Pre Exam Marathon

UNIT 4

PERFORMANCE OF CONTRACT
37
 CONDITIONS FOR A
VALID TENDER
OR
ATTEMPTED PERFORMANCE

38
Every such offer must fulfil certain conditions which are as
follows, namely -

➔ It must be Unconditional

➔ it must be made at a proper time and place,

➔ reasonable opportunity to examine the goods

➔ it must be for whole obligation. SECTION 39

Next Topic
BY WHOM A
CONTRACT MAY BE
PERFORMED
The promise under a contract may be performed,
as the circumstances may permit

A PROMISOR HIMSELF
B BY HIS AGENT
C HIS LEGAL REPRESENTATIVE
D 41 THIRD PERSON
E 42 JOINT PROMISORS
 PERSONAL SKILL , TRUST OR DILEGENCE
BETWEEN THE PARTIES
OR
MUST BE PERFORMED BY THE PRMISOR HIMSELF
IS INVOLVED

JORDAN RANVIJAY
Question
Next Topic
LIABILITY OF JOINT
PROMISOR AND
PROMISEE
42 DEVOLUTION OF JOINT LIABILITIES
Promisee Joint Promisor

Chatur Rancho Raju Farhan

LR

LR LR

LR LR LR
 Any one of joint promisors may
43 be compelled to perform
Promisee Joint Promisor

Chatur Rancho Raju Farhan

Compel

Entire
promise
Promisee Joint Promisor

Chatur Rancho Raju Farhan

Promisee Joint Promisor

Chatur Rancho Raju Farhan

3,00,000 1,00,000 1,00,000 1,00,000

Insolvent
Question
Question
44 Effect of Release of one Joint Promisor
Promisee Joint Promisor

Pia Rancho Chatur Raju Farhan

4,00,000 1,00,000 1,00,000 1,00,000 1,00,000

RELEASED 4,00,000

STILL PAID FULL

LIABLE TO
OTHERS CAN
RECOVER
FROM ALL
 DEVOULTION OF JOINT RIGHTS à>
45 RIGHTS OF JOINT PROMISEES
Promisor Joint Promisee

Chatur Rancho Raju Farhan

Promises
LR
to pay

4,00,000 LR LR

To all of
them LR LR LR
Next Topic
PERFORMANCE OF
RECIPROCAL
PROMISE
 NO OBLIGATION IF PROMISEE IS
51 NOT READY
Question
52 ORDER OF PERFORMANCE

As per specified in the contract

If no order – Natural transaction

53 PREVENTING PERFORMANCE

Not providing
à>>
Space, Power , Electricity
54 Default in Reciprocal Promises

He will pay
after he
assembles
the furniture Breaks the Furniture
 Failure to Perform on Time when
55 Time is Essential -
When Time is Acceptance of Delayed
When Time is Not Essential
Essential Performance

If time is not If the promisee accepts

crucial performance
If time is essential
after the agreed time,
and
the promisor fails to
failure to perform on time they can’t claim
perform at the
doesn’t make the contract compensation for the delay
specified time,
voidable,

the contract unless they notify the

becomes voidable but the promisee can claim promisor at the time of
at the option of the compensation for any loss acceptance of their
promisee. caused by the delay. intent to do so.
57 RECIPROCAL PROMISES
58 ALTERNATIVE PROMISES
Next Topic
AGREEMENT TO DO
IMPOSSIBLE ACTS
SECTION 56
56
Initial / Existing Subsequent, Supervening,
(Impossible by Post Contract
Nature)
After entering the contract
At the time of
contract Void Contract
Both the
Void Agreement parties are
discharged
Changes in law, Illegal, natural
disaster, change in
circumstances
Question
Question
Question
Next Topic
TIME AND PLACE
FOR PERFORMANCE
OF THE PROMISE
IF GIVEN IN THE CONTRACT
THEN
FOLLOW CONTRACT
 APPLICATION PERFORMANCE AS PER
IS NEEDED BY PROMISEE DATE AND TIME BY
(His Duty) PROMISEE

I WILL TELL YOU

 NOT SPECIFIED IN THE SPECIFIED IN THE
CONTRACT CONTRACT

NO APPLICATION NO APPLICATION
IS NEEDED BY PROMISEE IS NEEDED BY PROMISEE

I WILL NOT TELL YOU I WILL NOT TELL YOU

DATE - NO DATE - YES DATE

TIME - NO TIME - NO TIME

WITHIN BUSINESS PERFORME AS

REASONABLE HOURS ON PER THE
TIME THAT DAY CONTRACT
SPECIFIED IN THE NOT SPECIFIED IN THE I WILL TELL YOU
CONTRACT CONTRACT (PROMISEE’S DUTY)

FOLLOW THE I WILL NOT TELL YOU PERFORMANCE AT THE

CONTRACT PLACE TOLD BY
DUTY OF THE PROMISOR TO PROMISEE
ASK THE PROMISEE TO
SELECT A REASONABLE
PLACE
Next Topic
APPROPRIATION OF
PAYMENTS
Question
Next Topic
CONTRACTS WHICH
NEED NOT BE
PERFORMED
SUBSTITUTION OF
THE CONTRACT
REMISSION OR WAIVER OF THE
CONTRACT
Next Topic
DISCHARGE OF A
CONTRACT
OM-PILoT BRWN

1. O - OPERATION OF LAW
2. M - MUTUAL AGREEMENT

3. P - PERFORMANCE
4. I - IMPOSSIBILITY
5. LT - LAPSE OF TIME

6. B - BREACH OF CONTRACT
7. R- RIGHTS (MERGER)
8. W - WAIVER OR REMISSION
9. N - NEGLECT OF PROMISEE
 UL
D - SM
Non EX
PI
W
 Pre Exam Marathon

UNIT 5

BREACH OF CONTRACT
Next Topic
TYPES OF BREACH
OF CONTRACT
39 ANTICIPATORY BREACH OF CONTRACT

Anticipatory breach of a contract may happen :

1. Expressly by words - spoken or written and

2. Impliedly by the conduct of one of the parties.
 Refuses on
1 July 2024
Before the DATE
OF
Performance

AMBANIS BOOKED
HIMESH AND
THIS CAME IN THE NEWSPAPER
FOR THE SAME DAYS AND SAME SLOTS
 Option Option
1 2
Rescind immediately Do not rescind the contract
+ +
Treat it as Operative
Sue for damages +
Other remedies Wait till Due date
+
Without waiting If Performed No Breach

Means
Did not Sue for damages
Treat it as Actual Breach Performed Other remedies

Supervening Void and Can’t

Impossibility claim damages
 ACTUAL BREACH OF CONTRACT

● In contrast to anticipatory breach, it is a case of refusal to perform the

promise on the scheduled date.

● The parties to a lawful contract are bound to perform their respective

promises.

● But when one of the parties breaks the contract by refusing to perform
his promise,

● he is said to have committed a breach

● In that case, the other party to the contract obtains a right of action
against the one who has refused to perform his promise.
 On the date
or
During the performance
CALLED FOR 12 JULY – DID NOT COME

CALLED FOR 4 days Performance

Came but left after 2 days
Question
Next Topic
REMEDIES FOR
BREACH OF
CONTRACT
 CONDITION
There should be Damages

No Damages = No Compensation
 73 SUIT FOR DAMAGES

Compensation can be claimed for -

1. Any loss or damage which naturally arises in the usual course
of events.

2. A compensation can also be claimed for any loss or damage

which the party knew when they entered the contract, as
likely to result from the breach.

3. That is to say, special damage can be claimed only on a

previous notice. But the party suffering from the breach is
bound to take reasonable steps to minimize the loss.

4. No compensation is payable for any remote or indirect loss.

 ORDINARY DAMAGES – DIRECT / GENERAL

● Compensation for any loss or damage

● which naturally arose in the usual course of things from such

breach, or

● Directly from the breach of the contract

Only Direct damages - Allowed

 For 5000 / Bag

Market rate on
1/1/2024
100 bags of wheat =
On 1/1/2024 5500 / Bag

B can claim ordinary damages

500 / bag (x) 100 = 50,000

MARKET PRICE – CONTRACT PRICE

 Such compensation is not to be given

for any remote and indirect loss or damage

Hadley vs. Baxendale

CAN’T CLAIM INDIRECT DAMAGES OR REMOTE DAMAGES

 Hadley vs. Baxendale

Flour mill

Spare Part Mill was closed

for extra 7 days
Delayed the delivery by 7 days

CAN’T CLAIM INDIRECT DAMAGES OR REMOTE DAMAGES

 SPECIAL DAMAGES

● Where a party to a contract receives a notice of special

circumstances affecting the contract,

● he will be liable not only for damages arising naturally and

directly from the breach but also for special damages.

Loss of Profit

Only when the other party knows

 Took
Wedding
For 5000 / Bag contract
100 bags of wheat
B can claim only ordinary
On 1/1/2024
damages and not loss of Profit

If A has the
knowledge, then B
can claim Loss of
Profit
Question
Question
 VINDICTIVE OR EXEMPLARY DAMAGES

Punitive in Nature - Punishment

A businessman whose credit has suffered will get exemplary

damages even if he has sustained no pecuniary loss. But a non-
trader cannot get heavy damages in the like circumstances,
unless the damages are alleged and proved as special damages.
(Gibbons v West Minister Bank)
 NOMINAL DAMAGES

● Nominal damages are awarded where the plaintiff has proved

● that there has been a breach of contract but
● he has not in fact suffered any real damage.
● It is awarded just to establish the right to decree for the breach
of contract.
● The amount may be a rupee or even 10 paise.

Generally – No loss No Damages

But
Court allows to prove one party
guilty and at default
 DAMAGES FOR DETORIATION

● In the case of deterioration caused to goods by delay,

● damages can be recovered from the carrier even without

notice.

● The word ‘deterioration’ not only implies physical damages to

the goods

● but it may also mean loss of special opportunity for sale.

74 PENALTY AND LIQUIDATED DAMAGES

The parties to a contract

may provide beforehand

the amount of compensation

payable in case of failure to perform the contract.

In such cases, the question arises whether the courts will

accept this figure as the measure of damage.
PRE-FIXED DAMAGES

English Law
 English Law

PENALTY – 1,00,000

ACTUAL LOSS – 70,000 ACTUAL LOSS – 1,50,000

PENALTY – 1,00,000
 Indian Law

ME PENALTY
SA
LIQUIDATION DAMAGES

COURT IN INDIA
CALCULATES
REASONABLE COMPENSATION
 Indian Law
COURT
WILL
CALCULATE

REASONABLE
1,00,000 10,000
COMPENSATION

NOT EXCEEDING
21,000 1,11,000
THE CONTRACT
COURT WILL NEVBER
ALLOW MORE
Question 11
Next Topic
REMEDIES OTHER
THAN CLAIMING
DAMAGES
Next Topic
QUANTUM
MERUIT
AS A PART OF OTHER REMEDIES
 REASONABLE
DAMAGES are COMPENSATORY COMPENSATION

In nature while Awarded on

QUANTUM MERUIT is REST ITUTORY Implication

(Implied)
The object of allowing a claim on quantum meruit is to

Recompensate the party or person for

Value of work which he has done

 VOID CONTRACT

To Sell on 10th and

15th September

10th – Done
Contract WAS valid and
then ceases to be enforceable
15th - NO
Ex. – CHANGE IN LAW
On 12th September
Pre Exam Marathon

UNIT 6

CONTINGENT & QUASI

CONTRACT
Next Topic
CONTINGENT
CONTRACT
 Absolute

• No conditions
• Certain event
• Offer
• Acceptance
• Everything is present

Contingent
With conditions
and
Uncertain event
TOOK INSURANCE

This contract is dependent on the

Happening of a specific event or condition

Which is uncertain

What is the contingency here ? – No fire – NO compensation

 I will buy the house
If it is not sold to anyone
before Jan 2025

This contract is dependent on the

Non-Happening of a specific event or condition

Which is uncertain
31 MEANING OF CONTINGENT
ESSENTIALS OF A CONTINGENT CONTRACT

Happening or non-happening of some event or condition

• The performance of a contingent contract would depend upon

the happening or non-happening of some event or condition.

• The condition may be precedent or subsequent

 An event which is –

Neither

A performance directly promised as part of the

contract,

Nor

The whole of the consideration for a promise”

 THE EVENT IS REFERRED TO AS –
COLLATERAL TO THE CONTRACT

The contingent event should not be a mere ‘will’ of the

promisor.

The EVENT must be UNCERTAIN

Next Topic
RULES RELATING TO
ENFORCEMENT
Question
Next Topic
CONTINGENT
VS
WAGERING
1. Void and Unenforceable 1. Valid and Enforceable

2. Unrelated 2. Related to the Subject

matter
3. Speculation
3. E.g. – Insurance –
4. No meaningful occurrence of fire – actual
connection with the risk and not just
subject matter speculation

5. E.g. – Betting on Football

match
Next Topic
QUASI CONTRACT
NO
• Offer,
• No Acceptance,
• No Consensus ad idem and
• In fact, neither Agreement nor Promise

And yet
• The law imposes an obligation on one party and
• confers a right in favor of the other.
• We shall have a look at these cases of ‘Quasi-contracts’
• A contract may be absolute or a contingent.
Such cases are not contract in the strict sense,
But the Court recognizes them as relations resembling those of
contracts
and
enforces them as if they were contracts.

Hence the term Quasi –contracts (i.e., resembling a contract).

These relations are called quasi-contractual obligations.

In India it is also called a ‘certain relation resembling those

created by contracts.
1 In the first place, such a right is always a right to money and
generally, though not always, to a liquidated sum of money.

2
Secondly, it does not arise from any agreement of the parties
concerned, but is imposed by the law; and

Thirdly, it is a right which is available not against all the world, but

3 against a particular person or persons only, so that in this respect it

resembles a contractual right.
Question
Next Topic
CASES DEEMED
AS
QUASI CONTRACT
 • Bound by law
• To protect the other
party
• Non-gratuitous

Gov A B

On lease Owner
zamindar
 Gov A

Compulsory Govt Taken back and

retired him servant given salary also
but no work

Court
Finder of the Lost Goods -
1. He is a bailee

2. Take proper care as a man of ordinary prudence

3. Find the owner – efforts

4. No right to sell , mix or do anything with the goods

(No appropriation is allowed)
5. NO personal usage

6. To restore the goods to the True Owner only

Question
Question