Contract Case Laws
Contract Case Laws
OFFER
Harvey v. facey – bumper hall pen case
diffrence between invitation to offer and offer.
Harris v. nickerson – auction sale (invitation to offer)
Articles advertised in auction is invitation to offer
Lalman Shukla v. gauri datt- (nephew missing case)
There must be knowledge of offer and acceptance.
Harbajan lal v. harcharan lal- sec 8 - general offer can be accepted by
conduct of any person who fulfils the condition
INTENTION TO CREATE LEGAL RELATION
Merrit v. merit- husband agreed to transfer home to wife on
separation
Jones v. padvatton- informal agreement between mother and
daughter
Mc gregor v. mc gregor- agreement between husband and wife
Balfour V. Balfour- Husband wife (maintainance)
Bawari Lal V. Sukhdarshan Dayal- a simple notification made under
the housing project reserving the property for a Dharamshala did not
bind the buyer to build a Dharamshala.
ACCEPTANCE
Boulten v. jones- offer can be accepted only by person to whom it is
made.
Carlill v. carbolic smoke ball co.- acceptance by conduct to a general
offer.
{Jordan v. Norton- double price
U.P state electricity board v. goel electrics }
Felthouse v. bindley- {sec 2(a)} silence is not acceptance
Bhagwan Das Kedia V. Girdhari lal and Co.- in case of acceptance by
phone, the contract is deemed to be complete when the offeror
hears the acceptance at this end rather than when the acceptor
speaks the words of acceptance.
REVOCATION OF AN OFFER
Powell v. lee- acceptance must be communicated by an offeree
acting in his authorized capacity. {sec 2(a) and sec 2(b)}
Dickinson v. dodds- communication of withdrawal of an offer by any
other party is valid and would be treated as if it came from person
themselves.
COUNTER OFFER
Hyde v. wrench- counter offer destroys the original offer
Mc phearson v. apanna- (counter offer cannot be accepted) offer
should be as per sec 2(a)
CROSS OFFER
Tim v. hoffman- cross offer cannot be accepted
CONSIDERATION
Durga prasad v. baldeo- consideration at the desire of promisor
Kedarnath v. gorie mohammad- future consideration
Doraswammi iyer v. Arunachala ayyer- promisee must have acted on
something amounting more than a bare promise.
Abdul aziz v. masum ali- a mere promise to subscribe to a charitable
institution cannot be sued upon if nothing has been done in
furtherance of the fund raised.
Kastoori devi v. chiranji lal- withdrawl of a pending suit by a wife
against her husband is a good consideration for his promise to pay
her maintenance. (FORBEARANCE TO SUE)
PRIVITY TO CONTRACT ( part of consideration only)
Dutton v. poole- beneficiary to contract as per Indian contract act
Twiddle v. Atkinson- decided as per common law – beneficiary to
contract cannot sue
Rose v. joseph- a girl for whose benefit the agreement was formed
for marriage has a right to sue the defendant for the damages for the
breach of promise of marriage even if she is not a party to contract.
Dunlop v. selfridge- agreement for resale price maintenance was not
enforceable due to the matter of privity of contract.
Sundaraja Ayyangar V. Lakshmi Ammal- there was an agreement
among the brothers of a Hindu joint family to pay for the expenses to
be incurred for the marriage of their sister. Despite being a third
party to the agreement, the sister had the right to enforce the
provision that was made for her.
Collins V. Godefroy- Doing of something which a person is already
legally bound to perform is no consideration
Ramachandra V. kalu raju- promise to pay a special reward to a
pleader if the suit decided in the promisor’s favor does not constitute
consideration.
Stilk V. Myrick- (Voyage of a ship CASE) They were doing no more
than their duty in working the ship home
Ward V. Byham- the mother of an illegitimate child is bound to maintain it,
whereas the father is under no obligation to pay her maintenance.
Nash V. Inman- A minor was supplied with Fancy Waist Coats who
already has ample clothes. Held, that the plaintiff cannot recover
price of dresses.
(Unsoundness of mind)
Abdur Rauf V. Ayoman Bibi- A person is in a position to dominate the
will of another where mental capacity is affected by reason of age,
illness or bodily or mental distress.
FREE CONSENT
(Coercion)
(Undue influence)
(Fraud)
(Misrepresentation)
(Mistake- as to indentity)
Philips V. Brooks- While the fraudster purchased the ring, there was
no mistake as to identity due to the fact this contract was made to
face to face and the jeweler already knew person’s name.