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Contract I

Semester 1 · 24 topics in 5 units

Past question papers for Contract I

Unit I 7 topics

  1. Agreement and contract: meaning, essentials and kindsHow section 2 builds a contract out of proposal, acceptance and promise, the essentials in section 10, why social and domestic arrangements are not contracts, and the ways contracts are classified.6 min
  2. Offer, invitation to offer and tendersWhat a proposal is under section 2(a), the rules for a valid offer, general offers and Carlill, why shop displays, catalogues and auctions are only invitations to offer, cross offers, and tenders.7 min
  3. AcceptanceWhat acceptance is under section 2(b), the rules in sections 7 and 8, the mirror-image rule and counter-offers, why silence is not acceptance, acceptance by conduct, and acceptance in ignorance of an offer.6 min
  4. Communication and revocation of offer and acceptanceWhen communication of a proposal, an acceptance and a revocation is complete under section 4, the postal rule, contracts by telephone and other instantaneous means after Bhagwandas Kedia, revocation under section 5 and lapse of offer under section 6.6 min
  5. Consideration and nudum pactumThe definition in section 2(d) and its essentials, consideration at the desire of the promisor, past, present and future consideration, adequacy, the exceptions in section 25 and section 185, and a short account of promissory estoppel.6 min
  6. Privity of contract and of considerationWhy consideration may move from a stranger in India but a stranger to the contract still cannot sue, the English cases on privity, the recognised exceptions, and the Indian position after M.C. Chacko.6 min
  7. Unlawful consideration and object; e-contractsThe heads of unlawfulness in section 23, public policy after Gherulal Parakh, partial illegality under section 24, and how contracts are formed and proved electronically under the Information Technology Act, 2000.8 min

Unit II 7 topics

  1. Minor's agreementsWhy a minor's agreement is void from the start after Mohori Bibee, why it cannot be ratified or enforced by estoppel, when the minor must restore what he took, and the minor as agent, promisee and partner.7 min
  2. Persons of unsound mind and persons disqualified by lawThe test of sound mind in section 12, lucid intervals and drunkenness, the supplier's claim for necessaries under section 68, and the classes of persons disqualified from contracting by other laws.6 min
  3. Free consent: coercion and undue influenceConsent and free consent under sections 13 and 14, coercion under section 15, undue influence and its presumptions under section 16, pardanashin women and unconscionable bargains, and the court's power under section 19A.8 min
  4. Misrepresentation and fraudFraud under section 17 and misrepresentation under section 18, when silence becomes fraud, Derry v Peek, the remedies under section 19, and the ordinary-diligence exception.7 min
  5. MistakeBilateral mistake of fact under section 20, mistake of law under section 21, unilateral mistake under section 22, and the three situations where one party's mistake still matters: identity, nature of the document, and the terms of the offer.7 min
  6. Void agreements and legality of objectUnlawful consideration and object under sections 23 and 24, and the agreements the Act expressly declares void: restraint of marriage, trade and legal proceedings, uncertainty, wagers and agreements contingent on impossible events.7 min
  7. Contingent contractsWhat a contingent contract is under section 31, the six rules of enforcement in sections 32 to 36, how a contingent contract differs from a wager, and the promise-to-marry-on-father's-death problem.7 min

Unit III 4 topics

  1. Performance of contractsWho must perform a contract, what a valid tender is, the rules on time and place, when time is of the essence, reciprocal promises, joint promisors and promisees, and how payments are appropriated between several debts.9 min
  2. Discharge by agreement and by operation of lawThe modes by which a contract comes to an end, with the detail on novation, rescission and alteration under section 62, remission, waiver and accord and satisfaction under section 63, discharge by operation of law, and the restitution rules in sections 64 and 65.8 min
  3. Frustration and impossibility of performanceSection 56 and the doctrine of frustration: initial and supervening impossibility, the English cases, Satyabrata Ghose on why section 56 is exhaustive in India, Energy Watchdog on force majeure, what does not frustrate a contract, and restitution under section 65.8 min
  4. Breach of contract: anticipatory and actualThe modes of breach of contract: anticipatory breach by express repudiation or by conduct under section 39, the innocent party's election, actual breach at or during performance, and the remedies that follow.7 min

Unit IV 2 topics

  1. Damages and remotenessCompensation for breach under section 73 and the rule in Hadley v Baxendale, the kinds of damages, liquidated damages and penalties under section 74 from Fateh Chand to Kailash Nath, the duty to mitigate, and section 75.9 min
  2. Quasi-contractsRelations resembling those created by contract under sections 68 to 72: necessaries supplied to persons incapable of contracting, payment by an interested person, non-gratuitous acts, the finder of goods, and money paid by mistake or under coercion, all resting on unjust enrichment.9 min

Unit V 4 topics

  1. Specific relief: nature, kinds and recovery of possessionWhat specific relief is, how the Specific Relief Act 1963 arranges it, the summary suit of a dispossessed person under section 6, recovery of movables under sections 7 and 8, and what the 2018 amendment changed.7 min
  2. Specific performance of contractsSections 9 to 16, 19, 21 and 24 of the Specific Relief Act after the 2018 amendment: specific performance as the rule, the contracts that cannot be enforced, who may sue and against whom, readiness and willingness, compensation, and what Katta Sujatha Reddy and its review decided about pending cases.8 min
  3. Rectification, cancellation and declaratory decreesCorrecting a written instrument for fraud or mutual mistake (section 26), having a void or voidable instrument cancelled (sections 31 to 33), and suing for a declaration of status or title, with the proviso on further relief (sections 34 and 35).7 min
  4. Injunctions: temporary, perpetual and mandatoryPreventive relief under sections 36 to 42 of the Specific Relief Act: temporary injunctions and the three tests under Order XXXIX CPC, perpetual and mandatory injunctions, the cases where an injunction is refused (including the 2018 infrastructure bar), and negative covenants under section 42.8 min