10 Famous cases of indian contract act –
Definition of Contract – Contract is defined in Indian Contract Act, 1872 as
“An agreement enforceable by law”.
According to this definition, two elements are required for formation of a contract.
The first is „agreement‟. Agreement is defined as “every promise and every set of promises forming consideration for each other”.
Promise is defined as “an accepted proposal”.
Thus, either employer or employee makes a proposal which may be accepted by the employee or the employer as the case may be, resulting in a promise and an agreement between both of them.
Such agreement, if enforceable by law according to the Indian Contract Act, 1872 becomes a contract and is binding on the employer as well as the employee or the workman as the case may be.
The Indian Contract Act, 1872 is a landmark legislation in India that codifies the law of contracts in the country. Some famous cases that have been decided under this Act are:
1. Mohori Bibee vs. Dharmodas Ghose:
This case dealt with the issue of undue influence in contracts. The court held that if a person enters into a contract under the influence of another person, the contract can be set aside on the ground of undue influence.
2. Balfour vs. Balfour:
This case dealt with the issue of whether a promise made between spouses during their separation can be enforced as a contract. The court held that such promises are not enforceable as they do not involve any consideration.
3. Chinnaya vs. Ramayya:
This case dealt with the issue of breach of contract. The court held that if a party fails to perform its obligations under a contract, the other party can seek damages for the loss suffered as a result of the breach.
4. R.S. Dhankar vs. State of Haryana:
This case dealt with the issue of whether a contract entered into with the government can be terminated at the discretion of the government. The court held that such contracts can be terminated, but only if there are sufficient grounds for doing so and if the government follows the due process of law.
5. Satyabrata Ghose vs. Mugneeram Bangur:
This case dealt with the issue of voidable contracts. The court held that a contract can be voidable if it is entered into by a person who is not competent to contract, such as a minor.
6. Kedar Nath Bajoria vs. The Chairman, B. & C.I. Ry. Co.:
This case dealt with the issue of frustration of contract. The court held that if an unforeseen event makes the performance of a contract impossible, the contract is discharged and the parties are relieved of their obligations.
7. The Municipal Corporation of Delhi vs. Gurnam Singh:
This case dealt with the issue of impossibility of performance. The court held that if the performance of a contract becomes impossible due to the fault of one of the parties, the other party can claim damages for the loss suffered as a result.
8. Mohd. Hanif Quareshi vs. State of Bihar:
This case dealt with the issue of breach of contract. The court held that if a party fails to perform its obligations under a contract, the other party can seek damages for the loss suffered as a result of the breach.
9. Dharangadhra Chemical Works Ltd. vs. State of Saurashtra:
This case dealt with the issue of frustration of contract. The court held that if an unforeseen event makes the performance of a contract impossible, the contract is discharged and the parties are relieved of their obligations.
10. Ram Krishna Dalmia vs. Justice S.R. Tendolkar:
This case dealt with the issue of misrepresentation in contracts. The court held that if a party to a contract makes a false statement that influences the other party’s decision to enter into the contract, the contract can be set aside on the ground of misrepresentation.