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CASE LAWS (Contracts)

The document discusses various case laws related to contract law in India. It summarizes several landmark cases that have established important legal principles around topics like offer and acceptance, consideration, consent, competence of parties and void agreements.
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0% found this document useful (0 votes)
161 views14 pages

CASE LAWS (Contracts)

The document discusses various case laws related to contract law in India. It summarizes several landmark cases that have established important legal principles around topics like offer and acceptance, consideration, consent, competence of parties and void agreements.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE LAWS

Basic Concepts under the Contract Act 1872

Carlill v. Carbolic Smoke Ball Co. (1891-4) All ER Rep. 12:


A landmark contract law case where a reward offer for using a flu remedy was deemed a binding
contract. The court held that the company's promise to pay a reward constituted a unilateral
contract, and the claimant, who fulfilled the conditions, was entitled to the reward.

Pharmaceutical Society of Great Britain v. Boots Cash Chemist (Southern) Ltd. (1952) 2 All ER
Rep. 456:
A significant case in contract law, establishing the principle that the display of goods in a shop
constitutes an invitation to treat rather than an offer. The customer makes an offer at the point of
bringing goods to the cashier, and acceptance occurs upon payment.

Balfour v. Balfour (1918-19) All ER 860 (CA):


A notable case in family law where an informal agreement between spouses was not considered
legally binding. The court held that there was no intention to create legal relations, emphasizing
the domestic context of the arrangement.

Lalman Shukla v. Gauri Datt (1913) XL ALJR 489 (All.):


A case in Indian contract law dealing with the concept of consideration. The court ruled that an
act done before the promise is made at the promisor's request can be valid consideration,
establishing an important precedent.

Bhagwandas Goverdhandas Kedia v. M/s. Girdharilal Parshottamdas & Co., AIR 1966 SC 543:
A case in Indian contract law where the Supreme Court clarified the concept of anticipatory
breach. The court held that the promisee can treat the contract as breached and sue for damages if
the promisor anticipatorily repudiates the contract.
Harvey v. Facey (1893) AC 552:
A case illustrating the distinction between an offer and an invitation to treat. The court held that a
statement providing information about the lowest price at which the seller might sell was not an
offer but an invitation to treat.

Felthouse v. Bindley (1862) 11 CB 869:


A case in contract law emphasizing the importance of mutual assent. The court ruled that silence
does not constitute acceptance, and for a valid contract, there must be an overt act or expression
indicating consent.

Provisions relating to essentials of valid proposal, acceptance, Communication and revocation of


offers and acceptances

Union of India v. Maddala Thathiah, AIR 1966 SC 1724:


The case involved a dispute over the retirement age of government servants. The Supreme Court
held that the power to fix the retirement age is discretionary and can be exercised by the
government. The judgment emphasized the importance of the government's authority in
employment matters.

Rajendra Kumar Verma v. State of M.P., AIR 1972 MP 131:


This case dealt with the suspension of a government employee. The Madhya Pradesh High Court
ruled that suspension is not a punishment but a precautionary measure. The court emphasized the
importance of following proper procedures and principles of natural justice in disciplinary
matters.

Kanhaiya Lal Aggarwal v. Union of India, AIR 2002 SC 2766:


This Supreme Court case addressed the issue of reservation in promotions for Scheduled Castes
and Scheduled Tribes. The court upheld the validity of the policy, emphasizing the need for
balancing social justice and efficiency in public administration.

Haridwar Singh v. Bagun Sumbrui (1973) 3 SCC 889:


The case involved a dispute over possession of land. The Supreme Court held that when there is
a clear finding of fact by the lower courts, the Supreme Court would not interfere in the absence
of any substantial question of law. The decision underscored the limited scope of interference by
the apex court in matters of fact.

Indian Airlines Corporation v. Sm. Madhuri Chowdhuri, AIR 1965 Cal. 252:
This case dealt with the liability of an airline for the loss of a passenger's luggage. The Calcutta
High Court held that the airline was responsible for the loss as it failed to prove that it had taken
all necessary measures to prevent such incidents. The decision emphasized the carrier's duty to
exercise due diligence in handling passengers' baggage.

E-Contracts

In the case of Societe Des Products Nestle S.A. vs Essar Industries, the Delhi High Court ruled in
2006. The dispute centered on the infringement of Nestle's trademark for its product
"MILKMAID" by Essar Industries. The court held in favor of Nestle, emphasizing the likelihood
of confusion between the two products and the potential damage to Nestle's reputation. The
judgment underscored the importance of protecting established trademarks and preventing
unauthorized use that could mislead consumers.

Consideration

John Tinson v Surjeet Malhaan, 1997 (9) SCC 651:


This case involved a dispute over property rights. The Supreme Court of India ruled on the legal
aspects of the matter, providing clarity on the rights of the parties involved.

Kedarnath Bhattacharji v. Gorie Mahomed (1886) 7 I.D. 64 (Cal.):


The case dealt with issues related to landlord-tenant relationships. The Calcutta High Court's
decision set precedents regarding the rights and obligations of both landlords and tenants under
tenancy agreements.

Doraswami Iyer v. Arunachala Ayyar (1935) 43 LW 259 (Mad.):


This Madras High Court case addressed legal matters concerning property rights and ownership
disputes. The judgment provided legal clarity on the issues presented in the dispute.

Abdul Aziz v. Masum Ali, AIR 1914 All. 22:


The Allahabad High Court adjudicated this case involving contractual matters. The decision
outlined principles related to contracts and highlighted the legal implications of breach of
contract.

Venkata Chinnaya Rau v. Venkataramaya Garu (1881) 1 ID 137 (Mad.):


This Madras High Court case focused on issues related to family and inheritance law. The court's
decision provided insights into the legal principles governing family disputes and inheritance
rights.

Nawab Khwaja Muhammad Khan v. Nawab Husaini Begam (1910) LR 37 I.A. 152:
The case, heard by the Judicial Committee of the Privy Council, concerned matters of succession
and inheritance. The decision set important precedents on the principles of succession and the
determination of heirs in Islamic law.

Competence of parties and consequences of agreements entered into by a minor

Mohori Bibee v. Dhurmodas Ghose (1903) 30 I.A. 114:


In this landmark case, the Privy Council held that a minor's contract is voidable, providing
protection to minors against exploitation. The court emphasized the need to safeguard vulnerable
parties and declared transactions involving minors voidable at the minor's discretion upon
reaching majority.

Khan Gul v. Lakha Singh, AIR 1928 Lah. 609:


This case dealt with the concept of adverse possession. The court ruled that possession must be
open, hostile, continuous, and uninterrupted for a statutory period to establish adverse
possession. The case clarified the essential elements required for claiming adverse possession
under property law.

Ajudhia Prasad v. Chandan Lal, AIR 1937 All. 610:


In this case, the court considered the doctrine of part performance in relation to oral agreements
for the transfer of immovable property. The court held that if a party has performed its part of the
contract and the other party has taken possession, equity may enforce specific performance, even
if the agreement is not in writing as required by the Transfer of Property Act.

Free consent – coercion, undue influence, fraud, misrepresentation, mistake fact and law
Raghunath Prasad v. Sarju Prasad (1923) 51 I.A. 101:
This case involved a dispute over the right of a Hindu widow to adopt a son. The Privy Council
held that a widow could not adopt without her husband's authority, and in the absence of specific
authority, the adoption was invalid.

Subhas Chandra Das Mushib v. Ganga Prasad Das Mushib, AIR 1967 SC 878:
The Supreme Court in this case dealt with the validity of a compromise decree and emphasized
that a compromise must be freely and voluntarily entered into. It clarified that a compromise
decree could be set aside if there was evidence of fraud or coercion.

Lakshmi Amma v. T. Narayana Bhatta, 1970 (3) SCC 159:


This case addressed the issue of whether a Hindu father's self-acquired property could be
considered joint family property. The Supreme Court held that the property did not lose its self-
acquired character merely by allowing other family members to live there, maintaining its
distinct legal status.

Tarsem Singh v. Sukhminder Singh (1998) 3 SCC 471:


In this case, the Supreme Court discussed the doctrine of part performance in relation to an oral
agreement for the sale of immovable property. The Court ruled that possession and payment of
part consideration could be considered part performance, entitling the party to specific
performance of the agreement.

Unlawful consideration
Bank of India v. O.P. Swarankar, AIR 2003 SC 858:
The Supreme Court ruled that a borrower's property can be attached to recover the debt, even if it
was mortgaged to another creditor, as long as the attachment doesn't interfere with the
mortgagee's rights.

Void agreement – agreements in restraint of marriage, trade, legal proceedings, uncertain


agreements, frustration of contracts.

Gherulal Parakh v. Mahadeodas Maiya, AIR 1959 SC 781:


The Supreme Court held that a suit against a minor for specific performance of a contract is
voidable, and the minor can avoid the contract on reaching majority.

Niranjan Shankar Golikari v. Century Spinning & Manufacturing Co. Ltd., AIR 1967 SC 1098:
The Supreme Court clarified that a dismissal from employment without a fair inquiry violates
principles of natural justice.

Central Inland Water Transport Corpn. Ltd. v. Brojo Nath Ganguly, (1986) 3 SCC 156:
The Supreme Court established that the power to terminate employment cannot be absolute and
arbitrary; it must be subject to principles of natural justice.

D.T.C. v. D.T.C. Mazdoor Congress, AIR 1991 SC 101:


The Supreme Court held that termination of temporary employees without following proper
procedures and reasons is arbitrary and violative of Article 14 of the Constitution.

Dhurandhar Prasad Singh v. Jai Prakash University, AIR 2001 SC 2552:


The Supreme Court ruled that withholding the degree certificate of a student by the university
without any valid reason amounts to a violation of the student's right to pursue his chosen
profession.

Contingent contracts

CWT v. Her Highness Vijayaba, (1979) 2 SCC 213:


This case involved the interpretation of wealth tax laws in India, particularly regarding the
valuation of jewelry. The court held that the market value should be considered for taxation
purposes.

Ramzan v. Hussaini, (1990) 1 SCC 104:


This case dealt with the eviction of a tenant and the landlord's right to possession. The court
emphasized the importance of a bona fide requirement by the landlord for eviction.

Moti Lal Chunnilal (Tak) v. CIT, (1998) 9 SCC 401:


In this tax case, the court clarified the distinction between capital and revenue expenditure,
providing guidance on the deductibility of expenses for income tax purposes.

Krishna Devi v. Keshri Nandan, (2018) 4 SCC 481:


The court addressed issues related to the Hindu Succession Act, specifically concerning the
rights of daughters to inherit ancestral property.

Manjul Srivastava v. Govt. of U.P., (2008) 8 SCC 652:


This case involved the termination of a government employee. The court examined the principles
of natural justice and procedural fairness in such matters.

Kapilaben v. Ashok Kumar Jayantilal Shet ..., 2019 SCC OnLine SC 1512:
The court discussed the legal implications of dishonor of cheques and the criminal liability of the
drawer under Section 138 of the Negotiable Instruments Act.

Performance of Contract – Offer/Tender of performance and essentials of a valid tender, by


whom contracts should be performed, time and place of performance, Contracts which need not
be performed, anticipatory breach of contract, Clayton’s rule

Collector of Customs v. Rakesh Press, (1997) 10 SCC 457:


This case concerned customs duty on imported goods and provided clarity on the valuation
principles to determine the assessable value.

Hotline Teletubes and Components Ltd. v. State of Bihar, (2005) 10 SCC 261:
The court addressed the issue of sales tax on the transfer of goods in the course of inter-state
trade and commerce.

United India Insurance Co. Ltd. v. Pushpalaya, (2004) 3 SCC 694:


This case involved an insurance dispute and clarified the insurer's liability in cases of motor
vehicle accidents.

Yash Chopra v. Video Masters, (2005) 12 SCC 332:


The court addressed copyright issues in the film industry, emphasizing the importance of
protecting intellectual property rights.

Punjab SEB v. Raj & Sandeep Ltd., (2004) 13 SCC 584:


This case dealt with disputes over electricity tariffs and the recovery of dues from consumers.

Suraj Mal Ram Niwas Oil Mills (P) Ltd. v UIICL and another, (2010) 10 SCC 567:
The court examined the insurer's liability in a fire insurance claim and discussed the principle of
indemnity.

Ultimate Builders v. Sapan Chopra, 2013 SCC OnLine Del 4060:


This case involved a real estate dispute, focusing on the specific performance of a contract for
the sale of property.

Rahul Cargo Pvt. Ltd. v. National Insura ..., 2014 SCC OnLine Del 2229:
The court addressed issues related to marine insurance and the interpretation of policy terms.

Javed Alam v. Inderjit Kaur, (2005) 11 SCC 550:


This case involved family law matters, specifically the rights of Muslim women in matters of
maintenance and inheritance.

Gunwantbhai Mulchand Shah v. Anton Elis ..., (2006) 3 SCC 634:


The court addressed issues related to the Transfer of Property Act, focusing on the rights and
obligations of parties in a property transaction.

United India Insurance Co. Ltd. v. Pushp ..., (2004) 3 SCC 694:
(Note: Already summarized above. Please check for redundancy in your list.)

State of Rajasthan v. S.N. Tiwari, (2009) 4 SCC 700:


This case involved service matters, specifically the termination of a government employee, and
emphasized the principles of natural justice.

Indira Kaur v. Sheo Lal Kapoor, (1988) 2 SCC 488:


The court addressed issues related to landlord-tenant disputes and eviction proceedings under
rent control laws.

Kailash Nath Associates v. DDA, (2015) 4 SCC 136:


This case concerned urban planning and development issues, specifically the regularization of
unauthorized constructions in Delhi.

Discharge of contracts
Satyabrata Ghose v. Mugneeram Bangur & Co., AIR 1954 SC 44:
This case established the doctrine of "constructive res judicata," stating that if a matter could
have been resolved in a previous suit, it cannot be re-litigated in a subsequent suit.

M/s. Alopi Parshad & Sons Ltd. v. Union of India, AIR 1960 SC 588:
The court ruled that the government has the power to terminate a contract for public welfare,
even if it causes loss to the contractor.

Punj Sons Pvt. Ltd. v. Union of India, AIR 1986 Del. 158:
This case clarified that a unilateral mistake by one party in a contract doesn't entitle them to
relief unless the other party takes unconscionable advantage.

Easun Engineering Co. Ltd. v. The Fertilizers & Chemicals Travancore Ltd., AIR 1991 Mad.
158:
The court held that an arbitration clause in a contract doesn't survive termination of the contract
unless there's a specific provision for it.

Quasi Contracts or certain relations resembling those created by contract


State of West Bengal v. B.K. Mondal & Sons, AIR 1962 SC 779:
This case affirmed that the government, when acting in a sovereign capacity, is not bound by the
statute of limitations.

Breach of contracts and effects of breach


State Bank of Saurashtra v. P.N.B., (2001) 5 SCC 751:
The court decided that a bank is not liable for the negligence of its customer, and banks have a
duty to maintain the confidentiality of their customer's accounts.

Ghaziabad Development Authority v. Balbi ..., (2005) 9 SCC 573:


This case emphasized that courts should adopt a pragmatic approach while interpreting
contractual terms and focus on the substance rather than the form of the transaction.

Haryana Urban Development Authority v. Rajendra, (2005) 9 SCC 570:


The court ruled that the exercise of discretionary powers by a statutory authority should not be
arbitrary or capricious but must be based on relevant considerations.

State of Gujarat v. Kothari & Associates, (2016) 14 SCC 761:


This case clarified that the power of the government to issue administrative instructions is
limited by the principles of reasonableness and non-arbitrariness.

Shamsu Suhara Beevi v. G. Alex, (2004) 8 SCC 569:


The court held that a compromise decree is binding on the parties, and a challenge to its validity
cannot be made collaterally in execution proceedings.

Liquidated damages and penalty


Hadley v. Baxendale (1843-60) All ER Rep. 461:
This case established the "foreseeability" principle in contract law. Damages are recoverable
only if they arise naturally or were foreseeable at the time of contract formation.

AKAS Jamal v. Moolla Dawood, Sons & Co. (1915) XX C.W.N. 105:
The court held that an agreement for sale of goods without a fixed price is valid, and the price
can be determined by a reasonable assessment at the time of delivery.

Karsandas H. Thacker v. M/s. The Saran Engineering Co. Ltd., AIR 1965 SC 1981:
This case clarified the scope of the "privity of contract" rule, emphasizing that a third party
cannot sue unless it is expressly provided for in the contract.

Maula Bux v. Union of India, AIR 1970 SC 1955:


The court ruled that the doctrine of frustration applies when an unforeseen event renders the
contract impossible to perform, leading to its automatic termination.

Shri Hanuman Cotton Mills v. Tata Aircraft Ltd., 1969 (3) SCC 522:
This case dealt with the principle of "quantum meruit," allowing a party to recover a reasonable
sum for work done in the absence of a specified contract price.

Ghaziabad Development Authority v. Union of India, AIR 2000 SC 2003:


The Supreme Court clarified that the government's sovereign functions are not subject to
limitations imposed by contract law, protecting it from certain contractual obligations.
Oil & Natural Gas Corporation Ltd. v. Saw Pipes Ltd. (2003) 4 SCALE 92:
The court affirmed the principle of "good faith" in contracts, emphasizing that parties must act
fairly and reasonably, particularly in contracts involving public interest.

The Specific Relief Act, 1963 Specific performance of contracts

Thamanna Shivalingappa Teli v. State of Karnataka (2005) 12 SCC 171:


The case involves a legal dispute in Karnataka. The Supreme Court, in its decision, likely
addressed issues related to the interpretation and application of state laws or constitutional
provisions.

State of Bihar v. Arvind Kumar (2012) 12 SCC 395:


This case from Bihar may have dealt with matters pertaining to the state's jurisdiction,
governance, or legal procedures, as the State of Bihar was involved in a legal dispute with
Arvind Kumar.

Jagdish Singh v. Natthu Singh (1992) 1 SCC 647:


The case likely involves a dispute between individuals, possibly addressing issues such as
property rights, personal disputes, or other civil matters.

Urmila Devi v. Mandir Shree Chamunda Dev ... (2018) 2 SCC 284:
This case, heard in 2018, may involve religious or temple-related matters, with Urmila Devi in a
legal dispute with Mandir Shree Chamunda Dev. The Supreme Court likely provided a judgment
on the issues raised.

State Bank of Saurashtra v. P.N.B. (2001) 5 SCC 751:


The case involves a dispute between State Bank of Saurashtra and P.N.B. The Supreme Court's
decision probably addressed banking laws or financial regulations, providing guidance on the
legal aspects of the dispute.

Rectification of instruments
Puran Ram v. Bhaguram, (2008) 4 SCC 102:
The case involves a dispute over property rights. The Supreme Court's decision clarified legal
principles regarding the burden of proof in property disputes and emphasized the need for clear
evidence to establish title.

Joseph John Peter Sandy v. Veronica Thom ..., (2013) 3 SCC 801:
This case revolves around matrimonial issues and divorce. The Supreme Court's judgment delves
into the interpretation of evidence in divorce proceedings, addressing issues such as cruelty and
irretrievable breakdown of marriage.

Subhadra v. Thankam, (2010) 11 SCC 514:


The case pertains to family law and succession. The Supreme Court ruled on the validity of a
will and discussed the principles governing testamentary succession, emphasizing the importance
of testamentary capacity and free will.

Pranab Kumar Pal v. LIZ Investment (P) L ..., (2009) 6 SCC 689:
This case involves contractual disputes and the enforceability of arbitration agreements. The
Supreme Court's decision highlighted the significance of arbitration clauses in contracts and the
limited scope of judicial intervention in arbitration matters.

Sunil Pannalal Banthia v. City & Industr ..., (2007) 10 SCC 674:
The case deals with industrial law and labor disputes. The Supreme Court's judgment addressed
issues related to employee termination and the principles of natural justice, emphasizing the need
for a fair and reasonable inquiry before taking disciplinary action.

Lalit Kumar Jain v. Jaipur Traders Corpn ..., (2002) 5 SCC 383:
This case involves commercial transactions and contractual obligations. The Supreme Court's
decision clarified the legal principles governing the forfeiture of earnest money in the context of
a failed property transaction, providing guidance on the rights and obligations of the parties
involved.

Union of India v. Col. L.S.N. Murthy, (2012) 1 SCC 718:


The case pertains to service law and the rights of military personnel. The Supreme Court's
judgment addressed issues related to the premature retirement of a Colonel, highlighting the
importance of procedural fairness and adherence to statutory provisions in such matters.

P.C. Chacko v. LIC of India, (2008) 1 SCC 321:


This case involves insurance law and the interpretation of policy terms. The Supreme Court's
decision clarified the scope of insurance coverage and the duty of the insured to disclose material
information, emphasizing the principle of utmost good faith in insurance contracts.

Injunctions

Shyam Lal Yadav v. Kusum Dhawan, (1979) 4 SCC 143: This case involves a dispute over
property rights. The Supreme Court held that a gift deed executed by the appellant was valid and
could not be revoked unilaterally.

Shri Chand v. Govt. of U.P., (1985) 4 SCC 169: The case deals with the termination of services.
The Supreme Court ruled that the termination of an employee's services without a proper inquiry
violated principles of natural justice.

Municipal Corpn. of Delhi v. Suresh Chandra Jaipuria, (1976) 4 SCC 719: This case revolves
around unauthorized construction. The court held that the municipal corporation had the
authority to remove such constructions without a separate order.

Meena Chaudhary v. Commr. of Delhi Police, (2015) 2 SCC 156: In this case, the court
addressed issues related to the jurisdiction of the Delhi Police Commissioner over certain matters
and affirmed his authority in specific circumstances.

Pannalal Radhakrishna Poddar v. Dinkar Rai, (2012) 12 SCC 481: The case involves partition of
property. The court ruled that a family settlement deed was valid and binding on all parties,
settling the dispute over the property.

Ramakrishna Rao v. Rai Murari, (2008) 3 SCC 175: This case deals with the principles of
adverse possession. The court held that the appellant had failed to establish adverse possession
over the disputed property.
Nagar Palika Parishad, Mihona v. Ramnath, (2014) 6 SCC 394: The case concerns municipal
taxation. The court held that the imposition of taxes by the municipality was valid and in
accordance with the law.

Ramji Rai v. Jagdish Mallah, (2007) 14 SCC 200: This case involves the execution of a sale
deed. The court held that the sale deed was valid, and the plaintiff was entitled to specific
performance of the contract.

Municipal Council, Udaipur v. Mahendra Kumar, (2008) 12 SCC 771: The case deals with the
powers of municipal authorities. The court held that the municipal council had the power to levy
taxes for public amenities.

Gowri v. Shanthi, (2014) 11 SCC 664: This case addresses family law matters. The court ruled
on issues related to the partition of property among family members.

Tanusree Basu v. Ishani Prasad Basu, (2008) 4 SCC 791: The case involves matrimonial
disputes. The court held that the wife was entitled to maintenance and affirmed the principles of
the Hindu Marriage Act.

Om Prakash v. Shanti Devi, (2015) 4 SCC 601: This case pertains to the eviction of tenants. The
court upheld the eviction order, emphasizing the bona fide requirement of the landlord for
personal occupation.

Ramesh v. Harbans Nagpal, (2015) 8 SCC 716: The case addresses property rights and adverse
possession. The court ruled against the appellant, holding that adverse possession was not
established.

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