l l i i n n g g K K i i n n d d e e r r s s l l e e y y ( ( I I n n d d i i a a ) ) P P v v t t . . L L t t d d . .
Chapter 1
Chapter 1
The Indian Contract Act 1872:
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
A and B of Srinagar entered into a contract on 1
September 2006 as per the provisions of the Indian Contract Act. Can they enforce the contract?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
No they cannot enforce contract
Indian Contract Act is applicable to whole of India except to the state of Jammu & Kashmir.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
A promises to deliver his watch to B and, in
return, B promises to pay a sum of Rs. 2,000. Is it an agreement or a contract?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
It is a contract. A offers while B accepts offer by agreeing to
deliver his watch. Rs. 2,000 and watch are consideration. Thus, all elements of valid contracts are present.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
A promised to pay his son B a sum of Rs. 1
lakh if B passed C.A. exams in the first attempt. B passed the examination at first attempt but A failed to pay the amount as promised. B files a suit for recovery of the amount. State whether B can recover the amount under the Indian Contract Act, 1872.
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
B cannot recover anything from A.
Promise by A is not with an intention to create
legal relation. Social agreement is created. Social agreement is not enforceable.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Salman promises to Katrina to give real pearl
necklace at the time of his marriage. Salman fails to give it at the time of marriage. Can Katrina complain about non-fulfillment of promise against Salman at any court?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
Katrina cannot complain in any court.
Promise by Salman is not with an intention to
create legal relation. Social agreement is created but is not enforceable.
C o p y r i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
State with reason in brief, whether any contract is made
in following cases:
You have invited your business partner for launch. When you eat meals at restaurant.
When you board a public bus.
When you call a taxi on telephone.
When you put an coin in the slot of weighing
The Indian Contract Act
1872: Nature and Kind of
Contracts
C o p y r i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
No contract made: Invitation for launch is social
agreement. Intention to create legal relation is missing.
Yes contract is made: Order for meal is offer
while serving meal is an acceptance. It is agreement with all elements of contract.
Yes contract is made: You agree to pay to bus
company for taking you at the agreed stop or place. It is enforceable agreement.
Yes contract is made: You agree to hire service
from taxi company. It is acceptance to your offer to pay money to taxi company. It is enforceable
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
A, a tradesman, left certain goods at B’s
house by mistake B treated and used the goods as his own. Can trade men recover money of goods used by B?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
Yes trade man can recover money of goods from B. When B treated and used the goods of his own in
spite of having knowledge that it does not belong to him, he has given acceptance. Thereby valid contract is made.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Mohan agrees to pay Sohandada Rs. 50,000
to kill business competitor. Mohan has borrowed this money from his friend but now refuse to pay back. Can his friend claim it by approaching court? Would your answer be different in any manner if his friend do not have knowledge about purpose of borrowing?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
His friend cannot recover the money provided if
he has knowledge about purpose of use of fund. Contract to be valid must have lawful object.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
A agrees to sell his DVD player to B promising to
deliver it on the date of payment. B promises to pay the amount with one month. What kind of contract it is?
The Indian Contract Act
1872: Nature and Kind of
Contracts
l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
Case Analysis
It is bilateral contract. In bilateral contract, both the parties
exchange a promise to each other to be performed within a stipulated time.
i g h t © 2 0 1 2 D o r l i n g K i n d e r s l e y ( I n d i a ) P v t . L t d .
