Thusweseet hatanagreementmaybeormaynotbeenf
orceabl
ebyl aw,
andso
al
lagreementarenotcontract
.Onl
ythoseagr
eement
sarecontract
s,whichar
e
enfor
ceabl
ebylaw,Inshort
.
Hence,wecanconcl
ude“
Allcont
ract
sar
eagr
eement
,butal
lagr
eement
sar
enot
cont
racts.
”
Cont
ract
s=Agr
eement+Enf
orceabi
l
itybyLaw
 Dist i
nctionbetween Cont
ract Agr
eement
Cont ract&Agr eement
Basis
.Section: Sec.2(h) Sec.2( e)
.Def ini
ti
on .
Acont r
acti sanagr eement . Everypr omi seorev erysetof
.Enf orceabili
ty: enforceablebyl aw. promi ses forming
.Interrel
at i
onship: .
Every contract is consider ati
onf oreachot her
.Scope: enforceable i
sanagr eement s.
.Val i
dity: .
A cont r
act i ncludes an . Every pr omi se i s not
.Legal : agreement . enforceabl e.
.Obligation .
Thescopeofacont ractis. An agr eement does not
l
imited,as i ti ncludes onlyincludeacont ract.
commer ci
al agreement s. .I
tsscopei sr elat
ivel
ywi der,
.
Onl ylegalagr eement s are as i ti ncludes bot h social
cal
ledcont racts. agreementand commer cial
.
Every cont ractcont ains a agreement s.
l
egal obli
gation. .Anagr eementmaybebot h
l
egal andi ll
egal .
.I
tisnotnecessar yforev ery
agreement t o hav e legal
obligati
on.

Q.
No.
2Def
ineTy
pesorcl
assi
fi
cat
ionofcont
ract
s.Expl
aint
he
essent
ial
sandr
ulesofVal
i
dPr
oposal
(Of
fer
)wi
thi
l
lust
rat
ions.

(
Mar
ks:
15)
Typesorcl
assi
fi
cat
ionofcont
ract
s
 Vali
d:anagr
eementwhichhasal
ltheessent
ial
element
sofa
contr
acti
scall
edaval
idcontr
act
.

 Voi
d:(
sec.
2j)I
tisacont
ractwhichceasestobeenf
orceabl
eby
l
aw.Acontr
actwhenordi
nari
lyenter
edintomaybevali
dorbindi
ng
ont
hepart
ies.I
tmaysubsequentl
ybecomev oi
d.

 Voidabl
e:(
sec.2(i
))Anagreementwhichisenf
orceabl
ebylawat
theopti
onofoneormor eofthepart
iestheret
o,butnotatt
he
opti
onofotherorother
sisav oi
dabl
econtract
.

I
ll
egal
cont
ract:
Acont
racti
sil
l
egal
ifi
tisf
orbi
ddenbyl
awori
sof
 suchnaturet hat
,ifper
mitt
edwoulddefeattheprovisi
onsofany
l
awori sfraudulent;ori
nvolv
esorimpli
esinjur
yt oapersonor
properl
yofanot herorcour
tregar
dsitasimmor taloropposedto
publi
cpolicy.Theseagreementsarepuni
shablebyl aw.Thesear
e
void-
ab-i
niti
o.

“Al
li
ll
egal
agreement
sar evoi
dagr
eement
sbutal
lvoi
d
agr
eementsarenoti
l
legal”
.

 Unenforceablecontr
act:whereacont r
actisgoodinsubstance
butbecauseofsomet echni
caldefectcan’
tbeenforceabl
ebylaw
i
scalledunenf or
ceablecont
ract.Thesecontr
actsareneit
hervoi
d
norvoidable.

ONTHEBASI
SOFFORMATI
ON

a.Expr
esscont
ract

b.I
mpl
i
edcont
ract
.

c.Quasi
cont
ract
.

ONTHEBASI
SOFPERFORMANCE

a.Execut
edcont
ract
.

b.Execut
orycont
ract
.

c.Uni
l
ater
alcont
ract
.

d.Bi
l
ater
alcont
ract
.

PROPOSAL:

Sect
ion2aoft
heI
ndi
ancont
ractActdef
inespr
oposal
as:

onepersonsigni
fi
estoanotherhiswi
ll
ingnesstodoorto
abstai
nfrom doi
nganyt
hing,wit
hav i
ewofobt aini
ngthe
assentofthatot
hert
osuchactorabstinence,saidtomake
aproposal.Thet
erm‘pr
oposal ‘
i
sequivalentt
otheterm
‘
offer’
.

Sect
ion2(
b)def
ines“
promi
se”
.
 Sect
ion2(
c)def
ines“
promi
sor
”or“
promi
se”
.

Sect
ion2(
f)def
inesr
eci
procal
promi
ses.

The“
proposal
”accept
edbecomesa“
promi
se”
.Apr
oposal
–

1)Theper
sonmaki
ngi
tsi
gni
fi
eshi
swi
l
li
ngnessordesi
ret
o
anot
her
.

2)Thiswil
li
ngnessist
heexpressi
onofdesi
ret
odoort
o
abstai
nfrom doi
ngsomething.

3)Obj
ectoftheexpressi
onoft
hiswil
li
ngnessistoobtai
n
t
heassentofthatothert
osuchactorabsti
nence.

REQUI
SITESOFAVALI
DCONTRACT

1)Pur
poseofof
fer
:Theof
ferasdef
inedi
nsect
ion2(
a)has2pur
poses:

a)Anexpressi
onofof
fer
or’
swi
l
li
ngnesst
odoort
oabst
ainf
rom doi
ng
somet
hing.

b)Iti
smadewi t
hav i
ewt oobt
aini
ngt
heassentoft
heof
fer
eet
othe
proposal
actorabst
inence.

2)I
ntensi
on:Theof
ferari
sesfr
om theint
ensi
on.I
tisnotdefi
nedin
I
ndi
anCont r
actAct
,1872.Sect
ion2(a)usestheword“wi
ll
ingness”
whi
chisequaltoi
ntensi
on.

 Theoffermustbemadewit
hwil
li
ngnesst
odobusi
nessont
he
proposedter
msandcondi
ti
ons.

 Theuseoft heword“ wi
ll
i
ngness”showsthati
ntensionstobe
boundbythepr oposalwhenaccept
edareanintegralpar
tofthe
conceptofagreement.

 Thepart
ywhoof
fer
smustknowt
hel
egal
consequencesoft
he
off
er.

 Anof
ferori
tsacceptanceshoul
dbemadewi
tht
hei
ntensi
onsof
cr
eat
ingl
egalr
elati
ons.

 Thet
estofi
ntensi
oni
sobj
ect
ivenotsubj
ect
ive.
  Theint
ensi
onoft
hepart
iesi
snatur
all
ytobeknownfr
om the
ter
msoftheagr
eementandthesur
roundi
ngci
rcumst
ances.

3)Legalconsequences:anof
fermustbeint
endedtocreatelegal
rel
ati
onsandmustbecapabl eofcr
eati
nglegalrel
ati
ons.Off
eristhe1st
stepofagreement.Whenanagreementisenfor
ceablebythelaw,then
onlyi
tbecomescont ract
.

4)Assentoftheotherpart
y:Theproposalmustbemadewi t
hav i
ewto
obtai
ningtheassentoftheotherpar
ty.Si
ncethecontractr
equi
res
“consensusadidem”(consentatthesametime)unlesstheoff
ereei
s
awareoft heof
fer,
ther
ecanbenoaccept anceandconsequentlyno
contract
.

5)Ter
ms:theter
msofanof fermustbedefi
nit
e.Uncer
tai
n,i
ndef
ini
te
andambi
guousofferdonotconst
it
uteval
i
dcont r
act
s.

6)Offermustbeaddr essed:anoffermustbeaddr essedtotheworldat

l
argeort oaspecifi
cperson.Anof feraddressedtotheworl
discal
led
“generaloff
er”andanofferaddressedt oaspecifi
cpersoni
scall
ed
“specif
icoffer
”.Anoff
ercan’ttakeeffectsoast ocreat
eabindi
ng
contract,
unlessanduntil
ithasbeenbr oughttotheknowledgeofthe
persontowhom i ti
smade.

7)Wor dsorconduct
:Anoffermaybemadebywor dsofmout horby
writ
ingoritmayevenbemadebyconduct .Amongthese3way s,
the
off
ermadebywr i
ti
ngisconsideredalwayst
hebest
.Anof f
erwhichi
s
madebyconducti scal
ledan“ i
mpliedoff
er”
.Anoff
erwhichis
expressedbywords,wri
tt
enorspokeni scall
ed“
expressoff
er”
.

(
Sect
ion9oft
heI
CA,
1872.
)

8)Communi
cat
ion:
anof
fermustbecommunicat
edt
otheof
fer
ee.
Communi
cat
ionmaybedonei
nfoll
owingway
s.

i
)Inper
son:
a)bywor
dsofmout
h;b)bywr
it
ing;
c)byconduct
.

i
i
)Bypost

i
i
i)Byt
elephone

i
v)Byt
elegr
am.
v
)Byt
elex.

v
i)Byi
nter
net
.

v
ii
)Bye-
mai
lwebsi
te.

v
ii
i)Byr
adi
oort
elev
isi
on.

i
x)Byf
ax.

x)BySMSet
c..
.

9)Inv
itat
iontooffer
:inv
itati
onforofferi
sdiff
erentf
orm oflegalof
fer.I
t
i
sjustanenquiry.Themer estat
ementofpricesinacatalogueisan
exampleofinvi
tati
ontooffer.Cat
alogueisnotanoffer
.Itisaninvi
tat
ion
tooff
er.

Bal
fourv
/sBel
four(
1919)2KB57

 Anof
fermustbedi
sti
ngui
shedf
rom i
nvi
tat
iont
oof
fer
.

 Aprospect
usissuedbyacompanyforsubscr
ipt
ionofi
tsshar
es
byt
hepublic,
isaninvi
tat
iont
ooff
er.

 Theof
fermustnotcont
ainat
ermthenon-compl
i
ancesofwhi
ch
maybeassumedtoamounttheaccept
ance.

Crossoff
ers:where2part
iesmakeidenti
calof
fer
stoeachother
,in
i
gnoranceofeachother
’soff
er;
theoff
ersareknownascrossoff
ersand
neit
herofthe2canbecall
edanacceptanceoftheot
herandther
efore
ther
eisnocontract
.

Q.
NO.3“
A”outofnat
ural
lov
eandaf
fect
ionpr
omi
sest
ogi
vehi
sson.
“
B”Rs.1,
000underar
egi
ster
eddocument
.Isi
tav
ali
dcont
ract
?

 Yes.
I ti
sav al
i
ddocument /contract.
I ti
senforceableunderthelaw.
 Reasons:-Sec2( d)def
ines:considerat
ion-somethi
ngwhi chisof
somev al
uei ntheeyeoflaw.
I
tmayconsisteitherofsomer i
ghts,int
erest,pr
ofit
,benef
itaccrui
ngto
onepart
yorsomef orbear
ance,detri
ment ,
lossorresponsibi
li
tygi
ven,
suff
eredorunder t
akenbyt heotherathi srequest.
Anagreementmadewi thoutconsi derationisenforceabl eu/these
occasions.
 Sec25: -1)promiseduet onat urallove&af f
ect i
on( sec25( 1))
“A”ismadei nf avourofnearr elati
ononaccountofnat uralloveand
aff
ecti
ont hesamei sv ali
d.Event hought her
ewasnoconsi derat i
onfor
suchapr omise.
Iti
slawfulandbi nding.
i) Thepar ti
estot heagreementmustbest andi nginanear
r
elati
onshi ptoeachot her .Father–son
ii
) I tismadeby“ A”(Father)par tyoutofnat ural l
ove&af fecti
onfor
t
heson’ B’’
ii
i) Thepr omiseshoul dbei nwr i
ti
ng&r egi
stered.Her eitis
r
egistereddocument .
Eg: -Gif
tdeeds. ..
TheRegi strati
onact ,1908&t heI ndianstampact 1899ar eappl i
cabl
e.

Q.
No.4Sol
vet
hef
oll
owi
ngpr
obl
em:

I
naself-
ser
vicedepartment
alstorea(“Z”
)customerpicksup
t
hebookandgoest othecashcountertopayforit
.Cashi
er(x)refuses
t
osell
.“X”wantst
osuebr eachofcontract
.Canhehasr i
ghtagainst
t
hecashier
?
(
Marks:
5)

-NO.
-hehasn’tri
ghtagainstthecashier.
-becauseitisaninv i
tat
iontoofferandnotanof f
er.
-i
nt endi
ngtooffer.Nof i
nalwil
li
ngnessfrom thesideofcashier.
-thereisnoconsensusadi dem bet
weent hem.(
nocontractualobli
gat
ion
arisesb/wthem) .
-i
nv it
ati
ontooff
eri sdif
ferentf
rom alegaloff
er.

OFFER I
NVI
TATI
ONTOOFFER

1)I
ntheof f
er,
theoffer
erhas 1)Inthis,t
hepar
tyhasnosuch
wi
ll
ingnessorint
ensiont
ohav
e i
ntensionsorwil
l
ingnesst
ohave
t
hecontract
. contr
act .
2)Thepersonmaki
ngtheproposal
is 2)Thepar tywhohasar rangedt
he
cal
ledthe art
iclesoradvert
isedinanymedia
off
eror
/promi
sor
/pr
oposer. can’tbetermedas
off
er or
/promisor
/proposer.

3)Aninvit
ationtooff
ermaybe
3)Anoff
er,whenaccept
edbecomes
changedasof fer,
butcan’
tbecome
apr
omi se.
asapr omise.i
tisonl
yanenquiry
.

4)Thepar
tyneednotsigni
fyhi
s
4)Inthis,
theof
ferormustsi
gni
fyhi
s i
ntensi
onorwil
li
ngness.
i
ntensionorwil
l
ingness.
5)Ther
earenosuchdivi
sions
5)Anoffermaybeclassi
fi
edintoi
) amongtheinv
itat
iont
ooffer.
gener
alofferandi
i
)speci
ficoff
er.
6)Aninv
itat
iontooff
erdoesnot
6)Anoffercontai
nsl
egal cont
ainl
egal r
equi
rement
s.
requi
rements.

Q.NO.5 Whati
sfr
eeconsent
?Explai
ninbr
iefwhenthe
consenti
ssai
dtobefr
eeaccordi
ngtotheI
ndiancontr
actact
,
1872?

Accordingt oSect i
on13.Twoper sonsar esaidtohav econsent edwhen
theyagr eeuponsamet hi
ngi nthesamesense.
I
nEngl ishl aw, t
hisiscall
ed‘consensus–ad–i dem’
Effectofabsenceofconsent :
Whent hereisnoconsentatal l,t
heagr eementisv oi
d–ab–i ni
ti
o’.
Itisnotenf or
ceableattheopt ionofeitherpart
y
Exampl e1: -
Xhav etwocaroneMar uticarandoneHondaci t
ycar.Ydoesnot
knowt hatXhast wocar sYof ferstobuycaratRs. 50,000.Her e,
ther eisnoi denti
tyofmi ndi nr espectofthesubjectmat ter.Hence
ther eisnoconsentatal landt heagr eementisvoid–ab–i ni
to.
Exampl e2: -
AnI l
li
teratewomansi gnedagi ftdeedt hi
nkingthatitwasapower
ofat torney–noconsentatal landtheagr eementwasv oid–ab–
inito[BalaDev iVS.Manumdat s]
Freeconsent
⇒ Consentissaidt obef reewheni
tisnotcausedby[
Sect
ion14]
(
a)Coercion[Section15]
(
b)Unduei nfl
uence[ Secti
on16]
(
c)Fraud[Section17]
(
d)Misrepresentation[Secti
on18]
(
e)Mistake[Section20, 21,22]

Eff
ectofabsenceofFreeConsent:-I
fconsentcoer
cion,
unduei
nfl
uence,
fr
aud,Misr
epresent
ati
onthecontracti
svoidabl
eattheopti
onofpar
ty
whoseconsentwasnotf r
ee[19,19A]

Coer
cion(
sect
ion-
15)
For
ce,compul
sion,
treat
sofviol
ence.(Voidabl
e)
Duressi
smoresev er
ethancoercion.

Essentialelement sofcoer cion:-

(a)Commi t
ti
nganyactwhi chi sf orbiddenbyt heI PC
(b)Threat eningt ocommi tanyactwhi chisforbiddenbyt heI PC.
(c)Unlawf uldet ai ningofanypr oper tyor
(d)Threat eningt odet ainanypr oper ty
(e)Coer ci
onneednotnecessar ypr oceedsf r
om par tytocont ract.
(f)Coercionneednotnecessar yi sdi r
ectedagai nsttheothercont ract
ing
party.
(g)Iti
si mmat er i
al whet hert heIPCi sori snotinforceatt het i
meorat
the
Placewher et hecoer ci
oni sempl oy ed[BayofBengal capt ion)
(e)Theconsenti sobt ainedbyt hreatofanof fence&t heper soni s
forcedtogi vehi sconsent .
(f)Iti
smai nl
yofaphy si
cal character
(g)Thef reedom ofwi lli
simpai red
(h)Iti
sofav iolentchar acter
(i
)Thebur denofpr oofl iesuponpl aintiff
(j
)Itmustbeut teredwi t
ht heint entionofcausi ngPlainti
fftoent erint
o
anagr eement .
 Thr eatt ost rikeisnocoer cion.
 Compul sionofl awi snotcoer cion.

Eff
ectofthr
eattofi
leasui
t:-At
hreatt
of i
leasuit(
whethercivi
lorcour
t)
doesnotamounttocoerci
onunl
essthesuiti
sonf al
secharge.Threatt
o
fi
l
easuitonf al
sechar
geisanactfor
biddenbytheIPCandt huswill
amounttoanactofcoerci
on
 Effectofthr
eattofi
leasuit:
-At hreattofi
leasuit(
whethercivi
lorcour
t)
doesnotamountt ocoercionunlessthesuiti
sonf al
secharge.Threatt
o
fi
leasuitonf al
sechargeisanactf orbi
ddenbytheIPCandt huswill
amountt oanactofcoercion
Eg:-
Ahusbandi nducedhiswifetoenterintocont
ractu/athr
eatof
commi tt
ingsuici
de.[
Chikham Ammi r
ajuvseshama]

EnglishLaw-Dur essdoesnoti ncl

udedet aini
ngofpr oper
tyorthreatto
detainpr opert
y.
-Dur esscanbeempl oyedonlybyapar tytothecontr
actorhisagent.
-itmustbeai medagai nsttheli
feorl i
bertyofthepersonormember sof
hisfami ly.
-i
tmustbesuchast ocausei mmedi ateviol
ence.
-i
tmustbesuchast oaffectamanawi thordinar
yfir
mnessofmi nd.
Effect:-whencoercionisempl oyedtoobt aintheconsentofapartythe
contracti svoi
dableattheopt i
onofthepar t
ywhereconsentwas
obtainedbycoer cion.

Unduei
nfl
uence(secti
on-
16)
Sec19(
A)(voidabl
e)
Meani ngofunduei nfl
uence:-domi natingthewi l
loftheot
herper
sonto
obtai
nanunf airadvantageov ertheothers.
(a)Wher ether el
ati
onsubsi st
ingbet weenthepar t
iesmustbesuchthat
onepar tyisinpositiontodomi natethewi l
loftheother.
(b)Thedomi nantpar t
yusehi sposi ti
on.
(c)Obt ainanunf airadv antageov ertheother.
Nothingi nt hi
ssub- sectionshal l
affecttheprovi onsofsec111oft
si he
I
ndianEv idenceact .
Unduei nfl
uence[ Section16]
No.Pr esumpt i
onofDomi nati
onofwi l
l
:-

Pr
esumpt i
onofdomi nat
ionofwill
:
- Exampl es
Circumstances
Wher e he hol ds a realorappar ent Masterandser vant,parentand
authori
tyovert heot
her chil
d,I ncome Tax of ficer and
Wher e he standsin a Trustfiduciary assesses pr i
ncipal and a
(benefi
t)r
elationtotheother Tempor aryTeacher .
Ment al Capaci t
y of a per son i s Trusteeandbenef i
ciar
yspi r
itual
temporari
lyorper manentef f
ected by Gur uandhi sdisciples,soli
citor
s
reason ofage,i ll
ness orment alor andcl i
ents.Guardianandwar ds
bodi
l
ydi
str
ess Rel
ati
onship bet
ween medi
cal
at
tendantandwar
d.

-I
nvol
vesuseofmor
alf
orce(
ment
alpr
essur
e)
-Obtainanunf airadv ant age( i
nt ent i
on)
-Notcr iminal l
yl i
abl e
-Betweent hepar t
iestot hecont ract
-Onepar tydomi nat etheot herpar ty
-Voidabl eorcour tsetasi de
-Benef i
t–or derofcour t–Back
Landl or dandTenant
Cr edi torandDebt or
Husbandandwi f
e( ot hert hanPar danashi n)
Pr incipal andAgent
-I tisofmor al/psy chol ogi cal nat ure.
- Theper soni ndomi nat echar acterexpl oitstheweakerper son.
- Thecont racti seitherv oidabl eort hecour tmayenf orceitina
modi fiedf orm.
-I tisb/ wt hepar tiest ot heagr eement .
- Unconsci onabl ebar gai ns.
- Ur gentneedofmoney ,nodi stress
- St atut orycompul si on, nodi st r
ess.
- Sec30, thespeci ficr eliefact ,1963suchr eli
efisgr antedtor estore
whi chmayhav erecei vedf ormt heot herpar ty&t omakeany
compensat iontohi m whi chj usticemayr equir
e.
Exampl e:
- Aappl iest oabankerf oral oanatat imewhent herei sstri
ngency
int hemoneymar ket .Thebankerdecl i
nest omaket hel oanexcept
atanunusual l
yhi ghr ateofi nterest.Aaccept st heloanont hese
ter ms.Thi si sat ransact ioni ntheor dinarycour seofbusi ness, and
thecont r
acti snoti nducedbyunduei nfluence.
Exampl e:
- Aspi ritual gur uinducedhi schel at odonat eallhisproper t
ytot he
ashr am andsai dt hati nr etur nofi t,hewi l
lcert
ainlygetsal vati
on.
Thechel adi dthesame.Hel d, thatt hisisacase, ofundue
influencesoi tbecomesv oid.

Fraud(sect
ion17)
Sec19(voi
dabl
e)
Thet
ermf
raudmeansat
aker
epr
esent
ati
onoff
act
smadewi
l
f ywi
ul
l tha
vi
ewt
odecei
vet
heot
herpar
ty,
dishonestt
ri
ck,
cri
minaldecept
ion.
⇒ Sec.
17-fr
audmeansanyactcommi t t
edbyapar tyt
oacontr
actor
wi
thhisconniv
anceorbyhisagentwit
hi ntentt
odeceiv
eanot
herpar
ty
t
heretoorhisagentort
oinducetoenterintocont
ract
.
Cont
ract
suber
ri
maf
ides(
cont
ract
sofut
mostgoodf
ait
h)
Silencedoesnotamountt oar epr esent ati
on&socantamountt ofr
aud.
Essent ialsoff r aud: -
(a)Falsest atement ,madeknowi ngl yorwi thoutbel iefinit
str
uthOr
recklessl ycar eless, whet heritbet rueorf alse.
Byapar tyt ot hecont ract
(b)Ther emustber epr esentati
on–[ anopi nionast at
ementof
expr ession–doesnotf raud].
(c)Ther epr esent ationmustbef alse. (Causet obel i
ev esomethi
ngthatis
not t rue)
(d)Bef or econcl usi onofcont ract .
(e)Themi srepr esent ationmustbemadewi lfull
y.
(f)Themi srepr esent ati
onmustbemadewi thav i
ewt odecei
vetheother
par ty.
(g)Theot herpar tymusthav eact ual lybeendecei ved.
(h)Theot herpar tyhav esuf f
eredal oss.‘
(i
)Thesuggest i
on, ast oaf act, oft hatwhi chi snott ruebyonewho
doesnotbel i
ev ei ttobet r
ue.
(j
)Theact iveconceal mentofaf actbyonehav i
ngknowl edgeorbel
iefof
thef act.
(k)Apr omi semadewi thoutanyi nt entionofper formingit.
(l
)Anyot heractf itt
edt odeceiv e.
(m)Anysuchactoromi ssionast hel awspeci al
lydecl ar
estobe
fraudulent .
Int enti
onal l
ymi sr epresent ati
oni st heessenceoff raud.
Thesuggest i
on, ast of act,ofthatwhi chi snott ruebyonewhodoesnot
believei ttobet rue.
Theact
iveconceal
mentofaf
actbyonehavi
ngknowl
edgeor
bel
i
efofthef
act.
Ex.Asells, byauct i
on, toBahor sewhichAsay snot
hingtoBaboutt he
horseunsoundness, t
hisisnotfraudinA.
- A st at ementunt r ueinfactmustbeunt r
ueint hebeliefofthe
personmaki ngit.
- A mer eexpr essionofopi niondoesnotamountt ofraudifthe
opi
ni onishonest lyheld.
- Mer esi l
encei snof r
aud.
- Cav eatempt or( l
etthepurchaserbewar
e)iti
sthedutyoft hebuy
er
tobecar ef
ul whil
epur chasingt
hegoods.
- Sec57( I
ndianEv idenceact1882)thegrant
orofal i
cenceisbound
 t
odi
scl
oset
oli
censeesuchdef
ect
sint
hepr
oper
ty.

Excepti
on:Thecont ractisnotv oi
dablei
nt hef ol
lowingcases.
 Whent hepar t
ywhoconsentwascausedbysi l
enceamountt o
fr
audandbehast hemeansofdi scoveringthet ruthwithordi
nary
di
li
gence.[Excl assroom]
 Whent hepar t
ygi vetheconsentinignor anceoff raud.
 Whent hepar t
yaf terbecomeawar eoff raudt akesabenef i
t.
 Whent hepar t
iescan’ tberestor
edtot heirori
ginal posi
ti
on.
 Wher eint
erestsoft hi
r dpart
iesi
nterv
enebef oret hecontr
actis
avoi
ded

Misr
epresentat
ion(
sect
ion18)
I
nnocentmisstat
ement/fal
sestat
ement
.
Mi srepresentati
oni swhenapar t
y( per son)assertssomet hingwhichis
not t rue t hough he bel ieves i s t o be t rue. In ot her words
mi srepresentati
oni safall
sr epresent ationmadei nnocent l
y .
Anagr eementi ssaidt obei nfluencedbymi srepresentationi fallt
he
followingcondi t
ionsaresat isfi
ed.
(a)Thepar tymakesar epresent ati
onofaf act[
Ther epresentationbya
stranger( Byany onewithhi sconni vanceorbyagent )tothecont r
act
doesnotaf fectthev al
i
dityoft hecont ract.
(b)Themi srepresentat
ionwasmadei nnocent l
yi.
e.ifwasnotmadewi th
av iewt odeceivet heotherpar ty.
(c)Theot herpartyhasact uallyactedbel ievi
ngthemi srepresentt obe
true.

Misr
epresent ationinclude: -
 Unjustif
iedst atementoff act s–posi ti
veasser t
ion–Bel i
evetr
ue
r
eall
ynott ruenobasi smi srepresent ation
 Breachofdut y.
 I
nduci ngot hertomakemi stakeast oqual i
fyornat ur
eofsubject
matt
er .
 Knowi nglyorwi thoutbel iefini t
st ruthorrecklesslycarel
ess
whetheritbet rueorf alse.
 makingofunwar rantedst atement swhichar enottrue
 makeami stakeast ot hesubst anceoft hething
 afalsest atementwi t
houtanyi ntentiontodecei ve
 i
tdoesnoti nv olvedi shonesti ntention
 amer eexpr essionofopi ni oncan’ tber egardedasa
misrepresentati
on
 discoveri
ngt hetrut
hwi t
hordinar ydil
igence
 Itneednotbemadedi r
ectl
ytot hepl ainti
ff.i
tcanmadet oat hi
rd
personwi ththeintenti
onofcommuni catingi tt
ot heplainti
ffalso
amount stomi srepresent
ati
on.
 Itmaybeexpr essbywor dswrit
t enint hef orm ofplans,drawings.
 Itmusthav ecausedt heconsentoft heot herpartytocont ract.
 Itrequi
resuber ri
maf i
desafiduci ar
yr elat
ionshipexists.
 Itmadeshoul dhavebecomeunt rue.

Eff
ectofMisr
epr
esentat
ion:-
Resci
ssi
on–sec19
Remedy-sec75/
sec30/sec66/sec64/
sec35(
sra)

(1)Ri ghttoRescindcontract:
-
Can’tdo
Di scoveri
ngthetrut
hwi thordinarydil
igence.
Gi veconsentinignoranceofmi srepresentat
ion
Becomeawar eofmi sr
epresentati
ont akesabenefit
Wher eaninnocentthir
dpar t
ybef orethecontracti
sresci
nds
acquires consi derat
ionsomei nterestinthepropertypassi
ngundert
he
contract.
Wher etheparti
escan’tberestoredt othei
rorigi
nalposi
ti
on.

(
2)Righttoinsi
stuponper
formance.
Ex.
:-Unli
keFraudhecannotsuefordamage

Mist
ake
(Void)
Mi
stakeEr
roneousBel
i
efaboutsomef
act
s
Mi
stakeofFact Mist
akeofLaw[
21]
Unil
ater
al[
22]Bil
ater
al[
20] Mi
stakeofIndi
an Mist
akeof
for
eign
Law Law
Onepar tyUnder Bot hpar
ti
esunder t
hecontr
acti
sval
id sameas
mistakefact Mi st
akeoffact
s Mist
akeof
fact The cont ract is vali
d t
he cont
ract i
s void
void
[Notvoidabl
eandvoid] Bot
hparti
es
under mi st
ake
Except
ion:
-Wher
econt
racti
snotv
ali
d(v
oid)
Sec-
20agr eementv oi
dwher ebothpar tiesareundermi stakeast o
matteroff act
Sec21–ef fectofmistakesastolaw
Sec22-cont ractcausedbymi st
akeofonepar tyastomatteroffact
.
I
ll
ustrati
on:
Aagr eest obuyf r
om Bacer tai
nhor se.Ittur
nsoutthatthehorsewas
deadatt het i
meofbar gain,t
houghnei t
herpartywasawar eofthefact
.
Theagr eementi svoi
d.
 Thecour tmayr ef
ormthecont r
act&r ect
if
ythewrit
ten
inst r
ument .
I gnor anti
ajuri
snonexcusat(ignoranceoflawisnoexcuse)

Cl
assi
ficationofmi stake:-
1)Commonmi stake
2)Mut ual mistake-subj ectmatter/titl
e/substanceofthi
ng/r
oot
/
identity/pri
ce
3)Uni l
ateralmi stake
Mi
stakeoff act-
--
--
1)Errori ntheexpr essi
onofcontract(language)
2)Errorwi t
hr egar dtothenatureort ermsofthecontract
3)Errormayr elat etoreasonorincause
 Mi stakewi thr egardtothelawoft hecount r
y
 Mi stake- -
--
----
---
---
--
--
--
-t
oforei
gnl aw
 Mi stake- -
--
----
---
---
--
--
--
-topr
ivaterights.

Q.
NO.6 St at
ebrief
lythev ar
iousvoi
dagr
eement
sint
he
I
ndi
anCont
ractActwit
hil
lust
rati
ons.
(
Mar
ks:
15)

VOI
DAGREEMENTS:

Sect
ion2(
g):
anagr
eementnotenf
orceabl
ebyl
awi
ssai
dtobev
oid.

1.Agr
eementunl
awf
uli
npar
t(sect
ion23/
24)

2.Agr
eementwi
thoutconsi
der
ati
on(
sect
ion25)

3.Agr
eementi
nrest
rai
ntofmar
ri
age.(
Sect
ion26)
4.Agr
eementi
nrest
rai
ntoft
rade.(
Sect
ion27)

5.Agr
eementi
nrest
rai
ntofl
egal
proceedi
ngs.
(Sect
ion28)
.

6.Agr
eementwhi
chi
sambi
guousanduncer
tai
n.(
sec.
29)

7.Agr
eementbywayofWager
.(Sec,
30)

8.Agr
eementt
odoani
mpossi
bleact
.(sec.
56)

1.AGREEMENTUNLAWFULI
NPART(
sect
ion23/
24)

Unlawfulagr
eement
s:Secti
on23def
ines:
theconsi
der
ati
onoranobj
ect
ofagreementisl
awful
unless-

1.I
tisf
orbi
ddenbyl
aw.

2.I
sofsuchanat
ure,
ifper
mit
tedi
twoul
ddef
eatt
hepr
ovi
si
onsofany
l
aw.

3.I
nvol
vi
ngani
njur
ytot
heper
sonorpr
oper
tyofanot
her
.

4.I
sfr
audul
ent

5.Immoral
:Theobjectofconsi
der
ati
onofwhi
chi
simmor
ali
svoi
dand
cannotbeenf
orced.

*
deal
i
ngwi
thsexwor
ker
s.

*
Il
legal
cohabi
tat
ion

*
Danci
nggi
rl
s.

6.Opposedtopubli
cpoli
cy:Anagreementwhi
chisi
njur
ioust
othe
publi
coragai
nsttheint
erestofsoci
etyi
ssai
dtobeopposedtopubl
i
c
pol
icy.

a.t
radi
ngwi
thenemy
.

b.host
il
eactt
owar
dsaf
ri
endl
yst
ate.

c.byst
if
li
ngacr
imi
nal
prosecut
ion.

d.abuseofl
egal
process-mai
ntenanceandchamper
ty.

e.byi
nter
fer
encewi
tht
hecour
seofj
ust
ice.
f
.agr
eement
swhi
chcr
eat
econf
li
ctsofi
nter
estanddut
y.

g.mar
ri
agebr
eakagecont
ract
s.

h.sal
eandpubl
i
cof
fi
cer
s.

Secti
on24:whenconsi der
ati
onandobj
ectunlawfuli
npar
t:I
fanypartof
asingl
econsiderati
onforoneormoreobj
ectsoranyoneoranypar
tof
anyoneofseveralconsi
derat
ionsf
orasi
ngleobjecti
sunl
awful
,the
agreementi
sv oid.

A.AGREEMENTWI
THOUTCONSI
DERATI
ON:
(sect
ion25)

Sec25-anagr
eementwithoutconsider
ati
onisvoi
d.Ev er
y
agr
eementmustbesupportedwithsomeconsider
ationthenonl
y
i
tbecomesacontr
act
.sec2( d)defi
nesconsi
derat
ion.

B.AGREEMENTINRESTRAI NTOFMARRI AGE:

(sect
ion26)
:an
agr
eementwhichi
nter
fereswi
ththeper
for
manceofmar i
tal
dut
ies
i
sagainstt
hepubl
i
cpolicyisv
oid.

 Everyagr
eementisrest
rai
ntoft
hemar
ri
ageofanyper
son,
other
thanaminor,
isvoid.

 Anagreementwhi
chrest
ri
ctsaperson’
sfr
eedom t
omar
ryort
o
marr
yanypersonofhi
schoiceagai
nstPPisvoi
d.

Forexample:anagr
eementt
olendmoneytoawomanin
consi
derat
ionofherget
ti
ngadivor
ceandmarr
yingt
hel
enderi
s
voi
d.

C.AGREEMENTI NRESTRAINTOFTRADE: (sect

ion27) :
ev er
y
agreementbywhichanyoneisr
estr
ainedfrom exerci
singalawf
ul
professi
on,
tradeorbusi
nessofanykindistothatextentvoi
d.

 Ai
m -av
oidi
ngcompet
it
ionandhasmonopol
i
sti
ctendency
.

 Anagreementnottocar
ryonsomebusinessf
oraper i
odof3
year
sortoclosedownami l
lfor3mont
hsinay ear
,isvoi
d.

 Boththegener
alaswel
last
hepar
ti
alr
est
rai
ntoft
radei
spr
ima
faci
evoid.
EXCEPTI
ONS:

1.Saleofgoodwi ll
:Apersonwit
hi t
sgoodwill
,thesel l
erofthe
businessmaymakeanagr eementwiththebuy ernottocarryon
thebusinessincompetit
ionwiththebuy
er.Suchanagr eement,
if
i
mposesar easonabl
erestr
ict
iononthesell
er’srighttocarr
yon
businessisval
id.

2.Except
ionundert
heI
ndi
anpar
tner
shi
pAct
,1932:

Secti
on11(2)
:thepur
poseisthatt
hepart
nerswil
lnotcarr
yon
thei
rownbusinessi
gnor
ingthepart
ner
shipbusi
ness.Suchan
agreementi
sv al
i
d.

Sect
ion36(
2):
Itmaybemadebetweentheout
goingpar
tnerand
ther
emaini
ngpart
ner
swhoconti
nuethebusi
nessofthefi
rm.

Sect
ion54:Itmaybemadeuponori
nant
ici
pat
ionoft
he
di
ssolut
ionofthef
ir
m.

Sect
ion55(3):Whenaper sonpurchasest
hegoodwillofa
busi
ness,hi
sinterestmaybepr ot
ectedbyacovenantbythesel
l
er
ofgoodwil
lthatthelat
terwil
lnotcarr
yonbusi
nesssimi l
art
othe
onewhichhasbeensol d.

3.Restrai
ntbyacontr
actofservi
ce:Anagreementofaservi
ceunder
whichanemployeeagreesthathewill
serveapart
icul
aremploy
er
forcert
aindur
ati
onandthathewillnotser
veanyoneelsedur
ing
thatperi
odisval
i
d.

4.Tradecombination:Somet r
adersandmanufactur
erscombine
toget
hert
oel i
mi natecompetit
ionasbetweenthemselv
esand
makeagreementf i
xingmini
mum price,
regul
ati
ngthesuppl
yof
goodsandputtingpr ofi
tsi
nacommonpool anddivi
ngthesame
amongstthemsel ves.

5.Solusagreement
s:Thesell
erorthemanuf
acturerofacertai
n
productmayagreethathewil
lsuppl
ythewholeofhisproductt
oa
 par
ticul
arsingl
ebuy eronlyorsimil
arl
yabuyermayagr
eethathe
wil
lpurchaseallhi
sr equi
rementsofacer
tai
ncommodityfrom a
par
ticul
arsell
erormanuf actur
eronl
yandnoneelse;
isval
i
d.

E.AGREEMENTI
NRESTRAI
NTOFLEGALPROCEEDI
NG:

Secti
on28:Anagreementabsol
utel
yrest
raini
ngapar
tyf
rom enfor
cing
hisri
ght
sthroughacour
toflaw,oranagreementwhi
chplacesali
mitas
totheti
mewi t
hinwhi
charightcanbeenforcedi
svoi
d.

Twoki
ndsofagr
eement
sar
evoi
d.

 Agreement,
byonepartyi
sabsolut
elydebar
redf
rom enf
orci
nghi
s
ri
ghtsthr
oughusual
legal
proceedi
ngs.

 Agr
eement,whi
chplacesat
imel
i
mitf
orenf
orci
ngar
ightt
hrough
l
egalpr
oceedi
ngs.

D.AMBI
GUOUSANDUNCERTAI
NAGREEMENTS:

Section29:whichi
snotcert
ainorcapabl
eofbei
ngmadecertai
nare
void.Iti
snecessar
ythatt
hereshoul
dbenoambigui
tyaboutwhat
thatparti
esi
ntend.

Il
l
ustrati
ons:
‘A’agr
eestosell
to‘B’
ahundredt
onsofoi
l.Ther
eis
nothingwhatev
ertoshowwhatkindofoil
wasint
ended.The
agreementwasv oi
dforuncer
tai
nty
.

E.AGREEMENTBYWAYOFWAGER:
Sect
ion30:

Essent
ial
sofwageragr
eement
:

i
. Thepar
ti
eshav
eopposi
tev
iewsr
egar
dinganuncer
tai
nev
ent
.

i
i
. Therear
echancesofgai
norlosst
othepar
ti
esont
he
deter
minat
ionoft
heeventonewayort
heother
.

i
i
i. Thepar
ti
eshav
enoot
heri
nter
estexceptwi
nni
ngorl
osi
ngabet
.

‘
A’ agreest
opay‘
B’Rs.100i
fitdoesnotr non1stj
ai an.Next
,
‘
B’agreestopay‘
A’Rs.100i
fitrai
nsonthatday.(
winorloss
dependingupont
hedetermi
nationoft
heev ent
.
 I
fyoutakeani
nsur
ancepol
i
cyt
oinsur
eTaj
Mahal
orKut
ubMi
nar–
Voi
d.

 Buti
fiti
sfory
ourownhouse–v
ali
d.

 Theagr
eementt
opaypr
izemoneyorl
ott
eryt
icket
s–v
oid.

 Specul
ati
vet
ransact
ion:
Anagreementt
opaydi
ffer
encesonl
y,
rat
hert
hanactual
lymakingort
aki
ngthedel
i
ver
yofthegoods.

F.CONTI
NGENTCONTRACTS:
Sect
ion31:

Iti
sacontractt
odoornott odosomething,
ifsomeevent,col
l
ateral
to
suchcontr
actdoesnothappen.Whenthecontracti
sdependentor
condi
ti
onaluponthehappeningornon-
happeningofacer
tainfut
ure
event
,thecontr
acti
sconti
ngent.

‘
A’contract
stopay‘B’
Rs.10,
000i
fB’
shousei
sbur
nt,
thi
sisa
cont
ingentcont
ract
.

 Al
lcont
ract
sofi
nsur
ance.

Enf
orcementofcont
ingentcont
ract
:

1.Sect
ion32:
Cont
ract
scont
ingentonanev
enthappeni
ng.

2.Sect
ion33:
Cont
ract
scont
ingentonanev
entnothappeni
ng.

3.Secti
on34:
Cont
ract
scont
ingentont
hef
utur
econductofal
i
ving
person.

4.Sect
ion35:Cont
ract
scont
ingentonhappeni
ngofspeci
fi
edev
ent
wit
hinfi
xedti
me.

5.Contr
actscont
ingentonnothappeni
ngofspeci
fi
edev
entwi
thi
na
fi
xedti
me.

6.Sect
ion36:
Agr
eement
scont
ingentoni
mpossi
bleev
ent
.

Q.
NO.
7
‘
A’pr
omisestopayBasum ofmoneyifacert
ainshipdoesnot
r
etur
nwithi
nayear.Theshi
pnev
erret
urns;
canBr ecovert
he
moneyf
rom A?

-
Yes
-Bcanr
ecovert
hemoneyf
rom A.Bcanenf
orcedcont
racti
fshi
pdoes
notr
etur
nwi
thi
nay
ear
.
-BCZi
tiscont
ingentcont
r s.Acct
act osec31
-Acont
ractt
odoornott
odosomet
hing,
ifsomeev
ent
,col
l
ater
alt
o
suchcont
ract
,doesnothappen.
-Reason:
-thepr
omi
sei
sdependentorcondi
ti
onal
upont
hehappeni
ng
ornon-
happeni
ngofacer
tai
nfut
ureev
ent
,thecont
racti
scont
ingent
.
Enf
orcementofcont
ingentcont
ract
--
--
--
 Cont
ract
scont
ingentonanev
enthappeni
ng
 Cont
ract
scont
ingentont
heev
entnothappeni
ng
 Cont
ractcont
ingentont
hef
utur
econductofal
i
vingper
son
 Cont
ract
scont
ingentonhappeni
ngofspeci
fi
edev
entwi
thi
nfi
xed
t
ime
 Cont
ract
scont
ingentonnothappeni
ngofspeci
fi
edev
ent
wi
thi
naf
ixedt
ime
 Agr
eement
scont
ingentoni
mpossi
bleev
ent
.

 Thewager
ingagr
eementi
sal
soacont
ingentcont
ract
,butt
hat
t
ypeofcont
ingentcont
racthasbeenspeci
fi
cal
l
ydecl
aredt
obe
v
oidbysec30.
 Al
lcont
ract
sofi
nsur
anceori
ndemni
tyai
m atpay
mentofmoney
onl
yaf
teracer
tai
nev
enthappens,
ort
hel
ossi
scaused,
and
t
her
efor
etheyar
econt
ingentcont
ract
s.
Q.
No.
8 Solv
et hefol
lowi
ngprobl
em:
“M’’t
ell
shiswi f
et hathewoul
dcommitsui
cidei
fshedidnott
ransfer
herpersonalassetstohim.Shedoessoundert
hreat
.Canwif
eav oid
thi
scontract
?
(
Mar
ks:
5)

-yes
-wifecanav oi
dt hiscont ract .
-becauset hiscont r
acti scausedbycoer ci
on,asdef i
nei nsec15.
Acct osec14, consenti ssai dt obef reefr
om coer ci
on.Acc
Sec10oft heact( vali
dcont ract)—t hereshouldbef r
eeconsentoft he
parti
es, whent heyent eri ntot heagr eement .
Reasons: --
Section15def inescoer cion.Theconsenti sgi v
enundert het hreatisan
offenceunderI PC.
 Theconsenti sobt ainedbyt hr eatofanof fenceandt heper soni s
for
cedt ogi v
ehi sconsent .
I tismai nlyofaphy sical charact er.
 Thef reedom owi l
l i
si mpai red.
I tisav i
olentchar acter .
 Theagr eementmadebycoer cionisvoidableatt heopt i
onoft he
part
ywhoseconsentwassocaused.
 Thebur denofpr oofl iesuponpl ai
nti
ff.
 Thepar tyav oidingt hecont racti sboundt or estor
et ot heot her
part
yanybenef itwhi chhemayhav ereceivedundert hecont r
act.
 Ar eal orapparentaut horit
ywhi choneper sonhasov eranother.
 Conf idence r esponse by one par ty in anot her ( fi
duciary
rel
ati
onshi p).

Q.NO.
9 Stat
etherul
esrelat
ingt
oappr
opr
iat
ionofpay
ment
s
bet
weendebt
orandcredi
tor.
Per
for
manceofcont
ract
-ev
erycont
ractconsi
stsofr
eci
procal
pr
omi
ses.Eachpar
tyt
oacont
racti
sboundt
oper
for
mthepr
omi
se
madebyhi
m.
Thepar
ti
est
othecont
racthav
eadut
yto:
1)Per
for
m
2)Of
fert
oper
for
m
Thei
rrespect
ivepr
omi
ses.
Joi
ntpr
omi
sor
sandt
henat
ureoft
hei
rli
abi
l
ity-
Sec42,
43&44oft
hecont
ractactdeal
wit
hthel
i
abi
l
ity
,rul
esar
e
cont
ainedi
nthesesect
ions.
Ti
meandpl
aceofper
for
mance-
Sec46t
o50l
aydownt
hepr
inci
plesf
ort
heper
for
manceofcont
ract
s
cont
aini
ngdi
ff
erentst
ipul
ati
onsast
oti
me&pl
acef
ort
heper
for
mance
oft
hecont
ract
s.
Per
for
manceofr
eci
procalpr
omi
ses-
Sec51t
o54deal
wit
htheper
for
manceofr
eci
procal
promi
ses.
Appr
opr
iat
ionofPay
ment
s:-[
Sec59–61]
Appr
opr
iat
ionmeansappl
i
cat
ionofpayment
s–
–Thequest
ionofappr
opr
iat
ionofpay
ment
sar
iseswhenadebt
orowes
sev
eral
debt
stot
hesamecr
edi
torandmakesapay
mentt
hati
snot
suf
fi
cientt
odi
schar
get
hewhol
eindebt
ness.
1.Appr
opr
iat
ionofPay
ment
s
Somet
imes,adebt
orowessev
eraldi
sti
nctdebt
stot
hesame
cr
edi
torandhemakesapay
mentwhi
chi
sinsuf
fi
ci
entt
osat
isf
yal
l
t
hedebt
s.I
nsuchacase,aquest
ionar
isesast
owhi
chpar
ti
cul
ar
debtt
hepay
menti
stobeappr
opr
iat
ed.Sect
ion59t
o61oft
heAct
l
aydownf
oll
owi
ngr
ulesast
oappr
opr
iat
ionofpay
ment
swhi
ch
 pr
ovi
deananswert
othi
squest
ion.
Appr
opr
iat
ionasperexpr
essi
nst
ruct
ions
Ev
erydebt
orwhoowessev
eraldebt
stoacr
edi
torhasar
ight
t
oinst
ructhi
scr
edi
tort
owhi
chpar
ti
cul
ardebt
,thepay
menti
s
t
obeappr
opr
iat
edoradj
ust
ed.Ther
efor
e,wher
ethedebt
or
expr
essl
yst
atest
hatt
hepay
menti
sto beappl
i
ed t
othe
di
schar
geofapar
ti
cul
ardebt
,thepay
mentmustbeappl
i
ed
accor
dingl
y.
Exampl
e:AowesBt
hreedi
sti
nctdebt
sofRs.
2,000,
3,000and
5,
000.A sendsRs.
5,000andi
nst
ruct
sB t
hatt
hepay
ment
shoul
dbeappr
opr
iat
edagai
nstt
het
hir
ddebt
.Hei
sboundt
o
appr
opr
iat
ethepay
mentagai
nstt
het
hir
ddebtonl
y.
 Appr
opr
iat
ionasdesi
redbyt
hedebt
or:
Theappl
i
cat
ionofpay
mentofdebti
slef
tent
ir
elyt
othedi
scr
eti
onoft
he
debt
or.I
fthedebt
orf
ail
stogi
veanyi
nst
ruct
ions,
thecr
edi
torcanappl
y
t
heamountt
oanyoft
hedebt
sincl
udi
ngat
imebar
reddebt
.
Whent
hedebt
ori
ndi
cat
est
hatpar
ti
cul
arpay
menti
stobeappl
i
edf
or
t
hedi
schar
geofapar
ti
cul
ardebt
,thecr
edi
torhast
oappl
ythesame
accor
dingl
y.
Whenadebt
orhast
omakepay
mentundermul
ti
pleheads,
hehasan
opt
ionu/
sec59t
oindi
cat
etheheadt
owhi
cht
heamountpai
dshoul
d
beappr
opr
iat
ed.
2.Appl
i
cat
ionofpay
mentwher
edebtt
obedi
schar
gei
snot
i
ndi
cat
ed[
60]
I
fsect
ion60i
sat
tr
act
ed,t
hecr
edi
torshal
lhav
ethedi
scr
eti
ont
o
appl
ysuchpay
mentf
oranyl
awf
uldebtwhi
chi
sduet
ohi
mfr
om
t
heper
sonmaki
ngt
hepay
ment
.
Exampl
e:Aowest
oB,amongot
herdebt
s;t
hesum ofRs.
520.B
 wr
it
est
oA anddemandspay
mentoft
hissum.A sendst
oB
Rs.
520.Thi
spay
menti
stobeappl
i
edt
othedi
schar
geoft
hedebt
ofwhi
chBhaddemandedpay
ment
.
 Appr
opr
iat
ionbyt
hecr
edi
tor
--
--
-i
fthedebt
orf
ail
stomakeany
i
ndi
cat
ionofhi
sint
ent
ion,
thecr
edi
torhasar
ightt
oappr
opr
iat
e
t
heamountt
oanydebtpr
ovi
dedi
tisl
awf
ull
ydue,ev
ent
hough
i
tmaybet
imebar
red.Hecannotmaket
heappr
opr
iat
iont
oan
i
l
legal
orv
oiddebt
.

3.Appl
i
cat
ionofpay
mentwher
enei
therpar
tyappr
opr
iat
es[
61]
Thepay
mentshal
lbeappl
i
edi
ndi
schar
geoft
hedebt
sinor
derof
t
imewhet
hert
heyar
eorar
enotbasedbyt
hel
i
mit
ati
onAct1963,
i
fthedebtar
eofequal
standi
ng(
i.
e.pay
abl
eont
hesamedat
e)t
he
pay
mentshal
lbe appl
i
ed i
n di
schar
ge ofeach oft
hese debt
pr
opor
ti
onat
ely
.
Fi
rsti
nter
estt
henpr
inci
ple
Di
rect
orofpayernotr
ecei
ver
.
Ri
ghtpr
imar
yoft
hedebt
or

Appr
opr
iat
iont
owar
dsdebt
sinor
deroft
ime-
--
-
Whennei
thert
hedebt
ornort
hecr
edi
tormakeanyappr
opr
iat
ion,
then
t
her
ulement
ionedi
nsec61det
ermi
nest
owhi
chamounti
stobe
appl
i
edf
ordi
schar
gingwhi
chpar
ti
cul
ardebt
.
I
nsuchacase,
thepay
mentshal
lbeappl
i
edi
ndi
schar
get
hedebt
sin
or
deroft
ime.Theol
destonei
stobedi
schar
gedf
ir
stofal
l
,ev
ent
hough
i
tmaybeat
imebar
reddebt
.Ift
hedebt
sar
eofequal
standi
ng,
the
pay
mentshal
lbeappl
i
edi
ndi
schar
geofeachsuchdebtpr
opor
ti
onat
ely
.

[
What
everi
spai
d,pai
daccor
dingt
othei
ntent
ionofpay
ingi
t]
 [
Qui
ckqui
dsoi
vi
tur
,sovi
tursecundum modem sol
vent
ies]

Exampl
e:AowesB,
thef
oll
owi
ngdebt
s:
Amountof Posi
ti
onsof
t
hedebt t
hedebt
Rs.
2,000 Ti
mebar
red
Rs.
1,000 Ti
mebar
red
Rs.
2,000 Dueon10t
hJune
Rs.
3,000 Dueon20t
hSept
ember
AsendsRs.
1,500i
nthemont
hofJune.Henei
therexpr
essl
yint
imat
es
norci
rcumst
anceoft
hecasei
mpl
yast
owhi
chdebtt
heamounti
stobe
appl
i
ed.Mor
eov
er,
Bal
sodoesnotappr
opr
iat
ethepay
mentathi
sown
di
scr
eti
on.Ther
efor
e,t
hepay
mentwi
l
lbeappr
opr
iat
edi
nor
deroft
ime.
Howev
er,
her
eint
hiscaset
wodebt
sar
eofequal
standi
ng.Thepay
ment
wi
l
l,t
her
efor
e,beappr
opr
iat
edi
nor
deroft
imebutt
oal
lequal
standi
ng
debt
s.I
nthi
scase,
Rs.
1,500wi
l
lbeappr
opr
iat
edt
owar
dst
hef
ir
stt
wo
debt
sofequal
standi
ngpr
opor
ti
onat
ely
,i.
e.i
nther
ati
oof2:
1.

Ther
ulesment
ionedi
nsec59t
o61,
alt
houghar
emeantf
orbei
ng
appl
i
edt
osev
eral
dist
inctdebt
s,t
hesamepr
inci
plesar
eappl
i
cabl
e
whent
her
eisasi
ngl
edebtandal
soi
nter
estt
her
eon.

Q.
No.
10Expl
aint
he“
doct
ri
neoff
rust
rat
ion”wi
thr
efer
ence
t
odeci
dedcases.

(
Mar
ks:
15)

DI
SCHARGEOFCONTRACT
 I
tmeansacont
ractceasest
ooper
ate.I
tal
someanst
her
ight
sand
obl
i
gat
ionscr
eat
edbyt
hecont
ractcomet
oanend.Thet
ermi
nat
ion
oft
hecont
ract
ual
rel
ati
onshi
pbet
weent
hepar
ti
es

1.Byper
for
mance(
sect
ion37-
67)

2.Byi
mpossi
bil
i
tyofper
for
mance(
sect
ion56)

3.Byagr
eement(
sect
ion62-
67)

4.Bybr
each(
sect
ion39)

Annul
,l
iabi
l
ityf
ulf
il
ment
,tocancel
,tor
elease,
dismi
ss,
tor
eli
eve
obl
i
gat
ion.

1.Di
schar
gebyper
for
manceordoct
ri
neoff
rust
rat
ion

Fr
ust
rat
ion:
eff
ort
smadei
nef
fect
ive:
discont
ent
edbecauseunabl
eto
achi
eveone’
sdesi
re:
disappoi
ntahope.

Whent
heper
for
manceoft
hecont
ractbecomesi
mpossi
blet
he
pur
posewhi
cht
hepar
ti
eshav
einmi
ndi
sfr
ust
rat
ed.I
fthe
per
for
mancebecomesi
mpossi
ble,
becauseofasuper
veni
ngev
ent,
t
hepr
omi
sori
sexcusedf
rom t
heper
for
manceoft
hecont
ract
.In
Engl
i
shl
aw,
iti
scal
l
ed“
Doct
ri
neofFr
ust
rat
ion”
.InI
ndi
anl
aw,
iti
s
cal
l
ed“
Impossi
bil
i
tyofPer
for
mance”
.

Sect
ion56oft
heI
ndi
anCont
ractact
,1872:
thi
sdoct
ri
nei
sappl
i
cabl
e
i
ntwoci
rcumst
ances(
i)whent
heper
for
manceoft
hecont
ractwas
phy
sical
l
ycutof
f:and(
ii
)whent
heobj
ectwasf
ail
ed.

Sec.
56.Agr
eementt
odoI
mpossi
bleAct
-anagr
eementt
odoanact
i
mpossi
blei
nit
sel
fisv
oid.
 I
ll
ust
rat
ions:

a)Aagr
eeswi
thBt
odi
scov
ert
reasur
ebymagi
c.Theagr
eementi
s
v
oid.

b)AandBcont
ractt
omar
ryeachot
her
.Bef
oret
het
imef
ixedf
ort
he
mar
ri
age,
Agoesmad.Thecont
ractbecomesv
oid.

Rul
es:
Sect
ion56expl
ainst
heci
rcumst
ancesi
nwhi
cht
heDoct
ri
neof
Fr
ust
rat
ionar
ises.Thei
ngr
edi
ent
sofsect
ion56ar
easf
oll
ows:

i
. Theagr
eementi
stodoani
mpossi
bleacti
sini
tsel
f.

i
i
. Acont
ractt
odoanactbecomesi
mpossi
bleorunl
awf
ulbyan
ev
entwhi
cht
hepr
omi
sorcoul
dnotf
oresee.

i
i
i. Thepr
omi
sorknewormi
ghthav
eknownwi
thr
easonabl
edi
l
igence
t
hatt
heacthepr
omi
sedi
simpossi
bleorunl
awf
ul,
butt
he
pr
omi
seedi
dnotknowofi
t,i
nsuchci
rcumst
ances,
thepr
omi
sor
i
shel
dli
abl
etopaycompensat
iont
othepr
omi
seef
oranyl
oss
occur
redbyt
hepr
omi
seef
ort
henon-
per
for
manceoft
hepr
omi
se.

i
v. I
ll
ust
rat
ionsappendedt
osect
ion56cl
ari
fyandgi
vepr
oposi
ti
ons
oft
hisdoct
ri
ne.

EFFECTOFFRUSTRATI
ON

“
Iti
swel
lset
tl
edt
hati
fandwhent
her
eisf
rust
rat
iont
hedi
ssol
uti
onof
t
hecont
ractoccur
saut
omat
ical
l
y.”

1.Thef
rust
rat
ionsshoul
dnotbesel
f-
induced:

Fr
ust
rat
ionshoul
dar
isewi
thoutbl
ameorf
aul
tonei
thersi
de.
Rel
i
ancecannotbepl
acedonasel
f-
inducedf
rust
rat
ion.
2.Fr
ust
rat
ionmustoper
ateaut
omat
ical
l
y:

Fr
ust
rat
ionoper
atesaut
omat
ical
l
ytodi
schar
get
hecont
ract
“
ir
respect
iveoft
hei
ndi
vi
dual
’
sconcer
ned,
thei
rtemper
ament
sand
f
ail
i
ngs,
thei
rint
erestandci
rcumst
ances”
.Thel
egal
eff
ect
sof
f
rust
rat
iondonotdependont
hei
rint
ensi
onort
hei
ropi
nionsorev
en
knowl
edge,
ast
otheev
ent
.Thi
sispar
ti
cul
arl
ytr
ueofI
ndi
anl
awas
sect
ion56oft
hecont
ractActl
aysdownar
uleofposi
ti
vel
aw.Ther
e
mustnotbeant
ici
pat
ion,
knowl
edgeori
ntensi
onoft
hepar
ti
es.

3.Adj
ust
mentofr
ight
s(Rest
it
uti
on)
:

Sect
ion65:
Obl
i
gat
ionoft
heper
sonwhohasr
ecei
vedadv
ant
age
underv
oidagr
eement
,orcont
ractt
hatbecomesv
oid-whenan
agr
eementi
sdi
scov
eredt
obev
oid,
orwhenacont
ractbecomesv
oid,
anyper
sonwhohasr
ecei
vedanyadv
ant
ageundersuchagr
eementor
cont
racti
sboundt
orest
orei
t,ort
omakecompensat
ionf
ori
t,t
othe
per
sonf
rom whom her
ecei
vedi
t.

4.Asar
esul
toff
rust
rat
ion,
thecont
ractbecomesv
oid.

5.Thedoct
rneofQuant
i um mer
uiti
sal
l
owedi
ncasesoff
rust
rat
ions,
wher
everpossi
ble.

Gr
oundsoff
rust
rat
ion

Fol
l
owi
ngar
ethewel
l
-recogni
sedgr
oundsoff
rust
rat
iononwhi
cht
he
doct
ri
neoff
rust
rat
ionmaybeappl
i
edbyt
hecour
ts:

1.Dest
ruct
ionoft
hesubj
ectmat
teroft
hecont
ract
:

Wher
etheper
for
manceoft
hecont
ractbecomesi
mpossi
blebyt
he
dest
ruct
ionoft
hespeci
fi
cthi
ngessent
ial
tot
hatper
for
mancet
hat
cont
racti
sdi
schar
ged.Thedest
ruct
ionoft
hemusi
chal
lnTay
i lorv.
Cal
dwel
lcasei
sagoodexampl
e.

2.Non-
occur
renceofapar
ti
cul
arst
ateoft
hings:

Thedoct
ri
neoff
rust
rat
ionhasal
sobeenappl
i
edi
ncasesofnon-
occur
renceofapar
ti
cul
arev
entwhi
chi
sessent
ial
fort
he
per
for
manceoft
hecont
ract
.

3.Deat
hori
ncapaci
tyoft
hepar
ty:

Wher
etheper
for
manceofacont
ractdependsupont
heper
sonal
ser
vicesofapar
ty,
thedeat
hori
ncapaci
tyofsuchapar
tymaybe
t
reat
edt
obeav
ali
dgr
oundf
orf
rust
rat
ionofcont
ract
.Al
eadi
ngcase
ont
hepoi
nti
s‘Robi
nsonv
.Dav
inson.I
nthi
scase,
thedef
endant
’s
wi
fewasaf
amouspi
ani
st.Shecont
ract
edf
orper
for
mingaconcer
t
butcoul
dnotf
ulf
ilherpr
omi
sebecauseofaser
iousi
l
lness.The
pl
aint
if
fbr
oughtanact
iont
ocl
aim damagesf
ornon-
per
for
mance
(
breach)ofcont
ract
.Thecour
thel
dthati
nthi
scaset
hecont
inued
heal
thoft
hepi
ani
stwasacondi
ti
onat
tachedt
otheagr
eement
.Her
ser
iousi
l
lnesswasav
ali
dgr
oundont
hebasi
sofwhi
chshewas
di
schar
gedf
rom herobl
i
gat
ionundert
hecont
ract
.

4.Changeofci
rcumst
ances:

I
fthechangeofci
rcumst
ancesmakest
heper
for
manceoft
he
cont
racti
mpossi
ble,
thecont
ractwi
l
lfr
ust
rat
eandpar
ti
eswi
l
lbe
di
schar
gedf
rom t
hei
robl
i
gat
ionsundert
hecont
ract
.If
,howev
er,
despi
tet
hechangeofci
rcumst
ances,
theper
for
mancei
sst
il
l
possi
blet
hecont
ractwi
l
lnotbedeemedt
ohav
ebeendi
schar
ged.

5.Bui
l
dingcont
ract
s:

Wher
etheexecut
ionoft
hecont
racti
sdel
ayedorot
her
wisebecomes
 i
mpossi
blebyt
hehappeni
ngofanext
ernal
event
,thecont
racti
s
di
schar
ged.Butmuchwi
l
ldependupont
hef
act
sandci
rcumst
ances
andeachcasehast
obej
udgedoni
tsownmer
it
s.

6.Changei
nlaw:

Theper
for
manceofacont
ractmayal
sobecomel
egal
l
yimpossi
ble
byt
hechangei
nlaw.I
ftheper
for
mancel
egal
l
yimpossi
ble,
the
cont
ractwi
l
lbedi
schar
ged.Butaspoi
ntedi
nAnson’
sLawof
Cont
ract
,“Thechangei
nthel
awmustbesuchast
ost
ri
keatt
her
oot
oft
heagr
eementandnotmer
elyt
osuspendorhi
nderi
tsoper
ati
oni
n
par
t.

7.Legi
slat
iveorgov
ernmentI
nter
vent
ion:
aret
hewel
l
-recogni
sed
gr
oundsoff
rust
rat
iononwhi
cht
hedoct
ri
neoff
rust
rat
ionmaybe
appl
i
edbyt
hecour
ts.

Q.
NO.
11 Amusi
cal
hal
lwasagr
eedt
obel
etoutoncer
tai
n
day
.Butbef
oret
hat
,itwasdest
roy
edbyf
ir
e.I
sthepr
omi
sor
absol
vedf
rom t
hecont
ract
?

 Yes.
 Thepr sora
omi bsol
utel
yabsol
vedf
rom t
hecont
ract
.
 Thepr sori
omi snotl
i
abl
efort
henon-per
for
manceoft
he
cont
ract
.
 Bcz:byi
mpossi
bil
i
tyofper
for
mancesec-
56
 Theper
for
manceoft
hecont
racthadbecomei
mpossi
ble.The
 per
ishi
ngoft
hehal
lwi
thoutanyf
aul
tont
hepar
tofpr
omi
sor
.
I
tishel
dthatt
hecont
racthasbecomev
oid.Bef
oret
hedat
eof
per
for
mancear
ri
ved,
themusi
chal
lwasdest
roy
edbyf
ir
e.The
cont
ractwaspossi
blewhent
hecont
racti
sent
eredi
ntobut
becauseoff
ir
etheper
for
mancesubsequent
lybecome
i
mpossi
bleorunl
awf
ul.
 Theper
for
mancei
sdeemedt
obei
mpossi
bleandt
hepar
ti
es
ar
eexcusedf
rom per
for
mingt
hecont
ract
.
Di
schar
geofcont
ract
:
I
nthef
oll
owi
ngways;
 Byper
for
manceoft
hecont
ractsec37-
67
 Bybr
eachoft
hecont
ractsec39
 Byi
mpossi
bil
i
tyofper
for
mancesec56
 Byagr
eementandnov
ati
onsec62-67
 Di
schar
gebyi
mpossi
bil
i
tyofper
for
mance:
anagr
eementt
odo
anacti
mpossi
blei
nit
sel
fisv
oid,
whi
chbecomes
unenf
orceabl
e.
I
nit
ial
impossi
bil
i
ty:
-
Lesnoncogi
‘ tadi
mpossi
bil
i
a”-t
hel
awdoesnotcompel
aman
t
odowhathecannotpossi
blyper
for
m.
I
mpossi
bil
i
tyher
emeansnotonl
yphy
sical
impossi
bil
i
ty,
but
al
sol
egal
impossi
bil
i
ty.(
Sec23)
 Subsequenti
mpossi
bil
i
ty:
-
 Theper
for
manceoft
hecont
ractmaybepossi
blewhent
he
cont
racti
sent
eredi
ntobutbecauseofsomeev
ent
,the
per
for
mancemaysubsequent
lybecomei
mpossi
bleorunl
awf
ul.
 Sot
hepur
posewhi
cht
hepar
ti
eshav
einmi
ndi
sfr
ust
rat
ed.I
f
 t
heper
for
mancebecomesi
mpossi
ble,
becauseofa
super
veni
ngev
entt
hepr
omi
sori
sexcusedf
rom t
he
per
for
manceoft
hecont
ract
.Thi
sisknownasdoct
ri
neof
f
rust
rat
ionunderEngl
i
shl
aw.

Q.
No.
12 Sol
vet
hef
oll
owi
ngpr
obl
em:
X,Y,Zj
oint
lypr
omi
set
opayRs.
30,
000t
o“D”
.“Y”becomes
i
nsol
vent
.Di
scusst
hel
iabi
li
tyofX,
Y,andZ.
(
Mar
ks:
5)

-
Yes,
x,y
,zar
ethel
iabi
li
tyt
opayRs.
30,
000t
oD.
-Butybecomesi
nsol
vent
,sonow x& zar
ecompel
l
edt
opayt
he
amountt
oD,
mayhav
eper
for
medt
hewhol
eoft
hepr
omi
seandt
heyar
e
r
ightt
ocl
aimt
hecompensat
ionf
rom yort
hei
rrepr
esent
ati
vesl
ateron.
Theyar
eent
it
ledt
orecei
ve10,
000r
upeesf
rom y
.

Sect
ion42,
43and44oft
heCont
ractactdeal
wit
hthequest
ion
ofl
i
abi
l
ityoft
hej
ointpr
omi
sor
.

Thel
i
abi
l
ityoft
hej
ointpr
omi
sori
sjoi
ntandsev
eral
:Whent
woor
mor
eper
sonsmakeaj
ointpr
omi
se,
thepr
omi
semay
,int
heabsenceof
expr
essagr
eementt
othecont
rar
y,compel
any
oneormor
eofsuchj
oint
pr
omi
sor
stoper
for
mthewhol
eoft
hepr
omi
se.Thei
rli
abi
l
ityt
opayt
he
moneyi
sjoi
ntandsev
eral
undersect
ion43oft
heCont
ractact
.

Cont
ri
but
ionbet
weenj
ointpr
omi
sor
:Si
ncet
hel
i
abi
l
ityoft
hej
oint
pr
omi
sor
sisj
ointandsev
eral
,oneoft
hem mayhav
eper
for
medt
he
whol
eoft
hepr
omi
se.Hemayhav
e,f
ori
nst
ance,
pai
dfort
heshar
eof
ot
her
sal
so.I
fthati
sso,
hehasr
ightt
ocl
aim cont
ri
but
ionf
rom t
he
ot
her
s(sect
ion43)
.

Ef
fectofr
eleaseofaj
ointpr
omi
sor
:Sect
ion44oft
heI
ndi
an
Cont
ractact
,1872:
“whent
woormor
eper
sonshav
emadeaj
oint
pr
omi
se,
arel
easeofonesuchj
ointpr
omi
sor
sbyt
hepr
omi
se,
doesnot
di
schar
get
heot
herj
ointpr
omi
sor
s,nei
therdoesi
tfr
eet
hej
oint
pr
omi
sorsor
eleasedf
rom t
her
esponsi
bil
i
tyt
oot
herj
ointpr
omi
sor
s.

Ef
fectofdeat
hofaj
ointpr
omi
sor
:sect
ion42:Ont
hedeat
hofa
j
ointpr
omi
sor
,hi
srepr
esent
ati
vessubst
it
utehi
mfort
hepur
poseof
l
i
abi
l
ity
.Thel
i
abi
l
ityoft
hesur
viv
ingj
ointpr
omi
sor
sist
her
eal
ongwi
th
t
her
epr
esent
ati
vesoft
hedeceasedone.Whenal
lthej
ointpr
omi
sor
s
di
e,t
her
epr
esent
ati
vesoft
hem al
lmustj
oint
lyf
ulf
ilt
hepr
omi
se.

Q.
NO.
13Di
scusst
her
emedi
esav
ail
abl
eforbr
eachofcont
ract
.
REMEDI
ESFORTHEBREACHOFCONTRACT
Remedymeanscour
seofact
ionav
ail
abl
etoanaggr
iev
edpar
tywhen
ot
herpar
tybr
eachest
hecont
ract
.

Remedi
esf
orBr
eachofcont
ract

1.Resci
ssi
onofcont
ract
2.Sui
tfordamage(
SEC73TO75)
3.Sui
tforspeci
fi
cper
for
mance(
THESPECI
FICRELI
EFACT
1963)
4.
Sui
tforI
njunct
ion
5.
Quant
um Mer
uit

RESCI
SSI
ONOFCONTRACT–SEC39
I
tmeansr
ightt
opar
tyt
ocancel
cont
ract
.
⇒I
ncaseofbr
eachofcont
ract
,ot
herpar
tymayr
esci
ndcont
ract
.

Ef
fectofResci
ssi
onofCont
ract
Aggr
iev
edpar
tyi
snotr
equi
redt
oper
for
m hi
spar
tofobl
i
gat
ion
undercont
ract
.
Aggr
iev
edpar
tycl
aimscompensat
ionf
oranyl
oss.
Par
tyi
sli
abl
etor
est
orebenef
it
,ifany
.

WhencanCour
tGr
antResci
ndCont
ract
?
Cour
tcanr
esci
ndt
hecont
racti
nthef
oll
owi
ngsi
tuat
ion:
Cont
racti
svoi
dabl
e.
Cont
racti
sunl
awf
ul.
DAMAGES(
Sec73-
75)
Theamountofmoneyal
l
owedbyacour
tascompensat
ionf
ort
he
v
iol
ati
onofadut
y.
Ki
ndsofdamages:
1)Li
qui
dat
ed
2)Unl
i
qui
dat
ed
3)Or
dinar
y/gener
al/
usual
cour
seoft
hings
4)Speci
al
5)Vi
ndi
cti
ve/exempl
ary–nopl
aceofpuni
shment
(pr
omi
set
omar
ry)
6)Nomi
nal
-absenceofconcr
etemat
eri
alt
oshowt
heext
entdamage
 7)Loss/r
eput
ati
on
8)I
nconv
eni
ence/di
scomf
ort
-equal
tot
ort
iousl
i
abi
l
ity
.
Dut
yofmi
ti
gat
e:-t
omakel
esssev
ere,
tomakecal
mer
,lessangr
y,a
r
educt
ioni
npuni
shment
/penal
ty,
tor
educei
namountordegr
eet
o
mi
ti
gat
ethedamagecausedbyawr
ongf
ulact
.
 Est
imat
ionofl
oss/damagear
isi
ngf
rom abr
eachofcont
ract
.
 Thepar
tysuf
fer
ingf
rom t
hebr
eachofcont
ractshoul
dtake
r
easonabl
est
epst
omi
ti
gat
etheext
entofdamage,
ifhef
ail
sto
t
aker
easonabl
est
epst
omi
ti
gat
ethel
osshewi
l
lnotbeent
it
ledt
o
cl
aim compensat
ionf
orsuchl
oss.
Sec73-compensat
ionf
orl
oss/damagecausedbybr
eachofcont
ract
 Suchdamageswhi
chnat
ural
l
yar
osei
ntheusual
cour
seoft
hings
 Suchdamageswhi
cht
hepar
ti
esknew,
whent
heymadet
he
cont
ract
 Butsuchcompensat
ioni
snott
obegi
venf
oranyr
emot
eor
i
ndi
rectl
ossordamagesust
ainedbyr
easonoft
hebr
each
 Suchcompensat
ionf
ordamagear
isi
ngf
rom br
eachofaquasi
-
cont
ract
.
Sec74-compensat
ionf
orbr
eachofcont
ractwher
epenal
tyst
ipul
ated
f
oe
Sec75-r
ight
ful
l
yresci
ndscont
racti
sent
it
ledt
ocompensat
ion.
SUI
TFORDAMAGES
I
tmeansmonet
arycompensat
ional
l
owedf
orl
oss.
Pur
posei
stocompensat
eaggr
iev
edpar
tyandnott
opuni
shpar
ty
asf
aul
t.I
tist
oputt
hei
njur
edpar
tyi
nthesameposi
ti
on(
doct
ri
neof
r
est
it
uti
on)
.
I
nIndi
a,r
ulesr
elat
ingt
odamagesar
ebasedonEngl
i
shj
udgment
ofHadl
eyvs.Baxendal
e.
Thef
act
sofcasewer
e–H’
smi
l
lwasst
oppedduet
othebr
eakdownof
t
heshaf
t.Hedel
i
ver
edt
heshaf
ttocommoncar
ri
ert
orepai
ritandagr
ee
t
opaycer
tai
nsum ofr
epai
ritandagr
eet
opaycer
tai
nsum ofmoneyf
or
doi
ngt
hiswor
k.Hhasi
nfor
medt
oBt
hatdel
aywoul
dresul
tint
olossof
pr
ofi
t.Bdel
i
ver
edt
heshaf
taf
terr
easonabl
eti
meaf
terr
epai
r.Hf
il
edsui
t
f
orl
ossofpr
ofi
t.I
twashel
dthatBi
snotl
i
abl
eforl
ossofpr
ofi
t.The
cour
tlai
ddownr
ulet
hatdamagecanber
ecov
eredi
fpar
tyhasbr
eachof
cont
ract
.
I
nfactt
hemi
l
lwasal
readyst
oppedduet
othebr
eakageoft
heshaf
t,
wi
thwhi
cht
hedef
endantwasnot
hingt
odo.I
twast
hef
aul
toft
he
pl
aint
if
fnoti
nfor
mingt
her
eal
cir
cumst
ances.
I
twasaccr
uedi
nthenat
ureandmechani
cal
process.I
fthei
mpor
tance
oft
hear
rangi
ngnewonewast
oldt
othedef
endant
,hemi
ghthav
e
ar
rangedt
hesubst
it
utear
rangement
sforqui
ckt
ranspor
tat
ionoft
he
shaf
t.
KI
NDSOFDAMAGES
Sec73:
compensat
ionf
orl
ossordamagescausedbybr
eachofcont
ract
Compensat
ionf
orf
ail
uret
odi
schar
geobl
i
gat
ionr
esembl
i
ngt
hose
cr
eat
edbycont
ract
.
I
ll
ust
rat
ion:
Acont
ract
stor
epai
rB’
shousei
nacer
tai
nmanner
,and
r
ecei
vespay
menti
nadv
ance.Ar
epai
rst
hehouse,
butnotAcct
othe
cont
ract
.Bi
sent
it
ledt
orecov
erf
rom At
hecostofmaki
ngt
her
epai
rs
conf
ormt
othecont
ract
.
 Remot
enessofdamage
1)Damagear
isi
ngi
ntheusual
cour
seoft
hings
2)Mor
elossar
isi
ngf
rom t
hespeci
alci
rcumst
ances
Sec74:
compensat
ionf
orbr
eachofcont
ractwher
epenal
tyst
ipul
ated
f
or.
Thef
oll
owi
ngar
ethedi
ff
erentki
ndsofdamages:
 Or
dinar
ydamages
Thesear
ethedamageswhi
char
epay
abl
efort
hel
ossar
isi
ng
nat
ural
l
yanddi
rect
lyasr
esul
tofbr
eachofcont
ract
.Iti
sal
so
knownaspr
oxi
mat
edamageornat
ural
damage.

Speci
aldamages
Thesear
edamageswhi
char
epay
abl
eforl
ossar
isi
ngduet
osome
speci
alci
rcumst
ances.I
t can be r
ecov
ered onl
yif speci
al
ci
rcumst
anceswhi
chr
esul
tinspeci
all
ossi
ncaseofbr
eachof
cont
ractandpar
tyhav
enot
iceofsuchdamage.
Exampl
e:Asendssampl
eofhi
spr
oduct
sforexhi
bit
iont
oanagent
ofar
ail
waycompanyf
orcar
ri
aget
o“NewDel
hi”f
oranexhi
bit
ion.
Theconsi
gnmentnot
est
ated:“
MustbeatNew Del
hi,Monday
Cer
tai
n.”Duet
onegl
i
genceoft
hecompany
,thegoodsr
eached
onl
yaf
tert
heexhi
bit
ionwasov
er.Hel
d,t
hecompanywasl
i
abl
efor
t
he l
oss caused by l
ate ar
ri
valoft
he pr
oduct
s because t
he
company
’sagentwasawar
eoft
hespeci
alci
rcumst
ances.
Exempl
aryorpuni
ti
veorv
indi
cti
vedamages
Thesedamagesar
eal
l
owednott
ocompensat
epar
tybutasmean
ofpuni
shmentt
odef
aul
ti
ngpar
ty.Thecour
tmayawar
dthese
damagesi
nthecaseof
:
Br
eachofcont
ractt
omar
ry–l
ossbasedonment
ali
njur
y.
Wr
ongf
uldi
shonourofcheque–smal
l
eramount
,lar
gert
he
damage.
Nomi
nal
damages
Wher
epar
tysuf
fer
snol
oss,
thecour
tmayal
l
ownomi
naldamages
si
mpl
yto est
abl
i
sh t
hatpar
tyhas pr
oved hi
s case and won.
Nomi
nal
damagei
sver
ysmal
li
namount
.
Damagesf
ori
nconv
eni
ence
I
fpar
tyhassuf
fer
edphy
sical
inconv
eni
ence,
discomf
ortf
orment
al
agonyas r
esul
tofbr
each ofcont
ract
,par
tycan r
ecov
ert
he
damagef
orsuchi
nconv
eni
ence.
Exampl
e:Aphot
ogr
apheragr
eedt
otakephot
ogr
aphsataweddi
ng
cer
emonybutf
ail
edt
odoso.Thebr
idebr
oughtanact
ionf
ort
he
br
eachofcont
ract
.Hel
d,shewasent
it
ledt
odamagesf
orher
i
njur
edf
eel
i
ngs.

Li
qui
dat
eddamagesandpenal
ty
Par
tymayspeci
fyamountatt
het
imeofent
eri
ngi
ntocont
ract
.
Theamountsospeci
fi
edmaybe(
a)l
i
qui
dat
eddamage,or(
b)
penal
ty.
I
fspeci
fi
ed sum r
epr
esent
,fai
rand genui
ne pr
e – est
imat
e
damagesl
i
kel
ytor
esul
tdue t
o br
each,i
ti ed l
scal
l i
qui
dat
ed
damage.
Buti
fspeci
fi sdi
edsum i spr
opor
ti
onat
etot
hedamages,
iti
scal
l
ed
aspenal
ty.
Asr
egar
dthepay
mentofl
i
qui
dat
eddamagesandpenal
tycour
t
can’
t’i
ncr
easeamountofdamagesbey
ondt
heamountspeci
fi
ed
i
nthecont
ract
.

Exampl
e:Agi
vesB,abondf
ort
her
epay
mentofRs.
1,000wi
th
i
nter
estat12percent
,att
heendofsi
xmont
hs,wi
thast
ipul
ati
on
t
hat
,incaseofdef
aul
t,t
hei
nter
estshal
lbepay
abl
eatt
her
ateof
75percent
,fr
om t
hedat
eofdef
aul
t.Thi
sisast
ipul
ati
onbywayof
penal
ty,and B i
s onl
y ent
it
led t
o r
ecov
er f
rom A such
compensat
ionast
heCour
tconsi
der
sreasonabl
e.
 For
fei
tur
eofsecur
it
ydeposi
t
Anycl
ause i
n cont
ractent
it
li
ng t
he aggr
iev
ed par
tyt
ofor
fei
t
secur
it
ydeposi
tint
henat
ureofpenal
tyandcour
tmayawar
d
r
easonabl
ecompensat
ion.

⇒ Pay
mentofi
nter
est
I
tisper
missi
ble.
I
fint
eresti
sinnat
ureofpenal
ty,
cour
tmaygr
antr
eli
ef.
fnor
I ateofi
nter
esti
sspeci
fi
edi
ncont
ractpar
tyshal
lbel
i
abl
eto
payaspert
hel
awi
nfor
ceoraspercust
om orusageoft
rade.

Costofsui
tordecr
ee
Thecour
thasal
sodi
scr
eti
ont
oawar
dcostofsui
tfordamagesi
n
addi
ti
ont
othedamagesf
orbr
eachofcont
ract
.

Sui
tforSpeci
fi
cPer
for
mance
I
tmeans,demandi
ng an or
derf
rom cour
tthatpr
omi
se agr
eed i
n
cont
ractshal
lbecar
ri
edout
.Recour
seofal
ter
nat
iver
emedyi
nst
eadof
r
ecov
eri
ngdamages.
I
tiscont
ainedi
ntheSpeci
fi
cRel
i
efAct
,1963.
⇒ Wheni
sspeci
fi
cper
for
manceal
l
owed?
Wher
eact
ual
damagesar
isi
ngf
rom br
eachi
snotmeasur
abl
e.
Wher
emonet
arycompensat
ioni
snotadequat
eremedy
.

⇒ Whenspeci
fi
cper
for
mancei
snotal
l
owed?
Whendamagesar
eanadequat
eremedy
.
Wher
eper
for
manceofcont
ractr
equi
resnumber
sofmi
nut
e
det
ail
sandt
her
efor
enotpossi
blef
orcour
ttosuper
vise.
Wher
econt
racti
sofper
sonal
innat
ure.
 Wher
econt
ractmadebycompanybey
ondi
tspower
.(ul
tr
a–v
ires)
Wher
eonepar
tyt
ocont
racti
smi
nor
Wher
econt
racti
sinequi
tabl
etoei
therpar
ty.
Exampl
e:Aagr
eet
osel
lB,
anar
ti
stpai
nti
ngf
orRs.
30,
000.Lat
er
on,
her
efusedt
osel
li
t.Her
eBcanf
il
esui
tagai
nstAf
orspeci
fi
c
per
for
manceoft
hecont
ract
.
Sui
tforI
njunct
ion
I
tmeansst
ayor
dergr
ant
edbycour
t.Thi
sor
derpr
ohi
bit
saper
son
t
odopar
ti
cul
aract
.Rest
rai
ningt
heot
herpar
tyf
rom maki
ngabr
eachof
cont
ract
.
Wher
ether
eisbr
eachofcont
ractbyonepar
tyandor
der
,of
speci
fi
cper
for
mancei
snotgr
ant
edbycour
t,i
njunct
ionmaybegr
ant
ed.
Exampl
e:Fi
l
m act
ressagr
eedt
oactexcl
usi
vel
yforW f
oray
ear
andf
ornooneel
se.Dur
ingt
hey
earshecont
ract
edt
oactf
orZ.
Compensat
ion–f
ixedbyt
hecour
t
Penal
ty–f
ixedbyt
hepar
ti
es
Damages-compensat
ionandot
herl
osses.
Q.
No.
14 Whati
s QuasiCont
ract
?Expl
ain di
ff
erentki
nds ofQuasi
Cont
ract
s.
(
Mar
ks:
15)

QUASICONTRACTS:

Sect
ion68-
72oft
heI
ndi
anCont
ractAct
,1872deal
s--wi
thcer
tai
n
r
elat
ionsr
esembl
i
ngt
hosecr
eat
edbycont
ract
”.I
tincor
por
atest
hose
obl
i
gat
ionswhi
char
eknownasquasi
cont
ract
sunderEngl
i
shLaw.
Thebasi
soft
heobl
i
gat
ionsi
sthatnooneshoul
dhav
eunj
ustbenef
it
att
hecostoft
heot
her
.Inanact
ionf
orunj
ustenr
ichment
,the
f
oll
owi
ngessent
ial
shav
etobepr
oved:
 1.Thedef
endanthasbeenenr
ichedbyt
her
ecei
ptofabenef
it
.

2.Theenr
ichmenti
satt
heexpenseoft
hepl
aint
if
f.

3.Ther
etent
ionoft
heenr
ichmenti
sunj
ust
.

TheI
ndi
ancont
ractActdeal
swi
tht
hef
oll
owi
ngquasi
-cont
ract
ual
obl
i
gat
ions:

1.Cl
aimf
ornecessar
iessuppl
i
edt
oaper
soni
ncompet
entt
o
cont
ract(
sect
ion68)
:

Wher
eoneper
sonsuppl
i
esnecessar
iessui
tedt
othecondi
ti
oni
nli
fe
ofaper
son,
whoi
sincompet
entt
ocont
ract(
forexampl
e,mi
noror
l
unat
ic)
,ort
oany
onewhom suchi
ncompet
entper
soni
slegal
l
y
boundt
osuppor
t(f
orexampl
e,t
oal
unat
ic’
swi
feorchi
l
dren)t
he
per
sonf
urni
shi
ngsuchsuppl
i
esi
sent
it
ledt
oar
eimbur
sementf
rom
t
hepr
oper
tyofsuchi
ncompet
entper
son.

I
ll
ust
rat
ion:

Asuppl
i
esB,
alunat
ic,
wit
hnecessar
iessui
tedt
ohi
scondi
ti
oni
nli
fe.
Ai
sent
it
ledt
ober
eimbur
sedf
rom B’
spr
oper
ty.

2.Rei
mbur
sementofmoneypai
d,duebyanot
her(
sect
ion
69)
:

“
69.Rei
mbur
sementofaper
sonpay
ingmoneyduebyanot
heri
n
pay
mentofwhi
chhei
sint
erest
ed-Aper
sonwhoi
sint
erest
edi
n
pay
mentoft
hemoneywhi
chanot
heri
sboundbyl
awt
opayandwho
t
her
efor
epay
sit
,isent
it
ledt
ober
eimbur
sedbyt
heot
her
.

Twoessent
ial
s:

i
. Oneper
soni
sint
erest
edi
npay
mentoft
hemoneyandt
her
efor
e
 hepay
sit
.Whi
l
e,

i
i
. Anot
herper
soni
sboundbyl
awt
opayt
hesame,
buthef
ail
sto
pay
.

3.Obl
igat
ionofper
sonenj
oyi
ngbenef
itofnon-
grat
uit
ousact
(
sect
ion70)
:forappl
i
cat
ionsoft
hissect
ion,
thef
oll
owi
ng
condi
ti
onsar
etobesat
isf
ied.

a.Aper
sonl
awf
ull
ydosomet
hingf
oranot
herper
son,
orshoul
d
del
i
versomet
hingt
ohi
m,

b.Theper
sonmaki
ngt
hepay
mentordel
i
ver
ingt
het
hingmustnot
dosogr
atui
tousl
y,i
.e.heshoul
dexpectpay
mentf
ort
hesame:
and

c.Theot
herper
sonshoul
denj
oyt
hebenef
itoft
hispay
mentor
del
i
ver
yoft
het
hing.

Whenal
ltheabov
econdi
ti
onsar
esat
isf
ied,
theper
sonr
ecei
vi
ngt
he
benef
itbecomesboundt
opaycompensat
iont
otheper
sonconf
err
ing.

 Noi
ntensi
onst
odoactgr
atui
tousl
y:whent
heper
sondoesnot
i
ntendt
odoi
tgr
atui
tousl
ybutexpect
spay
mentf
ort
hesameon
doi
ngsuchact
,hecanaskf
orcompensat
ionundersect
ion70.

 Enj
oymentofbenef
itbyt
hedef
endanti
snecessar
y:t
hev
olunt
ari
l
y
accept
anceoft
hebenef
itoft
hewor
kdoneort
het
hingdel
i
ver
edi
s
t
hef
oundat
ionoft
hecl
aim undersect
ion70.

 Unj
ustbenef
itt
othedef
endantnecessar
y:sect
ion70i
sfounded
ont
hepr
inci
plet
hatoneshoul
dnotgai
nunj
ustenr
ichmentatt
he
costoft
heot
her
.Ift
her
eisnounj
ustgai
nobt
ainedi
nany
 t
ransact
ion,
sect
ion70hasnoappl
i
cat
ion.

Appl
i
cat
ionofsect
ion70agai
nstt
hegov
ernment
:

Sect
ion70pr
event
sunj
ustenr
ichmentandi
tappl
i
esasmucht
o
i
ndi
vi
dual
sast
ocor
por
ati
onsandgov
ernment
.Ift
heser
vices
r
ender
edorgoodssuppl
i
edt
othegov
ernmentar
eunderapur
por
ted
cont
ract
,whi
chdoesnotmat
eri
ali
sebecauseofnon-
ful
fi
lmentoft
he
f
ormal
i
tiespr
escr
ibedi
nar
ti
cle299oft
heconst
it
uti
on,
the
gov
ernmentcanst
il
lbemadel
i
abl
etocompensat
efort
hesame
undersect
ion70oft
hecont
ractact
,ifi
thasenj
oyedt
hebenef
itof
whathasbeendoneundert
hepur
por
tedcont
ract
.

 Sect
ion70cannotbei
nvokedagai
nstami
nor
:

Ami
nor
’sagr
eementbei
ngv
oidabi
nit
io,
hecannotbemadel
i
abl
eunder
sect
ions64and65oft
heCont
ractAct
.Buti
fnecessar
iesar
esuppl
i
ed
t
oami
nor
,hi
sest
atecanbemadel
i
abl
eundert
hesect
ion68.I
thas
beenhel
dthatnoact
ioncanbebr
oughtagai
nstami
nort
orecov
er
compensat
ionf
rom hi
m undersect
ion70.Sect
ion70cannotbei
nvoked
agai
nstami
nor
.Fi
rst
ly,
thesect
ioncov
ersev
ery“
per
son”whet
herhei
s
compet
entt
ocont
ractornot
.Secondl
y,t
her
eisnot
hingi
nlawwhi
ch
debar
sami
norf
rom enj
oyi
ngt
hebenef
itoft
heactdonebyanot
her
per
son.

4.Responsi
bil
i
tyoff
inderofgoods:

Sect
ion71cont
empl
atesst
il
lanot
herquasi
cont
ract
ual
sit
uat
ion,
i.
e.
whenaper
soni
saf
inderofgoodsbel
ongi
ngt
oanot
herandt
akest
he
goodst
ohi
scust
odyandi
sint
heposi
ti
onofabai
l
eewi
thal
l
r
esponsi
bil
i
ty.Ev
erybai
l
eehast
hef
oll
owi
ngdut
ies:
-
i
. Dut
yorr
easonabl
ecar
e(sect
ion151-
152)

i
i
. Dut
ynott
omakeunaut
hor
izeduse(
sect
ion154)

i
i
i. Dut
ynott
omi
x(sect
ion155)

i
v. Dut
ytor
etur
n(sect
ion156)

v
. Dut
ynott
osetupj
ust
ert
li(
ri
ghtoft
hir
dper
son)(
sec.
165
-
167)

v
i. Dut
ytor
etur
nincr
ease.(
sect
ion163)

5.Li
abi
l
ityofaper
songet
ti
ngbenef
itundermi
stakeor
coer
cion(
sect
ion72)
:

 Unj
ustbenef
itundermi
stake:
sect
ion72cov
ersasi
tuat
ion
wher
emoneyhasbeenpai
d,orany
thi
ngdel
i
ver
edbyone
per
sont
oanot
herei
therbymi
stakeorundercoer
cion.

 Moneypai
dorany
thi
ngdel
i
ver
edundermi
stake:
Accor
dingt
o
Ar
ti
cle265ofconst
it
uti
on,
not
axshal
lbel
evi
edorcol
l
ect
ed
exceptbyt
heaut
hor
it
yofl
aw.Lawher
emeansonl
yval
i
dlaw.
Sect
ion72andt
hesameoughtt
ober
efundedbyt
he
gov
ernmentbecauset
hegov
ernmentcannotbeal
l
owedt
o
unj
ust
lyenr
ichi
tsel
fbyr
etai
ningt
het
axsor
ecei
ved.

 Moneynotr
ecov
erabl
ewher
ether
eisnounj
ustenr
ichmentof
t
hedef
endant
:Ift
her
ecei
veroft
hemoneyhasnol
ongert
he
samewi
thhi
m,andhasf
urt
herpai
ditunderasi
mil
armi
stake,
hecannotber
equi
redt
orepayt
hesame.
  Unj
ustbenef
itundercoer
cion:
Sect
ion72per
mit
sthemoney
pai
dorany
thi
ngdel
i
ver
ed,
eit
herbymi
stakeorundercoer
cion,
t
ober
ecov
eredback.

 Compul
sionofl
awi
snotcoer
cion.

Q.
No.
15Quant
um Mer
uit
.
(
Mar
ks:
5)

Whent
hei
njur
edpar
tyhasper
for
medapar
thi
sobl
i
gat
ionundert
he
cont
ractbef
oret
hebr
eachofcont
racthasoccur
red,hei
sent
it
ledt
o
r
ecov
ert
hev
alueofwhathehasdone,
undert
hisr
emedy
.

Wher
eonepar
tyhasabsol
utel
yref
usedt
oper
for
m,orhasr
ender
ed
hi
msel
fincapabl
eofper
for
minghi
spar
toft
hecont
ract
,heput
siti
nthe
poweroft
heot
herpar
tyei
thert
osuef
ort
hebr
eachofi
tort
oresci
nd
t
hecont
ractandsueonquant
um mer
uitf
ort
hewor
kact
ual
l
ydone.
Quant
um Mer
uit
=“asmuchasear
ned”
,asmuchasi
smer
it
ed.

Whenaper
sonhasdonesomewor
kunderacont
ract
,andt
heot
her
par
tyr
epudi
atest
hecont
ract
,orsomeev
enthappenswhi
chmakest
he
f
urt
herper
for
manceoft
hecont
racti
mpossi
ble,
thent
hepar
tywhohas
per
for
medwor
kcancl
aimr
emuner
ati
onf
ort
hewor
khehasal
ready
done.

I
ll
ust
rat
ion:Aagr
eest
odel
i
ver
ed100bags,
B500bagsofwheatand
whenAhasal
readydel
i
ver
ed100bags,
Bref
usest
oacceptanyf
urt
her
suppl
y,andAcanr
ecov
erf
rom Bt
hev
alueofwheatwhi
chhehas
al
readydel
i
ver
ed.
 1.Sect
ion65oft
heactl
aysdownt
hatwhenanagr
eementi
s
di
scov
eredt
obev
oidorbecomesv
oidanyper
sonwhohas
r
ecei
vedanyadv
ant
agesundersuchagr
eementi
sboundt
o
r
est
orei
t.Ort
omakecompensat
ionf
ori
t,t
otheper
sonf
rom
whom her
ecei
vedi
t.

I
ll
ust
rat
ion:

Apay
sBRs.
1000i
nconsi
der
ati
onwi
thB’
spr
omi
set
omar
ryC,
A’s
daught
er.Ci
sdeadatt
het
imeoft
hepr
omi
se.Theagr
eementi
svoi
d,
butBmustr
epayAt
hesum ofRs.1000.

2.Sect
ion70;
-pr
ovi
dest
hatwher
eaper
sonl
awf
ull
ydoesany
thi
ng
f
oranot
herper
son,
ordel
i
ver
sany
thi
ngt
ohi
m noti
ntendi
ngt
odo
sogr
atui
tousl
y,andsuchot
herper
sonenj
oyst
hebenef
it
.Ther
eof
,
t
hel
att
eri
sboundt
omakecompensat
iont
othef
ormeri
nrespect
ofort
orest
oret
het
hingsodoneordel
i
ver
ed.

3.Whent
her
eisanexpr
essori
mpl
i
edcont
ractt
orenderser
vicesbut
t
her
ewasnoagr
eementast
oremuner
ati
on,
insuch
ci
rcumst
ancesr
easonabl
eremuner
ati
oni
spay
abl
ei.
e.quant
um
mer
uit
.

4.Whent
hecompl
eti
onoft
hecont
racthasbeenpr
event
edbyt
he
actoft
heot
herpar
tyt
ocont
ract
.

5.Whenacont
racti
sdi
vi
sibl
eandt
hepar
tyi
ndef
aul
thasenj
oyedt
he
benef
itoft
hepar
tper
for
mance,
thepar
tywhoper
for
medt
hecont
ract
maysueonquant
um mer
uit
.Ift
hecont
racti
snotdi
vi
si
ble,
thepar
ty
whoper
for
medt
hecont
ractcannotcl
aimr
emuner
ati
onont
he
gr
oundofquant
um mer
uit
.

(
a)I
ncaseofv
oidagr
eementorcont
ractt
hatbecomes
 Anyper
sonwhohasr
ecei
vedanyadv
ant
ageundersuch
agr
eementorcont
racti
sboundt
orest
orei
fort
omakecompensat
ion
f
ori
t,t
otheper
sonf
rom whor
ecei
vedi
t.
Ex.:
(1)-A–B–10000–t
omar
ryc(
A’sdaught
er)–C–deat
hof
t
het
imeofper
for
manceofcont
ract–Bmustr
epayARs1000.
Ex.(
2):
-A–Bdecl
i
ne250qui
nceofr
icebef
oret
he1stofMay
.A
del
i
ver
s130qu.Onl
ybef
oret
hatdayandnoneaf
ter
.Br
etai
nst
he
130qu.af
tert
hef
ir
stofMay
.Hei
sboundt
opayAf
ort
hem.
Ex(
3):
-A si
nger– t
woni
ght
sinev
eryweekdur
ingt
henextt
wo
mont
h and B any ages t
o pay herRs 100 f
oreach ni
ght
’s
per
for
manceont
hesi
xthni
ght
,Awi
l
ful
l
yabsentper
fect
.Bmust
payaf
ort
hef
iveni
ghtonwhi
chshehadsung.

(
b)I
ncaseofActpr
event
ingt
hecompl
eti
ngofcont
ract
:-
I
fapar
tydoesnotcompl
etet
hecont
ractorpr
event
stheot
herpar
tyt
o
compl
etet
hecont
ractt
heaggr
iev
edpar
tycansueorquant
um
mer
uit
.
Ex.
:-owner– P wr
it
eabookt
obepubl
i
shedasser
iesi
nhi
s
magazi
ne.Af
teraf
ewser
ieswer
epubl
i
shedt
hepubl
i
cat
ionoft
he
magazi
newasst
opped.I
twashel
dthatPcoul
dcl
aim pay
menton
quant
um mer
uitf
ort
hepar
tal
readypubl
i
shed.
(
c)I
ncaseofdi
vi
sibl
econt
ract
:-
(
1)I
fthecont
racti
sdi
vi
sibl
eand
(
2)I
fthepar
tynotatdef
aul
thasenj
oyedbenef
itoft
hepoi
nt
per
for
mance.
(
3)Thecont
racti
spar
typer
for
med
I
ftheabov
econdi
ti
onansat
isf
ied,
thepar
tyatf
aul
tmaycl
aim on
pay
mentonquant
um mer
uitf
ort
hepar
tofcont
ractper
for
medbyhi
m
beconr
ecov
ersuchpr
opor
ti
onoft
hecont
ractpr
iceast
hewor
kdone,
byhi
m bear
stot
hewor
kundert
hecont
ract
s.
(
d)I
ncaseofi
ndi
vi
sibl
econt
ractper
for
medcompl
etel
ybutbadl
y.
Cont
racti
sindi
vi
sibl
e
Lumpsum consi
der
ati
on
Compl
etel
yper
for
med
Per
for
medbadl
y

Thepar
tyatf
aul
tmayr
ecov
ert
hecont
ractpr
ice(
Lumpsum pr
ice)l
ess
t
hededuct
ionmadef
ordonebadl
y.
Ex.
:-Xagr
eedt
odecor
ateY’
sfl
atf
oral
umpsum ofRs20,
000.Xdi
dthe
compl
etewor
kbutYcompl
ainedoff
aul
tywor
kmanst
op.I
tcost
sY
anot
herRs3000t
oremedyt
hedef
ect
.Xcoul
drecov
eronl
yRs17000
f
rom Y.
(
e)I
ncaseofNon–gr
atui
tousAct–Thr
eecondi
ti
on
(
i)Thet
hingmusthav
ebeendoneordel
i
ver
edl
awf
ull
y.
(
ii
)Theper
sonwhohasdoneordel
i
ver
edt
het
hingmustnothav
e
i
ntendedt
odosogr
atui
tousl
y
And
(
ii
i)Theper
sonf
rom whom t
heacti
sdonemusthav
eenj
oyedt
he
benef
itoft
heact
.
Ex.
:-A,at
radesmanl
eav
esgoodsatB’
sshopbemi
stakeBt
reat
sthe
goodashi
sown.Hei
sboundt
opayAf
ort
hem.

Q.
No.
16Ti
mef
orper
for
mance
Ti
mepl
aceandmannerofper
for
mance[
46–50]
Thepar
ti
esar
efr
eet
odeci
deast
owhenandwher
etheper
for
manceof
t
hecont
racti
stobemade.
1.Not
imei
sspeci
fi
edf
orper
for
mance[
Sec46]
 Ti
meofper
for
mancei
snotspeci
fi
ed+pr
omi
soragr
eedt
o
per
for
m wi
thout
,ademandf
rom t
hepr
omi
set
heper
for
mancemustbe
madewi
thi
nar
easonabl
eti
me.Reasonabl
eti
me–i
neachpar
ti
cul
ars
case–aquest
ionoff
act
.
Sec36(
2)t
hesal
eofgoodsactal
socont
ainsasi
mil
arpr
ovi
sion:
-when
t
hesel
l
eri
sboundt
odel
i
vert
hegoods,
butnot
imef
orsendi
ngt
hem i
s
f
ixed,
thesel
l
eri
sboundt
osendt
hem wi
thi
nar
easonabl
eti
me.
 Ti
mef
orper
for
manceofpr
omi
se,
wher
enoappl
i
cat
iont
obe
madeandnot
imei
sspeci
fi
ed.(wi
thi
nar
easonabl
eti
me)
2.Ti
mespeci
fi
edbuthournotment
ioned[
47]
.
Ti
meofper
for
mancespeci
fi
ed+pr
omi
soragr
eedt
oper
for
m wi
thout
appl
i
cat
ionbyt
hepr
omi
see
Per
for
mancemustper
for
m ont
hedayf
ixeddur
ingt
heusual
busi
nesshour
sandatt
hepl
aceatwhi
cht
hepr
omi
seoughtt
obe
per
for
med.
 Ti
meandpl
acef
orper
for
manceofpr
omi
se,
wher
eti
mei
s
speci
fi
ed,
andnoappl
i
cat
iont
obemade.
(dur
ingbusi
nesshour
s
onsuchday/usualcl
osi
ngt
ime)
Apr
omi
set
odel
i
vergoodsatB’ ehouseon1stJan.Ont
swar hatday
,A
br
ingst
hegoodst
ob’
swar
ehouse,
butaf
tert
heusual
hourf
orcl
osi
ngi
t,
andt
heyar
enotr
ecei
ved.Ahasnotper
for
medhi
spr
omi
se.
3.Wher
eTi
mei
sfi
xedandappl
i
cat
iont
obemade[
48]
Pr
operpl
aceandwi
thi
ntheusual
hourofbusi
ness
Pr
omi
seet
oappl
yforper
for
mance
 Whent
hepr
omi
sei
stoappl
yforper
for
mance,
hemustdosoat
pr
opert
imeandpl
ace.
(usualhour
sofbusi
ness)
4.Per
for
manceofpr
omi
sewher
enopl
acei
sspeci
fi
edandno
appl
i
cat
ioni
stobemadebyt
hepr
omi
se[
49]
 I
tist
hedut
yoft
hepr
omi
sort
oappl
ytot
hepr
omi
set
oappoi
nta
r
easonabl
epl
acef
ort
heper
for
manceandper
for
mitatsuchappoi
nted
pl
ace.
 Pl
acef
orper
for
manceofpr
omi
se,
wher
eappl
i
cat
iont
obemade
andnopl
acef
ixedf
orper
for
mance(r
easonabl
epl
ace)
Aunder
takest
odel
i
verat
housandmaundsofj
utet
oBonaf
ixedday
.A
mustappl
ytoBt
oappoi
ntar
easonabl
epl
acef
ort
hepur
poseof
r
ecei
vi
ngi
t,&mustdel
i
veri
ttohi
m atsuchpl
ace.
5.Per
for
mancei
nmanneroratt
imepr
escr
ibedorsanct
ioned
bypr
omi
se[
50]
I
nsuchpr
escr
ibedmannerand
Pr
escr
ibedt
ime
 Theper
for
manceofanypr
omi
semaybemadei
nanymanner
,or
atanyt
imewhi
cht
hepr
omi
sepr
escr
ibesorsanct
ions.
Ex:-‘
A’desi
res‘
B’whooweshi
m Rs10,
000t
osendhi
m apr
omi
ssor
y
not
eforRs10,
000byPost
.Thedebti
sdi
schar
gedassoonas‘
B’put
s
i
ntot
hepostal
ett
ercont
aini
ngt
hepr
omi
ssor
ynot
edul
yaddr
essed
t
o‘A’
.
BowesA2,
000r
upees.Adesi
resBt
opayt
heamountt
oA’
saccount
wi
thC,
abanker
.Bwhoal
sobankswi
thC,
order
stheamountt
obe
t
ransf
err
edf
rom hi
saccountt
oA’
scr
edi
t,andt
hisi
sdonebyC.

Q.
No.
17 Expl
aint
hepr
ovi
sionsr
elat
ingt
ocancel
l
ati
onof
i
nst
rument
s.

Thespeci
fi
crel
i
efactpr
ovi
desf
orspeci
fi
crel
i
efs.Speci
fi
crel
i
efmeans
r
eli
efofacer
tai
nspeci
es,
i.
e.,
anexactorpar
ti
cul
ar,
anamed,
fixedor
det
ermi
nedr
eli
ef.I
tunder
stoodaspr
ovi
dingr
eli
efofaspeci
fi
cki
nd
r
athert
hant
hegener
alr
eli
efofdamagesorcompensat
ion.
 Recov
eri
ngpossessi
onofpr
oper
ty
 Speci
fi
cper
for
manceofcont
ract
s
 Rect
if
icat
ionofi
nst
rument
s
 Resci
ssi
onofcont
ract
s
 Cancel
l
ati
onofi
nst
rument
s
 Decl
arat
orydecr
ees
 Pr
event
iver
eli
efv
izi
njunct
ions

Sec31-
33Deal
swi
tht
hecancel
l
ati
onofi
nst
rument
s.
Sec31-cancel
l
ati
onmaybeor
der
ed
1)Anyper
sonagai
nstwhom awr
it
teni
nst
rumenti
svoi
dorv
oidabl
e;
2)Whohasr
easonabl
eappr
ehensi
ont
hatsuchi
nst
rumenti
flef
t
out
standi
ngmaycausehi
m ser
iousi
njur
y;
3)Hemaysuet
ohav
ethei
nst
rumentadj
udgedbyt
hecour
tasv
oid
orv
oidabl
e;
4)Thecour
tinsuchasui
tmay
,ini
tsdi
scr
eti
onadj
udget
he
i
nst
rumentasv
oidorv
oidabl
eandor
deri
ttobedel
i
ver
edupand
cancel
l
ed.
I
ll
ust
rat
ions:
 A,
theownerofashi
p,byf
raudul
ent
lyr
epr
esent
inghert
obesea-
wor
thy
,inducesB,
anunder
wri
ter
,toi
nsur
eher
;Bmayobt
aint
he
cancel
l
ati
onoft
hepol
i
cy.
 Aconv
eysl
andt
oBwhobequeat
hsi
ttoCanddi
es.Ther
euponD
get
spossessi
onoft
hel
andandpr
oducesaf
orgedi
nst
rument
st
ati
ngt
hatt
heconv
eyancewasmadet
oBi
ntr
ustf
orhi
m.C
mayobt
aint
hecancel
l
ati
onoft
hef
orgedi
nst
rument
.
  Cancel
l
ati
onofsal
edeedpr
operduet
ofr
audul
ent
lyexecut
ed
bydef
endantwi
thoutconsentandknowl
edgeofowner
.
 St
atementcont
ainedi
nwi
l
ladmi
ssi
blei
nsui
tforcancel
l
ati
onof
sal
edeed.
 Sui
tforcancel
l
ati
onofsal
e-deed–ci
vi
lcour
t’
sjur
isdi
cti
onnot
bar
redbyi
nvokedsec331ofU.
P.Zami
ndar
iabol
i
tionandl
and
r
efor
msact1950.
 Mai
ntai
nabi
l
ityofsui
tfordecl
arat
ionofsal
edeedasnul
land
v
oid.
 Di
smi
ssal
ofsui
tfordecl
ari
ngsal
edeedasv
oidongr
oundof
f
raudandmi
srepr
esent
ati
on.
 Sui
tfi
l
edaf
terl
apseof13y
ear
sbar
redbyl
i
mit
ati
on.
(sal
edeed
asnul
l&v
oidi
swi
thi
n3y
ear
sfr
om t
hedat
eofaccr
ual
ofcause
ofact
ion)
 Power
sofat
tor
ney–sui
tfordecl
arat
ion,
inj
unct
ionand
cancel
l
ati
onofsal
edeed-sui
tpr
oceedi
ngsnotbonaf
ide
pr
oceedi
ngs.
Whati
nst
rument
smaybepar
ti
all
ycancel
l
ed(
sec32)
t
her
ight
sandobl
i
gat
ionscont
ainedwher
einar
esepar
abl
e.I
nsucha
caset
hecour
tmay
,ini
tsdi
scr
eti
on,
all
owapar
toft
hei
nst
rumentt
obe
cancel
l
edandal
l
owt
her
emai
ningt
ost
and.Wher
ether
ight
sand
obl
i
gat
ionsunderani
nst
rumentar
enotsepar
abl
e,t
hegoodpar
tcannot
besepar
atedf
rom t
hebadpar
t;t
her
ecannotbepar
ti
alcancel
l
ati
onof
t
hei
nst
rument
.Thewhol
eoft
hei
nst
rumenthast
obecancel
l
edbyt
he
cour
t.
I
ll
ust
rat
ion:
-
Adr
awsabi
l
lonB,
whoendor
sesi
ttoCbywhom i
tappear
stobe
endor
sedt
oD,
whoendor
sesi
ttoE.C’
sendor
sementi
sfor
ged.Ci
s
ent
it
ledt
ohav
esuchendor
sementcancel
l
ed,
leav
ingt
hebi
l
ltost
andi
n
ot
herr
espect
s.

Poweroft
hecour
ttor
est
orebenef
itoral
l
owcompensat
ionon
cancel
l
ati
onofani
nst
rument(
sec33)
Wher
einst
rumenti
scancel
l
edori
ssuccessf
ull
yresi
stedasbei
ngv
oid
orv
oidabl
e
33(
1)t
hecour
tmayr
equi
ret
hepl
aint
if
f,t
hepar
tyt
owhom t
her
eli
efi
s
gr
ant
ed—
i
) Tor
est
ore,
sof
arasmaybeanybenef
itwhi
chhemayhav
e
r
ecei
vedf
rom t
heot
herpar
ty,
&
i
i
) Tomakeanycompensat
iont
ohi
m whi
chj
ust
icemayr
equi
re.

33(
2)r
equi
ret
hedef
endantt
orest
orebenef
itr
ecei
vedbyhi
m andt
opay
compensat
ion,
whenher
esi
stst
hesui
tofenf
orci
ngani
nst
rument
agai
nsthi
m.
Compensat
ionbyami
nor
;-

Sec39-speci
fi
crel
i
efact
,1877
Sec39-anyper
sonagai
nstwhom awr
it
teni
nst
rumenti
svoi
dor
v
oidabl
e,whohasr
easonabl
eappr
ehensi
ont
hatsuchi
nst
rument
,ifl
eft
out
standi
ng,
maycausehi
m ser
iousi
njur
y,maysuet
ohav
eitadj
udged
v
oid/v
oidabl
eandt
hecour
tmay
,ini
tsdi
scr
eti
onsoadj
udgei
tandor
der
i
ttobedel
i
ver
edupandcancel
l
ed.
Sec41-onadj
udgi
ngt
hecancel
l
ati
onofani
nst
rument
,hecour
tmay
r
equi
ret
hepar
tyt
owhom suchr
eli
efi
sgr
ant
edt
omakeany
compensat
iont
otheot
herwhi
chj
ust
icemayr
equi
re.
Pr
esentposi
ti
on:
-
1)I
fami
norgoest
othecour
taspl
aint
if
ffort
hecancel
l
ati
onofan
i
nst
rument
,thecour
tmay
,onadj
udgi
ngt
hecancel
l
ati
onr
equi
re
suchami
nor
,tor
est
oret
hebenef
itandt
omakesuch
compensat
iont
otheot
herpar
tyasj
ust
icemayr
equi
re.Theobj
ect
oft
hepr
esentpr
ovi
sioni
stor
est
oret
hepar
ti
est
othei
ror
igi
nal
posi
ti
on,
asf
araspossi
ble.
2)Whent
hemi
nori
sthedef
endanti
nacaseandher
esi
stst
he
enf
orcementoft
hesui
tont
hegr
oundt
hathei
sincompet
entt
o
cont
ract
,thecour
tmayaskhi
mtor
est
oresuchbenef
itt
othe
ot
herpar
ty,
tot
heext
enthi
sest
atehasbeenbenef
it
edt
her
eby
.
Thr
ought
hispr
ovi
siont
hepar
ti
esar
etr
iedt
obeputt
othe
pr
econt
ractposi
ti
on.Mor
eov
er,
compensat
ioni
nter
msofmoney
i
sal
soper
mit
ted.I
not
herwor
ds,
itmeanst
hatt
her
uleofEngl
i
sh
l
awl
aidi
nLesl
i
ev.shei
l
lisnotappl
i
cabl
einI
ndi
a.
Sec33appl
i
est
obot
hvoi
daswel
lasv
oidabl
einst
rument
sofwhi
ch
cancel
l
ati
oni
ssought
.Sec33oft
hespeci
fi
crel
i
efact1963hast
obe
r
eadwi
thSec65I
ndi
ancont
ractact
s,1872
Sec65:
-Whenanagr
eementi
sdi
scov
eredt
obev
oidorwhenacont
ract
becomesv
oid,
anyper
sonwhohasr
ecei
vedanyadv
ant
ageundersuch
agr
eementorcont
racti
sboundt
orest
orei
t,ort
omakecompensat
ion
f
ori
t,t
otheper
sonf
rom whom her
ecei
vedi
t.

Q.
No.
18 Wr
it
eanot
eon speci
fi
cper
for
manceofcont
ract
pr
ovi
dedundert
heact
.
(
Mar
ks:
15)
SPECI
FICPERFORMANCEOFCONTRACT

Sect
ion10t
o13expl
ainst
hepr
ovi
sionsaboutcont
ract
swhi
chcanbe
speci
fi
cal
l
yenf
orced”
.Speci
fi
cper
for
mancei
sanequi
tabl
erel
i
ef.
Sect
ion10def
inescasesi
nwhi
chspeci
fi
cper
for
manceofcont
ract
enf
orceabl
e.

RULES:

1.Nost
andar
dofascer
tai
ningdamages:
Whent
her
eexi
stsno
st
andar
dforascer
tai
ningt
heact
ual
damagecausedbyt
henon-
per
for
manceoft
heactagr
eedt
obedone.Acont
ractt
odel
i
ver
speci
fi
cgoodswi
l
lbeenf
orcedbywayofper
for
mancei
ftheyar
e
“
art
icl
esofunusual
beaut
y,r
ari
tyanddi
sti
nct
ion”orofspeci
al
v
aluet
othepar
tysui
ngbyr
easonofper
sonal
orf
ami
l
y
associ
ati
onsort
hel
i
ke.

I
ll
ust
rat
ions:
Aagr
eest
obuyandBagr
eest
osel
lapi
ctur
ebyadead
pai
nterand2chi
nav
ases.Amaycompel
Bspeci
fi
cal
l
ytoper
for
m
t
hiscont
ractf
ort
her
eisnost
andar
dforascer
tai
ningt
heact
ual
damagewhi
chwoul
dbecausedbyi
tsnon-
per
for
mance.

Ot
herex
ampl
esofcont
ract
swhi
chcanbespeci
fi
cal
l
yenf
orced:

a)Agr
eementt
oret
ir
e.

b)Cont
ractt
oconv
eyacont
ingenti
nter
est
,

c)Cont
ractf
ort
hesal
eandpur
chaseofl
i
feameni
ti
es.

d)Acont
ractf
ort
hesal
eofpat
ent
.

e)Anagr
eementf
orsepar
ati
onbet
weenhusbandandwi
fenot
cont
aini
nganypr
ovi
sionwhi
chi
svoi
d.
2)Pecuni
arycompensat
ionnotadequat
erel
i
ef:
whencompensat
ioni
s
anadequat
erel
i
eft
othepl
aint
if
f,adecr
eef
ort
hespeci
fi
cper
for
mance
oft
hecont
ractshoul
dnotbemade.

I
ll
ust
rat
ion:
Acont
ract
stosel
landBcont
ract
stobuyacer
tai
nnumber
ofr
ail
wayshar
esofapar
ti
cul
ardescr
ipt
ion.Ar
efusest
ocompl
etet
he
sal
e.Bmaycompel
Aspeci
fi
cal
l
ytoper
for
mthi
sagr
eement
,fort
he
shar
esar
eli
mit
edi
nnumberandnotal
way
sav
ail
abl
eint
hemar
ket
,and
t
hei
rpossessi
onscar
ri
eswi
thi
tthest
atusofashar
ehol
derwhi
ch
cannotot
her
wisebepr
ocur
ed.

Ot
herex
ampl
esofcont
ract
soft
heseki
ndswhi
chcanbespeci
fi
cal
l
y
enf
orcedar
e:

1)Shar
esofcompany
.

2)Shar
esofpr
oper
ty.

3)Chat
tel
s

4)Bui
l
dingcont
ractet
c.

3)Whenpecuni
arycompensat
ioni
snotr
ecov
erabl
e:Thei
nsol
vencyofa
def
endanti
sgener
all
yagr
oundf
orgr
ant
ingspeci
fi
crel
i
eft
othepl
aint
if
f
undert
hishead,
wher
ether
eisapr
obabi
l
ityt
hatpecuni
ary
compensat
ioni
fawar
dedcannotber
ecov
eredandspeci
fi
cper
for
mance
canbegr
ant
ed.

*
ANYCONTRACT:
Theset
wowor
dsi
nsect
ion10oft
hisactmeant
hat
anycont
ractwhi
chcanbeenf
orceabl
ebyt
hel
aw.Ani
nval
i
d,v
oid,
i
rr
egul
ar,
unl
awf
ulcont
ractcannotcomeundert
hissect
ion.Sect
ion2(
h)
oft
heCont
ractActdef
ines“
anagr
eementenf
orceabl
ebyl
awi
sa
cont
ract
”.Pat
entr
ight
s,copy
right
s,chosesi
nact
ion,
chat
tel
ofspeci
al
v
alue,
etc.canbespeci
fi
cal
l
yenf
orced.

*
DISCRETI
ONOFTHECONTRACT:
Thespeci
fi
cper
for
manceoft
he
cont
ractdependsupont
hedi
scr
eti
onoft
hecour
t.Sect
ion10cl
ear
ly
ment
ionst
hewor
ds“
…anycont
ractmayi
nthedi
scr
eti
onoft
hecour
tbe
enf
orced.
”Ther
efor
e,“
thej
uri
sdi
cti
ont
odecr
eespeci
fi
cper
for
manceof
acont
racti
sdi
scr
eti
onar
y.Thi
sdi
scr
eti
onoft
hecour
tisnotar
bit
rar
y
butsoundandr
easonabl
e.”

*
MOVABLEPROPERTY:accor
dingt
ocl
ause(
ii
)ofexpl
anat
ion
appendedt
osect
ion10,
Speci
fi
cper
for
manceofacont
ractr
elat
ingt
o
mov
abl
epr
oper
tycanbesoughtbef
oret
hecour
t.

*PARTNERSHI
P:I
tist
hegener
alpr
inci
plet
hatpar
tner
shi
pfi
rmsar
e
f
ormed“
bywi
l
lofpar
ti
es”
.TheCour
tsgener
all
ydonoti
nter
fer
eint
he
f
ormat
ionofpar
tner
shi
pfi
rms.Howev
er,
incer
tai
ncases,
viz.acont
ract
f
ort
hepur
chaseofashar
einpar
tner
shi
pbusi
ness,
oranopt
iont
oent
er
i
ntopar
tner
shi
pmayspeci
fi
cal
l
ybeenf
orcedbycour
ts.

*
BUI
LDI
NGCONTRACT:Ther
eisnodoubtt
hatasagener
alr
ulet
he
cour
twi
l
lnotenf
orcespeci
fi
cper
for
manceofabui
l
dingcont
ract
,butan
except
ionf
rom t
her
ulehasbeenr
ecogni
sed.

*
LEASEOFI
MMOVABLEPROPERTY:
acont
ractf
ort
hel
easeof
i
mmov
abl
epr
oper
tyi
sspeci
fi
cal
l
yenf
orceabl
e.

*
SALEOFLEASEHOLD:
Asal
eofl
easehol
dpr
oper
tycanbespeci
fi
cal
l
y
enf
orceabl
e.

*
SALEOFI
MMOVABLEPROPERTY:
Expl
anat
iont
osect
ion10cl
ari
fi
es
t
hatanagr
eementf
ort
hesal
eofi
mmov
abl
epr
oper
tycanbespeci
fi
cal
l
y
enf
orceabl
e.
CONTRACTSPERTAI
NINGTOTRUSTS:
Sect
ion11posi
tst
hatt
he
cont
ract
sconnect
edwi
tht
rust
smaybeor
der
edf
ort
hespeci
fi
c
per
for
mance.Sect
ion11expl
ainst
hecasesi
nwhi
chspeci
fi
c
per
for
manceofcont
ract
sconnect
edwi
tht
rust
senf
orceabl
e.

a.Cont
ract
sconnect
edwi
tht
rust
s:Whent
hecont
racti
sfort
he
per
for
manceofat
rust
,thecour
tmayal
l
owspeci
fi
cper
for
mance.

b.Sect
ion11(
2)pr
ovi
dest
hatacont
ractmadebyat
rust
eei
nexcess
ofhi
spower
sori
nbr
eachoft
rustcannotbespeci
fi
cal
l
yenf
orced.

c.TheI
ndi
anTr
ust
sAct
,1882expl
ainst
hepr
ovi
si
onsaboutt
het
rust
.
At
rusti
sanobl
i
gat
ionannexedt
otheowner
shi
pofpr
oper
ty,
and
ar
isi
ngoutofaconf
idencer
eposedi
nandaccept
edbyt
heowner
,
ordecl
aredandaccept
edbyhi
mfort
hebenef
itofanot
her
,orof
anot
herandowner
.Theper
sonwhodecl
arest
heconf
idenceand
wr
it
est
het
rust
-deedi
scal
l
ed“
Aut
horoft
het
rust
”.Theper
son
whoaccept
stheconf
idencei
scal
l
edt
het
rust
ee.Theper
sonf
or
whosebenef
itt
heconf
idencei
saccept
edi
scal
l
edt
he
“
benef
ici
ary
”.

Tr
usti
ncl
udesendowment
sforr
eli
giousandchar
it
abl
epur
poses.

d.Whent
heaut
horoft
het
rustconf
ershugeanddi
scr
eti
onar
y
power
stot
het
rust
eei
nthet
rustdeed,
thecour
tcannoti
nter
fer
e
wi
tht
hedi
scr
eti
onar
ypoweroft
het
rust
ee.

Sect
ion13expl
ainst
hePROVI
SIONSANDCLARI
FIESTHERI
GHTSoft
he
per
sonwhopur
chasesf
rom asel
l
er,
whohasnot
it
leorhasi
mper
fect
t
it
le.

Sect
ion12oft
hespeci
fi
crel
i
efactexpl
ainsabout“
speci
fi
cper
for
mance
ofpar
tofcont
ract
”.
Sect
ion12(
1)oft
heSpeci
fi
cRel
i
efact
,whi
chpr
ovi
des.“
Thecour
tshal
l
notdi
rectt
hespeci
fi
cper
for
manceofapar
tofacont
ract
,excepti
n
casescomi
ngunderoneorot
heroft
het
hreepr
ecedi
ngsect
ions.The
except
ionsar
eembodi
edi
nsect
ions12(
2),
(3)
,(4)
.

Essent
ial
ingr
edi
ent
sofsect
ion12(
2):

a)Thepar
twhi
chmustbel
eftunper
for
medbear
sonl
yasmal
l
pr
opor
ti
onoft
hewhol
eval
ue.

b)Thepar
twhi
chmustbel
eftunper
for
medadmi
tsofcompensat
ion
i
nmoney
.

Thepar
tunper
for
medi
slar
gebutcompensat
ioncanbeest
imat
edor
doesnotadmi
tcompensat
ion:
sect
ion12(
3)say
sthatwher
eapar
tyt
oa
cont
racti
sunabl
etoper
for
mthewhol
eofhi
spar
tofi
t,andapar
twhi
ch
mustbel
eftunper
for
medei
ther
,-

a)For
msaconsi
der
abl
epar
toft
hewhol
e,t
hroughadmi
tt
ingof
compensat
ioni
nmoney
;or

b)Doesnotadmi
tcompensat
ioni
nmoney
.

Pr
inci
pleofsect
ion12(
3):
speci
fi
cper
for
manceofacont
ractwi
l
lnotbe
enf
orceabl
eagai
nstt
hepur
chasewher
eamat
eri
alorsubst
ant
ial
par
tof
t
hesubj
ectmat
teri
swant
ing.

Thi
ssect
ioni
senact
edf
ort
hebenef
itoft
hepur
chaserandcannot
oper
atet
ohi
sdet
ri
ment
.

Pr
inci
pleofsect
ion12(
4):
wher
eacont
ractconsi
stsofsev
eral
par
ts
whi
char
esepar
atef
rom andi
ndependentofoneanot
her
,andsomeof
whi
chcannotoroughtnott
obeper
for
med,
suchpar
torpar
ts,
ascan
andoughtt
obeper
for
medmayal
onebespeci
fi
cal
l
yenf
orced.
TheI
ndi
ancont
ractact
,1872speci
fi
cal
l
yment
ionscer
tai
ncont
ract
sar
e
notenf
orceabl
ebef
oret
hel
aw.Someoft
hedef
encesav
ail
abl
e
accor
dingt
olaw.

a)Mat
eri
alal
ter
ati
onsi
nagr
eement
;

b)For
ger
y,f
raud,
etc.

c)Li
mit
ati
ons

d)Ul
tr
avi
rescont
ract
s

e)Sui
tfi
l
edbyt
hepl
aint
if
fbef
orei
tsmat
uri
ty

f
)Doct
ri
neoff
rust
rat
ion

g)Unl
awf
ulagr
eement
s

h)Agr
eement
sinducedbymi
stake

i
)Voi
dabl
enat
ureofcont
ract

j
)Absenceofpr
ivi
tyofcont
ract

k)Cont
ract
ual
incapaci
tyv
iz.mi
nor
s,l
unat
ics,
etc.

l
)Absenceofconsi
der
ati
oni
ndi
schar
geofcont
ract

m)
Inadequacyofconsi
der
ati
on,
etc.

Q.
No.
19 I
NJUNCTI
ON (
Mar
ks:
5)

I
NJUNCTI
ON=acommand;
abehest
;ar
est
rai
ningwr
it
.

Sect
ions36—44ofTheSpeci
fi
cRel
i
efActdeal
s1963wi
thPREVENTI
VE
RELI
EFORI
NJUNCTI
ON

APr
event
iver
eli
ef(
inj
unct
ion)i
sanor
derorcommandoft
hecour
t
pr
event
ingapar
tyf
rom doi
ngsomet
hingwhi
chhei
sunderal
egal
dut
y
nott
odo.

Ani
njunct
ioni
saj
udi
cial
process,
bywhi
chonewhohasi
nvadedori
s
t
hreat
eni
ngt
oinv
adet
her
ight
s,l
egal
orequi
tabl
e,ofanot
her
,is
r
est
rai
nedf
rom cont
inui
ngorcommenci
ngsuchwr
ongf
ulact
s.

Ani
njunct
ioni
sanor
derf
ramedaccor
dingt
otheci
rcumst
ancesoft
he
casecommandi
nganactwhi
cht
hecour
tregar
dsasessent
ial
toj
ust
ice,
orr
est
rai
ninganactwhi
chi
test
eemscont
rar
ytoequi
tyandgood
consci
ence.

 Pr
event
iver
eli
efhowgr
ant
ed:
sect
ion36l
aysdownt
hatpr
event
ive
r
eli
efi
sgr
ant
edatt
hedi
scr
eti
onoft
hecour
tbyi
njunct
ion,
t
empor
aryorper
pet
ual
.

 OBJECT:
theobj
ectt
ogr
antt
hei
njunct
ionsar
e:(
1)br
eachof
obl
i
gat
iont
obepr
event
ed;
(2)t
orest
rai
njudi
ci
alpr
oceedi
ngs;
(3)
t
orest
rai
nbr
eachofcont
ract
s;(
4)t
opr
eventt
ort
iousact
s.

I
njunct
ionsar
egr
ant
edt
opr
eventmi
shappeni
ngsandi
njur
ytot
he
aggr
iev
edpar
ti
es.Ther
eli
efgr
ant
edbyi
njunct
ionsar
epr
event
ivenat
ure.

 Essent
iali
ngr
edi
ent
sofi
njunct
ions:

1.I
tisaj
udi
cial
process.

2.Theobj
ectat
tai
nedt
her
ebyi
stor
est
rai
ntorpr
event
ion.

3.Thet
hingr
est
rai
nedorpr
event
edi
sawr
ongf
ulact
.

 Ki
ndsofi
njunct
ions:sect
ion35ofspeci
fi
crel
i
efactl
ayst
hatt
her
e
ar
e2ki
ndsofi
njunct
ions.
TEMPORARYI
NJUNCTI
ON PERPETUALI
NJUNCTI
ON

1)I
tist
ocont
inueunt
ilaspeci
fi
ed 1)I
tcanonl
ybegr
ant
edbyadecr
ee
t
imeorunt
ilt
hef
urt
heror
deroft
he madeatt
hehear
ingandupont
he
Cour
t.I
tisgr
ant
edatanyper
iodof mer
it
soft
hesui
t.
sui
tandi
sregul
atedbyC.
P.C.

2)I
tispr
ovi
sional
ini
tsnat
ure.I
t
2)I
tfi
nal
l
ydet
ermi
nest
her
ight
sof
cannotconcl
udet
her
ight
.Itmaybe
t
hepar
ti
esandf
ormspar
toft
he
gi
venwi
thouthear
ingt
he
decr
eemadeatt
hehear
ing.
def
endant
.

3)I
tcanbegr
ant
edatanyst
ageof
t
hesui
t. 3)I
tcanonl
ybegr
ant
edatt
hef
inal
hear
ingoft
hesui
t.
4)I
tmaybegr
ant
edt
othepl
aint
if
f
onhi ngoutapr
smaki imaf
aci
e 4)I
tisgr
ant
edupont
hemer
it
soft
he

casei
nhi
ssuppor
t. Act
.

5)I
tisamer
eor
der
.

6)At
empor
aryi
njunct
ionhas 5)Aper
pet
ual
inj
unct
ioni
sadecr
ee.

t
emporar
ynat
ureasi
tsnamei
tsel
f 6)Ithasper
manentnature,f
inal
i
mpl
ies. decree,
asit
snameitselfimpli
es.

7)I
tisr
egul
atedbyt
hepr
ovi
sions 7)I
tisgov
ernedbyt
heSpeci
fi
cRel
i
ef
ofC.
P.C. Act
.

CLASSI
FICATI
ONOFI
NJUNCTI
ON

I
nrespectOfnat
ureact
,inj
unct
ionsmaybedi
vi
dedi
nto2,
prohi
bit
ory
andmandat
ory
.
PROHI
BITORYI
NJUNCTI
ON:
iti
sanor
deroft
hecour
trest
rai
ningt
he
per
sont
owhom i
tisdi
rect
edf
rom doi
ngcont
inui
ngorr
epeat
ingsome
wr
ongf
ulactwhi
chconst
it
utesabr
eachofal
egal
orequi
tabl
eobl
i
gat
ion
ordut
y.

Exampl
es:

1)I
njunct
ionagai
nstenv
ironment
alpol
l
uti
on.

2)I
njunct
ionagai
nstexceedi
ngl
i
mitofnat
ural
rightt
odr
ainage.

MANDATORYI
NJUNCTI
ON:
Iti
stheonewhi
chcommandst
he
def
endantt
odosomeposi
ti
veact
.Inpr
opercasesonl
y,cour
tshav
e
powert
oissueani
njunct
ionmandat
oryi
nit
snat
ure.

Q.
No.
20Decl
arat
oryDecr
ees

Sec34&35expl
ainst
hepr
ovi
sionsaboutdecl
arat
orydecr
ees.
Sec34:
-di
scr
eti
ont
hecour
tsast
odecl
arat
ionofst
atusof
r
ight
.

Sec35:
-ef
fectofdecl
arat
ion.

Ef
fectofdecl
arat
ion:
-
I
tbi
ndi
ngonl
yont
hepar
ti
est
othesui
t,per
sonscl
aimi
ngt
hrought
hem
r
espect
ivel
y,&wher
eanyoft
hepar
ti
esar
etr
ust
ees,
ont
heper
sonsf
or
whom,
ifi
nexi
stenceatt
hedat
eoft
hedecl
arat
ion,
suchpar
ti
eswoul
d
bet
rust
ees.
Decl
arat
ionmadeundersec34i
sdecl
arat
ioni
nper
sonam onl
y—t
he
decl
arat
iongi
venu/
sec34oft
hespeci
fi
crel
i
efact
,1963i
sadecl
arat
ion
i
nper
sonam andnoti
nrem sosuchdecl
arat
iongi
veni
sbi
ndi
ngonl
y
b/
wpar
ti
es.

 Sec34mayi
ncl
udepubl
i
cri
ght
saswel
laspr
ivat
eri
ght
s
 Sec35t
hepl
aint
if
fcanhav
eadecl
arat
iononl
yast
ohi
sownl
egal
char
act
er.
 Asui
tforadecl
arat
iont
hatt
hepl
aint
if
fisal
andhol
derof
par
ti
cul
arl
andi
smai
ntai
nabl
e.(
landhol
der
)
 Asui
tforadecl
arat
iont
hathermar
ri
agei
snul
landv
oidduet
oher
husband’
simpot
encyi
smai
ntai
nabl
e.(
mar
ri
age)
 Gov
ernmentser
vant
s,empl
oyeesofcor
por
ati
onsandofnon-
st
atut
orycor
por
ati
onscanseeddecl
arat
oryr
eli
ef.
(empl
oyment
)
I
ncer
tai
nrel
i
giousmat
ter
s,decl
arat
oryr
eli
efcanbegr
ant
ed.E.
g.:
decl
ari
ngcer
tai
npr
oper
tybel
ongst
othei
dol
;decl
arat
ionoft
he
r
ightt
owor
shi
p;et
c.(
rel
i
giousmat
ter
)
 Bef
oret
hespeci
fi
crel
i
efactof1877decl
arat
oryr
eli
efi
nIndi
awas
gov
ernedbysec15oft
heci
vi
lpr
ocedur
ecodeof1859.
 Accsec34-t
hecondi
ti
onst
obesat
isf
iedf
orgr
ant
ingabar
e
decl
arat
ionar
ethef
oll
owi
ng:
-
a)Thedecl
arat
ionmustr
elat
eei
thert
othepl
aint
if
fs’
legal
char
act
erort
oar
ighti
npr
oper
ty
b)Thedef
endantshoul
dhav
edeni
edorbei
nter
est
edi
ndeny
ing
t
hepl
aint
if
fs’
’t
it
let
osuchl
egal
char
act
erorpr
oper
ty
c)Thepl
aint
if
fshoul
dnotbei
naposi
ti
ont
oaskf
orconsequent
ial
r
eli
ef.I
font
hebasi
soft
hedecl
arat
ionsomeconsequent
ial
r
eli
efcanal
sobesought
,suchr
eli
efshoul
dbepr
ayedf
or.
Ot
her
wiset
hesui
twoul
dbedi
smi
ssed.
Whenadecl
arat
orydecr
eei
snotgr
ant
ed
1)Adecl
arat
orydecr
eecanbegr
ant
edonexi
sti
ngpr
oper
ty.Butnoton
f
utur
epr
oper
ty.
2)Acr
edi
torcannotf
il
easui
tforadecl
arat
iont
hatat
ransf
ermadeby
hi
sdebt
ori
sfi
cti
ti
ousorbenami
.
3)Adecl
arat
iont
hatt
hesui
tpr
oper
tyi
sforev
eni
mmunef
rom t
axat
ion
i
snotgr
ant
ed.
4)I
fthepl
aint
if
f‘
spossessi
oni
swr
ongf
ul&hasnot
it
leatal
l
,hecannot
begr
ant
edadecl
arat
oryr
eli
ef.
5)Al
egat
eecannotobt
ainadecl
arat
iont
hathei
sent
it
ledt
othel
egacy
whent
her
eisnodeni
alofhi
scl
aim.
6)I
fthedecl
arat
orysui
tisi
ntendedt
oev
adecour
t–f
eef
orobt
aini
nga
successi
oncer
ti
fi
cat
eorpr
obat
eoft
hewi
l
l,et
c.,
suchsui
tisent
it
led
t
obedi
smi
ssed.
7)Thecour
tsmayr
efuset
ogr
antdecl
arat
oryr
eli
eff
ort
hef
oll
owi
ng
i
nst
ance:
a)Whent
hesui
tisofaspecul
ati
venat
ure
b)Whent
heconductoft
hepl
aint
if
fhasbeenf
raudul
ent
c)Whent
hei
nter
estoft
hepl
aint
if
fist
oor
emot
e
d)Whent
her
ighti
scl
aimedi
nant
ici
pat
ionofacont
ingencywhi
ch
maynev
erar
ise
e)Whent
hepl
aint
if
fseeksanegat
ivedecl
arat
ionast
otheabsence
ofar
ighti
nthedef
endant
f
)Whent
heal
l
egat
ionsar
efal
seandunf
ounded
g)Whent
hedef
endantdoesnotdenyt
hepl
aint
if
f’
sri
ght
sandcl
aims
h)Whent
oomuchdel
ayont
hepar
toft
hepl
aint
if
fisappar
entont
he
f
aceoft
her
ecor
dsandf
act
s.
i
)Whent
hedecl
arat
orysui
tisagai
nstanypr
ovi
si
onofl
aw
j
)Wher
ether
eal
plai
nti
ff
sar
enott
hepar
ti
esonr
ecor
dbutt
hose
whoar
ebehi
ndt
hel
i
tigat
ionet
c..