-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
DR. RAM MANOHAR LOHIYA NATIONAL NATIONAL LAW UNIVERSITY UNIVERSI TY LUCKNOW ACADEMIC SESSION 2015-16
ROUGH DRAFT ON: “Legality Of Agreemet! T" D" Im#"!!i$le A%t!&
SU'MITTED 'Y(
UNDER THE )UIDANCE O*(
PARIMA PARIMAL L BHATT
Dr. Visalakshi Visalak shi Vegesna
Roll No.:99
Assoia!e Pro"essor
#La$%&'(TION #La$%& '(TION )B*
DR. RAM MANOHAR LOHI+A
B.A. LLB #Hons.%, #Hons.% , &'M'&T'R II
NATIONAL NATIONAL LA- UNIV'R&IT+ UNIV'R&I T+
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
ACKNOWLEDGEMENT
This draf !"#$d %" ha&e 'ee% ("ssi'$e !ih"# he )i%d s#(("r a%d he$( "f *a%+ i%di&id#a$s. I !"#$d $i)e " e,e%d *+ si%ere ha%)s " a$$ "f he*.I a* high$+ i%de'ed " Dr. Visalakshi Vegesna f"r her g#ida%e a%d "%sa% s#(er&isi"%. I a*
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
C"%e%s INTRODU(TION................................................................................................ &e!ion /0............................................................................................................. / Loss o" O12e! or Fr3s!ra!ion................................................................................0 &4ei"i gro3n5s o" "r3s!ra!ion............................................................................. 6 Des!r3!ion o" &312e!7Ma!!er...........................................................................6 (hange o" (ir38s!anes.................................................................................. Non7o3rrene o" (on!e84la!e5 'en!...........................................................9 Dea!h or Ina4ai!; o" Par!;..............................................................................9 Goern8en! or Legisla!ie In!eren!ion..........................................................<= In!eren!ion o" -ar..........................................................................................<> '""e!s o" "r3s!ra!ion........................................................................................... Fr3s!ra!ion &ho3l5 no! 1e &el"7in53e5........................................................... Fr3s!ra!ion O4era!es A3!o8a!iall;.................................................................< A523s!8en! o" Righ!s #Res!i!3!ion%..................................................................... (ON(LU&ION...................................................................................................
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
INTRODUCTION( &e!ion /0 o" !he In5ian (on!ra! <6> 5eals $i!h agree8en!s !o 5o i84ossi1le a!s. I! la;s 5o$n !ha! agree8en!s !o 5o i84ossi1le a!s in i!sel" is a oi5 agree8en! an5 !ha! !he la$ 5oes no! o84el an;one !o 5o i84ossi1le a!s. I" a on!ra! is s3h !ha! 53e !o 3n"oreseen ir38s!anes, i!*s 4er"or8ane 1eo8es i84ossi1le, !hen s3h a on!ra! 1eo8es oi5. I" in s3h a on!ra!, !he 4ro8isor kne$ or $i!h reasona1le 5iligene 8igh! hae kno$n an5 $hih !he 4ro8isee 5i5 no! kno$, !hen !he 4ro8isee 8a; ge! o84ensa!ion "or an; loss 53e !o non 4er"or8ane o" !he a!. &4ei"i gro3n5s on $hih !he a! 8a; 1eo8e i84ossi1le inl35e Des!r3!ion o" s312e! 8a!!er, (hange o" (ir38s!anes, Non7o3rrene o" (on!e84la!e5 'en!, Dea!h or Ina4ai!; o" Par!;, Goern8en! or Legisla!ie In!eren!ion, In!eren!ion o" -ar. In !he "ollo$ing 4ages $e $ill 1e 5is3ssing !his se!ion in 5e!ail $hile s!35;ing so8e e@a84les an5 also look a! relean! ases $here !his se!ion $as a44lie5.
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
Sei"% 01 &e!ion /0 "irs! la;s 5o$n !he si84le 4rini4le !ha! an agree8en! !o 5o an a! i84ossi1le in i!sel" is oi5. For e@a84le, an agree8en! !o 5isoer a !reas3re 1; 8agi, 1eing i84ossi1le o" 4er"or8ane, is oi5. The seon5 4aragra4h o" &e!ion /0 la;s 5o$n !he e""e! o" s31se3en! i84ossi1ili!; o" 4er"or8ane. &o8e!i8es !he 4er"or8ane o" a on!ra! is 3i!e 4ossi1le $hen i! is 8a5e, 13! so8e een! s31se3en!l; ha44ens $hih ren5ers i!s 4er"or8ane i84ossi1le or 3nla$"3l. In ei!her ase !he on!ra! 1eo8es oi5. -here, "or e@a84le, a"!er 8aking a on!ra! o" 8arriage, one o" !he 4ar!ies goes 8a5, or $here a on!ra! is 8a5e "or !he i84or! o" goo5s an5 !he i84or! is !herea"!er "or1i55en 1; a Goern8en! Or5er, or $here a singer on!ra!s !o sing an5 1eo8es !oo ill !o 5o so, !he on!ra! in eah ase 1eo8es oi5. In5ian (on!ra! A! <96> 4roi5es Legal Proisions as "ollo$s :7 56. Agreement to do impossible act.—An agreement to do an act impossible in itself is void. Contract to do act afterwards becoming impossible or unlawful. — A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. Compensation for loss through non-performance of act known to be impossible or unlawful.—here one person has promised to do something which he knew, or, with reasonable diligence, might have known, and which the promisee did not know, to be impossible or unlawful, such promisor must make compensation to such promisee for any loss which such promisee sustains through the non- performance of the promise.
Illustrations (a) A agrees with B to discover treasure by magic. The agreement is void. (b) A and B contract to marry each other. Before the time fied for the marriage! A goes mad. The contract becomes void. (c) A contracts to marry B! being already married to " and being forbidden by the law to which he is sub#ect to $ractice $olygamy. A must make com$ensation to B for the loss caused to her by the non%$erformance of the $romise. (d) A contracts to take in cargo for B at a foreign $ort. A&s 'overnment afterwards declares war against the country in which the $ort is situated. The contract becomes void when war is declared. (e) A contracts to act at the theatre for si months in consideration of a sum $aid in advance by B. n several occasions A is too ill to act. The contract to act on those occasions becomes void. In the first well%known nglish case of *aradine v +ane , it was $ointed out 2 32 L4R 567
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
that subse-uent ha$$enings should not affect a contract already made. There the defendant had taken an estate on lease from the $laintiffs. The defendant was dis$ossessed of it by alien enemies for some time and! therefore! refused to $ay the rent for the $eriod of dis$ossession. It was held that when the $arty by his own contract creates a duty! he is bound to make it good! if he may! notwithstanding any accident by inevitable necessity! because he might have $rovided against it by his contract/ though the land be surrounded or gained by the sea! or made barren by wildfire! yet the lessor will have his whole rent. In the subse-uent case of Taylor v "aldwell 0 ! B1A"2B345 + laid down that the above rule is only a$$licable when the contract is $ositive and absolute! and not sub#ect to any condition either e$ress or im$lied. In !his ase !he 5e"en5an!s ha5 agree5 !o le! !he 4lain!i""s !he 3se o" !heir 83si hall 1e!$een er!ain 5a!es "or !he 43r4ose o" hol5ing a oner! !here. B3! 1e"ore !he "irs! 5a; on $hih a oner! $as !o 1e gien, !he hall $as 5es!ro;e5 1; "ire $i!ho3! !he "a3l! o" ei!her 4ar!;. The 4lain!i""s s3e5 !he 5e"en5an!s "or !heir loss. I! $as, hel5 !ha! !he on!ra! $as no! a1sol3!e, as i!s 4er"or8ane 5e4en5e5 34on !he on!in3e5 e@is!ene o" !he hall. I! $as, !here"ore, s312e! !o an i84lie5 on5i!ion !ha! !he 4ar!ies shall 1e e@3se5 in ase, 1e"ore 1reah, 4er"or8ane 1eo8es i84ossi1le 1; !he 4erishing o" !hing $i!ho3! 5e"a3l! o" !he on!ra!or
L"ss "f O'8e "r Fr#srai"% In !his ase !he 4er"or8ane o" !he on!ra! ha5 1eo8e 4h;siall; i84ossi1le 1ea3se o" !he 5isa44earane o" !he s312e!78a!!er. B3! !he 4rini4le is no! on"ine5 !o 4h;sial i84ossi1ili!ies. I! e@!en5s also !o ases $here !he 4er"or8ane o" !he on!ra! is 4h;siall; 4ossi1le, 13! !he o12e! !he 4ar!ies ha5 in 8in5 has "aile5 !o 8a!erialie. The $ell7kno$n orona!ion ases o" $hih Erell Henr; is one, ill3s!ra!es !his. The 5e"en5an! agree5 !o hire "ro8 !he 4lain!i"" a "la! "or 3ne >0 an5 >6, on $hih 5a;s i! ha5 1een anno3ne5 !ha! !he orona!ion 4roession $o3l5 4ass along !ha! 4lae. A 4ar! o" !he ren! $as 4ai5 in a5ane. B3! !he 4roession haing 1een anelle5 o$ing !o !he EingCs illness, !he 5e"en5an! re"3se5
5 92:1;< ; /.= S. :51 ; h(>??!!!.!e's"r."* 6 @23;B ./. 76sa
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
!o 4a; !he 1alane. I! $as hel5 !ha! !he real o12e! o" !he on!ra!, as reognise5 1; 1o!h on!ra!ing 4ar!ies, $as !o hae a ie$ o" !he orona!ion 4roession. The !aking 4lae o" !he 4roession $as, !here"ore, !he "o3n5a!ion o" !he on!ra!. The o12e! o" !he on!ra! $as "r3s!ra!e5 1; non7ha44ening o" !he orona!ion an5 !he 4lain!i"" $as no! en!i!le5 !o reoer !he 1alane o" !he ren!. Th3s !he 5o!rine o" "r3s!ra!ion o8es in!o 4la; in !$o !;4es o" si!3a!ion, "irs!, $here !he 4er"or8ane is 4h;siall; 3! o"", an5, seon5, $here !he o12e! has "aile5. The &34re8e (o3r! has hel5 !ha! &e!ion /0 $ill a44l; !o 1o!h kin5s o" "r3s!ra!ion. Re"erring !o !he se!ion, B E MUEH'R'A o1sere5 in &a!;a1ra!a Ghose M3g7neeran Bang3r (o / : This 83h is lear !ha! !he $or5 Ci84ossi1le* has no! 1een 3se5 here in !he sense o" 4h;sial or li!eral i84ossi1ili!;. The 4er"or8ane o" an a! 8a; no! 1e li!erall; i84ossi1le 13! i! 8a; 1e i84ra!ia1le an5 3seless "ro8 !he 4oin! o" ie$ o" !he o12e! an5 43r4ose $hih !he 4ar!ies ha5 in ie$ an5 i" an 3n!o$ar5 een! or hange o" ir38s!anes !o!all; 34se!s !he er; "o3n5a!ion 34on $hih !he 4ar!ies res!e5 !heir 1argain, i! an er; $ell 1e sai5 !ha! !he 4ro8isor "in5s i! i84ossi1le !o 5o !he a! $hih he 4ro8ise5 !o 5o. '@4laining !he one4! "r3s!ra!ion o" !he on!ra! in (rikle$oo5 Pro4er!; Ines!8en! Tr3s! L!5 Leigh!onCs Ines!8en! Tr3s! L!5, VI&(OUNT &IMON L( sai5 !ha! i! 8eans !he o3rrene o" an in!erening een! or hange o" ir38s!anes so "3n5a8en!al as !o 1e regar5e5 1; !he la$ 1o!h as s!riking a! !he roo! o" !he agree8en!, an5 as en!irel; 1e;on5 $ha! $as on!e84la!e5 1; !he 4ar!ies $hen !he; en!ere5 in!o !he on!ra!. &i8ilarl;, Lor5 -RIGHT o1sere5 !ha! "r3s!ra!ion 8eans !ha! a on!ra! has ease5 !o 1in5 !he 4ar!ies 1ea3se !he o88on 1asis on $hih 1; 83!3al 3n5ers!an5ing i! $as 1ase5 has "aile5 !here has 1een a "ail3re o" $ha! in !he on!e84la!ion o" 1o!h 4ar!ies $o3l5 1e !he essen!ial on5i!ion or 43r4ose o" !he 4er"or8ane. This 4rini4le $as a44lie5 in Parsho!a8 Das Ba!ala M3nii4al (o88i!!ee: A M3nii4al (o88i!!ee lease5 o3! er!ain !onga s!an5s !o !he 4lain!i"" "or Rs /,===. B3! no !onga 5rier a8e "or$ar5 !o 3se !he s!an5 !hro3gho3! !he ;ear an5 !he 4lain!i"" o3l5 no! realie an;!hing. He s3e5 "or !he re"3n5 o" his 8one;. I! $as hel5 !ha! !he 4lain!i"" o1!aine5 !he lease an5 !he o88i!!ee gran!e5 !he sa8e !o hi8 on !he ass384!ion !ha! !he !onga s!an5s $o3l5 1e 3se5 1; !he 5riers an5 !he 4lain!i"" $o3l5 reoer "ees "ro8 !he8, 13! "or reasons $hih 1o!h si5es o3l5 no! hel4, !he 5riers 5i5 no! 3se !he s!an5s, !he 5o!rine o" "r3s!ra!ion a44lie5 $i!h "3ll "ore. A on!ra! "or sale o" lan5 "or non7agri3l!3ral 3se $as hel5 !o hae "r3s!ra!e5 $hen !he a44lia!ion "or s3h 3se $as re2e!e5 1; !he a3!hori!ies.
S(ei gr"#%ds "f fr#srai"% The 4rini4le o" "r3s!ra!ion o" on!ra! or o" i84ossi1ili!; o" 4er"or8ane is a44lia1le !o a grea! arie!; o" on!ra!s. I! is no! 4ossi1le !o la; 5o$n an e@ha3s!ie lis! o" si!3a!ions in $hih !he 5o!rine is going !o 1e a44lie5 so as !o e@3se 4er"or8ane. The la$ 34on !he 0 AIR 2306 SC 66> 2306 SCR ;2
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8a!!er is 3n5o31!e5l; in 4roess o" eol3!ion. +e! !he "ollo$ing gro3n5s o" "r3s!ra!ion hae 1eo8e $ell es!a1lishe5.
Desr#i"% "f S#'8e-Maer The 5o!rine o" i84ossi1ili!; a44lies $i!h "3ll "ore $here !he a!3al an5 s4ei"i s312e!7 8a!!er o" !he on!ra! has ease5 !o e@is!. CTa;lor (al5$el is !he 1es! e@a84le o" !his lass. There, a 4ro8ise !o le! o3! a 83si hall $as hel5 !o hae "r3s!ra!e5 on !he 5es!r3!ion o" !he hall. &i8ilarl;, $here !he 5e"en5an! on!ra!e5 !o sell a s4ei"ie5 3an!i!; o" 4o!a!oes !o 1e gro$n on his "ar8s, 13! "aile5 !o s344l; !he8 as !he ro4 $as 5es!ro;e5 1; a 5isease, i! $as hel5 !ha! 4er"or8ane ha5 1eo8e i84ossi1le. &i8ilarl;, a on!ra! !o e@hi1i! a "il8 in a ine8a hall $as hel5 !o hae 1eo8e i84ossi1le o" 4er"or8ane $hen on ao3n! o" hea; rains !he rear $all o" !he hall olla4se5 killing !hree 4ersons, an5 i!s liene $as anelle5 3n!il !he 13il5ing $as reons!r3!e5 !o !he sa!is"a!ion o" !he hie" engineer. The o$ner $as 3n5er no lia1ili!; !o reons!r3! !he hall an5 een i" he 5i5 reons!r3! an5 i! !ook hi8 a1o3! so8e !i8e, 1; !ha! !i8e !he "il8 $o3l5 hae los! i!s a44eal. The sa8e res3l! "ollo$e5 $here a shi4 ran agro3n5. The res3l! $o3l5 also 1e !he sa8e $here !he s312e!78a!!er o" !he on!ra! !ho3gh in!a! has ease5 !o 1e aaila1le !o !he 4ar!ies. Th3s, $here a shi4 $as har!ere5 "or !$ele 8on!hs !o r3n "ro8 A4ril !o A4ril an5 1e"ore i! o3l5 1e 5eliere5, i! $as re3isi!ione5 an5 $as release5 onl; in &e4!e81er, !he Ho3se o" Lor5s hel5 !ha! !he har!ei4ar!; ha5 "r3s!ra!e5, "or a &e4!e81er !o &e4!e81er !er8 $as no! on!e84la!e5 1; !he 4ar!ies. -here !he 4ar!ies an s!ill 4er"or8 !heir 8ain o1liga!ion 5es4i!e !he "a! !ha! !he s312e!7 8a!!er has gone o3! o" !heir han5, "r3s!ra!ion 8a; no! "ollo$. Th3s, $here a shi4 $as har!ere5 "or "ie ;ears an5 !hree ;ears a"!er !ha!, i! $as re3isi!ione5 1; !he Goern8en!, !he la!!er 4a;ing 8ore 8one; !han !he "reigh! agree5 1e!$een !he 4ar!ies, i! $as hel5 !ha! !he on!ra! $as no! "r3s!ra!e5. The har!erer $as 1o3n5 !o 4a; !he "reigh! an5 !ha! he o3l5 s!ill 4a; an5, !here"ore, he $as en!i!le5 !o olle! !he 8one; "ro8 !he Goern8en!. &i8ilarl;, an agen; "or 5ealing $i!h !he goo5s 8an3"a!3re5 or sol5 1; !he 4rini4al $as no! "r3s!ra!e5 $hen !he 4rini4alCs "a!or; $as 5es!ro;e5, "or !he agen! o3l5 s!ill 5eal $i!h !he goo5s sol5 1; !he 4rini4al. In a on!ra! "or arriage o" goo5s 1; sea, !he essel sank $i!h argo. There $as ei5ene !o sho$ !ha! !he essel s!ar!e5 !aking in $a!er. -hen !he essel $as 5isoere5 !o 1e !il!ing, !he $a!er in !he 1ilge $as 4384e5 o3! 13! no a!ion $as !aken !o go !o !he neares! 4or! !o hae !he essel 1er!he5 an5 !he on5i!ion o" !he essel heke5. Ins!ea5 o" !ha!, a"!er 4384ing o3! $a!er, !he essel a!!e84!e5 !o on!in3e on i!s o3rse. The o3r! sai5 !ha! !he sinking o" !he essel o3l5 no! 1e 5esri1e5 as an inei!a1le ai5en!. Reasona1le are ha5 no! 1een !aken !o 4reen! !he sinking o" !he essel. The 5e"ene o" "r3s!ra!ion "aile5.
Cha%ge "f Cir#*sa%es
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
A on!ra! $ill "r3s!ra!e $here ir38s!anes arise $hih 8ake !he 4er"or8ane o" !he on!ra! i84ossi1le in !he 8anner an5 a! !he !i8e on!e84la!e5. This ha44ens $hen !he hange o" ir38s!anes has a""e!e5 !he 4er"or8ane o" !he on!ra! !o s3h an e@!en! as !o 8ake i! ir!3all; i84ossi1le or een e@!re8el; 5i""i3l! or haar5o3s. A on!ra!e5 !o s344l; !o B er!ain lasses an5 3an!i!ies o" A8erian 4iee7goo5s. The on!ra! $as .i.". Earahi. The goo5s arrie5 !here a"!er so8e 5ela;. B re"3se5 !o ae4! on !he gro3n5 !ha! 1o!h !he 3ali!ies an5 3an!i!ies o""ere5 "or 5elier; $ere no! aor5ing !o !he 4ar!i3lar on!ra!. A alle5 34on B !o re"er !he 5is43!e !o !he no8ina!e5 ar1i!ra!or $ho $as resi5ing a! Earahi. Then a8e 4ar!i!ion $hih 8a5e i! i84ossi1le "or non7M3sli8s !o go !o Earahi. I! $as hel5 !ha! !he on!ra! $as "r3s!ra!e5, 1ea3se !he ar1i!ra!or o3l5 4roee5 $i!ho3! !he 4ar!iesC 4resene. As agains! i!, $here a shi4 $as har!ere5 !o loa5 a argo 13! on !he 5a; 1e"ore she o3l5 hae 4roee5e5 !o her 1er!h, an e@4losion o3rre5 in !he a3@iliar; 1oiler, $hih 8a5e i! i84ossi1le "or her !o 3n5er!ake !he o;age a! !he she53le5 !i8e, !he Ho3se o" Lor5s hel5 !ha! "r3s!ra!ion ha5, in "a!, o3rre5 in !he ir38s!anes. B3! !here is no general li1er!; resere5 !o !he o3r!s !o a1sole a 4ar!; "ro8 lia1ili!; !o 4er"or8 his 4ar! o" !he on!ra!, 8erel; 1ea3se on a o3n! o" 3non!e84la!e5 !3rn o" een!s, !he 4er"or8ane o" !he on!ra! 8a; 1eo8e onero3s. The 4ar!ies !o an e@e3!or; on!ra! are o"!en "ae5, in !he o3rse o" arr;ing i! o3! $i!h a !3rn o" een!s $hih !he; 5i5 no! an!ii4a!ea $holl; a1nor8al rise or "all in 4rie, a s355en 5e4reia!ion o" 3rren;, an 3ne@4e!e5 o1s!ale !o e@e3!ion, or !he like. +e! !his 5oes no! in i!sel" a""e! !he 1argain !he; hae 8a5e. The &34re8e (o3r! lai5 5o$n !his 4rini4le in Alo4i Prasha5 Union o" In5ia. The 4lain!i""s $ere a!ing as !he agen! !o !he Goern8en! o" In5ia "or 43rhasing ghee "or !he 3se o" ar8; 4ersonnel. The; $ere !o 1e 4ai5 on os! 1asis "or 5i""eren! i!e8s o" $ork inole5. The 4er"or8ane $as in 4rogress $hen !he &eon5 -orl5 -ar in!erene5 an5 !he ra!es "i@e5 in 4eae !i8e $ere en!irel; s34erse5e5 1; !he !o!all; al!ere5 on5i!ions o1!aining in $ar !i8e. The agen!s 5e8an5e5 reision o" ra!es 13! reeie5 no re4lies. The; ke4! 34 !he s344lies. The Goern8en! !er8ina!e5 !he on!ra! in <9/ an5 !he agen!s lai8e5 4a;8en! on enhane5 ra!es. The; o3l5 no! s3ee5. Ghee haing 1een s344lie5 1; !he agen!s 3n5er !he !er8s o" !he on!ra!, !he righ! o" !he agen!s $as !o reeie re83nera!ion 3n5er !he !er8s o" !ha! on!ra!.
N"%-"#rre%e "f C"%e*($aed E&e% &o8e!i8es !he 4er"or8ane o" a on!ra! re8ains en!irel; 4ossi1le, 13! o$ing !o !he non7 o3rrene o" an een! on!e84la!e5 1; 1o!h 4ar!ies as !he reason "or !he on!ra!, !he al3e o" !he 4er"or8ane is 5es!ro;e5. Erell Henr; inole5 a si!3a!ion o" !his kin5. There, a on!ra! !o hire a roo8 !o ie$ a 4ro4ose5 orona!ion 4roession $as hel5 !o hae "r3s!ra!e5 $hen !he 4roession $as 4os!4one5. For !his res3l! !o "ollo$ i! is neessar; !ha! !he ha44ening o" !he een! sho3l5 1e !he "o3n5a!ion o" !he on!ra!.
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
This is sho$n 1; Berne Ba; &!ea8 Boa! (o H3!!on $hih also arose "ro8 !he 4os!4one8en! o" !he orona!ion. The Ro;al Naal Reie$ $as 4ro4ose5 !o 1e hel5 on !he oasion. The 5e"en5an! har!ere5 a s!ea81oa! "or !$o 5a;s !o !ake o3! a 4ar!; o" 4a;ing 4assengers "or !he 43r4ose o" ie$ing !he naal reie$ an5 "or a 5a;Cs r3ise ro3n5 !he "lee!. B3! !he reie$ $as anelle5 an5 !he 5e"en5an! ha5 no 3se o" !he shi4. +e! he $as hel5 lia1le !o 4a; !he 3n4ai5 1alane o" !he hire less !he 4ro"i! $hih !he 4lain!i"" ha5 8a5e 1; !he 3se o" !he shi4 in !he or5inar; o3rse. The o3r! sai5 !ha! !he on!ra! 5oes no! 5i""er "ro8 a ase $here, "or ins!ane, a 4erson has engage5 a 1rake !o !ake hi8sel" an5 a 4ar!; !o '4so8 !o see !he raes !here, 13! "or so8e reason or o!her, s3h as !he s4rea5 o" an in"e!io3s 5isease, !he raes are 4os!4one5.
Deah "r I%a(ai+ "f Par+ A 4ar!; !o a on!ra! is e@3se5 "ro8 4er"or8ane i" i! 5e4en5s 34on !he e@is!ene o" a gien 4erson, i" !ha! 4erson 4erishes or 1eo8es !oo ill !o 4er"or8. -here !he na!3re or !er8s o" a on!ra! re3ire 4ersonal 4er"or8ane 1; !he 4ro8isor, his 5ea!h or ina4ai!; 43!s an en5 !o !he on!ra!. Ro1inson Daison 0 is !he $ell7 kno$n ill3s!ra!ion : There $as a on!ra! 1e!$een !he 4lain!i"" an5 !he 5e"en5an!Cs $i"e, $ho $as an e8inen! 4ianis!, !ha! she sho3l5 4la; !he 4iano a! a oner! !o 1e gien 1; !he 4lain!i"" on a s4ei"ie5 5a;. On !he 8orning o" !he 5a; in 3es!ion she in"or8e5 !he 4lain!i"" !ha! she $as !oo ill !o a!!en5 !he oner!. The oner! ha5 !o 1e 4os!4one5 an5 !he 4lain!i"" los! a s38 o" 8one;. The 4lain!i""s a!ion "or 1reah o" on!ra! "aile5. The o3r! sai5 !ha! 3n5er !he ir38s!anes she $as no! 8erel; e@3se5 "ro8 4la;ing, 13! she $as also no! a! li1er!; !o 4la;, i" she $as 3n"i! !o 5o so. The on!ra! $as learl; s312e! !o !he on5i!ion o" her 1eing $ell eno3gh !o 4er"or8. &i8ilarl;, $here a <0 ;ears ol5 1o; $as engage5 "or "ie ;ears !o 4er"or8 as a 5r388er "or all !he seen nigh!s in a $eek $heneer !he 1an5 ha5 13siness an5, on ao3n! o" illness, he $as er!i"ie5 !o 1e a1le !o 4er"or8 onl; nigh!s, !he on!ra! $as hel5 !o hae 1een "r3s!ra!e5. In ano!her ase : A 4erson en!ere5 in!o serie as 8anager "or !en ;ears, an5 3n5er!ook no! !o 3n5er!ake an; 4ro"essional engage8en! $i!ho3! !he onsen! o" !he e84lo;er. Be"ore !he e@4ir; o" !en ;ears he $as alle5 34 "or 8ili!ar; serie. A"!er !he $ar he 3n5er!ook 4ro"essional engage8en!s an5 $as s3e5 1; !he e84lo;er "or 1reah o" on!ra!. I! $as hel5 !ha! !he on!ra! o" serie ha5 "r3s!ra!e5 $hen his series $ere re3isi!ione5 "or 8ili!ar; 43r4oses an5 !herea"!er he $as "ree "ro8 !he oenan!s o" !he on!ra!.
1 2:72 LR 1.
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"&er%*e% "r Legis$ai&e I%er&e%i"%
A on!ra! $ill 1e 5issole5 $hen legisla!ie or a58inis!ra!ie in!eren!ion has so 5ire!l; o4era!e5 34on !he "3l"il8en! o" !he on!ra! "or a s4ei"i $ork as !o !rans"or8 !he on!e84la!e5 on5i!ions o" 4er"or8ane. -here a en5or o" lan5 o3l5 no! e@e3!e !he sale 5ee5 1ea3se he ease5 !o 1e !he o$ner 1; o4era!ion o" la$, i! $as hel5 !ha! !he on!ra! ha5 1eo8e i84ossi1le o" 4er"or8ane. A on!ra! 1; !he &!a!e !o gie a 8ono4ol; $as hel5 !o hae 1eo8e oi5 on !he en"ore8en! o" !he (ons!i!3!ion. A on!ra! 1e!$een er!ain 4ar!ies "or !he sale o" !he !rees o" a "ores! $as 5isharge5 $hen !he &!a!e o" Ra2as!han "or1a5e !he 3!!ing o" !rees in !he area. A $ell7kno$n 'nglish a3!hori!; is Me!ro4oli!an -a!er Boar5 Dik Een (o L!5. B; a on!ra! 8a5e in 3l; <9<, a "ir8 o" on!ra!ors on!ra!e5 $i!h a -a!er Boar5 !o ons!r3! a reserior !o 1e o84le!e5 $i!hin si@ 8on!hs. B3! 1; a no!ie iss3e5 3n5er !he De"ene o" !he Real8 A!, !he on!ra!ors $ere re3ire5 !o ease $ork on !heir on!ra! an5 !he; s!o44e5 !he $ork aor5ingl;. The; lai8e5 !ha! !he e""e! o" !he no!ie $as !o 43! an en5 !o !he on!ra!. The Ho3se o" Lor5s hel5 !ha! !he in!err34!ion rea!e5 1; !he 4rohi1i!ion $as o" s3h a hara!er an5 53ra!ion as !o 8ake !he on!ra! $hen res38e5 a 5i""eren! on!ra! "ro8 !he on!ra! $hen 1roken o"", an5 !ha! !he on!ra! ha5 ease5 !o 1e o4era!ie. In ano!her ase o" !he sa8e kin5, !he on!ra! $as "or !he sale o" a s4ei"i 4arel o" $hea! l;ing in !he sellerCs $areho3se. The 4ro4er!; in !he goo5s ha5 no! ;e! 4asse5 !o !he 13;ers !ha! !he Goern8en! seie5 !he s!ok 3n5er i!s 4o$er o" s34erision. The 13;ers s3e5 "or non5elier;. B3! !he; o3l5 no! s3ee5. The sellers $ere e@3se5 "ro8 5eliering !he goo5s 1ea3se o" !he Goern8en! !akeoer o" !heir s!ok. The &!a!e Tra5ing Organisa!ion, !ho3gh a Goern8en! 8ono4ol;, $as so8e$ha! in5e4en5en! o" !he &!a!e. I!s e@4or! on!ra!s $ere hel5 !o hae "r3s!ra!e5 1; Goern8en! in!eren!ion i84osing a 1an on e@4or!s. B3! an in!eren!ion o" a !e84orar; na!3re $hih 5oes no! 34roo! !he "o3n5a!ion o" !he on!ra! $ill no! hae !he 5issoling e""e!. This is sho$n 1; !he 5eision o" !he &34re8e (o3r! in &a!;a1ra!a Ghose M3gneeran Bang3r . (o. The 5e"en5an! o84an; s!ar!e5 a she8e "or !he 5eelo48en! o" a !ra! o" lan5 in!o a ho3sing olon;. The 4lain!i"" $as gran!e5 a 4lo! on 4a;8en! o" earnes! 8one;. The o84an; 3n5er!ook !o ons!r3! !he roa5s an5 5rains neessar; "or 8aking !he lan5s s3i!a1le "or 13il5ing an5 resi5en!ial 43r4oses an5 as soon as !he; $ere o84le!e5, !he 43rhaser $as !o 1e alle5 34on !o o84le!e !he one;ane 1; 4a;8en! o" !he 1alane o" !he 43rhase 8one;. B3! 1e"ore an;!hing o3l5 1e 5one, a onsi5era1le 4or!ion o" !he lan5 $as re3isi!ione5 1; !he &!a!e 53ring !he &eon5 -orl5 -ar "or 8ili!ar; 43r4oses. MUEH'R'A hel5 !ha! !he on!ra! $as no! "r3s!ra!e5. He sai5 : Un5o31!e5l; !he o88ene8en! o" !he $ork $as 5ela;e5 13! $as !he 5ela; going !o 1e so grea! an5 o" s3h a hara!er !ha! i! $o3l5 !o!all; 34se! !he 1asis o" !he 1argain an5 o88erial o12e!s $hih !he 4ar!ies ha5 in ie$ J The re3isi!ion or5ers, i! 83s! 1e re8e81ere5, $ere, 1; !heir er; na!3re, o" a !e84orar; hara!er.... The o3r! relie5 34on !he "a! !ha! !here $as no !i8e7li8i! agree5 !o 1; !he 4ar!ies $i!hin $hih !he ons!r3!ion $ork $as !o 1e "inishe5.The e""e! o" an a58inis!ra!ie in!eren!ion
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has !o 1e ie$e5 in !he ligh! o" !he !er8s o" !he on!ra!, an5, i" !he !er8s sho$ !ha! !he 4ar!ies hae 3n5er!aken an a1sol3!e o1liga!ion regar5less o" a58inis!ra!ie hanges, !he; anno! lai8 !o 1e 5isharge5. This has 1een so hel5 1; !he &34re8e (o3r! in Naiha!i 3!e Mills L!5 Eh;alira8 aganna!h6. There $as an agree8en! !o 43rhase ra$ 23!e !o 1e i84or!e5 "ro8 'as! Pakis!an #no$ Bangla5esh%. The 13;er $as !o s344l; !he i84or! liene $i!hin Noe81er, "ailing $hih i! $as !o 1e s344lie5 $i!hin Dee81er a! !he 4ain o" a li!!le 8ore 4rie an5 i" he "aile5 in Dee81er he $as !o 4a; !he 5i""erene 1e!$een !he on!ra! an5 8arke! 4ries. The 13;er a44lie5 "or a liene $hih $as re"3se5 1ea3se he ha5 s!ok in his 8ill s3""iien! "or !$o 8on!hs. He a44lie5 again. He $as a5ise5 !his !i8e !ha! !he r3les hae 1een hange5 an5 !o o1!ain a liense he 83s! sho$ !ha! he has 3se5 an e3al 3an!i!; o" In5ian 23!e. Th3s !he 13;er "aile5 !o s344l; !he liense an5 $as s3e5 "or 1reah. He 4lea5e5 "r3s!ra!ion a3se5 1; !he hange in Goern8en! 4oli;. B3! he $as hel5 lia1le. &H'LAT 4oin!e5 o3! !ha! i" !he Goern8en! ha5 o84le!el; "or1i55en i84or!s, &e!ion /0 $o3l5 hae a44lie5. B3! !he Goern8en! 4oli; onl; $as !ha! !he liensing a3!hori!; $o3l5 sr3!inise !he ase o" eah a44lian! on i!s o$n 8eri!. -here !he in!eren!ion 8akes !he 4er"or8ane 3nla$"3l, !he o3r!s $ill hae no hoie 13! !o 43! an en5 !o !he on!ra!, This kin5 o" si!3a!ion $as 1e"ore !he &34re8e (o3r! in Boo!halinga Agenies V T ( Porias$a8i Na 5ar. The 5e"en5an! ha5 a liense !o i84or! hior; "or 8an3"a!3ring o""ee 4o$5er. The liene $as s312e! !o !he on5i!ion !ha! he $o3l5 3se i! onl; in his "a!or;. He agree5 !o sell !he $hole shi4loa5. Be"ore !he arrial o" !he shi4, !he sale o" s3h i84or!e5 goo5s $as 1anne5. The on!ra! $as aor5ingl; hel5 !o hae 1eo8e oi5.
I%er&e%i"% "f War In!eren!ion o" $ar or $arlike on5i!ions in !he 4er"or8ane o" a on!ra! has o"!en rea!e5 5i""i3l! 3es!ions. The los3re o" !he &3e (anal "ollo$ing !he AngloFrenh $ar $i!h 'g;4!, "or ins!ane, in!err34!e5 !he 4er"or8ane o" 8an; on!ra!s. One s3h ase is Tsakiroglo3 (o L!5 No1lee Thorl G 8 1 H. The a44ellan!s agree5 !o sell !o !he res4on5en!s !hree h3n5re5 !ons o" &35an gro3n5n3!s .i.". Ha813rg. The 3s3al an5 nor8al ro3!e a! !he 5a!e o" !he on!ra! $as ia &3e (anal. &hi48en! $as !o 1e in Noe81erKDee81er <9/0, 13! on Noe81er >, <9/0, !he anal $as lose5 !o !ra""i an5 i! $as no! reo4ene5 3n!il !he "ollo$ing A4ril. I! is s!a!e5 !ha! !he a44ellan!s o3l5 hae !rans4or!e5 !he goo5s ia !he (a4e o" Goo5 Ho4e. The a44ellan!s re"3se5 !o shi4 goo5s ia !he (a4e. The 3es!ion no$ is $he!her 1; reason o" !he losing o" !he &3e ro3!e, !he on!ra! ha5 1een en5e5 1; "r3s!ra!ion. The a44ellan!sC arg38en! $as !ha! 7 AIR 231: SC 055.
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i! $as an i84lie5 !er8 o" !he on!ra! !ha! shi48en! sho3l5 1e ia &3e. B3! i! $as hel5 !ha! s3h a !er8 o3l5 no! 1e i84lie5. The 3s!o8ar; or 3s3al ro3!e ia !he &3e (anal 1eing lose5, !he a44ellan!s $ere 1o3n5 1; !he &ale o" Goo5s A!, <9?, ?>#>% !o shi4 !he gro3n5n3!s 1; a reasona1le an5 4ra!ial ro3!e an5, !ho3gh !he a44ellan!s 8igh! 1e 43! !o grea!er e@4ense 1; shi44ing !he gro3n5n3!s ia !he (a4e o" Goo5 Ho4e, !ha! 5i5 no! ren5er !he on!ra! "3n5a8en!all; or ra5iall; 5i""eren!, an5 !here $as no!, !here"ore, "r3s!ra!ion o" !he on!ra!. I" !he in!eren!ion o" $ar is 53e !o !he 5ela; a3se5 1; !he negligene o" a 4ar!;, !he 4rini4le o" "r3s!ra!ion anno! 1e relie5 34on. I" !here are 8ore !han one $a;s o" 4er"or8ing a on!ra! an5 !he $ar 3!s o"" onl; one o" !he8, !he 4ar!; is s!ill 1o3n5 !o 4er"or8 1; !he o!her $a;, ho$eer inonenienen! or e@4ensie. This is "3r!her sho$n 1; !he 5eision o" !he Pri; (o3nil in T$en!she Oerseas Tra5ing (o L!5 Ugan5a &3gar Fa!or; L!5. There $as a on!ra! "or s344l;ing Er344ss!eel rails. The res! o" !he "a!s a44ear "ro8 !he "ollo$ing $or5s o" Lor5 -RIGHT: The a44ellan!s lai8e5 !ha! !he rails s4ei"ie5 3n5er !he on!ra! $ere !o 1e rails 8an3"a!3re5 1; a Ger8an "ir8 an5 1; !ha! "ir8 onl;. On !his !he; 1ase5 !heir lai8 !o 1e e@3se5 "ro8 !heir "ail3re !o 5elier !he goo5s 1ea3se !o 5o so $o3l5 hae inole5 a 5ealing $i!h alien ene8ies 53e !o !he o3!1reak o" -orl5 -ar II an5 hene !he 4er"or8ane o" !he on!ra! 1ea8e i84ossi1le an5 illegal. Their Lor5shi4s hel5 !ha! i! $as no! o4en !o !he s344lier !o inoke !he 5o!rine o" "r3s!ra!ion. There $as no!hing in !he on!ra! $hih alle5 "or !he rails !o 1e o1!aine5 "ro8 Ger8an; onl;. The re"erene !o Er344s 5i5 no! in5ia!e a so3re o" s344l;, 13! 8erel; a s4ei"ia!ion o" !he rails. There $ere 8an; o!her so3res o" s344l;, an5 !he on!ra! le"! !he s344lier $i!h a "ree han5 in !he 8a!!er. In a ase 1e"ore !he Pa!na High (o3r!, !he "3r!her 4er"or8ane o" a on!ra! o" li"e ins3rane ha5 1eo8e i84ossi1le 1ea3se !he ins3rer $as a Ger8an o84an; an5 on !he o3!1reak o" $ar i!s 13siness $as lose5 1; !he Goern8en! o" In5ia an5 !he 5is4osal o" 4en5ing 4oliies $as han5e5 oer !o a "ir8 o" har!ere5 ao3n!an!s. The ass3re5 $as allo$e5 !o reoer !he 8one; 4ai5 3n5er !he 4oli;.>= In a (al3!!a ase a on!ra! o" arriage 1; rier $as in!ere4!e5 1; !he ene8; seiing !he 1oa! along $i!h argo 53ring hos!ili!ies 1e!$een In5ia an5 Pakis!an. The o3r! allo$e5 !he arrier !he 4lea o" i84ossi1ili!;.
Ees "f fr#srai"% I! is $ell7se!!le5 !ha! i" an5 $hen !here is "r3s!ra!ion !he 5issol3!ion o" !he on!ra! o3rs a3!o8a!iall;.
Fr#srai"% Sh"#$d %" 'e Se$f-i%d#ed '@4laining !he 4rini4le !ha! "r3s!ra!ion sho3l5 no! 1e sel"7in53e5, Lor5 -RIGHT sai5 in Mari!i8e Na!ional Fish L!5 Oean Tra$lers L!5, !ha! !he essene o" C"r3s!ra!ionC is !ha! i! sho3l5 no! 1e 53e !o !he a! or ele!ion o" !he 4ar!ies. Fr3s!ra!ion sho3l5 arise $i!ho3! 1la8e or "a3l! on ei!her si5e. Reliane anno! 1e 4lae5 on a sel"7in53e5 "r3s!ra!ion. The "a!s $ere : 23;0 AC 050.
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: The a44ellan!s hire5 !he res4on5en!sC !ra$ler, alle5 C!he &! (3!h1er" !o 1e e84lo;e5 in "ishing in53s!r; onl;. Bo!h 4ar!ies kne$ !ha! !he !ra$ler o3l5 1e 3se5 "or !ha! 43r4ose onl; 3n5er a liense "ro8 !he (ana5ian Goern8en!. The a44ellan!s $ere 3sing "ie !ra$lers an5, !here"ore, a44lie5 "or "ie lienses. Onl; !hree $ere gran!e5 an5 !he Goern8en! aske5 !he a44ellan!s !o na8e !he !hree !ra$lers an5 !he; na8e5 !ra$lers o!her !han !he &! (3!h1er!. The; !hen re435ia!e5 !he har!er an5 4lea5e5 "r3s!ra!ion in res4onse !o !he res4on5en!sC a!ion "or !he hire. The 35iial (o88i!!ee o" !he Pri; (o3nil hel5 !ha! !he "r3s!ra!ion in !his ase $as !he res3l! o" !he a44ellan!sC o$n hoie o" e@l35ing !he res4on5en!sC shi4 "ro8 !he liense an5, !here"ore, !he; $ere no! 5isharge5 "ro8 !he on!ra!. 9 In ano!her si8ilar ase, !he on!ra! $as !o e@4or! == !ons o" s3gar 1ee! 43l4 4elle!s $i!h a "3r!her o4!ion "or !he sa8e 3an!i!;. The sellers o1!aine5 an e@4or! liense "or ?===. The; also on!ra!e5 $i!h ano!her 13;er !o s344l; hi8 ==. B3! !he Goern8en! re"3se5 !o gran! an; "3r!her liense. The; shi44e5 !he $hole agree5 3an!i!; !o !he "irs! 13;er. The; $ere no$ le"! $i!h !he e@4or! liense "or == onl;, 13! $ere 3n5er !$o o1liga!ions, one !o s344l; == !o !he "irs! 13;er 3n5er !he o4!ion gien !o hi8 an5 o!her 3n5er !he on!ra! $i!h !he seon5 13;er "or !he sa8e 3an!i!;. As a "ae7saing 5eie !he; a44or!ione5 !he s344l; 1e!$een !he !$o 13;ers giing a1o3! hal" !o ei!her. The seon5 13;er s3e5 "or 1reah o" on!ra!. The s344liers 4lea5e5 "r3s!ra!ion. The; $ere hel5 lia1le. The (o3r! o" A44eal "o3n5 no legal a3!hori!; 23s!i";ing !he 4ro4osi!ion !ha! $here a seller has a legal o88i!8en! !o A an5 a non7legal o88i!8en! !o B an5 he an hono3r !he o1liga!ion !o A or !o B 13! no! !o 1o!h, he is 23s!i"ie5 in 4ar!iall; hono3ring 1o!h o1liga!ions. The o3r! re"erre5 !o !he 4rini4le s!a!e5 in !he A8erian Uni"or8 (o88erial (o5e !ha! in s3h a si!3a!ion !he seller 8a; alloa!e s344lies in an; 8anner $hih is reasona1le an5 "air, 13! "o3n5 no 1asis "or i84or!ing !he 4rini4le in!o 'nglish la$. There is, ho$eer, an 'nglish a3!hori!; !o !he e""e! !ha! i" !he seller ha5 1een 3n5er a legal 53!;, he $o3l5 hae 1een 23s!i"ie5 in 8aking "air a44or!ion8en!. The o3r! sai5 !ha! $hen a s344lier has 8an; on!ra!s !o "3l"il, 13! onl; has eno3gh o" !he goo5s !o "3l"il one o" !he8, !hen, i" he reasona1l; a44ro4ria!es $ha! he has !o !ha! one, he an rel; on "ore 8ae2e3re as !o o!hers. Th3s !here is no 4rini4le o" la$ 4reen!ing one 4ar!; !o a on!ra! !aking a5an!age o" i!s o$n a!s !o 5e"ea! !he o!herCs righ!s 3nless !he 4ar!; is in 1reah o" 53!; in so a!ing. Th3s $here !he 5e"en5an! o84an; haing !he righ! !o 5o so an5 la$"3ll; e@erising !ha! righ!, sol5 i!s s31si5iar; $i!h !he res3l! !ha! !he e84lo;eesC s!ok o4!ions la4se5, !he 5e"en5an! $as hel5 no! lia1le "or !he la4se 1ea3se i! $as 3n5er no 53!; no! !o sell i!s s31si5iar;.<=
Fr#srai"% O(eraes A#"*aia$$+
3 h(>??!!!.$ega$ser&iei%dia."* 2 Halsbury’s Laws of England, fourth edition, Vol 9, Para 450.
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
Fr3s!ra!ion o4era!es a3!o8a!iall; !o 5isharge !he on!ra! irres4e!ie o" !he in5ii53als onerne5, !heir !e84era8en!s an5 "ailings, !heir in!eres! an5 ir38s!anesC. The legal e""e! o" "r3s!ra!ion 5oes no! 5e4en5 on !heir in!en!ion or !heir o4inions, or een kno$le5ge, as !o !he een!. This is 4ar!i3larl; !r3e o" In5ian la$ as &e!ion /0 o" !he (on!ra! A! la;s 5o$n a r3le o" 4osi!ie la$ an5 5oes no! leae !he 8a!!er !o 1e 5e!er8ine5 aor5ing !o !he in!en!ion o" !he 4ar!ies. A s31se3en! ase, ho$eer, sho$s !ha! in er!ain ir38s!anes "r3s!ra!ion 8a; 1e $aie5 1; one 4ar!; an5 !hen !he o!her $ill 1e 1o3n5 1; !he on!ra!. In H R . & &ains13r; L!5 &!ree! : There $as !he sale o" >6/ !ons #/ 8ore or less% o" "ee5 1arle; !o 1e gro$n on sellerCs lan5. The ro4 a8o3n!e5 !o onl; <= !ons. The seller resol5 i! !o ano!her an5 on!en5e5 !ha! he ha5 !he righ! !o 5o so 1ea3se !he on!ra! ha5 en5e5 1; "r3s!ra!ion. B3! he $as hel5 lia1le "or 1reah o" on!ra!. There $as "r3s!ra!ion onl; !o !he e@!en! o" ro4 "ail3re. The 13;er o3l5 $aie i! an5 lai8 5elier; o" $ha!eer li!!le ro4 !he sellerCs lan5 ha5 4ro53e5. The &34re8e (o3r! has lai5 5o$n !ha! "r3s!ra!ion 43!s an en5 !o !he lia1ili!; !o 4er"or8 !he on!ra!. I! 5oes no! e@!er8ina!e !he on!ra! "or all 43r4oses. For e@a84le, $he!her !he 5o!rine o" "r3s!ra!ion $o3l5 a44l; or no! has !o 1e 5ei5e5 $i!hin !he "ra8e$ork o" !he on!ra! an5, i" !he on!ra! on!ains an ar1i!ra!ion la3se, !he ar1i!ra!or o3l5 5ei5e !he 8a!!er o" "r3s!ra!ion.<<
Ad8#s*e% "f Righs 9Resi#i"%< The righ!s o" !he 4ar!ies are a523s!e5 3n5er &e!ion 0/. 65. !bligation of person who has received advantage under void agreement or contract that becomes void.— hen an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation to it, to the person from whom he received it.
Illustrations (a) A $ays B ,!666 ru$ees in consideration of B&s $romising to marry "! A&s daughter. " is dead at the time of the $romise! The agreement is void but B must re$ay A the ,!666 ru$ees. (b) A contracts with B to deliver to him 076 maunds of rice before the first of 8ay. A deliver9 ,:6 maunds only before that day! and none after. B retains the ,:6 maunds after the first of 8ay ;e is bound to $ay A for them. (c) A! a singer! contracts with B! the manager of a theatre! to sing at his theatre for two night in every week during the net two months! and B engages to $ay her hundred ru$ees for each night&s $erformance. n the sith night! A wilfully absents herself from the theatre! and 22 h(>??!!!.ssr%."*
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
CONCLUSION The agree8en!s !o 5o i84ossi1le a!s in i!sel" are oi5 an5 s3h a!s are "airl; si84le !o "oresee an5 aser!ain !ha! !he a! $ill 1e i84ossi1le !o 4er"or8 ho$eer in ases o" "r3s!ra!ion, i! is so8e!i8es on"3sing $he!her !he on!ra! $ill 1e oi5 or no! an5 !he ario3s ir38s!ane $here !here is "r3s!ra!ion. The 5o!rine o" "r3s!ra!ion 5esri1es a si!3a!ion $here a"!er !he onl3sion o" a on!ra!, 3n"oreseea1le een!s o3r, ren5ering !he 4er"or8ane o" !ha! on!ra! i84ossi1le. Un5er !ha! 5o!rine, o3r!s hae !he 4o$er !o 5isharge an; on!ra! !ha! "alls $i!hin i!s so4e as "r3s!ra!e5. (o3r!s no$a5a;s see8 !o 1e rel3!an! $hen i! o8es !o 5isharging on!ra!s as "r3s!ra!e5. The 3rren! 4oli; on s3h 8a!!ers is !o 4reen! 4ar!ies "ro8 3sing !he 5o!rine as a 5e"ene 4ro!e!ing !he8 "ro8 a 1a5 1argain. Ano!her 4ara8e!er is an e@4e!e5 "oreseea1ili!; o" een!s o3rring a"!er !he "or8a!ion o" a on!ra!, een!s $hih $o3l5 hae a nega!ie i84a! on i!s ali5i!;. This is $h; $e sho3l5 eli8ina!e s3h 4ossi1ili!ies 1e"ore reahing a er5i!
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
'I'LIO)RA+HY( T,e I-ia %"tra%t a%t ( it, a %"mmetary/ %riti%al a- e0#laat"ry $y +"ll"%1/ *re-eri%1/ Sir/ 234562789: I-ia. I-ia C"tra%t A%t: M;lla/ Di!,a, *ar-;";ral "f Re!ear%, i E%""mi%! ? S"%ial S%ie%e! Hal!$;ry@! La! "f Egla-/ f";rt, e-iti"/ V"l 7 Atiya, +.S./ “La "f C"tra%t& Clare-" +re!!6 6 O0f"r-/ E-iti"( II 2775. C,e!ire/ *if""t a- *;rm!t" Mi%,ael/ “La "f C"tra%t&/ O0f"r- +;$li%ati"/ E-iti"( V B=. Sig, Atar/ “La "f C"tra%t&/ Ea!ter '""1 H";!e L;%1"/ E-iti"( B3.
WE'LIO)RA+HY ,tt#(.e$!ter.%"m
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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL DRAFT-
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