DR.

SHAKUNTALA MISRA NATIONAL REHABILITATION

UNIVERSITY

FACULTY OF LAW

DETAILED COURSE OUTLINE

Name of the course: LLB 203 Law of Contract - II

Name of the Faculty Member(s): Dr. Vijeta Dua

Semester: Second

Signature of Faculty Member(s)

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1. Objectives of the Course
The law recognizes various Special Contracts among other are (i) Partnership and (ii) Sale of
Goods. Special Contracts is a logical and imperative extension of the Law of Contracts I.
 the present paper aids in understanding the application of the general principles of
contract in specific circumstances which are the foundation for business and commercial
transactions.
 The paper aims at familiarizing the students with the day-to-day contracts made under
Sales of goods Act.
 It aims to familiarize students with the evolution of business associations under
Partnership Act.

2. Course outcomes

The students will be able to learn and understand:

 The principles and concepts on which commercial transaction are based.

 The justification for special statutory provisions for certain kinds of contracts.
 The workings of business associations.
 The difference between the transaction of a company and LLP
 The legal framework of formation, registration and dissolution of a partnership firm in
India.

3. Proposed teaching Schedule

The course will be divided in the following manner:

Module 1---15 hr

Module 2—20 hr

Module 3—15 hr

Module 4—22 hr

TOTAL 72 hr

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4. Modules in Detail

LAW OF CONTRACT - II
Course Code: LLB 203 Credit Units: 04

Module I: Indemnity and Guarantee (Sec.124-147)

1.1 Indemnity & Guarantee-the Concept, Definition, Methods

1.2 Commencement of liability of the indemnifier
1.3 Nature of indemnity clauses
1.4 Distinction between indemnity and Guarantee
1.5 Right/Duties of Indemnifier, Indemnified and Surety
1.6 Discharge of Surety's liability
1.7 Kinds of Guarantee

Module II: Bailment (Sec. 148-171), Pledge (Sec.172-181) and Agency (Sec.182 to 238)

2.1 Meaning and Distinction between bailment and pledge

2.2 Rights and Duties of Bailor/Bailee, Pawnor/Pawnee
2.3 Bailee’s right of Lien
2.4 Termination of Bailment
2.5 Commercial utility of pledge transactions
2.6 Definitions of Agent and Principal
2.7 Essentials of relationship of agency
2.8 Creation of agency: by agreement, ratification and law
2.9 Relation of principal/agent, subagent and substituted agent
2.10Termination of agency

Module III: Sales of Goods Act, 1930

3.1 Contract of sale: Nature, essentials and definition

3.2 Conditions and Warranties
3.3 Rule of ‘Caveat emptor’
3.4Performance of the contracts
3.5 Rights of unpaid seller
3.6 Remedies for breach of contract.
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Module IV: Indian Partnership Act, 1932

4.1 Partnership: Nature, Scope, kinds of Partnership

4.2 Rights and duties of Partner, Liabilities of Partners

4.3 Registration of firm, Effect of Non-registration

4.4 Dissolution of a Partnership firm

4.5 Liability of Partners under Limited liability Partnership.

5. Teaching Methodology

Following methods of teaching will be used as and when required:

 Lecture method
 PPT method
 Case study method
 Group discussion
 Worksheet/survey (empirical study)
 Tutorials by student
 Brainstorming sessions (group activity)

6. Evaluation Pattern

The evaluation pattern is as per the approved course curriculum

Components Total internal End Term Exam

Weightage (%) 70 30

Internal Evaluation:

P&AS Mid-sem exam Total

15 15 30

P- Presentation/ viva-voce
AS- Assignment

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7. Tentative Dates for Test/Project Submission:

Mid-Sem Test:

Assignment/ Project submission

Viva-voce:

8. Compulsory Readings

i. Avtar Singh – Law of Contract and Specific Relief (11th ed. 2013)
ii. Anson’s Law of Contract (28th ed., 2002)
iii. Dr. Avtar Singh, Law of Partnership and Sale of Goods (7th ed. 2011)

iv. Bangia - Law of Contract and Specific Relief

v. H.K. Saharay, Dutt on Contract- The Indian Contract Act, 1872
vi. Mulla on Sale of Goods Act & Indian Partnership Act, Lexis Nexis, 2012
vii. S. K Kapoor, Law of Contract
viii. Dr. Madhusudan Saharay, Indian Partnership Act (2nd ed. 2012)

9. Reference Readings

i. Nilima Bhadbhade, Pollock & Mulla, Indian Contract & Specific Relief Acts (13th
ed.,2006)
ii. Anson’s Law of Contract (28th ed., 2002)
iii. M.P. Furmston, Cheshire, Fifoot and Furmston’s Law of Contract (15th ed., 2007)
iv. T.R. Desai, the Indian Contract Act& The Sale of Goods Act (12th ed. 2009)
v. B.S.Ramaswamy, Contracts & their management (4th ed. 2013)
vi. Akhileshwar Pathak, Contract Law
vii. M.Krishna Nair, Law of Contract
viii. P.S. Atiya, Introduction to the Law of Contract
ix. Mulla, Partnership & Sales of Goods Act, Tripathi
List of important case laws:
1. Barrow, Lane & Ballard Ltd v Phillip Phillips & Co Ltd [1929] 1 K.B. 574

2. Couchman v. Hill [1947] K.B. 554.

3. Rowland v. Divall [1923] 2 K.B. 500.

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4. Beale v. Taylor [1967] 1 W.L.R. 1193.

5. Mahadeo v. State of Bombay, AIR 1959 SC 735

6. Badri Prasad v. State of M.P, AIR 1970 SC 706

7. Hindustan Aeronautics Ltd v. State of Karnataka (1984) 1 SCC 706

8. East India Hotels Ltd v. Syndicate Bank, 1992 Supp (2) SCC 29

9. Ashok Kumar Srivastav v. National Insurance Co. Ltd., (1998) 4 SCC 361

10. Puthukkattil Parangodan v. Puthukkattil Parameswaran, AIR 2002 Ker 221

11. Adhunik Steels Ltd v Orissa Mangenese Minerals (P) Ltd, (2007) 7 SCC 125

12. Ramchandra Sakharam Mahajan v. Damodar Trimbak Tanksale, (2007) 6 SCC 737

13. Ramachandran Nair v. Sukumaran, AIR 2002 Ker 394

14. Ushaben V. Bhagayalakshmi Chitra Mandir AIR, GHC 1978

15. Ball v Coggs (1710) 1 Brown PC 140, 1 ER 471

16. Coggs v Bernard (1703) 2 Ld Raym 909

17. Mountstephan v Lakeman (1871) LR 7 QB 196.

18. Birkmya v Darnell (1704) 1 Salk 27.

19. Rama Corporation Ltd v Proved Tin and General Investments Ltd [1952] 2 QB 147

20. Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480

21. Narendra Bahadur Singh v Chief Inspector of stamps,UP, AIR 1972 AII1

22. Rangaswami Goundar v K.R. Easwaramurthi Goundar, AIR 1967 Mad 437

23. Croft v Day (1846)

24. Nixon v Nixon, (1961) 1 WLR 1676

25. Santdas v Sheodayal AIR 1971 Bom 237

10. Consultation hours and General Instructions

Students can approach in the second half of the day to the concerned faculty with subject related
problems and tutorials can be given to the weak students during this period.