INDIAN CONTRACT ACT 1872 | RAPID REVISION |SEC 1-75 | CA FOUNDATION | JUNE 2024 EXAM|

namaskaram this is CSR CS rajes your loia many of you have requested a full length video on the Indian contract act 1872 so I'm back with the video where I'll be providing certain key terms for each and every provisions of the Indian contract act 1872 which helps you guys in remembering the provisions as well as to write answers for practical questions in the examinations if you guys find this video helpful share it among your friends who are writing examination in the June so together let's remove the fear of Law and reinstate the love for the law so let's start with the Indian contract act 1872 the Indian contract act 1872 is divided into four parts Part One covering section number 1 to 75 provides the general principles of contract part two covering section number 76 to 123 were providing the provisions with respect to contract of sale of goods but these section numbers were officially repealed from the Indian contract act 18 72 in the year 1930 and a separate law was enacted follow as the sale of goods act 1930 so section number 76 to 123 is no more a part of the Indian contract act 1872 then the part three cover section number 124 to 238 provides the provisions with respect to special contracts that is contract of Indemnity contract of guarantee contract of bailment contract of pledge and the contract of agency five contracts covered under Section number one 24 to 238 then the part four govern section number 239 to 266 were providing the provisions with respect to contract of partnership but these Provisions were reped from the Indian contract act in the year 1932 and a separate law was made called as what the Indian Partnership Act 1932 so section number 239 to 266 is no more a part of the Indian contract act 1872 at present we have section number 1 to 75 which provides general principles of contract then 124 to 238 which provides the special contract so let's start section one in any act provides three Provisions short title extent commencement what is the short title the Indian contract act 1872 extent all of India commencement 1 September 1872 so let's discuss now the formation of contract how the contracts are formed or how the contract comes into existence every contract starts with what proposal proposal plus acceptance becomes a promise promise having consideration becomes an agreement agreement which is enforceable by law becomes a contract I repeat proposal plus acceptance promise promise plus consideration agreement agreement plus enforceable by law becomes contract and there are four conditions of enforceability section number 10 provides the four conditions which are required to be satisf ified to be a valid contract what are these sir fish can laugh at night that is free consent competent to contract lawful object and consideration which is not expressly declared as W so how to remember the section numbers of uh these words are see in the equation equation starts with a proposal and in the alphabets starts with letter A and what is the definition section section number two so two subclause a defines the what word proposal then two subclause B defines the what word acceptance the second equation Second Step promise plus consideration agreement so section number two sub Clause C defines the word promiser and promising section number two subclause D defines the word consideration section number two subclause e defines the word agreement and two sub Clause H defines the word contract proposal 2 a acceptance 2 B promis and promise 2 C consideration 2 D agreement 2 e and the contract is to H this is how the contracts are Made in India section number 10 provides the Essential Elements of an valid contract section number 10 provides that all Agreements are contracts if they are made with a free consent by a person who is competent to contract for a lawful object and consideration and which is not expressed declared as why so these are the four conditions which are given under Section number 10 of the Indian contract act 1872 but however there are five more Essentials or five more conditions which are discovered by the court over a period of time and these Essentials were given to the judgments by the various court so even those five conditions are required to be satisfied to be a valid contract so what are these the First Essential there must be how many parties two parties minimum two parties if they ask question anything with respect to the First Essential you just have to mention that in every contract there must be minimum how many party two party and maximum there is no limit remember this keyword minimum two maximum No Limit that out of those two parties one is the offerer other person is the acceptor and in case of two parties the word parties includes who natural person as well as the artificial person the law requires two parties but the two parties can be what natural person as well as artificial person for this we have a case study what is the case name state of Gujarat versus Raman Lan in which the Court held that in a partnership on dissolution if a partner takes away the asset it is not considered a transfer why because to be a transfer there must be how many parties two parties transfer and transfering but in case of partnership form is it any separate legal entity no partnership form is not a separate legal entity so if the partnership is giving assets to the partner it means it's just a division of assets of the partnership because the property of the partnership fir is the joint property of whom all the partners so when a partner takes away the asset of the partnership fir it is considered as what it is not considered as a a transfer and it is not subjected to tax because for taxability there must be a transfer to be a transfer there must be a contract to be a contract there must be how many parties two parties but in this case the Court held that there are no two parties there are no two parties there is no transfer there is no transfer there is no question of what tax this is what happened in which case law state of Gujarat versus Raman laano but after this case study there are certain amendments but to the income tax act where there is a concept called as presumptive transfer as for that even in case of transfer of assets section 10 provides the Essential Elements of an valid contract section 10 provides that all Agreements are contracts if they're made with a free consent by a person who is competent to contract for lawful object and consideration which is not expressly declared as white so there are four conditions which are given in the Indian contract under Section number 10 along with that there are few more conditions which are not given under Section number 10 but however these conditions are discovered by the the court over a period of time through its various judgment and those conditions are also considered as part of the law and they are required to be satisfied to be a valid contract so what are these are first one there must be minimum how many parties two parties so you should write in the examination minimum two parties maximum loow limit one is the offerer other person is the acceptor and this person can be a natural person as well as artificial person and remember the case study the case law is state of Gujarat versus Raman and so what happened in this case sir I should explain section 10 provides the Essential Elements of an valid contract section 10 provides that all Agreements are contracts if they're made with a free consent by a person who is competent to contract for lawful object and consideration which is not expressely declared as white so there are four conditions under Section number 10 but there are few more conditions which are not given under Section number 10 but which are based upon the Judgment of the code and even those conditions are required to be satisfied to be a valid contct what are they sir first one minimum two parties to be a valid contract there must be minimum two parties but there is no limit on the maximum number of person out of those two parties one shall be the offerer other person should be what acceptor one is the offerer ER other person is the acceptor and this person can be what person a natural person as well as the artificial person and for this we have a case law called as state of Gujarat versus ranal and so what happened in this case ramanlal had a partnership firm called as Raman and F along with his wife now the question is is ramanlal and K and Raman and his wife are they one and the same or different the answer is they one and the same why because in case of partnership firm there is no separate legal entity so when I say partnership firm it means whom all the partners and the property of the partnership firm belongs to whom all the partners so after some time ran La decided to close the business on dissolution ran took away some assets of the partnership at that point of time the income tax officer demanded the tax from ranal claiming that it's a transfer of assets from the partners form to the Raman La the case went to the court and the Court held that it is not a transfer why because to be a transfer there must be how many parties two parties here the partnership fir is not a person we call it as a person so if it not a person there is no transfer so because there is no transferer because there is no two parties there is no contract no contract no sale no sale no tax so this is what happened in which case law state of Gujarat versus ranal Anu where the court had that because there are no two parties there is no contract no contract no sale no sale no tax state of Gujarat versus ranal and second one most important essential element of valid contract based on which they asked questions many times in the previous examinations there must be intention to create what relationship a legal relationship means the parties must have the intent to create a legal obligation between them in case of uh in case of any breach of those legal obligation they must have the intention to approach the court of law so while writing the answers for this essential how we supposed to start it should start saying that every agreement should be made with the intention to create a legal relationship however in case of social agreement and domestic agreement the law presumes that there is no intention to create legal relationship however this presumption is a what presumption a reable presumption so what is reable presumption sir there are two types of presumptions in the law one is rtable other one is irritable what is rable Sir the presumptions which can be changed by providing evidence to the court the court will have a presumption but that presumption can be changed by providing what evidence so what kind of evidences sir in case of intention to create a legal relationship the court requires the evidence of document to be return form and it must be registered with the sub regist so if you have the social agreement or domestic agreement in the return return form and if it is registered is it enforceable by law yes because you have the proof to prove that there is an intention to create a legal relationship but in general what is the presumption in case of social agreement that is between the friends domestic agreement between the family members there is a presumption that there is no intention to create a legal relationship for this we have a case study called as Mrs balfer versus Mr balfer who filed a case here Mrs balfer against who Mr baler a wife filed a case against the husband what happened in this case Mr balur was a civil engineer in a city called as silon happy life with a small family he got some holidays so on a vacation he went to England along with his wife Mrs Bal in England Mrs balur got few health issues because of that in England Mrs balford got health issues and she got admitted to the hospital and the doctors advise her to stay in the England itself for treatment purpose while leaving Mrs balur Mr balur made a promise saying that he promised to pay her 30 pound every month so after return to the sonon he heard from few people that Mrs balfer is not behaving properly and she is going out secretly with some other person because of this this reason Mr balur did not send the money and Mr Mrs balfer filed a case against who Mr balfer so Mrs balur approached the court and the Court held that this agreement is not enforcable by law because it's a domestic agreement and in case of domestic agreement there is a presumption that there is no intention to clear a legal relationship and Mrs balford did not have the evidence to prove that she had the intention to create legal relationship so who won the case Mr balur won the case I repeat the first essential element is two parties second one intention to create a legal relationship what is the case name Mrs balur versus Mr Bal other formalities to be complied with if there is a specific law which is governing a spe certain type of contract such type of contracts are required to be satisfied with what the specific law also the next essential m is the other formalities to be complied with if there is a contract which is governed by a specific law that contract must satisfy the conditions which are specified by the specific law thus the statut requirement like agreement to be in writing agreement to be signed by Witnesses agreement should be registered should also be satisfied to be a valid contract if these conditions are not satisfied is the contract valid sir no the contract is not valid not enforceable by law the next condition other formalities to be complied with a contract must satisfied the next condition is other formalities to be complied with if a contract is governed by a specific law it must satisfy the conditions which are provided by the specific law for example if there is a statutory requirement like agreement to be in writing it should be signed by the witnesses it has to be registered under the sub register office then all those conditions must be satisfied to be a valid cont if any of those conditions are not satisfied then the agreement is not enforceable by law the next condition is certainty of meaning the meaning of the agreement must be certain if it is ambiguous if it is vague the agreement is not enforceable by law next one possibility of performance the agreement should be possible to perform if an agreement is imposible in itself the agreement is white for example promise to discover a treasure by magic and promise to run 10,000 km per minute are these things possible no because it is not possible to perform not enforceable by law so these are the five Essentials which are based upon what based on interpretations along with that there are four more conditions as per section number what 10 that is free consent competent to contract lawful object and consideration which is not expressly declared as white we will discuss those topics later under the concept called as other essential elements of an a valid contracts next one types of contract types of contract the contracts can be classified into three categories how many categories three categories one on the basis of validity second one on the basis of creation and the third one on the basis of execution on the basis of validity first one what is the first contract a valid contract so what is valid contract sir a contract which is enforceable by law it is called as what contract a valid contract section number 2 H I repeat an agreement which is enforceable by law is called as what contract a valid contract next one wide agreement so what is wide agreement sir an agreement which is not enforceable by law is called as what wide agreement section number two Clause G 2G scam 2G and these Agreements are what wide of initio what is wi of initial sir wide from the beginning itself and keep this in mind in case of wide agreements the collateral Agreements are valid what is collateral Agreements are supportive Agreements are valid next one void contract what is void contract sir you must write this key word called as seizes to be enforceable by law wi contract is a contract which ceases to be enforceable by law that is called as what wi contract unlike wi agreements white contracts are absolutely valid and enforceable at the time of contract was made but later due to some unforeseen event or supering impossibility the agreement ceases to be enforceable by it is called as what contract avoid contract next one viable contract the contract is viable when it is enforceable at the option of one or the more but not at the option of other or others it is called as what contract avoidable contract I repeat if a contract is enforceable at the option of one party if there are more than one party one or more but not at the option of whom other are others it is called as what contract voidable contract there are three scenarios in which a contract becomes voidable first one when the consent is not free the person whose consent is not free will have an option to cancel or to make it valid so only at the option of the person whose consent is not next one section number 53 if one person prevent the other person from performing The Promise for example a prevents B from performing his promise now this contract is viable at the option of whom the person who prevented who is prevented here Mr B now Mr B has the option to cancel it section number 53 section number 55 where in a reciprocal promise time is the essence and if one party fails to perform the contract upon the agreed the other party has the option to cancel it so these are the three scenarios in which a contract becomes voidable last one illegal agreement so what is illegal agreement sir the agreements which are forbidden by law are punishable by law are called as which agreement illegal agreements and in case of illegal agreements the collateral Agreements are also what tainted remember this word tainted it is also tainted with what tainted with illegality and are they valid or void void not enforceable by law I repeat in case of illegal agreements even the collateral Agreements are also tainted with illegality and hence they are vo but in case of wi agreements the collateral Agreements are valid so these are the types of contract based on what validity what is the first one valid enforceable by law vo agreement not enforceable by law and they void AB been issue void contract sees to be enforceable by law viable contract enforceable at the option of one or more but not at the option of of other and what is the section number 1953 55 next one illegal agreements which are forbidden by law are punishable by law called as illegal agreement in case of illegal agreements even the collateral Agreements are also tainted with illegality and hence they are void not enforceable by law next one on the basis of creation means how the contracts are made it can be classified into how many types the following types what is the first one expressed contract what contract expressed contract action number nine provides that when the proposal or acceptance is expressed by words it is called as expressed contract implied contract where the contract is made by implication again section number n where the contracts are made by implication of the law or by the action it is called as what contract implied contract if proposal or acceptance is made by whats Express cont other than whats implied cont so is are imp ation of law or an action that is implied contract passit contract which are inferred through the conduct remember the word inferred through the conduct it is called as what contract a tacit a contract and tacit contracts are contracts where the acceptance is conveyed silently best example for tacid contract is ATM or auction sale tacid contracts are also part of which contract implied contract next one is quasi contract what are Quasi contracts sir contracts are not the actual contracts not made by the parties but these are created by the law are imposed by the law to provide the justice so these are the four types of contract based on what creation what is the first one express contract implied contract Tait contract Quassy contract propos or acceptance by what express contract other than words implied contract conduct passit contract imposed by the law quasi contract next one execution on the basis of execution that is the perform performance the contract can be classified into what following types what is the first one executed contract what contract executed contract so now what is executed contract sir executed contract is a contract where the ACT is done or a forbearance is brought on record at the time of entering into your contract itself because we know that consideration can be what it can be an act or it can be a forbearance correct right so when the consideration is brought into record at the time of entering into a contract Itself by both the parties it is called as what contract executed contract the ACT is done or forbearance is brought on record it is called as what contract executed contract next one executory content contract where the consideration to be given on a future date that is after the contract is made it is called as what contract executory contract and this executory contract can be what unilateral as well as bilateral what is unilateral if only one party obligation is pending on a future date it is called as what unilateral contract if both the parties obligation is pending byal cont so these are the various types of contract on the basis of what on the basis of uh execution okay first one on the basis of validity second one on the basis of creation and the third one is on the basis of what execution on the basis of validity valid 2 H wide agreement 2G wide contract cont 2J and Y contract 2 I illegal agreements which are punishable by law creation expressed implied Tait quasi execution executed executory executory how many types unilateral and bilateral so these are the types of contracts next topic offer section 2 a defines the word what offer so what is offer sir when one person signifies is willingness to do or abstain from doing something with the intent to obtain the ascent of the other person to such an act or an abstinance is set to make what offer or a proposal so in an offer there should be minimum how many parties two parties offerer and offer so what offerer does he Express his willingness to do or abstain from doing something with the intent to obtain the asent of the other person to such an act positive or an abstinence when he said to make what offer types of offer offer can be what expressed when the offer is made by using the words it is called as what expressed offer other than words implied offer then the next one is specific offer what is specific offers sir keywords are offer made to an assain or a specified person remember this offer made to a assain or a specified person it is called as what offer a specific offer then what is general offer sir if an offer is made to a public at large and who which anyone can accept it is called as what a general offer keep this in point keep this in mind a general offer can be accepted by performing the conditions of the offer which is called as implied acceptance section number what section number eight eight accept it by performing it so a general offer can be accepted by performing the conditions of the offer or by receiving the consideration offered in the reciprocal promises so first one expressed offer by words second one impl offer other than words third one specific offer made to an assertain person or a specified person and which can be accepted only by that particular person to whom the offer is made private of Securities it's a specific offer only the person to whom the offer is made can accept it General offer made to public at large and anyone can accept it by performing the conditions of the offer for this we have a case study called as what car versus carboi smokeball Company Limited what happened in this case the carboi smokeball company limited invented a medicine called a smokeball because they were confident about this medicine they made advertisement stating that if anyone consume their medicine called a smoke ball as per the prescribed Direction and get affected with influenza they will pay some reward Miss Carl she read those uh advertisement and she has consumed the smoke ball as per the prescribed Direction but still she got affected with the influenza she filed a case against the company but company refused to pay the comp saying that there was no acceptance Express acceptance but the Court held that in case of General offer the offer can be accepted by performing the conditions of the offer in this case car has accepted the offer by consuming the medicine that is what called as performing the conditions of the offer there was an acceptance hence the car won the case clear expressed offer implied offer specific offer General offer next one cross offer when I say cross offer remember this word similar offers by each parties when the parties exchange a similar offer to each other without knowing the offer of other person and where the terms and conditions are identical it is called as what offer a cross offer cross offer takes place where there is a delay in communication especially in case of offer by letters what are the keywords similar offer to each other without knowing the offer made by the other party and the terms and conditions are identical next one counter offer important what is counter offer sir when the offer offers to accept the offer of the offerer subject to some modifications or condition of the original offer such offer of the offer is called as what counter offer there are two parties right offerer offer when the offering offers to accept the offer of the offerer subject to some conditions or modifications means offer is putting some conditions or modification to accept the offer so when she accept or when he accepts the offer offer subject to some conditions or modifications such an offer of the offer is called as what offer counter offer in case of counter offer which offer will lapse the original offer will it results into laps of which offer original offer counter offer next one standing continuous or open offer what is the key word sir if the offer intended to remain open for a specific period or a specified period during which it can be accepted any time it is called as what offer standing continuous or open offer repeat intended to remain open for a specific period can be accepted any time during that period and this offer is called as what offer standing offer or a continuous offer or open offer the organizations when they need the goods from time to time remember this word time to time whenever the word time to time is used it means what offer standing Contin are open uper so if a organization needs the goods from time to time they invite the tender from the public the person who submit the tender that submission of the tender is called as what called as the standing offer or open offer organizations invite the tender that that is called as invitation to offer so based on that when the other persons make an offer to supply the goods from time to time such tender is called as what offer which offer standing offer continuous offer or open up I repeat there are seven types of offer what is the first one expressed by words implied other than words third one specific offer specified person only he can accept it General offer made to public at large anyone can accept it by performing the conditions of the offer next one cross offer that is where the terms and conditions are identical similar similar offers are exchanged between the parties next one counter offer when the offer agrees to accept the offer of the offerer subject to itions are modifications that is called as what offer counter offer standing offer which is intended to remain open for a specified period and which can be accepted at any time during that particular period is called as what offer standing continuous or open up so these are the seven types of offers next one important point the Essential Elements of an valid offer so to be a valid offer the first one offer should be capable of creating what relationship legal relationship important condition because based on this they ask questions in the previous examination they'll ask practical question so to be a valid offer the offer must be capable of being accepted and giving rise to what relationship a legal relationship if an offer is not intended to give a rise to Legal relationship then it is not valid keep this in F offer should be capable of being accepted and giving rise to Legal relationship if the offer is not intended to give a race to Legal relationship is it offer valid no offer is is not valid so in case of social invitation there cannot be a a legal relationship why because social invitation is not capable of creating what relationship a legal relationship so social invitation even if it is accepted does not create a legal relationship these are the key words to be remembered to write answers for intention to create a legal relationship in case of offer what is that offer should be capable of being accepted and giving rise to Legal relationship offer should not be if offer is not intended to give a rise to the legal relationship then it is not valid and social invitation even if it is accepted it does not create any legal relationship next one offer must be certain definite and not we that oil example fruits example next one it must be communicated to the offer one more essential of valid offer based on which they can ask questions in the examination to be a valid offer offer must be communicated from offerer to the offer if offer is not communicated can there be an acceptance No it should write unless offer is communicat there can be no acceptance and an acceptance of an offer in ignorance of the offer is not an acceptance it is always like communication of offer offer he get to know about it then he can give an accept if he give an acceptance without being aware about the offer is it a valid acceptance no for this we have a case study called as lman Shukla versus Gat what happened in this case study sir G nephew was missing he sent his servant lman chukla to trace his nephew after lman Shukla left he made an offer to give a reward which lman was not aware of without being aware about the offer made by GID he found the nephew of GID laterally claimed the reward amount but Court held that lman Shukla is not entitled to the reward why because when he performed the conditions of daa that is when he gave an acceptance he was not aware about da and we just now discuss acceptance of an offer in ignorance of the offer is it a valid acceptance no not a valid acceptance next one offer should be made with the intent to obtain the asent of the other party obviously definition itself says right offer means what when one person signifies his willingness to do or abstain from doing anything with the intent to obtain the ascent of the other party so obviously the one of the essential element is the offer must be made with the intent to obtain the asent of other party next one offer may be conditional for example rtgs and payment conditions so offer may be conditional but not the acceptance next one offer should not contain a term the non- compliance of which would amount to acceptance important important see offer can be conditional but you cannot put a condition in the offer in such a way that if the other person does not respond to your offer it becomes an accept is it such kind of offers are valid no you cannot impose a burden upon the offer to respond you can presume the rejection by silence but not the acceptance by silence if you put a condition in an offer in such a way that the non response from the promise or offer would amount to acceptance such kind of offers are not valid out of all these the most important essential of valid offer is offer is different from invitation to offer if they ask question in the examination about invitation to offer you should always start with your word answers with the definition of offer first write what is offer then write invitation to offer if possible write few differences then you can compare the facts given in the question to the provisions and write the answer so what is offer offer is the final expression of willingness keep this in mind offer is the final expression of willingness by offerer to be bound by the offer if the other party chooses to accept it it's a final expression of willingness by the offerer and if the offerer ches to accept it who is have the intention to be bound by it offerer but in case of invitation to offer it is not a final expression of willingness here the person is just proposing the terms on which he's willing to negotiate you should keep this in mind not a final expression of willingness and he proposes the terms on which he's willing to negotiate that is called as invitation to offer in case of offer the person has the intention to be bound by it if the other person accepts it but in case of invitation to offer the person has the intention of negotiating on the terms it's just a negotiation next one offer is always subsequent to invitation to offer it cannot precede the invitation to off but invitation to office offer is always what precedent to the offer so offer plus an acceptance becomes what promise whereas invitation to offer plus acceptance becomes what offer these are the difference between offer and invitation to offer keep this in mind invitation to offer not a final expression of willingness and he has the intention of negotiation whereas offer is the final expression of willingness where the party has the intention to be bound by it if the other person accepts it examples for invitation to offer statement of intention or announcement a father has made a announcement saying that he going to will all his property to his son is it an offer No statement of intention or announcement is not an offer it is a what invitation to offer offer should be distinguished from what answer to your question if there is just an answer to your question is it called as an offer no it is called as what invitation to offer but this we have a case study called as what Harvey versus facy where what happened a person sent a telegram stating that if you do not respond uh what is the lowest price please State the uh what is is the lowest price of the bumper H plan Del of the bumper H plan so they have sent a telegram chating that uh will you sell your bumper H plan Telegraph the lowest price then the fa reply stting that the lowest price is some amount for this RV repli saying that we shall accept to purchase the bumper at the particular stated price but face he refused but this Harvey file the case will he succeed no because the answer of the fa is stating the price is just an invitation to offer just providing the information so answer to a question is not a offer it is just an invitation to offer statement of price is not an offer invitation to make an offer or to do business is also not an offer it is what invitation to offer goods sold through auction based on this point they ask questions many times in the examinations if the goods are sold at auction uh by issuing a uh invitation is that auction notice is considered as an offer or invitation to offer invitation to offer for example if a company gives a auction notice saying that they're going to auction something and if people travel from different places and gather at the particular place if the auction is cancelled later can the F case against the auction the answer is no because that notice given is only what invitation to offer so the O notice is sent first then they will gather by bidding they will make an offer that can be accepted rejected by the auction so auction notice is what invitation to offer we also have few more examples cataloges price list quotations circular inviting tenders display of goods in the uh shopping complex with a price tag Railway timetable Prospectors newspaper advertisement other than for reward all these are considered what invitation to offer and acceptance of invitation to offer results into what offer but not a uh contract clear section number 2 a definition of offer is important types of offer Essentials of valid offer in that intention to create legal relationship communication of offer and difference between offer and invitation to offer section number two subclause a section number two subclause B defines the word what acceptance what is acceptance simple definition when the person to whom the offer is made signifies is Ascend there to means to the offer it is called as what acceptance and accepted offer becomes what promise remember the equation offer plus acceptance promise promise plus consideration agreement agreement plus enforceable by law contract offer when it is accepted becomes what becomes a promise and what is acceptance remember the keyword when the person to whom the proposal is made signifies his Ascent to the offer it is called as acceptance legal rules of acceptance important one first one acceptance must be given only by the person to whom the offer is made if the offer is made to CSR who should give acceptance CSR should give acceptance if the offer is made to Harish Chandra who should give acceptance Harish Chandra should give the acceptance and for this we have a case now what is the case name Bolton versus Jones case law what is the case name Bolton versus Jones where Jones made an offer to Brook but instead of broker who gave acceptance Bolton gave acceptance is the acceptance valid no if acceptance is invalid how can Bolton file a case against Jones he filed a case will he succeed the answer is no because Bolton the offer was made to who who should give acceptance Brokers not the B so to be a valid acceptance acceptance must be given only by the person to whom the offer is made second one the acceptance must be absolute and unqualified if the acceptance is subject to conditions or modifications it is considered as what offer counter offer so how to write the answers for this you should write sitting that acceptance must be absolute and unqualified and it must be expressed in the usual or reasonable manner what is usual manner sir he Mar in the previous transation in that manner usual or reasonable manner unless the proposal prescribes the what manner of acceptance I repeat the acceptance must be absolute and unqualified and should be expressed in the usual and reasonable man unless the proposal prescribes the manner of accept but but however if an offer gives the acceptance subject to compliance of the conditions of the law is it considered as an qualified acceptance no because the law conditions are to be satisfied by each and every persons and for this there is an example remember a person says I will purchase the car subject you having the valid RC book is it a counter offer no it's a valid acceptance because he's not putting any extra conditions over there so if they ask that kind of examples questions what you will write acceptance to be valid must be absolute and qualified must be expressed in the usual and reasonable manner unless the proposal prescrib the manner of acceptance next one like offer even the acceptance must be communicated it has to be communicated in what Manner reasonable manner or in the usual form unless the offer has prescribed the specific mode of acceptance if it is not communicated or if it is conditional one is the acceptance valid no because without the communication acceptance is not valid and before a person gives the acceptance is he required to be aware about the offer obviously yes there must be communication of offer first then the communication of acceptance there are few case laws for this remember first one Brogden versus Metropolitan Railway company where he signed the acceptance kept in the draw is it a valid acceptance no Central Bank versus wenes just passing up resolution in the meeting is it called as acceptance no it has to be what communicated by the offer or by authorized agent next one important one the acceptance must be in the prescribed mod remember section number 17 section sorry section number seven acceptance must be absolute and unqualified and should be expressed in the usual or reasonable manner unless the offer prescrib the specific Le of acceptance so what happens if the promise he accept the promise other than the method in which it is specified what happens in that scenario sir in that scenario the promises should protest it the promisees reject the acceptance but if he remains silent then the promise the acceptance presumed to be Val I repeat if the promiser does not insist on the proposal being accepted in the manner prescribed after it has been accepted otherwise then the proposal presumed to have consented to that acceptance proposer proposer has condition saying that propos should accept the offer in telephone but propos gave acceptance by letter now the validity of the acceptance depends upon the proposal if the proposal does not insist on the proposal being accepted in the manner prescribed after it has been accepted otherwise then the proposer presumed to have consented to that acceptance and the acceptance is valid time the offer should be accepted if it is specified within the specified time if it is not specified within the reason reasonable time M silence maam is it an acceptance no mere silence is not an acceptance you can presume the rejection by silence but not the acceptance by silence but there is one exception one exception I repeat as acceptance cannot be implied from silence or failed to answer to your question but there is an exception what is the exception where the offer has in his previous conduct indicated that silence itself is the evidence of acceptance means where was agreed in the previous conduct that Silence of the uh offer itself is an acceptance then silence can be considered as what acceptance other than that exceptional cases an acceptance cannot be implied from silence or failure to answer to your question seventh one acceptance by conduct or implied acceptance section number eight eight accept it by for forming it correct right so acceptance can be either expressed one by words or by implied one what is implied one sir the promise can accept the promise sorry offer can accept the offer of the offerer by performing the conditions of the offer are by acceptance of consideration for the reciprocal promises so these are the seven rules of what acceptance next one section number three communication of offer and acceptance sir how the offer can be communicated sir the offer can be communicated either by words or by conduct moral words or written words or by actions except acceptance the acceptance can be communicated by the offer to the offerer by what act that is words expressed or implied second one communication by Omission remember there is an example not to arrive to the court so a person made a promise to pay one lakh rupees if it does not come to the court if a person does not come to the court it means what he has given the acceptance by omission of doing something next one or by conduct where a person gives an acceptance by certain signs or pictures or by actions so the communication of acceptance can be either by words or by Omission or by conduct section number section number three section number what three section number four section number four provides the provision with respect to what communication when complete so when the communication is complete in when it comes in case of offer when the communication of offer is complete and in case of acceptance when the communication of acceptance is complete proposal in case of proposal the communication is complete when it comes to whose knowledge offer is knowledge means offer should read a letter of the offer and it should be aware about it and only what is complete offer is complete but for acceptance we have a different rule against the proposal who is proposal the one who makes the proposal against the proposal it is complete when it put into what course of transmission out of whose control acceptor control once the acceptor put the letter in into course of transmission out of his control what is complete acceptance is complete against the proposal means he cannot change his offer against the propos when it is complete when it comes to whose knowledge offerer knowledge only when the letter of acceptance reaches to the offerer who is bound by it offer is bound by it communication of special condition important what are special conditions the conditions which are conveyed tacitly are called as what conditions special conditions for example the is raway ticket or air ticket in that there is a conditions which are mentioned at the backside and which are conveyed to the other person silently and even if he's not aware about it is he Bound by it sir yes he is bound by it so special conditions are the conditions where which are conveyed tacitly and even the acceptance is also conveyed tacitly and these condition must be what reasonable if they're unreasonable it is not valid and for that we have a case law called as Lily white versus Manu Swami where the uh the laundry person has promised to pay only 20% of the value of the cloth if it is lost is it valid no because it is unreasonable next one standard forms of contract see standard forms of of contracts are the contract where the terms and conditions remain the same and the standard forms of contract will contain what special condition so that special condition may be enforced on the other party who is subjectively unaware about the contents of the document provided the part wanting to enforce the contract has given what notice a reasonable notice important in a standard forms of contract the special conditions may be enforced on the other person who is not aware about the contents of the document provided that the party wanting to enforce has given what notice a reasonable notice but that reasonable notice must be given when the contract was made not after the contract was for that we have a case law called as Ru Transport company versus gansam where where the conditions were communicated after the contract was made is it valid or invalid invalid can it be enforced cannot be enforced cannot be enforced next one next one we have the revocation we have what a revocation revocation means what cancellation revocation means the cancellation correct right cancellation of offer and acceptance section number section number five as we know offer can be revoked before it is complete against who against the proposer who is proposer offerer before the acceptance is complete against the proposal what can be revoked proposal can be revoked and when acceptance can be revoked acceptance can be revoked at any time before the communication of acceptance is complete against who against the acceptor that is offerer can revoke his offer before offer put letter of acceptance into course of transmission accept C can revoke his acceptance before letter of acceptance reaches to the offerer clear with this so revocation of acceptance is Possible only when the acceptance is given by what given by post what if letter of acceptance and withdrawal of acceptance reaches at the same time then uh it depends upon what is read first if acceptance is read first there is a valid contract is revocation is read first then the contract is revoked section number six provides the modes of revocations there are various modes or various situations in which the offer comes to an end what is the first one by notice of revocation offerer gives a notice of revocation before the offer acceptance is complete against it offer comes to an end second one lapse of time if the offer fails to accept the offer within the specified time if not specified within a reasonable time for example banana it can be 3 days and for some other Goods it can be three months so what is reasonable time is a question of fact if the offer is not accepted within a reasonable time the offer will last next one by non-fulfillment of condition precedent if the offerer has prescribed a specific condition to be fulfilled before the offer accepts the offer and if the offer fails to fulfill those conditions offer will lapse for example depositing earnest money executing certain document or obtaining a degree these are the prec conditions to be satisfied next one by death or Insanity if the offerer dies and if if it involves a personal scale offer is invalid offer is automatically removed however if the offer involves the goods and if the offer he accepts the offer without being aware about the offer the acceptance is valid and it can be enforced against who against the legal representative of the offer counter offer we know what is counter offer when the offer offers to accept the offer of the offerer subject to conditions and modification such an offer of the offer is called as what offer counter offer in case of counter offer which which offer will lapse original offer will lapse next one by nonacceptance of the offer in the prescribed mode if the offer gives the acceptance other than the mode prescribed then the offerer has the right to contest it right to reject it but if it does not contest it then the law presumes that he has consented for such acceptance and acceptance is valid but if he rejects this the offer will comes to an end next one by subsequent illegality if the law declares an offer as invalid and the offer comes to an end so these are the cases section number six provides the cases in which what comes to an end contract comes to an and so let's recall the section number section number one is what short title extend commencement section number two is what definition three communication of offer and acceptance fourth when the communication of offer and acceptance is complete five revocation six modes of revocation seven is an absolute acceptance must be absolute and unqualified eight accepted by performing it accept the offer by performing the conditions of the offer nine offer can be expressed as sorry promise can be expressed as well as implied 10 essential elements of what contract a valid contract 4 + 5 clear let's go to the next one next one next one consideration section number two subclause D defines the word what consideration definition is important what is consideration when at the desire a promiser keep this in mind desire of the promiser this is the fundamental rule of consideration what is the fundamental rule of consideration the consideration must always happen at the desire of the promiser desire of the promiser desire of the promiser when at the desire of the promiser promise or any other person either promise he can do or any other person can do on behalf of the promiser promise or any other person has done something or abstain from doing something or promis us to do something done fast abstain from doing negative or promises to do something future so consideration can be a positive as well as negative such an act abstinence or a promise is called as consideration for the promis see every promise must have consideration without consideration promise is invalid so when at the desire of the promiser promise or any other person we don't care who is doing it but he should do at Whose desire promiser desire when at the desire of the promiser promise or any other person has done past or abstain from doing negative or promis us to do something such an act abstinence or a promise is called as consideration in the Misa cury case was held that consideration can be positive negative act sufferings suffering of one person disadvantage cause to the one person can be consideration to the other person so based on definition itself we have legal rules of consideration first one consideration must move at the desire of the promise remember this keyword consideration should be at the desire of whom promiser if it is not done at the desire of promiser or if it is done at the desire of a third party not a valid consideration and acts done voluntarily or services without any request cannot be considered as a valid consideration both the point should be there in your answer consideration should move at the desire of the promiser if it is not done at the desire of promiser or if it is done at the desire of a third party not a valid consideration and acts done voluntarily or servic without any request cannot be considered as a valid consideration for this we have a case study Durga Prasad versus Balo where the construction of complex happened at the desire of a collector however the the shop owner has made a promise to the Builder stating that he going to pay the commission on the goods he sell because the shop owner has not received the consideration from the Builder because the construction happened at the desire of whom collector there was no consideration no consideration no contract next one consideration may move from promise or any other person Law requires that consideration must be at the desire of promiser but who can provide the consideration anybody can provide consideration risey or any other person it is immaterial who who furnishes the consideration it can be done by the promise or any other person we don't care for this we have a chin versus Ramaya case law where on behalf of chin who gave consideration a old lady gave a consideration to Ramaya so the Court held that contract between chin and Ramaya is valid next one consideration can be past present future before the date of Promise past Sim simultaneously with the promise present after the formation of contract future keep this in mind consideration of the desire of the promiser from promise or any other person it can be passed before the date of Promise simultaneously present after the formation future next one consideration need not be adequate important one here consideration need not be of particular value or approximately equal value for which it is exchange but must be up something law would regard as what having value so interesting uh framing of words it need not be of particular value need not be of approximately equal value for which it is exchanged must be of something law which would regard having what value if it is shockingly less if the consideration is shocking shockingly less then if one person Alle if he alleges that his conent was not free such fact that the consideration is shockingly less can be taken into consideration as an Evidence and it can be considered as the consider consent was not free clear section number two Clause d sub Clause D is consideration consideration need not be adequate it has to be some value in the law but it will not be adequate can be one rupee 2 rupees 5 rupees 10 Rupees Etc performance of what one legally bound to perform is it a valid consideration no because you are not doing anything in the new promise right if you make a promise to perform which you are already bound to perform or which is already your existing obligation either as for the general law or as for the existing contract is it a good consideration not a good consideration a promise to do one is already bound to do either by the general law or existing contract not a good consideration because it add nothing to the pre-existing contracts a promise to perform the public duty is it a valid consideration no because the public officers already have a public duty they have a duty as per the law to provided service at free of cost if they charge consideration for such promises is it valid or not valid not valid valid for example the most classic example is promise to pay money to the witness can a witness take a money for giving a witness no it's his obligation and if he uh entered into a contract to receive the money for giving a witness is it valid not valid not enforceable by law next one consideration must be real and not illus if it is uh illus is it valid No it should not be illus if it is illus is it valid no for example promise to bring a Taj Mahal promise to build a Taj Mahal is it possible no physically impossible bringing a moon from the sky not valid consideration must not be unlawful immoral or opposed to public policy we will discuss this in detail under Section number 23 of the Indian contractors but keep this in mind there are seven Essentials of valid consideration what are they at the desire of the promiser promise or any other person can provide consideration it can be past present or future need not be adequate must be real and not illus and must be not be unlawful immoral or oppos to public policy then we have the two important rules section number 25 and the privity of contct section number 25 provides important one based on which they can ask questions in the examination section 25 clearly provides that section number 25 clearly provides that any agreement what any agreement without consideration any agreement without consideration valid or vo vo keep this in mind any agreement without consideration why but are there any exception to this rule yes there's an exception to this rule in the following class cases or following agreements even if there is no consideration for both the parties is the agreement valid yes it is valid what is the first one agreement made out of natural L and affection subject to how many condition four condition what are they natur L affection near relationship writing and must be resisted if these four conditions are satisfied even if there is no consideration for both the parties is the agreement valid yes agreement made out of natural L and affection subject to how many condition four condition natural L and affection near relationship writing register next one compensation for past voluntary services are voluntary services are valid consideration sir no sir it's not a valid consideration but however if there is a promise to compensate for fast volunt Services subject to how many condition four conditions is it valid yes valid what is the first condition service rendered must be voluntarily services are rendered by whom by the promiser promiser must be in existence at the time when the service was rendered and the promiser must have the intention to compensate must it means it should be in writing first what is the first condition services are rendered voluntarily services are rendered for the promiser promiser must be in existence at the time when the service was rendered and the promiser should be intended to compensate whom compensate the promising next one third one important promise to pay Time bar debt what is Time bar debt sir when a person has a right to file a suit to recover a debt he must file a case within how many years three years as per which act limitation Act if the case is not filed within three years it becomes what that time that is it recoverable now no in the court of law it is not recoverable but however if the person who is liable to pay the debt that is the time bar debt if he makes a new contract and he promises to pay a Time bar debt is it valid yes it is valid if it is in what if it is in return return form a promise in writing signed by the person making it or by duly authorized agent valid or not valid valid even if there is no consideration next one agency contract section number 182 182 agent2 183 uh agent to 185 provides that agency can be with consideration or without consideration graters as well as non- gratuitas both are valid so one of the exception is agency where even without consideration enforceable by law next one completed gift what is completed gift where the possession of the gift is transferred from the donor to the dony it is called as what completed gift in case of completed gift what is not required consideration is not required bailment what is bailment Sir delivery of goods by one person to another person upon a condition the goods shall be returned or disposed upon the completion of the purpose for which the goods are delivered so that is called as bailment bailment can be with consideration or without consideration gratuit us without consideration non- gratuit us with consideration charity generally charity Agreements are not enforceable byw because there is no consideration for both the parties but if the promise has undertaken some liability or if he has done something based upon the promise of the promiser then to the extent of work is it valid yes it is valid and it is enforceable by so next we have an important rule suit by third party can a third party interfere between the parties to your contract the answer is no because contract is a private Arrangement between the parties and it creates only a relationship between the parties and it creates rights and duties or rights and liabilities only between the parties to your contract it means a Str strer or a third party cannot acquire any right in a contract correct right who cannot acquire the rights a stranger or a third party so because they don't have any rights and obligation can they interfere and S the parties to your contract the answer is no I repeat privity of contract doctr of privity of contract provides that a stranger to a contract cannot Sue why because a contract is a private relationship between the parties and no other person can acquire rights and liabilities and they cannot file a suit but there are exceptional cases where even though a person is a stranger but still he can enforce the rights available in the contract what is the first one in case of beneficiary of a trust in case a trust is created for the benefit of somebody the beneficiaries can file a case against the parties to account against the truste next one in case of family settlement if settlement is in writing so the members who is not a part to the contract can also enforce it brothers made a promise to pay money to the uh mother even though mother has not signed the document still that she can enforce the right against the son if they don't pay the promised amount so family settlement in writing even if the member who is on a part to the contract can enforce it next one in case of certain marriage contract or Arrangement any provision made in the contract for the benefit of a person the person for whose benefit the provision is made can enforce the contract next one in case of assignment of contract who can file a case the assigning can file a case what is assignment sir transfer of Rights by one person to another person to an assignment deed is called as assignment in case of assignment who can file a case assign can file a case next one acknowledgement or aole if a person make an acknowledgement of his liability or admission of liability to a third party then third party can file as based upon the principle of estle when you admit your liability you cannot deny it later so in that case who can file a case third party can file a case next one Covenant running with the land what is covenant sir Contin conditions any conditions imposed on the land are always transferred along with the land so the subsequent buyer even though he is not a part of the contract he's Bound By The Covenant which were imposed in the original contract because those conditions always run with the land if it is with me I am Bound by it if it is with x x is bound by it if it is with y y is Bor by next one contract entered through an agent obviously any contract made through an agent there will be a privity of contract between the principal and the third party who can file a case principal can file a case against the third party to recover the money to be paid to him so these are the seven exceptional cases where who can file a case a stranger or a third party can file a case against the parties to a contract clear next one we have the uh parties who incompetent to contct section number 11 section number 11 provides what parties who are incompetent to contact who are the parties incompetent to contract three categories of person minor unsound mind disqualified by law who is a minor the definition of minor is given in the Indian majority act 1872 who is a minor in the normal cases or general cases anyone who has not attained the age of 18 years is considered as minor then who is minor sir the one who has completed 18 years of age is considers what a major then who is a minor in special cases sir that is where the court hased a guardian if natural Guardian is not there and the court has appointed a guardian in that scenario a person becomes the major at what age 21 years General cases 18 years special cases 21 years law with respect to minor agreement any agreement with minor is what wi up initial wi from the beginning itself for this what is the casee name Moi BB versus Zas G remember what case dided by a minor in favor of a major agreement is what not enforceable by law once wide always wi no ratification after attaining majority if a minor becomes a major enters into a new contract ratify the contract which was made when he was a minor is it valid sir no because there is no new consideration sir can you make a new contract with new consideration once he becomes a major sir yes but can you ratify the old agreement no next one minor can be a beneficiary I can take benefit of a contract if there is a contract which contains only benefits in favor of the minor is it valid yes minor can sue major major cannot Sue minor so if a major takes a loan from A Minor by giving his house as security can minor enforce it against the major absolutely yes next one minor can always fad minority the principle of estole is not applicable against the minor if a minor borrows a loan or enters into a contract by misrepresenting his age excuse me by Mis representing is age is that contract valid yes the contract is sorry the contract is vo not enforceable by law because a minor can always plead a minority if a minor Mis misrepresent his age and enters into a contract still that agreement is vo because a minor can uh claim is minority but however if a minor has received any money out of by misrepresenting his age and if the money is not spent the court at its discretion in the interest of Justice May order the minor to restore the cash back to the other person who has given the loan but however minor can never be personally held responsible because any agreement with a minor is white and minor can always lead what minority fifth one liability for necessary section number 68 important minor is not personally liable but what is liable minor asset is liable so minor is liable for necessaries but not personally liable only what is liable is property is liable what is what is necessary item sir necessary item means which are essentially needed by a minor are the items which a reasonable man would Supply to an infant in that particular class class to which the minor belongs so if a person supply necessary items to a minor he can recover the money out of Minor's asset not from the minor because a minor can never be personally held responsible even for necessary items consent of sorry contract by the guardian if a guardian makes a contract on behalf of the minor within his competence for the benefit of a minor is it valid yes it is valid but however m a guardian cannot transact in immovable property on behalf of a minor without the approval of means he cannot purchase he cannot marage he cannot dispose the assets of the minor without the consent of consent of the Court other than that a guardian within this competence for the benefit of a minor he can make a contract and the contract is valid next one no specific performance a minor cannot be compelled to perform what he has promised because he's a minor and there cannot be any personal liability on the part of whom minor he cannot be insolvent first let him become major and then he can claim insolvency partnership can it be a partner no it can only be a beneficiary under Section number 30 of the Indian partnership fact a minor can be admitted to the benefits of the partnership next one can he be an agent yes absolutely a minor can be an agent who can be an agent even minor can be an agent without binding himself to whom principal it means if minor does something on behalf of the principal to third party who's responsible principal is responsible but if minor does any mistakes while acting as agent of principal can principal to minor no next one contract cannot bind the parent or Guardian see for the act of minor who is not responsible parents are not responsible based on this they asked question in the previous examination to laptop in the absence of Authority either expressed or implied given by the parents or a guardian for the act of a minor even if for necessary item who is not responsible parent or Guardian are not responsible what if Authority is given either expressly or employ other parents are responsible yes next one join contract by minor and major who is responsible major is responsible contract is valid shity for minor is the contract valid yes because shity is there contract is valid who will be responsible shity is responsible minor a shareholder can minor be a shareholder no even if his name is entered by mistake it can be removed from the regist of members but however a minor can be a transfer of shares if the shares are fully paid next one liability for to remember this to is different breach of contract is different if there is a breach of contract by minor is he liable no but to yes what is to Sir to is a civil wrong like battery assault deformation these are called as what to so a minor can be held responsible for to not for breach of contract these are the provisions with respect to what miners agreement next one section number 12 persons of unsown Mind section number 12 defines who is sound mind if at the time of contract if a person is capable of understanding the term and can form the rational judgment as to the effect of the contract upon his interest that is called as what mind sound mind means at the time of contract is capable of understanding it and forming the rational judgment a same judgment upon his effect upon his uh interest then he's called as sound mind otherwise he is called as what unsound mind example lunatic idiot drunken a person who is enfeebled by the age these are person who is Delirious from the fever these are called as unsound mind if an unsound mind make a contract of unsound mind is the contract valid no contract is wi W inio but however section number 68 if any necessary items are supplied to the unsound mind or the person whom is legally bound to support the assets of unsound mind is responsible section number 12 capable of understanding forming rational judgment contract is valid contract by disqualified person there are few persons who are disqualified by the law itself first one is whom alien enemy when there is a war between the two countries the opposite country citizens are called as what alien enemy so any contract or agreement with alien enemy is what white not enforceable by law second one is whom foreign sovereigns diplomats ambassadors any contract with the foreign sovereigns diplomats ambassadors is not enforceable in India why because they're not subjected to local jurisdiction because they're not subjected to local jurisdiction of the laws even if you make a contract with them it is not enforceable by law H they are disqualified by law next one company or Corporation see company is an artificial person it can make contract but however if the contract is made beyond the powers of the company is the contract valid no because company act provides that any agreement or contracts made by a company which Ultra virus the company or why not enforceable by law insolvent during the course of his insolvency petition or proceedings they cannot enter into your contract next one convict the person who is under the imprisonment during such time he cannot enter into a contract so these are the persons who are disqualified by law section number 11 provides the parties who are incompetent to contract minor unsound mind persons who are disqualified by law 11 minor 12 is sound mind 13 consent two persons agree to same thing in the same sense there is a consent so when can we say there is a consent sir two person de to have consented to something when they agree to what thing same thing in what what sense same sense there must be a consent and should consent should be what consent free consent sir when can we say a consent is free sir if it is not caused by what C UFM squ on what date August 15th what is C sir coercion you UND influence F fraud M misrepresentation again M mistake so if the consent is not obtained by using UND influence fraud misrepresentation mistake it is not called as what it's called as free consent if it is Pain by using coercion UND influence fraud misrepresentation mistake it is not called as a free consent so there has to be a free consent and when it is not a free concent if there is a coercion under influence fraud misrepresentation mistake let us discuss what is coercion section number 15 provides the word what coercion what is coercion committing or threatening to commit any act forbidden by IPC Indian Penal Code 1860 either you are doing it are making a threat to do it any activities forbidden by IPC for example kidnapping rape or murder all these are forbidden by IPC you make a threat to do such activities takes consent ction or unlawful detaining or threatening to detain any property to the Prejudice of any person what is prud against the interest of any person with the intention of causing any person to enter into your contract it is also called as what cotion there are two parts here one an act forbidden by IC second one Detention of a property of a person unlawfully for example after the remuneration is paid by principal to agent the agent should return all the documents and the goods which are with him and which belongs to principal if he does not return or if he refuses to return and he keep them unlawfully and obtain the consent of principal for payment of extra money is a consent of principal free or not free not free because he has detained the properties unlawfully keep this in mind there are three scenarios thre to commit suicide coercion thre to go on a strike not a coercion because strike is not an unlawful activity or not forbidden by APC threat to file a suit not a coercion but a threat to file a a false case coercion and coercion can be done in India or outside India it doesn't matter what is the effect of coercion the contract becomes viable at the option of person whose consent is not free section number 15 Section number 16 undue influence what is undue influence sir where the relation ship between the person is such that one person in a position to dominate the will of other person and takes the unfair advantage of it that is called as undue influence unwanted influence it is also called as mental coercion coercion is called as duress or Menace in India sorry England undue influence is also called as what coercion mental coercion so we can say that there is undue influence there are four things what is the first one there must be a relationship between the parties relationship on relationship but in case of coercion there is no requirement of relationship it can be done by parties to your contct or by a stranger also so there has to be a relationship a near relationship between the parties like father and son daughter and uh mother like this and in that relationship one person in a what position a dominant position a position to dominate the will and the other person in a weaker position and the person who is in a dominant position take the what unfair advantage of it then we can say there is undue influence and in case of undue influence the burden of proof will be on whom on the party who is in what position a dominant position and there are few relationship where law itself presumes that a person in a position to dominate the will of other person when sir when one person has a real or apparent authority over the other person then we can say that the person having Authority is in a dominant position having dominance is wrong sir no sir having dominance is not wrong taking that dominance for an unfair Advantage is wrong next one fiduciary relationship so what is fiduciary relationship sir based on trust for example income tax officer uh and the client sorry and the uh the the the assc and between the CA and client who is in dominant position here CA because C trust the C Fu relationship between truste and beneficiary trusty between religious Guru and disciple religious Guru because they're based upon what trust next one mental distress if one person is mentally distressed other person is normal then the person who is in normal capacity is presumed to be having what dominance next one unconscionable transactions where the interest charge is unreasonable beyond the reasonability then also we can presume the dominance of Bel okay so is that clear so in case of dominance of will who has the burden of proof the opposition party that the person who is in a dominant Position will have the burden of proof to provide that evidence that he was not he was taken the consent of the other persons at is Free Will if he could Pro prove that he will win the case otherwise the other party will succeed and discuss I have discussed that in case of consideration if it is shockingly less the court can take that fact that the consideration is talking less as an Evidence in case of allegation of consent not being pre effect of UND influence number 19a provides the provisions with respect to effect of undue influence the contract becomes viable at the option of agreed party and the contract may be set aside absolutely means entire contract can be considered as white or if the party who is having a right to cancel it if he has received any benefit then the court can enforce it upon on such terms as it seems fit just seem just or equity for example a person has taken the loan and he has taken the loan at a rate of 25% unreasonable one so because the person who has a right to cancel it already received some benefit what court can do it can enforce the contract subject to modification like Court can say pay reasonable interest 10% 12% valid so in case of un influence the contract can be set aside absolutely or if the person having a right to cancel it has received some benefit subject to modification which Justice requires section 17 most important one uh what is fraud following acts are considered as fraud uh when following acts are committed by a party to the contract or by his agent with the intent to deceive the other party or is Agent to the contract it is considered as what fraud there are five cases which are considered as fraud first one suggestion as a fact of that which is not true by one who does not believe it to be true means intentionally lying is called as fraud when a person suggests something as a truth which is not true and he does not believe it to be true means what he knows that whatever is saying is like that is consider us fact sorry fraud second one active conment of a fact by a person having the knowledge of it a person is aware about a particular fact the truth but he conceals it a person is having a disease he conceals it and get married FR third one any promise made without any intention of performing it a fake promise a person makes a promise and he doesn't have any intention of performing it like promise to marry a girl promise to repay the debt these are all considers what fraud fourth one is a general provision which covers the other sections like where uh an act is not covered under the first one second one and third one it come under which one fourth one any other act fitted to deceive and the last one is what any act or Omission which a specific law declares as fraudulent if there is any other law which state a particular act as a fraud it is also considered as fraud as per which act the Indian contract act 1872 section number 17 for example companies act provides that any misstatement in the prospectus is punishable as a flaud so it is also flaud as per which chart contract act next one me silence is not a fraud why because there is no obligation upon the seller or the person to disclose the whole truth or the information which he is aware of because let the buyer be aware KV enter the buyer should be careful enough should be diligent to purchase the goods which is suitable for him you should be careful if there are flattering truth and if he fail to exercise the due diligence and he makes a wrong choice or he purchase the wrong Goods who is not responsible s is not responsible so silence is not a fraud I have some information that share market will go up after the election result and if I don't results if I don't disclose it and if I sell the shares at a high you know if I purchase the shares at a lower price and other person is not aware about the information sell them at lesser price can you claim the fraud here no because nobody is under absolute duty to disclose everything so if there is no duty to speak as per the law or as per an existing contract silence does not amount to fraud keep this in mind if there is no duty to speak upon a person then silence does not amount to fraud but what if there is a duty to speak sir then it amounts to Pro generally silence does not amount to fraud but if there is a duty to speak upon a person as per the law in that scenario silence amounts to what FR so in what type of contract or what type of situation there is a duty to speak sir first one in case of contract of fiduciary relationship second one contract of insurance so what is fidu relationship sir based on trust second one contract of insurance contract of marriage contract of family settlement between the family members and share allotment contract in these five types of contract and also in case of immovable properties to some extent there is a duty to speak in these cases if a person remains Sil ENT even though he's aware about the material facts that amounts to what fraud next one where silence itself equivalent to speech there are cases where a person silence also is equalent to speech for example if a person says if you do not deny something I'll considered as a good product he remains silent by remaining silent he's admitting that it is of what quality good quality if it is not of good quality it amounts to what fraud effect of fraud same like other one in case of fraud the contract can be resigned at the option of the person whose consent is not free he can file a suit for what even damages section number 18 misrepresentation simple intentional misstatement fraud innocent misstatement misrepresentation if a person suggest something as a fact which is not pro by one who does not believe it to be true it is called as misrepresent sorry Mis fraud if a person suggest something as a fact which is not true which he believes it to be true is called as misrepresentation why because he's he's also innocent so there are three parts in the definition of misrepresentation the first one any positive statement not warranted by the information which is not true though he believes it to be true is called as what misrepresentation second one breach of Duty first one is any positive statement which is not warranted by his information he's not aware about it which is not true but he believes it to be true misrepresentation breach of Duty without intent to deceive gaining advantage to one person a loss to the other person consider as misrepresentation keep this in mind there should not be intention to deceive next one causing innocently a party to a contract to make a mistake as to substance which is subject of the agreement that is also consider what misrepresentation effect of misrepresentation the agreed can avoid or resign the contract it can also insist upon the performance but can he claim damages no but in case of fraud can he claim damages yes and there are three exceptional cases where even though there is a misrepresentation the contract cannot be resigned they asked question based on this in the many times in the previous examinations the contract cannot be resigned it in the following cases what is the cases first one where after being aware about M representation if a party takes the benefit of the contract or if he affirms the validity of the contract he cannot cancel it you purchase a Goods which is not according to your uh expectations or statements made by the seller and you start using it consuming it can you cancel it later no second one party could have discovered the truth by ordinary diligence where a party could have discovered the truth by ordinary diligence but he fails to exercise the due diligence can can he cancel it later no we have discussed this example of providing the accounts where the true amount is mentioned but other person does not inspect it he cannot cancel it last one restoration of parties to the original position if it is not possible there was a misrepresentation and it is not possible to bring the parties to the original position restitution is not possible in that scenario the contract cannot be cancelled these are the three cases where a contract cannot be canceled what is the first one aware of misrepresentation takes the benefit or affirms the contract party could have discovered the truth by a deligence cannot be cancelled are where the restoration of parties to the original position is not possible in these three cases the contract cannot be resigned even though there is a misrepresentation next one mistake section number 20 2122 the innocent or erroneous belief by the parties to the contract or which par misunderstands is called as what mistake a wrong belief erroneous belief is called as mistake mistake can be of how many types two types mistake of law mistake of fact mistake of Indian law the contract is valid why because ignorance of law is no excuse everyone are presumed to be aware about the law if a person has a wrong belief about limitation Act made a promise to P the time B dat is it valid yes it is valid mistake of foreign law you shall consider it as what mistake of fact you shall consider it as what mistake of fact it is same like mistake of fact if it is unilateral mistake contract is valid bilateral mistake the contract is white because nobody is expected to know the foreign law mistake of fact it can be a for types two types unilateral mistake valid it can be about Identity or about nature then it is white see generally if one party under mistake let the buyer be aare the contract is valid it cannot be cancelled you want to buy something byy something else can you cancel it no it's your problem but however if there is a mistake about Identity or about nature of contract is a contract wide yes it is wide not enforceable by for example a old lady old lady thinking that she's signing a rental agreement she signed a transfer deed is it valid no it is void bilateral mistake agreement is absolutely void why because there is no Mutual consent there is no Meeting of Minds this bilateral mistake can be about quantity quality identity price or Ty so if there is a bilateral mistake the agreement is void not enforceable by law section number 22 next section number 23 section number 23 provides what lawful object and consideration to be a valid contract object must be what lawful if the object is unlawful is the agreement valid no agreement is white not enforceable by law number section number 23 provides section number 23 provides the lawful object and consideration so to be a valid contract the object must be what lawful if it is unlawful the agreement is vo there are few cases where the object is considered as unlawful because the object is unlawful the agreement is white what are the cases sir the first one if the consideration or object is forbidden by law or prohibited by law if the consideration or object is prohibited by law then it is considered what object unlawful object so when can we say the consideration is forbidden by law if it is an act it is considered as forbidden by law if it is punishable under any statute or if it is prohibited by regulations or orders made under the uh powers under the statutes see restrictions are different prohibition is different if it is prohibited unlawful object if it is restricted it is not considered unlawful object for example a license by the forest officer subject to restriction if it is transfer not consider as unlawful object only if it is forbidden it is called as unlawful object so first scenario when it is consider as unlawful is when the consideration or an object is forbidden by second one a consideration or an object is of such nature if it is permitted would defeat the provisions of the law or purpose of the law it is like if a person try to do something indirectly which he cannot do directly or if you go against the provisions of the law such kind of objects are not enforcable in the court of law why Court will not enforce it because if they enforce it it will defeat the law or it makes the law meaningless or provision meaningless that is why such kind of objects are considered as unlawful object for example if there is an agreement between the parties not to plead limitation where person has agreed you can file a case whenever you want is that agreement valid no it is against the what limitation Act it becomes useless next one adoption for annual maintenance see as per Hindu law Hindu adoption act there can't be any consideration for adoption what if a person has indirectly promised to pay some maintenance valid not valid transfer of bus permit is prohibited so to avoided provision what they have done they made a partnership between the person having license and a person not having license is the partnership valid no because any consideration or object is such nature that if permitted it would defeat the provisions of the law or purpose of the law it is considered as unlaw next one where a consideration object is fraud land means what to promote the fraud if partnership agreement is made with the intent to defraud the public is it agreement valid no agreement is what vo any agreement where the intention is to cheat or defraud the public or any other person agreement is wi why because the object is unlawful first one forbidden by law second one if it defeats the purpose of the law third one if it is fraudulent and the fourth one if the consideration or object involves injury to the person or property of another because of your agreement it going to spoil or it going to infringe the rights of somebody else it is considered as what unlawful object injury is a what Criminal wrongful op it is considered as injury for example you made a contract to copy the uh movie of somebody or a book of somebody it's a violation of copyright of somebody that agreement is not enforceable by or an agreement for a manual labor for repayment of debt is it valid no because it's going to impose or injury upon the person so any consideration or object involving injury to the person or property of another is consider unlawful object next one if a consideration or object is immoral against the public morality unlawful object and the agreement is vo example a loan to a married woman for a return promise to get a divorce and get married to the person who is giving a loan valid no it is immoral opposed to uh public morality next one consideration or object opposed to public policy now what is public policy sir the public policy is a concept which is developed by the court over a period of time and this concept of public policy is based on what precedents the judgments of the Court there is no specific provision in the Indian contract act these are based on what judgment anything which is in favor of the public is called as in favor of public policy anything which is against the public good is called as opposed to public policy and first one which is consider us opposed to public policy is trading with enemy so without license of government without permission of the government if you trade with an enemy during the war it is considered as opposed to public policy and the object is unlawful agreement is what next one stippling of prosecution or spping of prosecution what is stippling of prosecutions or stippling of prosecution means suspension of the prosecution or suspending the prosecution it's an agreement to prevent the proceedings already instituted from running the normal course of action by using the what course you try to interfere with the courts of Justice you try to avoid the prosecution by an agreement and using force that is considered as what stippling of prosecution these key words must be in your answer agreement to prevent the proceedings already instituted from running their normal course of action by using the force it is called as perversion or abuse of Justice sir why it is not allowed sir why because any person who has committed a crime should be prosecuted and punished that is the principle of law if you allow a person to escape after committing a crime it gives an bad message to society everybody start committing the crime so is any agreement not to prosecute or to drop the prosecution is void and not enforceable by so what if it is compoundable offense sir yes it is valid if it is a non-c compoundable offense it is why not enforceable by law next one maintenance and cherty any agreement where a person promises to maintain a suit in which he has no interest he just have the intention of promoting litigation because of that he made a contract to to finance is that agreement valid agreement is one next one champery what is champery agreement to assist another person in litigation in exchange of a promise to hand over certain portion of proceeds is called champ are champy Agreements are valid sir no Agreements are what vo but what if maintenance and champery Agreements are made in good faith for a valid reasons bonafied reasons is it valid yes valid next one trafficking Rel to the public office are titles enforceable not enforceable not enforceable because they're opposed to public policy why because it will interfere with the appointment of a best qualified persons for the public service so if you sell government job for consideration it is why not enforceable by law titles for consideration why not enforceable by law next one agreement to create monopolies Val or vo vo why sir because if there is a competition it benefits Home Society more the competition then better the price there will be Innovations inventions so because a monopoly will cult all these things so in agreement to create Monopoly is what why not enforceable by law next one marriage brokerage agreement What is marriage brokerage agreement sir an agreement to procure a boy for a girl or a girl for a boy for a consideration is also considered as what white not enforcable by law next one interference with the cours of Justice if you try to interfere with the courts of justice is it agreement valid no agreement is what bribing of witness bribing of register of the court or bribing of Judges all these are opposed to public policy it is based upon the principle that no filthy hand should be allowed to touch the secret Fountain of justice so any agreement which interfere with the courts of Justice why not enforceable by law next one any agreement creating an interest against the obligation going against the obligation or a public duty Val or void void not enforceable by law that agent example agent is receiving money from the principal should work for whose benefit principal's benefit what if he makes or if he enters into a contract for his own benefit Val or vo vo oppos to what policy public policy so these are the eight agreement or eight scenarios where the agreement is consider opposite to public policy and the agreement is quiet section number 24 consideration or object unlawful in part if there is a contract in which part of the consideration is lawful part is unlawful and if it is possible to separate Poss lawful part Val unlawful part is vo if it is not severable if it is not possible to separate entire agreement is vo not enforcable by law so these are the cases in which the object is considered as unlawful so we covered till section number 25 one short and exent section number two definition three the communication of offer and acceptance section number four when the offer in acceptance communication is complete five revocation six how to make revocation seven is absolute acceptance must be absolute eight accept the offer by performing the conditions of the offer nine promise it can be expressed or implied 10 essential elements of an valid contract 11 minor 12 A sound mind 13 is a consent 14 is a free consent 15 coercion 16 UND influence 17 fraud 18 misrepresentation 19 wable 20 21 to mistake 20 is bilateral mistake 21 mistake of law 22 unilateral mistake 23 lawful object and consideration 24 if the consideration or object is unlawful in part possible to separate lawful part is valid not possible to separate entire agreement is what and section number 25 any agreement without consideration is wi but there are exceptions where even though consideration is not there the agreement is valid and enforceable by a law because the wi agreements now section number 26 provides the provision with respect to agreement in Restraint of marriage so any agreement which restraint a person from marriage is white except with a minor so because minor cannot get married until unless he becomes a maor so if you make an agreement to restrain a minor from getting married agreement is valid and M can enforce it but any agreement with a major is not enforceable by law these restrictions can be partial restriction or can be an absolute restriction to marry not to marry a particular person or not to marry anyone for a particular period or for a whole time such Agreements are wi not enforceable by law section number 26 agreement in Restraint of marriage is white question number 27 agreement in Restraint of trade any agreement which restraints a person from doing or carrying a lawful business or a profession or a trade the agreement is more what vo not enforceable by law I repeat section number 27 provides that any agreement in Restraint of a business or a trade is what wide and based on this they asked a question in the recent MTP 2024 May MTP any agreement in Restraint of a business or a trade is what white but are there any exception yes what are one of the exception sale of Goodwill in case of sale of Goodwill and uh if in case of sale of Goodwill where the seller sells the Goodwill and agrees with the buyer to refrain from carrying the similar business important important important what business a similar business within the specified local limits as long as the buyer or successor in interest carries the business is that restriction valid yes it is valid where the seller has seller is restricting himself from carrying the similar business within a specified local limits until unless the buyer or his successor in interest is carrying the business such restriction is valid first exception sale of Goodwill but this local limit must be what reasonable second one partnership agreement section number 36 if a retiring partner an outgoing partner may be restrained from carrying what business similar business by an agreement is that agreement valid yes it is valid section number 11 provides that the partners May agrees to not to comp not to carry any competing business outside the farm is such agreement is valid yes it is valid it's is an exception to the section number 27 of the Indian con next one service agreement where employee binds himself during the term that he will not compete with the employer or not to work anywhere else is the agreement valid yes it is valid even though it is restraining a person from carrying a lawful business profession or trade last one uh Solas agreement or franchise agreement in case of Solas agreement or franchise agreement the person who is giving the franchise May restrain the person who is buying the franchise from dealing with any other Goods is that agreement valid yes it is valid so in general section number 27 provides that any agreement in Restraint of business or trade is white but there are four exception first one uh sale of Goodwill second one partnership agreement third one service agreement and the fourth one is agreement or franchise agreement section number 28 agreement in Restraint of legal proceeding see you be just I remedium where there is a right there is a remedy every person has the right to go to the court of law and enforce his right because with a right without remedy is useless right so what if the parties by an agreement restrict thems absolutely from enforcing the legal right is that agreement valid no agreement is white so in an agreement where one part is restricted absolutely from enforcing his right to the court of law is that agreement valid or what why not enforceable by law what if if it abridges the usual period for starting the legal proceedings as per limitation Act what is the legal period 3 years now what if the parties by an agreement reduce it to two years is that agreement valid no agreement is vo I repeat any agreement by which one party is restricted absolutely from enforcing the right to the court or uh where the parties abridges the usual period for starting the legal proceedings such Agreements are white but the exception is arbitration agreement means where by an agreement parties agree to refer their dispute to the arbitration not to the normal court is that agreement valid yes because they're not restraining the parties absolutely they're just saying instead of going to the court they will go to whom private parties who are called as arbitrator is that agreement valid yes it is valid other than arbitration agreement if you restrain a person absolutely from enforcing the right to the court of law or void vo next one section number 29 agreement where the meaning is uncertain agreement is what not enforceable by law section number 30 wagering agreement what is wagering agreements or wagering Agreements are wagering agreements means it's an agreement where money or money's worth is payable by one person to another person upon the happening or non- happening of of an uncertain event it's a game of chance is the agreement valid no agreement is what white there are few transaction which are similar to The wagering agreements and they are wi example Lottery transaction prohibited it's also punishable but in Kerala it is allowed next one crossword puzzle and competitions with the pre-prepared answers with the Publishers wagering agreements next one speculative transactions wagering agreements ARR wagering agreement but there are few things which are resembles the W agreements but they are valid what are these are chit fund if it is registered valid share market transactions speculative people are speculating that uh if a Modi government secures a majority then the market will shoot and people are buying more more number of shares next one uh game of skill and athletic competitions to the extent of th000 rupes price money valid next one contract of insurance is also valid section number 30 next section number 37 performance of contract important important important most of the questions will come out of this part why because this is where the breach of contract Provisions will come into picture Okay 37 simple 37 perform both party perform if you remember in our song 37 perform both party perform obligation of the parties to the contractor per section number 37 provides that the parties to the contract shall either perform or offer to perform then respective promises unless the performance of such promise is dispensed with or excused under the provisions of this act or any other it just provides that it's obligation of the parties you should perform or offer to perform your respect to promises unless the performance is excused either by the uh existing law or either by the contract or by any other law and the promises made in the contract also bind the representative of the promiser in case of his death unless a cont contrary intention appears in the contract or anything else is agreed in the contract question number 37 wherever there is a question of breach of contract you must write section number 37 because 37 is the obligation section like charging section in case of income tax section number 37 provides that the parties to the contract shall either perform or offer to perform the respective promises unless the such performance is dispensed with or excused under the provisions of this act or any other law and the pro promises bind the representative in the of the promiser in case of death of the promiser before the Performing such promise next SE number 38 refuse promise he refuse effect of refusal to accept the offer of performance if the promiser is ready and willing to perform if the promise does not accept it then who is not responsible promiser is not responsible then who is responsible promise so promiser is not responsible for the breach of contract nor he will lose any of his rights provided the offer to perform by the promiser must satisfy how many condition three condition it must be unconditional at a proper time and place if it is to deliver something then there should be a reasonable opportunity to inspect the good should be given to the promising 39 section number 39 39 refuse promise or refuse breach of contract wherever there is a question of breach of contract you should write section number 37 section number 39 if the party to the contract refuses to perform are disabled himself from performing The Promise in its entirety the promise he may put to the end to the contract means he can resign it unless he has signified his accuses in the continuation of the contract either by his words or by conduct I repeat if the promiser refuses to perform the contract or disables himself from performing The Promise in its entirety the promise may put the ENT the contract but what if he has signified his acis means admission in the continuation of the contct contract either by words or conduct can you cancel it later no for this we have a singer example where she made a promise to sing uh every week first week she absents second week she turns up and the other person accepts it can you cancel it later no because by allowing her to sing in the next day he has given the acceptance for continuation of the call section number 39 next section number 40 section number 40 who shall perform the promise 37 duty of the party 37 perform both party perform 38 refuse promise refuse 39 refuse promiser refus 40 perform who shall perform the contract should be performed by the promiser himself first is what always the promiser if something is there in the contract to show that it is the intention of the party that the promise should be performed by the promiser himself then it should be performed by the promis or where the personal consideration is the foundation of the contract it should be performed by the promises other than that scenario if personal consideration is not the foundation of the contract then the promiser or his legal representative can employ a competent person to perform the contract next one if a contract does not involes personal scale and if the promiser Dies who shall perform the promise the promiser legal representative but however the liability of the legal Representatives is limited to the extent of property inheritance next one third party perform section number 41 if a promise accept the performance from third party he cannot later enforce it against wh against the promiser because it results in discharge of whom promiser if a third party perform the contract and the promise he accepts it later he cannot demand performance from the promiser because once he accepts the performance from the promise it results into discharge of the promiser next one section number 42 Devolution of joint liabilities 42 43 44 45 deals with joint promises so whenever the questions with respect to Joint promises your answer should start with the word called as two or more persons where two or more person are made a joint promise unless the contrary intention appear from the contract the contract shall be performed by whom all the joint promises during their joint lives if in case of death of any of the promises then is representative jointly with Survivor in case of death of L Survivor representative of all jointly should perform the contract what to perform 42 JP join join JP 43 in case of section number 43 there are three Provisions okay any in case of join promises where there are two or more persons are made a joint promise unless the contrary intention appears the promise May compel any one of the promiser to perform the promise where two or more person made a joint promise the promising in the absence of contract to the contrary May compel any one or more joint promiser to perform then each promiser May compel contribution from the other promiser the join promiser May compel other joint promiser to contribute equally with himself correct right see if promise compels any one of the promiser to perform then the promiser who has been compelled to perform in its entirety can compel the contri ution from the other promises and at the same time the last provision is the third provision is the sharing of law in case of default of contribution if one of the two or more join promises make a default the remaining promiser must bear the laws in what shap equal race equal shares equal ratio section number 43 three provision promise he can compel any one of the promiser to perform and the promiser can compel the contribution from other promises then in case of uh loss by default of any of the promiser should be shared by the remaining promises jointly 44 effect of release of one of the joint promiser if the promise releases any one of the joint promiser it will not release other joint promiser nor it will discharge The Joint promiser so released from the responsibility towards whom towards the joint promises there are three promises a b c a is released does it mean B and C also released no it doesn't also mean that the one who is released is released from his obligation towards the other joint promiser he continues to be liable to the co- promiser 45 in case of joint rights joint promises if there are more than one joint promises then all of them can enforce the contract during their joint life in case of death of one of the joint promises the remaining joint promises along with the legal heads of the deceased joint promise in case of death of the last survivor all the joint promises can enforce the contract against the promis I repeat where a person promises to do to some two or more person jointly then those joint promises can enforce the contract jointly when they are alive if anyone dies remaining joint promises along with the legal representative of the decease joint promising in case of death of all of them all legal heads of the deceased join promises can perform or demand the performance from the party then 46 to 50 time and place of performance 46 provides a situation where no application to be made by the promise means he has agreed to perform without any request by the promise and no time is specific in that case it has to be performed within what time reasonable time section number 46 time and place where time is specified no application is to be made during what hours usual hours of business 48 is the case where promise should ask the promiser to perform means the promiser has not undertaken to perform the promise without a request from the promise then it is whose responsibility promise responsibility to make an application to the promiser to perform the promise at a proper place within a reasonable time during the business hour 49 no application to be made and no place is fixed for the performance then the promiser shall request the promise to fix the reasonable place for performance of the cour is most important performance in a manner or a Time prescribed or sanctioned by the promise any performance done in a manner accepted by the promise or time prescribed by the promise is valid even though it is not in accordance with the promise made because the promise can be performed in any manner which is sanctioned by the promise that is considered as a valid performance section number 46 to 51 to 58 deals with what performance of reciprocal promises what is reciprocal promises where there is a where there is a promise for a promise it is called as what promise reciprocal promise 51 prom 51 RP simultaneous RP means uh if there are simultaneous promises there is a re promises to be performed simultaneously then the promiser need not perform his promise unless the reciprocal promise is ready and willing to perform is promis next one 52 order of performance of reciprocal promises the reciprocal promises to be performed in the order fixed in the contract if the order is not fixed expressly then in the order which the nature of transactions requires I have discussed many examples for this if order is fixed in the fixed order if it is not fixed then in the order which the nature of transaction requires 53 liability of the party preventing the event on which the contract is to take effect remember when the contract becomes voidable one of the scenario is section number 53 if one party prevent the event on which the other party is supposed to perform the contract the person who is so prevented can cancel the contract question number 53 54 dependent RP where there are reciprocal prises and it is such that one of them cannot be performed till the other has been pered and the promiser failed to perform his promise then he cannot claim the performance of reciprocal promise obviously because if he don't perform I cannot perform and he fails to perform can he demand performance from me no and I can still file a case against what other person for compensation then 55 failure to perform the reciprocal promise where uh time is the essence the contract becomes voidable at the option of the other party section number 56 agreement to do impossible Act any agreement to do impossible act valid or vo why because one of the essential of valid contract is it must be possible to perform this impossibility can be initial impossibility or supering impossibility what is initial impossibility impossibility persist from the date of entering into your contract itself agreement valid or void void if it was known to parties void not known to the parties white known to the one of the parties then the one who is aware about that should compensate the opposite party what if the impossibility happens after the contract is made it is called a supering impossibility post contractual impossibility or subsequent impossibility our doctrine of force ma or act of God agreement is what wi not enforceable by law so if a performance becomes illegal or Impossible by occurrence of an unexpected event or change of circumstances is the agreement valid no agreement is what white and not enforceable not enforceable 57 RP where reciprocal promises are there to do certain things that are legal and illegal so whatever the branch which is legal it is valid illegal part is not enforceable 58 there is alternate promises one branch being legal other Branch being illegal only the legal branch is valid for example that rise and OPM example only the rice is enforceable 59 to 61 ICI more most favorite topic favorite so appropriation of payment section number 59 to 61 appropriation of what payments see simpler if a person owes several debt to a single person and he makes a part payment which is not sufficient to discharge all the debt then how it has to be appr appropriated towards which dat it has to be applied it has to be applied as per section number 59 to 61 section number 59 provides as per the intention of data 60 provides as for the intention of creditor 61 provides as for the order of f section number 59 application of payment debt to be discharged indicated if a payment is made by datar either Express intimation or implied intimation that payment should be applied towards a particular dat then if the payment is accepted by the Creditor it has to be applied as as per whose intimation as per the datar intimation second one where the data omitted to uh uh intimate or there are no other circumstances to indicate that it is paid towards any debt then the Creditor at his own discreption can apply the payment made towards which debt any lawful debt actually do even for a Time bar debt but however it cannot apply to which debt disputed debt next one application of payment where neither party appropriates where datar fails to indicate as well as credit fails to indicate in that scenario the debt has to be applied in the order of time first in first out and whether it is time b or not and where if the debts are of equal standing means the same debt is borrowed in the same date two dates are B on the same date in that scenario it has to be applied proportionately proportionate basis or prata basis where we have discussed many questions for this clear right next one uh section number 62 to 67 deals with what discharge of contract where the contract need not be performed by the parties to a contract section number 62 provides the contract need not be performed by mutual agreement in the following scenario what is the scenario the parties to a contract may agree to what substitute a new contract for the old contract or to resign the contract or to alter the contract in all these three cases the original contract is need not be performed I repeat the parties to your contract agrees to substitute a new contract for it or to resign it or to alter it then the original contract need not be performed so when they agree to substitute a new contract for it it is called as what no Novation and Novation can happen between the same parties or different parties but however consent of all parties is required resigned or recision means what cancellation when they agree to cancel it what happens the contract comes to an end the major difference between the Novation and recision is in case of Novation a new contract comes into existence whereas recision there is no new contract but Novation also involves recision cancellation next one in case of alteration between the parties which has the effect of bringing the new contract into existence what is not required to be performed the original contract need not be performed so that is why the difference between Novation and resist is very slender means thin margin differences there next one section number 63 promise he may wave wave give up or remit the performance if a promise he dispense the performance or remit the performance either holy or part or he may extend the time for such performance or accept any satisfaction which he things spit in all these cases who is discharged promiser is discharged I am liable to give one lakh rupes cash but I'll give my watch promise he accepts it I discharged from the performance of my promise section number 63 they ask Theory question based on Section number 62 Novation when the contract did not be performed section number 62 as section number 63 64 restoration of benefit under the voidable contract uh any benefit received under a voidable contract by a person who is having a right to cancel it if it decides to cancel it must restore the benefit 65 in the same way restoration of benefit under which contract vo contract where an agreement is discovered to be void or it becomes vo see it is not applicable for minor agreement because minor agreement is what wide up in issue they asked practical question in the previous examination based on Section number what 65 if a contract becomes white or if it is discovered to be white then the party who has received the benefits must restore the benefits but section number 66 mode for communicating the recis of voidable contract if a contract is voidable the party can cancel it but he has to communicate the same to the other party and the communication is complete when it comes to whose knowledge other Pary knowledge and the same can be cancelled before it reaches to whom to the other person 67 if a promise fails to provide the reasonable facility for the performance of the contract then who is excused by law from performance of the contract promise because if promise he fails to provide the reasonable PR and who is discharged promiser is discharge then we have certain General topics with respect to uh performance of the contract that is discharge of contract how the contract is discharged or when the contract comes to an end first one by performance when both the party fulfill the obligation subam mustu contract coms to next one by mutual agreement 62 and 63 Novation recision remission and V Next One by impossibility of SE number 56 because agreement becomes what not required to be performed because it is excused by the law in case of unforeseen change in law destruction of subject matter non-existence or occurrence of particular thing and declaration of war the agreement becomes what it need not be performed means the contract is dis next one by operation of law that is in case of death of a party contract comes to an end unsold mind contract comes to an end next one by breach of contract if the promiser refuses to perform and if the promise resigns IT contract comes to an end by V section number 63 if a promise remit or waves the performance of the promise or extend the time or accept some satisfaction other than the promise this sh next one by merger when a contract giving the inferior rights gets merged with a contract giving a superior right which contract comes to an end contract giving the inferior Right comes to an end breach of cont section number 39 keep this in mind whenever there's a question about breach of contract you should write section number 37 as section number what 39 breach of contract can be actual breach which happens while performing the contract or on the due date of performance anticipatory before the due date called as what anticipatory breach of contract in case of breach of contract what is the remedy available to the other parties remedies available what is the first one you can f a suit for what damages compensation second one cancellation of contract third one specific performance fourth one injunction and the fifth one Quantum Merit first one damages section number 73 if they ask question about a breach of contract you should also write about section number 73 the damages available to the agreed party so what is Damages or how to write the answers for this questions when the contract has been broken when what is broken the contract has been broken the party who suffers from such breach is entitled to receive from the party who has broken the contract see keep this in mind frame the wording contract has been broken the party who suffers from such breach of contract is entitled to receive from the party who has broken the contract compensation for any loss or damage which naturally arose ordinary damages in the usual course of things from such breach are which parties knew most important to recover the special damage that losses should be aware about the The Happening of such law should be aware to whom both the parties the party should be aware about the special damages when the contract was made I repeat when the contract is broken the party who suffers from such breach entitled to receive from the party who has broken the contract compensation for any or loss or a damage which naturally arose in the usual course of things from such breach or which parties knew when they made the contract to be likely to result from the breach of such contract first one is called as ordinary damages second one is called a special damage special damages can be recovered only if it is known to both the parties no compensation is payable for any remote or indirect losses obviously for this I have discussed a case La where a girl walks in rain and she gets affected with the disease can she claim the compensation no in estimating the loss the means existed in remedying the inconvenience should be taken into consideration by the C correct right if she's traveling in a bus what is the alternative remedy available or to bik not the flight right so these are the rules of Damages types of Damages ordinary damages natural losses special damages which parties knew when the contract was made vindictive as a punishment available only in case of breach of promise to marry a girl or in case of Dishonor of check next one nominal damages namesake damages just to record the fact of breach of contract canot be recovered next one damages for deterioration any reduction in the value of the goods due to the fault of buyer or seller should be compensated next one prefixed damages where the amount of compensation payable in case of breach of contract is agreed by the parties in the contract itself it is called as what prefixed damages how many types two types what are two types LD what is LD liquidated damage second one is what penalty what is liquidated damages sir the reasonable estimate of likely loss if the parties have agreed in the contract the reasonable estimate of likely loss from the breach of contract it is called as what liquidated damages it is a genuine free estimate of the law and it can be recovered in the court of law whereas penalty is the just fix arbitrarily just fixed it randomly there is no correlation between the loss and the amount fixed and it is used to threat a person to perform the contract and it is unreasonable and cannot be recovered that is called as what penalty they ask this question in the examination difference between LD and penalty so in case of penalty section number 24 the court will award only the reasonable amount not exceeding the amounts mentioned in the contct if the parties have agreed one CR Court will not give one c as compensation it only gives a reasonable amount but what if it is loss is more than one will Court increase the money no so the court will award only the reasonable amount not in the sum mentioned in the contract the only exceptional case where the court will give the entire amount mentioned in the contract even if it is unreasonable is if the bond is given to central government or state government to perform the public duty or acts in which public are interested a person has made a promise to the government to perform a public duty and if he fails to perform in that scenario the code can order the person to pay whatever he has promised even if it is unreasonable next one agreed party can cancel the contract third one Quantum Merit what is quantum Merit as much as merited when a person has done some work but it could not complete the entire work because of the fault of other party so he can recover the money for the work he has done so where a party enjoyed by breach had at all the time of breach done part but not all the work can seek the compensation for work done so it is available in the following cases when it is available important they may ask question in the examination when the quantum Merit is available it is available where the agreement is discovered to be wide or it becomes wide if it is something in D but it is done non- gratuitously a contract to render services but no agreement for remuneration first one agreement is discovered what received any benefit you have to pay for it something done non- grously means without any intention of doing it three of cost you have to pay for it contract to render services but no agreement for remuneration then you have to pay for it next party abundance or refuses to perform the contracts then you have to pay the compensation to other party if a contract is divisible and the party not in default enjoy the benefit of the performance he has to pay for it if the contract is performed but badly performed that painting example party must compensate next one suit for specific performance when uh uh the compensation in terms of money is not the adequate remedy or when it is impossible to quantify the laws the court at its discretion May compel the promiser to perform the promise he has made it is called as what suit for specific performance it is available in case of antique goods and not available in case of minor or uh contract involving personal skill next one the last remedy available in case of breach of contract is suit for injunction in case a party is trying to avoid the contract then the agreed party can go to the court and bring an injunction to restrain the person from breaching the terms of the court so these are the remedies available in case of breach of contract section number 1 to 75 but we have not covered section number 31 to 36 that is contingent contract as well as CI contract discuss SE number 31 to 36 contingent contract what is contingent cont a contract to do or not to do something if some event collateral to such contract or does or does not happen so here the performance of a contract depends upon the happening or non happening of a collateral event so that is called as what contract contingent contract Essentials the performance of a contract should be depending upon what happening or non- happening of and some event or a condition that can be a condition precedent or condition subsequent next one event referred to should be collateral to the contract if it is a promise in the contract if it is a part of the contract it is not considered as contingent C next one contingent event must be must not be a mere will of the promis if a if it is a will of the promiser is it considered a valid contingent contract no event must be uncertain nobody should have a control over it if it is bound to happen it is not considered as a contingent call rules regarding enforcement section number 32 if a contract is contingent upon the happening of an event event happens valid does not happens or becomes impossible to happen why if a contract is contingent upon the event nonh happening if the event happens why does not happens or becomes impossible to happen valid if a contract is contingent upon the future activity of a person like fraud or something if that conduct happens valid does not happens void then contingent upon heent happening within a certain time if the event happenin the certain time valid does not happens vo non happening certain time if it does not happens valid happens why next one agreement which is contingent upon the impossible EV section number 36 if there is an agreement to do something which is contingent upon the impossible event valid or void vo not enforceable by law example to close encloses Space by drawing two parallel line is it possible not possible then section number 68 to 72 quasi contract quasi contracts are not contracts they are not made by parties but they are imposed by the law and they are imposed by the law to provide the justice and they based on Equity it is based upon the Latin Maxum called as what is the Latin Maxim neoa means nobody can enr themsel at the cost of other or others that is called as what contract quasi contract features there is only a right for what damages liquidated damages means what reasonable amount does not arise from the agreement to the parties it is imposed by the law and it a right in person means available against specific person not against the entire nation uh types we have section number 68 necessary supply to the person incapable of what contract any necessary supply to the person who is incapable of Contracting or to the person whom is legally bound to support based on this they question in the previous examination then the assets of that incapable person is liable to contribute for that that is a Justice require for example any supply of necessary items to a minor are unsound mind they are not responsible their assets are responsible next section number 69 reimbursement of person paying the money due by another in the payment of which he is interested instead of land law tenant pay the property tax can the tenant recover it from the land owner is section number 69 section number 70 obligation of the person enjoying the benefit of non-gratuitous act if a person has received any Services other person did not have the intention of rendering that service at free of cost then whoever has received the benefit of the services must pay for it section number 17 section number 71 responsibility of finder of lost Goods the finder of L Goods is considered as what daily he supposed to return return the goods back and section number 71 they cannot keep it quas because nobody can en themsel at the cost of other section number 71 money paid by mistake any money paid by mistake are under the coer can the person keep it no if some money is transferred to your account by mistake can you utilize it no it is not your money nobody can enr themsel at the cost of other person you must transfer that contract four contract sorry five contract 68 necessary supplied 69 payment by the interested other than the one who is legally bound to pay 70 non-rs act 71 finder of lost goods and 72 money paid by mistake are under coercion so whatever discussed in this video is only a rapid revision of provisions of the section number 1 to 75 of Indian contract act 1872 we have discussed all these things in class in detail with the help of many examination so this video will help you guys to recall the provisions one day before the exams or 10 days before the examination without wasting much of your time for special contracts I have made a separate videos and I've already uploaded them in the YouTube you guys can go through it which might help you guys in the preparations for examinations

Channel: csrajesh csr

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Id: r0FDh6iU_Tg

Length: 145min 9sec (8709 seconds)

Published: Mon Jun 03 2024