UP JUDICIARY Indian Contract Act, 1872 Syllabus

UP JUDICIARY Indian Contract Act, 1872: topic-wise syllabus

1. 1

   Offer, Acceptance, and Communication (Sections 2-10)

   • Proposal/Offer: Definition (Section 2a), Types (Express, Implied, Specific, General)
   • Acceptance: Section 2b, Absolute and Unqualified (Section 7), Conditional Acceptance is Counter-Offer
   • Communication of Offer/Acceptance (Sections 3-5): When Complete
   • Revocation of Offer/Acceptance (Sections 5-6): Time of Revocation, Modes
   • Standing/Open Offers and Acceptance
   • Case Law: Carlill v Carbolic Smoke Ball Co [1893] (Unilateral Offer); Lalman Shukla v Gauri Dutt (Acceptance with Knowledge)
2. 2

   Consideration and Privity of Contract (Sections 2d, 23-27)

   • Definition of Consideration (Section 2d): Benefit-Detriment Analysis
   • Essentials: Moved at Desire of Promisor, Promisor-Promisee-Consideration Link
   • Adequacy vs Sufficiency: Courts Don't Weigh Adequacy (Section 25)
   • Exceptions to No Consideration No Contract: Natural Love & Affection, Past Service, Completed Gift (Section 25)
   • Communication, Acceptance and Revocation of Proposal (Sections 3-6)
   • Doctrine of Privity of Contract: Only Parties Can Sue
   • Exceptions to Privity: Trust/Covenant, Family Settlement, Assignment, Acknowledgement
   • Case Law: Dunlop Pneumatic v Selfridge (Privity); Chinnaya v Ramayya (Consideration from Third Party); Tweddle v Atkinson
3. 3

   Capacity and Free Consent (Sections 11-22)

   • Who Can Contract: Age of Majority (Majority Act), Sound Mind (Section 12)
   • Minor's Agreements: Void ab initio, Restitution, Liability for Necessaries (Section 68)
   • Persons of Unsound Mind: Idiot, Lunatic, Drunkard, Alien Enemy, Convict
   • Coercion (Section 15): Definition, Threat to Commit Offence, Detaining Property
   • Undue Influence (Section 16): Relationship, Burden of Proof, Presumed vs Proved
   • Fraud (Section 17): Active Concealment, Promise Without Intention, Suggestion Falsi
   • Misrepresentation (Section 18): Innocent vs Fraudulent, Duty to Disclose
   • Mistake (Sections 20-22): Bilateral, Unilateral, Mistake of Fact vs Law
   • Case Law: Mohori Bibee v Dharmodas Ghose (Minor's Contract Void); Ranganayakamma v Alwar Setti (Undue Influence); Derry v Peek (Fraud)
4. 4

   Legality of Object and Void Agreements (Sections 23-30)

   • Unlawful Object and Consideration (Section 23): Forbidden by Law, Defeat Law, Fraudulent, Injurious, Immoral, Public Policy
   • Agreements in Restraint of Marriage (Section 26), Trade (Section 27), Legal Proceedings (Section 28)
   • Ambiguous and Uncertain Agreements (Section 29)
   • Wagering Agreements (Section 30): Definition, Void, Exceptions (Horse Racing, Skill Games)
   • Contingent Contracts (Sections 31-36): Dependent on Future Event, Wagering Distinguished
   • Case Law: Gherulal Parakh v Mahadeodas Maiya (Wagering); Mohan Breweries v Unitech (Restraint of Trade)
5. 5

   Performance and Discharge of Contract (Sections 37-67)

   • Obligation of Parties to Perform (Section 37), Joint Promisors (Sections 42-44)
   • Time of Performance (Section 46-50), Time as Essence (Section 55)
   • Discharge by Performance, Breach (Actual vs Anticipatory), Frustration
   • Anticipatory Breach: Repudiation Before Due Date, Election to Treat as Breach
   • Doctrine of Frustration (Section 56): Impossibility, Supervening Events, Not Self-Induced
   • Effects of Frustration: Contract Discharged, Adjustment of Rights
   • Case Law: Satyabrata Ghose v Mugneeram Bangur (Frustration); Taylor v Caldwell (Doctrine of Frustration); Hochster v De la Tour (Anticipatory Breach)
6. 6

   Breach of Contract and Remedies (Sections 73-75)

   • Compensation for Loss/Damage (Section 73): Remoteness, Direct vs Consequential
   • Measure of Damages: Expectation, Reliance, Restitution
   • Liquidated Damages and Penalty (Section 74): Court's Discretion, Reasonable Compensation
   • Quantum Meruit: Claim for Work Done Without Contract Price
   • Suit for Specific Performance (SRA 1963), Injunction
   • Case Law: Hadley v Baxendale (Remoteness of Damage); Karsales v Wallis (Fundamental Breach)
7. 7

   Indemnity and Guarantee (Sections 124-147)

   • Contract of Indemnity (Section 124): Definition, Rights of Indemnity Holder (Section 125)
   • Contract of Guarantee (Section 126): Definition, Surety-Principal Debtor-Creditor
   • Essential Features of Guarantee: Consideration (Section 127), Writing Not Required
   • Continuing Guarantee (Section 129), Revocation of Guarantee (Section 130-132)
   • Liability of Surety (Section 128): Co-extensive, Limits to Surety's Liability
   • Discharge of Surety (Sections 133-141): Variance, Release, Loss of Security
   • Rights of Surety (Sections 140-145): Subrogation, Indemnity, Contribution
   • Case Law: Bank of Bihar v Damodar Prasad (Surety Liability)
8. 8

   Bailment and Pledge (Sections 148-181)

   • Bailment (Section 148): Definition, Bailor and Bailee, Delivery of Possession
   • Gratuitous vs Non-Gratuitous Bailment
   • Duties of Bailee (Sections 151-152): Reasonable Care, Not to Make Unauthorized Use (Section 154)
   • Duty of Bailor: Disclose Faults in Goods (Section 150), Repay Necessary Expenses (Section 158)
   • Finder of Goods (Sections 168-172): Rights, When Becomes Owner
   • Pledge (Section 172): Definition, Essentials, Pledge by Non-Owner (Sections 178-180)
   • Rights of Pawnee (Sections 173-177): Retain, Sue, Sell
   • Case Law: Coggs v Bernard (Bailment Duties); Morvi Mercantile Bank v Union of India (Pledge by Non-Owner)
9. 9

   Agency (Sections 182-238)

   • Definition of Agent and Principal (Section 182), Kinds of Agents
   • Creation of Agency (Sections 183-188): Express, Implied, Ratification (Section 196-200)
   • Agent's Authority: Actual, Ostensible/Apparent, Authority by Necessity
   • Duties of Agent (Sections 211-216): Duty of Care, Account, Not to Make Secret Profit
   • Rights of Agent (Sections 217-225): Remuneration, Lien, Indemnity
   • Principal's Liability for Agent's Acts (Sections 226-228)
   • Personal Liability of Agent (Sections 230-234): Foreign Principal, Undisclosed Principal
   • Termination of Agency (Sections 201-210): Revocation, Renunciation, Death, Insanity
   • Case Law: Lloyd v Grace Smith (Ostensible Authority); Sitaram v Suman (Ratification)