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means the basic things of the life. These are mainly, ROTI
KAPRA-AUR MAKAAN. If any person supplied necessaries to
minor then the minor is liable o compensate the supplier. A case
Chapple vs Cooper The court held that necessaries are not
only food, shelter, clothes but also education or religious and
any such things which are necessary for life, comes under the
definition of necessaries. The following two conditions are
necessary for liable
1. The supply must not be more than sufficient.
2. The supply must be according to the standard of minor.
Case PETRESS VS FLEMING
The supply of a watch to a minor whose study was considered as
the necessity because to have a watch for graduate person is his
necessity.
RATIFICATION OF THE MINORS AGREEMENT
A minors agreement being void ab-initio, it is incapable of
being validated a subsequent ratification after the minor has
attained the age of majority. Here is minor accepts the contract
in some terms is entered during minority then also he is not
liable. If a minor takes 2000.00 in minority and Rs.3000- after
getting majority age and said major give back Rs.5000- then this
is valid and with consideration. After getting majority age if
minor uses his option to be a partner, he will be bound for all the
responsibilities of minority period, which are against the firm.
CONTRACT BY MINOR GUARDIANS
1. If the agreement is on behalf of minor done by guardian.
2. With in his Power.
3. Guardian is capable to enter into contract.
4. The agreement will be in the interest of minor.
A case of Raj Rani vs Prem - Father agreed with
the Director of Film, and according to this agreement Director of
husband failed to pay this amount. The wife filed a suit against
her husband for this money. The court held that this agreement
is not enforceable by law.
Case : Jones v/s Padavllon :
Where a girl left service to join legal education on the promise
of her mother to stand the expenses. It was held to be a family
matter and not a binding contract. Thus we can say that all the
agreements are not contracts but all the contracts are not
agreements.
A Case LALMAN V/S GAURI DATT-1913 : The defendants
nephew absconded from home. The Plaintiff who was defendant
servant was sent to search for the missing boy. After the
plaintiff had left in search of boy, the defendant issued handbill
announcing a reward of Rs.501.00 to anyone who might find out
he boy. The Plaintiff who was ignorant of this reward, was
successful in searching the boy. When he came to know of the
reward, which had been announced in his absence, he brought an
action against he defendant to claim this reward. It was held hat
since the Plaintiff was ignorant of the offer of reward, his act of
bringing the lost boy did not amount to the acceptance of he
offer, and , therefore, he was not entitled to claim the reward. If
a person has the knowledge of the offer, his acing in accordance
with the terms thereof amount to the acceptance of the same. In
such a case, it is immaterial that at the time of accepting the
offer, the acceptor does not intend to claim the reward
mentioned in the offer.
DIFFERENCE BETWEEN AGREEMENT AND
CONTRACT
AGREEMENT
CONTRACT
contract
Agreement: i) acceptance
are i) agreement ii)
enforcement
ii) Offer iii) and consideration
by law.
2. An agreement could be legal or
2. Agreement in
contract to be lawIllegal.
Ful and enforceable
by law.
3. Agreement may or may not be
3. Contract is
enforceable by law.
Enforceable by law.
4. Area of contract is
limited as
4. Area of agreement is very wide
every agreement
cant become
As it can be any type legal, moral
contract.
Etc. Any agreement even if not
5. In contract the valid
liability is
Enforceable by law remains an
created between the
parties.
Agreement.
5. The certain of valid liability is not
6. Contract requires
the
Requires in all agreement like, moral
competency of parties,
free
Religious etc.
Consent, sufficient
consi6. Every agreement does not requires
duration etc.
Competency of parties, free consent,
Sufficient consideration etc., because
Exceptions :- But the above rule have some exceptions also i.e.
an agreement without consideration in following situation is
valid and enforceable :1. Agreement Under Natural Love and Affection:- Agreement
without consideration due to Natural Love and Affection are
valid and enforceable provided that they are written and
registered.
ILUSTRATION : A promise to pay his son B a sum of Rs.
5000.00 under the Natural Love and Affection. A writes his
promise toward B and gets it registered. This is contract. Natural
love and affection includes relation between father-son husbandwife, brothers etc. Such relations do not require consideration
for a valid agreement. A case : Manali Singhal V/s Ravi
Singhal-1999-Delhi), It was said by Delhi High Court that where
any family agreement in relation to the amount of maintenance
has been made for love and affection, family peace, harmony
and satisfaction there consideration shall not be required. Such
agreement shall be enforceable by Court.
2. Agreement to pay compensation for past service Where any
person without the knowledge of promisor or otherwise than his
prayer, does any service or has done service and the promisor
promise to compensate him, there consideration shall not be
required, with the following thing which are necessary :i) An act has been voluntarily done already for the promisor
ii) At the time of commission of that act, promisor was
competent to contract.
ILLUSTRATION A at the desire of B does service for the
relatives of B. Later B agrees to pay Rs.1000/- to A for the
service. This agreement been result of earlier service is valid and
enforceable. Such consideration is also called past
consideration.
UNIT III
Question No. 5. Discuss contingent contract. Elaborate with
suitable illustrations. How are such contract is different from
Agreements?
Answer :- INTRODUCTION : Contingent contract is special
types of contract. Generally in most contracts rights of parties
are enforced immediately after the execution of contract, but
sometimes there are contracts whose enforcement depends upon
happening or non-happening of an event.
DEFINITION :Section 31 of Indian Contract Act 1872 defines that Contingent
Contract according to it : A contingent contract is a contract to
do or not to do something, if some event, collateral to such
contract does or does not happen.
ILLUSTRATION : A contracts with B that if the house of B destroyed by fire
then he shall pay Rs.10,000/- to B. It is contingent contract
because the enforcement of contract depends on the happening
or non happening of an event.
OR
2. What are the factors which vitiate consent and make the
Agreement
Void or voidable?
OR
3. What is consent? When is consent said to be free under Indian
Contract Act?
OR
Distinguish between coercion and undue influence.
Answer : INTRODUCTION :An agreement becomes contract if it fulfils the conditions of
/section 10. According to sec. 10 for an agreement becomes
contract with law full object and consideration. It means free
consent is not free then the contract is invalid. But it is voidable
not void. Voidable means a contract which can be declared void
by the court at the option of other party.
under sec.2(1). Section 198, 10(a) also deines the term voidable.
Section 13 : Consent : According to Indian Contract Act 1872: Two or more persons are said to consent when they agree
upon something in the same sense.
In the above definition it shows that (i) At least two persons are
must (ii) for the same thing and same sense.
ILLUSTRATION : At least two persons are must:- A agrees to
sell his house to B for Rs.50,000/- B accepts this proposal.
For same thing and same sense:- A have two cars; one Maruti
and the other is Fiat. He agree to sell to B. A might be thinking
to sell Maruti car while B might be thinking to purchase fiat car.
In this example A & B do not agree upon the same thing in the
same sense, hence there is snot contract in this case.
of the party to disclose the fact of deed. B could not read it but
he did not. It means he trusted on A and it is his false statement,
which held then it is Misrepresentation.
3. Innocent Misrepresentation: When false statement is made
innocently then it is Misrepresentation. Smith v/s Land &
House Property Corp.: A sold a hotel and said that all rent
holders are gentleman. Actually they it all were defaulters. It
held misrepresentation. Case : Derry v/s Peek(1889) it was held
that the management of the company was guilty of
misrepresentation, and not for fraud. Another Case : Noor-uddin v/s Umerao Bibi 1998: A sale deed was challenged on this
ground that it was executed under fraud and misrepresentation
seller was a blind person. He was also not paid sufficient
consideration. The possession of property was also transferred to
the buyer, court declared such sale deed to be set-aside.
DIFFERENCE
BETWEEN
FRAUD
&
MISREPRESENTATION
FRAUD
MISREPRESENTATION
1. Fraud contains the intention
It does not contain any such
intention.
To deceive.
2. The facts are altered with the
No such thing in
misrepresentation. Any
Intention to deceive the other is presented as such presented as
such
Person.
Whereas it does not came out
to be true
3. The guilty person has the
The guilty person has no
knowledge of
Knowledge of truth.
Truth.
demands that one should not get unjust profit at the cost of
another unjust loss. This order has been laid down in the case
of :- MOSES v/s MACFERLAN : Such action lies for money
paid by mistake or upon a consideration which happens to fail or
for money got through imposition or extortion or oppression or
for an undue knowledge taken of the pts situation. Country to
the law made for protection of persons under those
circumstances of the case. It is obliged by lies of natural justice
and equity o refund the money.
Under section 68 to 72 It has been recognised by Indian
Contract act under the heading of , Certain relations resembling
to those contracts.
CHARACTER/SKETCHES OF QUASI-CONTRACTS
1. These agreement are never made by parties but imposed by
law.
2. One party is bound to pay money to other party.
3. Such contract gives right to one party. Again the other party in
not against world.
4. Only money can be obtained not the liquidated damages.
KINDS/ESSENTIAL OF QUASI-CONRACT
1. Necessaries supplied to a person of contracting: Sec. 68 says
that if a person who is incapable to enter into a contract is
supplied necessaries, then he is bound to compensate the
suppler. Incapable means, who are not capable under sec. 11 and
12, Minor is insane or disqualify by law. If basic necessities are
supplied to this, it will be deemed quasi contract and its price
can be recovered through medical aid, clothes, food, marriage of
minors sister etc., that is depending upon him. Minors
UNIT-III
Question No.9:- Explain the term Anticipatory Breach of
Contract and discuss the consequences of such a breach.
OR
Discuss the consequences of breach of contract with relevant
case.
OR
Who must perform the Contract? Who can demand for the
performance of Contract?