chapter 1

Chapter 1 The Indian Contract Act 1872: Nature and Kind of Contracts

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The Indian Contract Act 1872: Nature and Kind of Contracts 

A and B of Srinagar entered into a contract on 1 September 2006 as per the provisions of the Indian Contract Act. Can they enforce the contract?

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Case Analysis 

No they cannot enforce contract 

Indian Contract Act is applicable to whole of India except to the state of Jammu & Kashmir.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

A promises to deliver his watch to B and, in return, B promises to pay a sum of Rs. 2,000. Is it an agreement or a contract?

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Case Analysis 

It is a contract. 

A offers while B accepts offer by agreeing to deliver his watch. Rs. 2,000 and watch are consideration. Thus, all elements of valid contracts are present.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

A promised to pay his son B a sum of Rs. 1 lakh if B passed C.A. exams in the first attempt. B passed the examination at first attempt but A failed to pay the amount as promised. B files a suit for recovery of the amount. State whether B can recover the amount under the Indian Contract Act, 1872.

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Case Analysis 

B cannot recover anything from A. 

Promise by A is not with an intention to create legal relation. Social agreement is created. Social agreement is not enforceable.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

Salman promises to Katrina to give real pearl necklace at the time of his marriage. Salman fails to give it at the time of marriage. Can Katrina complain about non-fulfillment of promise against Salman at any court?

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Case Analysis 

Katrina cannot complain in any court. 

Promise by Salman is not with an intention to create legal relation. Social agreement is created but is not enforceable.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

State with reason in brief, whether any contract is made in following cases:

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You have invited your business partner for launch. When you eat meals at restaurant. When you board a public bus.

When you call a taxi on telephone. When you put an coin in the slot of weighing machine.

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Case Analysis 

No contract made:

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Yes contract is made:

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Yes contract is made:

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Yes contract is made:

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Yes

Invitation for launch is social agreement. Intention to create legal relation is missing. Order for meal is offer while serving meal is an acceptance. It is agreement with all elements of contract. You agree to pay to bus company for taking you at the agreed stop or place. It is enforceable agreement. You agree to hire service from taxi company. It is acceptance to your offer to pay money to taxi company. It is enforceable agreement. contract

is

made:

It is enforceable agreement with all essential of valid contract is presence.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

A, a tradesman, left certain goods at B’s house by mistake B treated and used the goods as his own. Can trade men recover money of goods used by B?

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Case Analysis 

Yes trade man can recover money of goods from B. 

When B treated and used the goods of his own in spite of having knowledge that it does not belong to him, he has given acceptance. Thereby valid contract is made.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

Mohan agrees to pay Sohandada Rs. 50,000 to kill business competitor. Mohan has borrowed this money from his friend but now refuse to pay back. Can his friend claim it by approaching court? Would your answer be different in any manner if his friend do not have knowledge about purpose of borrowing?

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Case Analysis 

His friend cannot recover the money provided if he has knowledge about purpose of use of fund. Contract to be valid must have lawful object.

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The Indian Contract Act 1872: Nature and Kind of Contracts 

A agrees to sell his DVD player to B promising to deliver it on the date of payment. B promises to pay the amount with one month. What kind of contract it is?

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Case Analysis 

It is bilateral contract. 

In bilateral contract, both the parties exchange a promise to each other to be performed within a stipulated time.

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