Void agreements

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					Void agreements
                             Mistake


Of Law                                                             Of Fact


Of ordinary law            of foreign law                  of pvt rights


As to nature of contract   as to persons contracted with      as to subject matter
                              Mistake
• 1. Mistake when there is no consensus ad idem [Raffles v
  Wichelhuas 1864 ]
• 2. Mistake as to a matter of fact essential to the agreement
   – [sec. 20] Ayekam Angahal Singh v UOI Air 1970
• 3. Mistake of Law
   – Lakshman Prasad and Sons v Achuthan Nair AIR 1955 Mad 652
• 4. Mistake on subject matter:
   – Leaf v International Galleries [1950] 1 All ER 693
• 5. Mistake as to possibility of performance of the contract
   – Sheikh Bros v Ochsner 1957 AC 136 ---- Griffith v Brymer
     (1903) 19 TLR 434
• 6. Mistake as to identity of parties
   – Boulton v Jones 1857--- Said v Butt 1920
   Mistake: New developments
• Contract made inter praesentes
  – Phillips v Brooks 1919
  – Ingram v Little [1960] 3 All ER 332
  – Bell v Lever Bros Ltd. [1932 AC 161]

• Plea of ‘Non est factum’
  – Dularia Devi v Janardan Singh AIR 1990 SC
    1173
         Legality of object and Consideration
• 1. It is forbidden by law
     – Universal Plast Ltd v Santosh Kumar AIR 1985
• 2. Defeat the provision of any law
     – Ram Sewak v Ram AIR 1962 All 177 -Abdul Piojkhan Nabab v Hussenbi 1904
• 3. Injurious to person or property
     – Gurmukh Singh v Amar Singh 1991 2 SCC 79
• 4. Agreement Injurious to public policy
     – Sukha v Ninni AIR 1966 - Punnakotiah v Kallapalli Kolikamba AIR 1967 AP ---
       Mewa Ram v Ram Gopal ILR 1926
• 5. Immoral
     – Pearce v Brooks 1866-- Bai Viji v Nansa Nagar 1885 ----Narayani v Pyare Mohan
       AIR 1927
•   6. Agreement opposed to public policy Sec. 23
     –   Trading with an enemy
     –   Trafficking in public offices
     –   Interference with the administration of justice
     –   Marriage brokerage contracts: Herman v Charlesworth 1905 2 KB 123
                   Void Agreements
• 1. Agreement in restraint of marriage: sec. 26
   – Rao Rani v Gulab Rani AIR 1942
• 2. Agreement in restraint of trade [sec. 27]
   – Herbert Morris Ltd Saxelby 1916
   – Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co 1894
   – Gujarat Bottling Co v Coca Cola Company Air 1995 SC 2372
• Exception to an agreement in restraint of trade
   – 1. Sale of Good will
   – 2. Exception under Indian Partnership Act
   – 3. Restraint by a contract of service [employment]
       • Niranjan Shankar v Century Spinning and Manufacturing Co AIR 1967
• 4. Trade combinations
   – Sheikh Kalu v Ram Sharan Bhagat 1909 13 CNN 388
• 5. Agreement in restraint of legal proceedings: sec. 28
   – Ghose v Reliance Insurance Co 1934
• 6. Wagering Contracts
             Quasi Contracts
• 1. Claim for necessaries supplied to a person
  incompetent to contract
• 2. Reimbursement of money paid due by
  another
  – Exall v Patridge 1799
• 3. Obligation of person enjoying benefit of non-
  gratuitous act: [sec. 70]
  – Indu Mehta v State of UP AIR 1987 ALL 309
• 4. Enjoyment of benefit by the defendant is
  necessary:
  – P C Wadhwa v State of Punjab AIR 1987 PH 117
• 5. Finder of Lost goods: sec. 71