contract law case study ppt

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[case brief] top 5 cases on the validity of contract.

I. BALFOUR v. BALFOUR

⮚ Citation: [1919] 2KB 571

⮚ Introduction: Landmark judgement on the intention to create a legal relationship as an essential element of contract.

⮚ Parties: Mr. Balfour & Mrs. Balfour

⮚ Brief facts: Mr. & Mrs. Balfour use to live in Ceylon (now Sri Lanka), a  happily married couple. They went on a vacation to England and during  their stay Mrs. Balfour was diagnosed with ‘Rheumatic Arthritis’. The  doctor advised her proper rest. Her health could deteriorate, with the  change in weather, therefore she stayed back in England whereas her  husband returned back to Ceylon. As Mr. Balfour promised to send her  £30 every month until she stayed back. He regularly made the due monthly  allowance as promised but subsequently, stopped sending the amount.  Mrs. Balfour sued him for the payment of monthly payments.

⮚ Issue(s): Was there a valid contract between Mr. Balfour & Mrs. Balfour? 

Justice Sargent held that the said contract between the husband & wife was  valid and binding as Mr. Balfour was under obligation to support his wife.  The prior monthly transfers were enough to form the basis of the contract  between Mr. & Mrs. Balfour and the consent of Mrs. Balfour to this  arrangement constituted a valid consideration. Mr. Balfour went to the  Court of Appeal against the judgment of the Division Bench.

⮚ Decision: The appellate court held that the arrangement between  Mrs and Mr Balfour was merely a social agreement and no a contract. a  domestic matter and Mr. Balfour had ‘no intention to create a legal  obligation’. The court also pointed out that, Though Mr. Balfour made a  promise to pay £30 per month and Mrs. Balfour agreed to it but there was  no intention to bound by legal consequences on behalf of Mr. Balfour.  The Court also held that such types of agreements can’t be a contract  because usually in such agreements between the spouse, either of the  parties do not intend to bound themselves by legal consequences.  Court also made the argument that if the courts will they’ll start to enforce  such intimate arrangements made between couples treating them as a legal  contract then the courts shall be flooded by with matrimonial disputes.

II. LALMAN SHUKLA v. GAURI DUTT

⮚ Citation: 1913 40 ALJ 489  

⮚ Introduction: Acceptance of the offer as an essential element of a valid  contract.  

⮚ Parties: Lalman Shukla & Gauri Dutt

⮚ Brief: Gauri Dutt’s nephew went missing. He therefore  sent all his servants in search of the absconding child, different places. One  of his servants, Lalman Shukla was sent to Haridwar from Cawnpore  (Kanpur) to search him, his travelling allowances and other expenses were  paid by the master Gauri Dutt. When he returned back to Kanpur after  getting succeeded in finding his master’s nephew, he was given two  sovereigns along with Rs. 20. During the period while everyone was  searching master’s nephew and the plaintiff was also searching him,  defendant circulated pamphlets stating that whosoever finds the boy gets a  reward of Rs. 501. The plaintiff had no idea about the reward and did not  asked for anything further and continued his service for six months. After  that, he filed a suit for the recovery of reward from his master, he claimed  for Rs. 499 out of the money that was offered in the handbill. Then, the  lower court dismissed the plaintiff’s plea.

⮚ Issue(s):  

1. Does the arrangement amounts to a valid contract?

2. Is Mr. Lalman entitled to the reward amount?

3. Decision of the subordinate court was appropriate?

⮚ Decision: Court held that, none of the essential ingredients required to for  a for an agreement to be enforceable were not fulfilled in the situation. The  primary need for an agreement to be enforceable is the ‘knowledge and  assent of the particular offer. Here, he was not aware about the offer and  had no assent about the act. Thus, it can be concluded that acceptance is  the essence to contract and the plaintiff was just fulfilling his obligation by  searching the missing boy.

Also, this is a leading case wherein the important principle of General  Offer was laid down. In such case, a contract could be made only  with the person who has the knowledge about the offer and accepts it by  acting accordingly to fulfil the conditions mentioned in the offer.

III. HARVEY v. FACEY

⮚ Citation: 1893 A.C. 552

⮚ Introduction: invitation to an offer is not an offer  

⮚ Parties: Facey & Harvey  

⮚ Brief facts: Mr. Facey was a real estate owner who was interested to sell  his property which was in Jamaica. Harvey who was interested in buying  that property sent a telegraph asking he would sell his property to  Harvey on lowest cash price to be paid. Replying to his telegraph  Facey replied to his second question only. Facey’s telegraph read, lowest  price for Bumper Hall Pen is £900. To which Harvey later replied, he  agreed to buy Bumper Hall Pen which was asked for and he also asked  Facey to send him property deed so that he could get early possession.  Facey denied to sell his property to Harvey at that price. Later, Harvey  filed a case in the court of appeal, Harvey won the case. Facey who was  unhappy appealed against the decision and case went to Privy Council  which upheld the trial court’s decision.

⮚ Issue(s): Was there any offer from Facey to sell the property for £900?

⮚ Decision: It was held by the Privy Council that; it would be a contract only  if Facey had replied to Harvey’s third telegraph. Harvey took Facey’s  response to his question as an offer to sell at the named price by him.  There was no commitment to sell the property because the offer which was  made by the Harvey by replying to the invitation of an offer was not  accepted. Thus, there was no contract between the two.  

IV. MOHORI BIBEE v. DHARMODAS GHOSE  

⮚ Citation: 1903 30 Cal 539

⮚ Introduction: competency or Ccapacity of the parties to contract /  Minor’s contract

⮚ Parties involved: Dharmodas Ghose & Mohori Bibee

⮚ Brief facts: Plaintiff, Dharmodas Ghose was in need of money  therefore, he pledged his property and asked for loan of Rs. 20,000 from  the moneylender Brahmo Dutt. The debt amount given was less than Rs.  20,000. Brahmo Dutt who was acting as attorney at that time on the  behalf of the moneylender, knew that Dharmodas Ghose was a minor.  Plaintiff filed a suit against Brahmo Dutt stating that the mortgage deed  should be null and void because he was a minor at the time of contract and  hence, it should be cancelled. Later, Brahmo Dutt passed away and the  appeal was prosecuted by his executors. And it was contended by the  defendant that plaintiff should not be excused as he misrepresented his age  to him. Even if the deed is void, the debt that was advanced to him i.e., Rs.  10,500 should be repaid.

1. Was the mortgage deed void?

2. Deed signed by defendant was voidable or not?

3.Was the defendant entitled liable to receive the mortgage money?

⮚ Decision: The Privy Council held that the; person who mortgaged the  property was infant at the time of execution.  So, the contract or mortgage deed which was made between the plaintiff  and the defendant was not merely voidable but it was void. It also held that  any contract with a minor or an infant is ‘void ab-initio’. Since minors are  incompetent to contract hence, such contracts are void and  invalid in the eyes of law. The minor is not obliged to pay back the amount  that was advanced to him as he was not bound by the promise that was  executed in contract.

Minor is a person who has not attained or is below the age of  18 years.

And any contract entered into with a minor shall be  be null and void (void ab initio) owing to his incapacity. Dealings done by the minors without the knowledge  and consent of their custodians or parents shall not be liable to them.  

V. RAFFELS v. WICHELHAUS

⮚ Citation: 2 H. & C. 906

⮚ Introduction: consensus ad idem- “meeting of minds”

⮚ Parties: Raffels & Wichelhaus

⮚ Brief facts: Mr. Raffels and Mr. Whichelhaus had a contract that Mr.  Raffels would send him 125 bales of Surat cotton via a ship named  peerless from Bombay. But there were two ships with the name peerless.  The same name of two different ships mislead them and they agreed upon  two different ships in their minds, which means there was no meeting of  mind while binding the contract. When the ship containing cotton reached  Liverpool in December, Wichelhaus refused to receive the shipment and  to pay for it. In his understanding the consignment was late as he mis-  understood that the ship earmarked with nomenclature as some other  which was supposed to reach in the month of October. Both of them had  mis-understanding in reference to ship names. Later, due to this delay  according the defendant who did not received the order was sued for the  breach of contract by the plaintiff (Raffels).

⮚ Issue(s): Was there an enforceable contract between the parties?  

⮚ Decision: The court held that the contract was vague and hence, it was not  an enforceable contract. For binding of a contract, there should be meeting  of minds between the parties.In this case, there was no consensus  ad-idem. At the time they had entered into this contract, there  was ambiguity on the issue as to which ship shall carry the cotton to be  delivered. Since, it was a well-documented deed and not a fraud and  hence, it should not be interrupted by extrinsic evidence.

This case briefs has been prepared by Ms. Urvi Yadav, who was an intern at MyLawman & edited by Ms. Samreen Ahmed, Research Assistant, ARIL, MyLawman.

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Contract Law - Notes, Case Laws And Study Material

Explore comprehensive contract law notes, insightful case laws, and valuable study material on legal bites..

Contract Law is a form of civil law. The chief component of the contract law in India is the Indian Contract Act , which was enacted in 1872 and enforced on September 1, 1872 .

From arbitration enthusiasts to budding sports lawyers, the knowledge of contract law is indispensable to every law student. Legal Bites has created the most comprehensive course on Contract Law you'll find online. The fifteen modules of the study material not only cover the ins and outs of the Indian Contract Act but also provide an excellent analysis of key concepts like bailment, partnership, breach of contract, indemnity, etc.

Additionally, a 10-part series of important questions based on the syllabus of major university-level and competitive exams has been created to help students master the nuances of contract law.

Important articles and study material on Contract Law – Click on the links to Read:

• Historical evolution of contract law in India
• Introduction and Nature of Indian Contract Act, 1872
• 1000+ Detailed Questions MCQ Test Series for Competitions (Redirect to Law Aspirants)
• Meaning of contract and other definitions as per Indian Contract Act, 1872
• Types of Contract
• Essentials of a Valid Contract under The Indian Contract Act
• 8 Contract Law Doctrines: You Must Know
• Landmark Cases Related to Contract Law

Important Books and Practice Tests (Must Have)

• Avtar Singh's Law of Contract & Specific Relief
• Offer and Acceptance (Overview)
• Offer- Types and Invitation to Treat
• Revocation- Meaning and Modes
• Capacity to Contract
• Consideration Under the Indian Contract Act 1872
• Exception to the Rule of Consideration
• Lawfulness of Consideration
• The Lawfulness Of Object And Consideration
• Privity of Contract and Consideration
• Voidable agreements
• Void agreements
• Contingent Contracts: Concept and Scope
• Formation of contract by Click Wrap, Shrink Wrap and Via Exchange of E-Mails
• Jurisdictional Issues
• UNCITRAL Model of Law on Electronic Commerce 1996

Module VI: Performance Of Contract And Discharge

• Contracts which must be performed
• Time and Place of Performance
• Quasi Contracts And Claims for Compensation
• Obligation of Person Enjoying the Benefit of a Non-gratuitous Act
• Responsibility of the Finder of Goods
• Consequences Of Breach Of Contract
• Doctrine of Frustration | Explained

Module VIII

• Need for indemnity to facilitate commercial transactions
• Insurance Contract and Indemnity in India
• Rights of Indemnity-Holder
• Nature of Indemnity Clauses
• Guarantee: Concept, Definition and Basic Essentials for a valid guarantee contrac t
• Nature, Duration & Termination of Surety's Liability
• Various judicial interpretations to protect the surety
• Co-Surety and manner of sharing liabilities and rights
• Analysis of Co-extensive Liability of Surety with that of Principal Debtor
• Bailment: Concept And Definition
• Bailment contracts in day-to-day life
• Duties of a Bailee and a Bailor
• Concept/Definition of Pledge
• Pledge & Bailment : Difference & Comparison
• Rights of the Pawner & Pawnee
• Right of sale of the pledged goods
• Concept/Definition of Agency
• Difference Between Servant And Agent
• Various Methods of Creation of Agency
• Liability of the principal for acts of the agent including misconduct & tort

Module XIII: Specific Relief Act

• Introduction to the Specific Relief Act
• Recovery of Possession of Property
• Specific Performance of Contracts
• Cancellation of Instruments
• Declaratory Decrees
• Preventive Relief

Module XIV: Sale of Goods Act

• Formation of Contract of Sale: Everything you Need to Know
• Conditions and Warranties under the Sale of Goods Act
• Effects of the Contract of Sale: Explained with Relevant Provisions
• Rights of Unpaid Seller | Explained

Module XV: Partnership Act

• Partnership: Concept, Definition and Essentials
• Partnership & Private Limited Company: Advantages & Disadvantages
• Properties of Firm
• Formation of Partnership | Indian Partnership Act, 1932
• Test of Partnership: Explanation, Components & Case Laws
• Registration of Firms and the Effect of non-registration
• Rights and Duties of Partners
• Admission & Outgoing of Partners
• Registration & Dissolution of Partnership

Important Cases

• Balfour v. Balfour (1919)
• Kedarnath v. Gorie Mohammad (1887)
• Mohori Bibee v. Dharmodas Ghose (1903)
• Carlill v. Carbolic Smoke Ball Co. (1892)
• Chacko v. Mahadevan (2007)

Leslie Ltd. v. Sheill, (1914)

Other articles

Doctrine of Restitution

All you need to know about Contract of Indemnity

• Doctrine of Privity
• Fraud, Misrepresentation and Mistake under the Indian Contract Act
• Promissory Estoppel – Meaning and Explanation
• Surety's Liability: Judicial Interpretation
• A Brief Analysis Of Wagering Agreements
• Remedies For The Breach Of Contract
• Remedies available under the Specific Relief Act, 1963

Primer on E-Contracts

Law of Contract Mains Questions Series: Important Questions for Judiciary, APO & University Exams

• Law of Contract Mains Questions Series Part-I
• Law of Contract Mains Questions Series Part-II
• Law of Contract Mains Questions Series Part-III
• Law of Contract Mains Questions Series Part-IV
• Law of Contract Mains Questions Series Part-V
• Law of Contract Mains Questions Series Part-VI
• Law of Contract Mains Questions Series Part-VII
• Law of Contract Mains Questions Series Part-VIII
• Law of Contract Mains Questions Series Part-IX
• Law of Contract Mains Questions Series Part-X

Law of Contract MCQs for Law Aspirants: Solved High-Quality MCQs for Judiciary Prelims Your valuable feedback in the form of comments or any desired inputs are encouraged and always welcome. Every contribution toward a goal is valuable, regardless of how small it may be.

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Contract Law

Notes, cases, and materials on contract law, topic notes.

Past Papers

Back to Subjects | Back to Law

Introduction to contract law

Forming the agreement

Certainty and clarity

Intention to create legal relations

Consideration

The doctrine of promissory estoppel

Privity of contract

Terms of a contract

Exclusion clauses

Duress, undue influence & unconscionable bargains

Misrepresentation

Frustration

General cases

Past Papers & Questions

1. There is in my view a real danger that if a general principle of good faith were established it would be invoked as often to undermine as to support the terms in which the parties have reached agreement’, per LJ Moore-Bick in MSC Mediterranean Shipping Co v Cottonex Anstalt [2016] EWCA Civ 789, at [45]. Critically discuss

2. ‘The foundation of consideration is unconscionability and promissory/proprietary estoppel is the best example of this. It would be better to just call the beast by its name and allow the courts to assess whether the deal was unconscionable or not.’ Critically discuss.

3. “The English courts’ approach to the doctrine of consideration is artificial since it has very little to do with the parties’ agreement. A change in the law is imperative to ensure clarity in the law and to stop a slavish adherence to the neo-classical theory of contract law.” Critically discuss.

4. To what extent is “business common sense” the fundamental approach of the courts in resolving ambiguities and ascertaining the meaning of contractual terms and statements?

5. Critically discuss the impact of the Consumer Rights Act 2015 on the regulation of ‘unfair terms’ in contracts.

The University of Retexe owns a painting titled ‘the scales out of balance’ which was given to it by a grateful graduate in 1955. The University has decided that nobody really looks at the piece and therefore wants to sell it. They contact a former student, Stefan, by letter:

‘We are considering selling the painting you knew and loved when you were a student here, ‘the scales out of balance’, as long as you are willing to pay £2m for it. The sale must be within the next two months. As you will remember it was included in the BBC television series ‘the art of Hogarth’ and they considered it to be one of his best pieces. Would you be interested in purchasing this Hogarth?’

Stefan immediately replies that the gallery he owns would be happy to pay that price for the Hogarth.

The University does not reply but the accountant removes the Hogarth from the list of art pieces to be insured. Shortly after Stefan succeeds in selling the painting on to an American art gallery for £5m. He contacts the University and leaves a message:

‘I hope you don’t mind but I have managed to sell the painting to a fantastic gallery.’ A few days later the university representative, Tammy, calls Stefan back and comments that she is glad they have found a good home for the painting and asks when Stefan would like the painting to be delivered.

Stefan is about to call back when he finds out from another dealer that the Hogarth, due to the time when it was donated, must have been a forgery. The discovery was made by accident last week when a gallery moved other Hogarths to a new building.

Advise Stefan, who does not want the painting anymore.

Ugo, an architect, earns a little extra money as a self-employed author of fiction. He has previously used an accountant in his town who has recently retired.

For this year’s tax return, due in January 2018, Ugo decides to use Valentina’s online tax return service. The website offers ‘a complete preparation and filing service for your income tax’. The website offers ‘complete peace of mind’. The first page of the website asks for the income. The page states that the customer ‘must submit all statements by post’ and, provided that she pays the £200 fee, they will then send her the completed tax return back.

On the very first page of the website there is a button titled ‘what we promise’. If the customer clicks on this it takes the customer to another website with terms and conditions, which include the following:

• What we promise: We undertake to calculate the tax you must pay from the figures you give us when you tell us your income. We take no responsibility for checking that you have entered the amounts correctly
• Liability. We are not responsible for any penalty imposed on you because your income is incorrectly stated; or because your return is not submitted on time unless we are shown to have acted intentionally or with gross negligence.

This button only appears on the first page. Ugo does not see or read the terms and conditions before sending in the requested information. Ugo does not notice that he has entered the amount he has earned as £2,500 rather than £25,000. The correct amount is clearly visible from the statements but Valentina does not notice the mistake. She sends the tax return back to Ugo, who signs it without checking.

The tax authorities notice the mistake and fine Ugo a total of £500.

Advise Ugo of any rights he may have against Valentina.

Trista and Kevin have been business partners of a local garage since 2010 valued at about £200,000, with Trista owning a 25% share in the business (worth approximately £50,000). In March 2015, Trista approached Kevin about the possibility of buying her out of the business to enable Trista sort out her own personal problems. When Kevin refused, Trista threatened to do such shoddy work at the garage that the business would lose clients and eventually become financially unviable.

Initially, Kevin refused Trista’s proposal and told her that, while sympathetic with her plight, he just did not have access to the necessary funds. During the next several months, Trista did as she threatened and her work was so slow and sloppy that the business began to lose customers.

Fearing that he would lose the business completely, Kevin approached his new husband, Gamu, about the possibly of putting up their jointly-owned £100,000 home as security on a £50,000 bank loan, so that Kevin could buy Trista out of the business. Kevin told Gamu that he felt he had no choice but to get the loan if his business were to survive. Gamu agreed and signed the necessary documents at the bank in the presence of Kevin. Kevin, in turn, entered into contract with Trista in October 2015 to buy her out of the business for £50,000.

By February 2016, as a result of the damage to the business’ reputation after Trista’s behaviour, Kevin had lost customers and was struggling to pay his bills, including the payments on the bank loan. In May 2016, Kevin was informed that the bank now intended to take possession of his and Gamu’s house.

Advise Kevin and Gamu on whether they have any rights against Trista and the bank.

Phoebe, who won £1 million from a lottery, decided to take her parents, Monica and Chandler, and her best friends, Jahangir and Ramona, on “luxury cruising” to thank them for being there for her. Phoebe remembered seeing the following Facebook advertisement by Superb Ltd:

“Get the experience of a lifetime via our two weeks cruise; Our luxury ship will be stopping at exotic places; Enjoy five-star hotels; Fine dining all the time; Our crew and passengers are special and the nicest; £1000 per person; Discounts for groups of five or more.”

Phoebe phoned Superb’s office and asked whether “that Facebook deal is still on” and got a confirmation. She later went to Superb’s office and signed a contract after paying a discounted price of £4000 for five persons.

Phoebe, her parents and her friends left the ship after two days due to the following facts:

• The ship, Konkordium, was an ugly-looking converted fishing boat lacking some basic facilities normally seen in cruise ships. Konkordium was only going round the southeast coast of England.
• Fine dining was not available on Konkordium and passengers were often given sandwiches. The food made Phoebe’s parents quite ill and Phoebe, Jahangir and Ramona suffered varying levels of discomfort from the food.
• Konkordium’s crew were swearing and shouting at passengers at will. One pushed Jahangir for no reason.
• Other passengers on Konkordium were groups of students who were always drunk, swearing, shouting and playing loud music. Some students whistled whenever they saw Ramona. The students paid £100 per person and £80 for groups of five.

Advise Phoebe, Monica, Chandler, Jahangir and Ramona on whether they have any legal claims in contract law.

Tara wanted to extend her house. Accordingly she engaged an architect to draw up some plans. Subsequently she placed a notice in her local newspaper requesting tenders in respect of the work to be undertaken. The notice stated that the deadline for the submission of tenders was noon on 4 March and the contract would be awarded to the person submitting the lowest tender. The notice also stated that further details, including plans, could be obtained from Tara at an address provided but did not state the method for submitting tenders.

Eoin, Belinda, Siobhan and David all requested further information and subsequently submitted tenders. Eoin submitted a tender of £20,000 by e-mail. Belinda submitted a tender of £15,000 by post. Siobhan submitted a tender of “£100 lower than any other tender received” by post. David submitted a tender of £10,000 by e-mail. Tara decided not to accept David’s tender as she had heard worrying rumours about the standard of David’s work. Instead she decided to accept Siobhan’s tender. David and Belinda are very angry about this and are threatening legal action. Moreover it appears that Tara did not consider Eoin’s tender at all as there was a problem with her computer server.

Advise the parties.

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Indian Contract Act 1872 Case Study PPT: Legal Analysis & Examples

The fascinating world of indian contract act 1872 case study ppt.

When it comes to the Indian Contract Act 1872, there are endless possibilities for case studies and examples that showcase the intricacies of contract law in India. One particularly interesting way to study and understand this topic is through the use of PowerPoint presentations (PPT). In this blog post, we will delve into the world of Indian Contract Act 1872 case study PPTs, and explore the significance of this approach in legal education and practice.

Why Indian Contract Act 1872 Case Study PPTs are Valuable

Before we dive into specific case studies, let`s first discuss why using PPTs for contract law case studies is so valuable. PPTs can present information in a visually appealing and organized manner, making it easier for both students and professionals to grasp complex legal concepts. Additionally, the use of visual aids such as charts, tables, and diagrams can enhance comprehension and retention of information.

Case Study: Breach of Contract in the Indian Context

Let`s consider a hypothetical case study of a breach of contract in the Indian context. Imagine a scenario where Party A enters into a contract with Party B to deliver a certain quantity of goods by a specified date. However, Party B fails fulfill obligations contract, resulting Financial losses for Party A.

Case Details

Legal analysis.

Under the Indian Contract Act 1872, the failure of Party B to deliver the goods as per the contract constitutes a breach of contract. Party A has the right to seek remedies for the breach, such as claiming compensation for the financial losses incurred. In this case, the principles of contract law, as outlined in the Indian Contract Act 1872, will be invoked to resolve the dispute between the parties.

Indian Contract Act 1872 case study PPTs offer a dynamic and engaging way to explore the nuances of contract law in India. Through visually compelling presentations, complex legal concepts can be presented in a manner that is accessible and understandable. By using real-life case studies, such as the breach of contract example discussed above, legal professionals and students can gain practical insights into the application of the Indian Contract Act 1872 in the business world.

Unraveling the Intricacies of the Indian Contract Act 1872: A Case Study

Professional legal contract.

This contract is entered into by and between the parties involved in the Indian Contract Act 1872 case study PPT.

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Contract Law Cases: 21 Leading Case on the Law of Contract

• Post author: Edeh Samuel Chukwuemeka ACMC
• Post published: November 11, 2019
• Post category: Law Reporting

In today’s post, I will be sharing a list of some of the leading cases on contract law. This is basically to help scholars, lawyers and law students all of the world, find contract law cases so as to enable them consolidate their legal arguments, articles and points in law examinations. If you have been searching for cases to fortify your points in any matter that concerns contract, then search no further. Trust me; this article contains almost all the leading cases on the law of contract.

Nonetheless, before I move to the crux of this article, I would like to share some of basic information about the law of contract with you. This is also very pertinent because it will help you to understand the cases that will be mentioned here wholesomely. So what is a contract?

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Table of Contents

What is a contract?

Contract has been given different definitions by different people. According to Sir Fredrick Pollock , A contract is a promise or set of promises which the law will efforce. More so, the American Law Institute gave an elaborate definition in their paper titled “ Restatement of American Law: Contracts ” when they defined contract as “ a promise or set of promises, the breach of which the law gives a remedy, or performance of which the law in some way recognizes as a duty.” 

In my view, “a contact is an agreement giving rise to obligations which are enforced or recognized by law”. Conversely, it should be noted that while every contract is ultimately an agreement, it is not every agreement that is a contract.

Characteristics of a contract

Below are some of the characteristics of a binding contract:

• There must be an offer and acceptance (the agreement)
• There must be an intention to create legal relations
• There is a requirement of written formalities in some cases
• There must be consideration (Except if the agreement is under seal)
• The parties must also have the capacity to contact
• There must be genuineness of consent by the parties to the terms of the contract
• The contract must not be contrary to public policy

Also read : Fundamental human rights in Nigerian Constitution and cases

Classification of Contract

Basically, contract is classified into Simple contract or Formal contract. The two classifications of contract will be explained explicitly below:

Simple contract:

A simple contract is also called an informal contract. It is a contract, whether writen or oral, which is not under seal. It can also be implied from the conduct of parties. Simple contract are not binding except there is consideration. In a simple or informal contract, only a party who has furnished consideration can bring an action to enforce the contract.

Formal contract:

On the other hand, a formal contract is a contract which is reduced to writing, singed by parties contracting and impressed with a seal. It is also called a specialty contact or a deed. The basic features of a formal contract is to that it must be signed, sealed and delivered. These actions constitute the execution of a deed.

Now that you known what a contract is, the various types of contract and the characteristics of a contract, we will now see some of the leading cases in contract law.

Contact law cases

Below are some of the cases in the law of contract:

Carlill v Carbolic Smoke Ball Co

Andrews v hopkinson, fisher v bell, spencer v harding, central london property trust ltd v high trees house ltd, brodgen v metropolitan railway co., lampleigh v braithwaite, roscolar v thomas, stevenson v mclean, eastwood v kenyon, white v bluet, combe v combe, dela bere v pearson, read v dean, bournemouth athletic football club ltd v manchester united football club, tinn v hoffman & co, couturier v hastie.

• Dunlop Pneumatic Tyre Co Ltd v Selfridge

Griffith v Brymer

Darkin v lee, startup v macdonald.

Yeah! Those are some of the leading cases in contract law. Nevertheless, as we continue, will be sharing with you the case summary of each of the cases mentioned in the list above with their citations. I enjoin you to read painstakingly so that you will achieve your purpose for reading this work. Now, below is the case summary of the leading cases in the law of contract.

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Citation : [1893] 1 QB 256

The case of Carlill v Carbolic Smoke Ball Co is a good illustration of a unilateral contract. In this case, the defendant were proprietors of a medical preparation called “ The Carbolic Smoke Ball” . They advertised in various newspapers and magazines offering to pay €100 to any person who contracted influenza after using the ball three times a day for two weeks.

They added that they had deposited €1,000 at the Alliance Bank, Regent Street, to show their sincerity in the matter. The plaintiff, a lady, used the ball as was advertised and was attacked by influenza. She sued for €100 and the company agured that there was no intention to create legal relations.

The court held in favor of the plaintiff and said that the fact that €1,000 was deposited at the Alliance Bank, shows that there was an intention to create legal relations.

Citation: [1956] 3 All ER 422

The case of Andrews v Hopkinson is one of the contract cases that explains where a collateral contract will fail with the main contract. Apparently, a collateral contract is a preliminary contract which is usually oral and forms the reason or the inducement for the making of another related contract.

In the case of Andrews v Hopkinson, the collateral contract failed with the main contract. Here, a dealer said to the plaintiff, “ It is a nice little bus, I would stake my life on it. You will have no trouble with it. ” The plaintiff entered into a written hire-purchase contract with a finance company. The car was not roadworthy. The court held that the dealer was liable.

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Citation: [1960] 3 All ER 731

The case of Fisher v Bell is a contract case that is usually used to explain the difference between an invitation to treat and an offer. In this case, the respondent, shopkeeper, displayed a knife with a price tag. He was charged for offering to sale a knife contrary to section 1(1) of the Restriction of Offensive Weapons Act 1959 .

The question that arose for determination in court was whether the display of this knife constituted an offer for sale within the meaning in the Restriction of Offensive Weapons Act 1959. It was held by the Court of Appeal that the display was an invitation to offer and so the shopkeeper was not liable.

Citation: [1870] LR 5 CP 561

In Spencer v Harding, the defendant sent out circulars inviting tenders to buy stock. The Plaintiff claimed that the circular was an offer to sell the stock to the highest bidder and that they had sent the highest bid which the plaintiff had refused to accept.

The court held that the circular was an invitation to treat and not an offer. Wiles J said thus: “ It is a mere attempt to ascertain whether an offer can be obtained within such a margin as the seller are willing to accept.”

Citation : [1947] KB 130

The case of Central London Property Trust Ltd v High Trees House Ltd is also one of the leading cases in the law of contract. This case changed the former rule of law in pinnel’s case. The case is usually referred to as the High Trees case or principle of Equitable Estoppel.

In Central London Property Trust Ltd v High Trees House Ltd, the plaintiff least a block of flat to the defendant at a rent of €2,500 per annum in September 1939. In January 1940 the plaintiff agreed in writing to reduce the rent by half because of war condition which had caused many vacancies in the flats. No express limit was set for the operation of this reduction.

From 1940 to 1945 the defendant paid the reduced rent. In 1945, the flats became fully occupied again. The plaintiff’s company then claimed the full rent, suing for rent at the ordinary rate for the last two quarters of 1945.

It was held by Lord Denning that, as agreement for the reduction of rent had been acted upon by the defendants, the plaintiff were estopped in equity from claiming the full rent from 1941 until early 1945 when the flats were fully let.

Also read: Defences to strict liability in tort: 5 Defences A Defendant Can claim

Citation: [1877] 2 AC 666

This is one of the contract cases that is offen cited to backup the rule that a contract can be made by conduct. In this case, Brodgen had for many year supplied the defendant company with coal without a formal contract. Brodgen then suggested that the relationship be regularised through a formal contract. Metropolitan’s agent sent a draft agreement to Brodgen who inserted an Arbitrator’s name in the space provided for it, signed it and wrote it away in his drawer and nothing further was done to complete its execution.

Both parties acted on the strength of the terms contained in the draft, supplying and paying for the coal in accordance with its clauses until a dispute arose and Brodgen denied that any binding contract existed between them. The house of Lord’s held that a contract arisen by conduct.

Citation : [1615] Hob 105

In this case, the defendant, Braithwaite, had killed Patrick Mahume. He then requested the plaintiff to do all he could to obtain a royal pardon for him from the king. To this end, the plaintiff exerted himself and undertook a lot of journeys to and from London, incurring certain expenses.

He succeeded in obtaining the pardon and the defendant promised to pay him the sume of €100 for his trouble and expenses. It was held that the plaintiff was entitled to the sum as his services were procured at the defendant’s previous request an in circumstances in which it was responsible to expect that payment would be made for the services. Accordingly, there was consideration for the defendant’s promise.

Also read : Nigerian leading cases on frustration of contract

Citation: [1842] 2QB 234

To wholesomely discuss past consideration as a topic in the law of contract, the case of Roscolar v Thomas must be mentioned. In this case, the plaintiff bought a horse from the defendant. After sometime, the defendant promised the plaintiff that it was a sound horse, free from vice. The horse was in fact a vicious horse. The plaintiff sued the defendant for breach of promise.

It was held that the action will fail. If the promise had been given at the time of the sale, it would have been supported by consideration, but since it was given after the sales had taken place, the consideration which the plaintiff furnished was past and he had furnished no new consideration for the defendant’s promise.

Citation: [1880] 5 QBD 346

In Stevenson v McLean, the defendant offered on a Sunday to sell the plaintiff some quantity of iron. The offer was left open till close of business on Monday. On Monday, the plaintiff telegraphed ro ask for information. On that same Monday, at 10:00am, the defendant received a telegram but didn’t reply it. On that same day, the plaintiff accepted the original offer at 1.34pm. At 1.25pm the defendant revoked the offer by telegram. At 1.46pm the plaintiff received telegram of revocation.

On hearing the matter, the court held that the plaintiff first telegram was not a counter offer but a mere inquiry, so that the offer was still open when the plaintiff accepted it. The plaintiff had accepted the offer before the defendant’s revocation was communicated to him.

Citation: [1840] 11 Ad & El 438

Eastwood v Kenyon is the case in contract that is used to explain that moral obligation does not amount to consideration. In this case, the death of John Sutcliff left his infant daughter as his sole heiress. The plaintiff, as the girl’s guardian, spent money on her education and for the benefit of the estate, and the girl, when she came of age, promised ro reimburse him.

She then married the defendant, who also promised to pay. The plaintiff sued the plaintiff on this promise and the court dismissed the action, reiterating the rule that moral obligation does not amount to consideration. The court noted that if the notion is accepted it would destroy the requirement of consideration as the law requires an additional element to the defendant’s promise. That element is consideration and it cannot be a mere moral obligation.

Citation: [1853] 23 LJ Ex 36

The case of White v Bluet explains the position that consideration in contract need not to be adequate by sufficient. In this case, a sun owned his father a sum of money. Subsequently, the sun harassed his father with frequent complaints about the way his father distributed his wealth among his children which was unfavorable to him.

The son then alleged that his father promised him that if he would stop complaining, he (the father) would discharge him from the debt and he stopped. The question before the court was whether this action of the son constituted consideration for the father’s promise. The court held that it did not because:

The father had a right to distribute his property in any manner he liked and so the son had no right to complain in the first place.

The son had no right to complain; thus is abstaining from doing what he had no right to do constituted no consideration for the father’s promise.

Citation : [1951] 2 KB 213

This is a contract case where the court held that consideration is an essential element of a binding contract. Here, a wife started proceedings against the husband for divorce and she obtained a decree nisi against the husband. The husband then promised to pay her an annual allowance of €100 free of tax as a permanent maintenance for her.

After the decree nisi was made absolute, the husband never kept his promise. Thereupon the wife brought an action against him to make him pay the money. The court held that she didn’t offer consideration for the husband’s promise.

Citation : [1908] 1 KB 280

In this case, the defendant placed an advertisement in the newspaper to give financial advice to readers. The plaintiff wrote, asking for the name of a good stockbroker. The editor negligently recommended someone who was an undischarged bankrupt.

On the strength of the editor’s advice, the plaintiff sent some money to the broker, who misappropriated it. The plaintiff brought an action in court seeking to recover his money from the the newspaper. The issue in court was whether the plaintiff furnished any consideration.

The court considered that many people bought newspaper because of that publication. It further held that the plaintiff had furnished consideration for the contract. The defendant could and did benefit from the plaintiff buying the newspaper and the plaintiff had also consented to the publication of his question in the defendant’s newspaper if the defendants wished to do so.

Citation: [1949] 1 KB 188

In the case of Read v Dean, the plaintiff hired the defendant’s moto launch for a holiday with his family on the river Thames. Two hours after he had set sail, the launch caught fire.

The firefighting equipment provided in the launch was out of order and the plaintiff suffered serious injuries and lost all his belongings on board. It was held that there must be implied into the contract of hire an undertaking by the defendant to make the launch as fit for the purpose of the hiring as reasonable care could make it, and that the defendant was therefore liable.

Citation: Vol Xi (2) Student Law Report 22

The case of Bournemouth Athletic Football Club Ltd v Manchester United Football Club is another popular case in the law of contract. In this case, a transfer agreement was made between the two football clubs. Under it, a footballer was to be transferred from Bournemouth to Manchester united for €194,445 in addition, a further sum of €27,777 was to be paid to Bournmouth if the footballer scored 20 goals in the first-team competitive matches. From October to December 1972, the football scored 4 goals in 11 matches. In December, Manchester United appointed a new manager who re-organised the team.

As a result, the footballer was transferred in early 1973 to Westham United Football club for €170,000. The plaintiff argued that the contract of the defendant in transferring the footballer was in Breach of the contract because there was an implied term in the contract that the footballer was entitled to a reasonable opportunity to score the goals. The court of appeal held that such term must be implied in order to give business efficacy to a contract.

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Citation: [1873] 29 LT 271

The court in Tinn v Hoffman & Co held that a cross-offer does not constitute a contract.

The facts of the case are as follows: the defendant wrote to the plaintiff offering to sell him 800 tons of iron at 69s per ton. The plaintiff wrote to the defendant, on the same day offering to buy 800 tons of iron at 69s per ton. The letters crossed in the post and the court held that there was no contract.

Citation: [1856] 5 HLC 673

This is the leading contract law case that stipulates the position of the law where there is a mistake as to the existence of the subject matter of the contract. In Couturier v Hastie, a man bought a cargo of corn which he and the seller thought at the time of the contract, to be in transit from Salonica to England, but which, unknown to them had become fermented and had already been sold by the master of the ship to a Tunis. It was held that the contract was void and the buyer not liable for the price of the cargo.

In the words of Lord Cranworth , “ The contract plainly imports that there was something which was to be sold at the time of the contract and something to be purchased. No such thing existing; I think the Court of Exchequer Chamber has come to the only reasonable conclusion upon it . ..”

Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd

Citation: [1915] AC 847

This is one of the leading contract cases that is associated with the principle of privity of contract. The principle states that only a party to a contract can enjoy right or suffer burdens partaining to the contract.

In Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd, the plaintiff sold tyres to a certain dealer on the understanding that he would not re-sell below a certain price and that in the event of a sale to customers the dealer would extract the same promise from them.

The dealer sole the tyres to Selfridge who agreed to observe the restrictions and to pay Dunlop €5 for each Tyre they sold below the restricted price. Selfridge in fact sold the tyres below the restricted price to a customer and Dunlop brought an action against them to enforce the promise to pay €5 per tyre, for each breach.

It was held that while Selfridge had committed to breach the contract between him and the dealer, Dunlop was not a party to this contract and had furnished no consideration for the defendant’s promise.

Citation: [1903] 19 TLR 434

This is one of the cases under Mistake as a topic in contract law. In Griffith v Brymer, a contract was made for the hire of a room on 26 June 1902, the day fixed for the coronation of King Edward VII, for the purpose of viewing the coronation procession.

At the time the contract was made, it was unknown to the parties, the decision to postpone the coronation had already been taken. Since the contract was merely for the hire of the room on 26 June to view the coronation procession, performance was impossible. The contract was held to be void.

Must read : The case of Mojekwu v Mojekwu: Case Summary

Citation: [1916] 1 KB 566.

This contract case explains the principle that where a party who performed his obligation defectively but substantially can sue for the contract price, but he will be liable to have deducted from the price the cost of making good the deficiency.

In Darkin v Lee, the plaintiff contracted to carry out repairs on the defendant’s house. He carried out the repairs but the work was not done in accordance with the contact’s specification. It was held that the plaintiff was entitled to be paid the agreed sum subject to a deductive equal to the cost of putting the defect right.

Citation: [1843] 6 M & G 593.

The rule of law in Startup v Macdonald is that; where the obligation under a contract is to deliver goods or render services, tender of such goods and services which is refused, discharges the party making the tender from any further obligation and enables him to sue for a breach of contract.

In Startup v Macdonald, the plaintiff agreed to sell 10 tonnes of oil to the defendant within the last 14 days of March. Pursuant to this agreement, the plaintiff delivered the oil to the defendant at 8:30pm on 31 March, a Saturday, but the defendant refused to accept the delivery because of the lateness of the hour.

It was held that the plaintiff made a valid tender of the goods and therefore discharged his obligations under the contract and the defendant was therfore liable in damages for non-acceptance of the goods.

Also read: How to become a successful lawyer in your country Best law firms in Nigeria: Top 10 Cheapest universities in Nigeria to study law

Final words

Those are some of the leading contract law cases you should know. Hope this article was able to give you exactly what you wanted. If you have any case you were really expecting to be in this list but was not mentioned here, kindly let us know using the comment section. Accordingly, share you comments and questions in the comment section too. I will be very glad to give you a reply.

Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.

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• Contract law is a private agreement of law between two parties for the enforcement of promises.
• It is the most important law in the legal system.
• Every business transaction is only considered legal when it fulfills the rule and regulation of the prevailing Contract law.
• It is also referred as a legal bond that is used to protect two parties who are about to enter into an agreement.
• Bilateral Contract
• Unilateral Contract
• Express Contract
• Contract under seal
• Implied Contract
• Aleatory Contract
• Adhesion Contract
• Executive Contract
• Unconscionable Contract
• Void and Voidable Contracts
• Letter Contracts
• Introduction Clauses
• Defining the Parties and Key items
• Statements of Purpose
• Obligation of each Party
• Assurances and Warranties
• Attachments
• Signature Block
• Consideration
• Definitions
• Materials/ Information
• Liability/ Indemnity
• Consideration/ payment option
• Obligation of each party
• Terms of validity
• Governing law and arbitration
• It gives clear understanding of the condition when the parties are directly involved in an agreement.
• It refers to all the terms and conditions and the applications and the rights of each party, which may vary based on the nature of the contract agreement.
• It helps both parties to be mentally and logically sound and be competent when entering into contracts.
• Business contracts should always have legal purpose for validation.
• Breaching of a contract occurs when one of the parties in the contact violates any clauses mentioned in the agreement.
• It damages the reputation of the party, their business and also the person.
• If the damages are caused due to a breach of contract, the other party can lead the business into a lawsuit.
• If the court finds that the violation towards the contract is momentous then the court can hold the party contempt, fine and even imprison.
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