Unit-1: [Red highlighted is syllabus topics

History:
Prior to the enactment of the Indian Contract Act, 1872…. there was no codified law governing contracts in India

In 1726,
The English law applied for presidency town by charter granted by King George-I to the East India Company

In 1781,
The Act of Settlement was passed by the British government which says,

 If contracts dealing with parties in the Presidency Towns

1. In the case of Mohammedans and Hindus then their respective laws were considered
2. In that cases where only one of the parties is a Mohammedan or Hindu, the laws and usages of the defendant is considered

 If contracts dealing with parties in places outside the presidency towns

1. judgment was decided according to the justice, equity and good conscience

In 1861 to 1866,
The Third law commission of British India formed in 1861 under the stewardship of chairman Sir John Romilly, with initial members as Sir Edward Ryan, R. Lowe,
J.M. Macleod, Sir W. Erle ( Succeeded by Sir, W .M. James ) and justice Wills ( succeeded by J. Henderson ) , had presented the report on contract law for India as
Draft Contract law

In 1872,
The Indian Contract Act was passed by British India
It is based on the principles of English common law.

 The below are the basic details of this act…

Act ID: 187209

Act Number: 09
Enacted by: Imperial Legislative Council
Enacted date: 25th April 1872
Enforcement Date: 1st September 1872
Short Title: The Indian Contract Act, 1872
Long Title: To define and amend certain parts of the law relating to contracts
 Initially The Indian contract act originally had 266 Sections, where

Sections Details about

1 to 75 General Principles of Law of Contract
76 to 123 Contract relating to Sale of Goods
124 to 238 covers Special Contracts- Indemnity, Guarantee, Bailment & Pledge and Agency
239 to 266 Contracts relating to Partnership

In 1930
A separate Act on the Sale of Goods was passed.
So, The sections from 76 to 123 of “The Indian Contract Act” was Repealed

In 1932
The Indian Partnership Act was passed.
So, The sections from 239 to 266 of “The Indian Contract Act” was Repealed

At present
The Indian Contract Act may be divided into two parts as below

Part-1 Sections 1 to 75 General Principles of Law of Contract

Part-2 Sections 124 to 238 Special kinds of Contracts
Last updated on 17th December 2018

Foot notes:
Charter: A document, issued by a sovereign or state, outlining the conditions under which a corporation, colony, city, or other corporate body is organized, and
defining its rights and privileges

Presidency town: The Provinces of India, earlier Presidencies of British India and still earlier, Presidency towns, were the administrative divisions of British
governance in India. Collectively, they were called British India
Formation of Contract:

Formation of contract is based on the below essential elements.

 Offer + acceptance = Promise

 Promise + consideration = Agreement
 Agreement + Law enforcement = Contract

The essential elements are defined in section 2 of Indian contract act 1872 as below

Offer 2(a):
When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or
abstinence, he is said to make a proposal.

Acceptance 2(b):
When the person to whom the proposal is made, signifies his assent there to, the proposal is said to be accepted.

Promise 2(b):
A Proposal when accepted becomes a promise. In simple words, when an offer is accepted it becomes promise

Promisor and promisee 2(c):

When the proposal is accepted, the person making the proposal is called as promisor and the person accepting the proposal is called as promisee

Consideration 2(d):
When at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or to
abstain from doing something such act or abstinence or promise is called a consideration for the promise. Price paid by one party for the promise of the other
Technical word meaning QUID-PRO-QUO i.e. something in return

Agreement 2(e):
Every promise and set of promises forming the consideration for each other. In short,
Agreement=promise + consideration.

Contract 2(h):
An agreement enforceable by Law is a contract.
Therefore, there must be an agreement and it should be enforceable by law
Agreement and Contract:
Refer Excel sheet

Definitions:
Refer Excel sheet

Classification (or) Type of Contracts

Types of contacts can be classified on the basis of….Creation, Validity, Execution and Liability.
Refer Excel sheet

Syllabus

Offer and Acceptance

Communication
Revocation
Essential elements
Invitation to Offer
Tenders
Consideration
Nudum Pactum
Essential elements
Privity of Contract and of Consideration
Exceptions
Unlawful Consideration and its effect
Contractual Ability
Electronic Documents as Web Pages
Digital Certificates as Entry Passes
Time and Place of Contract
Secured Custody of Electronic Records
Unit-2
Capacity to Contract
Minor’s Agreements and its effects
Persons of unsound mind
Persons disqualified by Law
Free Consent
Coercion
Undue influence
Misrepresentation
Fraud
Mistake
Legality of Object
Void Agreements:
S# Void Agreement Voidable Agreement Illegal Agreement

Agreements against Public Policy

Wagering Agreements
Its exceptions
Contingent Contracts
Unit-3
Discharge of Contracts and its various Modes
by performance
Time and place of performance
Performance of reciprocal promises
Appropriation of Payments
Discharge by Agreement
By operation of Law
By frustration (Impossibility of Performance)
By Breach (Anticipatory and Actual)
Unit-4
Remedies for Breach of Contracts
Damages
Remoteness of damages
Ascertainment of damages
Injunction
When granted and when refused
Restitution
Specific performance when granted
Quasi Contracts
Unit-5 [The Specific Relief Act]
Nature of Specific Relief
Recovery of Possession of movable and immovable Property
Specific performance when granted and not granted
Who may obtain and against whom
Discretionary remedy
Power of Court to grant relief
Rectification of instruments
Cancellation
Declaratory decrees
Preventive relief
Temporary injunctions
Perpetual and Mandatory Injunctions
Government as a contracting party: Constitutional provisions
Government powers to contract
Procedural requirements
Kinds of Government Contracts, their usual clauses,
performance of such contract,
settlement of disputes and remedies