General offer vs specific offer, CArlill vs Carbolic case, The lal man shukla case, Section 13, 14, 15, 16, Flaws in contract

1. Legal Aspects of Business
Contract Act

2. Legality of Domestic
Contracts
• A Domestic Promise between Husband and Wife is not a Legal Contract
• Balfour vs. Balfour
• Blunder by the Lower Court
• Set right by Justice Atkin later
• The agreement was outside the realm of contracts altogether
• There must be an intention to create a legal relation in such cases
• There must be a bargain enforcable in law

3. General Offer vs Specific Offer
A general offer is one that is made to the public at large. It is not made any specified
parties. So any member of the public can accept the offer and be entitled to the
rewards/consideration.
General Offer
Specific Offer
A specific offer, on the other hand, is only made to specific parties, and so only they can
accept the said offer or proposal. They are also sometimes known as special offers.

4. Carlill vs. Carbolic Smoke Ball case
• The defendant company that is Carbolic Smoke Ball Co. was a London based
company
• On November 13th, 1891 they placed an advertisement in several newspapers
stating that their product “The Carbolic Smoke Ball”, if used three times daily for two
weeks then that person would not be affected by colds and influenza
• The company additionally offered to pay 100£ as reward if anyone caught influenza
using their product
• Lili Carlill, the plaintiff had bought this smoke ball and used it as directed by the
company. Few weeks later, she caught flu
Defendant's Contention Vs Plantiff's Contention
DECISION:
The court unanimously dismissed the appeal made by defendants and Mrs. Carlill received the
compensation of £100.

5. The Lal Man Shukla Case
The case-
• The nephew of the defendant secretly departed from his home and no one was
able to find him
• The plaintiff acted as the protector of the firm and was sent to Haridwar to find the
nephew
• Meanwhile the defendant rolled out handbills citing a reward of Rs 501 for anyone
who finds his nephew
• The plaintiff found the nephew and brought him back to Cawnpore and got a
reward of 2 sovereigns and 20 Rs as reward
• Later the plaintiff claimed Rs 499 as the reward and said that the defendant did not
give the promised reward
Concepts involved-
• General offfer
• When communication of general offer is completed
• Acceptance

6. • Section 13 "Consent “- Two or more persons are said to consent
when they agree upon the same thing in the same sense.
• Section 14 "Free consent “- Consent is said to be free when it is
not caused by-
Section 13 & 14

7. • "Coercion" is the committing, or threatening to
commit, any act forbidden by the Indian Penal
Code (45 of 1860) or the 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.
• Voidable at the option of the party whose
consent was so obtained
"Coercion" SECTION 15

8. • 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 uses that position to obtain an
unfair advantage over the other.
• The burden of proof lies upon the person who
is in a position to dominate the will of the other.
‘Undue influence’ SECTION 16

9. Flaws in Contract
Law
• One-sided agreements
• Overstuffed clauses
• Ignored Legalities
• Forgotten Updates
• Bad Writing
• Mistakes Under Indian Contract Act 1872
• Mistake of Law
• Mistake of Fact

10. • An illegal agreement in business law is a contract that was
made for an illegal reason and is consequently against the law.
• Every illegal agreement is unlawful but not all the unlawful
agreements are illegal.
• Money paid under illegal contract can’t be recovered
• Eg: Selling fire arms to one who doesn’t have a license to hold
one.
• A contract which is otherwise legal might also become illegal if
its subject matter is to be used for illegal purpose.
• Eg: Selling fire arms to a licensed person knowing that he will
kill someone
Illegal Agreements

11. Thank You
Sources: Legal services of India
Wikipedia, indiacode.nic.in