Lalman Shukla Vs Gauri Dutt - Case Study: Submitted To Submitted by
Lalman Shukla Vs Gauri Dutt - Case Study: Submitted To Submitted by
SUMMARY :-
Gauri Dutt gave money to her servants for
railway fares and other expenses, and sent them
to different places in search of the boy.
One of the servants, Lalman Shukla, the
munim(accountant) in Gauri Dutt’s firm, was
sent to Haridwar.
Later, after the servants had left, Gauri Dutt issued handbills
offering a reward of RS.501 to anyone who might find the boy.
Gauri Dutt gave Lalman Shukla Rs.20 for having found the boy.
Lalman must have been upset with the denial of the promised
amount of Rs.501. Next, we learn that Lalman ceased to be in
the employment of Gauri Dutt and filed a suit for the recovery
of RS.501, the amount promised in the handbill.
JUDGEMENT
Judgement on this case was made by Allahabad High Court in the year
1913.
The trial court dismissed the suit on the basis that:-
i. that the offer of reward was announced after the plaintiff had left; and
ii. there was no subsequent promise to pay the reward.
In revision, the Allahabad High Court, affirmed (ii) but rejected (i).
The Court held: Being under that obligation which he had incurred
before the reward in question was offered, he cannot, in my
opinion, claim the reward.
There was already a subsisting obligation and therefore the
performance of the act cannot be regarded as consideration for the
defendant’s promise.
Thus, the judgement was made in favour of the defendant Mrs.
Gauri Dutt and the plaintiff Mr. Lalman Shukla lost any rights to the
reward because:
i. He was unaware of the offer at the time, thus he had never
accepted the offer at all
ii. He had a separate prior commitment made with the defendant to
carry out the task, although it was not necessarily under his job
scope. However, this prior agreement did not mention any benefits
that the plaintiff would receive upon successfully finishing this task.
This agreement is in direct conflict to plaintiff's claim made later,
hence precedence should be given to terms stated in prior
agreement.
As per Indian Contract Act, 1872
Section 2(a): When one person signifies to another his/her
willingness to do or to abstain from doing anything, with a view
LEGAL to obtaining the assent of that other to such act or abstinence,
he/she is said to make a proposal.
CONCEPTS Section 2(h): An agreement enforceable by law is a contract.
Offer + Acceptance = Agreement
Agreement + Enforceable by Law = Contract
• ACT - Under Section 2(a) PROPOSAL CASE - GAURI
DUTT proposed a reward of Rs.501 to whomsoever
found and returned with her nephew.
• However, there was already a subsisting obligation
RELATIONSHIP on the plaintiff's side prior to this proposal and
BETWEEN THE therefore the performance of the act cannot be
regarded as consideration for the defendant’s
ACT AND THE promise.
Similarly, if commitments/agreement made prior to contract are in conflict(or are varying) with one
another, precedence goes to obligations/duty jointly agreed by both parties at time of agreement.
Thus, it is necessary to ensure that prior agreements made jointly by both parties are not invalidated by
current contract, unless and until it is approved by both the stakeholders in concern.
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