Indian Contract Act, 1872 & Specific Relief Act,
1963
Exam-Focused Skeleton Notes (LLB 1st Semester)
Unit 1: Introduction & Essentials of a Contract
- Definition of Contract (Sec. 2(h))
- Agreement vs. Contract
- Essentials (Sec. 10): Offer, Acceptance, Legal relations, Consideration, Capacity, Free consent,
Lawful object, Certainty, Possibility, Not void
- Case: Balfour v. Balfour (no legal intent in social agreements)
Unit 2: Offer & Acceptance
- Offer (Sec. 2(a)) – definition, essentials
- Types: General vs. Specific; Express vs. Implied
- Invitation to Offer (e.g., display of goods)
- Acceptance (Sec. 2(b)) – definition, essentials
- Rules: absolute, unconditional, communicated, postal rule (Sec. 4)
- Cases: Carlill v. Carbolic Smoke Ball Co., Adams v. Lindsell
Unit 3: Consideration
- Definition (Sec. 2(d)) – price of promise
- Essentials: promisor’s desire, may move from 3rd party, lawful, need not be adequate
- Types: Past, Present, Future
- Exceptions (Sec. 25): natural love & affection, past voluntary service, time-barred debt, completed
gifts
- Case: Chinnaya v. Ramayya
Unit 4: Capacity of Parties
- Competent parties (Sec. 11): Major, sound mind, not disqualified
- Minor’s contract: void ab initio
- Effects: minor not personally liable, but property liable for necessaries (Sec. 68)
- Unsound mind – incapable of rational judgment
- Case: Mohori Bibi v. Dharmodas Ghose
Unit 5: Free Consent
- Consent (Sec. 13), Free Consent (Sec. 14)
- Factors vitiating consent: Coercion (Sec. 15), Undue Influence (Sec. 16), Fraud (Sec. 17),
Misrepresentation (Sec. 18), Mistake (Sec. 20–22)
- Effect: contract voidable
- Cases: Ranganayakamma v. Alwar Setti, Derry v. Peek
Unit 6: Void, Voidable, Wagering & Quasi Contracts
- Void agreement (Sec. 2(g)), Voidable (Sec. 2(i))
- Wagering agreements (Sec. 30) – void
- Difference: Void vs Voidable
- Quasi contracts (Sec. 68–72): necessaries to minor, payment by interested person, finder of
goods, payment by mistake/coercion
- Case: State of West Bengal v. B.K. Mondal
Unit 7: Performance, Discharge & Remedies
- Performance (Sec. 37–50): who can demand performance, joint promises, reciprocal promises
- Discharge of contract: performance, mutual agreement, impossibility, breach, operation of law
- Doctrine of Frustration (Sec. 56) – Taylor v. Caldwell, Satyabrata Ghose v. Mugneeram
- Remedies for breach: damages (Hadley v. Baxendale), specific performance, injunction, quantum
meruit
- Liquidated vs Unliquidated damages (Sec. 74)
Unit 8: Specific Relief Act, 1963
- Relief by actual performance instead of damages
- Specific performance – when granted/not granted
- Preventive relief – Injunction (temporary, perpetual, mandatory)
- Declaratory suits
- Discretionary power of courts
- Contracts specifically enforceable – including trust property provisions