UNIT – I Introduction to the Indian Contract Act, 1872 Ac on t r a ctma yb ed efi ne da sal e ga l l ybi n di n ga gr e eme nto r ,i nt h ewo r d so fSi rF r e de r i c kPo l l oc k :“ Ap r o mi mi s eo r s etofpr omi s eswhi c ht hel a w wi l l enf or c e. ” Se ct i o n2 ( h )o fI n di a nCo nt r a ctAc t ,1 87 2d efi ne sc on t r a cta s“ Ana gr e eme nte nf o r c ea bl eb yl a w” .Th us ,f o r ma t i o n o fac on t r a c tt h er emu mu s tb ea na gr e eme nt ,a ndt h ea gr e eme nts h ou l dbeen f o r c e ab l ebyl a w. Th ea gr e eme ntwi l l c r e at er i g ht san do bl i g at i o nst h atma yb ee nf o r c edi nt h ec ou r t s .Th en or ma lme t h odo f e nf o r c eme nti sa na ct i o nf o rd ama ge sf o rb r e ac hofc on t r a ct ,t h ou ghi ns omec as est h ec ou r t ma yor d er per f or manc eb yt hepar t yi nde f aul t .
Enforceability of Contracts
Voi dCont r a ct s :A‘ v oi dc ont r ac t ’ i sonewher et hewhol et r ans ac t i oni sr egar dedasanul l i t y .I tmeans t h ata tn ot i meha st h er ebe enaco nt r a ctb et we ent h ep ar t i e s.An ygo od sormo ne yob t a i n edun de rt h e a gr e eme ntmu s tb er e t u r n ed .Wh er ei t e msha ms v eb ee nr e s ol dt oat h i r dp ar t y , t h eyma ma yber e c ov e r e db yt h e or i gi nalowner .
Voi da bl eCont r a ct s :Ac ont r ac twhi c hi sv oi da bl eoper at esi ne ver yr e s pec tasav al i dc ont r ac tunl es s andunt i loneoft hepar t i est ak esst epst oa voi di t .An yt hi ngobt ai nedundert hec ont r ac tmus tber et ur ned,i n s of arast hi si spos si bl e.I fgoodsha vebeenr es ol dbef or et hec ont r ac twasav oi ded,t heor i gi nal ownerwi l l n otb ea bl et or e cl a i mt h em.
:Anunenf or c eabl ec ont r ac ti sav al i dc ont r ac tbuti tc annotbeenf or c edi nt he Unenf or ceabl eCont r act s c our t si foneoft hepar t i esr ef us edt oc ar r youti t st er ms .I t emsr e c ei v edundert hec ont r ac tc annotgener al l y b er e c l a i me d.
Agreeent, Contract and !ro"osal Agreeent definition #$ECTI%N 2&e'( Ag r e eme nti sde fin edas“ e v er ypr o mi mi s ea ndev e r ys e to fp r o mi mi s esf o r mi n gt h ec on si d er a t i o nf o re a chot h er ” .An d apr o mi mi s ei sd efi n edasa na c c ep t e dp r o po s al .
)hat agreeents are contracts # $ECTI%N 1* ( Al l agr ee ment me sar ec ont r ac t si ft he yar ema deb yt hef r eec ons entofpar t i escompe t entt oc ont r ac t ,f oral a wf ul c ons i der at i onan dwi t hal a wf ulobj ec t ,andar eno ther eb ye x pr es s l ydec l a r e dt obev oi d.
Agreeent becoes a contract if belo+ conditions are et 1.
The r ei ssomec on s i de r at i on
2.
Thepar t i esar ec omp mpet ent t oc ont r ac t
3.
Thei rc on s en ti sf r ee
4.
The i rob j ec ti sl awf ul
!ro"osal or %ffer !ro"osal definition #$ECTI%N 2&a'( Whenoneper s onsi gni fi est oan ot herhi swi l l i ngnes st odoort oa bs t ai nf r om doi ngan yt hi n g,wi t hav i e wt o obt ai ni ngt hea ss entoft h ato t hert os uc hac torab st i nenc e,hei ss ai dt omak eapr op os al .
!ro"osal terinology #$ECTI%N 2&c'(
Theper s onma ki ngt hepr opos ali sc al l edt he“ p r omi s or ” ,andt heper s onac c ep t i ngt hepr opos al i sc al l edt he “ p r o mi s e e”
Counication of !ro"osal Counication, acce"tance and re-ocation of "ro"osals #$ECTI%N .( Th ec ommu ni c at i o no fp r o po sa l s ,t h ea cc ep t a nc eofp r o po sa l s ,a ndt h er e v oc at i o no fp r o po sa l sa ndac c ep t a nc es , r e sp ec t i v e l y , a r ed ee me dt ob ema deb ya nyac to ro mi s s i o no ft h ep ar t ypr o po si n g,a cc ep t i n go rr e v ok i n g,b y wh i c hhei n t e nd st oc ommu ni c at es uc hpr o po sa l ,a cc ep t a nc eo rr e v oc at i o n,o rwh i c hha st h ee ffe cto f c ommu ni c at i n gi t . Th us ,apr o po s alma ybec ommu ni c a t e di nan ywa ywh i c hha st h ee ffe c to fl a y i n gb ef o r et h eo ffe r e et h e wi l l i n gn es st od oo ra bs t a i n .I tma yf o re x a mp l eb ed on eb ywo r d sofmo ut h ,o rb ywr i t i n g,o re v e nb yc on du ct .
!roises, e/"ress and i"lied #$ECTI%N 0( I ns of a ra st h ep r o po sa lo ra c c ep t a nc eo fa nypr o mi s ei sma dei nwo r d s,t h ep r o mi s ei ss ai dt ob ee x pr e ss .I ns o f a ra ss uc hp r o po sa lo ra c c ep t a nc ei sma deo t h er wi s et h ani nwo r d s ,t h ep r o mi s ei ss ai dt ob ei mp l i e d. Anoff erwh i c hi se x pr e ss edbyc on du cti sc al l e da ni mpl i edoffer a ndt h eo newh i c hi se x pr e s s edbywo r d s , wr i t t enors pok en,i scal l edanexpr . essoffer Fo re x a mp l e ,ab i da ta na ct i o ni sani mp l i e do ffe rt obu y ,s t e pp i n gi n t oa no mn i b us ,a ndco ns umi n ge at a bl e sa ta s el f s er v i c er es t aur ant . CaseLaw:Upt onRur a lDi s t r i c tCounc i lvPowe l l : Afi r ebr ok eouti nt hedef endant ’ sf ar m.Hebel i e v edt hathewasent i t l edt ot hef r ees er v i c esofUp t onFi r e Br i g adeand,t her ef or e,s ummonedi t .TheBr i g adeputoutt hefi r e.I tt hent ur nedoutt hatt h edef end ant ’ sf ar m wasno twi t hi nf r eese r v i c ez oneoft heUp t on,whi c ht her ef or e,c l ai medcomp ens at i onf ort heser v i c es .Thecour t s ai d:“ Thet r ut hoft hemat t eri st hatt hedef endantwant edt hes er v i c esofUp t on ;h eas k edf ort hes er v i c esof Up t o na ndUp t o n,i nr e sp on set ot h atr e qu es t ,p r o v i d edt h es er v i c es .He nc e,t h es er v i c eswe r er e nd er e do na n i mp l i e dp r o mi s et op ayf o rt h em.
Counication +hen co"lete #$ECTI%N ( Th ec o mmu ni c a t i o no fapr o po s al i sc o mp l e t ewh eni tc o me st ot h ek n owl e dg eo ft h ep er s o nt owh om i ti sma de . Anoff erc an no tb ea cc ep t e du nl e ssa ndun t i l i th asb ee nb r o ug htt ot h ek no wl e dg eo ft h ep er s ont owh om i ti s ma de .Th i spr i n ci p l ee na bl e dt h eAl l a ha ba dHi g hCo ur ti n Lal manvGaur iDat t t odeal wi t hamat t eri n vol v i nga v er ycr uc i alques t i onont hi spoi nt . De f e nd an t ’ sne ph ewa bs c o nd edf r o mh ome .Hese nth i ss er v a nti ns e ar c ho ft h eb oy . Wh ent h es e r v a nth adl e f t , t h ed ef e nd an tb yha nd bi l l so ffe r e dt opa yRs . 5 01t oan y bo dyd i s c o v er i n gt h eb oy . Th es er v a ntc amet ok no wo f t hi soff eronl ywh enhehadal r eadyt r ac edt hemi s s i ngch i l d.He,ho we v er ,br oughtanauc t i ont or ec ov ert he r ewar d.Buthi sac t i onf ai l ed. BAERJIJ e xpl ai ns :“ I nmyopi ni onas ui tl i k et hepr es entc anonl ybef ounde dona c ont r ac t .I nor dert ocons t i t ut eacont r ac t ,t her emus tbeanac c ep t anc eofanoff erandt her ec anbeno a cc ep t a nc eu nl e sst h er ei sk no wl e dg et ot h eo ffe r ” .
Intention to Contract Ther ei snopr o vi s i oni nt heI n di a nCon t r ac tAc tr equi r i ngt ha tanoff erori t sac c ep t anc es houl db emadewi t ht he i nt ent i onofc r eat i ngal egal r el at i ons hi p.Buti nEngl i s hl awi ti saset t l edpr i nc i pl et hat“ t oc r eat eac ont r ac tt her e mus tbeacommoni nt ent i onoft hepar t i est oent eri nt ol egalobl i gat i ons . ”
Ca s el a w:Ba l f ourvBa l f our Th ed ef e nd an ta ndh i swi f ewe r ee nj o y i n gl e av ei nEn gl a nd .Wh ent h ed ef e nd an twa sd uet or e t u r nt oCe y l o n, wh er eh ewa se mp l o y e d,h i swi f ewa sa dv i s e d,b yr e as o no fh erh ea l t h ,t or e ma i ni nEn gl a nd .Th ed ef e nd an t a gr e edt os en dh e ra namo un to f3 0p ou ndamo nt hf o rt h ep r o ba bl eex p e ns e sofma i n t e na n c e.Hedi ds en dt h e amountf ors omet i me,butaf t er war dsdi ff er enc esar os ewh i c hr es ul t edi nt hei rs epar at i o nandt heal l o wanc ef el l i nt oar r ear s .Thewi f e’ sac t i ont or e cov ert hear r ear swasdi s mi s sed.
aily 3 $ocial atters Al l t hatt hel a wr equi r esi st hatt hepar t i esmus ti nt endl egal c ons equenc es .I nt hec as eof McGr egorv McGr egor ,i l l u st r a t i o no fabi n di n ge ng ag eme ntb et we enah us ba ndan dwi f e .He r eah us ba ndan dwi f ewi t h dr e w t h ei rc omp l a i n t su nd ert h ea gr e eme ntb ywh i c ht h eh us ba ndpr o mi s edt opa yhe ra na l l o wa nc ean ds het or e f r a i n f r om pl edgi nghi sc r edi t ,t h eagr eementwashel dt obeabi ndi ngcont r ac t .
4usiness atters $u"ree Court5s -ie+ Th eSu pr e meCo ur tn ot e dt h eg en er a lp r o po si t i o nt h ati nad di t i o nt ot h ee x i s t e nc eo fa na gr e eme nta ndt h e pr es enc eofc ons i der at i ont her ei sal s ot het hi r dc ont r ac t ualel ementi nt hef or m ofi nt ent i onoft hepar t i est o c r eat el egal r el at i ons .
6etters of intent Al et t ero fi nt entmer el yi ndi c at esapar t y ’ si nt ent i ont oent eri nt oac ont r ac to nt hel i ness ugges t edi nt hel et t er .I t ma ybec omesapr ec l udet oac ont r a ct .Howe v er ,wher eal e t t ers t at edt hati twoul dbef ol l owedbyade t ai l ed pur c has eor derwhi c hc ar r i edanar bi t r at i onc l aus e,i twashel dt hatt hel e t t erwasno tas upp l yor derandt he ar bi t r at i onc l aus ec ont ai nedi ni tdi dnotbyi t s el ff r uct i f yi nt oanar bi t r at i onagr eement .
eneral %ffers Acce"tance by "erforing conditions, or recei-ing consideration #$ECTI%N 8( Per f o r manc eo ft hecon di t i on so fapr opos al ,ort heac c ep t an ceofan yc ons i de r a t i onf orar ec i pr oc al pr omi s e wh i c hma ybeo ffe r e dwi t hap r o po s al ,i sana c c ep t a nc eo ft h ep r o po s al . Ca r l i lvCa r bol i cSmok eBa l lCo Ac o mp an yoff er e db yad v er t i s e me ntt opa y1 00po un dt oan y o ne“ wh oc o nt r a c t st h ei n c r e as i n ge pi d emi c i nfl uenz a,c ol dsoran ydi s eas ec aus edbyt ak i ngcol d,af t erhav i ngus edt hebal l ac cor di ngt opr i nt eddi r ec t i ons . ” I twasaddedt hat1000po undi sdepos i t edwi t ht heAl l i an ceBanks ho wi ngours i nc er i t yi nt hemat t er ” .The pl ai nt i ffus edt hesmok ebal l sac c or di n gt ot hedi r ec t i onsbuts hene v er t hel es ssubs equent l ys uff er edf r om i n flu en za .Sh ewa sh el de nt i t l e dt or e co v ert h ep r o mi s edr e wa r d .
eneral offer of continuing nature Wher eagener al off eri sofc ont i nui ngnat ur e,asi twas ,f ore x ampl e,i nt heSmok eBal l c as e,i twi l l beop enf o r ac c ep t anc et oan ynumberofper s onsunt i l i ti sr e t r ac t ed.Butwh er eanoff err equi r ess omei nf or mat i onast oa mi s s i ngt hi ng,i ti scl os edassoonast hefi r s ti nf or mat i onc ome si n.
%ffer and In-itation to Treat Anoff ers ho ul db ed i s t i n gu i s he df r o ma ni n v i t a t i o nt or e ce i v eo ffe r s .Wh enama na dv e r t i s est h ath eh asgo ta s t oc kofbook st os el l ,o rh ous est ol e t ,t her ei snooff ert obeboun db yan yc ont r ac t .“ Suc hadv er t i s ement sar e off er st onego t i at e–off er st or e c ei v eoff er s–off er st ochaff er ” .
Har veyvFacey Thep l ai nt i ffr el egr aphedt ot h edef endant s ,wr i t i ng:“ Wi l l y ouse l l usBumperHal l Pen?T el e gr aphl o we stc as h pr i c e” .Thedef endant sr epl i edal s ob yt el egr am:“ Lo wes tpr i c ef orBumberHal l Pen,9 00pound. ”Thepl ai nt i ff i mme di a t el ys en tt h ei rl a s tt e l e gr a ms t a t i n g:“ Weag r e et obu yBu mp erHa l lPe nf o r9 00po un da sk e db yy ou . ”Th e def endant sr e f us edt os el l t hepl ot . TheLor ds hi pspoi nt edoutt hati nt hei rfi r s tt el egr am,t hepl ai nt i ffsas k edt woques t i ons ,fi r s t ,ast ot hewi l l i ngnes s t os el l a nd ,s ec on d,a st ot h el o we rp r i c e.Th ed ef e nd an t san swe r e do nl yt h es ec on d,a ndg av eo nl yt h el o we st pr i c e.The yr es er v edt hei rans werast ot hewi l l i ngnes st os el l .Thus ,t he ymadenooff er .Thel as tt e l eg r a m oft he p l a i n t i ff swa sa no ffe rt ob uy , b utt h atwa sn ev e ra c c ep t e db yt h ed ef e nd an t s .
Cat al oguesanddi spl ayofgoods :As hopk eeper ’ scat al ogueofpr i c esi snotanoff er ,onl yani n vi t at i on t ooff er .
Announcementt ohol dauct i on :Anau ct i o ne er ’ san no un ce me ntt h ats pe ci fi edgo od swi l lb es ol dby auc t i ononac er t a i nda yi sno tano ffert oh ol dt heauc t i o n.
Defini t enessofpr oposal :Ac l a ss i fi edad v er t i s eme ntt ot h ee ffe ct :“ c oc k san dh en s2 5sea ch ”h a s bee nhel dt obeno tanoff ert osel l .
Fr e edi st r i but i onofa r t i cl es: Notac ont r ac tofs al e
Acce"tance – $ection 2&b' Introduction of Acce"tance – $ec 2&b' Wh ent h ep er s ont owh om t h ep r o po sa li sma desi g ni fi eshi sas s en tt h er e t o ,t h ep r o po sa li ss ai dt obeac c ep t e d. Ap r o po s a l ,wh ena c c ep t e d ,b ec o me sapr o mi s e . Thus“ ac c ept anc e”i st heas s entgi v ent oapr opos al ,andi thast heeff ec tofc on v er t i n gt hepr opos al i nt opr omi s e. Thi si sano t herwa yofs a yi ngt hatanagr ee menti sanac c ep t edpr opos al .Ev er yagr eemen t ,i ni t sul t i mat e anal y s i s ,i st her es ul tofap r o pos alf r om ones i dea ndi t sac c ep t an ceb yt h eo t her . The r ea r et hr e ef a ct or si nAc ce pt a nc e: 1.
Communi c at i ont oOffer or
2.
Communi c at i ont oAc c ept or
3.
Whe nCommun i c at i oni sno tne c es s ar y
Counication of Acce"tance Acce"tance by e/ternal anifestation or o-ert act SHAHJ s a y s“ Anag r e eme ntd oe sno tr e su l tf r o m ame r es t a t eofmi n d:i n t e ntt oac c ep ta no ffe ro re v ename nt a l r e so l v et oa cc ep ta no ffe rd oe sn otg i v er i s et oac on t r a ct .Th er emu stb e… s omee x t e r n a lma ni f e st a t i o no ft h at i nt entbyspeec h,wr i t i ngorot herac t . ” Br ogdenvMet r opol i t anRai l wayco. Bh adb ee ns u pp l y i n gc o al t oar a i l wa yc omp an ywi t h ou ta nyf o r ma la gr e eme nt .Bs u gg es t e dt h ataf o r ma l a gr e eme nts h ou l dbedr a wnup .Th ea ge nt so fb ot ht h ep ar t i e sme ta nddr e wu padr a f ta gr e eme nt .I th ads ome bl ank swheni twass entt oBf orhi sappr o v al .Hefil l edupt hebl ank si nc l udi ngt henameofanar bi t r at ora ndt h en r e t ur nedi tt ot h ec ompan y .Theagentoft hec ompan yputt hedr af ti nhi sdr a werandi tr emai nedt her ewi t hout fi na la pp r o v alh av i n gb ee ns i g ni fi ed .Bk e ptu ph i ss up pl yofc oa l sbu to nt h en ewt e r msan da l s or e ce i v e d p ay me nto nt h en ewt e r ms .Ad i s p ut eha v i n ga r i s e nBr e f u s edt obebo un db yt h ea gr e eme nt .
Acce"tance by Conduct
Me r eme nt a la ss en tt oa no ffe rd oe sn otc on cl u deac on t r a cte i t h eru nd ert h eI n di a nCo nt r a ctAc to ri nEn gl i s h Law.
Counication to %fferor 9iself Ac c e pt a nc emu s tb ec o mmu ni c a t e dt ot h eo ffe r o rh i ms e l f .Ac o mmu ni c a t i o nt oa nyo t h erp er s o ni sasi n eff ec t u al asofnocommuni cat i onhasbeenmade. Ca s e l a w:Fel t housevBi ndl ey–OffercannotI mposeBur denofRef usal Fac t s–“ Thepl ai nt i ffoff er edb ymean so fal et t ert opur c has ehi snephe w’ shor s e.Thel e t t e rs ai d:“ I fIhearno mor eab outt hehor s e,Ic on si dert hehor s emi neatpount33. 15s ” .T ot hi sl e t t er ,n or epl ywass ent .Butt h e nephe wt ol dt hedef endant ,hi sauc t i o neerno tt os el l t hehor s easi twasal r eadys ol dt ohi sunc l e.The auc t i oneerb ymi s t ak eputupt hehor s ef ora ct i ona nds ol di t .Thepl ai nt i ffsu edt h eauc t i oneeront hegr oundt hat u nd ert h ec on t r a ctt h eh or s eh adb ec omeh i spr o pe r t yan d,t h er ef o r e ,d ef e nd an t ’ sun au t h or i z eds al ea mo un t e dt o c onv er s i on.Butt heac t i onf ai l ed. ”
Counication to Acce"tor hiself Co mmu ni c at i o no fa cc ep t a nc es ho ul dbef r o m ape r s onwh oh ast h ea ut h or i t yt oac c ep t .I n f o r ma t i o nr e ce i v e d f r om anunaut hor i s edper s oni si neff ec t i v e. Ca s e l a w:Powel lvLee Fa ct s–“ Th ep l a i n t i ffwa sa na pp l i c an tf o rt h eh ea dma st e r s hi po fasc ho ol .Th ema na ge r spa ss edar e so l u t i o n a pp oi n t i n gh i m,b utt h ed ec i s i o nwa sn otc ommu ni c at e dt oh i m.On eo ft h eme mb er s ,h owe v er ,i nh i si n di v i d ua l c apac i t yi nf or medhi m.Themanager scanc el l edt hei rr es ol ut i onandt hepl a i nt i ffs uedf orbr ea chofc ont r ac t . ”
)hen Counication Not Necessary I nce r t a i nc as es ,c ommu ni c at i o no fa cc ep t a nc ei sno tn ec es s ar y . Th eo ffe r o rma yi n f o r m apa r t i c ul a rmo deof ac cept anc e,t henal l t hatt heac cept orast odoi st of ol l owt hatpar t i c ul armode. Ca s e l a w:Ca r l i lvCa r b ol i cSmok eBa l l BOWENL Jo bs er v e da s:“ Bu tt h er ei st h i sc l e arg l o sst ob ema deu po nt h atd oc t r i n e,t h ata sn ot i fi c at i o no f a cc ep t a nc ei sr e qu i r e df o rt h eb en efi to ft h ep er s onwh oma k est h eo ffe r ,h ema ydi s pe ns ewi t hn ot i c et o h i ms el f …a ndt h er ec anb en od ou btt h atwh er et h eo ffe r o re x pr e ss l yori mp l i e dl yi n t i ma t e sap ar t i c ul a rmo deo f ac c ep t anc eass uffic i en tt omak et hebar g ai nbi ndi ngi ti sonl ynec es s ar yf ort heot herper s ont of ol l o wt he i ndi c at edme t hodofac c ep t anc e;an di ft heper s onmak i ngt heo ffere xpr es s l yori mpl i edl yi nt i mat esi nhi soff er t hati twi l l bes uffic i entt oac tont hep r o pos al wi t houtc ommuni c at i ngac c ep t anc eofi tt ohi ms el f ,per f or manc eof t hecondi t i oni sasuffic i entac cept anc ewi t houtnot i fi cat i on” .
:ode of Counication Accept anceshoul dbemadei npr escr i bedmanner Ac c e pt a nc eh ast ob ema dei nt h ema nn erp r e s c r i b edo ri n di c a t e db yt h eo ffe r o r .Anac c e pt a nc eg i v e ni na ny o t hermannerma yno tbeeff ec t i v e.par t i c ul ar l ywher et heo ffer orc l ea r l yi ns i s t st hatt heac c ep t anc es hal l bemade i nt h ep r e sc r i b edma nn er .Fo re x amp l e , Ao ffe r e dt obu yfl ou rf r o m Br e qu es t i n gt h ata c c ep t a nc es ho ul dbes en tb yt h ewa go nwh i c hbr o ug htt h eo ffe r .B s enthi sac cept anc eb ypos t ,t hi nk i ngt hatt hi swoul dr eac ht heoffer ormor es peedi l y .Butt hel et t erar r i v edaf t er t h et i meoft h ewa go n.Awa she l dt obeno tb ou ndb yt h ea c c ep t a nc e .
Absolute and Un;ualified $ection 7 Acce"tance :ust 4e Absolute I no r d e rt oc on v er tap r o po sa li n t oapr o mi s e,t h ea cc ep t a nc emu st— ( 1 )b ea bs ol u t ea ndu nq ua l i fi ed ,( 2 )b e e x pr e ss edi ns omeus ua la ndr e as on ab l ema nn er ,u nl e sst h ep r o po sa lp r e sc r i b est h ema nn eri nwh i c hi ti st obe a c c ep t e d.
Effect of de"arture fro "rescribed anner Adepar t ur ef r om t hatmannerdoesno tofi t s el fi n v al i dat et heac c ep t anc e.Adut yi scas tont heoff er ort or ej ec t s uc hac c ep t a nc ewi t h i nr e as on ab l et i me . 1.
ami nordepar t ur ef r om t hepr escr i bedmodeofcommuni cat i onshoul dnotupsett hef actofaccept ance p r o v i d edt h att h ec ommu ni c at i o ni sma dei naneq ua l l ye x pe di t i o uswa y .
2 .
f o r ,i nac a s e,wh er et h eo ffe r e ewa st o l dt or e pl yb y‘ b yr e t u r nofp os t ’i twa ss ai dbyt h eCo ur to f Ex c h eq ue rCh amb ert h atar e pl ys en tb ys omeot h erme t h odeq ua l l ye x pe di t i o uswo ul dc on s t i t ut eav a l i d a c c e pt a nc e .
)here no anner "rescribed reasonable and usual anner Wh er en omo deo fa c c e pt a n c ei sp r e s c r i b ed ,a c c e pt a nc emu s t“ b ee x p r e s s e di ns o meu s u al a ndr e as o n ab l e ma nn er ” .Aspe rI n di a nCo nt r a c tL aw,p os ti sar e as o na bl emo de .
)hen contract concluded &!ostal Counication' Wh ent h ep ar t i e sa r ea tadi s t a nc ea ndar eco nt r a ct i n gt h r o ug hp os to rb yme ss en ge r s ,t h eq ue s t i o na r i s eswh en i st hec ont r ac tc onc l uded. Househol dFi r e& Acci dentI nsur anceCovGr ant Thed ef endan ti nt hi scas eh adappl i edf oral l o t mentof100s har esi nt hepl ai nt i ffc ompa ny . Al e t t erofal l o t ment a dd r e ss edt ot h ed ef e nd an ta th i sr e si d en cewa sp os t e di nd uet i me ,b uti tn ev e rr e ac he dt h ed ef e nd an t . Ne v e r t h el e s shewa she l dbo un db yt h ea c c e pt a nc e .
$ection – Counication +hen co"lete Theo nl ydi ff er enc et hatt hes ec t i onmak esi si nt hepos i t i onoft heac c ep t or .I nEng l an dwhe nal e t t erof a cc ep t a nc ei spo s t e d,b ot ht h eo ffe r o ra ndt h ea cc ep t o rb ec omei r r e v oc abl ybo un d.Bu ti nI n di a ,t h ea cc ep t o r d oe sn o tb ec o meb ou ndb yme r e l yp o s t i n ghi sa c c e p t a nc e .Heb ec o me sb ou ndo nl ywh enh i sa c c e p t a nc e “ c ome st ot h ek no wl e dg eo ft h ep r o po se r ” .Th eg apoft i mebe t we ent h ep os t i n ga ndt h ed el i v e r yo ft h e a cc ep t a nc ec anb eu t i l i s edb yt h ea cc ep t o rf o rr e v ok i n gh i sac c ep t a nc eb yas pe ed i e rc o mmu ni c at i o nwh i c hwi l l o v er t a k et h ea cc ep t a nc e.
Counter "ro"osals Anac cept anc ec ont ai ni ngaddi t i ons ,l i mi t at i ons ,orot hermodi fi cat i onsshal l ber ej ec t i onoft heoff erands hal l c ons t i t ut eac ount er off er . Ho we v er ,ar e pl yt oa no ffe rwh i c hp ur p or t st ob ea na cc ep t a nc eb utwh i c hc on t a i n sa dd i t i o na lo rd i ff er e ntt e r ms whi c hdono tmat er i al l yal t ert het er msoft heo ffers hal l c ons t i t ut eanac c ep t anc eunl es st heoff er orpr omp t l y obj ec t st ot hedi s cr epanc y ;i fhedoesnotobj ec t ,t het er msoft hec ont r ac ts hal lbet het er msoft heoff erwi t ht he mo di fi c at i o nsc on t a i n edi nt h ea cc ep t a nc e. I ft h ep r o po sa lp r e sc r i b esama nn eri nwh i c hi ti st ob ea cc ep t e d,a ndt h ea cc ep t a nc ei sno tma dei ns uc h manner ,t hepr o pos erma y ,wi t hi nar e as onab l et i meaf t ert heac c ep t an cei sc ommuni c at e dt ohi m,i ns i s tt hathi s
pr opos als ha l l bea cc ep t edi nt hepr es c r i bedmanner ,andno to t her wi s e;buti fhef ai l st odos o,heac c ep t st he a c c e pt a nc e .
!artial acce"tance Ac c ep t a nc es ho ul dbeo ft h ewh ol eo ft h eo ffe r .Th eo ffe r e ec an no ta cc ep tap ar to fi t st e r mswh i c ha r ef a v our a bl e t oh i ma ndr e j e ctt h er e st .Su cha na cc ep t a nc ei san ot h erk i n do fc ou nt e rp r o po sa la ndd oe sn otb i n dt h eo ffe r or .
In;uiry into ters of "ro"osal Ame r ei n qu i r yi n t ot h et e r msofap r o po sa li sno tt h es amet h i n ga sac ou nt e r p r o po sa l .Ona cc ep t a nc eo ft h e pr opos al ,t hec ont r ac twi l l bec r eat edont hebas i soft het er msandc ondi t i onsoft heor i gi nal pr opos al i nc l udi ng ar bi t r at i oncl aus e.
Acce"tance +ith condition subse;uent I fa na cc ep t a nc ec ar r i e sac on di t i o ns ub se qu en t ,i tma yn oth av et h ee ffe cto fac ou nt e r p r o po sa l .Th us ,wh er ea n a cc ep t a nc es ai d :“ t e r msa cc ep t e d,r e mi tc as hdo wnRs . 2 5, 0 00byFe br u ar y5 ,o t h er wi s eac c ep t a nc es ub j e ctt o wi t h dr a wa l ,t h i swa sn otac ou nt e r p r o po sa l ,b uta na cc ep t a nc ewi t hawa r n i n gt h ati ft h emo ne ywa sn ots en tt h e c o n t r a c two ul dbede eme dt oha v eb ee nb r o k e n.
Acce"tance of counter "ro"osal Ev e n“ wh er et h ea c c ep t a nc eo fap r o po s al i sno ta bs o l u t ea ndu nq ua l i fi e dt h ep r o po s erma ybe c omeb ou nd ,i f ,b y hi ss ubs equentc on duc t ,hei ndi c at est hathehasac c ep t edt hequal i fi c at i onss etu p” . Har gopalvPeopl e’ sBankofNor t her nI ndi a Anap pl i c at i o nf o rs h ar e swa sma dec on di t i o na lo na nu nd er t a ki n gb yt h eb an kt h att h ea pp l i c an two ul db e appoi nt edaper manentdi r ec t oroft hel oc al br anc h.Thes har eswer eal l ot t edt ohi m wi t houtf ul fi l l i ngt hec ondi t i on. Thea ppl i c antac c ep t edt hep os i t i ona sas har ehol derb yac c ep t i ngdi v i dends ,fi l i ngas ui tt or ec ov eri tandb y pl edgi nghi ss har es . I twas ,t her ef or e,hel d“ t hathec oul dnotc ont entt hatt heal l ot mentwasv oi dont hegr oundofnonf ul fi l l mentoft he c on di t i o na sh eh adb yh i sc on du ctwa i v e dt h ec on di t i o ns .
!ro-isional acce"tance Anac c ep t a nc ei ss ome t i me sma des ub j e ctt ofi na la pp r o v al .Ap r o v i s i o na la cc ep t a nc eo ft h i sk i n dd oe sn ot or di nar i l ybi ndei t herpar t yunt i l t hefi nal appr ov al i sgi v en.
Acce"tance and +ithdra+al of tenders At enderi si nt hes amec at eg or yasaquo t at i onofpr i c es .I ti snota noff er .Whenat enderi sappr o v ed,i ti s c on ver t edi nt oas t andi ngoff er .Ac ont r ac tar i s esonl ywhe nanor deri spl ac edont h ebas i soft het en der .Thes e p r i n c i p l e swe r el a i ddo wnb yt h eBo mb a yHi g hCo ur ti nt h ewe l l k n o wnc a s eo fBe ng a lCo al CoL t dvHo me e Wadi a&Co.
6a"se of %ffer 1.
Not i c eof r ev oc at i on
2.
Laps eofTi me
3.
Byf ai l ur et oacc eptcondi t i onpr ecedent
4.
Bydeat hori ns ani t yofoff er er
$ection =
N%TICE %
%CATI%N Wi t hdr a wa lbe f or ee xpi r yoffix e dpe r i od Wh er eanoff er o rg i v e st h eo ffe r e ea no pt i o nt oac c ep twi t h i nafi x e dp er i o d,h ema ywi t h dr a wi te v enbe f o r et h e ex pi r yoft hatper i od. CASELAW:Al f r edSchonl ankv.Mut hunaynaChet t i Thedef endantl ef tanoffert os el l aquant i t yofi ndi goatt hepl ai nt i ff ’ soffic eal l owi nghi m ei ghtda ys ’t i met ogi v e h i san swe r .Ont h e4 t hd ayho we v ert h ed ef e nd an tr e v ok e dh i spr o po sa l .Th ep l a i n t i ffa cc ep t e di to nt h e5 t hd ay . Ho l d i n gt h ea c c ep t a nc ewa sus e l e s s . Agreementt okeepOfferopenf orSpeci fiedPer i od Wh er et h ea gr e eme ntt ok e ept h eo ffe ro pe nf o rac er t a i np er i o do ft i mei sf o rs o mec on si d er a t i o n,t h eo ffe r o r c annotc anc el i tbef or et hee xpi r yoft hatper i od. CASELAW:Mount f ordvScot t Communi cat i onofRevocat i onshoul dbef r om Offer erHi msel f I ti snec es s ar yt hatt hec ommuni c at i onofr e v oc at i ons houl dbef r om t heoff er ororf r om hi sdul yaut hor i s edagen t . Bu ti thasbeenhel di nt hec as eof Di cki nsonv.Dodds, t hati ti snotenoughi ft heoffer eek nowsr el i abl yt hatt he o ff erh asb e enwi t h dr a wn . Revocat i onofGener alOffer s Wh er eanoff ero fage ne r a ln at u r ei sp ub l i s h edt h r o ug hn ews p ap er s ,i tc a nb ewi t h dr a wnbyt h es a meme di aan d t her e v oc at i onwi l l beeff ec t i v ee v eni fapar t i c ul arper s on ,s u bs equentt ot hewi t hdr a wl ,happenedt oper f or mi t s t er msi ni gnor an ceoft hewi t hdr a wal . CASELAW:Skar sm Ramanat hanvNTCLt d Super sedi ngpr oposal sbyFr eshPr oposal Wh er eb ef o r ea cc ep t a nc eap r o po sa li sr e ne we di ns omep ar t sofi ta ndn oti ni t sen t i r e t yaspr o po se de ar l i e ra nd t hel et t erpur por t si tt osuper s edet heear l i erc ommuni c at i on,s uc hpr opos al i snol ongera vai l abl ef orac cept anc e. CASELAW:BanquePar i basvCi t i bankNA Ca nc el l a t i onofa l l ot me ntofl a nd Anal l o t me nto fl a ndwa sma deu nd ert h eo r d ero faDe v e l o pme ntAu t h or i t y . CASELAW:RocheesHot el sPLt dvJai purDevel opmentAut hor i t y Revocat i onofBi d
I nt hec as eofanauc t i on,“ t heas s enti ss i gni fi edont hepar toft hese l l erb yk noc k i ngdo wnt heh ammer ” .Abi d ma yb er e t r a c t e db ef o r et h eh a mme ri sd own . CASELAW:Uni onofI ndi avBhi msenWal ai t iRam Al i q uo rs h i pwa sk no ck e dd ownt oab i d de ra tap ub l i cau ct i o n.Th i swa ss ub j e ctt ot h ec on fir ma t i o nb yt h eCh i e f Commi s s i onerwhohadt hepo werb ef or egr ant i ngt hel i c enc et oi nqui r ei nt ot hefi nanc i al c ondi t i onoft hebi dder . Theb i dd erhadt opa yones i x t hpar toft hepr i c ei mmedi at el yandi nc as eofan yde f aul tonhi spar tt he Go v er nmenthadt hepo wert or eau ct i ont heshopandt heshor t f al l ,i fan y ,wasr ec ov er abl ef r om t hebi dder .He f ai l edt opa yone s i x t hpar tand,t her ef or e,t heChi efCommi s s i onerdi dno tc onfi r mt hebi dandor der edr es al e. Res al er eal i z edmuc hl es st hant heor i gi nal bi dandt heques t i onofbi dder ’ sl i abi l i t yt opa yt hes hor t f al lar os e. Thec our ts ai d:I ti sno tdi s put edt hatt heChi efCommi s s i onerhaddi s appr o v edoft hebi doff er edbyt he r e sp on de nt .I ft h eCh i e fCo mmi s s i o ne rh adg r a nt e ds an ct i o ni nf a v oro ft h er e sp on de nt ,t h ent h er ewo ul dh av e b ee nac omp l e t e dt r a ns ac t i o na ndh ewo ul dh av eb ee nl i a bl ef o ra nysh or t f a l l o nt h er e sa l e .
6A!$E % TI:E Anoff erl aps esont hee xpi r yoft het i me ,i fany , fi x edf orac c ep t anc e.Wher eanoff ers ay st hati ts hal lr emai n o pe nf o ra c c ep t a nc eu pt oac er t a i nd at e ,i th ast ob ea cc ep t e dwi t h i nt h atd at e .Fo re x a mp l e ,wh er ea no ffe rwa s t ol a stu nt i l t h ee ndofMa r c han dt h eo ffe r e es en tat e l e gr a ma cc ep t i n gt h eo ffe ro n2 8t hMa r c hwh i c hwa s r ec ei v edbyt heoff er o ron30t hMar c h,i twashel dt hatt heop t i onwasdul ye x er c i s ed.
AI6U
?EAT9 %< IN$ANIT@ % %E<%< Anoff erl aps esont hedeat hori ns ani t yoft heoff er or ,p r o v i dedt hatt hef ac tc omest ot hekn owl edgeoft heoff er ee b ef o r ehema k e shi sa c c e pt a nc e . I nt h ec as eof Di cki nsonvDodds ,i twashel dt hatanoff erc anno tbeac c ep t edaf t ert h edeat hoft heo ffer or .
$ECTI%N
byt hecommuni cat i onofnot i ceofr evocat i onbyt hepr oposert ot heot herpar t y;
2 .
b yt h el a ps eoft h et i mepr e s c r i b edi ns uc hpr o po s al f o ri t sa c c ep t a nc eor ,i fn ot i mei ss op r e s c r i b ed ,b y t h el a ps eo far e as on ab l et i me ,wi t h ou tc ommu ni c at i o no ft h ea cc ep t a nc e;
3 .
b yt h ef a i l u r eoft h ea c c ep t o rt of u l fi l l ac on di t i o np r e c ed en tt oac c e pt a nc e ;o r
4 .
b yt h ed ea t ho ri n s an i t yo ft h ep r o po s er ,i ft h ef a c to fh i sd ea t ho ri n s an i t yc ome st ot h ek n owl e dg eo ft h e a cc ep t o rb ef o r eac c ep t a nc e.
I nI n di a ,o nt h eo t h erh an d,a cc ep t a nc ei sge ne r a l l yr e v oc ab l e .Ana cc ep t o rma yc an ce lh i sac c ep t a nc eb ya s peedi ermodeofc ommuni c at i onwhi c hwi l l r eac he ar l i ert hant heac c ep t anc ei t s el f .Sec t i on5i st her el e v ant pr ov i s i on.
$tandard or Contracts
Ex pl oi t at i onofweak erpar t y
Pr ot ec t i v eDe vi c es
Re as o na bl en ot i c e
No t i c es ho ul dbec on t e mp or a ne ou swi t hc on t r a c t
Th eo r yo ff u nd ame nt a lb r e ac h
St r i c tc ons t r uc t i on
Li abi l i t yi nt or t
Un r e as o n ab l et e r ms
Consideration #$ECTI%N 2 &d' and $ECTI%N 2=( Se ct i on25oft heI ndi anCont r ac tAc t ,1872st ar t swi t hadec l a r a t i ont hat“ anagr eementmad ewi t hout c ons i der at i oni sv oi d” .Cons i der at i oni sapr i c eoft hepr omi s e.
?efinitions I nt hewor dsofPol l oc k ,“ Cons i der at i oni st hepr i c ef orwhi c ht hepr omi s eoft heo t heri sbo ught ,andt hepr o mi s e t husgi v enf o rv al uei senf or c eabl e. ”Ano t hers i mpl edefi ni t i oni sbyJu st i c ePat t er s on:“ Cons i der at i onmeans s ome t h i n gwh i c hi so fs omev al u ei nt h ee y eso ft h el a w…. .I tma ybes omebe ne fitt ot h ep l a i n t i ffors ome det r i mentt ot hedef endant . ” Se ct i on2( d)oft heI ndi anCont r ac tAc tdefi nesc ons i der at i onas : Wh en ,a tt h ed es i r eoft h ep r o mi s or ,t h ep r o mi s eeora nyo t h erp er s onha sdo neora bs t a i n edf r o md oi n go rd oe s o ra bs t a i n sf r o md oi n g,o rp r o mi s est od oo rt oa bs t a i nf r o md oi n g,s ome t h i n g,s uc ha cto ra bs t i n en ceo rp r o mi s e i scal l edac ons i der at i onf ort hepr omi s e. I tmeanspr i c ef orwhi c ht hepr omi s eoft heo t heri sboug ht–av al uabl ec ons i d er at i onsapr i c eoft hep r o mi s e– s o meo fv a l u er e c ei v e db yt h ep r o mi s e ea sa ni n du c eme nto ft h ep r o mi s eq ui dp r oq uo(s o me t h i n gi nr e t u r n )– ma ybeofs omebe ne fitt ot h ep l a i n t i ffors omede t r i me ntt ot h ed ef e nd an t . AbdulAzi zVs.Masum Al i Ap r o mi s et os ub sc r i b eRs . 5 00f o rr e b ui l d i n gamo sq ue–n otf u l fi l l e d–s ec r e t a r yo fmo sq uec ommi t t e efi l e da s ui tf o re nf o r c eme nto fp r o mi s e–He l d ,t h ep r o mi s en ote nf o r c ea bl ea sn oc on si d er a t i o ni nt h es en seo fb en efi t f o rt h ep r o mi s or–t h es ec r e t a r yo ft h ec ommi t t e es uff er e dn od et r i me nta sn ot h i n gh asbe end on et oca r r you tt h e r epai r s–nocont r ac t . Gousmohoddi nVs.Appasahi b Su i tfi l edb yl andl or dLag ai ns tt ena ntTf orpos s es s i onofp r e mi s esandar r ear sofr ent–s ui tdec r eedi nf a vour– i ne x ec ut i on,at t ac hmentor derofmo v abl epr oper t yofT–I nc ons i der at i onofTagr eei ngno tt oapp eal ag ai ns tt he d ec r e e,La l l o we do nemo nt h ’ st i met op ay–He l d ,v a l i dc on si d er a t i o n–v a l i da gr e eme nt .
Essential Eleents of a >alid Consideration 1.
I tmus tmov eat t hede s i r eof pr omi so r
2.
I tmaymovef r om pr omi seeoranyot herper son( pr i vi t yofconsi der at i on)
3.
I tmus tber eal ,noti l l us or y
4.
I tneednotbeadequat e
5.
I tmaybepa s t ,pr es ent orf ut ur e
6.
I tmustnotbei l l egal ,i mmor aloropposedt opubl i cpol i cy
!roissory Esto""el Th ed oc t r i n eo fp r o mi s s or yes t o pp elp r e v en t son ep ar t yf r o m wi t h dr a wi n gapr o mi s ema det oas ec on dp ar t yi ft h e l at t erhasr eas onabl yr el i edont hatpr omi s e. Th ed oc t r i n eo fp r o mi s s or yes t o pp elwa sfi r s td ev e l o pe di nHughesv.Met butwas r opol i t anRai l wayCo[ 1877] l os tf ors omet i meunt i li twasr es ur r ec t edbyLor dDenni ngi nt hecont r ov er s i alc as eof Cent r alLondonPr oper t y . Tr ustLt dv.Hi ghTr eesHouseLt d[ 1947] Pr o mi s s or ye st o pp elr e qu i r e s: 1.
anu ne qui v oc al pr omi s ebywor dsorc ondu c t
2 .
e v i d en c et h att h er ei sac ha ng ei npo s i t i o no ft h ep r o mi s e ea sar e s ul to ft h ep r o mi s e( r e l i a nc ebu tn ot nec es sar i l yt ot hei rdet r i ment )
3.
i nequi t yi ft hepr omi sorwer et ogobackont hepr omi se
I ngener a l ,es t oppe li s‘ as hi el dno tas wor d’— i tc anno tbeus edast hebas i sofanac t i ononi t sown.I tal s odoes notex t i ngui s hr i ght s . Th eg en er a lr u l ei st h atwh eno nep ar t yag r e est oa cc ep tal e ss ers um i nf u l l p ay me nto fad eb t ,t h ed eb t o rh as gi v ennoc ons i der at i on,ands ot hec r edi t ori sst i l l ent i t l edt oc l ai mt hedebti ni t sent i r et y .Thi si snott hecas ei ft he debt oroff er spa ymentatanear l i erdat et hanwaspr e vi o us l yagr eed,bec aus et hebene fitt ot hecr edi t orof r ec ei v i ngpa y mentear l ycanbet hough tofasc ons i der at i onf ort hepr omi s et owai v et h er es toft hedebt .Thi si s t her ul ef or mul at edi nPi nne l ’ sCa s e( 1 60 2)
BAt the desire of the "roisor Anac to ra bs t i n en cewh i c hi st obeac on si d er a t i o nf o rt h ep r o mi s emu stb ed on eo rp r o mi s edt obedo nei n ac c or danc ewi t ht hedes i r eoft hepr omi s or . Dur gaPr asadvBal deo F a c t s:Thepl ai nt i ffc ons t r uc t edsomeshopsi namar k etundert heor der soft heCol l ec t or .Th edef end ant o cc up i e das ho pa ndpr o mi s edt opa ys omec ommi s s i o nt ot h ep l a i n t i ffan dd i dno tpa y .I nanac t i o na ga i n s tt h e def endant ,i twashel dno tmai nt ai nabl e. Cour tHel d:Theon l ygr o undf ort hema ki ngo ft hepr omi s ei st hee xpen sei nc ur r edb yt hepl ai nt i ffi nes t abl i s hi ng t heGanj ( mar k et )buti ti scl eart hatan yt hi ngdonei nt hatwa ywasnot‘ att hedes i or ’ oft hedef endant ssoast o c ons t i t ut ec ons i der at i on.Theac twast her es ul tnotoft hepr omi s ebutoft heCol l ec t or ’ sor der . Thust oc ons t i t ut eagoodc ons i der at i on,ac torabs t i nenc emus tbeatt h edes i r eoft hepr omi s or .
Acts done at re;uest Anac tdoneatt hepr o mi s or ’ sdes i r ef u r n i s hesagoodc ons i der at i onf orhi spr omi s ee v ent houghi ti sofno p er s on als i g ni fi c an ceo rb en efi tt oh i m. KedarNat hvGor i eMohamed I twast h oughtadv i s abl et oer ec tat o wnhal l atHowr ahpr o vi deds uffic i ents ubs c r i p t i o nc oul dbego tt oge t herf or t h ep ur p os e.T ot h i sen dt h eCo mmi s s i o ne r sofHo wr a hmu ni c i p al i t ys eto utt owo r kt oob t a i nne ce ss ar yf u nd sb y publ i cs ubs c r i p t i on.Thedef enda ntwasas ubs c r i bert ot h i sf undf orRs . 100ha vi n gs i gn edhi snamei nt he s ubs cr i pt i onbookf ort heamount .Ont hef ai t hoft hepr omi s eds ubs cr i pt i ons ,t hepl ai nt i ffent er edi nt oac ont r ac t
wi t hac ont r ac t orf ort hepur pos eo fbui l d i ngt hehal l .Butt hede f endantf ai l edt op ayt heamoun tandc ont e nded t hatt her ewasnoc ons i der at i onf ort h i spr o mi s e. Hewa she l dl i a bl e .Pe r s o nswe r eas k e dt os ub s c r i b ek n owi n gt h ep ur p os ef o rwh i c ht h emo ne ywa st obe appl i ed,t he yk newt hatont hef ai t hoft hei rs ubs cr i pt i onanobl i gat i onwast obei nc ur r edt opa yt hec ont r ac t orf or t hewor k .Thepr omi s ei s :‘ I nc ons i der at i onofy ouragr eei ngt oent eri nt oac ont r ac tt oer ec t ,Iunder t ak et os uppl y mone yf ori t . ’ Theac toft hepl ai nt i ffi nent er i ngi nt oc ont r ac twi t ht hec ont r ac t orwasdoneatt hedes i r eoft he def endant( t h epr omi s or )s oast oc ons t i t ut ec ons i der at i onwi t hi nt heme ani ngofSec t i on2( d) .
!roises of charitable nature Dor aswamiI yervAr unachal aAyyar er e pa i ro fat e mp l ewa si np r o gr e s s .Ast h ewo r kpr o c ee de d,mo r emo ne ywa sr e qu i r e da ndt or a i s e F a c t s:Th t hi smone ys ubs cr i pt i onswer ei nv i t edandas ubs cr i pt i onl i s tr ai s ed.Thedef endantputhi ms el fdownont hel i s tf or Rs .125andi twast or ec ov ert hi ssum t hatt hes ui twasfil ed.Thepl ai ntf oundt hec ons i der at i onf ort hepr omi s e asar el i anc eont hepr omi s eoft hes ubs cr i bert hatt heyha vei nc ur r edl i abi l i t i esi nr epai r i ngt het empl e. :Th el e ar nedj udgehel dt hatt her ewasnoev i denc eo fan yr eque stb yt hes ubs c r i be rt ot hepl ai nt i fft o Judgment dot het empl er epai r s .Si nc e,t het emp l er epai r swer eal r eadyi npr ogr e sswhent hes ubs c r i pt i onswer ei n vi t ed. Th ea ct i o nwa sn oti n du ce db yt h ep r o mi s et os ub sc r i b eb utwa sr a t h eri n de pe nd en to fi t .He nc e,n or e co v er ywa s a l l o we d.
Unilateral "roises Auni l at er al pr o mi s ei sapr omi s ef r om onesi deonl yandi si nt endedt oi nd uc es omeac t i onbyt heot he rp ar t y . Thep r o mi s eei sno tboundt oac t ,f orhegi v esnopr omi s ef r om hi ss i de.Buti fhec ar r i esoutt heac tde si r edb y t hepr omi s or ,heca nhol dt h epr omi s ort ohi spr omi s e.“ Anac td oneatt her eques toft h eoff er o ri nr es pons et ohi s pr omi s ei scons i der at i on,an dc ons i d er at i oni ni t ses s enc ei sno t hi nge l s ebu tr es pons et os uc har eques t . ” AbdulAzi zvMasum Al i Th ed ef e nd an tp r o mi s e dRs . 5 00 t oaf u nds t a r t e dt or e bu i l damo s qu eb utn ot h i n gh adbe endo net oc ar r yo ut t her epai r sandr ec ons t r uc t i on.Thes ubs cr i berwas ,t her ef or e,hel dnotl i abl e.
!roissory Esto""el and go-ernent agencies I nPour na miOi lMi l l svSt a t eofKe r a l a , t h eGo v er n me ntwa sn otp er mi t t e dt og ob ac koni t sea r l i e rp r o mi s eo f wi d ere x emp t i o nf r o ms al e st a xi np us ua nc eo fwh i c hc er t a i ni n du st r i e swe r es etu p.As ub se qu en tn ot i fi c at i o n c ur t ai l i ngt hee xempt i onwashel dt obeappl i c abl et oi ndus t r i eses t abl i s hedaf t ert henot i fi cat i on.Apr omi s ewhi c h i sagai ns tpubl i cpol i c yori nv i ol at i onofas t at ut or yp r o hi bi t i onc annotbet hef oundat i onofanes t oppel .
Esto""el of licensee
Ap er s onwh oh adac qu i r e dt i t l et ot h el a ndo faCo un ci l b ya dv e r s ep os s es s i o n,a gr e eds ub se qu en t l yt oh ol dt h e s ameu nd erat e r ml i c en sef r o mt h eCo un ci l .Ont h ee x pi r yoft h et e r m,t h eCo un ci l t o l dh i mt oh an d o v erpos s es s i on Het r i edt oas s er thi st i t l ebyadv er s epos s es s i on.Hewasno tal l o we dt odoso.What e v err i ght s h ea c qu i r e db ec a mes ub s t i t u t e du nd ert h en ewa r r a ng eme ntwh i c hhev ol u nt a r i l ya c c ep t e d.Th en ew a r r a ng eme ntc on s t i t u t e dap r o mi s s or yes t o pp el a ga i ns th i m.
!ri-ity of Contract and of Consideration B!roisee or any other "erson I tmeanst hatasl ongast her ei sac ons i der at i onf orap r o mi s e,i ti si mmat er i al wh ohasf ur ni s hedi t .I tma ymo v e f r om t h epr omi s ee,or ,i ft hepr omi s orhasnoobj ec t i on,f r om an yo t herper s on. Dut t onvPool e F a c t s:Aper s onhadadaught ert omar r yandi nor de rt opr o vi deherama r r i agepor t i on,hei nt endedt osel l a wo odo fwh i c hh ewa sp os s es s eda tt h et i me .Hi ss on( t h ed ef e nd an t )p r o mi s edt h ati f“ t h ef a t h erwo ul df o r b e art o s el l athi sr eques thewoul dpa yt hedaught er£1000. at h erac c or d i ng l yf or bor ebutt h edef endantdi dno t ″ Thef p ay . Th ed au gh t e ra ndhe rh us b an ds u edt h ed ef e nd an tf o rt h ea mo un t . Judgment :Th ec ou r th el dt h ati fama ns ho ul ds a y ,‘ Gi v emeah or s e,Iwi l l g i v ey o urs on£ 10 h es onma yb r i n g ′ ,t t heac t i on,bec au set heg i f twasupont hec ons i der at i onofap r o fi tt ot hes on,andt hef at heri sobl i gedb ynat u r a l aff ec t i ont opr o vi def orhi sch i l dr en.Ther ewassuc happar entc ons i der at i onofaff ec t i onf r om t hef at hert ohi s c hi l dr en,f orwhom nat u r eobl i geshi mt opr o vi de ,t ha tt hec ons i der at i onandpr omi s et ot hef at herma ywel l e xt end t ot hec hi l dr en. Thewhol eobj ec toft heagr eementwast opr o vi d eapor t i ont ot hepl ai nt i ff .I twoul dha v ebeenhi ghl yi ne qui t abl e t oal l o wt hes ont ok eept hewoodandy e tt odepr i v ehi ssi s t erofherpor t i on.Hewasac c or di ngl yhel dl i abl e.
!osition of beneficiary +ho is not "arty Tweddl evAt ki nson –a spe rEn gl i s hLa w Fa ct s:Thepl ai nt i ffwast obemar r i edt ot hedaught erofoneG andi ncons i der at i onoft hi si nt endedmar r i ageG andt hepl a i nt i ff ’ sf at herent er e di n t oawr i t t enagr eementb ywhi c hi twasagr eedt hateac hwoul dpa yt hepl ai nt i ff as um o ft h emo ne y .G f a i l e dt od os oa ndt h ep l a i n t i ffs ue dh i sex e c ut o r s . Cour tHel d:Al t hought hes ol eobj ec toft hec ont r ac twa st os ec ur eabenefi tt ot hepl ai nt i ff ,hewasno tal l o wedt o s ueast hec ont r a ctwasmadewi t hhi sf at h erandn otwi t hhi m.I twashel dt hatnos t r angert ot hec ons i der at i on c ant a k ea dv a nt a geo fac on t r a ct ,a l t h ou ghma def o rh i sbe ne fit . Th ec as el a i dt h ef o un da t i o no fwh ats ub se qu en t l yc amet obek no wnast h ed oc t r i n eo fP “r i vi t yofcont r act “ , whi c hmeansac ont r ac ti sac ont r ac tbe t weent hepar t i esonl yan dnot hi r dper s oncansueuponi te v eni fi ti s a v o we dl yma def o rh i sb en efi t . Dunl opPneumat i cTyr eCovSel f r i dge& Co. F a c t s:Pl a i n t i ff s( Du nl o p&Co )s o l dc er t a i ngo od st oon eDe w &Coan ds e c ur e da na gr e eme ntf r o mt h em n ott o s el l t h egoodsbel o wt hel i s tpr i c eandt hati ft he ys ol dt hegoodst oano t hert r ade rt he ywoul dobt ai nf r o m hi ma s i mi l arunder t ak i ngt oma i nt ai nt hepr i c el i s t .De w &Cos ol dt hemo t ort y r est ot hedef endant s( Sel f r i dge&Co) whoagr eednott os el l t het y r est oan ypr i v at ec us t omeratl es st hant hel i s tpr i c es .Thepl ai nt i ffssuedt he def endant sf orbr eac hoft hi scont r ac t . Cour tHel d:As s umi ngt hatt hepl ai nt i ff swer eundi s c l os edpr i nc i pal s ,nocons i der at i onmo v edf r om t hem t ot he d ef e nd an t san dt h att h ec on t r a ctwa sun en f o r c ea bl ebyt h em.On l yape r s o nwh oi sapa r t yt oac on t r a ctc ans ue
oni t .I tc annotbec onf er r edonas t r angert oac ont r ac tasar i ghtt oenf or c et hec ont r ac ti nper s onam.Al s oi fa p er s onwi t hwh om ac on t r a ctn otu nd ers ea lh asb ee nma dei st obeab l et oen f o r c ei t ,c on si d er a t i o nmu sth av e g i v e nb yhi m.
undaental "ro"ositions of English la+ 1.
Consi der at i onmust mov ef r om t hepr omi seeandt hepr omi seeonl y .
2 .
Ac o n t r a c tc a n no tb een f o r c e dbyap e r s o nwh oi sn o tap ar t yt oi te v e nt h ou ghi ti sma def o rh i sb e ne fi t .
!ri-ity of consideration I nI ndi a,t hev i ewi soppos i t eoft hef undament al pr opos i t i onsofEngl i s hl a w.Ac or di ngt oSec t i on2( d) ,i ti snot n ec es s ar yt h atc on si d er a t i o ns ho ul db ef u ni s he db yt h ep r o mi s ee .Ap r o mi s ei sen f o r c ea bl ei ft h er ei ss ome c ons i der at i onf ori tandi ti squi t ei mmat er i a lwhet heri tmo v esf r om t hepr omi s eeoran yo t herper s on. Chi nnayavRamay ya Anol dl a dy ,b ydeedofgi f t ,mad eo v erc er t ai nl andedpr oper t yt ot h edef endant ,herdaught er .Byt het er msoft he deed,whi c hwasr e gi s t er ed,i twass t i pu l at edt hata nannui t yofRs . 653s houl dbepai de ver yy eart ot hepl ai nt i ff , wh owa st h es i s t e ro ft h eo l dwo ma n.Th ed ef e nd an to nt h es a med aye x ec u t e di np l a i n t i ff ’ sf a v o ura na gr e eme nt pr omi s i ngt ogi v eeff ec tt ot hes t i pul at i on.Theannui t ywashowe v erno tp ai dandt hepl ai nt i ffs uedt or ec ov eri t . I twashel dt hatt hedeedofg i f tandt hedef end ant ’ spr omi s et opa yt heannui t ywer eex e cut edsi mul t aneous l y and,t her ef or e,t h eys houl dber e gar dedasonet r ans ac t i onandt her ewa ss uffic i entc ons i der at i onf ort hat t r ans ac t i on.
!ri-ity of contract Ther ul eof“ Pr i v i t yofc ont r ac t ”meantas t r angert oc ont r ac tc anno ts uehast ak enfi r mr oo t si nt heEngl i s h Co mmo nL aw.Bu ti th asbe enge ne r a l l yc r i t i c i s ed . L or dDe nn i n go bs er v e dt h atwh er eac on t r a cti sma def o rt h eb en efi to fat h i r dpe r s o nwh oh asal e gi t i ma t e i nt er es tt oenf or c ei t ,i tc anbeenf or c edb yt het hi r dper s oni nt henameoft hec ont r ac t i ngpar t yorj oi nt l ywi t hhi m or ,i fher ef us est oj oi n,b yaddi nghi m asade f endant .Thet hi r dpe r s o nhasar i ghta r i s i ngb ywa yofc ont r a ctand hi si nt er es twi l l bepr ot ec t edbyl aw. Beswi ckvBeswi ck F a c t s:Bwa sac oa lme r c ha nt .Th ed ef e nd an twa sas s i s t i n gh i mi nhi sb us i n es s .Be nt e r e di n t oanag r e eme nt wi t ht h ed ef e nd an tb ywh i c ht h eb us i n es swa st ob et r a ns f e r r e dt ot h ed ef e nd an t .Bwa st ob ee mp l o y edi ni ta sa c ons ul t antf orhi sl i f eandaf t erhi sdeat h,t hedef endantwast opa yt ohi swi do w anannui t yof£5perweek ,whi c h wa st oc o meo uto ft h eb us i n es s .Af t e rB’ sde at h ,t h ed ef e nd an tp ai dB’ swi d owo nl yon es u mo f£ 5.Th ewi d ow b r o ug hta na ct i o nt or e co v ert h ea r r e ar soft h ea nn ui t yan da l s ot og ets pe ci fi cpe r f o r ma nc eo ft h ea gr e eme nt . Cour tHel d:Thats hewasent i t l edt oenf or c et heagr eement .Thu s,t hepl ai nt i ffwasal l o wedt oenf or c et he a gr e eme nti nh erp er s on alc ap ac i t y , a l t h ou ghs hewa sn otap ar t yt oi ta ndi twa sc on si d er e dn otn ec es s ar yt o i nf erat r us ti nf av ouroft hepl ai nt i ff.
Pos i t i oni nI ndi a:dec i s i onsf ol l owi ngEngl i s hl aw
Dec i s i onsnotf ol l owi ngEngl i s hl a w
Su pr e meCo ur tu ph ol d sPr i v i t y
E/ce"tions to !ri-ity rule
Benefici ar i esundert r ustorchar georot herar r angement s :Ap er s o ni nwh os ef a v o urac ha r g eo r o t heri nt er es ti nsomespec i fi cpr oper t yhasbeencr eat edma yenf or c ei tt houghhei sno tapa r t yt ot he c o n t r a c t .
Ma r r i a gese t t l e me nt ,pa r t i t i onorot he rf a mi l yar r a nge me nt s :Wher eanagr eementi smadei n c onnec t i onwi t hmar r i age,par t i t i onoro t herf ami l yar r angementandapr o vi s i oni smadef ort hebenefi tofa p er s on ,h ema yt a k ea dv a nt a geo ft h ata gr e eme nta l t h ou ghh ei snop ar t yt oi t .
Acknowl edgementorest oppel :Wh er eb yt h et e r msofac on t r a ctap ar t yi sr e qu i r e dt oma k ea pa ymentt oat hi r dper s onandheac k nowl edgesi tt ot hatt hi r dper s on,ab i nd i ngobl i g at i oni si nc ur r edt o war ds h i m.Ac k n o wl e dg me n tma yb ee x p r e s so ri mp l i e d .
Covenant sr unni ngwi t hl and :Ther ul eofpr i v i t yma yal s obemodi fi edb yt hepr i nc i pl esr el at i ngt o t r an sf erofi mmo v abl ep r o per t y .
BD9as ?one or Abstained fro ?oingD !ast Consideration Th ep r o mi s ei st op ayf o rawh ol l ypa s ta cta ndi snomo r et h ana ne x pr e ss i o no fg r a t i t u de .Th ep as ta ctma y e x pl a i nwh yt h ep r o mi s ewa sg i v e na ndma yb eamo t i v ef o rt h ep r o mi s e,b utf u r n i s he sn ol e ga lc on si d er a t i o n. Mc Ar dl e ,I nr e : F a c t s:Ae ffe ct e dc er t a i ni mpr o v eme nt st op r o per t y . Th eu l t i ma t eb en efi c i a r i e so ft h ep r o per t ysi g ne dad oc ume nt dec l ar i ngt hat :“ I nc ons i der at i onofy ourc ar r y i ngoutc er t ai nal t er at i onsandi mpr o vement s ,wet hebenefi ci ar i es s h al l r e pa yt oy o ut h es u mo f£ 48 8i ns e t t l e me nto ft h ea mo un ts p en to ns u c hi mp r o v e me nt s . Cour tHel d:Th ata st h ewo r kh adal l b ee nd on ea ndno t h i n gr e ma i n edt obedo nebyt h ep r o mi s eeata l l ,t h e c ons i der at i onwaswho l l ypas tc ons i der at i onandt hebenefi c i ar i es ’agr eementf ort her epa ymentt ohe routoft he e s t at ewa sn ud um p ac t u m,ap r o mi s ewi t hn oc on si d er a t i o nt os up por ti t .Th us ,t h ea ct i o nt oe nf o r c et h ep r o mi s e wa sr e j e ct e d.
Pa s ta cta tr e que stgoodc ons i de r a t i on :Ex c ept i ont ot hepas tc ons i der at i oni nt heEngl i s hl a wi st hat apa stac tdoneatr eques twi l l begoodc ons i der at i onf oras ubs equentpr omi s e.I ft hev ol unt ar yc ou r t es ywer e mo vedb yar eques toft hepar t yt hatgi v est hepr omi s e,i twi l l bi nd,f ort hepr omi s e.
Ot he re x c ept i onsa r e :Ap r o mi s et opa yat i me b a r r e dd eb ta ndan eg ot i a bl ei n s t r u me nti s s ue df o ra pas tc ons i der at i onar ebot hv al i d.
!osition in India I nI ndi a,apa stc ons i de r a t i o nma ya r i s ei nt wowa y s.I tma yc ons i s to fs er v i c esr ender edatr eques tbutwi t hout an ypr omi s eatt het i meori tma yc ons i s tofv ol unt ar yser v i c es .
Pa stv ol unt a r ys er v i c e :Av o l u nt ar ys er v i c eme an sase r v i c er e nd er e dwi t h ou ta nyr e qu es to rp r o mi s e a ndt h er ei sas ub se qu en tp r o mi s et opa yf o rt h es ame .E. g . ,“ I fAs a v esBf r o md r o wn i n ga ndBl a t e r pr omi s esAar e war d. ”I nI ndi a,t hepr omi s ewoul dbeenf or c eabl ebyv i r t ueofSec t i on25( 2)whi c hpr o vi des t h atap r o mi s et oc omp en sat ewh ol l yori np ar t ,ap er s onwh oh asal r e ad yv o l u nt a r i l ydo nes ome t h i n gf o rt h e pr omi s ori senf or c eabl e.
b Pa sts er v i c ea tr e que st :
!ast and e/ecuted consideration E/ecutory Consideration
B$uch Act, Abstinence or !roise is called Consideration Consideration ust be of soe -alue
Co ns i d er a t i o na sd efi n edi nt h eAc t ,me an ss o mea c t ,a bs t i n en c eo rp r o mi s eo nt h ep ar to ft h ep r o mi s e eo ra n y o t h erwh i c hh asbe end on ea tt h ed es i r eo ft h ep r o mi s or .E. g . , Apr omi s est ogi v ehi sne w Rol l s Ro y cec art oB,pr o vi de dBwi l lf e t c hi tf r om t heg ar age. Thea ctoff e t c hi ngt hec arc anno tb yan ys t r e t c hofi mag i na t i onbec al l edac ons i d er at i onf ort hepr omi s e.Ev en t houghi ti st heonl yac t ,t hepr omi s ordes i r edt hepr omi s eet odo.Suc hanac tnodoubts at i s fi est h ewor d soft he defi ni t i on,buti tdoesnotc at c hi t sspi r i t .I ti sf ort hi sr e as ont hatEngl i s hc ommonl awi ns i s t edt hat“ c ons i der at i on mus tbeofs omeval uei nt heey esoft hel a w. ”I tmus tber e al andno ti l l us or y ,whe t heradequ at eorno tasl ongas t hec ons i der at i oni snotunr eal ,i ti ssuffici enti fi tbeofs l i ghtv al ueonl y .
>alue need not be ade;uate &ade;uacy of consideration' I ti sno tn ec es s ar yt h atc on si d er a t i o ns ho ul db ea de qu at et ot h ep r o mi s e.Th ec ou r t sc an no ta ss umet h ej o bo f s et t l i ngwhats houl dbet heappr opr i at ec ons i der at i onf orapr omi s e.I ti supt ot hepar t i es .
Inade;uacy as e-idence of i"osition Th ea cti nEx pl a na t i o n2t oSe ct i o n2 5s t a t e st h at“ i n ad eq ua cyofc on si d er a t i o nma yb et a k eni n t oa cc ou ntb yt h e c our ti nde t er mi ni ngt hequ es t i o nwhe t hert hec ons entofpr omi s orwasf r eel ygi v en.E. g. , Aa gr e est os el l ah or s ewo r t hRs . 1 00 0f o rRs . 1 0.Ad en i e st h ath i sc on se ntt ot h ea gr e eme ntwa sf r e el ygi v e n. Thei nad equac yoft hec ons i der at i oni saf ac twhi c ht hec our ts houl dt ak ei nt oac c oun ti nco ns i de r i ngwhe t heror no tA’ sc ons entwasf r eel ygi v en.
orbearance to sue Fo r b e ar a nc et os ueh asal wa y sb ee nr eg ar d eda sv a l u ab l ec on si d er a t i o n.I tme an st h att h ep l a i n t i ffh asac er t a i n r i ghtofa ct i onaga i ns tt hedef e ndantoran yo t herper s onandonapr omi s eb yt hedef en dant ,her e f r ai n sf r om br i ngt heac t i on.
Co"roise good irres"ecti-e of erits Co mpr o mi s eofape nd i n gs ui ti sago odc on si d er a t i o nf o rt h ea gr e eme nto fc ompr o mi s e.Bu tt h ed i s pu t es ho ul d bebonafid e.Ac ompr omi s ei sagoodcons i der at i on“ i r r es pec t i v eo fmer i t soft hecl ai m ofei t hers i de”andev en wher et her ei ssomedo ubti nt hemi ndsoft hepar t i esast ot hei rr es pec t i v er i ght s .
!erforance of E/isting ?uties !erforance of legal obligations Co ns i d er a t i o nmu s tb es o me t h i n gmo r et h anwh att h ep r o mi s e ei sal r e ad yb ou ndt od o.Pe r f o r ma nc eo fal e ga l dut yi snoc ons i der at i onf orapr omi s e.
!erforance of contractual obligations
A.Pr e e x i s t i ngCont r a ctwi t hPr omi s or :Compl i anc ewi t hl eg al obl i g at i oni mp os edb yac ont r ac twi t h t h ep r o mi s orc anb en oc on si d er a t i o nf o rapr o mi s e.
Pr omi set opayl esst hanamountdue :Ap r o mi s et opa yl e sst h anwh ati sd ueun de rac on t r a ctc an no t b er e ga r d edasac on si d er a t i o n.
E/ce"tions to the
Par t paymentbyThi r dPar t y :Pa r t p ay me ntb yat h i r dp ar t yma ybeag oo dc on si d er a t i o no ft h ewh ol e oft hedebt .
2.
Composi t i on:
3.
Paymentbef or et i me :
4.
Pr omi ssor yest oppel :
Pos i t i onunderI ndi anCont r ac tAc tdi ff er ent B.Pr ee xi s t i ngCont r ac twi t hThi r dPar t y
Consideration and oti-e Cons i der at i ons houl dbed i s t i ngui s hedf r om mo t i v eorapi ousdes i r et of ul fi lanobl i g at i on.“ Mo t i v ei sno tt hes ame t hi ngwi t hc ons i der at i on. ” ThomasvThomas F a c t s:“ At es t at or ,ont hedeat hofhi sdeat h,hadv er bal l ysai di nf r ontofwi t nes sest hathewasdes i r oust hathi s wi f es houl denj o yc er t ai npr emi s esf orherl i f e.Thee x ec ut or s ,whower eal s ot h eas s i gnees ,“ i nc ons i der at i onof s uc hde si r ean do ft h ep r e mi s es , ”a gr e edwi t ht h ewi d owt oc on v eyt h ep r e mi s est ohe rp r o v i d edsh ewo ul dpa yt o t h ee x ec ut or st h es um o f1po un dy e ar l yt o wa r d st h eg r o un dr e nta ndk ee pt h es ai dho us ei nr e pa i r . Cour tHel d:Ont h eq ue s t i o no fc on si d er a t i o nf o rt h ea gr e eme ntb et we ent h ee x ec ut o r sa ndt h ewi d owt h ec ou r t poi nt edoutt hatt hemot i v ef ort heagr eementwas ,unques t i onabl y ,r es pec tf ort hewi s hesoft het es t at or .Butt hat wasnopar toft hel eg alc ons i der at i onf ort heagr eement .Mo t i v eshoul dno tbeconf oundedwi t hc ons i der at i on. Th ea gr e eme ntwa s ,h owe v e r ,h el dt obeb i n di n ga st h eu nd er t a k i n gt op a yt h eg r o un dr e ntwa sas u ffic i e nt c ons i der at i on.
E/ce"tions to Consideration Contracts under seal in English 6a+ I nEngl i s hl a w ac ont r ac tund ers eal i senf or c eabl ewi t ho utc ons i d er at i on.I nt hewor dsofAns on:“ ” Engl i s hl a w r ec ogni s esonl yt woki ndsofc on t r ac t ,t h ec ont r ac tmadebydee dt h ati sunders eal ,whi c hi sc al l e dadeedor s pec i al i t y ,andt hes i mpl ec ont r ac t .Ac ont r a ctunders eal meansac ont r ac twhi c hi si nwr i t i ngandwhi c hi s s i gned,s eal edandde l i v er ed.
E/ce"tions under $2=, Contract Act – in India 2 5.Anag r e eme ntma dewi t h ou tc on si d er a t i o ni sv o i dun l e ss–
( 1 )i ti si nwr i t i ngandr egi s t er ed
( 2 )o ri sap r o mi s et oc o mp en s at ef o rs o me t h i n gd on e
1.
Na t ur a ll o veanda ffe ct i on :Awr i t t e na ndr e gi s t e r e da gr e eme ntb as edo nn at u r a ll o v ea nda ffe ct i o n be t weennearr el at i v esi senf or c eabl ewi t h outc ons i der at i on.E. g. ,Af ami l ys et t l ementbe t weenamanandhi s wi f ewa sma def o rp r o v i d i n gma i n t e na nc et owi f e .Th i swa she l dt obeen f o r c ea bl ebe ca us ei twa sme an tf o r der i v i ngsat i s f ac t i onandpea ceofmi ndf r om f ami l yhar mony .
2.
Pa stv ol unt a r ys er v i c e :Ap r o mi s et oc o mp en s at ewh ol l yori np ar t ,ap er s o nwh oh asal r e ad y v ol unt ar i l ydonesomet hi ngf ort hepr omi s or ,i senf or c eabl e.
3.
Ti mebarr eddebt :Ap r o mi s et opa yat i me b a r r e dd eb ti sen f o r c ea bl e .Th ep r o mi s es ho ul db ei n wr i t i ng.I ts houl dal s obes i gnedbyt hepr omi s ororbyhi sagentgener al l yors pec i al l yaut hor i s edi nt hat behal f .
ift actually ade #$ 2= &E/"ln I'( Thepr o vi s i onsast ocons i der at i ondono taff ec t ,asbe t weendonoranddonee,t hev al i di t yofan ygi f twhi c hhas a c t u al l ybe enma de .Ag i f to fmo v a bl e swh i c hh asbe enc o mp l e t e db yd el i v e r yan dg i f to fi mmo v a bl ewh i c hh as beenper f ec t edb yr egi s t r at i onc annotbeques t i onedast ot hei rv al i di t yonl yont hegr oundofl ac kof c o ns i d er a t i o n.Th eyma yb eq ue s t i o ne do t h er wi s e .Wh er eag i f to fp r o pe r t ywa sma deb yr e gi s t e r e dd ee da nd at t es t edbyt wowi t nes s es ,i twasno tal l o wedt obeques t i o nedbyt hedonoro nt h egr oundt hats hewast hevi c t i m off r audwhi c hs hewasno tabl et oes t abl i s h.
6EA6
business transactions of -contract. They are as follows& Indian 'ontract (ct,)*+
•
'onsumer rotection (ct,)*/
•
Information Technology (ct,000
•
Indian 'opyright (ct,)#+ 1ike any other types of business, -contract business also works on the basis of contracts. It is therefore, structured by the Indian 'ontract (ct, )*+. (ny valid and legal -contracts can be designed, completed, and enforced as parties replace paper documents with electronic parallels. "/$ The contracts are move in between the service providers or sellers and buyers. arlier, there was no definite law to regulate the intermediaries such as verification service providers and shipping service providers to safeguard that the product or service is actually delivered. %owever, the government has recently ac2uainted the Information Technology 3Intermediaries 4uidelines5 6ules 0))."+$ The actual scope of the security provided under these regulations would only be known after 7udicial interpretation of the provisions. %owever, now it has been e!plained that even foreign intermediaries delivered to provide service can be sued in India. "*$ The payment gateways which footing a very important position as the primary processor of the payment for the merchants were brought into the legal framework after proclamation of the ayment and settlement 8ystems (ct, 00+ 388 (ct, 00+5. The 88 (ct, 00+ as well as the ayment and 8ettlement 8ystem 6egulations, 00* made under the (ct came into effect from (ugust ), 00*. "$ 9urther, the 6eserve :ank of India, issued additional guidelines initiating all such gateways and payments processors to register under the said act. The authority of the transactions of -contract is established under the Information Technology (ct, 000 3IT (ct, 0005. It e!plains the reasonable mode of acceptance of the offer. IT (ct, 000 also rules the revocation of offer and acceptance.")0$ %owever, definite provisions that regulate -contract transactions conducted over the internet, mobile phones, etc. are vague. W ith numerous cross border transactions also being conducted over the internet, specific law guarding the Indian customers and Indian businesses are essential and Indian laws are gravely insufficient on this issue. In a bid to safeguard security, the government has made digital signatures necessary in several contract transactions mainly in the government to government 3445 or government to business 34:5 framework with a view to safeguarding the identity of the transacting parties. -contracts transactions on these modes re2uire digital signatures as essential parts. They are used for the verification of the electronic contracts. These are controlled by the IT (ct, 000 which provides the outline for digital signatures, their issues and verification. The (ct thus tries to safeguard that trust between both the parties is maintained through verification of identities and help prevent cybercrimes and ensure cyber security practices. "))$ In the light of the above discussion, it is to be said that the present laws in respect of the guidelines of -contract and its related operations are not suitable serving the purpose. ropagation of laws is
creating a confusion in the smooth procedures of the -contract accomplishments. 9urther, the present laws are salient on features of e-contract such as payment instrument and delivery instrument and present standard practises which have been settled by the industry. The 6eserve :ank of India, however, has tried to support the electronic payment mechanism through various orders, but such orders can only act as a stop-gap procedure. ")$ The most important order in this regard was the application of second factor verification in all Indian ayment 4ateways. 'ommonly recognised as ;erified by ;isa or sthash.1n?/'f!.dpuf
