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India · 1st Year · Law of Contract

Consent, Void Agreements & Special Contracts

More sections from the Indian Contract Act.

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  1. 1.ICA ss 2(a) and 2(b) — proposal and acceptance?

    s 2(a): a proposal is made when one signifies willingness to do or abstain from doing anything, with a view to obtaining the other's assent. s 2(b): a proposal is accepted when the person to whom it is made signifies assent.

    ICA 1872, s 2(a)–(b)

  2. 2.ICA s 4 — when is communication of acceptance complete?

    As against the proposer, when it is put in course of transmission so as to be out of the acceptor's power; as against the acceptor, when it comes to the proposer's knowledge.

    ICA 1872, s 4

  3. 3.Bhagwandas Goverdhandas Kedia v Girdharilal Parshottamdas (1966) — held?

    A contract made by telephone is concluded where the acceptance is heard by the proposer, which determined the court's jurisdiction.

    AIR 1966 SC 543

  4. 4.Harvey v Facey [1893] — principle?

    A reply stating the lowest price is not an offer to sell; it is merely information.

    [1893] AC 552 (PC)

  5. 5.Felthouse v Bindley (1862) — principle?

    Silence cannot amount to acceptance; an offeror cannot impose acceptance by silence.

    (1862) 11 CB (NS) 869

  6. 6.Define coercion (s 15) and undue influence (s 16).

    Coercion: committing or threatening any act forbidden by the Indian Penal Code, or unlawfully detaining property, to cause a person to enter an agreement. Undue influence: a person in a position to dominate the other's will uses that position to obtain an unfair advantage.

    ICA 1872, ss 15–16

  7. 7.Effect of mistake under ss 20 and 21?

    s 20: where both parties are under a mistake as to a matter of fact essential to the agreement, the agreement is void. s 21: a mistake as to Indian law does not make a contract voidable.

    ICA 1872, ss 20–21

  8. 8.ICA s 30?

    Agreements by way of wager are void.

    ICA 1872, s 30

  9. 9.Quasi-contracts under ss 68, 70 and 72?

    s 68: necessaries supplied to a person incapable of contracting are reimbursable from their property. s 70: a person enjoying a non-gratuitous act must compensate. s 72: money paid or thing delivered by mistake or coercion must be repaid or returned.

    ICA 1872, ss 68–72

  10. 10.Indemnity, guarantee, bailment and agency — defining sections?

    Indemnity: s 124. Guarantee: s 126. Bailment: s 148. Agent and principal: s 182.

    ICA 1872, ss 124, 126, 148, 182

  11. 11.Kailash Nath Associates v DDA (2015) — s 74?

    Compensation under s 74 requires proof of legal injury; where no loss is caused or it cannot be proved, earnest money cannot be forfeited as reasonable compensation.

    (2015) 4 SCC 136

  12. 12.What did the Specific Relief (Amendment) Act 2018 change?

    Specific performance of contracts became the general rule rather than a discretionary remedy (s 10 as amended).

    Specific Relief Act 1963, s 10 (as amended 2018)