Actio Personalis Moritur Cum Persona

The legal maxim "actio personalis moritur cum persona" means A personal right to action dies with person.

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This maxim was very first time used in a case in 1496 where an old woman died before paying damages. The old woman was liable for a case of defamation. It was the principal of early law that the death of either party to a personal duty takes away or remedy and destroys the duty. 

In England under the common law there was a general rule that on the death of any party in matter of tort it stands disposed off automatically. However in due course of time the rule was reversed by the Law Reform (Miscellaneous Provisions) Act, 1934 on the death of any person all causes of action vested in him shall survive for the benefit of his estate. Thus all causes of action in tort suit for defamation and the claim for damages for bereavement survive the deceased. 

Exceptions to the legal maxim Actio personalis moritur cum persona: 

• Defamation 
• Attack or assault
• Personal damages 

Thus right of action arising tinder the court the contract act cannot be quashed on the death of any party. Wherein the person had illegally acquired the property belonging to the other person, even on death of that person who possessed property unlawfully, right of action can be initiated against such person through his legal representatives. 

It has been described by Viscount Simon as “not in fact the source from which a body of law has been deduced, but a confusing expression, framed in the solemnity of the Latin tongue, in which the effect of death upon certain personal torts was inaccurately generalised”  

The doctrine is embodied and not peculiar to common law system. The idea belongs to primary strata in universal law. In modern times it has been gradually limited by judicial decisions and is now being still further restricted by legislation. 

A maxim stating that actions of tort or contract are destroyed by the death of either the injured or the injuring party. Modern statutes mean that this is rarely the case. However, before the passing of the Fatal Accidents Act 1846 acceptance of this notion meant that in actions in negligence it was better for a doctor to kill his patient outright than to injure him. This situation arose because it was originally believed that the primary function of tort was to punish and not to compensate for damage caused. The maxim still survives in the law of defamation (“you cannot defame the dead”).

In India under the Fatal Accident Act 1855 death caused on account of negligence, rashness and due to wrongful act the legal representatives of the deceased can sue. 

Even cases involving determination of liabilities of the parties arising as a result of breach of contractual duties, a personal right to action does not die with person. Their legal representatives or authorised attorney can file a suit for specific performance and claim damages. 

e.g. 1) If P commits battery on Q and either party dies the right of action which accrued to Q by the reason of the battery is taken away. 

e.g. 2) If P commits battery on Q or do other injury to him, any right of action which accrues to third person say wife a legal heir of Q, will not be affected by the death of Q so far as the application of the maxim is concerned. 

Case Laws:

1) In Gujarat State Road Transport Corporation Ahmedabad versus Ramanbhai Prabhatbhai, wherein due to negligence on the part of the petitioner's driver, a boy aged 14 years was crushed to death. Brothers of the deceased boy file suit claiming compensation. The motor accident claim tribunal passed award of compensation which was affirmed by the High Court and by the Apex Court. The Court held that contention of the compensation that right of personal action dies with the person is no more recognised rule of law. Hence, corporation is liable to pay compensation to the deceased brother. 

2) In Nurani Jamal And Others vs Naram Srinivasa Rao And Others [AIR 1996 AP 6] the maxim actio personalis moritur cum persona has applicable in respect of all personal wrongs but there is an exception where a tortfeasor is benefited by the wrong done and action would lie against the representatives of a wrongdoer. 

3) Baker vs. Bolton [KBD 8 Dec 1808] case arose : The defendants were the proprietors of a stage coach , on the top of which the plaintiff and his wife were travelling from Portsmouth to London. The coach was overturned and the plaintiff’s wife was so badly hurt that she died a month later. The plaintiff brought an action for negligence and sought to recover for the loss of service and consortium. It will be noted that the maxim actio personalis did not apply and there was nothing to show that the defendant’s conduct was felonious. Hence, the doctrine of merger was not applicable.

4) M. Veerappa vs Evelyn Sequeira & Ors: During the pendency of the suit the plaintiff died and his legal representatives, who are the respondents herein, filed a petition under order XXII Rule 3(1) of the Code of Civil Procedure seeking their substitution in the suit for prosecuting the suit further. The appellant opposed the application and contended that as the suit was one for damages for personal injuries alleged to have been sustained by the plaintiff, the suit abated on his death as per the maxim Actio Personalis cum moritur persona. The District Munsif upheld the objection and dismissed the suit as having abated but the High Court held otherwise and declared the legal representatives to be entitled to get impleaded and continue the suit.

5) In Girja Nandini Devi v. Bijendra Narain Choudhury observed as under: "The maxim 'actio personalis moritur cum persona' a personal action dies with the person has a limited application. It operates in a limited class of actions ex delicto such as actions for damages for defamation, assault or other personal injuries not causing the death of the party, and in other actions where after the death of the party the relief granted could not be enjoyed or granting it would be nugatory. An action for account is not an action for damages ex delicto, and does not fall within the enumerated classes. Nor is it such that the relief claimed being personal could not be enjoyed after death, or granting it would be nugatory."

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Contract Law: Short Question and Answers: Part 3

Hello friends. In this blog I am sharing some short question and answers regarding Indian Contract Law.


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Q. 1. Define "ab initio"
A. Ab initio is a Latin term meaning "from the beginning" and is derived from the Latin ab ("from") + initio, ("beginning").

Q 2. What is "void ab initio".
A. The term "void ab initio" means "to be treated as invalid from the outset." E.g., in many jurisdictions, if a person signs a contract under duress, that contract is treated as being "void ab initio".

Q 3. For which type of contracts a minor is bound?
A. A minor is bound for the beneficial contract. 

Q 4 What is a beneficial contract?
A. The beneficial contracts are those contracts which are for the benefit of minor.
Q 5 Which was first case of beneficial contract?
A. S. Subramanyam v/s Subha Roy-1948

Q 6 Enlist the various beneficial contracts?
A. Following are the beneficial contracts for a minor:

• Contract of Insurance
• Contract to purchase of the immoveable property 
• Contract of service
• Contract of apprentice ship
• Contract of Marriage
• Contract of Necessities 

Q 7 Which section describes the contract of necessities?
A. Section 68 of ICA, 1872 describes the contract of necessities.

Q 8 Is minor liable to compensate for the contract of necessities? When?
A. The minor is liable to compensate for the contract of necessities when he attains majority.

Q 9. Define the majority.
A. In India a person attains his or her majority at the age of 18 years.

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Majority Act, 1875 alongwith Guardians & Wards Act, 1890

Indian BareActs(Indian Law)

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Indian Contract Act: Short Q and A: Part 2

Hello friends. This is one more article on short question and answer on contract law in India. Please read this blog for study purpose only.


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Q 1. How it can be proved that the agent is having apparent authority or not?
A. If the agent is acting outside the course of authority given to him in front of third party in presence of his principal and for such acts of the agent the principal remains silent then it is deemed that the agent is having apparent authority.

Q 2. How actual authority and apparent authority of an agent can be distinguished?
A. If there is some act or some knowing omission on the part of the principal then acts of agent can be deemed as outside the course of actual authorities delegated to agent by his principal. If agent acts outside his actual authority in presence of his principal and principal do not dissuade such acts by saying nothing or by remaining silent then the third party will understand that the agent is having apparent authority on behalf of his principal.

Q 3. What is lingering apparent authority?
A. Apparent authority can also occur where a principal terminates the authority of an agent, but does not inform third parties of this termination. This is called lingering apparent authority.

Q 4. How liability can be avoided in case of lingering apparent authority ?
A. Business owners can avoid being liable by giving public notice of the termination of authority, and by contacting any individual third parties who would have had reason to know of such authority.

Q 5. Which sections of Indian Contract Act, 1872 describe about contracts of indemnity and contracts of guarantee?
A. Section 124 to 147 of Indian Contract Act, 1872.

Q 6 Define the contract of indemnity as per Section 124 of ICA, 1872.
A. A contract of indemnity is a contract by which one party promises to save other party from loss caused to him by the conduct of the promisor himself or by conduct of any other person.

Q. 7 Who is indemnifier?
A. The person who promises to make good the loss or to indemnify is called indemnifier.

Q 8 Who is indemnified or indemnity holder?
A. The person whose loss is made good is called indemnified or indemnity holder.

Q 9 A mistake of law always leads to a valid contract. True or False?

Ans: The statement is False. A mistake of India law if is regarded as a valid contract since ignorance of the law is not a good enough excuse. But a mistake of foreign law is considered as a mistake of fact, and if such a mistake is bilateral it will lead to a void contract.

Q 10. Define Expressly void agreements.

A. There are certain agreements which are declared void by law, such agreements are called expressly void agreements.

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INDIAN CONTRACT ACT

ICA - Indian Contract Act 1872

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Short questions on Indian Contract Law 1

Hello my reader friends. In this blog I am sharing short answer questions on Indian Contract Act, 1872.


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Q 1. Which Section of the Indian Contract Act describes about the persons competent to make contract?
A. Section 11.

Q 2 Define Indemnity.
A. The term indemnity means to make good the loss or to compensate the party who had suffered the loss.

Q 3 State any two specific contracts.
A. Contract of guarantee and contract of indemnity.

Q 4 Who can ratify an unathorised agreement entered into by an agent?
A. Principal.

Q 5 What is ratification?
A. Ratification is the explicit or implicit action of the principal in agreeing to the act of the agent after the unauthorised act.

Q 6 When third party will be bound to the unathorised agreement created by an agent?
A. The unathorised agreement created by an agent will be binding to third party if it is ratified by the principal.

Q 7 Which section describes about the principle of ostensible authority or apparent authority?
A. Section 237

Q 8 On what basis a person becomes liable as principal?
A. A person may be liable as a principal because of his conduct, on the basis of the law of estoppel.

Q 9 Explain the rule of ostensible authority.
A. When principal by his words or conduct makes an impression on third party that the agent is having an authority to enter into a contract on his behalf, and evidences show the same facts about the authority of an agent, then in such case agent is having ostensible or apparent authority for his principal.

Q 10 Define ostensible authority or apparent authority.
A. Ostensible authority (or apparent authority or agency) can be defined as “A relationship between two parties that reasonably leads a third party to believe that one is the agent of the other”

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Pollock & Mulla -The Indian Contract Act, 1872

Indian Contract Act,1872

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Proposal in a Contract & its essential features

The whole process of entering into a contract starts with a proposal or an offer made by one party to another. To enter into an agreement such a proposal must be accepted. Let us take a look at the definition and classification of an offer and the essentials of a valid offer.

In Indian Contract Act, 1972 it is described as: -

Section 2(a) When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

This definition reveals the following three essentials of a ‘proposal’.

• One person signifies to another; it must be an expression of the willingness to do or to abstain from doing something. According to section 3 to signify means that the proposal must be communicated to the other party. While making a contract, it is essential that the offer should be communicated to the other party. A proposal is complete when it is communicated. (Section 3)
• The expression of willingness to do or to abstain from doing something must be to another person. There can be no ‘proposal’ by a person to himself.
• The expression of willingness to do or to abstain from doing some-thing must be made with a view to obtaining the assent of the other person to such act or abstinence.

o   Thus a casual enquiry is not a ‘proposal’. e.g. “do you intend to sell your motorcycle?” is not a valid proposal.

o   Similarly, a mere statement of intention is not a ‘proposal’. e.g. “I may sell my motorcycle if I can get Rs. 14,000 for it” is not a valid proposal.

o   But if M says to N, “will you buy my motorcycle from Rs. 14, 000,” or “I am willing to sell my motorcycle to you for Rs. 14,000”, we have a ‘proposal’ as it has been made with the object of obtaining the assent of N.

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Let us discuss about an offer in case of contract law.

Legal Rules Regarding a Valid Offer

A valid offer must be in conformity with the following rules:

1. Express and Implied Offers

An offer may be’ express’ or ‘implied’ i.e. An offer may be made either by words or by conduct.

An offer which is expressed by words, spoken or written is called an ‘express offer’ and the one which is inferred form the conduct of a person or the circumstances of the case is called an ‘implied offer.’

According to Section 9 in so far as the proposal or acceptance of any promise is made words, the promise is said to be express.According to Section 9 in so far as such proposed or acceptance is made otherwise than in words, the promises are said to be implied.

e.g. Thus stepping into a taxi and consuming eatables at a restaurant both create implied promise to pay for benefits employed.

Case Law : In Upton Rural District Council v Powell, a fire broke out in the defendant’s farm, believing that he was entitled to the free service of Upton Fire Brigade (which he was not) he summoned it. Upton claimed compensation for its services. Held services were rendered on an implied promise to pay for them.

Illustrations: -

1) M says to N that he is willing to sell his motorcycle to him for Rs. 20,000. This is an express offer.

2) X writes to Y he offers to sell his house to him for Rs. 80,000. There is an express offer.

3) The Delhi Transport Corporation runs omnibuses on different routes to carry passengers at the scheduled fare. This is an implied offer by the D.T.C.

4) A shoe shiner starts shining some one’s shoes, without being asked to do so, in such circumstances that any reasonable man could guess that he expects to be paid for this, he makes an implied offer.

2. Legal consequences and legal relations: -

An offer must contemplate to give rise to legal consequences and be capable of creating legal relations. If the offer does not intend to give rise to legal consequences, it is not a valid offer in the eyes of law.

Even though it is accepted and there is consideration, because in social agreements or domestic arrangements the presumption is that the parties do not intend legal consequences to follow the breach of agreement.

e.g. An offer to a friend to dine at the offeror’s place, or an offer to one’s wife to show her a movie is not a valid offer and as such cannot give rise to a binding agreement.

In the case of agreements regulating business agreements it is taken for granted that parties intend legal consequences to follow.

Case Law: -

1) Even in the case of a business agreement if the parties agree that the breach of the agreement would not confer on either of the parties a right to enforce the agreement in a court of law, there is no contract (Rose & Frank Co. vs. Crompton & Brothers Ltd.)

2) Under English law, the position was well settled in the case of Balfour v Balfour[(1919) 2 KB 571 (CA)], where it was held that “to create a contract there must be a common intention of the parties to enter into legal obligations”.

3. Certain terms of an offer: -

The terms of the offer must be certain and not loose or vague. The terms of the offer must be certain and not vague (Sec. 29).

Mangham L.J. has rightly observed: “unless all the material terms of the contract are agreed, there is no binding obligation.”

Thus an agreement to agree in future is not a contract, because the terms of agreement are uncertain as they are yet to be settled.

4. An invitation to offer is not an offer: -

In the case of an ‘invitation to offer’ the person sending out the invitation does not make an offer but only invites the other party to make an offer. His object is merely to circulate information that he is willing to deal with anybody who, on such information, is willing to open negotiations with him. Such invitations for offers are therefore not offers.

An offer must be distinguished from an ‘invitation to receive offer’ or as it is sometimes expressed in judicial language an ‘invitation to treat.’

Invitation to an offer is to negotiate or may be considered an offer to receive offers. Whereas an offer is the final expression of willingness by the offeror to be bound by his offer. If a party, without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he is only making an invitation to the other party to make an offer on those terms.

e.g. Thus an advertisement on a television is not an offer but a mere invitation to everyone who is watching it to form an offer.

Case Law: - The distinction was clearly laid down in the infamous case, Harvey v Facey. [1893 AC 552]

5. Specific and General offer: -

An offer may be a ‘specific’ or ‘general’. There are two kinds of offers - general and specific.

Specific Offer: - The specific order is made to a specific person. Such an offer can be accepted only by the person or persons to whom it is made.

A specific offer, on the other hand, is only made to specific parties, and so only they can accept the said offer or proposal. They are also sometimes known as special offers. 

e.g. Thus, where M makes an offer to N to sell his bicycle for Rs. 200, there is a specific offer and N alone can accept it.

e.g. A offers to sell his horse to B for Rs 5000/-. Then only B can accept such an offer because it is specific to him.

General offer: - A general offer is made to the world or public at large. However, in case of general offers the contract is made only with that person who comes forward and performs the conditions of the proposal as such performance amounts to the acceptance of performance. A ‘general offer’ on the enter hand is one which is made to the world at large or public in general and may be accepted by any person who fulfils the requisite conditions.

Case Law: - The leading case on the subject of ‘general offer’ is that of Carlill vs Carbolic smoke Ball co,”

e.g. A newspaper put out a reward for solving a puzzle. So if any member of the public can accept the offer and be entitled to the reward if he finishes the act (solves the puzzle.)

In such cases, ‘performance of the act’ or acceptance of any consideration for a reciprocal promise which may be offered with the proposal raises an inference of acceptance which is clearly laid down in Section 8 of the Act.

If a general offer is of a continuing nature it shall be open for acceptance by any number of persons until it is retracted or till its closing date. But if the offer is about information for a missing thing, it is closed as soon as the first information comes in.

6. Offer must be communicated: -

An offer must be communicated to the offeree. Section 4 provides that the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. 

The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made (Section. 4). 

An offer is effective only when it is communicated to the offeree. 

Until the offer is made known to the offeree, there can be no acceptance and no contract. 

Doing anything in ignorance of the offer can never be treated as its acceptance, for there was never a consensus of wills. 

This applies to both ‘specific’ and ‘general’ offers. 

However, an act in ignorance of an offer does not amount to acceptance of that offer.

Case Law: - Williams v Carwardine, (1833) 2 LJKB 101: When such an offer is accepted with knowledge of the reward, the fact that an informer was influenced by some other motives other than the reward will be immaterial. 

The famous case study regarding this is Lalman Shukla v. Gauri Dutt. It makes clear that acceptance in ignorance of the proposal does not amount to acceptance.

7. Cross offers.

When two parties make identical offers to each other, in ignorance of each other’s offer, the offers are cross offers. Such offers do not constitute acceptance of one’s offer by the other and as such there is no completed agreement.

e.g. A wrote to B offering to sell him certain goods. On the same day, B wrote to A offering to buy the same goods. The letters crossed in the post. There is no concluded contract between A and B.

8. Non-compliance Terms do not lead to valid offer: -

An offer should not contain a term the non- compliance of which would amount to acceptance. If the offeree does not reply, there is no contract, because no obligation to reply can be imposed on him, on the grounds of justice.

e.g. Thus an offeror cannot say that if acceptance is not communicated up to a certain date, the offer would be presumed to have been accepted. 

Example: A offers to sell his cow to B for 5000/-. If the offer is not rejected by Monday it will be considered as accepted. This is not a valid offer.

9. Terms and Condition: -

An offer can be made subject to any terms and conditions. An offeror may attach any terms and conditions to the offer he makes. He may even prescribe the mode of acceptance. The offeree will have to accept all the terms of the offer. 

There is no contract, unless all the terms of the offer are complied with and accepted in the mode prescribed. 

As regards mode of acceptance, it must be noted that in case of deviated acceptance, for example, if the offeror asks for sending the acceptance ‘by telegram’ and the offeree sends the acceptance ‘by post’ the offer or may decline to treat that acceptance as valid acceptance provided the gives a notice to that effect to the offeree within a reasonable time after the acceptance is communicated to him. If he does not inform the offeree as to this effect, he is deemed to have accepted the deviated acceptance. (Section 7). 

The offeror can make the offer subject to any terms or conditions he deems necessary.

e.g. So A can offer to sell goods to B if he makes half the payment in advance. Now B can accept these conditions or make a counteroffer.

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This blog is intended for study only. If you are preparing for any exams using these notes then 1) part in red is as it is from the Indian Contract Act, 1872. 2) Underlined part is minimum required part to be learned. 3) Case laws will give you extra marks as well as examples and illustrations will help you to explain the provisions clearly.

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Index of Indian Contract Act, 1872.

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question bank - Law of Contract - LLB

1. What is contract of Indemnity? Explain the right of indemnity holder. Distinguish between contracts of Indemnity & Contract of Guarantee.

2. Discuss the nature, rights and liabilities of a Surety.

3. Explain the essential feature of Guarantee. What are the liabilities & rights of the Surety? Can the surety discharge from his liability? What is the difference between contract of Guarantee and Indemnity?

4. Liability of surety is co-extensive with that of Principal debtor.

                                     UNIT-II

1. Explain the standard of care required of a bailee in respect of goods bailed to him.

2. What can be pledged? Who can make the valid Pledge? Differentiate between Pledge & Lien.

3. What is bailment? What are the essentials of bailment? What are the duties & rights of Finder of lost goods as a bailee?

 4. What is Pledge? Distinguish between Pledge and Bailment.

                                    UNIT – III

1. What is Agency? What are the various modes of creating Agency relationship? Also describe the different kinds of Agent.

2. What are the circumstances in which agency is terminated?

3. Discuss fully the extent of Principals liabilities to third parties for the act of Agent.

4. Define the term sub-Agent. How for is principal bound by the acts of sub-agent? Distinguish between sub-agent and substituted Agent.

                                   UNIT- IV

1. Sharing of profits in business is not conclusive evidence of the existence of Partnership. Discuss with the help of relevant case law.

2. How the firm is registered? What is the effect of Registration & Non registration of firm?

3. Distinguish between partnership business and joint Hindu family business.

4. Discuss the essentials of Partnership firm.

5. Define the principal of Holding out.

6. What are the provisions of dissolution of partnership Firm?

                                  UNIT- V

Write short notes on the followings:-

i)               Continuing Guarantee.

ii)            Co-Sureties.

iii)         Feature of Bailment.

iv)          Rights of Pawnee to redeem.

v)             Kinds of Agent.

vi)          Agency by Ratification.

vii)       Nature of Partnership.

viii)     Registration of Firm.

ix)          Termination of Agency.

x)             Rights & duties of finder of lost goods.

xi)          Modes of discharge of surety.

xii)        Doctrine of Holding out.

xiii)     Minor admitted to benefit of partnership.

xiv)      Dissolution of firm.

xv)        General lien & Particular lien.

xvi)      Difference between Hypothecation & Pledge.

xvii)   Co-ownership & Partnership.

xviii)Partnership at will.

xix)      Dormant Partner.

xx)         Ostensible authority.

xxi)      Sub Agent & Substituted Agent.

xxii)   Pledge &Mortgage.

Right in personum

Hello my reader friends, in this blog I am sharing notes. These notes are related to law study only. Underlined group of words are minimum necessary things you must incorporate in your answers. There may be a question to write a short note on this subject. 

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Right in personum or jus in personum is opposite to right in rem. 
This is derived from the Roman term "action in personum"
Right in personum gives the person rights against one person or party to the contract. 
A right in personum corresponds to a duty imposed upon determinate persons. It generally will correspond with a duty imposed on the said person or party. The Indian Contract Act grands right in personum to the parties of a contract. So the parties of a contract have this contractual rights only against each other. 

Rights under a contract are rights in personum for only the parties thereto are bound.

Right in personam binds only a particular person or persons.

Rights in personum are usually positive. It is acquired because the subject stands in some special relationship towards another person as in the case of a contract.

Rights in personum may also be negative as in the case of sale of goodwill when the seller undertakes not to set up a rival business within the prescribed area and period of time.

Right in personum is spoken of as personal rights because persons bound being determinate, personal relation are stressed.

For example 1) Person P sold his car to Q. Thus P has the right to receive the sale proceeds. This right to receive the money only belongs to P, so it is a right in personum, no other party is involved. 
Example 2) B loan money to C. The right to recover money belongs to only B not the world in general.
Example 3) My right to receive rent from tenant is right in personum.
Example 4) my right to receive compensation for false imprisonment or defamation is right in personum.
Example 5) The right of A after signing the contract for the purchase of land is a right in personum against B that B shall execute a deed of sale in his favour and transfer the property. After the execution of the sale deed the right of A is a right in rem available against the whole world that nobody shall interfere with his ownership.

You can read the following judgment also for more understanding of this legal maxim.
Daljit Singh And Anr. vs Yogeshwar Prasad: Delhi High Court

Note: If you write atleast one example while writing your answer then it will be beneficial to you to get more marks. In every article I am trying to write relevant examples as well as judgments and case laws will also be shared if needed.
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Two parties

Hello my reader friends. This is one more blog in the series of Law of Contract. This blog is discussing about "Two parties". Please read this blog till the end and share it with all law students. These are the notes for preparing exams of Law degree. 

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As per Section 2(a) of Indian Contract Act, 1872 an offer or proposal is defined as, “When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal”. Thus for a valid offer there must be at least two persons involved.

Hence a Valid Contract must involve at least two parties identified by the contact. One of these parties will make the proposal and the other is the party that shall eventually accept it. Both the parties must have either what is known as a legal existence e.g. companies, schools, organizations, etc. or must be natural persons.

To constitute a contract there must be at least two parties, i.e. one party making an offer (offeror/proposer) and the other party accepting the offer (offeree/proposee). The terms of the offer must be definite. Offer means when a person reveals to another his willingness to do or to decline from doing something. Acceptance means when the person to whom the acceptance is made signifies his assent to it.

Section 2(c) of the Indian Contract Act, 1872 defines both the parties involved in the contract as, “The person making the proposal is called the “promisor” (offeror), and the person accepting the proposal is called the “promisee” (propose)”.

For Example: In the case State of Gujarat vs Ramanlal S & Co. – A business partnership was dissolved and assets were distributed among the partners as per the settlement. However, all transactions that fall under a contract are liable for taxation by the office of the State Sales Tax Officer. However, the court held that this transaction was not a sale because the parties involved were business partners and thus joint owners. For a contract of sale, we need a buyer (party one) and a seller (party two) which must be different people.


This blog is discussing about one of the essentials of a valid contract. All the essential features of a valid contract are:

1) Two parties

2) offer and acceptance.

3) Intention to create legal relations

4) Lawful consideration

5) Capacity of parties

6) Free & Genuine consent

7) Lawful objects

8) Writing & registration - legal formalities

9) Certainty

10) Possibility of performance

11) Not expressly declared void.

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Not expressly declared void

Hello my reader friends. This is one more blog in the series of Law of Contract. This blog is discussing about "Not expressly declared void". Please read this blog till the end and share it with all law students. These are the notes for preparing exams of Law degree. 


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Not Expressly Declared Void:

An agreement must not be one of those, which have been expressly declared to be void by the Act. An agreement to become a contract should not be an agreement which has been expressly declared void by any law in the country, as it would not be enforceable at law.

Under different sections of the Contract Act, 1872, the following agreements have been said to be expressly void, viz :-

(i) Agreements made with the parties having no contractual capacity, e.g. minor and person of unsound mind (Sec. 11).

(ii) Agreements made under a mutual mistake of fact (Sec. 20).

(iii) Agreements with unlawful consideration or object (Sec. 23).

(iv) Agreements, whose consideration or object is unlawful in part (Sec. 24).

(v) Agreements having no consideration (Sec 25).

(vi) Agreements in restraint of marriage (Sec. 26).

(vii) Agreements in restraint of trade (Sec. 27).

(viii) Agreements in restraint of legal proceedings (Sec. 28).

(ix) Agreements, the meaning of which is uncertain (Sec. 29).

(x) Agreements by way of wager (Sec. 30). and

(xi) Agreements to do impossible acts (Sec. 56).

Example:

A promise to close his business against the promise of B to pay him Rs.2 lac is a void agreement because it is restraint of trade.

Here we are discussing about one of the essentials of a valid contract, listed as follows. All essential features of a valid contract are as follows.

1) Two parties

2) offer and acceptance.

3) Intention to create legal relations

4) Lawful consideration

5) Capacity of parties

6) Free & Genuine consent

7) Lawful objects

8) Writing & registration - legal formalities

9) Certainty

10) Possibility of performance

11) Not expressly declared void.

Thanks for reading till the end. The underlined part in this article is the most important part of this subject and you must write atleast this part in the exam. Also relevant case laws will give you more advantage and an example is must in answer. Please share this blog with all the law students.