Law of

Contracts
(III)
Void Agreements

• Void ab initio
• Impossibility of Performance/
Frustration
• Void as per Indian Contract Act
• Bilateral mistake
• Unlawful consideration/ objects
• No consideration
• Restraint of marriage or trade
• Uncertain terms
• Impossible acts and events
• Wagering agreements
Wagering Agreements

• What constitutes a wagering agreement?

• Uncertain event
• Equal chances to either party
• No control over the event
• No other interest/ stake in the event

• Exceptions
• Horse racing
• Lottery
• Games involving skill
• Contingent Contracts (Insurance)

• However, wagers aren’t prohibited by law, just not enforceable

• No legal protection, therefore cant go to court to enforce

• Agreements by way of wager are void.

• Effect of a void contract - Restitution
Contingent
Contracts
• A contract dependent on an event which
may happen or not
• The event must be uncertain as to time or
possibility
• The event must be independent of or
‘collateral’ to the contract
• Examples
• Indemnity
• Guarantee
• Insurance
Performance
• The act of carrying out what was promised in the offer/ acceptance
• Performance may take place as mentioned in the contract, or upon the
demand of the promisee
• Refusal to perform allows the promisee to cancel the contract (voidable)
• Performance may be carried out
• By the promisor
• By the promisor’s legal representatives or successors
• By the promisor’s agent (if personal skill is not involved)
• Privity of contract
• Usually, no third parties have any rights or obligations in a contract
• But, a third party may perform on behalf of the promisor
Discharge of Contract

A contract may be terminated or discharged

in a number of ways
By Performance By Breach Consensual Operation of law Impossibility
• Actual • Anticipatory • Novation • Death • Initial Impossibility
• Attempted • Actual • Alteration • Insolvency • Subsequent
• Recission • Merger Impossibility
• Remission • Transfer
• Waiver • Unilateral alteration
• Merger
Breach of Contract
and Remedies
• A violation of any term of a contract is
called a breach
• Actual
• Anticipatory
• Remedies
• Cancellation of the contract
• Restitution
• Damages
• Specific Performance
• Injunction (in case of negative
rights)
• Part payment