Contract
An
agreement enforceable by law is a contract; Section 2(h)
(a)
Definition
To
constitute an agreement, it was necessary that there was an unconditional offer
and sale was accepted by competent person or authority giving rise to accrual
of 'rights to parties to such agreement. Where a tenderer made an offer to
purchase certain property and attached conditions thereto, an agreement could
not come into effect unless conditions were also accepted by Authority issuing
tenders. Offer of tenderer having not been excepted by Authority, no right had
accrued to such tenderer on basis of his conditional offer.
(b)
Oral
A
contract can be entered into orally or in writing. Oral agreement would be
valid and enforceable as a written agreement provided it fulfilled all the
requirements of a valid contract. Oral agreement, however, requires for proof
clearest and most satisfactory evidence. 'From the respondent had not signed
any of the documents or no document was duly signed by both parties, it cannot
be inferred that no valid agreement existed.
c.
Parties necessary for contract
Since
a contract can only be bilateral and the same cannot be party on both sides,
there can hardly be a contract between a on the one side a and b on the other
side, particularly in a contract of employment.
d.
Contract between more than two parties
A
contract may be made by more than two parties.
e.
Stage when contract is made
A contract
does not hold good against the law of the land which may be enforceable for the
time being as public law. The question whether the parties had reached a
concluded contract or not, is a question of fact to be deduced from the
correspondence, and other documentary and oral evidence. The true test for
deciding this question is to ascertain whether the parties where of one mind on
all the whether they intended that the matter was closed and finalized between
them and whether they time it is said to have been finalized between them and
whether they intended that the :matter was closed and concluded between them.
f.
Agreement to contract is not a contract
Where
the parties agree to enter - into a contract such an agreement is not a
contract in law at all. An agreement to sell per se does not create title in
property. Such agreement only creates a right to obtain another document. No
registration of it is requited even though it contains acknowledgment of
receipt of earnest money or part payment of price.
(g)
License
A
license is in the nature. of a privilege conferred to do that which it would
not have been permissible for the licenses to do otherwise. Therefore the
arrangement, by which a liquor license was- enabled to sell excusable liquor
under a license, cannot be described as a contract.
(h)
Not enforceable a agreement
Contract
implies free and conscious agreement between two Parties with regard to their
rights and liabilities arising out of a particular transaction. Contract binds
both the parties and such Contracts are subject to the law of the land.
i.
Promise without consideration
A
promise without consideration is unenforceable in a Court of law and cannot
amount to a contract between the parties.
j.
Variation of statutory liability
It
is perfectly legal for parties to a transaction to agree that their liabilities
should be different from that created by statutes and a contract containing
such an agreement should be given effect to provide their intention to so vary
the liability is clear beyond doubt from the terms of the contract itself.
k.
Cancellation or alteration of contract
A
party to a contract is not entitled in law to cancel a concluded contract
unilaterally. Having entered into an agreement, it is not open to the defendant
to resile from the same on untenable grounds as he pleases. Therefore, such a
cancellation has no effect in law.
l.
Non-performance of his part of contract
Where
petitioner was awarded contract, he was required to deposit 5 per cent. Of
contractual amount but he failed to do so. Petitioner could not claim that such
contract could not: be awarded to any body without notice to him.
(m)
Unilateral alteration in terms of contract
Once
a contract was concluded terms thereof, could not unilaterally .be any one of
the parties to such contract. If while a written contract remains executor, a
party unauthorized so alters it as to very its legal effect do his advantage,
whether he meditates a fraud or not or if, which the positive intent to
defraud, he makes in it any alteration whatever-or, if another thus alters it
under authority from him or, if one to whose custody he simply commits it makes
in it a material alteration advantageous to him, then, at the election of the
other party, he is estopped from relying upon it in a Court of justice.
(n)
Unilateral addition to terms is not permissible
Where
however, power to increase rates unilaterally is given by the contract. Such
increase cannot be challenged as improper.
(o)
Alteration in public interest
Where
the 'purchaser of a shop in a plaza claimed that no deviation from stipulation
except by mutual consent or with intendment to benefit members of public, could
be permitted, such as reservation that no deviation had been made and that
slight alteration, such as reservations of two parking floors, who chose to
daily come to daily come up with their offer in response to general invitation:
High Court upheld the contention of the defendant.
p.
Unilateral rescission of contract
A
contract or agreement duty entered into between parties cannot be unilaterally
rescinded.
q.
Extension of contract after its expiry
Where
original contract had expired and there was no fresh agreement, and parties had
continued previous relationship contract was deemed to have been extended, with
modification of the contract if the same was.
For
specific period; extended contract was deemed to be without any specified
period on day to day or month to month basis with rest of terms and conditions
being identical to earlier.
r.
Loan granted on installment basis recall of on non-payment of one installment
Where
bank had granted a loan and loan amounts were to b repaid in 24 bit annual
installments. It was, held that balance installments, under terms of loan
agreement could always be recalled by plaintiff (Bank) in case of default on
the part of defendant.
(s)
Contract between government and private individual
All
parties to a contract are equal before law. Therefore despite the fact
respondents were officers of a agreement in question, their position and status
was equal.
(t)
Denial of execution of contract
Where
a person denies due execution of a contract signed by him, he must prove any
allegation which negative the existence of the agreement. A defendant's plea in
written statement, that he had signed blank forms, not be substantiated for his
failure to cross-examine plaintiff's witness and non-production of evidenced in
support of such plea was turned down.
(u)
Contract containing term as to cancellation
Where
under a contract political Agent was competent to cancel at any time without
assigning any reason on issuing 15 day prior notice. But the contract was
cancelled without giving such notice. Though the action was improper and wrong
yet political Agent cannot be said to have acted without. Jurisdiction, illegally
and with mala fide intention.
v.
Constitutional jurisdiction
No
contract can be enforced through Constitutional petition.. If in every
contractual matter giving rise to enforcement of contractual Obligation or
dispute which could be redressed through other remedy available under the law,
constitutional petitions were entertained, then the same would defeat the very
purpose of law under which competent Courts were established and vested with
jurisdiction under the law.
w.
Public contract awarded illegally
Where
a public contract was awarded to a person through negotiation and not through
public auction. Such exercise was patently mala fide and without jurisdiction
and contract awarded to such person was without lawful authority and of no
legal effect and it may be declared so in Constitutional jurisdiction.
x.
Third party cannot seek of contract
On
the touchstone of Islamic' Rules of interpretation, which unless excluded.
otherwise, under present Constitutional set up the Court are bound to apply in
preference to the contract so-called accepted rules of interpretation under the
other jurisprudential concepts (and the fiscal laws are no exception in this
behalf) a third party such as income-tax Authorities cannot change the nature
of the contract intended by the parties thereto, under the pretext that the
rule of interpretation of a fiscal law in this behalf is different.
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