Indian Contract Act, 1872

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Introduction:-

For any Commercial activity, it is mandatory to


have understanding among the parties concerned.
Such understanding is often reduced in to writing
to give effect to the intention of the parties. Such
formal versions are called Contracts.

INDIAN CONTRACT ACT, 1872

Codifies legal principles that govern Contracts . It


determines the circumstances in which promises
made by the parties to a contract shall be legally
binding on them. All of us enter into a number of
contracts everyday knowingly or unknowingly.
Each contract creates some rights and duties on
the contracting parties. Hence this legislation,
Indian Contract Act of 1872, deals with the
enforcement of these rights and duties on the
parties in India. It also defines the rights, duties,
and legal obligations of various parties to
facilitate easy performance of their contractual
obligations.

CONTRACT
Meaning:-

from the
Contractum,

The word contract is derived

Latin

word

meaning Drawn together. Thus, contract


is drawing together of two or more minds
to form a common intention giving rise to
an agreement.

Definition:Blackstone defines that A contract is an


agreement upon sufficient consideration,
to do or not to do, a particular thing/act.

What is Contract?
Section 2(h) of 1872,

provides that an
agreement which is legally enforceable alone is a
contract. It creates legal obligations between
parties. While all contracts are agreements,

all agreements are not contract

An Agreement
An agreement is a promise or commitment or
set of promises or commitments .
An agreement involves an offer or proposal by one
person and acceptance of such offer or proposal by
another person. If such agreement is capable of
being enforced by law then it becomes a contract.

What is a Promise?

The Indian Contract Act, 1872, Section 2(b),


Defines Promise" as:- When a person to whom a
proposal is made signifies his assent thereto, the
proposal is said to be accepted. A proposal when
accepted becomes a Promise.

What is an agreement?

1.
2.
3.

The Indian Contract Act, 1872, Section 2(e),


defines agreements as every promise and every
set of promises forming consideration to each
other.
SUMMARY OF CONTRACT
An offer or proposal when accepted becomes a
Promise.
Every promise and every set of promises forming
certain consideration to each other is an
Agreement.
An agreement enforceable by law is a Contract.
An agreement comes in to existence when one
party accepts the proposal put up by the other
party in the same spirit.

A diagrammatical representation of a
Contract.
OFFER + ACCEPTANCE
PROMISE
CONSIDERATION
AGREEMENT
Legally enforceable
Contract

Legally unenforceable

Voidable Contract

void agreement

Essentials of a valid contract

Essential elements of a Contract


1. Proposal (Offer) and Acceptance.
2. Legal Relationships (Case
Law [Balfour v
(
Balfour].
3. Consensus ad idem (consent at the same
time/Meeting of Minds).
4. Lawful Consideration. (Quid Pro Quo =
Something in return for something )
5. Free and Genuine Consent.
6. Capacity or Competency of the Parties .
7. Lawful Object.
8. Agreement not expressly declared to be Void .
9. Certainty and possibility. Case Law [ Montreal
Gas Co. vs Vasey]
10. Legal Formalities.

Classification of
Contracts

Types of contract
Contracts are classified on the basis
of :VALIDITY FORMATION
PERFORMANCE
Valid contract express contract
Executed
contract
Void Agreement
Implied contract
Executory
contract
Void Contract Quasi contract Unilateral Contract
Voidable Contract
Illegal Contract
Bilateral
contract
Illegal
Agreement
Unenforceable contract

(A) VALIDITY
1. Valid Contract: (Sec 10). A contract which is an
agreement enforceable at law and which fulfills
all the essentials of a valid contract.
2. Void Agreement: An agreement not enforceable
by law Sec 2(g)] (Ex: an agreement with minor,
an agreement without consideration etc)
3. Void Contract: (Sec-2(i). A contract which ceases
to be enforceable by law.
4. Voidable Contract: A contract which is enforceable
by law at the option of one party thereto, but not
an option of the other.
5. Illegal Agreement: An agreement which involves
the transgression of some rule of basic public
policy and is criminal in nature or immoral. It is
not only void as between the immediate parties
but it also taints the collateral transactions with
illegality.

6. Unenforceable Contract:
A contract which cannot be enforced in a court
of law because of some technical defect such
as absence of writing or where the remedy has
been barred by Statute of Limitation, Doctrine
of Laches, or being unregistered or unpaid
stamp duty, etc.
(B) FORMATION
1. Express Contract: A contract in which the
terms are stated in words by the parties.
Example?
2. Implied or Tacit Contract: A contract which is
inferred from the circumstances of the case or
from the conduct of the parties. Example?
3. Quasi Contract An obligation created by law,
regardless of agreement. Example?

PERFORMANCE
1. Executed Contract: A contract which is

wholly performed by both the parties.


Example?
2. Executory Contract: A contract in
which the promises of both the parties
yet to be performed. Example?
3. Unilateral Contract: A contract in
which only one party has yet to perform
his obligation. Example?
4. Bilateral Contract: A contract in which
both the parties have yet to perform
their obligations (Reciprocal in nature)..
Example?

Offer or Proposal

What is an offer (Proposal) ?


Meaning:-When one signifies to another his
willingness to do or to abstain from doing
anything, with a view to obtain the assent of the
other, such an act is said to be a an Offer or
Proposal.
Section 2 (a), 1872, defines that the proposal has
two purposes:- (a) Firstly, an expression of the
Offerors willingness to do or to abstain from
doing something. (b) Secondly, it is made with a
view to obtain the assent of the Offeree to the
proposed act or abstinence.
Person making the proposal is the Proposer /
Offeror.
Person to whom the proposal is made is called as
Proposee/Offeree .
When the Offeree accepts the Offer, he/she is called
as
Promisee, and the Offeror as Promisor

Legal Rules of Valid Offer


What are the essential elements of Valid Offer?
1. It must be intended to create legal relations
(Balfour Vs Balfour-1919).
2. It must be certain.
3. A declaration of intention is not an Offer.
4. Invitation to Offer or invitation to Treat is not
an Offer..
5. It must be communicated to the Offeree.

(Lalmon Shukla Vs Gowri Dutt)


6. It must be made with a view to obtaining the
assent of the Offeree. A statement of price is
not an offer.
7. The Offeror must have the intention to act as

Lapse of Offer
An offer lapses or comes to an end 1.By communication of notice of termination
of offer to the Offeree.
2.By lapse of the specified or reasonable time.
3.By death or insanity of the offeror.
4.By a counter-offer. Counter-offer is an offer
to the original offer.
5.By not being accepted according to the
prescribed or usual mode.
6.By non-fulfillment of a condition precedent.

Communication of Offer, Acceptance and


Revocation
1.The communication of a proposal (offer) is
complete:when it comes to the knowledge of the person to
whom it is made.
2.The communication of an acceptance is
complete.
The communication of proposal is complete when it
comes to the knowledge of the person to whom it is
made (Offeree).
Besides, the communication of
acceptance is complete when it is communicated the
Offerer.
3.An offeror mayrevokeanofferbefore it has been
accepted, but the revocationmust be communicated
to the Offeree, although not necessarily by the offeror

CLASSIFICATION OF OFFER
1.Specific Offer (Offer to a specific individual or
section)
When an offer is made to a specific or an
ascertained person. Example?
2. General Offer. When an offer is not made to
any specific person, but it is made to the larger
public. Example?
Note:-Anson says that person Substantiate
with a case law? An offer need not be made to
an ascertained person, but no contract can arise
until it has been accepted by an ascertained

Case Law:-Carlill Vs Carbolic Smoke Ball


Co. (1893(1) QB 256) (Smoke Ball Case)?
3.Express Offer.

Acceptance

Meaning:

ACCEPTANCE

Acceptanceisoneperson'scompliancewitht
hetermsofanoffermadeby another.

Essentials of valid Acceptance.


1.Acceptance
must
unconditional.

be

absolute

and

2.Consensus Ad Idem.
3.Acceptance must be Communicated.
4.Acceptance must be made within responsible
time or fixed time.
5.Acceptance must be made in prescribed
mode or responsible mode.
6.Acceptance may be Express or Implied.

7. Acceptance must be made by the Offeree.


8.Acceptor must have an intention to be
bound by the terms of Offer.

9.Acceptance can never precede an


offer (Lalmon Shukla Vs. Gowri Dutt).
10.Provisional
acceptance
is
not
an
acceptance.
11. Silence does not amount to acceptance.
12.Mental acceptance is not an acceptance
(Silence does not amount to Acceptance)
13.The acceptance must be done before the
Offer Lapses.

CONSIDERATION

CONSIDERATION
Meaning:Consideration means any thing given or
promised by one party in exchange of for the
promise or undertaking of another in a
contractual agreement.

Definition:Justice
Patterson
defines
Consideration
means something which is of some value in
the eyes of the law.it may be some benefit to
the plaintiff or some detriment to the
defendant.

LEGAL
RULES
CONSIDERATION

OF

1.To become a contract every agreement must


be supported with some consideration.
2.It must move at the desire of the Promisor.
3.Privity of consideration. It may move from the
Promisee or any other person.
4.Consideration may be past, present or future.
5.Adequacy is not essential.
6.It must be Real/Competent. It must not be
illegal, immoral or opposed to Public Policy,
or illusion.
7.Consideration should be legally valuable & It
should not pertain to an act of duty.

What are the exceptions to the rule A


Contract without consideration is void?
[Sec. 25]
The following are

the exceptions:-

1.A written and registered agreement based on


natural love and affection between parties
standing in a near relation to each other [Sec.
25 (1)].
2. A compensation for voluntary service. To
compensate, wholly or a part, a person who
has already voluntarily done something for
the Promisor [Sec. 25(2)];
3. A promise by a debtor to pay a time-barred
debt if it is made in writing and is signed by:- the debtor or by his agent [Sec. 25(3)];

Capacity to Contract

CAPACITY
CONTRACT
Section 11, of Indian

TO

Contract Act, 1872


provides that every person is competent to
contract, who is of the age of majority
according to the law to which he is subject,
and who is of sound mind, and is not
disqualified from contracting by any law to
which he is subject . Therefore, Minors,
Persons of unsound mind, and persons
disqualified by law to which they are subject
are incompetent persons to contract.
1. Minor
As a general rule, a minors (minor is a person
Contd
who has not completed eighteen
years of age)

2.

Persons of unsound mind


Lunatics. A lunatic can enter into a contract when
he is of sound mind.

Idiots.

An agreement of an idiot like that of a


minor is altogether void.

Drunken

or

Intoxicated

persons.

Their

position is similar to that of lunatics.

3. Other persons.
Alien enemies.

During the war an Indian citizen


cannot enter into a contract with a alien enemy.
Contracts made before the war are either suspended
or dissolved.
(b).
Foreign
sovereigns
and
accredited
representatives of a foreign state. They can enter
into contracts and enforce these contracts in our
Courts.
But they cannot be sued in our Courts
without
the
prior
sanction
of
the
Central
Government

. Corporations.
The contractual capacity of a statutory
corporation is limited by the Statute
governing it.
As regards a company
registered under the Companies Act, 2013,
its contractual capacity is regulated by its
MOA & AA.

(d). Insolvents.
When a debtor is adjudged insolvent he is
deprived of his power to deal in his property
divisible among his creditors.

(e). Convicts.
A Convict when undergoing imprisonment is
incapable of entering into a contract.

FREE CONSENT

FREE CONSENT
All agreements are contracts if they are made
by the free consent of the parties. It is the
general & basic principle of law of contract that
for a valid contract there must be consensus
ad idem (consent at the same time). Two or
more persons are said to consent when they
agree upon the same thing in the same sense
[Sec. 13.]
Consent is said to be free when it is not caused
by:(i) Coercion, or, (ii) Undue influence, or (iii)
Fraud, (iv) Misrepresentation, or (v) Mistake,
subject to the provisions of Secs. 20, 21, and 22
of act 1872.
Effect of agreement without free consent.
When consent to an agreement is caused by

1. COERCION
Coercion means force or compulsion. It is
the committing, or threatening to commit any
act forbidden by the Indian Penal Code, 1860,
or the unlawful detaining, or threatening to
detain, any property, to the prejudice of any
person whatever, with the
intention of
causing any person to enter into an
agreement (Sec. 15). A threat to commit
suicide amounts to coercion.
Essential ingredients of coercion
1. The consent is obtained by threat of an
offence, and the person is forced to give his
consent.
2. It is mainly of physical character.
3. The freedom of will is impaired.
4. It is of a violent character.
5. The agreement made by coercion is

2. UNDUE INFLUENCE
Meaning: In some circumstances, the
parties to an agreement are so placed to
each other in position to dominate the will
of the other. Consequently, the other party
is compelled to enter into an agreement
against his will as a result of unfair
influence. Such an agreement is said to be
induced by undue influence (sec 16,
1872).
Example of relations causing Undue Influence
Income tax officer-Assessee, Police officerAccused, Spiritual guru- Devotee, Doctor
Patient, Trustee and Beneficiary, ParentSon, Master- Servant, Solicitor and Client
etc.
No presumptions of undue influence in the

3. MISREPRESENTATION AND FRAUD


Misrepresentation: When a person positively
asserts that a fact is true when his information
does not warrant it to be so, though he
believes to be true, this is misrepresentation.
It is a misstatement of a material fact made
innocently with a honest belief as to its truth
or non-disclosure of a material fact, without
any intent to deceive the other party.

***Essential
ingredients
Misrepresentation
1.

2.
3.

of

Misrepresentation is a false statement without


any intention to deceive.
It may be innocent some times.
It does not involve dishonest intention.

4.The
effect
of
agreement
caused
by
misrepresentation is Voidable at the option
of the party whose consent has been
caused.
5. It may also arise from suppression of vital
facts. .It should be of facts material to the
contracts.
7.A
party
cannot
complain
of
misrepresentation if he had the means of
discovering
the
truth
with
ordinary
diligence.
8. It must be made before the conclusion of
contract with a view to inducing the other
party to enter into the contract.
9. The aggrieved party has two remedies
(a) He can avoid or rescind the contract, or

FRAUD
Sec,17, 1872 defines fraud. It means and
. includes any of the following acts committed
by a party to a Contract, or with connivance, or
by his agent, with intent to deceive the other
party thereof or his agent, or to induce him to
enter into the contract:1.The suggestion that a fact is true when it is
not true and the person making the suggestion
does not believe to be true.
2. The active concealment of a fact by a person
having knowledge or belief of the fact.
3. A promise made without any intention of
performing it.
4. Any other act fitted to deceive.
5.Any such act or omission as the law
specifically declares to be fraudulent.
6.Intentional misrepresentation which is the

4.

MISTAKE (Sec-20,21,22)
Mistake
is
erroneous
something. It may be a:(1)

Mistake of Law, or

(2)

Mistake of Fact.

belief

about

MISTAKE OF LAW, It may be a


(A)Mistake with regard to ignorance of Indian
Law. (No excuse).
(B) Mistake with regard to ignorance of Law of
a foreign country.
Mistake of law of a foreign country &
mistake as to law not in force in India are
regarded as the same effect as a mistake of
fact, and can repudiate a contract.

2. MISTAKE OF FACT.
It may be a Bilateral/Unilateral mistake

(1)Bilateral mistake.

Where both the


parties to an agreement are under a
mistake as to a matter of fact essential to
the agreement, the agreement is void
[Sec. 20].
Bilateral mistake may relate to: Subject
matter or Possibility of Performance
SUBJECT-MATTER. Mistake of fact
regarding subject-matter may relate
to
Existence of the subject-matter;
Price of the subject-matter;
Quantity of the subject-matter;
Identity of the subject-matter.
Contd

b)POSSIBILITY
PERFORMANCE.

OF

Bilateral mistake of fact may also


relate to :(a) Physically
impossible for its performance.
(b) Legally impossible for its
performance.
Note:-In
both
these
cases
(Subject matter & Possibility
of
performance),
the
agreement is void.

2. Mistake of Fact (Cont.d)


(2)Unilateral mistake. Where only one of
the parties is under a mistake as to a
matter of fact, the contract is not
Voidable [Sec. 22]. There are however
two exceptions to this rule.
(i) Identity of the person contracted with.
A intends to enter into a contract with
B. C cannot give himself any right in
respect of the contract by accepting
the offer. In such a case the contract is
void. Example?
(ii)Nature of contract. Where a person is
made to enter into a contract by
misrepresentation
or
by
the
inducement of another, but through no
fault of his own, there is a mistake as

LEGALITY OF
OBJECT

LEGALITY OF OBJECT
Introduction:An agreement is a contract if it is made
for a lawful consideration and with a lawful
object. [Sec. 10].
Every agreement of which if the object is
unlawful, it is void.
As per Sec-23, the consideration or object of an
agreement is unlawful if
(a) It is forbidden by law; or it is fraudulent;
or involves or implies injury to the person or
property of another; or
(b) If permitted, it would defeat the
provisions of Law.

If it is fraudulent.
(D) If it involves injury to person or property of another .
(E) The
Court regards it as immoral, or opposed to public
T
policy.

Explain an Agreement opposed to Public


Policy?
An agreement which is injurious to the public or
against the interest of the society is said to be
opposed to Public Policy. The following agreements
are, or have been held to be, opposed to public policy:1. Agreements of Trading with enemy.
2. Agreement to commit a crime.
3. Agreements interfering with administration of
justice.
These include:- Agreements for stifling prosecution,
and agreements which interfere with the course of
justice.
4. Champerty and maintenance.

6. Agreements in restraint of legal proceedings.


These include: Agreements to oust the jurisdiction of
Courts, and
Agreements to vary periods of limitation.
7. Agreements for the sale of public offices.
8. Agreements tending to create interest
opposed to duty.
9. Agreements in restraint of parental rights.
10. Agreements restricting personal liberty.
11. Agreements in restraint of marriage.
12. Marriage brokerage agreements.
13. Agreements interfering with marital duties.
14. Agreements in fraud of creditors or revenue
authorities.
15. Agreements tending to create Monopolies.

16. Agreements in restraint of


trade.
An agreement in restraint of trade is
one which restraints a person from
freely exercising his trade, business or
profession. Every agreement, by which
anyone is restrained from exercising a
lawful profession, trade or business of
any kind is, to that extent, void [Sec.
27]. Exceptions are made in case of
agreements for sale of goodwill and
partners agreements provided the
restraint is reasonable.

Effects of illegality.
No action is allowed on an illegal agreement.
This rule is based on the following two legal
maxims:
(1)No action arises from a bad cause.
(2)Where there is equal guilt, the defendant
is in a better position.
The effect of illegality are summed up as
follows:
(1)The collateral transactions to an illegal
agreement also become tainted with
illegality.
(2)No action can be taken for the:---a) Recovery of money paid or property

2.VOID AGREEMENTS
A

void agreement is one which is not


enforceable by law [Sec. 2(g)]. The following
agreements have been expressly declared to
be void:

1.Agreements made by incompetent persons


[Sec. 11].
2.Agreements made under a mutual mistake of
fact [Sec. 20].
3.The agreements in which the consideration or
object is unlawful [Sec.23].
4.Agreements made without consideration [Sec.
25].
5.Agreements in restraint of marriage [Sec. 26].
Agreements in restraint of trade
Cont..d
[Sec. 27].

8.Agreements in restraint of legal proceedings


[Sec. 28].
9.Agreements the meaning of which is uncertain
[Sec. 29].
10.

Agreements by way of wager [Sec. 30].

11. Agreements
events [Sec. 36].

contingent

on

impossible

12. Agreements to do impossible acts [Sec.


56].
3. WAGERING AGREEMENTS (Sec-30)
A wagering agreement is an agreement to pay
money or moneys worth on the happening or
non-happening of a specified uncertain event or
a future event. Wagering agreements are void
in India.
In the States of Maharashtra and

Effect of Wagering agreement


1.A wagering agreement is void.
2.No suit can be brought for recovering
anything alleged to be won on any wager.
3.Though wagering contract is void and
unenforceable, it is not illegal as it is not
forbidden by law, nor immoral or opposed to
public policy under section 23.

4. Uncertain agreements
Section 29, All Agreements, the meaning of
which is not certain, or capable of being made
certain, are void.
Example:-A agrees to sell to B a hundred tons
of oil. There is nothing whatever to show

PERFORMANCE OF
CONTRACT

PERFORMANCE OF CONTRACT
Meaning:Performance of Contract means execution of

the terms of a contract as listed within


the contract, after which the involved
parties are discharged from their duties.
TIME AND PLACE OF PERFORMANCE.
Time and place of performance of a contract are
matters to be determined by agreement
between the parties themselves. Where no
time for performance is specified, the
Promisor must perform the promise within a
reasonable time.
.

By
whom
performed?

must

contract

be

1.By Promisor himself - If that was the intention


of the
parties. i.e. where personal
consideration is the
foundation of the
contract.
2. By agent - where personal consideration is
not the foundation of the contract.
3.By legal representatives - in case of death of
the Promisor.
4. By joint Promisors - when two or more
persons/have made a joint promise, then
unless a contrary intention appears from the
contract. all such persons must jointly fulfill
the promise. If any of them dies, his legal
representative
must,
jointly
with
the

WHO CAN DEMAND PERFORMANCE?


1. It is only the Promisee, and in case of
his death, his legal representatives. who
can demand performance.
2. When a person has made a promise to
several persons, then, unless a contrary
intention appears from the contract, the
right to claim performance rests with all
of them.
3. When one of the Promisees dies, it
rests with his legal representatives
jointly with the surviving Promisees.
When all the Promisees die, it rests with
their legal representatives jointly.

TIME, PLACE AND MANNER OR PERFORMANCE


1.
Section:46: If time, and place of performance has
been decided by the Promisee, the Promisor is
bound to perform the same.
2.
Section: 47: If the time is decided by the Promisee,
but no direction from the Promisee is mandatory,
then the Promisor has to perform the contract on
or before the prescribed time at the decided place .
3.
Section 48: If Promisees Direction/consent is
mandatory for the performance of Promisor, the
Promisor need not to perform until demanded by
the Promisee.
4.
Section 49: If the place of performance of contract
is not mentioned, the Promisor shall take the
concurrence of Promisee and perform accordingly.
5.
Section 50: The Promisor can perform the contract
in any manner as authorized by the Promisee.

Modes of Discharge of Contracts


1. By performance

2.By agreement by the parties.

(a) Novation, i.e., when a new contract is substituted


for an existing one (before its execution), with full
consent, either between the same parties or
between one of the parties and a third party.
(b) Alteration, i.e., when one or more of the terms of
the contract is/are altered by the mutual consent
of the parties to the contract. Here no new
contract forms but the terms and conditions
changes.
(c) Rescission, i.e., when all or some of the terms of
the contracts are cancelled with mutual consent of
the parties, but before the execution of the first
contract. Here the parties are discharged from
their rights and liabilities.
(d) Remission, i.e., acceptance of a lesser fulfillment
of the promise/consideration made between the
parties to the original contract.

(e) Waiver: means intentional relinquishment or


giving up of a right by a party entitled thereto
under a contract.
(f) Merger, i.e., when an inferior right accruing to a
party under a contract merges into a superior right
accruing to the same party under a new contract.
3.By Lapse of time. (Doctrine of Laches/Law of
limitation)
4. By operation of law:
(a) By merger
(b) By death
By Insolvency
(d) By unauthorized alteration.
5. By impossibility.
6. By breach of Contract.
(a) Actual breach.
(b) Anticipatory breach.

REMEDIES FOR
BREACH OF
CONTRACT

Explain those REMEDIES FOR BREACH OF


InCONTRACT?
case of breach of a contract, the injured party
or aggrieved party has one or more of the
following remedies:

1.Rescission of the contract. When there is


breach of a contract by a party, the injured
party may sue to treat the contract as
rescinded.
He is also absolved of all the
obligations under the contract.

2.Suit for Damages. Damages are monetary


compensation awarded to the injured party by
the Court for the loss or injury suffered by the
party. Sec. 73 of the Indian Contract Act which
deals with compensation for loss or damage
caused by breach of contract is based on the
judgment in the case of Hadley
v. Baxendale.
Cont..d

Damages may be of four types


A) Ordinary damages. These are damages which
actually arise in the usual course of things
from the breach of a contract.
B)
Special damages. When a contract is
breached,special damages may be awarded to
reimburse
the
non-breaching
party
fordamages that result indirectly from, or
that flow from the breach. Examples:Damage or harm to business, reputation, Loss
of operating revenue (for example, when a
business do not open on the scheduled date
due to incomplete construction.
C) Vindictive or exemplary damages.
These
damages are allowed in case of the breach of
a contract to marry or dishonor of a cheque by
a banker wrongfully.
D) Nominal damages. Where the injured party

3) Liquidated damages and penalty.


Liquidated damages represent a sum, fixed
or
ascertained by the parties in the
contract, which is a fair and genuine preestimate of the probable loss that might
ensue as a result of the breach. A penalty is
a sum named in the contract at the time of its
formation, which is disproportionate to the
damage likely to accrue as a result of the
breach. The Courts in India allow only
reasonable compensation.

4)Suit for Quantum Meruit.


A right to sue on a quantum Meruit
(proportionate to the work executed) arises
where a contract, partly performed by one
party, is discharged by the breach of the
contract by the other party.
This right is

5.SUIT FOR SPECIFIC PERFORMANCE.


In certain cases the Court may direct the
party in breach of a contract to actually
carry out the promise, exactly according to
the terms of the contract. This is called
specific performance of the contract.

6. SUIT FOR INJUNCTION.


It is a mode of securing the specific
performance of the negative terms of a
contract. Example?

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