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r https://t.me/LawCollegeNotes_Stuffs Avtar C O N T R A C T ° O & SPECIFIC RELIEF Avtar Singh Twelfth Edition 24616409,0110525171 ' J(MO)6G337576,66320757.99339922007755775577 ORDEBONLINEAll>™„Oook.tsuso^^r« www.iawrels.com Oaa^rwCafDNo17799075753 IfOlKPt?55l1C?m,TI!«WofflT?IJS.DoW«Ami,, 1 J https://t.me/LawCollegeNotes_Stuffs Law College Notes & Stuffs Exclusive group for Law Students Join Us Here for More Materials Law College Notes & Stuffs https://t.me/LawCollegeNotes_Stuffs LAW OF CONTRACT 'V. J and SpecificRelief } I https://t.me/LawCollegeNotes_Stuffs Bythesame author. LawofArbitrationand Conciliation LawsofBankingandNegotiableInstruments LawofCarriage(Air,LandandSea) BusinessLaw (Principles ofMercantileLaw) Introductionto CompanyLaw CompanyLaw CompetitionLaw ConsumerProtection:LawandPractice ContractLaw(EasyLawSeries) TextbookonLawofContractandSpecificRelief LawofInsolvency LawofInsurance IntellectualPropertyLaw- NegotiableInstruments IntroductiontoLawofNegotiableInstruments Law ofPartnership (Principles,Practice&Taxation) Introductionto Partnership (includingLimitedLiabilityPartnership) LawofSaleofGoods P.S.A.PiLLAi'sLawofTort[Ed] Works inHindi: BankKariVidhievamParkramyaLikhatAdhiniyam BhagidariVidhievamSeemitDayetavBhagidariAdhiniyam CompanyVidhi CompanyVidhi(Ek Parichay) Madhyastham,Sulahevam AnukalpiVivadNiptanVidhi MalVikrayaevamAvkrayaVidhi ParkramyaLikhat SamvidaVidhiKeSidhantTathaVinirdishtAnutoshAdihiniyam,1963 SamvidaVidhiEvamVinirdishtAnutoshAdhiniyam—EkParichay VanijyikVidhikeSidhant ViDHiKUpchar—LegalRemedies https://t.me/LawCollegeNotes_Stuffs Law pPContract arid Specific Relief 9- EBC Explorer" Free onlinesuppor,ting resourcesat companionresourcesforlegal.research ebcexplorer.com Learn with EBC Explorer™ EBCExplorer™isacompanionwebsite toLawofContractandSpecificReliefIt provides access to themostimportant cases referredto inyourbook;alongw^ith updates, blogs,a discussionforum and ahost offreelearningresources.Connected to thepremiumdatabaseofSCCOnline®, the CasePilot'^'^ featurehelps youretrieve casesinstantly.Combiningthe bestoftheprint and the vv^eb, theEBCExplorer™ helpsyoustay ahead, always! 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V ^ Geta glimpseofOnlineResources! re Turn to the end ofthe book for further details ofthe EBCExplorer™'online resources for this book. https://t.me/LawCollegeNotes_Stuffs LAW OF CONTRACT (AStudy of the Contract Act, 1872) and Specific Relief Dr Avtar Singh Advocate BCom,LLM,LLD, (Lucknow), SaraswatiSamman (UP Govt.) Vidya Bhushan (HindiSansthan,UP) Ex-VisitingProfessorofBusinessLaws, IIM,Lucknow Ex-Readerin Law, LucknowUniversity Lucknow IDelhi |Allahabad Bangalore |Ahmedabad | Nagpur https://t.me/LawCollegeNotes_Stuffs E3C Website: www.ebc.co.in,E-mail:[email protected] Lucknow(H.O.): 34, Lalbagh,Lucknow-226001 Phones:+91-522-4033600 (30lines), Fax: +91-522-4033633 1 NewDelhi:5-B,AtmaRamHouse,5thFloor 1,TolstoyMarg, ConnaughtPlace,NewDelhi-110001 Phones; +91-11-45752323,+91-9871197119,Fax: +91-11-41504440 Delhi:1267,Kashmere Gate, OldHinduCollegeBuilding, Delhi-110 006 Phones: +91-11-23917616,+91-9313080904,Fax: +91-11-23921656 Bangalore:25/1,AnandNivas,3rdCross,6thMain, Gandhinagar, Bangalore-560009, Phone: +91-80-41225368 Allahabad:Manav LawHouse, LawPublishers&Booksellers,Near Prithvi Garden, Opp.Dr.Chandra'sEyeClinic,ElginRoad,CivilLines,Allahabad-211001 Phones:+91-532-2400877,2422023,Fax:+91-532-2623584 Ahmedabad:SatyamevComplex-1,Ground Floor,ShopNo. 7 Opp.High CourtGateNo. 2(GoldenJubileeGate) Sarkhej—GaiidhinagarHighwayRoad,Sola,Ahmedabad-380060 Phones:+91-9228012539,+91-7567903245 Nagpur: F-9,GirishHeights,Near LICSquare,KampteeRoad,Nagpur-440001 Phones:+91-712-6607650, +91-7028924969 www.facebook.com/easternbookcompany www.twitter.com/ebcindia Shoponline at:www.ebcwebstore.com FirstEdition, 1973 SeventhEdition, 1999 EleventhEdition, 2013 SecondEdition, 1976 EighthEdition, 2002 Reprinted, 2016 ThirdEdition, 1980 NinthEdition, 2005 TwelfthEdition, 2017 FourthEdition, 1985 Reprinted, 2006 Reprinted, 2018 FifthEdition, 1989 TenthEdition, 2008 Reprinted, 2019 SixthEdition, 1994 Reprinted, 2010 Reprinted, 2020 9 789388 822893 Allrightsreserved.Nopartofthisworkmaybecopied,reproduced,adapted,abridgedortranslated, storedinanyretrieval system, computersystem, photographic or other system or transmitted in any form byany means whether electronic, mechanical,digital, optical,photographicor otherwisewithoutapriorwrittenpermissionofthecopyrightholders,EBC Publishing(P)Ltd.,Lucknow.Anybreachwillentaillegalactionandprosecutionwithoutfurthernotice. Thisbookissoldsubjecttothecondition that it,oranypartofit,shallnotbywayoftradeorotherwise, besold,lent, re-sold,displayed,advertisedorotherwisecirculated,withoutthepublishers'priorwrittenconsent,inanyformofbinding, coverortitleotherthanthatinwhichitispublishedandwithoutasimilarconditionincludingthisconditionbeingimposed onthesubsequentpurchaser(s).Anybreachofanyoftheserightsorconditionswillentailcivilandcriminalaction without furthernotice. Whileeveryefforthasbeenmadetoavoidanymistakeoromission,thispublicationisbeingsoldonthecondition and understandingthatneithertheauthornorthepublishersorprinterswould beliableinanymannertoanyperson byreason ofanymistakeoromissioninthispublicationorforanyactiontakenoromittedtohetakenoradvicerenderedoraccepted onthebasisofthiswork. Foranyerrorinthe.textoranydefectinprintingorbinding, thepublisherswillbeliable onlyto replacethedefectivecopybyanothercorrectcopyofthisworkthenavailable. Alldisputessubjecttotheexclusivejurisdictionofcourts,tribunalsandforumsatLucknowonly. Copyright©EBCPublishing(P)Ltd.,Lucknow Publishedby EasternBookCompany,34, Lalbagh,Lucknow-226001 underlicencefrom EBCPublishing(P)Ltd.,Lucknow PrintedandProducedby MediaNetwork,A-388,SaritaVihar,NewDelhi-110 076 https://t.me/LawCollegeNotes_Stuffs Preface The Contract Act, 1872 provides the legal framework for formulation of trade, business andcommercialrelations andtransactions in whichcontract is involved. It has completed its history of 144 years. The provisions of the Act and principles enshrined therein and the application of such principles by the courts to enormous and everchanging fact-situations constitute the body ofthe Law of Contract of the country. The court decisions provide the basic source material of development of this subject and also for finding outthe recenttrends, some ofthe important rulings of the period between the present and preceding editions are to be seen in the following areas of the subject: A contract means bilateral rela tions, not just only unilateral. But exceptionally, one of the parties may be given the right to do things unilaterally, e.g., a banker was given the right to appoint an arbitrator all by himself under the loan arrangement. This special position may beallowed to protectthe interest oflending bankers. An agreement entered into by the e-mail process has binding effect, though not signed by parties. Some new decisions have been delivered on withdrawal of bids. No bidder can insist that his bid should be accepted because it isthe lowest. All that he can say is that there should be no bias, and there should be fairness, in the decision-making process. The mere deposit of20 per cent ofthe bid amount doesnot make the bidder owner of the property. He has to wait for approval ofhisbid.Letters ofintentthatthe tenderwould beaccepted does nothave bindingeffect either way.Acontrac tor can beblacklisted onlybecauseofgravemisperformance ofthe contract, not because of his impropriety at the stage of bids or tenders. No binding obligation emergeson the part ofthe Government where the contract is in conflict with constitutional provisions. Where the owner of land had enjoyed considerable benefits after his land was freed from acqui sition and before it was transferred to the Government for school making purpose without price, he was not allowedto assail the transaction bysay ingthat itwas withoutconsideration. Mortgagein favour ofaminorisvoid ab initio. Alienation by de facto guardian of minor's land was reversible at the instance of the minor on attaining majority and the price paid was [VII] https://t.me/LawCollegeNotes_Stuffs VIII Law ofContract recoverablefrom the guardian and not the minor. Beneficial rights under the Employees' State Insurance Act cannot be contracted out. Controllers ofCricketcannot havean interestintheeventsorganisedbytheBoard.Itis something awfully againstpublic policy. Restraint upon a former employee as a ladieshairdresser from practising the sameprofessionfor 12months and within half a mileofthe employer's placehas beenheldto bereasonable. An arbitration agreementrestraining parties from approaching court overthe same issuehas been held to benot opposedto public policy or being in restraintoftrade. ALok Adalatisnota court. Restrictions upon jurisdiction are not applicable to it. Acontract for CCTVservicesat Railwaystations whichhappen to displayvulgar material wasterminated.Theforfeitofthewholeofhisdepositmoneymightberuin ousto him whereasthe Railway'slosswas not ofmonetarynature. Abankguaranteewasnotallowedto beencashed because theAuthority had made good its lossesotherwise. The controversial point whether the surety alone be allowedto be suedwithout touchingthe principal debtor thoughthelatter isinpossessionofmeanswhichcomfortablyenablehimto pay,continues to engageattention ofthe courts. The right to encash a bank guaranteewasheldto havebeenlostwhenthecontract hadexpiredwithout encashmentofthe bank guarantee. Pledgee's right forhisduesprevailsover all other rights and claims. If an LIC agent does not depositthe amount received byhimfromtheinsured, LIChasto bear theconsequences. Privityofcontract isnecessaryfor seekingspecific performance. Acon tract requiring a retrospectivedate for executionwas heldto benot specif ically enforceable. Specific enforcement cannotbeclaimed againstaperson whoisdevoid oftitleoranyrighttotransfer:Nemodat quodnon habet.A personwho becomes entitledto specific performance also becomes entitled to an injunction to prevent the other party from dealing with the property in any manner whatsoever. Alltheseand manymorerulings havebeenabsorbedinto thetext attheir aippropriate places. Ghaziabad —Dr Avtar Singh October 3, 2016