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  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act by Avijit Tiwari
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act by Avijit Tiwari
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act
  • Indian Contract Act by Avijit Tiwari

Indian contract act 1972 Indian contract act 1972 Presentation Transcript

  • Indian Contract Act
    • Section 1: Short Title
    • Extent, Commencement. -It extends to the whole of India [except the State of Jammu and Kashmir]; and it shall come into force on the first day of September 1872.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
  • Indian Contract Act
    • Section 1 to 75 : Deals with General Principles of contracts.
    • Section 124 to 238 : deals withSpecific kinds of contracts only.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Indian Contract Act
    • Definition of a contract: Sec. 2(h) :
    • " An agreement enforceable by law is a contract.”
    • Flow of the definition:
    • Contract  Agreement  Promise 
    • Accepted proposal  Proposal/offer.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
  • Section 2 Section 2a: Defines Proposal. Section 2b: Defines Promise. Section 2c: Defines Promisor & Promisee. Section 2d: Defines Consideration. Section 2e: Defines Agreement. Section 2i: Defines Voidable Contracts . Section 2h: Defines Contract. Section 2g: Defines Void agreement. Section 2f: Defines Reciprocal Promises. Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Definition Of a Proposal: Sec. 2(a)
    • When one person, signifies to another, his willingness to do or to abstain from doing anything,
    • with a view to obtaining the assent of the other to such act or abstinence,
    • he is said to have made a proposal .
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
  • Intention to create legal relationship. Unambiguous Terms. Communication. Express the final willingness. Specific Person or class or persons. Express or Implied. Positive or Negative. Legal Rules for Valid Proposal. Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rules of a valid Proposal Sec. 2(a):
    • It may be express or implied.
    • It must contemplate to give rise to legal relationship.
    • Terms must be certain.
    • It may be specific or general.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rules of a valid Proposal- Sec 2(a) : (cont.)
    • Invitation to offer is not an offer.
    • Offer must be communicated
    • Special terms must be communicated in a special manner
    • Offer should not contain a term the non-compliance of which would amount to acceptance.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Definition Of Acceptance: Sec. 2(b)
    • When a person to whom the offer is made, signifies his assent thereto, the offer is said to be accepted.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
      • Absolute or unconditional.
    2. Usual and reasonable mode. 3. Within the reasonable time. 4. Cannot precede an offer. 5.Before Lapse or Revocation of an offer. 6. By an ascertained person. 7. Fulfil Promise. 8. Express or Implied. 9. Acceptance of all terms. 10. Not implied from silence. Essentials and legal rules of Valid Acceptance. Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rules of a valid Acceptance (sec 2b) Cont:
    • The person to whom the offer is made must give it.
    • It must be absolute and unqualified.
    • Acceptance must show to fulfill a promise.
    • Acceptance of offer means, acceptance of all terms attached to that offer.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rules of a valid Acceptance Sec. 2(b) (Cont.):
    • Mental acceptance is ineffectual.
    • It must be expressed in the prescribed manner or in some usual manner.
    • It must be given within a reasonable time.
    • It must succeed the offer.
    • Acceptance must be made before the lapse of an offer.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • 'Every contract is an agreement but every agreement may not be a contract'
      • . Lawful Consideration.
      • . Legal Formalities.
      • . Legal Relations.
      • . Certainty of performance.
      • . Agreement not declared void.
      • . Free and genuine Consent.
      • . Capacities of parties.
      • . Agreement.
    Essentials of a Valid Contract. Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Essentials of a valid Contract (Section 10) :
    • Agreement
    • Intention to create legal relationship
    • Lawful consideration
    • Capacity of the parties
    • Free consent
    • Lawful object
    • Certainty of terms
    • Possibility of performance
    • Writing and registration
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
  • Kinds of Agreements Void Valid Agreement Invalid Agreement Unenforceable Voidable Illegal Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Consideration: Sec. 2 (d)
    • When,
    • at the desire of the promisor, the promisee or any other person;
    • has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something,
    • such act or abstinence or promise is called as Consideration for the promise.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Essentials of valid consideration (sec 2d) cont :
        • Consideration must move at the desire of the promisor
        • Consideration may move from the promisee or any other person
        • It may be past, present or future
        • It must be something of value
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Exceptions to the rule
    • No consideration no contract:
    • Agreement made on account of natural love and affection
    • Agreement to compensate for past acts
    • Agreement to pay a time barred debt
    • Completed gift
    • Contribution to charity
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Competency of parties to a contract:
    • Sec.10 states:
    • “ Essential ingredient of a valid contract is that the contracting parties must be competent”
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Competency of parties to a contract (cont.):
    • Sec 11 says:
    • “ Every person is competent to contract;
    • who is of age of majority according to the law to which he is subject,
    • and who is of sound mind,
    • and is not disqualified from contracting by any law to which he is subject”
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Who is a Minor?
    • As per Indian Majority Act:
    • a person below age of eighteen years under normal circumstances
    • and
    • a person below age of twenty one years in case of a guardian being appointed for his person or property
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Effects of agreement with or by a minor
    • Usually it is Void – ab - initio (absolutely void and inoperative)
    • No ratification on attaining age of majority
    • No estoppel against a minor
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Effects of agreement with or by a minor
    • Minor is however responsible for necessaries provided to him during his minority
    • Minor can be admitted to benefits of partnership
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Cont.
    • Beneficial agreements are valid
    • minor is eligible to get benefits but can not be responsible towards liabilities
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Sound mind: Sec. 12 :
    • “ A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effects on his interests”
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Disqualified from contracting :
        • Alien enemies
        • Foreign sovereigns
        • Convicts
        • Insolvent
        • As per any other law applicable
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Consent = consensus ad-idem
    • i.e. 'Agreeing upon the same thing in the same sense'
    • Free Consent: Section 14--
    • Consent is said to be free when it NOT caused by any one of the following
    • Coercion . Undue influence
    • Misrepresentation . Fraud
    • Mistake
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Coercion: (Sec 15)
    • " It is
    • a) Committing or threatening to commit, any act forbidden by Indian Penal Code, or
    • b) unlawful detaining or threatening to detain any property,
    • to the prejudice of any person whatever,
    •   with the intention of causing any person to enter into an agreement"
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Coercion: (Sec 15) cont.
    •   
    • Effect of Coercion :
    •   Contract is voidable at the option of the party whose consent was so obtained
    •   Burden of proof that coercion was used lies on the aggrieved party .
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Undue Influence: Sec 16(1)
    • "A contract is said to be induced by undue influence where,
    • the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other, and
    • ii)he uses the position to obtain an unfair advantage over the other." 
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Undue Influence: Sec 16(1) cont.
    • Effects of Undue influence
    •   Agreement is voidable at the option of the party whose consent is so caused
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Undue Influence (Sec 16-1) cont.
    • In a position to dominate the will of the
    • other means:
    •   a) W here he holds a real or apparent authority over the other, for eg. master & servant, judge and the accused, doctor and a patient etc.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • In a position to dominate the will of the other means:
    • b)   where he stands in a fiduciary relation to the other
    • (fiduciary relation = relation of mutual trust and confidence) eg. Father & son, Guru & disciple
    • c) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Misrepresentation: Sec 18 —
    •   "It means and includes-
    • a) the positive assertion in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true:
    •   or
    •   b) any breach of duty, which without any intent to deceive, gains an advantage to the person committing it, by misleading other person to his prejudice
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Misrepresentation (Sec 18) cont.
    • or
    •   c) causing, however innocently, a party, to make a mistake as to the substance of the thing which is the subject of the agreement
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Fraud: Sec 17—
    •  
    • It means and includes any of the following acts committed by a party to the contract—
    • i)The suggestion that a fact is true when it is not true, by the one who does not believe it to be true
    • ii)The active concealment of a fact by a person who has knowledge or belief of the fact
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Fraud: (Sec 17) cont.
    • iii)A promise made without any intention of performing it
    • iv)Any other act fitted to deceive
    •   v)Any such act or omission as the law specially declares to be fraudulent
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Representation :
    •  
    • statement of fact made by one party to another
    •   either before or at the time of contract
    • relating to some matter essential to the formation of the contract
    •   with an intention to induce the party to enter into the contract
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • An innocent wrong statement
    • = Misrepresentation
    •   
    • A deliberate or intentional statement to deceive the other = Fraud
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Effects of Misrepresentation
    •  
    • The aggrieved party has two options
    • He can rescind the contract, treating it as voidable
    • 2.   He may affirm the contract and insist that he shall be put in a position in which he would have been, if the statement was true.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Effects of Fraud:
    • The aggrieved party has three remedies
    • 1.   He can rescind (set aside) the contract, treating it as voidable
    • 2.   He may affirm the contract and insist that he shall be put in a position in which he would have been, if the statement were true.
    •  
    • 3. He can also sue for damages, if any, because fraud is a civil wrong and hence compensation is payable
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Mistake= erroneous belief concerning something
    •   Mistake can be of Law Or of Fact
    • Mistake of law
    •   |
    • | |
        • Mistake of Law Mistake of law
    • of the country of foreign country
    • Mistake of Fact
    • |
    • | |
    • Bilateral Unilateral
    • Mistake Mistake
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Mistake of law of one's own country is no excuse.
    • Mistake of foreign law however stands on the same
    • footing as mistake of fact
    • Bilateral mistake =
    • a) Both parties to an agreement misunderstood each other and are at cross purposes
    •  
    • b)  Mistake relates to a fact and not to judgment or opinion etc.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Bilateral mistake :
    • 1. Mistake as to the existence of the subject matter of the agreement
    • Effect: (agreement void)
    • 2. Mistake as to the identity of the subject matter
    • Effect: (agreement void)
    •  
    • 3. Mistake as to the title of the subject matter
    • Effect: (void ab-initio)
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Bilateral mistake cont. :
    • 4. Mistake as to the quantity of the subject matter
    •  
    • Effect: (agreement void)
    •  
    • 5. Mistake as to the quality of the subject matter
    • Effect: (agreement void)
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Unilateral Mistake :
    •  
    • only one of the contracting parties is mistaken as to a fact material to the contract
    •   
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Effect of Unilateral Mistake:
    •  
    • Contract remains valid unless caused by misrepresentation or fraud.
    • Where the mistake is caused by misrepresentation or fraud the contract becomes voidable at the option of the aggrieved party.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Cases where agreement does not give rise to any
    • contract in spite of a unilateral mistake:
    • 1. Mistake as to the identity of the person contracted with, where such identity is important
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • 2. Mistake as to nature and character of the written document.
    •  
    • Reason for these two exceptions is that the mistake is so fundamental as to go to the roots of the agreement
    By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta Department of Business Administration, University of Lucknow
    •   Discharge of contract
    • by performance- actual or attempted (tender)
    • by mutual consent or agreement
    • by supervening impossibility
    • by lapse of time
    • by operation of law
    • by breach of contract
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Essentials of a valid tender :
    • 1.    It must be unconditional
    • 2.   At a proper time and place
    • 3.  Mu st be of the whole obligation contracted for
    • 4. Must give a reasonable opportunity to the promisee for inspection of goods
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Essentials of a valid tender :
    • 1. Must be made to the proper person
    • 2. M ust be made by a person who is in a position and is willing to perform
    • 3.   In case of money, the exact amount should be tendered
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Refusal to accept a properly made ‘Tender’ :
    • The contract is deemed to have been performed by the tenderer (promisor).
    • A suit for breach can lie against the promisee.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Modes of discharge by Mutual consent –
    •   • Novation
    •   • Alteration
    •   • Rescission
    •   • Remission
    •   • Waiver
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Cases where doctrine of supervening
    • impossibility applies---
    •  
    • • Destruction of subject matter
    •  
    • • Failure of ultimate purpose
    • • Death or personal incapacity of the Promisor
    •  
    • • Change of law
    •  
    • • Outbreak of war
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Discharge by operation of law –
    •  
    • • Death of any of the parties
    •   • Insolvency
    •   • Merger of rights
    •   • Unauthorized material alteration
    •  
    •  
    • Discharge by Breach of contract - -
    • Actual
    •  
    • Anticipatory
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Remedies for Breach of contract :
    •  
    • • Rescission of the contract
    • • Suit for damages
    • • Suit upon quantum meruit
    • • Suit for specific performance
    • • Suit for injunction
    •  
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Remedies for Breach of contract :
    •  
    • • Rescission of the contract when not available:
      • when owing to change in circumstances parties can’t be put in original position
      • Where third party has acquired rights for value
      • Where only part of contract is rescinded and contract is not severable
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Remedies for Breach of contract :
    •  
    • • Specific performance not allowed:
    • where damages is adequate
    • contract of personal volition
    • impossible to supervise
    • contract ultra-vires
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Remedies for Breach of contract :
    •  
    • • Quantum Meruit arises when:
    • A contract is subsequently discovered to be void for some technical reasons
      • a person rendering goods or services has not done so gratuitously
      • when there is no contract as to remuneration for work rendered, a reasonable amount is to be paid
    •  
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Damages
    • are decided based on remoteness of consequences
    • only for loss actually suffered
    • Also for inconvenience suffered or loss of reputation
    • aggrieved party should try to mitigate loss
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Different kinds of damages :
    • Ordinary or general or compensatory damages
    • Special damages (i.e. damages in contemplation of the parties at the time of the contract)
    • Exemplary, punitive or vindictive damages
    • Nominal damages
    • Liquidated
    • Penalty
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Quasi Contracts :
    • 1. Claim for necessaries supplied to a person incapable of contracting
    • 2. Reimbursement to a person paying money due by another in payment of which he is interested
    • 3. Responsibility of finder of goods
    • 4. liability of a person to whom money is paid or things delivered by mistake or under coercion
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Contract of Indemnity :
    • It is a contract by which one person promises to save the other from any loss caused to him by the conduct of the promisor himself or by conduct of any other person.
    • Indemnity holder or indemnified = one protected
    • Indemnfier = one who gives protwection
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rights of indemnified :
    • Can recover all damages
    • All costs which he may be compelled to pay in any
    • Suit
    • Rights of Indemnifier :
    • Right of Subrogation
    • Most other rights of a suerty
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Contract of Guarantee :
    • Three parties
    • Contract of surety is independent of one with principal debtor
    • Contract between creditor and surety is fiduciary – creditor should disclose everything material
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Types of Contract of Guarantee :
    • Oral or Written
    • Specific and Continuing (specific = irrevocable, continuing = can be revoked for further transactions)
    • Whole or partial debt
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rights and obligations of creditor :
    • Demand payment from surety
    • If surety insolvent proceed against him too
    • Not to change terms of contract
    • Not to release principal debtor
    • No extension or other facility to be given to principal debtor
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Rights of Surety :
    • Against principal debtor.
      • Right of subrogation
    • Right s against co-sureties.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Discharge of Surety :
    • By notice of revocation
    • By death of surety
    • By variance in terms of contract
    • By release of principal debtor
    • By loss of security
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Contract of Bailment and Pledge
    • Section 148 of ICA 1872 defines bailment as:
    • “ The delivery of goods by one person to another for some purpose, upon a contract, that they shall, when the purpose is accomplished, be return or otherwise disposed of according to the direction of the person delivering them”
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Bailor:
    • The person delivering the goods is called asd bailor.
    • Bailee:
    • The person to whom the goods are to be delivered is called the bailee.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
      • . Possession of goods must change
      • . Delivery of goods..
      • . Bailment with goods.
      • . Return of specific goods.
      • . Ownership not changed.
      • . Some purpose
      • . Contract.
    Essential of Bailments Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Classification of contracts.
    • 1. Validity or enforceability.
    • 2. Mode of formation.
    • 3. Performance.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Classification according to validity.
    • Valid : Contract must have all the essential elements.
    • Voidable: Agreement enforceable by law at the option of one or more parties there to, but not at the option of the other or others. Section 2(i).
    • Void Contracts or agreements : Not enforceable by law. Section 2(g).
    • Illegal
    • Unenforceable: Cannot be enforced because of technical defects.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Classification by: Mode of formation
    • Express Contract : Express by word spoken or written.
    • Implied Contract : Inferred from the circumstances.
    • Quasi Contract : Obligation imposed by the law
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta
    • Classification by: Performance
    • Executed Contract : Wholly performed by both the parties.
    • Executory Contract : Promises of both the parties are yet to be performed.
    Department of Business Administration, University of Lucknow By: Avijit Tiwari, Devesh Chandra, Abhishek Gupta, Harshit Batham, Narendra Pandey, Shwetanshu Gupta