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BA LLB (Second Year) Semester-III


           (General Principles of Contract)

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1. Purpose, Evolution, and Scope of Law of Contracts.
2. Proposal and Promise including Communication of Proposal, Acceptance, and communication of the Revocation of Proposal and Acceptance.
3. Consideration and doctrine of Privity of  Contract.
4. Lawful  Object and Consideration.
5. Capacity of Contract: Minors, Persons of unsound mind and others disqualified by Law; Nature and effects of Minor’s Agreements; Doctrine of Restitution.
6. Consent and free of contracts.
7. Standards Form of Contracts.
8. Agreements declared Void and Voidable under the Contract Act.
9. Contingent Contracts.
10. Law relating to certain relations resembling those created by contracts, viz. Quasi-Contracts.
11. Discharge of contracts with special reference to the doctrine of frustration.
12. Remedies in the form of compensation.


1. Agreement And Contract- Definition Elements And Kinds

1. Define and explain fully with the help of decided cases the term ‘contract’. Is there any particular form or condition or a mode in which a contract is to be executed?
” There can be an equality binding contract between the parties on the basis of the oral agreement unless there is a law which requires the agreement to be in writing.” Examine the statement with examples.
2. ‘An Agreement enforceable by law is a contract. Discuss this definition, bringing out clearly all the elements of a valid contract.
‘A contract is an agreement creating an obligation. Discuss this definition, bringing out clearly all the elements of a valid contract.
What are the essential elements of a valid contract?
3. Discuss in detail the classification of contracts.
4. (a) What is an agreement? what are its characteristics?
(b) Is the Law of Contracts the whole law of obligations?
(c) “All contracts are agreements, but all agreements are not contracts.” Explain this statement.
5. What is a statutory Contract? Discuss the formalities and conditions necessary when Central and state Governments enter into contracts. Also, examine the principle of legitimate expectation in this regard.

2. Formation of Contracts

1. What is an Offer(Proposal)? Examine the legal rules as to “offer”.
2. (a) Explain the requirement of “intention to contract”. Also, examine Supreme Court’s view on the requirement of “intention”.
(b)What are General and Specific offers?
(c) Differentiate between ‘offer’ and ‘invitation to treat’ giving suitable examples and case laws.
3. What do you understand by acceptance of an offer? Discuss the legal rules as to the communication of Acceptance. An acceptance to be binding must fulfill certain conditions. Discuss those conditions. Also, examine the legal rules as applicable to acceptance of an offer.
4. ” Acceptance must be absolute and unqualified and must correspond to the terms of the offer”. Discuss this important and essential condition for a valid acceptance.
5. Discuss the law relating to a lapse of an offer. Is acceptance irrevocable?
Acceptance should be made before the offer lapses. Discuss the circumstances in which an offer lapses.
6. What are Standard form Contracts? Discuss rules devised by the Courts regarding ‘Notice of Printed Terms’.
“The Courts have evolved and applied certain rules to protect the interest of consumer, customer or passenger, as the case may be upon whom standard form contract or exemption clauses are imposed”.Discuss those rules.

3. Capacity to Contract

1. What do you understand by “Capacity to Contract”? State the position of a minor under the Indian Contract Act.
Discuss fully the contractual liability of a minor with reference to the leading cases.
Examine the nature and effects of a minor’s agreement.
Also, discuss the issue of beneficial contracts and ratification as applicable to minors.
2. (a) What are necessaries? When is a minor liable on a contract for necessaries?
(b) Discuss with suitable illustrations the law relating to the validity of contracts by persons of unsound mind.
(c) Discuss with suitable illustrations the law relating to the validity of contracts by ‘Other Persons’.

4. Consent

  1. (a)”Two or more persons are said to consent when they agree upon the same thing in the same sense.” Explain fully.

(b) When is consent said to be free/

(c) Define Coercion and state its effect on the validity of a contract.

2. What is undue influence? Can undue influence be presumed? When one can question the adequacy of consideration?

Define ‘ Undue Influence ‘ and examine critically the effect of undue influence on the formation of a contract.

3. (a) Distinguish between Coercion and Undue Influence.

(b) Under what conditions is a contract said to be induced by undue influence by one of the parties there too?

4. (a) What do you understand by misrepresentation?

(b) What are the requirements of misrepresentation?

5. (a) What are the consequences of misrepresentation?

(b) A party cannot complain of misrepresentation if “he had the means of discovering the truth with ordinary diligence”. Explain this statement.

6. What do you understand by fraud? what are its essentials?

“An attempt at deceit which does not deceive is no fraud”. Explain

Also, give the difference between Fraud and Misrepresentation.

7. Discuss the law relating to the effect of mistakes on contracts?

Explain and illustrate the effect of mistake of facts on contracts?

‘Mistake in formation of contracts may be common, mutual or unilateral’. Discuss the statement and explain briefly the caese where such mistakes may avoid the contract.

5. Consideration

1. Define Consideration. Why is it essential in a contract?
What are the legal rules regarding consideration? Or
Define Consideration and point out the silent features of the term ‘Consideration’ as defined in the Indian Contract Act.
Define Consideration and point out the difference between Engish Law and Indian Law in this respect.
2. Explain the rule of “Privity of Contract” as followed in England and India. Examine some of the commonly known exceptions to the Privity rule.
3. “Act, Abstinence or Promise to be a good consideration, must be something more than what the promisor is already bound to do.” Elaborate and explain the statement.
4. ” An Agreement without Consideration as given in Sec. 25 of the Indian Contract Act.

6. Void, Voidable and Unlawful Agreements

  1. What are the different considerations and objects rendered as unlawful by Sec.23 of the Indian Contract Act?

Under what circumstances is the object or consideration of a contract deemed unlawful? Illustrate with examples.

2. ‘A contract shall not be enforced if the court regards it as opposed to public policy.’Discuss.


‘Agreement opposed to public policy is void’. Comment.


Discuss the doctrine of public policy. Give examples of agreements contrary to public policy.

3. (a) Distinguish between void and Illegal agreements.

(b) “Every illegal agreement is unlawful, but every unlawful agreement is not necessarily illegal”. Discuss the statement.

(c) Distinguish between void agreements and voidable contracts.

4. What consequences will ensue if the object or consideration of an agreement is unlawful. In this connection, also elaborate on the following :

(a) Collateral Transactions

(b) Principles of Severability

5.(a) Enumerate the void agreements given under the Contract Act.

(b) Discuss the agreements the meaning of which is uncertain.

(c) Explain the concept of restitution.

6. Discuss the following agreements which are declared to be void:

(a) Agreement in restraint of trade.

(b) Agreement in restraint of legal proceedings.

7. What are agreements by way of wagers? What are the legal effects of such agreements? Is a contract of Insurance a wager?

What tests would you apply to determine if or not, an agreement is by way of wager?

” Insurance contracts are basically wagering agreements”.Comments.

7. Contingent and Quasi Contracts

  1. Explain the meaning and essential elements of a Contingent Contract? When can a contingent contract be enforced?
  2. Explain what is meant by Quasi -Contract and give illustrations of such Contracts. Elaborate on the following kinds of quasi-contractual obligations.

(a) Supply of necessaries

(b) Payment by Interested Person

(c) Liability to pay for non-gratuitous acts

3. Elaborate on the following kinds of Quasi -contractual obligations:

(a) Responsibility of Finder of Goods

(b) Money paid on things delivered by mistake or under Coercion.

4. (a) Distinguish between a contingent contract and a wagering agreement.

(b) What do you understand by quantum meruit arise?

8. Discharge and performance of contracts


1. What is ‘Offer to Perform’? Discuss the requisites of a valid tender. Examine the effect of the refusal of a party to perform a promise wholly.
2. (a) By whom must the contract be performed? Explain the revolution of joint liabilities and rights in a contract. Who can demand the performance of a contract?
(b) Explain and illustrate the circumstances under which contracts need not be performed.
what do you understand by the performance of the contract? Under what circumstances does a contract need not be performed?
3. Discuss the rules regarding time and place for the performance of a contract as given in sections 46-50 and 55of the Indian Contract Act.
4. (a) What are Reciprocal Promises? Discuss the rules regarding the performance of Reciprocal Promises.
(b) What are the provisions of the Indian Contract Act with regard to appropriation of payments made by the debtor to the creditor?
5. Discuss the Provisions of the Indian Contract Act,1872 regarding ‘Assignment of Contracts’.
6. Discuss the discharge of contract by Agreements as given in section 62-67 of Indian Contract Act 1872.
7. (a) What do you understand by the discharge of a contract by breach of a contract?
(b) What do you understand by a discharge of a contract by lapse of time?
(c) What do you understand by a discharge of a contract by the operation of Law?

9. Breach of Contract and Remedies

1. Explain ‘ breach of Contract’ as a mode of discharge of contract.
What do you understand by ‘anticipatory breach of contract’? State the rights of the promisee in case of such breach.
2. “Impossibility of performance, as a rule, is not an excuse for non-performance of a contract.”
” A contract to do an act which, after the contract is made, becomes impossible, becomes void when the act becomes impossible.” Comment.
” A contract to do an act which, after the contract is made, becomes impossible, becomes void when the act becomes impossible.” Comment.
Discuss the discharge of contracts by “impossibility of Performance”. Also critically examine the Doctrine of frustration in this regard.
3. List out the remedies available to an aggrieved party on the breach of a contract. Discuss the following remedies for breach of contract.
(a) Rescission
(b)Quantum meruit
(c)Specific performance
(d) Injunction
(e) Rectification or cancellation.
4. State briefly the principles on which damage is awarded on the breach of a contract. Or
Examine critically the rule in Hadley v. Baxendale, and indicate to what extent the said rule is applicable in India.
“The damages which the other party ought to receive in respect of breach of a contract should be such as may fairly and reasonably be considered either arising naturally from such breach of contract itself or such as may reasonably be supposed to have been in the contemplation of both the parties at the time they made the contract, as the probable result of the breach of it.” Comment.
5. Elaborate on the following with regard to Breach of Contract:
(a) measures of Damages
(b) liquidated Damages and Penality