PAPER 1.5. LAW OF CONTRACT [GENERAL PRINCIPLES OF CONTRACT AND SPECIFIC RELIEF ACT, 1963]

PAPER 1.5. LAW OF CONTRACT [GENERAL PRINCIPLES OF CONTRACT AND SPECIFIC RELIEF ACT, 1963]

SCHEME OF PAPER: MAX. MARKS: 100 MIN. PASS MARKS: 36 This paper shall consist of following two parts: (a) Written paper — 70 marks (b) Internal examination — 30 marks (15+10+5) Mid Semester Test: 15 marks Project/Assignment:10 marks Presentation: 05 marks (1) The question paper shall be divided into two (02) Parts viz. Part – A and Part – B. (2) Part – A shall consist of five (05) compulsory questions of two (02) marks each whereas Part – B shall consist of seven (07) questions. The Candidate is required to attempt any four (04) questions. All questions carry equal marks. (3) The prescribed syllabus includes latest amendments in the subject wherever applicable.

OBJECTIVES OF THE COURSE: To apply the basic principles in contractual relations, there need to be a clear understanding of the basic sources of law of contract. As the major source of contract law being the principles of English common law, we need to discuss the evolution of law of contract and the similarities and dissimilarities with the English law of contract. Hence, this course is designed to acquaint the students with the conceptual and operational parameters of these various general principles of contractual relations. Specific enforcement of contract is an important aspect of the law of contract. Analysis of the kinds of contracts that can be specifically enforced and the methods of enforcement forms a significant segment of this study. A practical overview of Specific Relief Act which gives a judicial remedy to enforce performance of contract is also included in the study.

UNIT - I

Meaning, elements and characteristics of Contract; Formation and Classification of Contract, including the Standard form of Contract; Proposal: Meaning, Elements Characteristics and Kinds of Proposal; Distinction between Proposal and Invitation to Proposal; Acceptance: Meaning, Modes and Characteristics of Acceptance; Communication, Revocation and Termination of Proposal and Acceptance;

UNIT - II

Consideration:

Meaning, Definition and Elements of Consideration; Significance and adequacy of consideration; Privity to Contract; Unlawful Consideration and Object Exception to the consideration.

UNIT - III

Valid Contract Capacity to Contract: Free Consent: E-Contracts: Definition, Silent Features, Formation and types, Differences between E- Contract and Traditional Contract, Advantages and Disadvantages of E –Contracts; Voidable and Void Agreements: Doctrine of severability; Agreements in restraint of marriage; in restraint of trade; Uncertain agreements; in restraint of legal proceedings; Agreement by way of wager; Contingent Contract

UNIT - IV

Performance of Contract: Parties to perform the contract, Joint rights and joint liability and performance of reciprocal promises; Time, Place and Manner of Performance; Discharge from liability to perform the contract, doctrine of Impossibility. Certain relations resembling to those created by Contract (Quasi Contract)

UNIT - V

Breach of Contract :

Meaning and Kinds; Remedies for Breach of Contract: (i) Damages—Measure of damages and remoteness of damage; (ii) Specific Performance of contract and injunctions under Specific Relief Act,1963 and Amendments; Contracts which are specifically enforceable;Contracts which are not specifically enforceable; Injunction; Rescission and Cancellation of Contract; Discretion of Court.

LEADING CASES:  Carlill v. Carbolic Smoke Ball Co. (1892) Civ. 1 QB 256  Bhagwandas v. Girdhari Lal & Co. AIR 1966 SC 543  Motilal Padampat Sugar Mills v. State of U.P. AIR 1979 SC 621  Mohori Bibi v. Dharmodas Ghose, (1903) 30 I.A. 114  Satyabrata Ghose v Mugneeram Bangur & Co. and Another AIR 1954 SC 310