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Notes Contract Law1 Osmania University
The below notes comprehensively cover unit-wise contract Law–1 syllabus, including answers to repeated previous-year questions as revision notes.
By studying from these notes, there’s no need to prepare for past papers separately—they’re already integrated for your convenience and easy preparation for sem exams.
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Previous Year Repeated Questions Contract Law1
6 Mark Questions
- Valid Contract
- Specific Offer
- Consideration
- Free Consent
- Coercion
- Undue Influence
- Immoral Agreements
- Agreement in Restraint of Legal Proceedings
- Contingent Contract
- Quasi Contracts
- Accord and Satisfaction
- Doctrine of Frustration
- Novation
- Privity of Contract
- Standard Form of Contract
- Rights of the Finder of Lost Goods
- Duty to Mitigate
- Kinds of Damages
- Rectification of Instruments
- Declaratory Decrees
- Preventive Reliefs
- Injunctions
15 Mark Questions
- Describe the essentials of a valid contract. When does the agreement become void?
- Discuss briefly the law relating to communication of offer, acceptance, and revocation. When may an offer and acceptance be revoked?
- Define the quasi contract and what are the obligations under the quasi contract?
- Elucidate the contracts which can be specifically enforced and which cannot be specifically enforced.
- “Acceptance to an offer is what a lighted match to a train of gun powder” – Explain.
- Explain free consent and discuss the factors vitiating free consent.
- Impossibility of performance is one of the grounds for discharge of a contract – Explain.
- Explain the contracts which cannot be specifically enforced.
- Define ‘Contract’ and explain the essentials of a valid contract.
- Discuss the effect of a minor’s agreement.
- What is meant by Doctrine of Frustration?
- Distinguish between temporary and perpetual injunctions and also the mandatory and prohibitory injunctions.
- What are the legal rules as to a valid contract? Discuss with the help of suitable examples.
- What is fraud? Distinguish between fraud and misrepresentation.
- Explain the principle of ‘remoteness of damages’ with special reference to the case of Hadley v. Baxendale.
- Who may obtain specific performance of a contract under the Specific Relief Act?
10 Mark Questions
- A sold some articles from his shop to B on credit, not knowing that B was a minor. The time fixed for payment expired and no payment was made. Sometime after, when B attained majority, A sued B for the price. Will A succeed?
- A forced B to enter into a contract at the point of pistol. What remedy is available to B if he does not want to be bound by the contract?
- Mr. Rajan advances Rs. 2 lakh to Ms. Saritha, a married woman, to enable her to obtain a divorce from her husband. Saritha agrees to marry Rajan as soon as she obtains a divorce. Saritha obtains the divorce but refuses to marry Rajan. Can Rajan recover the amount of Rs. 2 lakh from Saritha?
- Mr. Krishna is the owner of a house. Mr. Jithen is in possession of it and alleges that he is the owner. Krishna wants to protect his ownership. Discuss the remedies available to Krishna to approach the court.
- A invites B to a dinner at his house on a Sunday. B hires a taxi and reaches A’s house at the appointed time, but A fails to perform his promise. Can B sue A for breach of promise?
- A offered to sell his car for Rs.75,000 to B. B in turn offered to buy it at Rs.60,000, which A did not accept, but did not withdraw his original offer. Then B accepted the original offer of Rs.75,000. A did not accept this offer either. B sued A for breach of contract. Decide.
- A executed a promissory note for Rs.20,000 in favour of B, while he was a minor. The promissory note was renewed by A when he attained majority. Can B sue A on the basis of the renewed promissory note? Decide.
- B paid Rs. 1 lakh to A for a promise to obtain employment in public service. A failed to perform the promise. Can B recover Rs. 1 lakh from A? Decide.
- Mr. Das offered to sell his farm to Mr. Lal for Rs.80,000. Lal said he would buy it for Rs.75,000 only. Later, Lal agreed to buy for Rs.80,000, but Das refused to sell. Can Lal sue for specific performance of the contract?
- Arun fraudulently informs Bhushan that his house is free from encumbrances. Bhushan thereupon buys the house. The house is actually mortgaged. Can Bhushan file a case to avoid the contract and recover the money?
- Rajan and Sujan jointly owe Rs.30,000 to Prasad. Rajan alone pays the amount to Prasad. Sujan, not knowing this fact, pays Rs.30,000 again to Prasad. Is Prasad obligated to repay Sujan? If so, under which provision of law?
- A conveys land to B, who bequeaths it to C and dies. Thereafter, D gets possession of the land and produces a forged instrument stating that the conveyance was made to B in trust for him. What is the suitable relief sought by C?
- Mr. Ashok informed via email to Mr. Raghu about selling his plot for Rs.2 lakh. Mr. Raghu went to Mr. Ashok’s residence with money, but Mr. Ashok said he had dropped the idea of selling. Advise Raghu.
- Mr. Kumar is a fruit seller. He mistakenly delivers a box of fruits to Mohan’s house. Mohan consumes the fruits. Can Kumar demand payment from Mohan? Decide.
- P, Q, and R are friends. They jointly promise to pay Rs.60,000 to Mr. Shetty. P becomes insolvent. Discuss the liability of Q and R to pay the debt to Mr. Shetty.
- The Municipal Corporation issues a notice to Mr. John, a house owner, to remove encroachments from municipal land. John files a suit for injunction to restrain the authorities. Can an injunction be issued?
Syllabus Contract Law1 Osmania University
Unit-I
Definition and essentials of a valid Contract – Definition and essentials of a valid Offer – Definition and essentials of valid Acceptance – Communication of Offer and Acceptance – Revocation of Offer and Acceptance through various modes including electronic medium – Consideration – salient features – Exception to consideration – Doctrine of Privity of Contract – Exceptions to the privity of contract – Standard form of Contract.
Unit-II
Capacity of the parties – Effect of Minor’s Agreement – Contracts with insane persons and persons disqualified by law – Concepts of Free Consent – Coercion – Undue influence – Misrepresentation – Fraud – Mistake – Lawful Object -Immoral agreements and various heads of public policy – illegal agreements – Uncertain agreements – Wagering agreements – Contingent contracts – Void and Voidable contracts.
Unit-III
Discharge of Contracts – By performance – Appropriation of payments – Performance by joint promisors – Discharge by Novation – Remission – Accord and Satisfaction – Discharge by impossibility of performance (Doctrine of Frustration) Discharge by Breach – Anticipatory Breach – Actual breach.
Unit-IV
Quasi Contract – Necessaries supplied to a person who is incapable of entering into a contract – Payment by an interested person – Liability to pay for non- gratuitous acts – Rights of finder of lost goods – Things delivered by mistake or coercion – Quantum merit – Remedies for breach of contract – Kinds of damages – liquidated and unliquidated damages and penalty – Duty to mitigate.
Unit-V
Specific Relief Act including 2018 Amendment- Recovering possession of property – Specific performance of the contract – As a rule enforced by court Rectification of instruments – Rescission of contracts as a rule enforced by court- Cancellation of instruments-Declaratory Decrees-Preventive Relief- Injunctions – Generally – Temporary and Perpetual injunctions – Mandatory & Prohibitory injunctions -– Injunctions to perform negative agreement- Limited liability partnership (LLP)Special provision for contracts relating to infrastructure projects – Arbitration clause – A & C Arbitration and Conciliation Act. 1996 – Impact of COVID-19 on “specific performance of contracts”.
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