हिंदी पखवाड़ा प्रश्नोत्तरी 17.09.20

 

ICA 1872 CHAPTER II- OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

 

Section 24.ICA 1872 Agreement void, if considerations and objects unlawful in part.

 Section 24.   Agreement void, if considerations and objects unlawful in part.

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If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.



Illustration


A promises to superintend, on behalf of B, a legal manufacture of indigo, and an illegal traffic in other articles. B promises to pay to A a salary of 10,000 rupees a year. The agreement is void, the object of As promise, and the consideration for Bs promise, being in part unlawful.


Section 23. ICA1872 What considerations and objects are lawful, and what not.

 Section 23.   What considerations and objects are lawful, and what not. 

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The consideration or object of an agreement is lawful, unless—


it is forbidden by law1 ; or

is of such a nature that, if permitted, it would defeat the provisions of any law; or

is fraudulent ; or

involves or implies, injury to the person or property of another; or

the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.


Illustrations


(a) A agrees to sell his house to B for 10,000 rupees. Here Bs promise to pay the sum of 10,000 rupees is the consideration for As promise to sell the house, and As promise to sell the house is the consideration for Bs promise to pay the 10,000 rupees. These are lawful considerations.

(b) A promises to pay B 1,000 rupees at the end of six months, if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly. Here, the promise of each party is the consideration for the promise of the other party, and they are lawful considerations.

(c) A promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certain voyage. Here, As promise is the consideration for Bs payment and Bs payment is the consideration for As promise, and these are lawful considerations.

(d) A promises to maintain Bs child, and B promises to pay A 1,000 rupees yearly for the purpose. Here, the promise of each party is the consideration for the promise of the other party. They are lawful considerations.

(e) A, B and C enter into an agreement for the division among them of gains acquired or to be acquired, by them by fraud. The agreement is void, as its object is unlawful.

(f) A promises to obtain for B an employment in the public service and B promises to pay 1,000 rupees to A. The agreement is void, as the consideration for it is unlawful.

(g) A, being agent for a landed proprietor, agrees for money, without the knowledge of his principal, to obtain for B a lease of land belonging to his principal. The agreement between A and B is void. as it implies a fraud by concealment, by A, on his principal.

(h) A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is void, as its object is unlawful.

(i) As estate is sold for arrears of revenue under the provisions of an Act of the Legislature, by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser, and agrees to convey the estate to A upon receiving from him the price which B has paid. The agreement is void, as it renders the transaction, in effect, a purchase by the defaulter, and would so defeat the object of the law.

(j) A, who is Bs mukhtar, promises to exercise his influence, as such, with B in favour of C, and C promises to pay 1,000 rupees to A. The agreement is void, because it is immoral.

(k) A agrees to let her daughter to hire to B for concubinage. The agreement is void, because it is immoral, though the letting may not be punishable under the Indian Penal Code (45 of 1860).

1. See ss. 26, 27, 28 and 30, infra.


Section 22.ICA 1872 Contract caused by mistake of one party as to matter of fact.

 

Section 21. ICA 1872 Effect of mistakes as to law.

 Section 21.   Effect of mistakes as to law.

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A contract is not voidable because it was caused by a mistake as to any law in force in 1 India; but a mistake as to a law not in force in 1 India has the same effect as a mistake of fact.


2 * * * * *


Illustration


A and B make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Limitation; the contract is not voidable.

3 * * * * *

Section 20. ICA -1872 Agreement void where both parties are under mistake as to matter of fact

 Section 20.   Agreement void where both parties are under mistake as to matter of fact.

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Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.



Explanation.--An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.


Illustrations


(a) A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain, the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of the these facts. The agreement is void.

(b) A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.

(c) A, being entitled to an estate for the life of B, agrees to sell it to C. B was dead at the time of the agreement, but both parties were ignorant of the fact. The agreement is void.


Section 19A. ICA-1872 Power to set aside contract induced by undue influence.

 Section 19A.   Power to set aside contract induced by undue influence.

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1[19A. Power to set aside contract induced by undue influence.-- When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused.


Any such contract may be set aside either absolutely or, if the party who was entitled to avoid it has received any benefit thereunder, upon such terms and conditions as to the Court may seem just.


Illustrations


(a) As son has forged Bs name to a promissory note. B under threat of prosecuting As son, obtains a bond from A for the amount of the forged note. If B sues on this bond, the Court may set the bond aside.

(b) A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent. per month. The Court may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just.]


Section 19.ICA -1872 Voidability of agreements without free consent.

 


Section 18. "Misrepresentation" defined.

 

Section 17. ICA -1872 "Fraud" defined.

 


Section 16. ICA -1872 "Undue influence" defined.

 Section 16.   "Undue influence" defined.

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1[16. Undue influence defined.-- (1) A contract is said to be induced by "undue influence" where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.


(2) In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another--

(a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or

(b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress.

(3) Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall lie upon the person in a position to dominate the will of the other.

Nothing in this sub-section shall affect the provisions of section 111 of the Indian Evidence Act, 1872 (1 of 1872).


Illustrations


(a) A having advanced money to his son, B, during his minority, upon Bs coming of age obtains, by misuse of parental influence, a bond from B for a greater amount than the sum due in respect of the advance. A employs undue influence.

(b) A, a man enfeebled by disease or age, is induced, by Bs influence over him as his medical attendant, to agree to pay B an unreasonable sum for his professional services, B employs undue influence.

(c) A, being in debt to B, the money-lender of his village, contracts a fresh loan on terms which appear to be unconscionable. It lies on B to prove that the contract was not induced by undue influence.

(d) A applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. A accepts the loan on these terms. This is a transaction in the ordinary course of business, and the contract is not induced by undue influence.]


Section 15. ICA-1872 "Coercion" defined.

 

Section 14. ICA -1872 "Free consent" defined.

 Section 14.   "Free consent" defined.

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Consent is said to be free when it is not caused by--


(1) coercion, as defined in section 15, or

(2) undue influence, as defined in section 16, or

(3) fraud, as defined in section 17, or

(4) misrepresentation, as defined in section 18, or

(5) mistake, subject to the provisions of sections 20, 21 and 22.

Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.

Section 13. ICA -1872 "Consent" defined.

 


Section 12. What is a sound mind for the purposes of contracting.

 


Sec 11. ICA-1872 Who are competent to contract.

 

Section 10. What agreements are contracts.