Imperial Loan Co. Ltd. v. Stone [1892] 1 Q.B. 599 (competence of parties, mental capacity) FACTS: Defendant when lunatic signed a promissory note as surety upon which plaintiff brought an action and defendant took the defence of insanity ISSUE: Whether defendant can successfully claim insanity as a defence? HELD: To successfully take the defence of insanity as…
Samuel Pillai v. Anathan Pillai [Section 25(3) of Indian Contract Act, Consideration] FACTS: Administratrix of the deceased whose property was inherited by the defendant entered into an agreement with the latter to convey the title in the property without deducting the debt, which was barred by the limitation, for the promissory note paid by the…
Citation: (1899) ILR 24 Bom 97 A agreed in writing to supply coal to B at certain prices and up to a stated quantity, or in any quantity which may be required for a period of twelve months, is not a contract unless B binds himself to take some certain quantity, but a mere continuing offer…
Citation: (1918) 87 L.JKB 677 FACTS: The plaintiffs advertised for tenders for the supply of stores. The defendant made a tender to the effect that he undertook to supply the company for twelve months with such quantities of special articles as the company may order from time to time. The Company, by a letter accepted the tender and subsequently gave…
Union of India & Ors. v. M/S. Bhim Sen Walaiti Ram 1970 SCR (2) 594 (Section 7 of Indian Contract Act -Acceptance must be absolute) FACTS: In an auction held for the sale of license of liquor shop, defendant offered the highest bid which was provisionally accepted “…subject to the confirmation of Chief Commissioner who may…
State of West Bengal v. M/S. B. K. Mondal and Sons 1962 SCR Supl. (1) 876 (Section 70 of Indian Contract Act) FACTS: In addition to the construction work as stipulated under the contract, plaintiff did some more construction work as requested by an officer of State of W.B. Government though started using the constructed…
Lipkin Gorman v. Karpnale Ltd. [1988] UKHL 12 (Wagering Agreements – Unjust Enrichment) FACTS: C was a partner in a firm of solicitors and a compulsive gambler at the casino run by defendant. In order to finance his gambling, C, in the capacity of partner of the firm, resorted to drawing cheques on the firm’s clients’…
Bolton v. Mahadeva [1972] 2 All ER 1322 (Substantial Performance of an obligation) FACTS: Defendant engaged plaintiff to install central heating system under a lump sum contract. However, the work was completed with many defects like: fumes from the boilers, inadequacy of warmth, etc. such that the total cost of repairing would have to be…
Cory Brothers & Co. v “Mecca” (Owners of Turkish Steamship) [1897] AC 286 (Debtor and Creditor – Appropriation of Payments – Right to Appropriate – Intention of Creditor) FACTS: Cory Bros. (CB) were holders of four dishonored bills of exchange from H Co., for services to latter’s steamships Mecca and Medina: first on account of…
The State of Bihar v. Ram Ballabh Das Jalan and Anr. AIR 1960 Pat 400 Also See Morris v. Baron (Novation=Substitution) FACTS: Defendant had a debt of certain amount due to plaintiff along with certain credit due from latter. Plaintiff, by its letter acknowledged the credit and made claim for remaining debt due. Defendant acknowledged…
Nathu Lal and Ors. v. Mst. Gomti Kaur and Ors. AIR 1940 PC 160 (Material Alteration) FACTS: Plaintiff executed a sale deed (A) in favour of defendants who in turn executed a deed (B) for conditional transfer of the properties sold to them both on 25th March 1844, condition being paying the stipulated consideration amount…
Morris v. Baron & Co. [1918] AC 1 (Section 62, discharge by agreement, substitution of new agreement, novation) FACTS: Morris entered into written contract (A) with Baron to supply him with certain no. of pieces of cloth: dispute arose between the parties as Morris demanded payment of supplied pieces of cloth while Baron claimed damages…