From previous PPT: The Act defines a contract as “an agreement enforceable by law.” Hence, to become a contract, an agreement must have the following essential elements: 1. Proposal 2. Acceptance 3. Lawful consideration 4. Capacity of parties 5. Free and genuine consent 6. Lawful object 7. Not a contract expressly declared to be void 8. Compliance with legal formalities Void Contract: Ex: Contract between countries at war Contract between drug dealers and buyers Voidable Contract:
Implied Contract Ex: Getting into a bus implies fair will be paid; Eating in a hotel implies bill will be paid Quasi Contract Ex: Tradesman leaves goods at C’s house and C treats the goods as his own, then C is said to be enriched unjustly.
Group 13 Narendra Reddy Yaddula Sachin Rane Soumen Sarkar Suman Surendranath Murmu Rohan Mishra Classification of Contracts & Remedies for Breach of Contract
The contract has been discharged due to default of defendant
Example (a) P agreed to write a volume on ancient armour to be published in a magazine owned by C. For this, P was to receive 100 pounds on completion. When P had completed part of the work, but not the whole, C abandoned the magazine. P was held entitled to get damages for breach of contract and payment quantum meruit for the part already completed (Planche vs Colburn).
Example (b) A, engages B, a contractor, to build a three storied house. After a part of the house is constructed, A prevents B from working any more. B, the contractor, is entitled to get reasonable compensation for work done under the doctrine of quantum meruit in addition to the damages for breach of contract.
The claim is in addition to that for damages for breach of contract
(a) C was appointed as managing director of a company by the board of directors under a written contract, which provided for his remuneration. The contract was found void because the directors who constituted the ‘Board’ were not qualified to make the appointment. C, nevertheless, purporting to act under the agreement, rendered services to the company and sued for the sums specified in the agreement, or, alternatively, for a reasonable remuneration on a quantum meruit. Held, C could recover on a quantum meruit. (Craven‐Ellis vs Canons Ltd. ).
(b) A contracts with B to repair B’s house at a piece rate. After a part of the repairs were carried out, the house is destroyed by lightning. Although the contract becomes void and stands discharged because of destruction of the house, A can claim payment for the work done on ‘quantum meruit’.
Quantum Meruit : Non gratuitous act leading to benefit
When goods/services or both are provided without intention of gratuity
And the benefits of these are enjoyed by another party
(a) A, a trader, leaves certain goods at B’s house by mistake. B treats the goods as his own. He is bound to pay A for them.
(b) Where A ploughed the field of B with a tractor to the satisfaction of B in B’s presence, it was held that A was entitled to payment as the work was not intended to be gratuitous and the other party has enjoyed the benefit of the same. (Ram Krishna vs Rangoobed).
Injunction: Order of the court restraining a person from doing a particular act
Mode of securing specific performance of negative terms of contract (a party can be in breach of negative terms of contract)
(a) A, agreed to sing at B’s theatre for three months from 1st April and to sing for no one else during that period. Subsequently she contracted to sing at C’s theatre and refused to sing at B’s theatre. On a suit by B, the court refused to order specific performance of her positive engagement to sing at the plaintiff’s theatre, but granted an injunction restraining A from singing elsewhere and awarded damages to B to compensate him for the loss caused by A’s refusal. (Lumley vs Wagnerl)
(b) G agreed to take the whole of his supply of electricity from a certain company. The agreement was held to import a negative promise that he would take none from elsewhere. He was, therefore, restrained by an injunction from buying electricity from any other company. (Metropolitan Electric Supply Company vs Ginder).