School: School of Law Programme: B.A. & B.B.A.LL.B.(Hons.

)
Year: First Year Semester: II
Course: LAW OF CONTRACT-I Course Code: ZHA/ZHB205

Theory: 4 Hrs/Week Max. University Theory Examination: 50Marks

Max. Time for Theory Exam.: 3 Hrs Continuous Internal Assessment: 50 Marks

Objectives
1 To understand the General Principles of the Law of Contract.
2 To understand the rules relating to Proposal and Acceptance.
3 To understand the lawful object and consideration.
4 To know the performance of contract, Discharge of contract and various Remedies
available in case of breach of contracts.
5 To understand the important provisions of the Specific Relief Act.

Unit
Details Hours
Number
Introduction to Law of Contract
1. Importance of contracts in Mercantile Law,
1 2. Classification of Contract, 6
3. Definition of Agreement and contract,
4. Essential elements of valid contract.
Proposal and acceptance
1. Their various forms Proposal and Acceptance,
2 2. essential elements of proposal and Acceptance, 4
3. Communication and revocation-proposal and
4. Invitations for proposal.
Consideration-
1. Concept and definition of consideration,
2. Need of consideration,
3 3. Legal rules of consideration, 4
4. Essential elements of consideration,
5. Privity of contract, exception to privity of contract, a
contract without consideration is void- Exception
Concept of Capacity to contract
1. Minors position for contract in an agreement,
2. minor’s liability for necessaries,
4 3. Affirmation-restitution in cases of minors’ agreement – 4
fraud by a minor –ratification in cases by a person of an
agreement made by him while he was a minor , other
illustrations of capacity to contract.
 4. Like person of unsound mind and other persons.
Free consent
1. its need and definition-factors vitiating free consent,
2. Coercion-definition-essential elements-duress and coercion-
various illustrations of coercion doctrine of economic duress-
effect of coercion-evaluation of Sec. 15.,
3. Undue Influence-definition-essential elements-between which
parties can it exist? Who is to prove it? Illustrations of the undue
5 influence-independent advice-pardahanash in women- 6
unconscionable bargains effect of undue influence.,
4. Fraud-definition-essential elements-suggestio falsi suppresio
veri-When does silence amounts to fraud? Active concealment of
truth-importance of intention.
5. Misrepresentation-definition-misrepresentation of law and of
fact-their effects and illustration,
6. Mistake and its meaning, Mistake of law and mistake of fact.
Legality of Object
Introduction:
Void agreement-lawful and unlawful considerations, objects-
void, voidable, illegal and unlawful agreements their effects.
Unlawful consideration and objects:
-Forbidden by law,
-Defeating the provision of any law,
-Fraudulent,
-Injurious to person or property,
-Immoral,
6 -Against public polity, 6
-Void Agreements,
-Agreements without consideration.
-Agreements in restraint of marriage,
-Agreements in restraint of trade-its exceptions-sale of goodwill,
Sec. II restriction, under the Partnership Act, trade combinations
exclusive dealing agreements, restraints on employees under
agreement of service.
-Agreements in restraint of legal proceedings-its exceptions,
uncertain agreements,
-Wagering agreements-its exceptions.
Contingent contract
7 4
- Rules regarding contingent contract
Performance of contract
1. Devolution of joint liabilities,
8 2. Time and place of performance, 4
3. Reciprocal promises,
4. Rules regarding reciprocal performance,
 5. Appropriation of payments,
6. Assignment of contracts.
Discharge of a contract
1. By performance, agreement or consent,
2. Impossibility of performance,
9 4
3. Lapse of time, operation of law,
4. Breach of contract.
5. Doctrine of frustration of contract
Quasi-contracts or certain relations resembling those created
10 2
by contract.
Remedies for breach of contract
1. Damages-kinds-remoteness of damages-ascertainment of
damages,
11 4
2. Injunction-When granted and when refused? Why? Refund
and restitution,
3. Specific performance-When? Why?
Specific Relief: Specific Relief Act,
1. Definition,
2. Recovering possession of property,
3. Specific performance of contracts,
12 4. Rectification of instruments, 12
5. Rescission of contracts,
6. Cancellation of Instruments,
7. Declaratory decrees,
8. Preventive relief.
Total 60

Resources
1. Anson: Law of Contract, Clarendon Press, Oxford, 1998
Recommended 2. Cheshire and Fifoot, Law of Contract
Books 3. G.C.V. Subba Rao : Law of Contract, S. Gogia & Co., Hyderabad
1995
4. T.S. Venkatesa Iyer. Law of Contract revised by Dr.
Krishnamachary, S. Gogia & Co., Hyderabad , 1995
5. Avatar Singh: Law of Contract and specific Relief Act- Eastern
Book Company, Lucknow, 1998.
6. Pollock & Mulla - Indian Contract Act
1. R. K. Abichandarai - Contract and Specific Relief Act
Reference Books
2. Bannarjee. S. C - Law of Specific Relief
3. William Anson - Law of Contract
4. Venkatesh Iyer - Law of Contract
5. Sarkar - Specific Relief Act