MODULE 1:

Sections 1 – 9, 30 – 37 and 68 – 72 of the Indian Contract Act 1872

1.1 INTRODUCTION
History and nature of a contractual obligation Contemporary Relevance.

The Indian Contract Act 1872 is a legislation that governs the law of contracts in India. It defines
and regulates the legal relationships that arise when parties enter into an agreement. A
contractual obligation is a legal duty that arises when one party promises to do something in
exchange for something else from the other party. The promise made by one party is known as
the offer, and the acceptance of that offer by the other party creates a legally binding
agreement.

The history of contractual obligations in India dates back to the ancient times, where the
concept of a contract was referred to as 'vyavahara'. The concept of a contract was recognized
and enforced by the courts, which were guided by the principles of equity and fairness. With
the passage of time, the principles of contract law were codified, leading to the enactment of
the Indian Contract Act 1872.

Under the Indian Contract Act 1872, a contract is defined as an agreement between two or
more parties that creates an obligation to do or not to do something. For a contract to be valid,
it must satisfy certain requirements, such as the presence of an offer, acceptance,
consideration, and an intention to create legal relations. The Act also provides for various types
of contracts, such as contracts of sale, contracts of agency, contracts of indemnity, and
contracts of guarantee, among others.

The contemporary relevance of contractual obligations is significant in India, as contracts are

entered into in various fields, such as business, employment, real estate, and intellectual
property, among others. The Act provides a legal framework for the enforcement of contracts,
and in case of breach of contract, the aggrieved party can seek remedies such as damages or
specific performance.

In conclusion, the Indian Contract Act 1872 plays a significant role in governing the law of
contracts in India, and contractual obligations continue to hold contemporary relevance in
various fields of activity.

1.2 OFFER, ACCEPTANCE AND ITS COMMUNICATION

Under the Indian Contract Act 1872, a contract is formed when there is an offer, acceptance,
and consideration. Here is a brief overview of the offer, acceptance, and communication of
offer and acceptance as per the Act:
Offer:

An offer is a proposal made by one party to another, expressing the willingness to do or not to
do something, with a view to obtaining the assent of the other party. According to Section 2(a)
of the Indian Contract Act, 1872, an offer 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.”

An offer must contain certain essential elements, such as certainty, communication, and
intention to create legal relations. An offer may be made orally, in writing, or by conduct.

Acceptance:

Acceptance is a manifestation of assent to the terms of an offer. According to Section 2(b) of

the Indian Contract Act, 1872, acceptance is defined as “when the person to whom the
proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal
when accepted becomes a promise.”

For acceptance to be valid, it must be communicated to the offeror. The acceptance must also
be unconditional and must be in accordance with the terms of the offer. If the acceptance
contains additional terms or conditions, it will be treated as a counter-offer, and the original
offer will be terminated.

Communication of Offer and Acceptance:

Communication of offer and acceptance is a vital aspect of the contract formation process.
According to Section 3 of the Indian Contract Act, 1872, an offer is said to be communicated
when it is made to the person to whom it is intended. Similarly, acceptance is said to be
communicated when it is made to the offeror. Communication of offer and acceptance can be
made in writing, orally, or by conduct.

In conclusion, the Indian Contract Act 1872 provides a legal framework for the formation of a
contract based on offer, acceptance, and consideration. The Act also emphasizes the
importance of communication of offer and acceptance to ensure that the contract formation
process is fair and transparent.
1.3 Types of Contracts
 Express Contract: An express contract is one in which the terms and conditions of the
agreement are explicitly stated by the parties. This can be done in writing, orally, or by conduct.

 Implied Contract: An implied contract is one in which the terms and conditions of the
agreement are not explicitly stated but can be inferred from the actions of the parties involved.

 Quasi Contract: A quasi-contract is not a true contract but is an obligation imposed by law to
prevent unjust enrichment. It arises when a person receives benefits or services that they have
not paid for, and the law requires them to compensate the provider of such benefits or
services.

 Unilateral Contract: A unilateral contract is one in which one party makes a promise in
exchange for the other party's performance of a specific act. The contract is formed once the
act is performed.

 Bilateral Contract: A bilateral contract is one in which both parties make promises to each
other. The contract is formed once both parties have made their promises.
 Executed Contract: An executed contract is one in which both parties have performed their
obligations under the agreement.

 Executory Contract: An executory contract is one in which one or both parties have yet to
perform their obligations under the agreement.

 Void Contract: A void contract is one that is not enforceable by law and has no legal effect. It
is a contract that is not valid from the beginning.

 Voidable Contract: A voidable contract is one that is valid and enforceable until the party
with the right to void the contract exercises their right to do so. Once the contract is voided, it
becomes unenforceable.

 Contingent Contract: A contingent contract is one in which the performance of the contract
depends on the occurrence or non-occurrence of a specific event. The contract is formed based
on the happening or non-happening of such an event.

Standard Form Agreements:

A standard form agreement is a pre-written contract where the terms and conditions are set by
one party and presented to the other party for acceptance without any negotiation or
modification. These types of agreements are typically used in situations where one party has
significantly more bargaining power than the other.

Examples of standard form agreements include:

1. Rental agreements: Landlords often use pre-written rental agreements that tenants are
required to sign if they want to rent the property. The terms and conditions are set by
the landlord, and the tenant is not able to negotiate or modify the terms.
2. Insurance contracts: Insurance companies use standard form agreements that outline
the terms and conditions of the insurance policy. Policyholders are required to sign the
agreement to accept the coverage, and the terms of the policy cannot be negotiated.
3. Credit card agreements: Credit card companies often use standard form agreements
that set out the terms and conditions of the credit card, including interest rates, fees,
and payment terms. Cardholders are required to sign the agreement to receive the card,
and the terms of the agreement are not negotiable.
4. Online user agreements: Websites and software companies often use standard form
agreements that outline the terms and conditions of using the platform. Users are
required to accept the terms of the agreement to use the service, and the terms are
typically not negotiable.

In conclusion, a standard form agreement is a pre-written contract where the terms and
conditions are set by one party and presented to the other party for acceptance without any
negotiation or modification. These types of agreements are commonly used in various contexts,
such as rental agreements, insurance contracts, credit card agreements, and online user
agreements.

"E-Contracts"-Includes Legal Recognition to E-Contracts as per the India Information

Technology Act ( Section 2 – 16)

"E-Contracts"-Includes Legal Recognition to E-Contracts as per the India Information

Technology Act ( Section 2 – 16) in simple

E-Contracts, also known as electronic contracts, are contracts that are formed electronically,
such as through email, online platforms, or other electronic means. In India, the legal
recognition of e-contracts is provided by the Information Technology Act, 2000 (IT Act).

According to the IT Act, an electronic contract is legally recognized and enforceable, provided
that it meets certain requirements. The Act defines an electronic contract as "a contract formed
through electronic means and includes contracts formed through electronic data interchange,
electronic mail, telex, fax and telecopying, but does not include any other means of
communication."

To ensure the validity of an e-contract under the IT Act, the following requirements must be
met:

1. The e-contract must be made with the intention to create a legal relationship.
2. The e-contract must contain an offer, acceptance of the offer, and consideration (the
exchange of something of value between the parties).
3. The parties must have the legal capacity to enter into the contract.
4. The e-contract must be in a form that can be stored and later retrieved in an unchanged
state.
5. The e-contract must be authenticated by means of digital signatures or other methods
provided for in the IT Act.

Once these requirements are met, an e-contract is legally recognized and enforceable in the
same way as a traditional, paper-based contract. This means that if one party breaches the
terms of the e-contract, the other party can seek legal remedies to enforce the contract and
recover damages.

In conclusion, e-contracts are legally recognized and enforceable in India under the Information
Technology Act, provided that they meet certain requirements related to intention, offer,
acceptance, consideration, legal capacity, and authentication. E-contracts are becoming
increasingly popular in various industries, and it is important for businesses and individuals to
understand the legal framework governing these types of contracts.

Definitions: Digital Signatures, Electronic Governance, Attribution, Acknowledgment and

Despatch of electronic records, Clickwrap and Shrink Wrap Contracts.
 1. Digital Signatures: A digital signature is a unique digital code that is used to
authenticate the identity of a person or organization sending an electronic document. It
is an electronic way of signing a document and provides security and authenticity to the
document.
2. Electronic Governance: Electronic governance, also known as e-governance, refers to
the use of information technology to enhance the efficiency and effectiveness of
government services and processes. It involves the use of electronic means for the
exchange of information, communication, and delivery of services.
3. Attribution, Acknowledgment and Despatch of Electronic Records: According to the
Information Technology Act, 2000, attribution refers to the process of verifying the
source of an electronic record, acknowledgment refers to the confirmation of receipt of
an electronic record, and despatch refers to the process of sending an electronic record.
4. Clickwrap Contracts: A clickwrap contract, also known as a click-through agreement, is a
type of contract in which a user must click a button or check a box to indicate
acceptance of the terms and conditions before being granted access to a service or
product. It is commonly used for online purchases, software installations, and website
registrations.
5. Shrink Wrap Contracts: A shrink wrap contract is a type of contract in which the terms
and conditions of the contract are included inside the packaging of a product. By
opening the package or using the product, the user is deemed to have accepted the
terms and conditions of the contract. It is commonly used for software and consumer
products.

In conclusion, digital signatures are unique digital codes used to authenticate the identity of the
sender of an electronic document. Electronic governance refers to the use of information
technology to enhance government services and processes. Attribution, acknowledgment, and
despatch of electronic records refer to the processes of verifying the source, confirming receipt,
and sending of electronic records. Clickwrap and shrink wrap contracts are types of contracts
commonly used in online purchases and software installations.

MODULE 2:
Section 10-30
2.1 Essential Ingredients for Enforceability (Sections 10 – 30)

The Indian Contract Act, 1872 lays down the essential ingredients that are necessary for the
enforceability of a contract. These ingredients are as follows:

1. Offer and Acceptance (Sections 2(a), 2(b), 7-10): An offer is a proposal made by one
party to another to enter into a contract. The offer must be communicated to the other
 party, who must accept it for a contract to be formed. The acceptance must be
unconditional and in accordance with the terms of the offer.
2. Intention to Create Legal Relations (Section 10): Both parties must have a genuine
intention to create legal relations. An agreement that is not intended to be legally
binding is not enforceable.
3. Free Consent (Sections 13-22): Consent is said to be free when it is not obtained by
coercion, undue influence, fraud, misrepresentation, or mistake. The parties must have
entered into the contract freely and without any external pressure.
4. Lawful Object and Consideration (Sections 2(e), 23): The object of the contract must be
lawful, and the consideration exchanged between the parties must be something of
value. An agreement with an unlawful object or without consideration is void.
5. Capacity of Parties (Sections 11-12): The parties to a contract must be competent to
enter into a contract. A person who is not of the age of majority, of unsound mind, or
disqualified by law is not competent to enter into a contract.
6. Certainty (Section 29): The terms of the contract must be certain and not vague. If the
terms of the contract are uncertain or ambiguous, the contract is not enforceable.
7. Possibility of Performance (Section 56): The performance of the contract must be
possible. If the contract is impossible to perform, it is void.
8. Legal Formalities (Sections 59-67): Some contracts must be in writing or registered to
be enforceable. For example, contracts for the sale of immovable property must be in
writing and registered.

2.2 Competency of Parties

Section 11 defines Competency of Parties
 Competency refers to the legal ability of a person or entity to participate in a contract or
legal agreement.
 In order to be competent, a party must be of legal age, have the mental capacity to
understand the terms of the agreement, and not be under the influence of drugs or
alcohol.
 Minors (those under 18 years of age) are generally not considered competent to enter
into contracts, although there are some exceptions.
 People with mental disabilities may also be deemed incompetent to enter into
contracts, although the degree of mental incapacity required to establish incompetence
can vary depending on the jurisdiction.
  In some cases, the competency of a party may be challenged in court if it is believed
that they did not fully understand the terms of the agreement or were coerced into
signing it.
 It is important to ensure that all parties to a contract are competent, as a contract
entered into by an incompetent party may be considered voidable or unenforceable.

2.3 Free Consent

2.4 Consideration
Consideration is a legal term that refers to something of value that is given in exchange for a
promise or an act. In contract law, consideration is one of the essential elements required for
the formation of a binding agreement between parties. Here are some key points to help you
understand consideration:

 Consideration is a benefit received or a detriment suffered by one party to a contract in

exchange for a promise or act from the other party.
 The benefit or detriment must be something of value and must be given with the
intention of inducing the other party to enter into the contract.
 Consideration can take many forms, such as money, goods, services, promises, or a
combination of these things.
 Consideration must be something that is legally sufficient, meaning that it has some
value in the eyes of the law.
 Adequacy of consideration, or whether the consideration is a fair exchange for the
promise or act, is generally not considered by the courts.
 There must be a mutual exchange of consideration for a contract to be binding. This
means that both parties must give and receive something of value in order for the
agreement to be enforceable.
 Past consideration, or consideration that was given before the contract was formed, is
generally not sufficient to create a binding agreement.
 Consideration must be given voluntarily and without duress or coercion.

2.5 Unlawful Object and Consideration

Under Indian Contract Law 1872, an agreement is only enforceable if it is entered into for a
lawful object and consideration. Here are some key points to help you understand the concept
of unlawful object and consideration in Indian contract law:

 An agreement is said to be for a lawful object if it is not illegal or against public policy.
 An object that is illegal or against public policy includes anything that is prohibited by
law or is immoral, unethical, or opposed to the interests of society as a whole.
  Examples of unlawful objects include agreements to commit a crime, agreements to
defraud or deceive someone, or agreements that are in violation of a statute or public
policy.
 An agreement entered into for an unlawful object is void and cannot be enforced by
either party.
 Consideration that is unlawful or against public policy is also not valid. For example, an
agreement to pay someone to commit a crime would be both an unlawful object and an
unlawful consideration.
 Consideration must be something that is real and tangible, and has some value in the
eyes of the law.
 An agreement that is formed without consideration is considered to be a gift, and is not
enforceable.
 Consideration must move from the promisee (the person to whom the promise is made)
to the promisor (the person making the promise). In other words, consideration must be
given in exchange for the promise made by the promisor.
 Past consideration, or something that was done before the agreement was made, is
generally not considered valid consideration. However, there are some exceptions to
this rule, such as where the past consideration was given at the request of the promisor.

2.6 Void Agreements

MODULE 3:
Sections 36 – 67 and 73-75
3.1 Performance of Contract
The Indian Contract Law, 1872 governs the performance of contracts. Here are some key points
to help you understand the concept of performance of contract under Indian contract law:

 Performance of a contract refers to the fulfillment of the promises made by the parties
to the agreement.
 The Indian Contract Law, 1872 provides that a party to a contract must perform their
obligations as per the terms of the agreement.
 The mode of performance of a contract can be expressly or impliedly stated in the
contract. If not specified, then it must be performed as per the ordinary course of
dealing.
 Time is of the essence in many contracts, which means that the parties are required to
perform their obligations within a specified timeframe.
 In the absence of any timeframe specified in the contract, the performance must be
made within a reasonable time.
 If a party fails to perform their obligations under the contract, the other party has the
right to terminate the contract and sue for damages.
 The party who fails to perform their obligations is said to have breached the contract,
and may be liable to pay damages to the other party for any losses suffered as a result
of the breach.
 A party may be excused from performing their obligations if they are prevented from
doing so due to a supervening event that is beyond their control, such as an act of God
or a government order.
 If a party partially performs their obligations under the contract, the other party may
accept the partial performance or terminate the contract and sue for damages.
 In certain types of contracts, such as contracts for the sale of goods, the buyer has
certain rights to reject the goods if they are not as per the agreed specifications.

3.2 Discharge of contract

3.3 Breach of Contract
3.4 Types of Damages & Remedies for Breach

Under Indian Contract Law 1872, the remedies for a breach of contract include damages,
specific performance, and injunction. Here are some key points to help you understand the
types of damages and remedies for breach of contract:

Types of Damages:

 Compensatory damages: This is the most common type of damages awarded for breach
of contract. It is intended to compensate the innocent party for any losses suffered as a
result of the breach. The damages awarded are usually equivalent to the actual loss
suffered, or the amount required to put the innocent party in the same position they
would have been in if the contract had been fulfilled.
 Liquidated damages: This is a pre-determined amount agreed upon by the parties in the
contract to be paid in case of a breach. The purpose of liquidated damages is to provide
certainty as to the amount of damages that will be awarded in case of a breach, and to
avoid the need for a court to determine the amount of damages.
 Nominal damages: These are a small amount of damages awarded where there has
been a breach of contract, but the innocent party has not suffered any actual loss as a
result of the breach. The purpose of nominal damages is to recognize the breach and to
establish that the breach occurred.
 Punitive or exemplary damages: These damages are not generally awarded for breach
of contract in India, but may be awarded in exceptional cases where the breach is
accompanied by fraud, malice or oppression.

Remedies for Breach:

 Specific performance: This is an equitable remedy available in certain types of contracts,

where the court orders the party in breach to perform their obligations under the
contract as per the terms agreed upon.
  Injunction: This is another equitable remedy, where the court orders the party in breach
to refrain from doing something that would violate the terms of the contract.
 Rescission: This is a remedy where the innocent party can ask the court to cancel or
rescind the contract in case of a serious breach by the other party. Rescission allows the
parties to be released from their obligations under the contract and to be restored to
their original position before the contract was entered into.

MODULE 4:
4.1 Origin of Specific Relief as Equitable Relief

The Specific Relief Act, 1963 is an Indian law that deals with the enforcement of specific
performance of contracts and other civil rights. The objective of the Act is to provide for the
specific relief of enforcing individual civil rights, in addition to providing remedies for breach of
contract.

The concept of specific relief can be traced back to the courts of equity in England. In medieval
England, the courts of law and equity were separate, and the courts of equity had the power to
grant equitable remedies that the courts of law did not have the power to grant.

Specific relief was an equitable remedy that allowed the court to order a party to perform a
specific obligation, rather than simply awarding damages for a breach of contract. This was
seen as a more just and equitable remedy, as it allowed the innocent party to receive the
benefit of their bargain, rather than simply compensating them for their loss.

Over time, the concept of specific relief as an equitable remedy became part of the common
law of England and was eventually codified in the Specific Relief Act, 1877. This Act was later
replaced by the Specific Relief Act, 1950, which was itself replaced by the current Specific Relief
Act, 1963 in India.

Today, the concept of specific relief as an equitable remedy is recognized in many common law
countries, including India, the United Kingdom, and the United States. While the specific
procedures for obtaining specific relief may differ from country to country, the underlying
principles remain the same, and the remedy continues to be an important tool for enforcing
contractual and other civil rights.

4.2 KINDS OF RELIEF IN Specific Relief Act 1963

4.2.1 Possessory Remedies

Here are some of the key points related to "possessory remedies" under the Specific Relief Act,
1963:

 Possessory remedies are a type of relief available to a person who is in possession of

immovable property or movable property but has been wrongfully dispossessed by
another person.
 The first remedy available is the remedy of possession. This remedy allows the person
who has been dispossessed of property to regain possession of the property. This
remedy is available only if the person was in possession of the property at the time of
dispossession and was dispossessed without their consent.
 The second remedy available is the remedy of restitution. This remedy allows the
person who has been dispossessed of property to be restored to the position they were
in before the dispossession occurred. This remedy is available even if the person was
not in possession of the property at the time of dispossession, but had a right to
possession.
 The third remedy available is the remedy of temporary injunction. This remedy allows
the court to issue an order prohibiting the person who has dispossessed another from
continuing to do so until the issue of possession is resolved.
 The fourth remedy available is the remedy of perpetual injunction. This remedy allows
the court to issue an order prohibiting the person who has dispossessed another from
ever again interfering with the other's possession of the property.
 In order to obtain any of these remedies, the person seeking relief must file a suit in the
appropriate court. The court will then consider the evidence presented by both parties
and make a determination as to whether the person seeking relief is entitled to
possessory remedies under the Specific Relief Act.

4.2.2 Specific Performance of Contracts

Here are the key points of Specific Performance of Contracts under the Specific Relief Act, 1963:
  Specific performance is an equitable remedy that allows a court to order a party to
perform their obligations under a contract.
 It is available only in certain types of contracts, such as contracts for the sale of land, or
contracts that involve a unique item or service that cannot be easily replaced.
 To obtain specific performance, the innocent party must show that damages would not
be an adequate remedy, and that specific performance is necessary to ensure justice is
done.
 The court has discretion to grant or refuse specific performance, depending on the facts
and circumstances of the case.
 Specific performance can be enforced through the appointment of a receiver or other
means, as directed by the court.
 If a party fails to comply with an order of specific performance, they may be held in
contempt of court and subject to fines or other penalties.

Overall, specific performance is a powerful remedy that can be used to enforce the terms of a
contract where damages would not be adequate. However, it is only available in limited
circumstances, and the court has discretion to decide whether it is appropriate in a given case.

4.2.3 Contracts that cannot be specifically performed

Here are the key points about contracts that cannot be specifically performed under the
Specific Relief Act, 1963:

 Certain contracts cannot be specifically performed because they involve personal

services, or because they require ongoing supervision or direction by the parties.
 Examples of contracts that cannot be specifically performed include contracts of
employment, contracts for personal services, and contracts that involve ongoing
obligations or supervision.
  In such cases, the court may award damages as a substitute for specific performance,
provided that the damages would be an adequate remedy for the breach of contract.
 The court may also award an injunction to prevent the breach of contract or to protect
the interests of the innocent party, where appropriate.
 If a contract cannot be specifically performed, the court may also order the cancellation
of the contract or the return of any property or consideration that was exchanged
between the parties.
 The court has discretion to determine whether a contract can be specifically performed,
based on the specific facts and circumstances of the case.

Overall, while specific performance is a powerful remedy, there are certain types of contracts
that cannot be specifically performed, such as those that involve personal services or ongoing
obligations. In such cases, the court may award damages or other appropriate relief to the
innocent party.

4.2.4 Substituted Performance of Contract

Substituted performance of a contract is an alternative remedy available to an innocent party in

case of a breach of contract. It involves a third party performing the obligations under the
contract, rather than the defaulting party.

Here are some key points about substituted performance of a contract:

 Substituted performance is an alternative to specific performance and damages.

 The innocent party can engage a third party to perform the obligations under the
contract, at the expense of the defaulting party.
  Substituted performance is available only in certain circumstances, such as where the
contract involves the provision of services that can be performed by a third party.
 Before resorting to substituted performance, the innocent party must provide notice to
the defaulting party of their intention to do so, and give them an opportunity to perform
their obligations under the contract.
 The cost of substituted performance is recoverable from the defaulting party as
damages.
 The court has discretion to order substituted performance, depending on the specific
facts and circumstances of the case.

Overall, substituted performance is a useful alternative remedy that can be used in certain
circumstances where specific performance or damages would not be adequate. It allows the
innocent party to obtain the benefit of their bargain, while also holding the defaulting party
accountable for their breach of contract.

4.2.5 Rectification of Instruments

Here are the key points about rectification of instruments under the Specific Relief Act, 1963:

 Rectification of instruments refers to the correction of errors or mistakes in written

documents, such as contracts, deeds, or agreements.
 A party seeking rectification must show that there was a mistake or error in the
instrument, and that it does not accurately reflect the true intention of the parties.
 Rectification may be granted by the court if it is satisfied that there was a mutual
mistake, unilateral mistake, fraud, or misrepresentation involved in the preparation of
the instrument.
 The court may order the instrument to be rectified to reflect the true intention of the
parties, or it may order the cancellation of the instrument altogether.
 The remedy of rectification is available only where there is a written instrument that
contains an error or mistake, and not in cases where there is a dispute about the terms
of an oral agreement.
 Rectification is a discretionary remedy, and the court will consider all relevant factors
before deciding whether to grant it.

Overall, rectification of instruments is a useful remedy that allows parties to correct errors or
mistakes in written documents, and to ensure that those documents accurately reflect the true
intention of the parties. It is a discretionary remedy that is available only in certain
circumstances, and the court will consider all relevant factors before deciding whether to grant
it.
4.2.6 Recession of Contract

Rescission of a contract refers to the cancellation or termination of a contract by the parties

involved. It is a legal remedy available to a party who has been induced to enter into a contract
based on fraud, misrepresentation, mistake, undue influence, or coercion.

Here are some key points about rescission of a contract:

 Rescission allows the parties to cancel the contract and restore the status quo ante, as if
the contract had never been made.
 A party seeking rescission must show that there was a defect in the contract, such as
fraud, misrepresentation, mistake, undue influence, or coercion.
 Rescission is a remedy available only in certain circumstances, such as where there has
been a fundamental breach of contract, or where the contract is voidable.
 Rescission must be communicated to the other party in a timely and clear manner, and
any benefits received under the contract must be returned or accounted for.
 Rescission may be granted by the court, but it is a discretionary remedy that will depend
on the specific facts and circumstances of the case.
 Rescission can have significant legal consequences, such as the loss of rights,
obligations, or benefits under the contract.

Overall, rescission of a contract is a powerful legal remedy that allows parties to cancel a
contract based on certain defects or deficiencies. It is a discretionary remedy that will depend
on the specific facts and circumstances of the case, and can have significant legal consequences
for the parties involved.

4.2.7 Cancellation of instrument

Cancellation of an instrument refers to the act of rendering a written document or instrument

null and void, typically through a court order. This remedy is available to parties who have been
induced to sign an instrument through fraud, mistake, duress, undue influence, or other similar
circumstances.

Here are some key points about cancellation of an instrument:

 Cancellation is a legal remedy that can be sought when a party has been induced to sign
an instrument through improper means, such as fraud, mistake, duress, undue
influence, or coercion.
 Cancellation may be granted by a court, which can order the instrument to be cancelled
and rendered null and void.
 The party seeking cancellation must provide evidence of the improper means used to
induce them to sign the instrument.
  The court may also order the return of any benefits received by the other party under
the instrument, and may award damages to the party seeking cancellation.
 Cancellation may be sought for a variety of instruments, including contracts, deeds,
agreements, and other legal documents.
 Cancellation is a discretionary remedy that will depend on the specific facts and
circumstances of the case.

Overall, cancellation of an instrument is a legal remedy that can be sought when a party has
been induced to sign a document through improper means. It is a discretionary remedy that will
depend on the specific facts and circumstances of the case, and may involve the court ordering
the instrument to be cancelled and any benefits received to be returned.

4.2.8 Declaratory Decree

A declaratory decree is a type of court order that declares the legal rights and obligations of the
parties involved in a dispute or controversy. It is a legal remedy that is available when there is
uncertainty or ambiguity about the legal status of a particular matter, and can be used to clarify
the rights and duties of the parties involved.

Here are some key points about declaratory decrees:

 A declaratory decree is a legal remedy that is available in situations where there is

uncertainty or ambiguity about the legal rights and obligations of the parties involved.
 A declaratory decree does not provide a remedy for any specific harm or injury, but
instead clarifies the legal status of a particular matter.
 A declaratory decree can be sought in a variety of legal contexts, including contract
disputes, property disputes, intellectual property disputes, and other types of
controversies.
 To obtain a declaratory decree, a party must demonstrate that there is an actual
controversy or dispute, and that there is a need for the court to declare the legal rights
and obligations of the parties involved.
 Once a declaratory decree has been issued, it can be used as a basis for future legal
proceedings and can provide clarity and guidance for the parties involved.
 A declaratory decree is a discretionary remedy that will depend on the specific facts and
circumstances of the case.

Overall, a declaratory decree is a useful legal remedy that can be used to clarify the legal rights
and obligations of the parties involved in a dispute or controversy. It does not provide a remedy
for any specific harm or injury, but can provide guidance and clarity for future legal
proceedings.
 4.2.9 Injunctions

TYPES OF INJUNCTION

Section 52 to 57 of the Specific Relief Act govern injunction. Injunctions are of three kinds:

·         Temporary

·         Permanent

·         Mandatory

I. Permanent Injunction:

A permanent Injunction, also known by the name perpetual injunction, prohibits a party forever
from doing the particular act and it can be granted only on merits at the end of the trial after
hearing both parties to the suit.

Section 38 of the Specific Relief Act lays down the cases in which perpetual injunction can be
granted.

Under Section 38(1),when breach of an obligation is to be prevented, then the Court can pass
permanent injunction. Such obligation can exist either expressly or impliedly.

While under Section 38(3), perpetual or permanent injunction can be granted when the
defendant invades or threatens to invade the plaintiff’s right to, or enjoyment of, property, the
court may grant a perpetual injunction in the following cases:

I.                   where the defendant is trustee of the property for the plaintiff;

II.                where there exists no standard for ascertaining the actual damage caused, or likely to be
caused, by the invasion:
III.             where the invasion is such that compensation in money would not afford adequate
relief;

IV.             where the injunction is necessary to prevent a multiplicity of judicial proceedings.

II. Temporary or interim injunction:

This type of injunction stops a party for a while from doing the specified act and can be granted
only until the suit is not over or until any other further order of the Court. Regulated by the
provision of the Order 39 of the Code of Civil Procedure, 1908 and can be granted at any stage
of the suit.

A temporary injunction is a provisional relief. The aim of such type of injunction is to protect
the

 subject matter of the suit in the existing condition, without the defendant’s interference
or threat.
 plaintiff from getting disposed off, or his property (subject matter) being destroyed or
harmed, or from any injury to the plaintiff.

The primary reason behind granting temporary injunction is to protect the interests of an
individual or the property of the suit, till the final judgement is passed. Th time period of such
injunction is

1. A specified period of time; or

2. till the court deems fit.

A temporary injunction is granted after answers to the following questions are determined

1)      whether the plaintiff has a prima facie case?

 2)      whether the balance of convenience is in favour of the plaintiff?

3)      whether the plaintiff would suffer an irreparable damage, if the injunction is not
granted?

III. Mandatory Injunction:

The sole purpose of mandatory injunction is to rectify any wrong done. The acts are restored
from their wrongful state to the right ones. The Court directs the defendant to do a certain
thing.

The concept of mandatory injunction, though not directly but,  is given under Section 39 of the
Act of 1963. the following elements have to be taken into consideration while deciding on
whether to grant mandatory injunction or not:[1]

1. What acts are necessary in order to prevent a breach of the obligation

2. The requisite acts must be such as the court is capable of enforcing.

It is well accepted by the Courts that mandatory injunction is not to be granted in the following
cases:

Where compensation in terms of money would be an adequate relief to the

plaintiff

Where balance of convenience is in favour of the defendant

Where plaintiff has shown acquiescence in the acts of the defendant

To create a new state of things, but rather to restore status quo.

The Hon’ble Supreme Court of India laid down the following test to be taken before granting
mandatory injunction:[2]
·         The plaintiff has must have a very strong case for trial. It should be of a standard higher
than that of a prima facie case;

·         The plaintiff has to lay-bare that the grant of mandatory injunction is necessary to
prevent irreparable loss or serious injury, which cannot be compensated in terms of
money; and

·         The balance of convenience is in favour of the plaintiff as against the defendant.