Indian Contract

Act, 1872

c
Indian Contract Act, 1872

Chapter ² 1
Nat re and E

ential
of a Contract

Ô

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Law
Indian Contract Act, 1872

`The term ´Contractµ in ordinary
en
e mean
an

agreement between two per
on

The law of contract
eek
to reg late the behavior of
per
on
who make contract
,
o that any conflict
ari
e
between the
e per
on
later may be re
olved
eaning of Contract:
Sec 2 (h) define
a contract: ´ An agreement
enforceable by law i
a contractµ
eg C make
an agreement with D to
ell him
ome
good
for R
 25000

J

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Law
Indian Contract Act, 1872

[ invite
a friend S to dinner He make
elaborate

preparation
 S fail
to t rn p for dinner and all the
preparation made by  go wa
te Since thi
wa
a
contract between the partie
,  cannot take S to
co rt for legal action again
t him for breaking the
commitment to come for the dinner

  How co ld it be
aid that the above wa
not a

contact altho gh it wa
clearly an agreement
between the two friend


-
Indian Contract Act, 1872

Essential of Valid Contract

1An Agreement or offer and acceptance:
-Agreement = Propo
al + their acceptance
-Agree 
t made by two per
on, one i
making
offer and another i
accepting thi
offer
2Intention to create legal relation
-Co rt wo ld like to mea
re the degree of

erio
ne


-Not every loo
e conver
ation, not any exchange of
plea
antrie
, not a ca
al
ocial commitment,
con
ider a
a contact

ÿ

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Law
Indian Contract Act, 1872

3Competentnce of Partie

Everybody i
able to make contract except inor,
Per
on of Un
o nded mind,
Per
on who are di
 alified by any other law
Con
ideration
´Something in Ret rnµ
eg  promi
e to S that He will b y hi
bike for
R
35000
5ree Con
ent
If the partie
make the agree witho t any kind of
pre

re or mi
g idance, then the agree wo ld be
the re
lt of ree Con
ent
´Con
en

ad itemµ between partie
, which mean

that there m
t be complete nder
tanding of each
other·
mind between them

V

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Law
Indian Contract Act, 1872

6Lawf l object and con
ideration

eg I will kill yo r if yo will give mw 100 bottle
wine
7Not expre

ly declared void (Cancelled) agreement
Alway
void ie witho t legal effect beca
e of their
nat re
eg Agree made witho t con
ideration
Agree to do impo

ible act
Agree on the meaning of which ncertain etc
8Certain ormalitie

-Nece

ary f lfillment of certain formalitie
for
making certain
pecific type
of contract
-ade in written or in pre
ence of witne





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Law
Indian Contract Act, 1872

Case Law
 



 



 











 



 


















  






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a

ine

Law
Indian Contract Act, 1872

Chapter ² 2

OER
AND
ACCEPTANCE

§

ine

Law
Indian Contract Act, 1872

OER AND ACCEPTANCE

  6ormation of Agreement required two steps ,
making of a proposal by one person and
acceptance of this proposal by other.
  Agreement= Offer + their acceptance

c

ine

Law
Indian Contract Act, 1872

The Propo
al or Offer

Sec 2 (a) define an offer in the
e word
:
´When one per
on
ignifie
to another
hi
willingne

to do or to ab
tain from doing
anything,
with a view to obtaining the a

ent (acceptance) of
that other to
ch act or ab
tinence, he i

aid to
make a propo
alµ
eg R tell
S : ´ I am ready to
ell my machine for
R
000,are yo ready to b yµ
Thi
i
clear offer from R to S

cc

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Law
Indian Contract Act, 1872

Re irement
for Valid Offer

1Offer m
t be expre

or implied
-
t be made in a manner which leave no do bt abo t
it
-Propo
al made in word
, the promi
e i

aid to be
expre

, and propo
al mad otherwi
e than in word
, it i

aid
to be implied
eg  tell
S : ´Can yo repair my comp terµ ² Expre


offer
A
treet
eller of photo-alb m
 ietly extend
a
piece before a pa

er ²by who take
it in hi
po

e

ion-
Implied offer to
ell
2Offer m
t intend to create legal relation
3Offer m
t be certain and not vag e in meaning
Offer m
t be definite and certain in meaning

cÔ

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Law
Indian Contract Act, 1872

Offer may be
pecific or General

There m
t be de
tination of offer
-If offer i
targeted for one
pecific per
on, it i
called a

pecific offer
-If it i
targeted for the whole world at large, it i
called
general offer eg Adverti
ement

5 Offer m
t be comm nicated

{
 
 
  

6Offer m
t be di
ting i
hed from invitation to offer

eg Availability of ook
in ook Store being available for
letting o t Di
play of
it with price tag-All are example of
invitation to offer Adverti
er may or may not
ell thi


eg P bli
hing of Time Table by railway
are example of

expre

ion of an intention

cJ

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Law
Indian Contract Act, 1872

What i
difference between Invitation to Offer and General

Offer
Invitation to Offer: Aim
at taking the c
tomer to the
adverti
er to
tart negotiation
General Offer: Aim
at leading the offeree (to whom offer
made) to the performance of
pecified condition which
wo ld amo nt to acceptance of offer
7An Offer
ho ld not contain a term forcing an
action on Offeree
eg  tell
S that in ca
e no reply i
receiving from S
within day
, it will treated a
acceptance of hi
offer
S are not bo nd by thi
offer

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Law
Indian Contract Act, 1872

The Acceptance

Sec 2 (b) ´When a per
on to whom the propo
al i
made ,

ignifie
hi
a

ent thereto, the propo
al i

aid to be
acceptanceµ
A propo
al , when accepted become a promi
e
Re irement
for Valid Acceptance
1y a proper per
on-
-The proper per
on to accept the offer i
the one to
whom it i
targeted
-Offeror cannot be forced to be bo nd in a contract
with a per
on with whom he did not want to be involved

2Within proper time

Time
pecified by Offeror
eg Adverti
ement of IPO

cÿ

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Law
Indian Contract Act, 1872

3
t be ab
ol te and n alified(total and witho t

condition)
Offeree
ho ld neither add to nor red ce from the
offer anything from hi

ide
- offer to
ell hi
Car to S at R
20,000 S accept the
offer with the condition that payment
hall take after a
month
Thi
i
co nter offer from S to  The offer
from 
tand rejected


t be Comm nicated

ental acceptance i
no acceptance

5
t be given in a proper ode

-If Offeror pre
cribed ay mode of acceptance , it m
t
be adopted by offeree for acceptance Eg by fax, by
mail, by regi
tered po
t etc

eg A make
an offer to  and
ay
: ´If yo accept the

offer, replay by e-mail onlyµ 
end the reply by po
t
cV

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Law
Indian Contract Act, 1872
6Accepatnce m
t
cceed the offer
Two identical cro

offer
can not form an
agreement
eg A
end
a letter to  containing an offer Almo
t
at the
ame time,  al
o
end
a latter to A containing an
offer on exactly
ame line
The two offer cro

each other
d ring po
tal jo rney So they called identical cro

offer
Can both of them together form an agreement between A
and  on the logic that they repre
ent a common de
ire and
common nder
tanding 
Only two offer are made and there i
no acceptance

c

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Law
Indian Contract Act, 1872

7 Offer once rejected can not be accepted

 make
an offer to give job to H at R
 7000 pm
alary S

ay
, ´No, I want R
 8000 pm month  ref
e
 S
ay
, ´ Alright ,
I will work for R
7000µ 
ay
, ´I am not intere
ted in yo µ
There i
no contract between  and S beca
e ·
initial offer
came in to end with it
rejection by S thro gh a co nter offer
Now, it i
S·
offer to work for R
 7000 which  i
rejecting £




ca

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Law
Indian Contract Act, 1872

Comm nication of Offer, Acceptance and

Revocation
1Comm nication of Offer
An offer i

aid to have been made when it
come
to knowledge of the other per
on for
whom it wa
intended
2Comm nication of Acceptance
or Acceptance two
tep
re ired: (i) Offeree
tran
mit
hi
acceptance and (ii) e

age
reache
the Offeror
rogden V
etropolitan railway
Co
i Comm nication of acceptance from offeree i

binding pon the Offeror a

oon a
the latter of
acceptance i
po
ted
o a
to be beyond the
Offeree·
control
ii Comm nication of acceptance from offeree i

binding pon the offeree him
elf only when it
come
to the knowledge of the Offeror

c§

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Law
Indian Contract Act, 1872

eg r X
end
a letter of offer to Y on A g
t 5 which

may reach Y on A g
t 10 Y po
t hi
letter of
acceptance on A g
t 15 which may come
to
knowledge of X on A g
t 20
Offer
aid to be made on = A g
t 10
Offer
aid to be accepted for Y on = A g
t 15
Offer
aid to be accepted for X on = A g
t 20
Po
ition of time gap between A g
t 15 to A g
t 20 =
Thi
time i
available for Y to withdraw hi
acceptance

Ô

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Law
Indian Contract Act, 1872

3Comm nication for Revocation

Sec 5 provide r le abo t revocation of offer and
acceptance It
tate
:
´A propo
al may be revoked at any time before the
comm nication of it
acceptance i
complete from
acceptor a
again
t the propo
er, b t not afterwardµ
´An acceptance may be revoked at any time before the
comm nication of the acceptance i
complete a

again
t the acceptor ,b t not afterwardµ

Ôc

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Law
Indian Contract Act, 1872

X make
an offer to Y on 5th ay, it reach to Y on 10th ay

Y po
ted of hi
acceptance to X on 15th ay It reache
to
X on 20th ay

X
end withdrawal of hi
offer on th ay, it reache
to Y

on 1th ay
-It will come to effect on 1th ay only, even tho gh X

end on th ay It i
called revocation of offer

Y
end withdrawal of hi
acceptance on 17th ay , it

reache
to X on 1th ay
-It will come to effect on 1th ay only, not on 17th ay
It i
called revocation of Acceptance

ÔÔ

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Law
Indian Contract Act, 1872

1 X make
an offer to Y on 1th ay, it reach to Y on 5th

J ne When Offer i
completed
-It i
competed only on 5th J ne

2 Y po
ted of hi
acceptance to X on 10th J ne It reache

to X on 30th J ne When acceptance i
completed
- It i
completed only on 30th J ne

3 X want to withdraw hi
offer, which i
the la
t date

-It m
t be before 10th J ne, not thereafter

 Y want to cancel hi
acceptance, which i
the la
t date

for cancellation
-It m
t be before 30th J ne, not thereafter

ÔJ

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Law
Indian Contract Act, 1872

  Lo

of letter of Acceptance in the Po
tal tran
it

Acceptance i
complete a
again
t Offeror a

oon
a
the letter of acceptance i
po
ted The contract i

completed even if the letter of acceptance lo
t in
the po
t
 t it i
important that the latter of acceptance i

correctly addre

ed,
fficiently
tamped and
po
ted
  Contract over telephone or telex or oral
comm nication
The offeree m
t make
re that hi
acceptance i

properly received ie heard and nder
tood by the
Offeror

Ô-

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Law
Indian Contract Act, 1872

When doe
an offer come to an end

An offer come to end by Two Revocation or lap
and

Rejection of Offer

A Revocation or lap
or Withdrawal of Offer (Sec6)

1y comm nication of notice of revocation by Offeror
before it
acceptance i
completed again
t him

2 y lap
of time
- X offer Y to
ell
ome good
on 1
t ay and agreed
to give him three day
time to accept Y accepted
offer on 5th ay

3 y non-f lfillment of condition by offeree

- X offer to
ell
ome good
to Y, if Y give f ll amo nt
before certain date
Ôÿ
Indian Contract Act, 1872
y death of Offeror
- If offeree accept the offer in ignorance of the
death of Offeror, the acceptance i
valid

5 If co nter offer i
made

6If Offer i
not accepted according to pre
cribed

mode

7If law i
change

 Rejection of Offer by Offeree

1 Expre

Rejection ie by word
written or
poken
2Implied rejection
-when offeree make co nter offer
-When offeree make conditional acceptance
-Not following pre
cribed time

ÔV
Indian Contract Act, 1872
Ca
e Law
1 A garment
tore gave the following
adverti
ement in a new
paper: ´Special
ale for
tomorrow only en·
S it
red ced from R

200 to R
 100µ I
it offer
2 P
ay
to Q, ´I will
ell yo a cameraµ I
it
offer
3 A adverti
e
in ToI that he wo ld pay R
 R
200
to anyone who find
and ret rn hi
knowledge
I
it offer
 A offer by a letter to
ell hi
car to  for R

15000 , at the
ame time, offer by letter to
b y A·
car for R
15000 The two letter
cro


each other in the po
t I
there a contract
between A and 

ԏ
Indian Contract Act, 1872

Con
ideration
[   
£define
con
ideration a
follow : ´When at the
de
ire of the promi
or, the promi
ee or any other per
on
ha
done or ab
tained from doing, or doe
or ab
tain
from
doing, or promi
e
to do or to ab
tain from doing,

omething,
ch act or ab
tinence
or promi
e i

called a con
ideration for promi
eµ

Ôa
Indian Contract Act, 1872

Legal R le
a
to Con
ideration

1Con
ideration at the de
ire of the promi
or

eg A
ave
·
good
from fire witho t being a
ked to do

o A can not demand payment for hi

ervice
2 Con
i from promi
ee or any other per
on
It i
immaterial who provide
the con
ideration for a
per
on·
promi
e
o long a
con
ideration i
there
3 Con may be pa
t, pre
ent or f t re
Pa
t Con : A find
·
Son and  promi
e
to pay
A 10000
Pre
ent Con : At the time of making promi
e
 t re Con : A promi
e
to deliver good
to  when the

hip arrive
and b promi
e
to pay A R
1000 again
t the
receipt
of good
 It
f t re, a
both the partie
will
perform after the arrival of
hip

Ô§
Indian Contract Act, 1872

 Con need not be ade ate

eg X
ell hi
ho
e worth R
1 lac for R
 100 to Y
5 Con m
t be real and not ill
ory
i Phy
ically Impo

ibility
eg X promi
e
to p t life into Y·
dead wife
ho ld Y
pay him R
 500
ii Legal Impo

ibility
iii Uncertain Con
ideration
6Con m
t be
omething which promi
or not already bo nd
to d e
eg There wa
a promi
e to pay to the Vakil an additional

m if the ca
e wa

cce

f l
7It m
t not be illegal, immoral or oppo
ed to p blic policy

J
Indian Contract Act, 1872

Exceptions (Sec. 25)

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Indian Contract Act, 1872

Capacity to Contract

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Indian Contract Act, 1872

inor
  According to Indian inority Act,
1875, a per
on who ha
completed
hi
18th year of age i
con
idered too
be minor

JJ
Indian Contract Act, 1872
  Law Relating to minor·
Agreement
:
´NO LEGAL ACTION TAKEN AGAINST INORµ

1Ab
ol tly Void

Agree of minor i
ab
ol tely void and n llify
eg A minor take loan of R
 20000 from moneylender and
p t mortgage of hi
ho
e in favor of moneylender Later,
minor
tarted an action to get the mortgage cancelled

2 Agree may be enforced for minor·
benefit


eg A minor may give loan to a per
on and the
borrower may ref
e to ret rn money on the gro nd
that agreement i
void
- ndamental r le, aim to protect the minor

J-
Indian Contract Act, 1872

3 ´R le of E
toppelµ doe
not apply again
t minor

-If minor mi
lead the other party to believe that he i

of the majority age, and then
ome benefit
get nder an
agreement , he will be permitted to deny latter the fact that
he wa
of minority age Thereby , he will have no liability
toward
the other party

 Normally , no re
tit tion wo ld be permitted

-No recovery from inor
Law regarding re
tit tion i
according to Sec33 of Specific
Relief Act 163

5Apprentice
hip agreement
are enforceable

S ch Agreement are made for minor·
benefit to enable him
to ac ire
kill nder trained per
on for f t re
-Agreement m
t be made nder Apprentice Act 161

Jÿ
Indian Contract Act, 1872
6 Service argee for minor i
not enforceable
eg ilm Prod cer agreed with the g ardian of minor girl to
give to the girl the role in hi
film Later, he gave role to
other girl Can girl make ca
e on ilm prod cer

7 Normally ,
pecific performance of promi
e

hall not be

ordered
Agree y minor may be ordered for
pecific performance if

ome condition are
ati
fied
i It i
made by g ardian on behalf
ii The G ardian i
competent to make that agreement
iii The agreement for minor·
benefit

8 No ratification on attaining majority age

eg K (minor) take loan from  of R
10000 and give
promi

ory note in favor of  K will not be liable nder thi

P/Note even after attaining majority age by K

JV
Indian Contract Act, 1872

 inor·
liability for nece

arie

If per
on provide any
pport or nece

itie
to minor who
are not enable to make contract, thi
per
on who had
provide nece

ity have right to reimb r
e from the property
of the minor, beca
e it i
benefit of the minor
10inor a
a member of partner
hip firm
-inor can not be partner
11inor a

hareholder
A minor can become a
hareholder in a company
thro gh hi
g ardian who will act a
hi
tr
tee
inor directly can not entered into contract with the
company
12inor a
an agent
A minor can be appointed a
a agent beca
e agent do not
inc r per
onal Liability

J
Indian Contract Act, 1872

13Po
ition of inor·
Parent

-Parent
are not liable for inor·
act
1 Po
ition of a joint contract of major and minor
-inor will not be liable major (ad lt) are liable
15 In
olvency of inor
- Co rt can not be declared in
olvency by co rt

Ja
Indian Contract Act, 1872

 
  




 

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Indian Contract Act, 1872

ree Con
ent

According to Sec 13 ¶Two or more per
on are
aid to con
ent when

they agree pon the
ame thing
in the
ame
en
e·
Thi
mean that there
ho ld be perfect identity of mind
(con
en

ad idem) regarding the
bject-matter of contract
According to Sec 1 con
ent i

aid to be free when it i
not ca
ed
by any of the following :
1 Coercion
2 Und e Infl ence
3 ra d
 i
repre
entation
5 i
take

-
Indian Contract Act, 1872

  i A ha
two car
, one bl e and other red He want

to
ell hi
bl e car  who know
of only A·
red car,
offer to p rcha
e A·
car for R
 20000 A accept the
offer thinking that it i
for hi
bl e car Thi
i
no
con
ent beca
e both the partie
are not
nder
tanding the
ame thing
in the
ame
en
e

  ii If  goe
to A and on the point of pi
tol a
k
A to

ell hi
red car for
m of R
 20000 to him, there i

con
ent beca
e both are nder
tanding that red
car i
the
bject matter of the con
ent, b t the
con
ent i
not free beca
e it ha
been obtained by
Coercion

-c
Indian Contract Act, 1872

Undue Influence
  Und e infl ence i
the improper
e of any power
po

e

ed over the mind of the contracting party
  According to Sec 16 a contract i

aid to be affected by
nd e infl ence when:
-(a) the relation
b
i
ting between the partie
are
ch
that one of the partie
i
in a po
ition to dominate the
will of the other, and
(b) U
e that po
ition to obtain an nfair advantage
over
other

-Ô
Indian Contract Act, 1872

  The per
on deemed to be in po
ition to dominate the will

of the other
- Where he hold
a real or apparent a thority over the
other like ma
ter and Servant , child and parent


-Where he
tand in a fid ciary relation
hip ( t al

tr
t and confidence) like religio
g r and follower,
doctor and patient
, lawyer and client


- Where he make
a contract with a per
on who
e

mental capacity i
temporarily or permanently
affected by rea
on of age, illne

or mental or body
di
tre



-J
Indian Contract Act, 1872

Burden of Proof
  The per
on who claim nd e infl ence ha
to prove
that it wa
the ca
e of contract He ha
to prove
that pre-exi
ting relation
hip, the po
ition of
domination, and the mi

e of the po
ition

--
Indian Contract Act, 1872
Difference Between Coercion and Undue Influence
1.Mode of Obtaining Consent
- In Coercion ,Consent obtained by threatening to act.
- In U.I. , Consent obtained by using dominating power.
2. Type of 6orce
-In Coercion, physical force is exercised.
- In U.I. , Moral forced is used.
3. Existence of Relationship
-relationship between the promisor and the promisee is not
necessary.
-Some sort of relationship MUST exist between the two parties
to the contract.

-ÿ
Indian Contract Act, 1872

6RAUD
  ra d mean
method of mi
leading a per
on deliberately
to ca
e in him a wrong nder
tanding of
o a
to
obtaining that·
per
on·
con
ent for a contact

  Eg  fal
ely tell
R that the car that he wa
offering to

ell wa
once owned by Sachin Tend lkar Thi
i
a fra d
again
t R committed to obtain hi
con
ent to p rcha
e
the car

-V
Indian Contract Act, 1872

MISREPRESENTATION
  i
repre
entation i
a fal
e repre
entation made
innocently witho t any intention of deceiving the other
party It may incl de two thing
:
(a) Wrong
tatement of a material fact
not known to be
fal
e
(b) Non-di
clo
re of the fact
where there i
a large
d ty to di
clo
e witho t any intention to deceive

-
Indian Contract Act, 1872
Diff. between 6raud and Misrepresentation
1 Intention:
- In fra d, there i
intention to deceive (mi
lead to

omebody)
-In i
 , there i
no intention to deceive

2 Con
e ence:
-In ra d, damage can be available to the affected
party for the lo


ffered 
-In i
 , no
ch damage are available

3 Defen
e:
-In ra d, the g ilty party doe
not have any defen
e
in it
favor
In i
 , the g ilty party have defen
e in it
favor

-a
Indian Contract Act, 1872

*/
  A mi
take mean
an error in nder
tanding the
fact relevant for formation of a contract

-§
Indian Contract Act, 1872


(
[ X , a poor widow, borrowed R
 3000 from a money-lender at
100% per ann m rate of intere
t for the p rpo
e of enabling her
to e
tabli
h her right of maintenance I

he liable to replay the
loan on the
e term

[ No, thi
i
an ncon
cionable tran
action and th

amo nt to a contract ca
ed by nd e infl ence
  A woman went to a jeweller, fal
ely repre
ented her
elf to be a
wife of Sachin Tend lkar and took with her a ring on the
pretext of getting the approval of her h
band  She depo
it the
ring with r Kambli Can the jeweller recover the ring from r
Kambli
% Ye
, beca
e , there wa
a mi
take of identity on the part
of the jeweller, Th
the agreement wa
void

ÿ
Indian Contract Act, 1872

Void Agreement
1 Agreement made by incompetent partie
(Sec 11)
Everybody i
able to make contract except
inor,
Per
on of Un
o nded mind,
Per
on who are di
 alified by any other law

2 Agree the con
ideration or object of which i
nlawf l

in part (Sec 2)
I will kill yo r if yo will give mw 100 bottle wine

3 Agree ade witho t con
ideration (Sec 25)

 Agree in re
traint of marriage (Sec26)

reedom of choice in marriage ha
been g aranteed to
every per
on who i
major in age

ÿc
Indian Contract Act, 1872

5 Agree in re
traint of trade (Sec 27)

X and Y were competitor
hopkeeper in a locality in S rat Y
agreed to pay X , a
m of money if he wo ld clo
e hi

b
ine

in that locality X did
o b t Y ref
e to pay
money
6 Agree in re
traint
of legal proceeding (Sec 28)
7 Agree the meaning of which i
ncertain (Sec 2)
8 Agree by way of wager (Sec 30)
A agree
with  that if there i
a rain on a certain
day, A will pay  R
 50 If there i
no rain  will pay R

50
A bet on hor
e race
A bet on winning or loo
ing of cricket match
 Agree to do impo

ible act (Sec 56)
10 Agreement made nder a m t al mi
take of the fact
(Sec 20)

ÿÔ
Indian Contract Act, 1872

  

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Ô
Indian Contract Act, 1872

Q a
i Contract

  There i
no offer, no acceptance, no con
en

ad

idem and in fact neither agreement nor promi
e

  The
e contact con
tit ted by the Law, and therefore

termed a
Q a
i Contact

J
Indian Contract Act, 1872

Kind
of Q a
i Contract
(Sec 68 to 72)

1 S pply of nece

arie

2 Payment by an intere
ted per
on
3 Obligation to pay for non-grat ito
act

eg r X , a trader, leave
good
at Y·
ho
e by
mi
take Y treat
the good
a
hi
own He i
bo nd to
pay for them to X
 Re
pon
ibility of inder of Good

r X pick
p a diamond on the floor of Y·

hop He
hand
it over to Y to keep it till tr e owner i
fo nd o t
No one appear
to claim it for  ite
ome week
in
pite
of the wide adverti
ement in the new
paper
 X claim

the diamond from Y who ref
e to ret rn Y i
bo nd to
ret rn the diamond to X who i
entitled to retain the
diamond again
t the whole world except tr e owner

-
Indian Contract Act, 1872

The finder can
ell the good
in the following ca
e
:

  1When the thing
fo nd i
in danger of peri
hing

  2When the owner cannot be fo nd o t
  3 When the owner i
fo nd o t, b t he ref
e to pay the
lawf l charge
of the finder

5 i
take or coercion
eg A and  jointly owe R
 100 to C A alone pay
the
amo nt to C and  not knowing thi
fact, and pay
R

100 to C again C i
bo nd to pay the amo nt to 

ÿ
Indian Contract Act, 1872

C  
* 
  Q ant m er it mean
´a
m ch a
earnedµ

  When a per
on ha
done
ome work nder a contact, and

ome event happen
which make
the f rther
performance of the contact impo

ible, then the party
who ha
performed the work can claim rem neration for
the work he ha
already done

V
Indian Contract Act, 1872

The claim for quantum meruit arises in the

following cases
1 When an agreement i
di
covered to be void
eg GE wa
employed a
a managing director in a
company After he rendered
ervice for three month
 It
wa
fo nd that the director were not  alified to appoint
him
2 When
omething i
done witho t any intention to do
o
grat ito
ly
3 When there i
an expre

or implied contract to render

ervice, b t there i
no agreement a
to rem neration
In
ch ca
e
, rea
onable rem neration i
payable
eg There wa
an implied agreement between P and a fire
brigade for the
ervice
of the brigade
 When an indivi
ible contract i
completely performed b t
badly

Indian Contract Act, 1872

Kind
of Contract
(Sec 68 to 72)







3
 *


3



 3 

3
 


    +



3  3 

a
Indian Contract Act, 1872
1 Cla

ification of Contract on the ba
i
of Enforceability:
a Valid Contract:
?
 

 


   

 
 

   


b Void Contract:



   
 

 
 


   



  
c Illegal Contract:
   
   





   


 

 

 
d Unenforceable Contract:
?

  
   


  
  
 
   


§
Indian Contract Act, 1872

2 Cla

ification of Contract on the ba
i
of ode of

Creation
a Expre

ed Contract:
?

 

 
  

b Implied Contract:
?
  
 

 
  
 


 

 
 
 
 

Cla

ification of Contract on the ba
i
of Extent of
Exec tion
a Exec ted Contract
  
 
   

   


  
b Exec tory Contract

   
 

  
 



 

 





 





 

a
Indian Contract Act, 1872

x


ac