BANASTHALI VIDYAPITH

FACULTY OF LAW

Handout for the Semester: July, 2023 – December, 2023

Class: B.Com./B.B.A./B.A.LL.B. I Semester Estimated Contact Hrs: 60 hrs.

Course Title: LAW103 Law of Contract-I Class Timings: As per timetable
Course Teacher/s: Dr. Nidhi Arora Credit: 4 Max. Marks : 100 (CA: 40 + ESA: 60)
Email: nidhiarora@banasthali.in

About the Course:

A contract is essentially an agreement that gives rise to obligations which are enforced or recognized by law. The
general law of contract is based on the conception, which the parties have, by an agreement, created legal rights
and obligations, which are purely personal in their nature and are only enforceable by action against the party in
default. The law of contracts’ development can be seen as spanning several centuries, evolving constantly to
keep pace with the economic, political and technological changes that have occurred over the course of
time. Acquire a working knowledge of the fundamentals of contract law.

Course Objectives:

1. To understand the connection of contract in daily life.

2. To better understand the rules and principles of contract law to the students.

Course Contents:

Unit I
Definition and Classification of Contracts: Deeds and Simple Contracts, Bilateral and Unilateral Contracts,
Express and Implied contracts, Valid, Void, Voidable and Illegal Contracts, Executed and Executory Contract.
Formation of an Agreement: Offer and Invitation to Offer, Acceptance, Revocation of offer, Communication of
offer & Communication of acceptance.

Unit II
Consideration: Meaning, Nature and Need, Doctrine of privity of contract, Kinds and Exceptions of
Consideration. Capacity to Contract: Minors, Lunatics, Idiots, Nature and Effects of an Agreement with a person
under legal disability.
Unit III

Free Consent: Factor vitiating free consent, Coercion, Undue Influence, Fraud, Misrepresentation, Mistake of
Law and Fact. Limitation on freedom of Contract: Unlawful Agreements, Public Policy, Agreements and
Unlawful Consideration in Part and Objects, Agreements without Consideration, Agreement in Restraint of
Marriage, Agreement in Restraint of Trade, Agreement in Restrain of Legal Proceeding, Wagering Agreements.

Unit IV
Contingent Contract: Performance of Contingent Contract, Conditional Contract, when Enforcement Depends
upon Happening or non Happening of an Event, Event Linked with Human Conduct. Discharge of a Contract:
Discharge by Performance, Discharge by Agreement, Frustration, Supervening Impossibility of Performance,
Discharge by Operation of Law, Discharge by Breach and Novation.

Unit V
Quasi Contracts: Obligations Resembling those Created by Contract, Concept and Classification. Remedies for
Breach of Contract: Damages, Remoteness of Damages, Mitigation of Damages, Penalty and Liquidated
Damages. Specific Relief Act, 1963: Meaning of Specific Relief, Specific Performance of Contracts, Contracts
which cannot be Specifically Enforce, Against whom Contracts may be Specifically Enforced, Injunction and its
Kinds, Declaratory Suits.

Learning Outcomes:

Upon completion of the course student will be able to:

 The students will be able to understand  The students will be able to understand
various general principles related to contract various general principles related to contract
law. law.

Suggested E-Learning Resources (ER):

1. Burton, S. (1980). Breach of Contract and the Common Law Duty to Perform in Good Faith. Harvard
Law Review.
2. Indrayan, N. (1996). Theoretical Basis Of Law Of Contract. Journal of the Indian Law Institute, 38(2),
212-217. Retrieved from http://www.jstor.org/stable/43927470
3. Patra, A. (1962). Historical Background Of The Indian Contract Act, 1872. Journal of the Indian Law
Institute, 4(3).Retrieved from http://www.jstor.org/stable/43949727
4. Diamond, A. (1968). Codification of the Law of Contract. The Modern Law Review, 31(4), 361-389.
Retrieved from http://www.jstor.org/stable/1094272

Suggested Readings (SR):

 1. Singh, A. (2013). Law of Contract and Specific Relief, Eastern Book Company.
2. Mulla, B. N. (2001). Indian Contract Act and Specific Reliefs (12th ed.). India, New Delhi
Butterworth’s.
3. J. Beatson. (2002). Anson’s Law of Contract (28th ed.). Clarendon Press, Oxford.
4. Nair, M. K. (1996). Law of Contracts (5th ed.). Orient Longman, Hyderabad.
5. Chitty. (1999).Chitty on Contracts. (28th ed.). London: Sweet & Maxwell.
6. Beatson, J. (2002). Anson’s Law of Contract (28th ed.). Oxford: Clarendon Press.
7. Pollock & Mulla. (2013). Indian Contract and Specific Relief Act (14th ed.). New Delhi: Lexis Nexis.

Innovative approach:

Used Contemporary techniques to enhance the teaching learning process and various innovative approaches are
collaborative method, clinical method, use of ICT, use of Google Classroom, online appointment scheduling, easy
online submissions and interactions, short case-lets for developing lateral thinking, online quizzes for practice and
online videos.

COURSE PLAN

No. of sessions = 60, No. of contact hours = 60 hrs.

Unit 1

Learning Objectives:

1. To acquaint the students with the general principles and rules governing contract.
2. To develop problem solving skills.

Lectur Topics to be Covered Text Book

e No. Ref. Book

1-2 Contract: Meaning, nature; essential elements of a contract SR 1, 2

3-4 Various types of Contract- Deeds and Simple Contracts, Bilateral and Unilateral SR 1, 2
Contracts, Express and Implied contracts

Valid, Void, Voidable and Illegal Contracts, Executed and Executory Contract;
5-8 Formation of an agreement; offer and Invitation to offer SR 1, 2
Void agreement
Offer

Acceptance, Revocation of offer

9-10 SR 1, 2
 Communication of offer & Communication of acceptance
11 SR 1, 2

12 Revision

Unit - 2

Learning Objectives:

i. To acquaint the students with the essence of the contract.

ii. To relate legal provisions in practical form.

Meaning, Nature of Consideration, Doctrine of privity of

13 contract SR 1, 2

Kinds and Exceptions of Consideration

14-15 SR 1, 2

Capacity to Contract: Minors, Lunatics, Idiots

16-17 SR 1, 2

Nature and Effects of an Agreement with a person under

18-20 legal disability SR 1, 2

21-22 Case Study

 23 Revision

Unit - 3

Learning Objectives:

i. To acquaint students with the flaws in contract

Free Consent: Factor vitiating free consent

24-26 SR 3, 4

Coercion, Undue Influence, Fraud

27-29 SR 3, 4

Misrepresentation, Mistake of Law and Fact

30-32 SR 1, 2, 4

Limitation on freedom of Contract: Unlawful Agreements,

33-35 Public Policy, Agreements and Unlawful Consideration in SR 2, 6,
Part and Objects, Agreements without Consideration

Limitation on freedom of Contract: Agreement in Restraint

36-38 of Marriage, Agreement in Restraint of Trade, Agreement in SR 3, 4
Restrain of Legal Proceeding, Wagering Agreements

Revision
39

Unit - 4

Learning Objectives:

i. To develop critical approach to the existing laws and problem solving.

40-41 Contingent Contract: Performance of Contingent Contract,

Conditional Contract SR 3, 4

45-47 Discharge of a Contract: Discharge by Performance, SR 4, 5

Discharge by Agreement, Frustration, Supervening
 Impossibility of Performance

48 Discharge by Operation of Law, Discharge by Breach and SR 2, 6

Novation

49 Revision

Unit - 5

Learning Objectives:

i. To deal effectively with the various disputes related to contracts.

50 Quasi Contracts: Obligations Resembling those Created by

Contract, Concept and Classification SR 3, 4

51-52 Remedies for Breach of Contract- Damages, Remoteness

of Damages, Mitigation of Damages, Penalty and SR 3, 6
Liquidated Damages.

53-55 Specific Relief Act, 1963- Meaning of Specific Relief, Specific

Performance of Contracts, Contracts which cannot be SR 7
Specifically Enforce

56-57 Contracts which cannot be Specifically Enforce, against SR 7

whom Contracts may be Specifically Enforced

58 Injunction and its Kinds, Declaratory Suits. SR 7

59-60 Revision

Case-Laws:

1. Lalman Shukla v/s Gouri Dutt, (1913) 11 All L. J. 489

2. Balfour v/s Balfour, (1919) 2 K.B. 571
3. Bhagvandas Goverdhandas Kedia v/s Gidharilal Pursottamdas, AIR 1966 SC 543
4. Carlill v/s Carbolic Smoke Ball Co., (1892) 2 QB. 48, (1893) I & B 256
5. Mohoribibee v/s Dharmodas Ghosh, Privy Council 1903
6. Hadley v. Baxendale
7. Mc Pherson v/s Appana, AIR 1951 SC 184
8. Dunlop Pneunmatic Tyre Co. V/s Selfridge & Co. (1915) AC 847
9. Chinnaya v/s Ramaya, (1882) 4 Mad. 137
 10. Durga Prasad v/s Beldev (1880) 3 ALL 221

Other Information:

To fix time for discussion/query:

Evaluation:

Continuous Assessment

Component Marks Submission/ Allotment

Examination date

Home assignment I 10 28 August, 2023 Topics shall be allotted in the class

by 12 August 2023

Periodical test I 10 8-11 September, 2023* -

Home assignment II 10 11 October, 2023 Topics shall be allotted in the class

by 25 September, 2023

Periodical test II 10 4-8 November, 2023* -

Semester Examination 60 2-18 December, 2023* -

*
Subject to change

(Signature of the Teacher/s)

(Signature of the HOD) (Signature of the Dean)