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SEC- 1 TO 75:- Of Indian contract act profits for general principle of contract.
Whenever there is any contract his part admissible is automatically this act is the branch of
substantive law which create right parliamentary law.
There are 2 procedure of contract.

2 Parts of contract

A) Formative B) Consequential
1. Proposal 1. Performance
2. Acceptance 2. Breach of performs
3. Consideration
4. Competent party
5. Free constant
6. Lawful object and

# Contains-
Prohibited agreement
Concept of contingent contract
Concept of quasi contract
Discharge of contract


A) Formative
1. Proposal - As per English law it called as offer and in India it called proposal

# Definition- When 1 person signified to another his willingness to so some thing or to
absent from thing with a view so obtain such act or abstinence than he is said to make a proposal.

Essential performance 1. There must be intention to create legal relationship
2. There must be clear communication

#Case of kalai hider Allahabad high court
Fact- the plaintiff and defendant were family friend plaintiff invited the defendant for a
diner along with the family member defendant accepted the invitation for the dinner
according to all preparation made by plaintiff however defendant failed to attend the
Plaintiff field suit for recovering of compensation on the point of
breach of contract court held that he is not mentionable because there no imitation to
create legal relationship.

2. CAMMUNICATION - proposal must be communication created there must be clear
communication of the proposal by the person who made the proposal to the person
whom the proposal may be made.

2) ACCEPTANSE sec:2 (b)
When the person to whom the proposal is made signified his
assent there to is sais to have accepted the proposal. When proposal is accepted here is
becomes promise the relationship between becomes promise and promise relationship.

Essential elements of valid acceptance - 1. There must be intention to create legal

# CASE OF Balfour v/s Balfour
Fact Mr. and Mrs. Belfour living in England, Mr.Balfour was in service of the company
his job was primarily in England however it was transfer to shrilanka he was not allow to take
family with him. He promise his wife that when he goes to Shrilanka he will send certain
amount periodically to her however letter say he field to send such promise amount to wife
instituted suit against husband for recovery of such precise amount. Finally court held that
instituted there is no intoned to create legal relationship. Hence suit is not mountable.

2) it must be communicated -
#CASE OF lalman v/s gauri data
Fact - defendant Gauri Datta had employee named at lalman one day nephew of gauri
data ran away. There are various servants by the master to find. Including lalman. Mean
while gauri data announced reward of his field as lalman was not awere about this reward
he found the boy and delivered to parents afterwards he comes to know about the reward
there for he claim the suit against the suit gauri satta issued to pay there she failed suit
lalman is not entitles to recover amount of reward because there was no communication
of the proposal and expectance.

Types of proposal -
1. General proposal
2. Specific proposal

If there is general offer or proposal ten acceptance may be any person may be any
person this issue. has been announced in the #CASE OF
Carlil v/s carbolic smoke ball

Fact- Defendant Company manufacturing the medicine as to cold in the form of smoke
ball. They said in advertisement that him who uses our smoke ball and irrespecton of
that she gets affected by cold then he will be prayed with 100 pounds. In furnaces
Mrs.carlil and old lady started from could therefore compensation company refund to
pay. There for she instituted the suit against company. Court held that for the general
after there is no need to communication acceptance performance is equal to
acceptance there for company directed to pay the reward amount.

Counter proposal acceptance shall be absulate and it shall be unconditional acceptance
otherwise it amount to be a counter proposal. The counter proposal revock the general

# CASE of Hyde v\s wrench
Fact defendant was the owner of the land he offer to sale his land to plainfigg at this pries
of 1000 pound plaintiff said he is ready to pay 9950 pound defendant was not agreed for sale.
Now plaintiff shown his wellness to 1000/- pound. But that is also refused by the defendant.
according to the plaintiff instituted suit against the defendant not to sled his land at 10000/- rs
court held that there is no void contract because there is no agreement between the parties.
There is counter offer and counter offer revoke the original proposal accordingly sit of the
plaintiff was dismissed.

3) CONSIDRATION - Means consideration is one o the must essential elements formation
of contract it is the right to paid for contract it may be lawful lot otherwise. The concept
of consideration dependant on Latin magazine ex nudo pacto means out of new fact
no cause of action arises in other were a contract without consideration became void.

#Definition sec-2(b) when as the desire of the promise or any other person has done or
absent from during or promises to so or to absent from at doing something such act or
abstains promise is called as consideration for the promise.

Essential Elements
1. It must move at the desire to promissar
2. It may move from promises or ay other person
3. It must be real and not invalid illusory
4. It did not be addecular
5. It may be past, present, future
6. It must be not be illegal, immoral, a port to public policy
A Contract without consideration is valid : sec : 25

As a journal rule a contract without consideration is be void however sec.25 of the
Indian contract act parties for certain expectation to this journal rules.

1. Love and affection sec: 25(I) an agreement between 2 relationship out of love and
affection is valid ever without consideration.
For ex- A is a parent promises his sun D to pay rs.1000/- in writing the promise is
enforceable. In short the promise is must in writing must be registered under the law

2. Compensation for violently services sec: - a person promises for tell for past
service is legally binding.
For ex a promise to pay rs.1000/- to the person who had handed over the missing
bag is enforcement

3. Time barred debt a debt by limitation is declared bad suit can be instituted for
recovery within 3 years time beyond 3 years it its not actionable however a promise
made by person on the behalf of the debtor to pay time barred debt then valid

Privety of contract as journal rule only party to a contract alone can 2 and it issued sues
of sued on that contract. Stranger or out snider to contract cant suit sue of sued in thistle
the doctrine of privity of contract. According to English law a stranger to a contract suit
however in India lender exception circumstances a stranger can suit.

1. Beneficiary of trust trust is created for the Beneficiary of called the owner of trust called
stellar and the trust are the party to the contract and he tensional is a stranger to a
contract the revisited od the terms even they his is a stranger to the contract.
2. Marriage settlement- a stranger to contract can suit in respect of marriages settlement

# IN CASE OF Rose v/s Joseph
Fact the defendant is consist entered in to an agreements with the plaintiff father he
married plaintiff who did not married plaintiff suit was held actionable through she is
stranger to contract.
3. Acknowledgement- the promise of by the defendant or acknowledgment or estoppels
creates the privet of contract him self and the stranger the stranger can suit.
4. Assignment of contract the beneficiary enter the contract are assign to the 3
party the
assign to the 3
party canto
5. Through and agent the agent entered through the contract on the half of principle the
principal can enforce the contract.

Capacity to contract - (competent parties)
Sec-10 of the act privies a contract to be valid the partly must be competent to contract
Capacity of contract sec-11 any person is competent to contract provided by

1. He/she ------- major
2. He/she ------- sound mind
3. He/she ------ must not have been disqualified by law

Minor, purpose of unsound mind and person disqualified by law are not competent to

1. Minor according to sec.3 of the Indian contract act 1875 has not competed the age of 18
years .the minority external to 21 years he for guardian is appointed under guardian
words act contract per minor as follows ------ >

i) Void-ab-initio - it means invited from the very beginning this rule was let down
privacy council in the case of
# CASE OF moharbibi v/s dharmadas ghose
Fact in this case a minor mortgaged his house for.20000/- to money lender and received
an advance the contract and did not return the advance in an action court held that the
contract is not enforceable an the general that an agreement with minor that agreement
with minor is void ab- initio

2. A minor can be promise or beneficiary but not promissory she or he can enjoy the benefit
but cant be held liable.
3. A minor did not return restituted the beneficiary received under void or voidable
4. A minor can issued for special performances

Expectations - journals minor is not liable to meant any liability haw ever she is label for
necessary supply to him as his defendant residents ,food, cloth, education and frugal
expenses of sister of minor.

# In the case of kedarnath v/s ajundhiya
Fact it was held that money given to minor for marriage expenses was removable.

3. Person of unsound mind sec 12 profits to a person for the purpose of making a
contract if at the time whom and make is capable of under standing it and of forming
a rational judgment at to be effect upon the interest.
# Following are the person of unsound

1. Lunatics lunatics is adperson how is mentally deranged due to some mental strength
are other personal experience he is a person who is usually of sound mind but
occasionally of un sound mind may not made the contract when he is in unsound stage of
2. Idiots a idiots is a person who has completely loss his mental power he cant make a
contract of validity.
3. Intoxicated person a drunken person Intoxicateble person is incapable or forming a
rational judgment. His position is similar to back of the lunatics.

4) persons of disqualified the person re disqualified by law
1. Alien enemy means a citizens of enemy country he exist between the periods of
war gong on.
2. Insolvent- means banking persons when any persons decided to be insolvent then
he shall not entered in to contract
3. Convicts if any person convicted under any law enforce then he is may disqualified
to enter in to contract.

Free consent-
Sec-13: concept of free consent when 2 or more person agrees upon the something in
same sense its called as consent. Consent means meeting of minds or mutuality of mind.
Sec-14 : free consent consent is free if it is not caused by 5 thing
1. Coercion
2. Undue influence
3. Fraud
4. Miss presentation
5. Mistake

1. Coercion its means and include 2 definition .
Definition comity or threatening to commit any act forbidden by the Indian penal

definition unlawful detaining or treating to detain any property

definition to the prosodies of any persons so as to cost such person to enter in the

#Case of ranganyakkanmma v/s setti
Fact r was married her husband was rich having property act his disposal sale they has
no issue of child. Unfortunately her husband was died. Accordingly to all relatives of her
husband are gathered to that last arrangement of husband of r instead her to take their
relatives in adoptions she refused to the court .
Relatives prevented her from having the last right and he had no choose oak the boy
from relatives in adoption. Later n she contended the agreement is not enforceable
because the consent is unfree consent according to the court held that adoption was not
valid because anent was obtained by forced.

2. Undue influence 16 sec- when 1 person is in a position to dominate heal of anther and
usage that position to gain or the gate unfair advantage over another is said to execute.
Under influence the person who eliminate consent is unferee than such person has to
when why or how his consent was or free his consent was not free his consent was burden
of always lies on the shakers of the person who amendment.

# in case of allcard v/s skinner
Fact- a young rich girl who recently acquired majority having no parents she had her friend
action at none in neat n church all authority they came to know about her they influence
her mind who donate all her property to the church accordingly she donated all her
property to the church . Her presets is loss as property after couple of year she challenge
the validity of the donation of the property to the church she said that her consent was
unfree accordingly court dismiss a case. The suit was barred court held that there was
undue influence but she came in the court after laps of lamination period.

3. Fraud sec : 17 : fraud means and include any of the following act by party to the
agreement or this convict or the agent against of other partys to the agreement.

a) Suggestion as to which is not theory by the person who dos not believe it to be true.
b) Concealment of material act
c) Any promise made with out intension made.
d) any act threatening to
e) any act declared to disaudianse by only law

Therefore fraud can be committed by suggest your policy and super very
Suggestion fraud means false suggestion or false statement made. Spread very means
intentional casement there for fraud can by committed by doing scalene is also amount to
fraud same time.

# Case of Derry vs. peek
Fact by an act British trams a steam according to the company was incorporated which ah
accent of running tramp on steam power. According company issued prospectus to public at
large. For inviting the investment they made statement in prospectus that company was allowed
to run tramp on steam power. Infect no permission was granted by govt. only application was
pending ultimately that application came to be rejected one of the investor instituted the suit
that company. For fraud court held that there is no fraud was committed. No doubt there was a
false statement by there was no intension receive the public shit against company is too

4. Misrepresentation sec: 18 there is a false statement made however there is no
intension to dismiss such representation may be commit method.
A) Positive assertion means a person he makes statement and he is not aware as
B) Breach of duty there is no intension to issue but there is reach duty.
C) Causing innocent mistake by other partys such a person he induced other person to
believe and think to be true and to act on such a belief then it aliens to on

5. Mistake sec: 21, 22, and 23 when there is mistake as to question of fact then
agreement because void. If 1
4 elements are present that is coercion, fraud, undue
influences, misrepresentation then contact became voidable. The word mistake is the
combination of the 2 different words miss-take means taking something by mistakenly it
had divided into 2 category they are follows
I) Mistake fact
II) Mistake law

I) Mistake fact it depends on Latin principal innovation practice executing means
ignored of fact is good excuse ignorant of law is no excuse it there is consent
detained by mistake then termer is no agreement because there is no free onset
there for such an agreement becomes void.

Lawful consent & lawful consideration sec : 23,24,25
Sec- 25 objects or consideration is said to be lawful undid.

1. Forbidden by law
2. Fraudulent
3. Nature that implies to person or property
4. It would defect the person of any law
5. It is against rule of majority or afoul of public policy. How consideration becomes
divided in the

# Case of vijli devi vs. nansa nadar :
Fact - vijli devi was a married women she had friendship with nansa nadar . nansa nadar induced
to her to take divorc from his husband. Vijli devi express there inability to rise money then nansa
nadar give him loan for taking divorc. Shortly vijli devi take diverse and won the case. But she
denied to married with nansa nadar. Nansa nadar intuited a suit against the vijli devil. Court held
that there was no lawful loses and consideration there for no agreement enforceable by law.
Accordingly suit was dismissed by the court.

Sec- 25 profits exceptions to the journal rule ex nude facto journal rule means agreement
without consideration became void however under exceptional cause agreement without
consideration becomes void.
1) If it is made out of love and affection
2) If there are past violent service provided
3) If there is promise to pay time barred debt then in such cases even agreement without
consideration becomes void.

Quasi contract sec 68-72 : The name of certain relations resembling with both
crated by contract quasi contract means half way contact formative part was absent no
consideration in contract there must be formative part was absent and no need to give
consideration. And performance of contract was held. This contract was enforceable by
law. There are 5 illustration of the quasi contract.

1. Nasserites suppliers to a tent to contact of he was independent. There also such person
is liable for contract.
2. Ra embarrassment re embarrassment of a person in respect of payment made by
person who is not liable to pay she makes such payment so as to profits his interest sec
3. Non gradation: where there is benefit is taken from non gradation act sec -70 then such
person is liable.
4. Finder of goods in respect of finder of goods sec- 71. Though there is formative part
person is liable there is quasi contract.
5. Moneys money applies or goods delivered under mistake for sec-72. Than in the
substantive of formative there is a quasi contract relationship.

Void agreements void agreements means are though agreements which are legally non
existed agreements law says no contract and such agreements there so no legal
relationship created.
1. Agreements without consideration - agreements without consideration were totally void.
Ex ex nude pacto non oritu acto.
2. Whenever the object or the purpose of the agreements became void.
3. Happening of something or in future events. Which not happen such agreements are
became void.
4. Non happening or something if contract was depending on non happening and than
happening on certainty events the agreements become void.
5. Happening of thing becomes impossible than agreements became void. If such thing
which are agree on the agreements happening of such thing agreement.
6. Wager agreements wagering agreement are always void it means agreements between
the parties to pay money dependant on certainty amount uncertain event gain to one
person have except the loss or gain.
7. If agreement is impossible than such agreements becomes void and impossible by act.

Contingent contract sec : 31-36
Sec 31: in case of contract
1. This is contingent or happening of a non happening of such than that said to be
contingent contract.
2. When there is contracting or performance in independent on happening or non
happening or some thing there is a element of enforce ability of there is said as to
performance of reciprocal promise if the contingent offered than only reciprocal
promises are enforceable by law.

Prohibitory agreements - sec : 25-28
When ever prays in the agreements there are exchange of promise and such agreements
are enforceable at law how ever certain agreements are prohibited though agreements
prohabtual nature in respect of liberty, freedom, or personal right then such agreements
are not enforceable .
1. Agreements prohibiting a person to carried on any business trade ot profession in such a
case such agreements are not enforceable at lay.
Expectation 1. in respect of sale of goods there shall be reasonable there shall be
reasonable restriction enforce goodwill mean business reputation the cash be
requensable impart. In respect of other goodwill of business.

2. Agreements in return of marriage sec: 26: right to married is to be personal right. Be
defense of mortality of society marriage is said to be basis of society agreements retrain of
will validly of public policy or local they are void in nature.
3. Agreement in the same of legal preceding sec: 20 relents to right of the person tight
they are necessary incident of human personality. If such tight are violet then they such
stationary right profits to go to course of law. If any agreements in retrain of legal
procedure then they are void nature.

Sec : 37 to 41 meaning of the term to performance of contract means to execute
forming or to honor the promises exchange contract is always for the state of
performance means to give effect performance is to be donned by partys to the contract
unless it is specifically pro otherwise especially when personal services benefited or whom
there is specially personal skill the performance shall be back to same partys it would case
involve the performance can be done by any one on his behalf is all desertion the terms of
Offer of performances offer of the performance processes express readiness and
willingness to performance the promise offer of the performance when excepted by
others the refusal of the offer to performance then there is rejection of performance
Time and place of the performance performance is to be done on at exact time and as
place if no time and place aggregated than it should be al reasonable place of business nad
shall be during reasonable business hour there for performance is methods discharge of
the contract.

# Discharge of contract sec: 42-75
It is process weather contractual relationship comes to end is
relate to existing shed between of a contract by various method contract comes to an end as
1. Successful method - that is called as method of performance
2. Unsuccessful method - includes 5 methods
1. Method of innovations
2. Nature of remission
3. Breach of contract
4. Anticipatory breech of contract
5. Doctrine of frustrations

1. Method of novations it means renew of contract. Than old contract was automatically
A) There is previous contract b/w the partys
B) Old contract is substituted by new contract
C) New contract is to be performance and stand contract discharge.

2. Doctrine of frustration the term frosted the term frosted ditto unsuccessful or not giving
effect. frustration of contract means contract cant be perform because of certainty
continually the concept of frustrations is an out come of impossibility of performance of
the contract bw the party .
Illustration A and B entered in a contract where by A and B to pays this horse to for
certainty pries it is found at the time of contract horse was dead in such case
performance will not possible because contract stand the frosted.

3. Breach of contract and anticipatory breach of contract.
Parties to contract state of refuses or avoid performance of contract then that is called ad
breach of contract such a breach is of 2 kinds 1.breach of contract and anticipatory of
contract. When at the time of performance is will be avoided then it is called as breach of
contract .or it before the time of performance it is a breach performance it is a breach of
contract. That is called of contract that is called as anticipatory breach of contact.

Remedys for rightful partys
1. Compensation compensation for the violation of contractual types there can be 2
performance of compensation in term of money can be claim
2. Damages for the violation of legal right damages can be claim. Damages are the
mantiorbilitly for the legal form.
3. To residing the contract it means to cancels the contract party to contract has a right
to refused the contract in case Brach.
4. Specific performance the very thing party which is against between under this
remedy is avoidable under the specific relief.

# Specific relief act - 1963

There is performance in specific or the very thing is to be claimed. An agreed in
promises. The basis of this act founding law of equity in England there is no any compensation in
terms of money but partys to perform promises as agreed.

Remedys under the specific performance the term injection came from inject the word
inject means to stop. From doing again and again so as to avoid future violation
prohibitory order can be injections re of 2 types.

1) Injunction

1. Prohibitory 2. Mandatory
A) Perpetual A) injection mandatory
B) Temporary B) mandatory injection
I) interne
II) ad-interne

1. Prohibitory injection - means not to do some thing. they are again of 2 kinds
A) Perpetual injection means forever stops to do something. They are having halation
in future.
B) Temporary injection - they are during tendency of 2 of produce ring while perpetual
injection always granted is to be finally decided. Temporary injection has 2 types.
I) interne - ii) ad-interne

2. Mandatory - there can be order it required to do same thing such mandatory are 2
a) Injection mandatory - is that during the tendency of proceeding.
b) Mandatory injection - it is after deposal of preceding or suit.

3. Declaration suit or nitrous where is no money or property involve but what is involve is
declaration of legal right can dew to by court then that is called as declaration relies.
4. Rectification suit can be instituted in the court of law for correction of bills and
5. Specific performance the very thing is recued to perform especially when there is no
substitute provided the specific performance can be performed.
A) When ever there is any contract curtaining to immovable property money is not
adequate relief that there shall he specific performance can be claim.
B) In respect of movable property as a journal rule there shall be no specific performance
because there can be substantive for the performance how ever there is a exception
provided it is the rave comity of business or it has got special value to the than only
specific performance can be granted . The end.