Documente Academic
Documente Profesional
Documente Cultură
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• Originally XI Chapters – 266 Sections
• Chapters Repealed:
– Chapter VIII – Section 76 – 123 – Sale of Goods
– Chapter XI – Section 239 – 266 - Partnership
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Scheme of Indian Contract Act
1872
• Preliminary – Sec. 1, 2 – Interpretation Clause
• Ch. 1 – Sec. 3 – 9 – Communication, Acceptance &
Revocation of Proposals
• Ch. 2 – Sec. 10 – 30 – Contracts, Voidable Contracts & Void
Agreements
• Ch. 3 – Sec. 30 – 36 – Contingent Contracts
• Ch. 4 – Sec. 37 – 67 – Performance of Contracts
• Ch. 5 – Sec. 68 – 72 – Quasi Contracts
• Ch. 6 – Sec. 73 – 75 – Consequences of Breach of Contract
• Ch. 8 – Sec. 124 – 147 – Indemnity & Guarantee
• Ch. 9 – Sec. 148 – 181 – Bailment
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• Ch. 10 – Sec. 182 – 237 - Agency
What is Contract?
• Contract is an agreement
enforceable by law – Section
2(h)
• Legal Deal that results in a
business
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Dr. William Anson
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• Contract = Agreement + Enforceability
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What is Agreement?
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What is an offer?
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How the legal offer should be?
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What is an Acceptance?
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Promisor & Promisee?
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How the acceptance should be?
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Essentials of Valid Contract
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Lawful Consideration
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• Something in return
• Contract without consideration is void.
• Rules relating to consideration
• Exceptions to Consideration
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Rules regarding consideration
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Exception to the rule – No
Consideration, No Contract – Sec. 25
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Competent Parties
• Minor
• Below 18
• Below 21
• Person with Unsound Mind
• Idiots
• Lunatics
• Drunkards
• Person Disqualified by Law
• By Status
• By Incapacity 24
Disqualifications
• By Status • By Incapacity
– Foreign Kings – Prisoners
– Foreign – Insolvents
Representative – Alien Enemies
– Companies
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Position of Contract With Minor
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Consent ?
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Free Consent ?
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Undue Influence – Sec. 16
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Position of Dominance
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Fraud – Sec. 17
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Basic Questions
• What is Fraud?
• Who may commit Fraud?
• Whether Silence amounts to Fraud?
• What if the intention to cheat is absence?
• A fraudulent act which does not deceive is
not fraud.
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Misrepresentation – Sec. 18
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Mistake – Effects on
Contract
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Legality of Objects
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Sec. 23
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Void Agreements
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Types of Contract /
Classification of Contracts
• By View Point of Enforceability
• By View Point of Formation
• By View Point of Performance
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Classification of Contracts
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Void Contract – Sec. 2 (j)
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Voidable Contract – Sec. 2 (i)
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Void Agreement – Sec. 2 (g)
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Discharge of Contracts
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Various Modes of Discharge
• By Performance of Contract
• By Mutual Consent or Agreement
• By Lapse of Time
• By Impossibility
• By Operation of Law
• By Breach of Contract
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1. Discharge By Performance
of Contract
• Actual Performance
• Attempted Performance
–Tender of Performance
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2. Discharge by Mutual
Consent
• Various Methods:
– Novation – Novatio – New Contract
– Alteration – Changes in Terms
– Rescission – Cancellation of Contract
– Remission – Accepting Lessor amount
– Waiver – To give away right to perform
– Extension – Time limit enhancement
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3. Discharge By Lapse of Time
• If time is given .
–At the end of stipulated time
• If time is not given
–At the end of reasonable time
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4. Discharge by Impossibility
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Various Ways in which this
doctrine applies
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5. Discharge by Operation of
Law
• By Death
• By Insolvency
• By Merger
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6. Discharge by Breach of
Contract
• Actual Breach
–On the date of performance
• Anticipatory Breach
–Before the date of performance
–Hochster v. De La Tour
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Remedies for the Anticipatory
Breach of Contract
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Remedies for the Breach of
Contract
• Suit for Rescission of Contract
• Suit for Damages
• Suit for Quantum Meruit
• Suit for Specific Performance of Contract
• Suit for Injunction
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Suit for Damages
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Types of Damages
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Ordinary Damages
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Special Damages
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Exemplary or Vindictive
Damages
• Not awarded in ordinary cases
• Awarded for damage to reputation of a
person
• Only in exceptional cases
– In case of promise to marry
– In case of wrongful dishonor of cheque by
banker
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Nominal or Token Damages
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Rules regarding the payment
of damages
• Based on the judgement of
• Hadely v. Baxendale.
• Rules in section 73 to 75
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Various Rules for Damages