(A University Established by UP Act 2 of 2012)

GLOCAL LAW SCHOOL

GLOCAL UNIVERSITY, SAHARANPUR

SEMESTER II: B.A.LL.B.

Indian Contract Act-I (ICA-I)

Course Teacher
Prof. Ayaz Ahmad
Email: ayazahmad.adv@gmail.com
ayaz@theglocaluniversity.in
Mb-09456044664
 (A University Established by UP Act 2 of 2012)

COURSE DESCRIPTION
For several need and wish, be it economic, say to earn livelihood from others or social, say to make
gift of a piece of land to near and dear one, we need to make some transaction (in the form of promise
to be performed) known as Contract to fulfil those need and wish and but those need and wish can not
be fulfilled if the proper transaction (i.e., contract) is not made according to the law of the land. In
India, “The Contract Act 1872” provides the legal framework for the formulation of those economic
and social transaction known as contract. The legal principles as enshrined in the Contract Act, 1872
and the decision of the courts made through the application and interpretation of those legal principles
to the ever changing fact situation constitute the body of law of contract. To witness the development of
law of contract and to find out the trends of development, everyone has to consult the decisions
pronounced by the courts. The basis of the Contract Act is english common law comprising of judicial
precedents but the Act is not exhaustive in the sense that it does not deal with all branches of law of
contract. There are seperate Acts which deal with contracts relating to Negotiable Instruments, transfer
of property, sale of goods, partnership etc. So, to say that it deals with the general principles of Law of
Contract which is applicable to any kind of contract irrespective of their nature and here the essence of
studying the Contract Act, 1872 lies. But this Act requires the study of other branches of law which has
a direct connection with it like the law relating to specific performance and under that law, this course
will take care of the provisions relating to the remedial measures available for non performance of a
concluded contract i.e., the provisions relating to specific performance of contract.

OBJECT OF THE COURSE

After the completion of the course, the learner students will have a decent understanding of various
provisions of the Contract Act as well as relevant provision of Specific Relief Act along with the
principles laid down in relevant case laws which they can apply in solving real life problems arising at
the time of, during and after the formation of contractual relationship of general nature.
 (A University Established by UP Act 2 of 2012)

LEARNING OBJECTIVES OF THE COURSE

By the end of this course, you will be able:

1. to help the students to acquire the knowledge and understanding of legal principles of general
law of contract as a piece of substantive legislation;
2. to help the students to acquire the knowledge and understanding so to appreciate the
relationship of Contract Law with other branches of law;
3. to help the students as to how to apply those legal principles in real life situation in rendering
their service as legal professional.

EVALUATION SCHEME
The examination system of the University promotes constant monitoring and ensures transparency of
the of the evaluation methods. Keeping this in mind University has adopted two tiers of assessment
method viz. continuous assessment and end-term written examination. Skills of reading, research
analysis and writing will be assessed through project work. Efforts will be made to ensure that the
examination method is innovative and capturing of student interest. In order to promote transparency
and objectivity, detailed evaluation report of project assignments as also answer scripts are given to
students for their perusal.

The performance of the students on this course is assessed on the basis of 100 marks. The overall
assessment of 100 marks is divided as under;
[A] INTERNAL EVALUATION (30 MARKS): The tentative plan of the Internal Evaluation will be
on the following basis:
Assessment Mode Marks
Written Submission 5 Mark
Presentation 10 Marks
Class Tests 10 Marks
Attendance 5 Marks
Total 30 Marks

[B] MID SEMESTER EXAMINATION (20 MARKS)

Written examination of 20 Marks will be conducted in the middle of a Semester.
 (A University Established by UP Act 2 of 2012)

[C] END SEMESTER EXAMINATION (50 MARKS)

Written examination of 50 Marks will be conducted at the end of the semester. The majority of the
questions will be problem based. This is to check the in-depth knowledge and analytical & lawyering
skills of the students in the subject.

INSTRUCTIONAL INPUTS:

This course will be facilitated with the help of following instructional inputs:
i) Teacher-Directed Instructional Inputs: Lecture and questioning.
ii) Learner-Directed Instructional Inputs: Individualized Instruction, Project Work and Field work.
ii) Group-Directed Instructional Inputs: Discussion and Debate.

GROUP WORK:
You will have the opportunity to work with a small group of four students from class to do the assigned
work and share your conclusions and observations through presentation before the class with the
instructor and other students. At the end of the semester the group members will submit a research
paper which should be of publishable quality.

TIMELINESS:
Due dates and times for both the research and the writing assignments are strict. Extensions will not be
granted except in the case of a genuine emergency such as a significant, verifiable illness. You must
make the request for an extension as soon as you know of the emergency.

PLAGIARISM:
Students of Glocal Law School are subject to the Glocal Student Policies and Procedure Manual.
Plagiarism is explicitly defined in that publication. Any student caught in this malpractice will be liable
for strict punishment. The students in doing their project work have to comply with the standard of fair
academic practice. Students must acknowledge the sources they are taking help to complete their
project work with their complete description to get rid of academic misconduct known as plagiarism.
Students will receive a handout explaining academic plagiarism more fully.
 (A University Established by UP Act 2 of 2012)

COURSE OUTLINE

MODULE ONE: Introduction to Law of Contract

1. History and development of law of contract
2. Contract- as part of law of obligation
3. Various forms of creation of contractual obligation
a) Contract
b) Standard form of contract
c) Promissory Estoppel
4. Meaning of Agreement
5. Meaning of Contract
6. Essential Elements of Contract
7. Functions of Contract
Leading Judicial Pronouncements:
 Bukton v/s Tounesende (1348)
 Shepton v/s Dogge (1442)
 Skyrne v. Butolf (1376) YB 2 Ric 2
 Watton v. Brinth(1400) YB 2 Hen 4
 Pickering v. Thoroughgood (1533) 93 YB 4
 Adams v. Lindell, 1 B & Ald 681
 Hadley v. Baxendale (1854) 9 Exch 341
 Stuart v. Wilkins ( 1778) 1 Doug KB 18
 TCB v/s Gray (1986) Ch 621
 Shah v/s Shah (2001) EWCA Civ 527
 Stokes v/s Whicher (1920) 1 Ch 411, 418
 Leroux v/s Brown (1852) 12 CB 801
 Maddinson v/s Alderson (1883) 8 APP Cas 467, 474
 Badri Prasad v/s State of Madhya Pradesh AIR 1970 SC 706
 Clarke v/s Earl of Dunraven, The Satanita (1897) AC 59
 Wright & Co. Ltd. V/s Maunder (1962) NZLR 355,358.
 Gibson v/s Manchester City Council (1997) 1 WLR 294, 297.
 GN Rly v/s Witham (1873) LR 9 CP 16, 19.
Web links & Articles:
• “History of Law of Contract” available at http://drgokuleshsharma.com/pdf/History%20of
%20Law%20of%20Contract.pdf
• “History of Contract in Early English Equity” by W.T. Barbour available at
http://socserv2.socsci.mcmaster.ca/econ/ugcm/3ll3/barbour/HistoryContract.pdf
• “Classification of Contract” at pp. 7-11 available at
http://www.newagepublishers.com/samplechapter/001048.pdf
 (A University Established by UP Act 2 of 2012)

MODULE TWO: Proposal & Acceptance

1. Proposal, Express & Implied
2. Communication of Proposal
3. Intention to Create Legal Relationship
4. Proposal and Invitation to Treat
5. Counter Proposal & Lapse of Offer
6. General Offer & Standing Offer
7. Acceptance-Mode of Communication
8. Revocation of Proposal and Acceptance
9. Standard Form of Contract
Leading Judicial Pronouncements:
 Carlill v/s Carbolic Smoke Ball Co. (1893) 1 Q.B. 256
 Lalman Shukla v. Gauri Dutt (1913) 11 ALJ 489
 Balfour v/s Balfour (1919) 2 K.B. 571
 Meritt v/s Meritt (1970) 1 W.L.R. 1211
 Taylor v. Laird (1856 25 LJ Ex 329)
 Powell v Lee (1908) 99 LT 284
 Tinn v/s Hoffmann (1873) 29 L.T. 271
 Perclval Ltd. v. London CCA and MDC (1918) 87 L.JKB 677
 Bengal Coal Co. v. Homee Wadia & Co. (1899) ILR 24 Bom 97
 Great Northern Railway Co. v. Witham [1873] LR 9 CP 16
 Pharmaceutical Society of GB v BC Chemists Ltd.[1953] 1 QB 401
 Harvey v. Facey [1893] UKPC 1
 Harris v. Nickerson (1873) LR 8 QB 286
 Hyde v. Wrench [1840] EWHC Ch J90
 Jones v. Daniel [1894] 2 Ch. 332
 Routledge v. Grant (1828) 6 LJCP 166
 Union of India & Ors. v. M/S Bhim Sen Walaiti Ram 1970 SCR(2) 594
 Chapelton v/s Barry Urban District Council (1940) 1 K.B. 532
 Curtis v/s Chemical Cleaning and Dyeing Co. (1951) 1 K.B. 805
 Central Inland WTC Ltd. V/s Brojonath Ganguly AIR1986 SC1571
 Alexander v/s railway Executive (1951) 2 K.B. 882
 Morris v/s C.W. Martin and Sons Ltd. (1966) 1 Q.B. 716
 Payne v. Cave 1789) 3 TR 148
 Byrne v. Van Tienhoven [1880] 5 CPD 344
 Dickinson v. Dodds (1876) 2 Ch D 463
 State Bank of Patiala v/s Ramesh Chandra Kanoji AIR 1951 SC 184
 Rose and Frank Co. v/s Crompton & Bros. Ltd. (1925) A.C. 445
 Chatturbhuj Vithaldas v/s Moreshwar Parashram AIR 1954 SC 236
 Felthouse v/s Bindley (1863) 7 L.T. 835
 (A University Established by UP Act 2 of 2012)

 Powell v/s Lee (1908) 99 L.T. 284

 Bhagwati Prasad v/s Union of India AIR 2006 SC 2331
 BP Corporation Ltd. V/s GE Shipping Co. Ltd. AIR 2008 SC 357
 LIC of India v/s R. Vasireddy AIR 1984 SC 1014
 Bhagwandas v/s Girdhari Lal & Co. AIR 1996 543
 Hyde v/s Wrench (1840) 3 Beave 334
 Dickinson v/s Dodds (1876) 2 Ch. D. 436
 State of MP v/s Gobardhan Dass AIR 1973 SC 1164

MODULE THREE:Consideration
1. Definition and Meaning of Consideration
2. Privity of Contract and of Consideration
3. Exceptions to Privity Rule
4. Past Consideration
5. Performance of Existing Duties
6. Exceptions to Consideration
Leading Judicial Pronouncements:
 Combe v/s Combe [1951] 2 KB 215
 District Board of Ramnad v. D.K. Mahomed Ibrahim (1933) 64 MLJ 574
 Durga Prasad v. Baldeo 1880 3 All 221
 Dunlop Pneumatic Tyre Co. Ltd. V/s Selfridge & Co. Ltd.[1915] AC 847
 Chinnaya Rau v/s Ramaya (1882) I.L.R. 4 Mad. 137
 Nawab Khwaja Muhammad Khan v. Nawab Husaini Begam (1910) LR 37 I.A. 152
 Tweddle v Atkinson [1861] EWHC QB J57
 Jamuna Das v. Ram Avtar 1911 II Ind Cas 91
 M. C. Chacko v/s State Bank of Travancore 1970 AIR 500
Web links & Articles:
 Video lecture on ““Basics of Consideration” available at https://www.youtube.com/watch?

MODULE FOUR:Role of Capacity & Consent in Contract

1. Capacity to Contract-Minor
2. Beneficial Contracts, Ratification
3. Soundness of Mind
4. Free Consent
5. Coercion & Undue Influence
6. Misrepresentation
7. Fraud & Mistake
 (A University Established by UP Act 2 of 2012)

Leading Judicial Pronouncements:

 Mohori Bibee v. Dharmodas Ghose (1903) 30 IA 114 (PC)
 Leslie v/s Sheill (1914) 3 K.B. 607
 Nash v/s Inman [1908] 2 KB 1
 Imperial Loan Co. Ltd. V/s Stone [1892] 1 Q.B. 599
 Cowern v/s Nield (1912) 2 K.B. 412
 Raj Rani v/s Prem Adib AIR 1949 Bom. 315
 Raffles v Wichelhaus [1864] EWHC Exch J19
 Lingo Bhimrao v/s Dattatrya Shripad (1937) 39 BOM LR 1233
 Subhas Chandra Das v/s Ganga Prosad Das1967 SCR (1) 331
 Mohanlal Jagannath v/s Kashiram Gokul AIR 1950 Nag 71 (74)
 Bansraj Das v. Secretary of State AIR 1939 All 373
 Derry v/s Peek (1889) LR 14 App Cas 337
 Esso Petroleum Co. Ltd. V/s Mardon [1976] QB 801
Web links & Articles:
 Video lecture on “Contract Performance” available at https://www.youtube.com/watch?

MODULE FIVE:Legality of Object and Consideration

1. Unlawful Agreements
2. Forbidden by Law
3. Defeating any Law
4. Fraudulent or Immoral
5. Injurious to Person or Property
6. Immoral Public Policy
7. Void Agreements
 Agreement in Restraint of Marriage
 Agreement in Restraint of Trade
 Agreement in Restraint of Legal Proceeding
 Uncertain & Wagering Agreements
 Agreement to do Impossible Act
Leading Judicial Pronouncements:
 Alice Mary Hill v/s William Clarke ILR (1905) 28
 Hermann v/s Charlesworth (1905) 2 K.B. 123
 Narayani v/s Pyare Mohan AIR 1927 Raj. 25
 Nutan Kumar v/s IInd Additional District Judge, Banda AIR 1994 All 298
 Administrator, Hindustan Cables Ltd v/s Jitendra Kumar Das Chowdhury AIR1968 Cal 146
 Madhub Chander v/s Rajcooomar Dass (1874) 14 B.L.R. 76
 Gujrat Bottling Co. Ltd. V/s Coca Colaa Co. AIR 1995 SC 2372
 (A University Established by UP Act 2 of 2012)

 Nordenfelt v/s Maxim Nordenfelt Guns and ammunition Co. Ltd. (1894) A.C. 535
 Charlesworth v/s Mac Donald I.L.R. (1898) 23 Bom. 103
 V.F.S Global Services Pvt. Ltd. V/s Suprit AIR 2008 (NOC) 1502 (Bom.)
 Har Bilas v/s Mahadeo Prasad AIR 1931 ALL 539
 Tapas majumder v/s Pranab Dasgupta AIR 2006 Cal 55
 Delhi Bottling Co. Ltd. V/s Times Guaranty Financials Ltd. AIR 2003 (NOC) 7 Delhi
 Carlill v/s Carbolic Smoke Ball Co. (1892) Q.B. 484 at pp. 490-91
 Babasaheb v/s Rajaram AIR 1931 Bom. 264
 Diggle v/s Hige (1877) 2 Ex. D. 422
 Shekharchand Jain v/s Ramnarayan (1977) 2 M.P.W.N. 118
 Badridas Kothari v/s Meghraj Kothari AIR 1967 Cal 25
 Brij Mohan v/s M.P.S.R.T. Corporation AIR 1987 SC 29
 Rajat Kumar Rath v/s Govt. of India AIR 2000 Orissa 32
Web links & Articles:
 “Void Agreements” available at
http://www.klelawcollege.org/content/uploads/documents/10.%20Void%20Agreements.pdf
 “Clear Rules Still Produce Fuzzy Results: Impossibility in Indian Contract Law” by C. Scott
Pryor available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1792964
 Article on “Discharge of Contract” by Anup Mukherjee available at
http://indiapoint.net/finance/2005/02/28/discharge-of-contract/
 Article on “Fraustration of Contract and impossibility of performance by Karnika Seth available
at http://cyberlawsconsultingcentre.com/wp-content/uploads/FRUSTRATION%.pdf

MODULE SIX: Discharge & Performance of Contract

1. Meaning of Contingent Contract
2. Performance of Contingent Contracts
3. Meaning of Offer of Performance
4. Essentials of Valid Offer of Performance
5. Responsibility of Performance of Contract
6. Time and Place of Performance
7. Discharge by Performance
8. Discharge by Breach
9. Discharge by Impossibility of Performance
10. Discharge by Agreement and Novation
Leading Judicial Pronouncements:
 Harbaksh Singh Gill v/s Ram Ratan AIR 1988 P & H 60
 Bashir Ahmed v/s Govt. of India AIR 1970 SC 1089
 Chandulal Harjivandas v/s CIT AIR 1967 SC 816
 Dalsukh M Pancholi v/s GLE Insurance Co. Ltd. AIR 1947 PC 182
 (A University Established by UP Act 2 of 2012)

 Collector of Custom s v/s Rakesh Press (1997) 10 SCC 457

 Gian Chand v/s Gopala (1995) 2 SCC 528
 Pym v/s Campbell (1856) 6 EI &BI 370
 S.V.R. Mudalair v/s Rajababu AIR 1995 SC 1607
 Startup v/s Macdonald (1843) 6 Man & G. 593
 Demby Hamilton & Co. Burden (1949) 1 All. E.R. 435
 King v/s Hoare (1844) 13 M & W 494
 K.S . Vidyanadam v/s Vairavan AIR 1997 SC 1751
 Bismillah Begum v/s Rahmatullah Khan AIR 1998 SC 970
 Nathulal v/s Phoolchand AIR 1970 SC 546
 National Textile Corporation (Gujrat) ltd. v/s SBI AIR 2006 SC 2927
 West Bengal Financial Corporation v/s Gluco Serires AIR 1973 Cal 268
 Hochster v/s De La Tour (1853) 2 E & B. 678
 Frost v/s Knight (1872) L.R. 7 Ex. 111
 Avery v/s Bowden (1885) 5 E & B. 711
 Punj Sons pvt. Ltd. V/s Union of India AIR 1986 Delhi 158
 Satyabrata Ghosh v/s Mugneeram AIR 1954 Sc 47
 Taylor v/s Caldwell (1863) 3 B & S. 826
 Robinson v/s Davison (1871) L.R. Ex. 269
 Rozan Mian Tahera Begum AIR 2007 SC 1883
 Krell v/s Henry (1903) 2 K.B. 740
 Dhruv Dev v/s Harmohinder Singh AIR 1968 SC 1024
 Municipal Corporation, Chandigarh v/s M/s Shantikunj Investment Pvt. Ltd, AIR 2006 SC 1270
Web links & Articles:
 Article on “Contingent Contract” by Dr. Tabrez Ahmed available at
http://www.authorstream.com/Presentation/tabrezahmad-254821-contingent-contract-
education-ppt-powerpoint/

MODULE SEVEN:Remedies for Breach of Contract

1. Compensation for Breach of Contract
2. Specific Performance of Contract
3. Preventive Relief/Injunction
Leading Judicial Pronouncements:
 Hadley v/s Baxendale (1854) 9 Ex. 341 at 354
 Ghaziabad Development Authority v/s Union of India AIR 2000 SC 2003
 Sandeep Cement (P) Ltd. Union of India AIR 1990 Guj.140
 Prema v/s Mustak Ahmed AIR 1987 Guj. 106
 Hobbs v/s L & S.W. Ralway (1875) L.R. 10 Q.B. 111
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 Motilal Jain v/s Ramdasi Devi AIR 2000 SC 2408

 Nivarti Govind Ingale v/s Revana Bhimanagouda Patil (1997) 1 SCC 475
 M.S. Madhusoodhanan v/s Kerela Kaumudi P Ltd. AIR 2004 SC 909
 Adhinik Steels Ltd. V/s OrissaMangenese Minerals (P) Ltd. AIR 2007 SC 2563
 Ravi singhal v/s Manali Singhal (2001) 8 SCC 1
 Law v/s Redditch Local Board (1892) 1 C.B. 127 at 132
 Ford Motor Company v/s Armstrong (1915) 31 T.L.R. 267
 Puran Law v/s state of UP AIR 1971 SC 712
Web links & Articles:
 Suit For Specific Performance of Contract- Practical Problems available at
http://www.legalservicesindia.com/article/article/suit-for-specific-performance-of-contract-in-
india-1587-1.html

MODULE EIGHT: Quasi Contracts

1. Claim for Necessaries
2. Reimbursement of Money paid Due by another
3. Obligation Non-Gratuitous Act
4. Responsibility of Finder of Goods
5. Liability Benefits under Mistake or Coercion
6. Quantum Meruit
Leading Judicial Pronouncements:
 Brook's Wharf v/s Goodman Brothers (1937) 1 K.B. 534
 Port Trust, Madras v/s Bombaty Company AIR 1967 Mad.318
 Indu mehta v/s State of UP AIR 1987 All. 309
 P. Mudaliar v/s Neelavati Ammal AIR 1937 P.C. 50
 Governor General in Council v/s Municipal Council, Madurai AIR 1949 P.C. 39
 State of West Bengal v/s B.K. Monda & Sons AIR 1962 SC 779
 Sales Tax officer v/s Kanhaiya Lal AIR 1953 SC 235

Essential Readings & Reference Material

 Anson's Law of Contract, Oxford, 29th Edn. 2010
 Avtar Singh's Contract and Specific Relief, Eastern Book Co. 11th Edn. 2013
 Ewan Mckendrick, Contract Law, Palgrave Macmillan,8th Edn. 2009
 Paul Richards, Law of Contract, Pearson, 11th Edn. 2013
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