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…
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…
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…
V.L. Narasu v. P.S.V. Iyer AIR 1953 Mad 300 (Section 56, Frustration, Section 39, breach) FACTS: Defendant contracted with plaintiff to screen latter’s film in his cinema house until the net collection fall below some stipulated amount. Later there were unprecedented heavy rains which made a wall of cinema house to collapse owing to some…
Saradamani Kandappan v. S. Rajalakshmi & Ors. (Performance of Reciprocal promises, S.51 to 55) FACTS: Plaintiff entered into contract for purchase of certain mortgaged properties with defendant on following terms: first, that the execution of sale deed shall be at the convenience and desire of plaintiff; subject to her satisfaction of title to the land…
M/S Gujarat Bottling Co.Ltd. & Ors. v. The Coca Cola Co. & Ors. 1995 SCC (5) 545 (Restraint of Trade, Substitution, Assignment) FACTS: GBC entered into an agreement in 1993 with Coke for grant of franchisee to prepare, bottle, sell brands of latter, but not to be concerned with the beverages of any other brand…
Derry v. Peek (1889) LR 14 App Cas 337 (Misrepresentation or Fraud—Collateral Warranty) FACTS: A tramway company’s prospectus stated that it had the right to use steam power for moving carriages as an absolute right, though in actuality it was subject to condition of Board of Trade (BoT). Plaintiff, on faith of that statement, took…
M/s Motilal Padampat Sugar Mills v. State of Uttar Pradesh & Ors. 1979 SCR (2) 641 (Promissory Estoppel) FACTS: Government of UP announced to give tax exemption from sales tax for three years to all new industrial units of the state. Based on this, plaintiff sought confirmation from Director of Industries who reiterated the decision…
Badri Prasad v. State of Madhya Pradesh & Anr. 1969 SCR (2) 380 (Ascertainment) FACTS: The appellant (A) entered into a contract in respect of certain forests and became entitled to cut teak trees with some specifications.[1]After a legislation[2] vesting the estate in the State, A was prohibited from cutting timber in exercise of his…