Basic Principles of Contract | Contract Law

Imperial Loan Co. Ltd. v. Stone

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…

Basic Principles of Contract | Contract Law

HPA International v. Bhagwandas Fateh Chand Daswani and Ors.

HPA International v. Bhagwandas Fateh Chand Daswani and Ors. Civil Appeal Nos. 6006 of 2001 and 336 of 2002 (Contingent Contracts-Implied terms) FACTS: Due to likelihood of coercive recovery of public dues by attachment and sale of property by public auction, sale of property was necessitated (this fact was recited in agreement) and defendant entered…

Basic Principles of Contract | Contract Law

Martin Walford v. Charles Miles

Martin Walford v. Charles Miles  [1992] ADR.L.R. 01/23 (Lock-out and Lock-in Agreements; Uncertainty) FACTS: On 17th March M agreed that, provided that W’s bank confirmed that W had the necessary financial resources to purchase M’s business for 2m pounds, they would ‘break off any negotiations with any third party and would not consider any other…

Basic Principles of Contract | Contract Law

Esso Petroleum Co. Ltd. v. Mardon

Esso Petroleum Co. Ltd. v. Mardon [1976] QB 801 (Collateral Warranty and Misrepresentation) FACTS: A much experienced employee of Esso estimated throughput of petrol from particular station (to be built) to reach 200,000 gallons in 3rd year of operation. But, owing to refusal by planning authority, filling station was now built “back to front”. Ignoring…

Basic Principles of Contract | Contract Law

Nash v. Inman

Nash v. Inman [1908] 2 KB 1 (Contract for necessity for minor enforceable) FACTS: A tailor supplied 13 waistcoats and other things of that kind to a undergraduate student when latter was a minor. Student refused to pay for the goods supplied and tailor brought this suit against him for recovery of price of those…

Basic Principles of Contract | Contract Law

Mohori Bibee v. Dharmodas Ghose

Mohori Bibee v. Dharmodas Ghose  (1903) 30 Cal. 539 (Minor Agreements) FACTS: Agent of defendant advanced money to plaintiff, an infant, fully knowing his incompetency to contract, against mortgage of property belonging to latter. Plaintiff commenced this action to get the mortgage declared as void u/s 2, 10 and 11 of ICA and repossession of property thereunder conveyed to…