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Aston
Gujarat National
Law University
Gandhinagar, Gujarat (India)
Course Outline
of
Law of Contracts-I
(General Principles of Contract and Specific Reliefs)
For
BA/BCom/BSc/BBA/BSW, LLB
Semester: II (UG)
Faculty:
Dr. Joshua N. Aston
Assistant Professor of Law
Gujarat National Law University, Gandhinagar
Email: jaston@gnlu.ac.in
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Sl. Page
Contents
No. No.
1.0 Objectives of the course 3
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
The conferment and protection by the law of this contract making power of persons
gives them a considerable leeway to strike the best bargain for themselves. In a way,
they are permitted to regulate and define their relations in the best possible manner
they choose. In India, these general principles are statutized in the form of the Indian
Contract Act 1872.
This course is designed to acquaint a student with the conceptual and operational
parameters of these general principles of contractual relations.
Specific reliefs, such as, specific performance of a contract, injunction, etc, are also
important aspects of the law of contracts. Therefore, the study of these reliefs also
forms a significant segment of this course.
STATUTES TO BE STUDIED:
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
No. of
Module
Modules Sessions
No.
(Classes)
II.1.1 Formation of Contracts (Ss 1-9) 07
II.1.2 Consideration (Ss 2,10,25) 04
II.1.3 Capacity (Ss 11 & 12 ) 03
II.1.4 Consent (Ss 13 – 22) 08
II.1.5 Legality of Object (Void Agreements) (Ss 08
23 – 30)
II.1.6 Contingent Contracts (Ss 31 – 36) 01
II.1.7 Performance and Discharge of Contracts 08
(Ss 37– 67)
II.1.8 Quasi Contracts (Ss 68 – 72) 02
II.1.9 Consequences of Breach of Contracts (Ss 04
73 – 75)
II.1.10 Specific Relief Act 1963 (Ss 1 – 42) 08
II.1.11 E-Contracts and Government Contracts 02
Total =
____55____
Law of Contracts I
(General Principals of Contract and Specific Reliefs)
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Proposal/ Offer
Intention to contract
Kinds of offer
Invitation to offer
Kinds of agreement
Kinds of contract
Acceptance
o Communication
o Modes of communication
o Absolute and unqualified
o Lapse of offer
o Revocation of acceptance
Promissory estoppels
Standard form contract
Cases
Upton Rural District Council v Powell (1942) 1 All ER 220.
Lalman Shukla v Gauri Datt (1913) 11 All LJ 489 at p.492.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Cases
Durga Prasad v Baldeo (1880) 3 All 221.
Kedar Nath v Gorie Mohamed 1886 ILR 14 Cal 64.
Doraswami Iyer v Arunachala Ayyar AIR 1936 Mad 135.
Abdul Aziz v Masum Ali AIR 1914 All 22.
Errington v Errington (1952) 1 KB 290.
Chinnaya v Venkataramayya (1882) 4 Mad 137.
Dutton v Poole Court of King’s Bench (1677) 2 Levinz 210: 83 ER
523.
Tweddle v Atkinson 123 ER 762: 30 LJ QB 218.
Dunlop Pneumatic Tyre Co v Selfridge & Co (1915) AC 847.
Jamna Das v Ram Autar (1911) 39 IA 7: ILR 34 All 63.
Krishna Lal v Promila Bala AIR 1928 Cal 518.
MC Chacko v State Bank of Travancore AIR 1970 SC 504.
Beswick v Beswick (1966) 3 All ER 1.
Khwaja Mohammad Khan v Hussaini Begum (1910) 37 IA 152.
Rana Uma Nath Baksh Singh v Jung Bahadur AIR 1938 PC 245.
Gregory & Parker v Williams (1817) 3 Mer 582: 36 ER 224.
Daropti v Jaspat Rai (1905) PR 171 (Punjab Rec).
Sunderaja Aiyangar v Lakshmiammal (1915) 38 Mad 788.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Minor
o Effect of minor’s agreement
o Beneficial agreements
o Ratification
o Liabilities for necessaries
Position of persons of unsound mind
Legal disqualification, viz section 136 of Transfer of Property Act,
section 75 of the Indian Forests Act,
Contract making power of Companies, Corporations, Partnership firms,
Trusts, Cooperative Societies, Government and the like
Distinction between competency and authority
Cases
Mohori Bibi v Dharmodas Ghose (1903) 30 IA 114: 30 Cal 539.
Arumugan v Duraisinga ILR (1914) 37 Mad 38.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Cases
Chikham Ammiraju v Chikham Seshamma ILR (1918) 41 Mad 33.
Ranganayakamma v Alwar Setti ILR (1889) 13 Mad 214.
Workmen of Appin Tea Estate v Industrial Tribunal AIR 1966
Assam 115.
Krishan Lal Kalra v New Delhi Municipal Corporation AIR 2001
Delhi 402.
Andhra Sugars Ltd v State of Andhra Pradesh AIR 1968 SC 599.
Mannu Singh v Umadat Pande (1890) 12 All 523.
Phillip Lukka v Franciscan Association AIR 1987 Ker 204.
Allcard v Skinner (1887) 36 Ch D 145.
Niko Devi v Kirpa AIR 1989 HP 51.
Takri Devi v Rama Dogra AIR 1984 HP 11.
Lakshmi Amma v Telengala Narayana Bhatta AIR 1970 SC 1367.
Wajid Khan v Raja Ewaj Ali Khan ILR (1891) 18 IA 144.
Mst Kharbuja Kuer v Jang Bahadur Rai AIR 1963 SC 1203.
Raghunath Prasad v Sarju Prasad AIR 1924 PC 60.
Shrimati v Sudhakar R Bhatkar AIR 1988 Bom 122.
Lloyds Bank v Bundy (1975) 1 QB 326.
Edgington v Fitzmaurice (1885) 29 Ch D 459.
V Srinivasa Pillai v LIC of India AIR 1977 SC 381.
P Sarojam v LIC of India AIR 1986 Ker 201.
Kiran Bala v Bhaire Prasad Srivastava AIR 1982 MP 242.
With v O’Flanagan (1936) 1 All ER 727.
Shri Krishan v Kurukshetra University AIR 1976 SC 376.
Delhi Development Authority v Skipper Construction Co (P) Ltd
(2000) 10 SCC 130.
Derry v Peek (1889) 14 App Cas 337.
Bindu Sharma v Ram Prakash Sharma AIR 1997 All 429.
Attwood v Small (1838) 6 C&F 232.
Peek v Gurney (1873) LR 6 HL 377.
Derry v Peek (1889) 14 App Cas 337.
Oriental Bank Corporation v John Fleming (1879) 3 Bom 242.
Shoshi Mohun Pal Chaudhary v Nobo Krishto Poddar (1874) 5 Cal
801.
Car and Universal Finance Co Ltd v Caldwell (1961) 1 QB 525.
Long v Lloyd (1958) 1 WLR 753.
Wallis v Pratt (1911) AC 394.
Phillips v Brooks Ltd (1919) 2 KB 243.
Allcard v Skinner (1887) 36 Ch D 145.
Leaf v International Galleries (1950) 2 KB 86.
Raffles v Wichelhaus (1864) 2 H&C 906—the Peerless Case.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Unlawful Agreements
o What objects and considerations are lawful
Void Agreements
o Without Consideration (S 25)
o In Restraint of Marriage (S 26 )
o In Restraint of Trade (S 27 )
o In Restraint of Legal Proceedings (S 28 )
o Uncertain Agreements (S 29 )
o Wagering Agreements (S 30)
Cases
Brij Mohan v MPSRTC AIR 1987 SC 29.
Nandlal v Thomas J William, 171 IC 948.
Sujan Singh v Mohkam Chand AIR 1983 P&H 180.
Sundara Gownder v Balachandran AIR 1990 Ker 324.
Ram Sewak v Ram Charan AIR 1982 All 177.
Fateh Singh v Sanwal Singh (1878) 1 All 751.
Bai Vijli v Nansa Nagar (1885) 10 Bom 152.
Pyare Mohan v Narayani AIR 1982 Raj 43.
Gheru Lal Parekh v Mahadeodas Maiya AIR 1959 SC 781.
Ouseph Poulo v Catholic Union Bank AIR 1965 SC 166.
Union Carbide Corporation v Union of India AIR 1992 SC 248.
Central Inland Water Transport Corporation v Brojo Nath Ganguly
(1986) 3 SCC 156: AIR 1986 SC 1571.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Definition (S 31)
Enforcement of contracts contingent on an event happening (S 32)
Enforcement of contracts contingent on an event not happening (S
33)
When event on which a contract is contingent is deemed to be
Impossible, if it is the future conduct of a living person (S 34)
When contracts become void which are contingent on the happening
of a specified event within fixed time(S 35)
Agreements contingent on impossible events, void (S 36)
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Cases
Harbaksh Singh Gill v Ram Ratan AIR 1988 P&H 60.
Bashir Ahmad v Government of Andhra Pradesh AIR 1970 SC
1089.
Discharge of a contract
o Meaning
o Modes:
By performance (Ss 37-55, 57-61)
The obligation
o Perform
o Offer to perform, valid offer to perform, effect
Types of obligations
o Absolute
o Contingent
o Reasonable efforts, due diligence, best
endeavours and the like
o Obligation to achieve results, and take best
efforts
o Reasonable care
o Positive and negative obligations
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Cases
Bhudra Chund v Betts (1915) 22 Cal LJ 566.
Mahabir Prasad Rungta v Durga Dutt AIR 1961 SC 990.
China Cotton Exporters v Behari Lal Ramcharan Cotton Mills Ltd
AIR 1961 SC 1295.
Caltex (India) Ltd v Bhagwan Devi Marodia AIR 1969 SC 405.
Bismillah Begum v Rahmatullah Khan AIR 1998 SC 970.
Hind Construction Contractors v State of Maharashtra (1979) 2
SCC 70.
Paradine v Jane, King’s Bench (1647) Aleyn 26: 82 ER 897.
Taylor v Caldwell, Queen’s Bench (1863) 3 B&S 826: 122 ER 309.
Krell v Henry (1903) 2 KB 740 CA.
Alopi Parshad & Sons Ltd v Union of India AIR 1960 SC 588:
(1960) 2 SCR 793.
Tarapore & Co v Cohin Shipyard Ltd (1984) 2 SCC 680.
Robinson v Davison (1871) LR 6 Exch 269.
Man Singh v Khazan Singh AIR 1961 Raj 277.
Metropolitan Water Board v Dick Kerr & Co Ltd (1918) AC 119;
Satyabrata Ghose v Mugneeram Bangur & Co AIR 1954 SC 44;
Naihati Jute Mills Ltd v Khyaliram Jagannath AIR 1968 SC 522.
Tsakiorglou & Co Ltd v Noblee & Thorl (1961) 2 All ER 179.
Raja Dhruv Dev Chand v Raja Harmohinder Singh AIR 1968 SC
1024.
Sushila Devi v Hari Singh AIR 1971 SC 1956.
Rationale
Claim for necessaries supplied to a person incapable of contracting, or
on his account (S. 68)
Reimbursement of a person paying money due by another, in payment of
which he is interested (S. 69)
Obligation of a person enjoying benefits of non-gratuitous act (S. 70)
Responsibility of a finder of goods (S. 71)
Liability of a person to whom money is paid, or thing delivered by
mistake or under coercion (S 72)
Cases
Govindram Gordhandas Seksaria v State of Gondal AIR 1950 PC
99.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Cases
West Bengal Financial Corporation v Glurco Series Pvt Ltd AIR
1973 Cal 268.
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Page 16 of 21
Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
E-Contracts
o Nature and forms
o Formation
o Validity of e-contracts
Government Contracts
o Art 299
o Award of contracts
o Formation and enforcement
o Effect of a valid contract with the government (contractual
liability)
o Awards of contracts
o Ratification
o Application of doctrine of Estoppel
o Government contract and Art 14
o Issue of writs in the matters of contracts
Cases
Bhikraj Jaipuria v Union of India AIR 1962 SC 113.
Union of India v Rallia Ram (AIR 1963 SC 1685.
KP Chaudhary v State of MP AIR 1967 SC 203.
Mulam Chand v State of MP AIR 1968 SC 1218.
Steel Authority of India v State of MP AIR 1999 SC 1630.
Ramanna Dayaram Shetty v International Airport Authority AIR
1979 SC 1628.
Mahabir Auto Stores v Indian Oil Corporation AIR 1990 SC
1031.
Tata Cellular v Union of India (AIR 1996 Sc 11).
State of West Bengal v BK Mondal & Sons AIR 1962 SC 779.
Prescribed Readings
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Maxwell, 2011)
4. Dinshaw Fardunji Mulla, The Indian Contract Act, LexisNexis’
Student Series, Anirudh Wadhwa (Ed.) (LexisNexis
Butterworths India, 2011).
5. Jill Poole, Casebook on Contract Law (10th edn, Oxford
University Press, 2010).
6. Nilima Bhadbhade (Ed.), Pollock and Mulla, Law of Contract
and Specific Relief Acts (14th edn, Lexis Nexis Butterworths,
2013)
7. Avtar Singh, Contract and Specific Relief (11th edn., Eastern
Book Company, 2016).
8. Avtar Singh, Textbook on Law of Contract & Specific Relief Act
(6th edn., Eastern Book Company, 2016)
9. Akhileshwar Pathak, Law of Sale of Goods (1st edn, Oxford
University Press, 2013).
10. G. H. Treitel, The Law of Contracts (Sweet and Maxwell,
2007)
11. V Kesava Rao, Contracts I: Cases and Materials,
(LexisNexis Butterworths India, 2004).
Recommended Readings
Statutes to be Studied
The Indian Contract Act, 1872
Specific Relief Act, 1963
Page 19 of 21
Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
Evaluation:
Marks
Continuous Evaluation…………………………………………….……………….20
Mid-Semester Test …………………………………………………………………30
End-Semester
Examination……………………………………....................................50
Total
100
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Semester: II Course: Law of Contracts I Faculty: Dr. Joshua N.
Aston
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