Law of Contract Notes for LLB Students (Indian Contract Act, 1872)

Contract law is the first substantive-law paper most LL.B. students encounter. These notes track the structure of the Indian Contract Act, 1872 as taught across Indian law schools.

Essentials of a Valid Contract (Section 10)

A contract requires: offer and acceptance (Sections 2(a)-2(b)), lawful consideration (Section 2(d), 25), capacity to contract (Section 11 — not a minor, of sound mind, not disqualified by law), free consent (Sections 13-22), and a lawful object (Section 23). Mohori Bibee v. Dharmodas Ghose (1903) remains the leading authority that an agreement with a minor is void ab initio, not merely voidable.

Offer and Acceptance

An offer (Section 2(a)) must be communicated and capable of creating legal relations; an invitation to treat (shop displays, advertisements) is not an offer. Acceptance (Section 2(b)) must be absolute and unqualified and communicated to the offeror — the postal rule under Section 4 makes acceptance complete against the offeror when the letter is posted.

Free Consent

Consent is not free when caused by coercion (Section 15), undue influence (Section 16), fraud (Section 17), misrepresentation (Section 18), or mistake (Sections 20-22). Contracts caused by coercion, undue influence, fraud or misrepresentation are voidable at the option of the aggrieved party (Section 19); mistake of fact by both parties as to an essential matter renders the agreement void (Section 20).

Void Agreements

Sections 24-30 list agreements void for unlawful consideration/object, agreements in restraint of marriage (Section 26), trade (Section 27), and legal proceedings (Section 28), agreements uncertain in meaning (Section 29), and wagering agreements (Section 30).

Discharge and Breach of Contract

Contracts discharge by performance, agreement, impossibility (Section 56 — doctrine of frustration), or breach. Remedies for breach include damages (Sections 73-75, compensatory not penal in nature per Hadley v. Baxendale principles as applied in India), specific performance, and injunction under the Specific Relief Act, 1963 (amended 2018).

Key exam questions to prepare

• Essentials of a valid contract under Section 10.
• Distinguish void, voidable and illegal agreements with case law.
• Doctrine of frustration under Section 56 with examples.

More: all LL.B. subject notes