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Doctrine of Privity of Contract and of Consideration- Its Exceptions

  The Indian Contract Act clearly states that there cannot be a stranger to a contract. What does this exactly mean? And are there any exceptions? This is explained through the Doctrine of Privity of a Contract. Let us see. Doctrine of Privity of Contract The Indian Contract Act. 1872, allows the ‘ Consideration ‘ for an agreement to proceed from a third-party. However, a stranger (third-party) to consideration is different from a stranger to a contract. The law does not allow a stranger to file a suit on the contract. This right is available only to a person who is a party to the contract and is called Doctrine of Privity of Contract. Let’s understand this with the help of an example: Peter has borrowed some money from John. Peter owns a property and decides to sell it to Arjun. Arjun promises to pay John on behalf of Peter. However, if Arjun fails to pay, then John cannot sue since Arjun is a stranger to the contract. It is important to note that the Doctrine of Privity has excep...
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Contract : Meaning & Scope

  Law of Contracts dealing with matters relating to Contracts. A contract is made when an agreement becomes enforceable by law. There is no legal obligation as long as it is a mere agreement. Once the agreement becomes a contract, there is a legal obligation by parties involved. Introduction to Law of Contracts     Meaning, Nature and Types     Indian Contract Act, 1872     Major Definitions under Indian Contract Act, 1872. Agreement under Indian Contract Act (Section 2 to 9, Indian Contract Act)     Formation of an Agreement     Intention to Create Legal Relationship     Doctrine of Promissory Estoppel     Standard Form Contracts or Contracts of Adhesion     Proposal and Acceptance-Their various forms, Essential Elements     Counteroffer     Communication     Revocation- Mode of Revocation of Offer Capacity to Contract under Indian Contract Act (Sections: 10, 11, 12, 64, ...
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Nudum Pactum under the Indian Contract Act, 1872

  Nudum Pactum  The term ‘Nudum Pactum’ has been derived from Latin terminology which means a naked agreement.  The adage denotes an agreement made without any consideration. As per law, a contract is only enforceable when it is inclusive of the basic requirement of consideration. Consideration is defined as a promise to pay money, valuable things, or any other perk as discussed by the parties engaged in the contract or agreement. Where there is no consideration that is a nudum pactum, and hence such a contract is neither enforceable nor valid.   A nudum pactum might be made verbally or in writing. Since these agreements are unenforceable, they may not be pursued in court. This indicates that these agreements do not come under the categories of agreements that can lead to legal action. Such agreement may constitute a modification or exemption to an existing duty. The contract, on the other hand, is regarded as legitimate if it is sealed. Furthermore, some contracts,...
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Meaning of Contract, Nature and Scope of Contract

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                                        What is the meaning of contract? Meaning of Contract: – A contract means an agreement, which is enforceable by law. An agreement consists of reciprocal (mutual) promises between the two parties. In the case of contract each party is legally bound by the promise made by them. A contract is legally enforceable when it meets the requirements of applicable law. A contract or an obligation to promise may arise in the following ways: – By Agreement and Contract By Standard Form Contract; and By Promissory Estoppel. What is an Agreement? Meaning of an Agreement: – An Agreement is a promise between two entities creating mutual obligations by law. According to section 2(e) of the Act, every promise and every set of promises forming the consideration for each other is an agreement. In an agreement, there are promises from both the sides. All agreements are co...
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Section 72 in The Indian Contract Act, 1872

  Liability of person to whom money is paid, or thing delivered, by mistake or under coercion.—A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it. —A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it." Illustrations (a) A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.  (b) A railway company refuses to deliver up certain goods to the consignee except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegal and excessive. 
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Important Articles of Indian Constitution

  Article 2 – Admission or establishment of new States. Article 3 – Formation of new States and alteration of areas, boundaries or names of existing States. Article 5 – Citizenship at the commencement of the Constitution. Article 10 – Continuance of the rights of citizenship. Article 11 – Parliament to regulate the right of citizenship by law. Article 12 – Definition. ( Fundamental Rights ) Article 13 – Laws inconsistent with or in derogation of the fundamental rights. Article 14 – Equality before law . Article 15 – Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth. Article 16 – Equality of opportunity in matters of public employment. Article 19 – Protection of certain rights regarding freedom of speech, etc. Article 20 – Protection in respect of conviction for offences. Article 21 – Protection of life and personal liberty. Article 23 – Prohibition of traffic in human beings and forced labour. Article 24 – Prohibition of employment of children...
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FUNDAMENTAL DUTIES EXPLAINED – INDIAN CONSTITUTION

  Fundamental Duties are enshrined under Part IVA, Article 51A of the Indian Constitution. Originally, the Constitution of India had no mention of Fundamental Duties. They were added through the 42nd Constitutional Amendment on the recommendations of the Swaran Singh Committee. The Fundamental Duties are inspired by the Constitution of the erstwhile USSR. Article 29(1) of the Universal Declaration of Human Rights states that: Everyone has duties to the community in which alone the free and full development of his personality is possible. Swaran Singh Committee The Swaran Singh Committee was set up to make recommendations on the need and importance of Fundamental Duties, which were felt during the national emergency of 1975-1977. The committee recommended the addition of a separate chapter regarding Fundamental Duties in the Constitution. The committee recommended the incorporation of eight Fundamental Duties. However, not all recommendations of the Swaran Singh Committee were acce...
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