104 Law of Contract

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LL.B. STUDY NOTES

104 Law of Contract
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104 Law of Contract

CONTENTS
Module-1) General Principles of Law of contract.

Module-2) Capacity to contract & Free Consent.
Module-3) Discharge of Contract & Quasi-Contracts.
Module-4) Specific Relief Act.
Objectives of the course :

Every man in his day to day life from dawn to dusk makes a variety of contracts, Mans
contract making activities increase with the increasing trade, commerce and industry. In
a way living in a modern society would be impossible if the law did not recognize this
contract making power of person. This prompted Roscoe Pound to make his celebrated
observation: Wealth, in a commercial age, is made up largely of promises. In this sense
India is also a Promissory Society.
The conferment and protection by the law of this contract making power of person gives
them a considerable leeway to strike best bargain for the contract making person. In a
way they are permitted to regulate and define their relations in a best possible manner
they chose. However, the contours of contractual relations in a feudal, colonial and
capitalist society of pre-independence India cannot necessarily be the same in an
independent and developing Indian society. Whatever may be the nature of a given
society, the contractual relations as are obtained in that society, are governed by certain
principles which are more or less of a general and basic nature. In India these general
principles are enacted in the form of the Indian Contract Act, 1972.
This course is designed to acquaint a student with the conceptual and operational
parameters of these various general principles of contractual relations.
Specific enforcement of contract is an important aspect of the law of contracts. Analysis
of the kinds of contracts that can be specifically enforced and the methods of
enforcement forms a significant segment of this study.
Module-1) General Principles of Law of contract:

1.1) Agreement and contract definitions, elements and kinds Proposal,
Communication and revocation proposal and invitation for proposal
floating offers
1.2) Acceptance their various forms, essential elements
1.3) Consideration its need, meaning, kinds, essential elements
1.4) Capacity to Contract
GO TO CONTENTS.
MODULE-1 QUESTIONS :
Define agreement and discuss essential elements of an agreement.

Define Contract and discuss the essential elements of valid contract. (Nov-2011, Nov-
2012, Oct-2013)
Define contract and discuss essential elements of valid contract. (Mar-2014, Nov-
2014, Dec-2015)
Define "offer and discuss the essential elements of valid offer. (Nov-2011)
Discuss : kinds Proposal.
Discuss : floating offer.
Explain : Tender (Oct-2013)
Write short note : Tender or offer of performance (Dec-2015)
Distinguish proposal and invitation for proposal.
Define "Acceptance". Discuss the essential of a Valid Acceptance. (Oct-2013)
Discuss : Forms of acceptance.
Discuss : Communication and revocation of proposal/ acceptance .
Define consideration. Discuss in detail the essential elements of valid consideration.
(Nov-2012)
Discuss : Kinds of consideration.
Define consideration. "An agreement without consideration is void." Discuss this
statement. State whether there are any exceptions to this rule in the Indian Contract
Act. (Nov-2014, Dec-2015)
An agreement without consideration is void. Discuss the statement. State whether
there are any exception to this rule in the Indian Contract Act. (Apr-2013)
Explain : Carlil v/s Carbolic Smoke Ball Co. Ltd. (Nov-2012, Mar-2014, Nov-2014)
Explain : Lalman v/s Gauri Dutt (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

Explain : Chinaiya v/s Ramaiya (Nov-2012)
Explain : Insurance Contract (Apr-2013)
GO TO CONTENTS.
MODULE-1 ANSWERS :
Define agreement and discuss essential elements of an agreement.

ANSWER :
Refer :

GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
Define Contract and discuss the essential elements of valid contract. (Nov-2011, Nov-
2012, Oct-2013)
Define contract and discuss essential elements of valid contract. (Mar-2014, Nov-
2014, Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Define "offer and discuss the essential elements of valid offer. (Nov-2011)
Discuss : kinds Proposal.
Discuss : floating offer.
Explain : Tender (Oct-2013)
Write short note : Tender or offer of performance (Dec-2015)
ANSWER :
Refer :
GO TO CONTENTS.
Distinguish proposal and invitation for proposal.

ANSWER :
Refer :

GO TO CONTENTS.
Define "Acceptance". Discuss the essential of a Valid Acceptance. (Oct-2013)

Discuss : Forms of acceptance.
ANSWER :
Refer :

GO TO CONTENTS.
Discuss : Communication and revocation of proposal/ acceptance.

ANSWER :
Refer :

GO TO CONTENTS.
Define consideration. Discuss in detail the essential elements of valid consideration.

(Nov-2012)
Discuss : Kinds of consideration.
Define consideration. "An agreement without consideration is void." Discuss this
statement. State whether there are any exceptions to this rule in the Indian Contract
Act. (Nov-2014, Dec-2015)

An agreement without consideration is void. Discuss the statement. State whether
there are any exception to this rule in the Indian Contract Act. (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Carlil v/s Carbolic Smoke Ball Co. Ltd. (Nov-2012, Mar-2014, Nov-2014)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Lalman v/s Gauri Dutt (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Chinaiya v/s Ramaiya (Nov-2012)

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Insurance Contract (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Module-2) Capacity to contract & Free Consent:

2.1) Minor, Age of Majority, Nature of minors agreement & effects thereof.
Accessories supplied to a minor, Agreement beneficial and detrimental to
a minor
2.2) Free consent -its need and definition, Effects of force, coercion & undue
influence on contract
2.3) Mistake : definition - kinds- fundamental error mistake of law and of fact
their effects
2.4) Legality of objects :
2.4.1) Unlawful Agreements: Kinds and effects thereof
2.4.2) Void Agreements, Uncertain Agreements, wagering Agreements,
Illegal & Void Agreements
GO TO CONTENTS.
Discuss : Capacity to contract.

Explain : Capacity of Parties (Oct-2013)
Define Consent when consent is said to be free. What is the effect on validity of
contract when consent is not free ? Discuss. (Apr-2013)
"Free consent is the essential element of a valid contract." Discuss this
statement in detail. (Nov-2011, Oct-2013, Mar-2014, Dec-2015)
Discuss the law relating to minor's agreement in detail. (Oct-2013)
Discuss : Accessories supplied to a minor, Agreement beneficial and
detrimental to a minor.
Explain the principle in case of Moharibibi v/s. Dharmdas Ghose and discuss in
detail the law relating to minor's agreement. (Nov-2011, Nov-2012, Mar-2014, Nov-
2014, Dec-2015)
Explain : Mohoribibi v/s Dharmdas Ghosh (Apr-2013)
Explain : Coercion and Undue influence. (Nov-2012, Nov-2014)
Discuss : Consent obtained by force.
Explain : Fraud and Misrepresentation (Nov-2012, Apr-2013)
What is mistake ? Explain kinds of Fundamental error mistake of fact and mistake
of law under the Indian Contract Act. (Nov-2014)
Explain : Kinds of Mistake (Oct-2013)
Discuss in detail with the help of illustrations the provisions pertaining to mistake
under the Indian Contract Act. (Apr-2013)
Explain : Unlawful Agreement. (Nov-2014)
Write short note : Unlawful Agreement (Dec-2015)
Explain : Void Agreement and Voidable Agreement (Nov-2012)
Explain : Void and voidable contract, (Oct-2013)
Discuss : Uncertain Agreements.
Explain : Wagering Agreement (Oct-2013)
Explain : Wagering contract. (Nov-2014)
Write short note : Wagering Agreements (Dec-2015)
GO TO CONTENTS.
MODULE-2 ANSWERS :
Discuss : Capacity to contract.

Explain : Capacity of Parties (Oct-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Define Consent when consent is said to be free. What is the effect on validity of
contract when consent is not free ? Discuss. (Apr-2013)
"Free consent is the essential element of a valid contract." Discuss this
statement in detail. (Nov-2011, Oct-2013, Mar-2014, Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Discuss the law relating to minor's agreement in detail. (Oct-2013)

Discuss : Accessories supplied to a minor, Agreement beneficial and
detrimental to a minor.
Explain the principle in case of Moharibibi v/s. Dharmdas Ghose and discuss in
detail the law relating to minor's agreement. (Nov-2011, Nov-2012, Mar-2014, Nov-
2014, Dec-2015)
Explain : Mohoribibi v/s Dharmdas Ghosh (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Coercion and Undue influence. (Nov-2012, Nov-2014)

Discuss : Consent obtained by force.
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Fraud and Misrepresentation (Nov-2012, Apr-2013)

ANSWER :
Refer :

GO TO CONTENTS.
What is mistake ? Explain kinds of Fundamental error mistake of fact and mistake
of law under the Indian Contract Act. (Nov-2014)
Explain : Kinds of Mistake (Oct-2013)
Discuss in detail with the help of illustrations the provisions pertaining to mistake
under the Indian Contract Act. (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Unlawful Agreement. (Nov-2014)

Write short note : Unlawful Agreement (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Void Agreement and Voidable Agreement (Nov-2012)

Explain : Void and voidable contract, (Oct-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Discuss : Uncertain Agreements.

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Wagering Agreement (Oct-2013)

Explain : Wagering contract. (Nov-2014)
Write short note : Wagering Agreements (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Module-3) Discharge of Contract & Quasi-Contracts :

3.1) Various modes of discharge of contract and effects thereof
3.2) Anticipatory Breach of Contract
3.3) Impossibility of performance specific grounds of frustration
application to leases- theories of frustration effect of frustration
frustration and restitution, by period of limitation
3.4) Rescission and alteration their effect- remission and waiver of
performance extension of time accord and satisfaction
3.5) Quasi-contracts or certain relations resembling those created by
contracts, Quantum Meruit
GO TO CONTENTS.
Discuss the various mode of discharge of contract and effects thereof. (Nov-2014)
Explain with illustrations the different modes of discharge of contract. (Apr-2013)
Explain : Anticipatory breach of contract (Nov-2012, Apr-2013, Mar-2014, Nov-
2014)
Write short note : Anticipatory breach of contract (Dec-2015)
Explain "Doctrine of frustration with the help of illustrations. Discuss in detail
exceptions of this doctrine. (Nov-2011, Apr-2013, Oct-2013, Mar-2014, Nov-2014,
Dec-2015)
Discuss : Impossibility of performance specific grounds of frustration
application to leases.
Explain : Doctrine of Frustration (Nov-2012)
Explain : Novatio (Oct-2013)
Write short note : Novation (Novatio) (Dec-2015)
Explain : Rectification of Instruments (Nov-2012, Apr-2013, Mar-2014, Nov-2014)
Write short note : Part performance of contract (Dec-2015)
Explain : Specific performance of a part of contract (Mar-2014)
Discuss : Rescission and alteration their effect- remission and waiver of
performance extension of time accord and satisfaction.
Explain : Appropriation of Payment of Debt (Nov-2012, Apr-2013, Mar-2014)
Write short note : Liquidated damages Compensation and Penal damages
Compensation (Dec-2015)
Explain : Liquidated damages and Penal damages (Nov-2012)

What is Quasi Contract ? Explain Quasi-Contract with illustrations. (Nov-2011, Nov-
2012, Oct-2013, Mar-2014, Dec-2015)
Explain : Doctrine of Quantum Merit (Nov-2012, Apr-2013, Mar-2014)
Define Contingent Contract. Explain with illustrations as to when contingent contracts
can be enforced. (Mar-2014)
Explain : Contigent Contract (Apr-2013)
Explain : Hadley v/s Buxandale (Nov-2012, Apr-2013, Mar-2014)
GO TO CONTENTS.
MODULE-3 ANSWERS :
Discuss the various mode of discharge of contract and effects thereof. (Nov-2014)
Explain with illustrations the different modes of discharge of contract. (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Anticipatory breach of contract (Nov-2012, Apr-2013, Mar-2014, Nov-

2014)
Write short note : Anticipatory breach of contract (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain "Doctrine of frustration with the help of illustrations. Discuss in detail

exceptions of this doctrine. (Nov-2011, Apr-2013, Oct-2013, Mar-2014, Nov-2014,
Dec-2015)
Discuss : Impossibility of performance specific grounds of frustration

application to leases.
Explain : Doctrine of Frustration (Nov-2012)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Novatio (Oct-2013)

Write short note : Novation (Novatio) (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Rectification of Instruments (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Write short note : Part performance of contract (Dec-2015)

Explain : Specific performance of a part of contract (Mar-2014)
ANSWER :
Refer :

GO TO CONTENTS.
Discuss : Rescission and alteration their effect- remission and waiver of

performance extension of time accord and satisfaction.
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Appropriation of Payment of Debt (Nov-2012, Apr-2013, Mar-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Write short note : Liquidated damages Compensation and Penal damages

Compensation (Dec-2015)
Explain : Liquidated damages and Penal damages (Nov-2012)
ANSWER :
Refer :

GO TO CONTENTS.
What is Quasi Contract ? Explain Quasi-Contract with illustrations. (Nov-2011, Nov-

2012, Oct-2013, Mar-2014, Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Doctrine of Quantum Merit (Nov-2012, Apr-2013, Mar-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Define Contingent Contract. Explain with illustrations as to when contingent contracts

can be enforced. (Mar-2014)
Explain : Contigent Contract (Apr-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Hadley v/s Buxandale (Nov-2012, Apr-2013, Mar-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Module-4) Specific Relief Act

4.1) Persons against whom specific enforcement can be ordered
4.2) Rescission and cancellation
4.3) Injunction : Temporary and Perpetual
4.4) Declaratory orders
4.5) Discretion and power of court
GO TO CONTENTS.
What are the kinds of specific relief ? In what circumstances and on what principles
can plaintiff get specific relief ? (Nov-2014)
Write note : Specific Relief (Nov-2011)
Explain : Specific Relief (Nov-2012, Apr-2013, Mar-2014)
Write short note : Specific performance of contract (Dec-2015)
Write note : Persons against whom specific enforcement can be ordered (Oct-
2013)
Explain : Against whom specific performance can NOT be held. (Nov-2012, Mar-
2014)
Explain : Cancellation of a document. (Apr-2013)
Explain : Perpetual Injunction and Temporary Injunction. (Nov-2012)
Write note : Temporary Injunction (Nov-2011, Oct-2013)
Write note : Permanent Injunction (Nov-2011, Oct-2013)
Explain : Perpetual Injunction and temporary injunction. (Mar-2014)
Write short note : Temporary injunction and permanent injunction (Dec-2015)
Explain : Mandatory Injunction (Nov-2012, Apr-2013)
Write short note : Mandatory injunction (Dec-2015)
Explain : Quia timet action (Nov-2012)
Write short note : Quia timet action (Dec-2015)
Write note : Declaratory Orders (Nov-2011, Oct-2013)
Discuss : Discretion and power of court.
"The jurisdiction to decree specific performance is discretionary and the court will not
grant it merely because it is lawful to do so." Explain this statement. (Nov-2011, Apr-
2013, Oct-2013)
Explain : Possession of movable property (Nov-2012)

Explain : Possession of Immovable property (Apr-2013, Nov-2014)
Explain : Recovery of immovable property (Mar-2014)
Write short note : Recovery of Immovable property (Dec-2015)
Explain : Appointment of Receiver (Nov-2012, Nov-2014)
GO TO CONTENTS.
MODULE-4 ANSWERS :
What are the kinds of specific relief ? In what circumstances and on what principles
can plaintiff get specific relief ? (Nov-2014)
Write note : Specific Relief (Nov-2011)
Explain : Specific Relief (Nov-2012, Apr-2013, Mar-2014)
ANSWER :
Refer :

GO TO CONTENTS.
Write short note : Specific performance of contract (Dec-2015)

ANSWER :
Refer :

GO TO CONTENTS.
Write note : Persons against whom specific enforcement can be ordered (Oct-
2013)
Explain : Against whom specific performance can NOT be held. (Nov-2012, Mar-
2014)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Cancellation of a document. (Apr-2013)

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Perpetual Injunction and Temporary Injunction. (Nov-2012)

Write note : Temporary Injunction (Nov-2011, Oct-2013)
Write note : Permanent Injunction (Nov-2011, Oct-2013)
Explain : Perpetual Injunction and temporary injunction. (Mar-2014)
Write short note : Temporary injunction and permanent injunction (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Mandatory Injunction (Nov-2012, Apr-2013)

Write short note : Mandatory injunction (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Quia timet action (Nov-2012)

Write short note : Quia timet action (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Write note : Declaratory Orders (Nov-2011, Oct-2013)

ANSWER :
Refer :

GO TO CONTENTS.
Discuss : Discretion and power of court.

"The jurisdiction to decree specific performance is discretionary and the court will not
grant it merely because it is lawful to do so." Explain this statement. (Nov-2011, Apr-
2013, Oct-2013)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Possession of movable property (Nov-2012)

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Possession of Immovable property (Apr-2013, Nov-2014)

ANSWER :
Refer :

GO TO CONTENTS.
Explain : Recovery of immovable property (Mar-2014)

Write short note : Recovery of Immovable property (Dec-2015)
ANSWER :
Refer :

GO TO CONTENTS.
Explain : Appointment of Receiver (Nov-2012, Nov-2014)

ANSWER :
Refer :

GO TO CONTENTS.
*** End-of-Compilation ***

Source : Public domain print/ internet contents.
URLs of some such resources are listed herein above.
Credits/ copyrights duly acknowledged.
Suggested Reading :
Beasten (Ed), Ansons Law of Contract
P. S. Atiya, Introduction to the Law of Contract (Claredon Law Series)

Avtar Singh, Law of Contract, Eastern Lucknow
G. C. Cheshire, and H. S. Fifoot and M. P. Formston Law Contract ELBS with
Butterworths.
M. Krishnan Nair, Law of Contract,
G.H. Trinel, Law of Contract Sweet & Maxwell
R.K. Abichandani (ed), Pollock and Mulla on the Indian contract and the Specific Relief
Act, Butterworths Publication
Benerjee S.C. Law of Specific Relief, Universal
Anson, Law of Contract, Universal
Dutt on Contract, Universal
Anand and Aiyer, Law of Specific Relief, Universal.

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LL.B. STUDY NOTES

Stay connected using facebook.

104 Law of Contract

Module-1) General Principles of Law of contract.

Objectives of the course :

Module-1) General Principles of Law of contract:

Define agreement and discuss essential elements of an agreement.

Explain : Lalman v/s Gauri Dutt (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

Define agreement and discuss essential elements of an agreement.

Distinguish proposal and invitation for proposal.

Define "Acceptance". Discuss the essential of a Valid Acceptance. (Oct-2013)

Discuss : Communication and revocation of proposal/ acceptance.

Define consideration. Discuss in detail the essential elements of valid consideration.

Act. (Nov-2014, Dec-2015)

Explain : Lalman v/s Gauri Dutt (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

Explain : Chinaiya v/s Ramaiya (Nov-2012)

Explain : Insurance Contract (Apr-2013)

Module-2) Capacity to contract & Free Consent:

Discuss : Capacity to contract.

Discuss : Capacity to contract.

Discuss the law relating to minor's agreement in detail. (Oct-2013)

Explain : Coercion and Undue influence. (Nov-2012, Nov-2014)

Explain : Fraud and Misrepresentation (Nov-2012, Apr-2013)

Explain : Unlawful Agreement. (Nov-2014)

Explain : Void Agreement and Voidable Agreement (Nov-2012)

Discuss : Uncertain Agreements.

Explain : Wagering Agreement (Oct-2013)

Module-3) Discharge of Contract & Quasi-Contracts :

Explain : Liquidated damages and Penal damages (Nov-2012)

Explain : Anticipatory breach of contract (Nov-2012, Apr-2013, Mar-2014, Nov-

Explain "Doctrine of frustration with the help of illustrations. Discuss in detail

Discuss : Impossibility of performance specific grounds of frustration

Explain : Novatio (Oct-2013)

Explain : Rectification of Instruments (Nov-2012, Apr-2013, Mar-2014, Nov-2014)

Write short note : Part performance of contract (Dec-2015)

Discuss : Rescission and alteration their effect- remission and waiver of

Explain : Appropriation of Payment of Debt (Nov-2012, Apr-2013, Mar-2014)

Write short note : Liquidated damages Compensation and Penal damages

What is Quasi Contract ? Explain Quasi-Contract with illustrations. (Nov-2011, Nov-

Explain : Doctrine of Quantum Merit (Nov-2012, Apr-2013, Mar-2014)

Define Contingent Contract. Explain with illustrations as to when contingent contracts

Explain : Hadley v/s Buxandale (Nov-2012, Apr-2013, Mar-2014)

Module-4) Specific Relief Act

Explain : Possession of movable property (Nov-2012)

Write short note : Specific performance of contract (Dec-2015)

Explain : Cancellation of a document. (Apr-2013)

Explain : Perpetual Injunction and Temporary Injunction. (Nov-2012)

Explain : Mandatory Injunction (Nov-2012, Apr-2013)

Explain : Quia timet action (Nov-2012)

Write note : Declaratory Orders (Nov-2011, Oct-2013)

Discuss : Discretion and power of court.

Explain : Possession of movable property (Nov-2012)

Explain : Possession of Immovable property (Apr-2013, Nov-2014)

Explain : Recovery of immovable property (Mar-2014)

Explain : Appointment of Receiver (Nov-2012, Nov-2014)

*** End-of-Compilation ***

P. S. Atiya, Introduction to the Law of Contract (Claredon Law Series)

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* End-of-Compilation *