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Void Agreements

An agreement not enforceable by law is void.


A void agreement doe not give rise to any
legal consequences and is void ab-initio.

Agreement with a minor, agreement without


consideration are void agreements.
Following agreements are expressly declared to be
void:

1.) Agreement in restraint of marriage.

2.) Agreement in restraint of trade.

3.) Agreement in restraint of legal proceedings.

4.) Agreement the meaning of which is uncertain.

5.) Agreement by way of wager.

6.) Agreement contingent on impossible event.

7.) Agreement to do impossible acts.


CONTINGENT CONTRACT:

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. Thus it
is a contract which is dependant on the
happening or non happening of a certain
event.

Examples:

a.) A contracts to sell 10 bales of cotton for Rs.


20,000 if the ship by which they are coming
returns safely.
b.) A promises to pay Rs. 50,000 to B if he is elected
the President of a particular association.

c.) C advances a loan of Rs. 10,000 to D and M


promises to C that if D does not repay the loan, M
will do so.

d.) A promises to pay Rs. 50,000 to B if a certain cargo


ship does not return.
QUASI CONTRACTS:
In some cases, there is no offer, no
acceptance, no agreement and no intention
on the part of the parties to enter into a
contract but still law, from the conduct and
relationship of the parties, implies a promise
imposing obligation on one party and
conferring a right on the other.

In other words, under certain special


circumstances, obligations resembling those
created by a contract are imposed by law
although the parties never intended to enter
into a contract.
Certain examples:
•A supplies B, a lunatic, with necessaries suitable to
his condition of life. A is entitled to be reimbursed
from B’s property.

•When a coolie takes the luggage at the railway


station without being asked by the passenger or a
shoe- shiner starts shining shoes of a person without
being asked to do so, and if the person doesn’t
object to that, then he is bound to pay reasonably for
the same work.
•A fruit parcel is delivered under a mistake to
R who consumes the fruit thinking them as
birthday present. R must return the parcel or
pay for the fruits. Although there is no
agreement between R and the true owner,
yet he is bound to pay as the law regards it
as a quasi contract.

• A pays some money to B by mistake. It is


really due to C. B must refund the money to
A.
REMEDIES FOR BREACH OF CONTRACT:

A.) RECISSION OF THE CONTRACT:

When there is a breach of contract by one


party, the other party may rescind the
contract and need not perform his part of the
contract. On the other hand, if he intends to
sue the guilty party for damages, he has to
file a suit for the rescission of the contract.
When the court grants rescission, the
aggrieved party is free from all duties under
the contract and becomes entitled to
compensation under the contract.
For ex: A contracts to supply 100 Kgs of rice for
Rs. 4000 to B. If A does not supply the rice
then B does not have to pay the price. B may
treat the contract as rescinded and may sit
quietly or he may also file a suit for rescission
and claim damages.
B.) SUIT FOR DAMAGES:

A suit for rescission is accompanied by a


suit for damages i.e., in the same plaint.
Damages are a monetary compensation
allowed to the injured party for the loss he
has suffered as a result of the breach of the
contract.
C.) SUIT UPON QUANTUM MERIT:

The phrase ‘Quantum Merit’ means ‘as much as is


earned’ or in ‘proportion to the work done’. A right to
sue upon quantum merit usually arises where after
part-performance by one party, there is a breach of
contract.

For ex: A engages B, a contractor, to build a three


storied house. After a part is constructed, A prevents
B from working anymore. B, the contractor, is
entitled to get reasonable compensation for work
done under the doctrine of quantum merit in
addition to the damages for breach of contract.
D.) SUIT FOR SPECIFIC PERFORMANCE:

Specific performance means the actual


carrying out of the contract as agreed. Under
certain circumstances, an aggrieved party
may file a suit for specific performance i.e., for
an order by the court directing the defendants
to actually perform the promise that has been
made.
E.) SUIT FOR AN INJUNCTION:

Injunction is an order of the court restraining a person


from doing a particular act.

For example: A agreed to sing at B’s theatre for three


months and to sing for no one else during that period.
Subsequently, she contracted to sing at C’s theatre
and refused to sing at B’s theatre. On a suit by B, the
court granted an injunction restraining A from singing
elsewhere and awarded damages to B for the loss
suffered by him.
NOVATION AND RESCISSION OF CONTRACT:

Discharge of contract by mutual agreement between the


parties:

NOVATION: Novation means when a new contract is


substituted for an existing contract. When the parties
to a contract agree for novation, the contract is
discharged and need not be performed.

For example: A owes Rs.10000 to B and B owes Rs.


10000 to C. By mutual agreement, B’s debt to C and A’s
debt to B are cancelled and C accepts A as his debtor.
This is known as novation.

A owes B Rs. 10,000. A enters into an agreement with B


and gives B a mortgage of his(A’s) estate for Rs. 5000 in
place of the debt of Rs. 10000. This is a new contract
and extinguishes the old contract.
RESCISSION:

A contract may be discharged before the date of


performance by agreement between the parties.
Such an agreement amounts to rescission or
cancellation of the contract.

An agreement of rescission releases the parties


from their obligations arising out of the contract.

For Example: A promises to deliver certain goods


to B on a certain date. Before the date of
performance, A and B mutually agree that the
contract will not be performed. The contract
stands discharged by rescission.