CONTRACT LAW

UNIT I - General Principles of Contract Notes

📜 HISTORY OF CONTRACT LAW IN INDIA 🇮🇳

📜 The Indian Contract Act, 1872 governs contracts in India.

✅ Origin: Based on English Common Law 📖.
✅ Came into force: 1st September 1872 .
✅ Applies to: All of India except J&K (before Article 370 was removed).

🔹 Case Law: M.C. Chacko v. State Bank of Travancore (1970) – Defined

contract law as a combination of agreement & enforceability.

📜 FORMATION OF CONTRACT (Sections 1-75) 🤝

✅ A contract is a legally enforceable agreement between two or

more parties.
✅ Essentials of a Valid Contract (Section 10):
1️⃣ Offer & Acceptance (Sections 2(a) & 2(b)) 💡
2️⃣ Intention to Create Legal Relations 🤝
3️⃣ Lawful Consideration (Section 2(d)) 💰
4️⃣ Capacity to Contract (Section 11) 👤
5️⃣ Free Consent (Section 13 & 14) ✅
6️⃣ Lawful Object (Section 23) ⚖️
7️⃣ Not Expressly Declared Void 🚫

🔹 Case Law: Carlill v. Carbolic Smoke Ball Co. (1893) – Unilateral

contracts are valid if properly communicated.

📜 AGREEMENT VS. CONTRACT ⚖️

✅ Agreement (Section 2(e)) – A promise or set of promises forming

consideration for each other.
✅ Contract (Section 2(h)) – An agreement enforceable by law.

📌 All contracts are agreements, but not all agreements are

contracts!

🔹 Case Law: Balfour v. Balfour (1919) – Domestic agreements are not

contracts as they lack legal enforceability.
📜 CLASSIFICATION OF CONTRACTS 📋

✅ Based on Validity:
1️⃣ Valid Contract – Legally enforceable ✅
2️⃣ Void Contract (Section 2(j)) – Not enforceable ❌
3️⃣ Voidable Contract (Section 2(i)) – One party has the option to enforce
or cancel 🤷‍♂️
4️⃣ Illegal Contract – Against law 🚫

✅ Based on Formation:
1️⃣ Express Contract – Written or spoken 📜
2️⃣ Implied Contract – Formed by actions 🤝
3️⃣ Quasi-Contract (Sections 68-72) – Obligation without agreement
⚖️

🔹 Case Law: Mohori Bibee v. Dharmodas Ghose (1903) – A contract with a

minor is void ab initio.

📜 OFFER & ACCEPTANCE (Sections 2(a) & 2(b)) 📩✅

✅ Offer (Proposal) (Section 2(a)) – A willingness to do or not do

something to obtain the other’s consent.
✅ Acceptance (Section 2(b)) – When the offeree agrees to the offer
unconditionally.

1️⃣ Communication of Offer & Acceptance (Section 4) 📡

✅ Offer is complete when received by the offeree.

✅ Acceptance is complete:

 For the proposer: When it is received 📬

 For the acceptor: When it is sent 📤

🔹 Case Law: Lalman Shukla v. Gauri Dutt (1913) – An offer must be

known to the offeree to be valid.

2️⃣ Revocation of Offer & Acceptance (Section 5) 🔄

✅ Offer can be revoked before acceptance.

✅ Acceptance can be revoked before it reaches the proposer.
🔹 Case Law: Hyde v. Wrench (1840) – A counteroffer cancels the
original offer.

📜 INVITATION TO OFFER VS. OFFER 🏢

✅ Invitation to Offer – Not an actual offer but an invitation to

negotiate.
📌 Examples:

 Auction Notices

 Menu Cards at Restaurants

 Display of Goods in a Shop

🔹 Case Law: Harvey v. Facey (1893) – Quoting a price is not an offer but
an invitation to offer.

📜 TENDERS 📝

✅ Tender: A proposal submitted to undertake a contract.

✅ Types of Tenders:
1️⃣ Specific Tender – Open to specific parties only ✅
2️⃣ General Tender – Open to the public 📢

🔹 Case Law: Spencer v. Harding (1870) – A tender is an invitation to

offer, not an offer itself.

📜 CONSIDERATION (Sections 2(d), 25) 💰

✅ Consideration: Something of value given in return for a promise.

📌 "No consideration, no contract" (Section 25) 🚫

1️⃣ Essentials of Consideration 📋

✅ Must move at the desire of the promisor.

✅ May come from the promisee or a third party.
✅ Can be past, present, or future.
✅ Must be real & lawful.

🔹 Case Law: Currie v. Misa (1875) – Consideration must be valuable &

legal.
2️⃣ Exceptions to "No Consideration, No Contract" 🚫💰

1️⃣ Natural Love & Affection (Section 25(1)) ❤️

2️⃣ Compensation for Past Service (Section 25(2)) 🏅
3️⃣ Time-Barred Debt (Section 25(3)) ⏳

🔹 Case Law: Chinnaya v. Ramayya (1882) – Consideration can move

from a third party.

📜 UNLAWFUL CONSIDERATION (Section 23) 🚫⚖️

✅ A contract is void if consideration is:

 Forbidden by law ⚠️

 Defeats the purpose of law ⚖️

 Immoral or against public policy 🚫

🔹 Case Law: Gherulal Parakh v. Mahadeodas (1959) – Wagering

agreements are void under Section 30.

📜 CONTRACTUAL CAPACITY (Section 11) 👤

✅ A person must be:

1️⃣ Major (18 years & above) 🧑‍🎓
2️⃣ Sound Mind 🧠
3️⃣ Not Disqualified by Law 🚫

🔹 Case Law: Mohori Bibee v. Dharmodas Ghose (1903) – A minor’s

contract is void ab initio.

📜 ELECTRONIC CONTRACTS (IT Act, 2000) 💻📜

✅ Contracts formed electronically (e.g., via email, websites).

✅ Digital Signatures & Certificates (Section 3, IT Act) act as
authentication mechanisms ✅.
✅ Time & Place of Contract (Section 13, IT Act) – A contract is
completed when the acceptance enters the sender’s system 💾.

🔹 Case Law: Trimex International v. Vedanta Aluminium Ltd. (2010) – Email

contracts are legally binding.
🚀 Conclusion:
This unit covers contract formation, consideration, contractual ability,
and e-contracts. Case laws & statutory provisions ensure clarity and
enforceability in contracts.

UNIT II - Capacity to Contract & Free Consent Notes

📜 CAPACITY TO CONTRACT (Section 11) 👤✅

✅ A person is competent to contract if they are:

1️⃣ A Major (18+ years old) 🎂
2️⃣ Of Sound Mind 🧠
3️⃣ Not Disqualified by Law ⚖️
1️⃣ MINOR’S AGREEMENTS & THEIR EFFECTS (Section 11) 👶🚫

✅ A minor (below 18) cannot enter into a valid contract.

✅ Minor’s agreements are void ab initio (from the beginning).
✅ Exceptions:

 Minor can receive benefits (e.g., gifts) 🎁.

 Minor can be a beneficiary in a contract 🏦.

 A contract for necessities (food, shelter, education) is valid .

🔹 Case Law: Mohori Bibee v. Dharmodas Ghose (1903) – A contract with a

minor is void ab initio.

2️⃣ PERSONS OF UNSOUND MIND (Section 12) 🧠⚠️

✅ A person is of sound mind if they can understand the contract &

make a rational decision.
✅ Unsound persons include:

 Lunatics (contract is valid during lucid intervals) 🏥.

 Idiots (contract is always void) ❌.

 Drunken or intoxicated persons (contract is void if they were

unaware of what they were doing) 🍻.

🔹 Case Law: Inder Singh v. Parmeshwardhari Singh (1957) – A contract

with an insane person is void.

3️⃣ PERSONS DISQUALIFIED BY LAW ⚖️🚫

✅ Some persons are restricted from entering contracts due to legal

reasons:
1️⃣ Alien enemies (Cannot contract during war) ⚔️.
2️⃣ Convicts (Cannot contract while serving a sentence) 🚔.
3️⃣ Insolvents (Cannot contract until discharged) 💰.
4️⃣ Foreign sovereigns & ambassadors (Need special permission) 🌎.
5️⃣ Companies & Corporations (Limited by their objectives) 🏢.

🔹 Case Law: Kedar Nath v. Gorie Mohammad (1886) – A company can only
contract within its Memorandum of Association.
📜 FREE CONSENT (Sections 13-14) ✅🤝

✅ Consent is free when it is not caused by:

1️⃣ Coercion (Section 15) 🔪
2️⃣ Undue Influence (Section 16) ⚖️
3️⃣ Fraud (Section 17) ‍♂️
4️⃣ Misrepresentation (Section 18) ❌
5️⃣ Mistake (Section 20-22) 🤷‍♂️

1️⃣ COERCION (Section 15) 🔪⚠️

✅ Using force or threats to make someone enter a contract.

✅ Contracts under coercion are voidable.

🔹 Case Law: Chikham Amiraju v. Chikham Seshamma (1917) – Threatening

suicide is also coercion.

2️⃣ UNDUE INFLUENCE (Section 16) ⚖️

✅ Occurs when one party uses their power to dominate the other
unfairly.
✅ Common in:

 Parent-child 🧓👶

 Teacher-student 🎓

 Doctor-patient 🏥

 Religious leaders & followers ✝️🕌

🔹 Case Law: Rani Annopurni v. Swaminatha (1910) – A contract with

undue influence is voidable.

3️⃣ MISREPRESENTATION (Section 18) ❌

✅ False statements made without intent to deceive.

✅ Contracts based on misrepresentation are voidable.

🔹 Case Law: Derry v. Peek (1889) – Misrepresentation must be

unintentional; otherwise, it is fraud.
4️⃣ FRAUD (Section 17) ‍♂️⚠️

✅ Deliberate deception to make someone enter a contract.

✅ Includes:

 Hiding facts 🤐

 False statements ❌

 Fake signatures ✍️
✅ Contracts involving fraud are voidable & may lead to legal
action.

🔹 Case Law: Lazarus Estates Ltd. v. Beasley (1956) – Fraud invalidates

the entire contract.

5️⃣ MISTAKE (Sections 20-22) 🤷‍♂️❌

✅ A mistake makes a contract void if:

 Both parties are mistaken about an important fact (Section 20).

 The mistake is about law (Section 21).

 The mistake is about a foreign law (Section 22).

🔹 Case Law: Raffles v. Wichelhaus (1864) – Mutual mistake about an

important fact makes the contract void.

📜 LEGALITY OF OBJECT (Section 23) ⚖️🚫

✅ A contract is void if its purpose:

1️⃣ Is illegal or immoral 🚔.
2️⃣ Goes against public policy 👎.
3️⃣ Involves fraud or corruption ‍♂️.

🔹 Case Law: Gherulal Parakh v. Mahadeodas (1959) – Contracts against

public policy are void.

📜 VOID AGREEMENTS (Sections 24-30) ❌

✅ Void agreements have no legal effect & cannot be enforced.
✅ Examples:

 Agreements restricting marriage (Section 26) 💒🚫.

 Agreements restricting trade (Section 27) 💼🚫.

 Wagering agreements (Section 30) 🎰❌.

🔹 Case Law: Bharat Insurance Co. v. Harla (1935) – Illegal contracts are
void & unenforceable.

📜 WAGERING AGREEMENTS & EXCEPTIONS (Section 30) 🎲❌

✅ A wagering agreement is a bet based on an uncertain event.

✅ Not enforceable by law.

✅ Exceptions (Valid Contracts):

1️⃣ Horse Racing Bets 🏇 (If ₹500+ is at stake).
2️⃣ Competitions where skill is involved 🏆.
3️⃣ Stock market transactions involving actual delivery 📈.

🔹 Case Law: Badridas v. Meghraj (1946) – Wagering contracts are void

but not illegal.

📜 CONTINGENT CONTRACTS (Sections 31-36) ⚖️

✅ A contract dependent on a future uncertain event.

✅ Valid only if the event occurs.
✅ Examples:

 Insurance contracts 🏥.

 Betting on the outcome of a legal case ⚖️.

🔹 Case Law: N.P. Rama v. Secretary of State (1933) – Contingent

contracts are enforceable if conditions are met.

🚀 CONCLUSION:

✅ A valid contract requires legal capacity & free consent.

✅ Illegal, wagering & agreements against public policy are void.
✅ Understanding these principles ensures fairness & legal
enforceability in contracts.

UNIT III - Discharge of Contracts Notes

📜 DISCHARGE OF CONTRACTS (Sections 37-75) ✅⚖️

✅ A contract is discharged when obligations are completed,

canceled, or legally terminated.
✅ Modes of Discharge:
1️⃣ By Performance (Sections 37-67) ✅
2️⃣ By Agreement (Sections 62-67) 🤝
3️⃣ By Operation of Law ⚖️
4️⃣ By Frustration (Impossibility of Performance) (Section 56) 🚫
5️⃣ By Breach of Contract (Sections 39, 73-75) ❌

1️⃣ DISCHARGE BY PERFORMANCE (Sections 37-50) ✅

✅ Performance = Completion of contractual obligations.

✅ Types of Performance:

 Actual Performance (Section 37) – Complete performance 🎯.

  Attempted Performance (Section 38) – One party offers, but the
other refuses ❌.

🔹 Case Law: Startup v. Macdonald (1843) – Performance must be as per

contract terms.

📍 TIME & PLACE OF PERFORMANCE (Sections 46-50) ⏳📍

✅ If time is essential (Section 55), delay = breach ⏰❌.

✅ If time is not essential, reasonable delay is allowed .
✅ Performance should be at the agreed place 📍.

🔹 Case Law: Union of India v. Raman Iron Foundry (1974) – Delay is

excused if time is not essential.

2️⃣ PERFORMANCE OF RECIPROCAL PROMISES (Sections 51-54) 🔄

✅ Promises that depend on each other must be performed properly.

✅ Types:

 Simultaneous Performance (Section 51) ➝ Both parties perform at

the same time 🔄.

 Conditional Performance (Section 52) ➝ One must be done before

the other ⏩.

🔹 Case Law: Ankur Textiles v. Rajendra (1981) – Failure of one party

leads to breach.

3️⃣ APPROPRIATION OF PAYMENTS (Sections 59-61) 💰

✅ A debtor can choose which debt to repay first.

✅ If no direction is given, the creditor decides.

🔹 Case Law: In Re: K.P. Vairamuthu (1993) – Debtor has a right to

allocate payments.

4️⃣ DISCHARGE BY AGREEMENT (Sections 62-67) 🤝✅

✅ Parties can mutually agree to end or modify the contract.
✅ Ways to Discharge by Agreement:
1️⃣ Novation (Section 62) 🔄 – New contract replaces old contract.
2️⃣ Alteration (Section 62) ✍️– Terms are changed with consent.
3️⃣ Rescission (Section 62) ❌ – Contract is canceled.
4️⃣ Remission (Section 63) 💸 – Accepting less than agreed amount.
5️⃣ Waiver (Section 63) 🎁 – Giving up rights voluntarily.

🔹 Case Law: Scarf v. Jardine (1882) – Novation must have mutual

consent.

5️⃣ DISCHARGE BY OPERATION OF LAW ⚖️

✅ A contract ends automatically in certain cases:

1️⃣ Death of a party ☠️(if personal skill is involved) (Section 37).
2️⃣ Insolvency (Bankruptcy) 💰❌ (Section 58, Insolvency Act).
3️⃣ Unauthorized alteration ✍️🚫 (Section 62).
4️⃣ Merger 🔄 – When rights under one contract merge with another.

🔹 Case Law: Mohan Lal v. Grain Chamber (1955) – Unauthorized

alteration makes the contract void.

6️⃣ DISCHARGE BY FRUSTRATION (IMPOSSIBILITY OF PERFORMANCE)

🚫 (Section 56)

✅ A contract is void if performance becomes impossible due to:

1️⃣ Destruction of Subject Matter 🔥 (e.g., factory burns down).
2️⃣ Change in Law 📜⚖️(e.g., government bans the product).
3️⃣ Death/Incapacity ☠️(if personal skill is involved).
4️⃣ Outbreak of War ⚔️(trading with enemy country is illegal).

🔹 Case Law: Taylor v. Caldwell (1863) – If performance is impossible due

to unforeseen events, the contract is void.
🔹 Case Law: Satyabrata Ghose v. Mugneeram Bangur (1954) – Frustration
occurs only if the contract's core purpose is destroyed.

7️⃣ DISCHARGE BY BREACH OF CONTRACT (Sections 39, 73-75) ❌

✅ A party fails to perform obligations, leading to breach.

✅ Types of Breach:
  Actual Breach (Section 39) ⏳ – Failure at due time.

 Anticipatory Breach (Section 39) 🚨 – Repudiation before due date.

🔹 Case Law: Hochster v. De La Tour (1853) – Anticipatory breach allows

the innocent party to sue immediately.

📜 REMEDIES FOR BREACH (Sections 73-75) ⚖️

✅ Compensation for breach of contract.

✅ Types of Remedies:
1️⃣ Damages (Section 73) 💰 – Compensation for loss.
2️⃣ Liquidated & Unliquidated Damages (Section 74) 📉.
3️⃣ Quantum Meruit (Section 75) 🔄 – Payment for work done before
breach.

🔹 Case Law: Hadley v. Baxendale (1854) – Damages must be

foreseeable & reasonable.

🚀 CONCLUSION:

✅ A contract can end in various ways – performance, agreement,

frustration, or breach.
✅ Sections 37-75 of the Indian Contract Act cover different discharge
modes.
✅ Knowing these principles helps in contract enforcement & legal
protection.
📜 UNIT IV – REMEDIES FOR BREACH OF CONTRACT ⚖️

When a contract is breached, the aggrieved party is entitled to remedies

under the Indian Contract Act, 1872. The primary remedies include
damages 💰, injunctions 🚫, restitution 🔄, and specific performance 📜.

1️⃣ DAMAGES (Sections 73-75) 💰

Damages = Monetary compensation for loss due to breach of contract.

📌 Types of Damages:

1️⃣ Ordinary Damages (Section 73) 💵

 Compensation for direct losses due to breach.

 🔹 Case Law: Hadley v. Baxendale (1854) – Damages should be

foreseeable and reasonable.

2️⃣ Special Damages 💰✨

 Arises from special circumstances beyond ordinary damages.

 🔹 Case Law: Victoria Laundry v. Newman (1949) – Loss must be

communicated beforehand to claim special damages.

3️⃣ Exemplary (Punitive) Damages ⚖️🚨

 Granted for fraud, malice, or oppressive conduct.

 🔹 Case Law: Rookes v. Barnard (1964) – Punitive damages

awarded in exceptional cases.
4️⃣ Nominal Damages 💵❌

 Awarded when no real loss is suffered, but rights are violated.

 🔹 Case Law: Ashby v. White (1703) – A person can claim damages

even for a minor violation of rights.

5️⃣ Liquidated & Unliquidated Damages (Section 74) 📜

 Liquidated damages – Fixed compensation agreed upon in the

contract.

 Unliquidated damages – Amount decided by the court.

 🔹 Case Law: Fateh Chand v. Balkishan Das (1964) – Court will award
reasonable compensation, not excessive penalty.

2️⃣ REMOTENESS OF DAMAGES 📏 (Hadley v. Baxendale Test)

✅ A party can only claim damages that are a natural consequence of

the breach.
✅ Two Rules:

 First Rule: Direct losses caused by breach ✅.

 Second Rule: Special losses that were foreseeable at the time of

contract formation 📆.

🔹 Case Law: Hadley v. Baxendale (1854) – Loss must be foreseeable to

be compensated.

3️⃣ ASCERTAINMENT OF DAMAGES (Section 73) 🔍

✅ Courts consider:

 Nature of contract 📜

 Actual loss suffered 💸

 Direct vs. indirect loss 📉

🔹 Case Law: Bhagwandas v. Girdharilal (1966) – Compensation should be

based on reasonable foreseeability of loss.
4️⃣ INJUNCTION 🚫 (Specific Relief Act, 1963)

An injunction is a court order preventing a party from doing something.

📌 Types of Injunctions:

1️⃣ Temporary Injunction (Section 36) ⏳ – Issued for a limited period,

often during a pending case.
2️⃣ Perpetual Injunction (Section 37) ⏳📜 – Permanently restrains a
party from doing an act.

📌 When Injunction is Granted?

✅ To prevent a breach of contract.

✅ When monetary compensation is inadequate.
✅ When damage is irreparable.

📌 When Injunction is Refused?

❌ If damages are a sufficient remedy.

❌ If injunction creates undue hardship.

🔹 Case Law: Warner Bros v. Nelson (1937) – Court restrained an actress

from working for a competitor due to contract violation.

5️⃣ RESTITUTION 🔄 (Section 65 – Indian Contract Act, 1872)

✅ Restoration of benefits when a contract becomes void.

✅ If one party benefits from a contract that is later voided, they
must return the benefit.

🔹 Case Law: Mohori Bibee v. Dharmodas Ghose (1903) – A minor’s

contract is void, and any money received must be returned.

6️⃣ SPECIFIC PERFORMANCE 📜 (Sections 10-14, Specific Relief Act,

1963)

✅ When the court orders a party to fulfill their contractual obligation

instead of paying damages.
✅ Granted when damages are inadequate (e.g., selling unique property).

📌 When Specific Performance is Granted?

✅ Contract involves unique goods or property 🏠.
✅ No substitute is available.

📌 When Specific Performance is Refused?

❌ If performance requires constant supervision.

❌ If contract is unfair or involves personal skill.

🔹 Case Law: Ardeshir H. Mama v. Flora Sassoon (1928) – Specific

performance was granted for a property contract.

7️⃣ QUASI CONTRACTS (Sections 68-72) 🔄📜

✅ Not real contracts, but obligations imposed by law to prevent

unjust enrichment.
✅ Types of Quasi Contracts:
1️⃣ Supply of Necessities (Section 68) 🍲 – If a person supplies necessities
to another who cannot contract, they can claim reimbursement.
2️⃣ Payment by Interested Person (Section 69) 💰 – A person who pays
another’s legal obligation is entitled to reimbursement.
3️⃣ Obligation to Pay for Non-Gratuitous Act (Section 70) 🎁 – If
someone benefits from a service, they must pay unless it was a gift.
4️⃣ Finder of Lost Goods (Section 71) – Must return lost goods but can
claim expenses.
5️⃣ Money Paid by Mistake (Section 72) 💵🚫 – If money is paid by mistake,
it must be returned.

🔹 Case Law: State of West Bengal v. B.K. Mondal (1962) – Government

was liable to pay for benefits received under a quasi-contract.

🚀 CONCLUSION:

✅ Remedies protect contractual rights and ensure fair compensation.

✅ Key remedies include damages 💰, injunction 🚫, restitution 🔄, and
specific performance 📜.
✅ Quasi-contracts impose obligations even without formal
agreements.
📜 UNIT V – THE SPECIFIC RELIEF ACT, 1963 & GOVERNMENT
CONTRACTS ⚖️

The Specific Relief Act, 1963 provides remedies beyond damages,

compelling a party to perform their contractual obligations or undo a
wrong. The government's contractual powers are also subject to
constitutional provisions.

1️⃣ NATURE OF SPECIFIC RELIEF ✨

✅ Specific relief means granting the very thing agreed upon instead of
compensation.
✅ It enforces civil rights but not penal laws.

🔹 Case Law: K. Narendra v. Riviera Apartments (1999) – Specific relief is

granted when damages are inadequate.

2️⃣ RECOVERY OF POSSESSION 🏠 (Sections 5-8)

✅ Section 5 (Immovable Property 🏡) – A person with title can recover

property through a suit.
✅ Section 6 (Possession without Ownership ) – Even a person without
ownership but in possession can recover property if wrongfully
dispossessed.
✅ Section 7 (Movable Property 📦) – Recovery if claimant has ownership
or legal entitlement.
✅ Section 8 (Specific Movable Property 🎁) – If possession is wrongful, the
owner can claim return.

🔹 Case Law: Krishna Ram Mahale v. Shobha Venkat Rao (1989) –

Possession is protected against unlawful dispossession, even by the
owner.
3️⃣ SPECIFIC PERFORMANCE (Sections 10-25) 📜

✅ A court orders a party to perform contractual obligations.

✅ When Granted (Section 10):

 When damages are inadequate (e.g., selling rare property).

 When no standard exists to determine compensation.

 When the contract involves trust.

✅ When NOT Granted (Section 11-14) 🚫:

 If compensation is an adequate remedy.

 Contracts requiring personal skill 🎭.

 Contracts involving continuous supervision .

 Contracts that are inequitable or vague.

🔹 Case Law: Lalchand v. Radha Kishan (1977) – Specific performance was

denied as damages were sufficient.

4️⃣ WHO MAY OBTAIN & AGAINST WHOM? (Sections 15-19) 👥

✅ Persons Entitled (Section 15):

 Any party to the contract.

 Legal representatives of a deceased party.

 A person holding rights through a party.

 Company directors in contractual matters.

✅ Against Whom? (Section 16-19):

 The party to the contract.

 Their legal representatives.

 Subsequent transferees (except bonafide purchasers).

🔹 Case Law: Satyabrata Ghose v. Mugneeram Bangur (1954) – Specific

performance denied as the contract was frustrated.

5️⃣ DISCRETIONARY REMEDY & COURT’S POWER (Sections 20-25) ⚖️

✅ Court has discretion to grant or deny relief based on fairness.
✅ Cannot be claimed as a right.

🔹 Case Law: Mayawanti v. Kaushalya Devi (1990) – Courts will deny

specific performance if the contract lacks mutuality.

6️⃣ RECTIFICATION OF INSTRUMENTS (Section 26) ✍️

✅ If a contract is written incorrectly due to fraud or mutual mistake,

courts can rectify (correct) the error.

🔹 Case Law: Dularia Devi v. Janardan Singh (1990) – Rectification is

granted only if both parties intended the same terms.

7️⃣ CANCELLATION OF INSTRUMENTS (Sections 31-33) ❌

✅ A contract can be canceled if:

 It is void or voidable.

 It causes serious injury to a party.

🔹 Case Law: Bishundeo v. Seogeni Rai (1951) – Cancellation granted

when fraud is proven.

8️⃣ DECLARATORY DECREES (Section 34-35) 📜

✅ A person can seek a declaration of their legal status or rights when at

risk.

🔹 Case Law: Ganga Bai v. Vijay Kumar (1974) – Declaratory decrees

protect property ownership rights.

9️⃣ INJUNCTIONS 🚫 (Sections 36-42)

✅ Injunction = A court order preventing a party from doing

something.
✅ Types:

 Temporary Injunction (Section 37) – Prevents harm until the final

decision.
  Perpetual Injunction (Section 38) – Permanently stops an
unlawful act.

 Mandatory Injunction (Section 39) – Compels a party to do

something.

🔹 Case Law: Warner Bros v. Nelson (1937) – An actress was restrained

from working for competitors due to breach of contract.

GOVERNMENT CONTRACTS (Article 299 of the Indian Constitution) 📜

1️⃣ GOVERNMENT'S POWER TO CONTRACT 🔄

✅ Government contracts are legally enforceable, like private

contracts.
✅ Must follow constitutional procedures.

🔹 Case Law: State of Bihar v. Majeed (1954) – Government contracts are

bound by contract law.

2️⃣ PROCEDURAL REQUIREMENTS

✅ Article 299(1) of the Indian Constitution mandates:

 Contracts must be in writing 📜.

 Executed on behalf of the President/Governor.

 Signed by authorized persons.

🔹 Case Law: K.P. Chowdhary v. State of MP (1967) – Oral government

contracts are unenforceable.

3️⃣ KINDS OF GOVERNMENT CONTRACTS 📑

✅ Works Contracts – For public infrastructure.

✅ Service Contracts – Hiring personnel.
✅ Supply Contracts – Procurement of goods.

🔹 Case Law: Bhikhraj Jaipuria v. Union of India (1962) – Government

contracts must be in writing.
4️⃣ PERFORMANCE OF GOVERNMENT CONTRACTS ✅

✅ Must be fulfilled as per agreement.

✅ Changes require re-negotiation & approval.

🔹 Case Law: State of Orissa v. Harinarayan Jaiswal (1972) – Government

contracts must follow procedural fairness.

5️⃣ SETTLEMENT OF DISPUTES ⚖️

✅ Government contracts include arbitration clauses.

✅ Disputes are settled through:

 Litigation in courts .

 Arbitration proceedings ⚖️.

 Government-appointed tribunals.

🔹 Case Law: Ram Lal v. State of Punjab (1966) – Disputes in government

contracts should follow arbitration agreements.

🚀 CONCLUSION

✅ The Specific Relief Act protects legal rights through remedies like
specific performance, injunctions, and restitution.
✅ Government contracts are strictly regulated under constitutional
provisions (Article 299).
✅ Courts have discretionary powers in granting remedies to ensure
justice.