Contracts 1 Project

8/18/2019 Contracts 1 Project

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-DR. RAM MAHOHAR LOHIYA NATIONAL LAW UNIVERSITY-LAW OF CONTRACTS FINAL

DRAFT-

DR. RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY

LUCKNOW

ACADEMIC SESSION 2015-16

ROUGH DRAFT ON:

“Legality Of Agreemet! T" D" Im#"!!i$le A%t!&

SU'MITTED 'Y( UNDER THE )UIDANCE O*(

PARIMAL BHATT Dr. Visalakshi Vegesna

Roll No.:99 Assoia!e Pro"essor

#La$%&'(TION )B* DR. RAM MANOHAR LOHI+A

B.A. LLB #Hons.%, &'M'&T'R II NATIONAL LA- UNIV'R&IT+

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ACKNOWLEDGEMENT

This draf !"#$d %" ha&e 'ee% ("ssi'$e !ih"# he )i%d

s#(("r a%d he$( "f *a%+ i%di&id#a$s. I !"#$d $i)e " e,e%d *+

si%ere ha%)s " a$$ "f he*.I a* high$+ i%de'ed " Dr.

Visalakshi Vegesna f"r her g#ida%e a%d "%sa% s#(er&isi"%. I a*

graef#$ " *+ (are%s f"r heir )i%d "-"(erai"% a%d

e%"#rage*e%. A$s" I a* graef#$ " *+ "$$eag#es !h"

he$(ed *e "# i% is de&e$"(*e% a%d a$$ he "her (e"($e !h"

ha&e !i$$i%g$+ he$(ed *e "# !ih heir a'i$iies.

Y"#rs

si%ere$+

Pari*a$

/ha

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C"%e%sINTRODU(TION................................................................................................

&e!ion /0............................................................................................................./

Loss o" O12e! or Fr3s!ra!ion................................................................................0

&4ei"i gro3n5s o" "r3s!ra!ion.............................................................................6

Des!r3!ion o" &312e!7Ma!!er...........................................................................6

(hange o" (ir38s!anes..................................................................................

Non7o3rrene o" (on!e84la!e5 'en!...........................................................9

Dea!h or Ina4ai!; o" Par!;..............................................................................9Goern8en! or Legisla!ie In!eren!ion..........................................................


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INTRODUCTION(

&e!ion /0 o" !he In5ian (on!ra! 5eals $i!h agree8en!s !o 5o i84ossi1le a!s. I! la;s

5o$n !ha! agree8en!s !o 5o i84ossi1le a!s in i!sel" is a oi5 agree8en! an5 !ha! !he la$ 5oes

no! o84el an;one !o 5o i84ossi1le a!s.

I" a on!ra! is s3h !ha! 53e !o 3n"oreseen ir38s!anes, i!*s 4er"or8ane 1eo8es

i84ossi1le, !hen s3h a on!ra! 1eo8es oi5.

I" in s3h a on!ra!, !he 4ro8isor kne$ or $i!h reasona1le 5iligene 8igh! hae kno$n an5

$hih !he 4ro8isee 5i5 no! kno$, !hen !he 4ro8isee 8a; ge! o84ensa!ion "or an; loss 53e

!o non 4er"or8ane o" !he a!.

&4ei"i gro3n5s on $hih !he a! 8a; 1eo8e i84ossi1le inl35e Des!r3!ion o" s312e!8a!!er, (hange o" (ir38s!anes, Non7o3rrene o" (on!e84la!e5 'en!, Dea!h or

Ina4ai!; o" Par!;, Goern8en! or Legisla!ie In!eren!ion, In!eren!ion o" -ar.

In !he "ollo$ing 4ages $e $ill 1e 5is3ssing !his se!ion in 5e!ail $hile s!35;ing so8e

e@a84les an5 also look a! relean! ases $here !his se!ion $as a44lie5.

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Sei"% 01&e!ion /0 "irs! la;s 5o$n !he si84le 4rini4le !ha! an agree8en! !o 5o an a! i84ossi1le in

i!sel" is oi5. For e@a84le, an agree8en! !o 5isoer a !reas3re 1; 8agi, 1eing i84ossi1leo" 4er"or8ane, is oi5. The seon5 4aragra4h o" &e!ion /0 la;s 5o$n !he e""e! o"

s31se3en! i84ossi1ili!; o" 4er"or8ane. &o8e!i8es !he 4er"or8ane o" a on!ra! is 3i!e

4ossi1le $hen i! is 8a5e, 13! so8e een! s31se3en!l; ha44ens $hih ren5ers i!s

4er"or8ane i84ossi1le or 3nla$"3l. In ei!her ase !he on!ra! 1eo8es oi5. -here, "or

e@a84le, a"!er 8aking a on!ra! o" 8arriage, one o" !he 4ar!ies goes 8a5, or $here a

on!ra! is 8a5e "or !he i84or! o" goo5s an5 !he i84or! is !herea"!er "or1i55en 1; a

Goern8en! Or5er, or $here a singer on!ra!s !o sing an5 1eo8es !oo ill !o 5o so, !he

on!ra! in eah ase 1eo8es oi5.

In5ian (on!ra! A! 4roi5es Legal Proisions as "ollo$s :7

56. Agreement to do impossible act.—An agreement to do an act impossible in itself is

void. Contract to do act afterwards becoming impossible or unlawful.

— A contract to do an act which, after the contract is made, becomes impossible, or, by

reason of some event which the promisor could not prevent, unlawful, becomes void when

the act becomes impossible or unlawful.

Compensation for loss through non-performance of act known to be impossible or

unlawful.—here one person has promised to do something which he knew, or, with

reasonable diligence, might have known, and which the promisee did not know, to be

impossible or unlawful, such promisor must make compensation to such promisee for any

loss which such promisee sustains through the non- performance of the promise.

Illustrations (a) A agrees with B to discover treasure by magic. The agreement is void.

(b) A and B contract to marry each other. Before the time fied for the marriage! A goes mad.

The contract becomes void.

(c) A contracts to marry B! being already married to " and being forbidden by the law to

which he is sub#ect to $ractice $olygamy. A must make com$ensation to B for the loss caused to her by the non%$erformance of the $romise.

(d) A contracts to take in cargo for B at a foreign $ort. A&s 'overnment afterwards declares

war against the country in which the $ort is situated. The contract becomes void when war is

declared.

(e) A contracts to act at the theatre for si months in consideration of a sum $aid in

advance by B. n several occasions A is too ill to act. The contract to act on those occasions

becomes void. In the first well%known nglish case of *aradine v +ane , it was $ointed out

2 32 L4R 567

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that subse-uent ha$$enings should not affect a contract already made. There the defendant

had taken an estate on lease from the $laintiffs. The defendant was dis$ossessed of it by alien

enemies for some time and! therefore! refused to $ay the rent for the $eriod of dis$ossession.

It was held that when the $arty by his own contract creates a duty! he is bound to make it

good! if he may! notwithstanding any accident by inevitable necessity! because he might have

$rovided against it by his contract/ though the land be surrounded or gained by the sea! or

made barren by wildfire! yet the lessor will have his whole rent. In the subse-uent case of

Taylor v "aldwell 0 ! B1A"2B345 + laid down that the above rule is only a$$licable when

the contract is $ositive and absolute! and not sub#ect to any condition either e$ress or

im$lied.

In !his ase !he 5e"en5an!s ha5 agree5 !o le! !he 4lain!i""s !he 3se o" !heir 83si hall 1e!$een

er!ain 5a!es "or !he 43r4ose o" hol5ing a oner! !here. B3! 1e"ore !he "irs! 5a; on $hih a

oner! $as !o 1e gien, !he hall $as 5es!ro;e5 1; "ire $i!ho3! !he "a3l! o" ei!her 4ar!;. The

4lain!i""s s3e5 !he 5e"en5an!s "or !heir loss. I! $as, hel5 !ha! !he on!ra! $as no! a1sol3!e, as

i!s 4er"or8ane 5e4en5e5 34on !he on!in3e5 e@is!ene o" !he hall. I! $as, !here"ore, s312e!

!o an i84lie5 on5i!ion !ha! !he 4ar!ies shall 1e e@3se5 in ase, 1e"ore 1reah, 4er"or8ane

1eo8es i84ossi1le 1; !he 4erishing o" !hing $i!ho3! 5e"a3l! o" !he on!ra!or


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!o 4a; !he 1alane. I! $as hel5 !ha! !he real o12e! o" !he on!ra!, as reognise5 1; 1o!h

on!ra!ing 4ar!ies, $as !o hae a ie$ o" !he orona!ion 4roession.

The !aking 4lae o" !he 4roession $as, !here"ore, !he "o3n5a!ion o" !he on!ra!. The o12e!o" !he on!ra! $as "r3s!ra!e5 1; non7ha44ening o" !he orona!ion an5 !he 4lain!i"" $as no!

en!i!le5 !o reoer !he 1alane o" !he ren!. Th3s !he 5o!rine o" "r3s!ra!ion o8es in!o 4la; in

!$o !;4es o" si!3a!ion, "irs!, $here !he 4er"or8ane is 4h;siall; 3! o"", an5, seon5, $here

!he o12e! has "aile5. The &34re8e (o3r! has hel5 !ha! &e!ion /0 $ill a44l; !o 1o!h kin5s o"

"r3s!ra!ion. Re"erring !o !he se!ion, B E MUEH'R'A o1sere5 in &a!;a1ra!a Ghose

M3g7neeran Bang3r (o/ : This 83h is lear !ha! !he $or5 Ci84ossi1le* has no! 1een 3se5

here in !he sense o" 4h;sial or li!eral i84ossi1ili!;. The 4er"or8ane o" an a! 8a; no! 1e

li!erall; i84ossi1le 13! i! 8a; 1e i84ra!ia1le an5 3seless "ro8 !he 4oin! o" ie$ o" !he

o12e! an5 43r4ose $hih !he 4ar!ies ha5 in ie$ an5 i" an 3n!o$ar5 een! or hange o"

ir38s!anes !o!all; 34se!s !he er; "o3n5a!ion 34on $hih !he 4ar!ies res!e5 !heir 1argain,

i! an er; $ell 1e sai5 !ha! !he 4ro8isor "in5s i! i84ossi1le !o 5o !he a! $hih he 4ro8ise5

!o 5o.

'@4laining !he one4! "r3s!ra!ion o" !he on!ra! in (rikle$oo5 Pro4er!; Ines!8en!

Tr3s! L!5 Leigh!onCs Ines!8en! Tr3s! L!5, VI&(OUNT &IMON L( sai5 !ha! i! 8eans !he

o3rrene o" an in!erening een! or hange o" ir38s!anes so "3n5a8en!al as !o 1e

regar5e5 1; !he la$ 1o!h as s!riking a! !he roo! o" !he agree8en!, an5 as en!irel; 1e;on5 $ha!

$as on!e84la!e5 1; !he 4ar!ies $hen !he; en!ere5 in!o !he on!ra!. &i8ilarl;, Lor5

-RIGHT o1sere5 !ha! "r3s!ra!ion 8eans !ha! a on!ra! has ease5 !o 1in5 !he 4ar!ies 1ea3se !he o88on 1asis on $hih 1; 83!3al 3n5ers!an5ing i! $as 1ase5 has "aile5 !here

has 1een a "ail3re o" $ha! in !he on!e84la!ion o" 1o!h 4ar!ies $o3l5 1e !he essen!ial

on5i!ion or 43r4ose o" !he 4er"or8ane.

This 4rini4le $as a44lie5 in Parsho!a8 Das Ba!ala M3nii4al (o88i!!ee:

A M3nii4al (o88i!!ee lease5 o3! er!ain !onga s!an5s !o !he 4lain!i"" "or Rs /,===. B3! no

!onga 5rier a8e "or$ar5 !o 3se !he s!an5 !hro3gho3! !he ;ear an5 !he 4lain!i"" o3l5 no!

realie an;!hing. He s3e5 "or !he re"3n5 o" his 8one;. I! $as hel5 !ha! !he 4lain!i"" o1!aine5

!he lease an5 !he o88i!!ee gran!e5 !he sa8e !o hi8 on !he ass384!ion !ha! !he !onga s!an5s$o3l5 1e 3se5 1; !he 5riers an5 !he 4lain!i"" $o3l5 reoer "ees "ro8 !he8, 13! "or reasons

$hih 1o!h si5es o3l5 no! hel4, !he 5riers 5i5 no! 3se !he s!an5s, !he 5o!rine o" "r3s!ra!ion

a44lie5 $i!h "3ll "ore. A on!ra! "or sale o" lan5 "or non7agri3l!3ral 3se $as hel5 !o hae

"r3s!ra!e5 $hen !he a44lia!ion "or s3h 3se $as re2e!e5 1; !he a3!hori!ies.

S(ei gr"#%ds "f fr#srai"%The 4rini4le o" "r3s!ra!ion o" on!ra! or o" i84ossi1ili!; o" 4er"or8ane is a44lia1le !o a

grea! arie!; o" on!ra!s. I! is no! 4ossi1le !o la; 5o$n an e@ha3s!ie lis! o" si!3a!ions in

$hih !he 5o!rine is going !o 1e a44lie5 so as !o e@3se 4er"or8ane. The la$ 34on !he

0 AIR 2306 SC 66> 2306 SCR ;2

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8a!!er is 3n5o31!e5l; in 4roess o" eol3!ion. +e! !he "ollo$ing gro3n5s o" "r3s!ra!ion hae

1eo8e $ell es!a1lishe5.

Desr#i"% "f S#'8e-Maer

The 5o!rine o" i84ossi1ili!; a44lies $i!h "3ll "ore $here !he a!3al an5 s4ei"i s312e!7

8a!!er o" !he on!ra! has ease5 !o e@is!. CTa;lor (al5$el is !he 1es! e@a84le o" !his

lass. There, a 4ro8ise !o le! o3! a 83si hall $as hel5 !o hae "r3s!ra!e5 on !he 5es!r3!ion

o" !he hall. &i8ilarl;, $here !he 5e"en5an! on!ra!e5 !o sell a s4ei"ie5 3an!i!; o" 4o!a!oes

!o 1e gro$n on his "ar8s, 13! "aile5 !o s344l; !he8 as !he ro4 $as 5es!ro;e5 1; a 5isease, i!

$as hel5 !ha! 4er"or8ane ha5 1eo8e i84ossi1le. &i8ilarl;, a on!ra! !o e@hi1i! a "il8 in a

ine8a hall $as hel5 !o hae 1eo8e i84ossi1le o" 4er"or8ane $hen on ao3n! o" hea;

rains !he rear $all o" !he hall olla4se5 killing !hree 4ersons, an5 i!s liene $as anelle5

3n!il !he 13il5ing $as reons!r3!e5 !o !he sa!is"a!ion o" !he hie" engineer. The o$ner $as

3n5er no lia1ili!; !o reons!r3! !he hall an5 een i" he 5i5 reons!r3! an5 i! !ook hi8 a1o3!

so8e !i8e, 1; !ha! !i8e !he "il8 $o3l5 hae los! i!s a44eal.

The sa8e res3l! "ollo$e5 $here a shi4 ran agro3n5. The res3l! $o3l5 also 1e !he sa8e $here

!he s312e!78a!!er o" !he on!ra! !ho3gh in!a! has ease5 !o 1e aaila1le !o !he 4ar!ies. Th3s,

$here a shi4 $as har!ere5 "or !$ele 8on!hs !o r3n "ro8 A4ril !o A4ril an5 1e"ore i! o3l5

1e 5eliere5, i! $as re3isi!ione5 an5 $as release5 onl; in &e4!e81er, !he Ho3se o" Lor5s

hel5 !ha! !he har!ei4ar!; ha5 "r3s!ra!e5, "or a &e4!e81er !o &e4!e81er !er8 $as no!

on!e84la!e5 1; !he 4ar!ies.

-here !he 4ar!ies an s!ill 4er"or8 !heir 8ain o1liga!ion 5es4i!e !he "a! !ha! !he s312e!7

8a!!er has gone o3! o" !heir han5, "r3s!ra!ion 8a; no! "ollo$. Th3s, $here a shi4 $as

har!ere5 "or "ie ;ears an5 !hree ;ears a"!er !ha!, i! $as re3isi!ione5 1; !he Goern8en!, !he

la!!er 4a;ing 8ore 8one; !han !he "reigh! agree5 1e!$een !he 4ar!ies, i! $as hel5 !ha! !he

on!ra! $as no! "r3s!ra!e5. The har!erer $as 1o3n5 !o 4a; !he "reigh! an5 !ha! he o3l5 s!ill

4a; an5, !here"ore, he $as en!i!le5 !o olle! !he 8one; "ro8 !he Goern8en!. &i8ilarl;, an

agen; "or 5ealing $i!h !he goo5s 8an3"a!3re5 or sol5 1; !he 4rini4al $as no! "r3s!ra!e5

$hen !he 4rini4alCs "a!or; $as 5es!ro;e5, "or !he agen! o3l5 s!ill 5eal $i!h !he goo5s sol5

1; !he 4rini4al.

In a on!ra! "or arriage o" goo5s 1; sea, !he essel sank $i!h argo. There $as ei5ene !o

sho$ !ha! !he essel s!ar!e5 !aking in $a!er. -hen !he essel $as 5isoere5 !o 1e !il!ing, !he

$a!er in !he 1ilge $as 4384e5 o3! 13! no a!ion $as !aken !o go !o !he neares! 4or! !o hae

!he essel 1er!he5 an5 !he on5i!ion o" !he essel heke5. Ins!ea5 o" !ha!, a"!er 4384ing o3!

$a!er, !he essel a!!e84!e5 !o on!in3e on i!s o3rse. The o3r! sai5 !ha! !he sinking o" !he

essel o3l5 no! 1e 5esri1e5 as an inei!a1le ai5en!. Reasona1le are ha5 no! 1een !aken !o

4reen! !he sinking o" !he essel. The 5e"ene o" "r3s!ra!ion "aile5.

Cha%ge "f Cir#*sa%es

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A on!ra! $ill "r3s!ra!e $here ir38s!anes arise $hih 8ake !he 4er"or8ane o" !he

on!ra! i84ossi1le in !he 8anner an5 a! !he !i8e on!e84la!e5. This ha44ens $hen !he

hange o" ir38s!anes has a""e!e5 !he 4er"or8ane o" !he on!ra! !o s3h an e@!en! as !o

8ake i! ir!3all; i84ossi1le or een e@!re8el; 5i""i3l! or haar5o3s. A on!ra!e5 !o s344l;

!o B er!ain lasses an5 3an!i!ies o" A8erian 4iee7goo5s. The on!ra! $as .i.". Earahi.

The goo5s arrie5 !here a"!er so8e 5ela;. B re"3se5 !o ae4! on !he gro3n5 !ha! 1o!h !he

3ali!ies an5 3an!i!ies o""ere5 "or 5elier; $ere no! aor5ing !o !he 4ar!i3lar on!ra!. A

alle5 34on B !o re"er !he 5is43!e !o !he no8ina!e5 ar1i!ra!or $ho $as resi5ing a! Earahi.

Then a8e 4ar!i!ion $hih 8a5e i! i84ossi1le "or non7M3sli8s !o go !o Earahi.

I! $as hel5 !ha! !he on!ra! $as "r3s!ra!e5, 1ea3se !he ar1i!ra!or o3l5 4roee5 $i!ho3! !he

4ar!iesC 4resene. As agains! i!, $here a shi4 $as har!ere5 !o loa5 a argo 13! on !he 5a;

1e"ore she o3l5 hae 4roee5e5 !o her 1er!h, an e@4losion o3rre5 in !he a3@iliar; 1oiler,

$hih 8a5e i! i84ossi1le "or her !o 3n5er!ake !he o;age a! !he she53le5 !i8e, !he Ho3se o"

Lor5s hel5 !ha! "r3s!ra!ion ha5, in "a!, o3rre5 in !he ir38s!anes.

B3! !here is no general li1er!; resere5 !o !he o3r!s !o a1sole a 4ar!; "ro8 lia1ili!; !o

4er"or8 his 4ar! o" !he on!ra!, 8erel; 1ea3se on ao3n! o" 3non!e84la!e5 !3rn o" een!s,

!he 4er"or8ane o" !he on!ra! 8a; 1eo8e onero3s.

The 4ar!ies !o an e@e3!or; on!ra! are o"!en "ae5, in !he o3rse o" arr;ing i! o3! $i!h a

!3rn o" een!s $hih !he; 5i5 no! an!ii4a!ea $holl; a1nor8al rise or "all in 4rie, a s355en

5e4reia!ion o" 3rren;, an 3ne@4e!e5 o1s!ale !o e@e3!ion, or !he like. +e! !his 5oes no! in

i!sel" a""e! !he 1argain !he; hae 8a5e.

The &34re8e (o3r! lai5 5o$n !his 4rini4le in Alo4i Prasha5 Union o" In5ia.

The 4lain!i""s $ere a!ing as !he agen! !o !he Goern8en! o" In5ia "or 43rhasing ghee "or

!he 3se o" ar8; 4ersonnel. The; $ere !o 1e 4ai5 on os! 1asis "or 5i""eren! i!e8s o" $ork

inole5. The 4er"or8ane $as in 4rogress $hen !he &eon5 -orl5 -ar in!erene5 an5 !he

ra!es "i@e5 in 4eae !i8e $ere en!irel; s34erse5e5 1; !he !o!all; al!ere5 on5i!ions o1!aining

in $ar !i8e. The agen!s 5e8an5e5 reision o" ra!es 13! reeie5 no re4lies. The; ke4! 34 !he

s344lies. The Goern8en! !er8ina!e5 !he on!ra! in


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DRAFT-

This is sho$n 1; Berne Ba; &!ea8 Boa! (o H3!!on $hih also arose "ro8 !he

4os!4one8en! o" !he orona!ion. The Ro;al Naal Reie$ $as 4ro4ose5 !o 1e hel5 on !he

oasion. The 5e"en5an! har!ere5 a s!ea81oa! "or !$o 5a;s !o !ake o3! a 4ar!; o" 4a;ing

4assengers "or !he 43r4ose o" ie$ing !he naal reie$ an5 "or a 5a;Cs r3ise ro3n5 !he "lee!.

B3! !he reie$ $as anelle5 an5 !he 5e"en5an! ha5 no 3se o" !he shi4. +e! he $as hel5 lia1le

!o 4a; !he 3n4ai5 1alane o" !he hire less !he 4ro"i! $hih !he 4lain!i"" ha5 8a5e 1; !he 3se o"

!he shi4 in !he or5inar; o3rse. The o3r! sai5 !ha! !he on!ra! 5oes no! 5i""er "ro8 a ase

$here, "or ins!ane, a 4erson has engage5 a 1rake !o !ake hi8sel" an5 a 4ar!; !o '4so8 !o see

!he raes !here, 13! "or so8e reason or o!her, s3h as !he s4rea5 o" an in"e!io3s 5isease, !he

raes are 4os!4one5.

Deah "r I%a(ai+ "f Par+

A 4ar!; !o a on!ra! is e@3se5 "ro8 4er"or8ane i" i! 5e4en5s 34on !he e@is!ene o" a

gien 4erson, i" !ha! 4erson 4erishes or 1eo8es !oo ill !o 4er"or8. -here !he na!3re or

!er8s o" a on!ra! re3ire 4ersonal 4er"or8ane 1; !he

4ro8isor, his 5ea!h or ina4ai!; 43!s an en5 !o !he on!ra!. Ro1inson Daison0 is !he $ell7

kno$n ill3s!ra!ion :

There $as a on!ra! 1e!$een !he 4lain!i"" an5 !he 5e"en5an!Cs $i"e, $ho $as an e8inen!

4ianis!, !ha! she sho3l5 4la; !he 4iano a! a oner! !o 1e gien 1; !he 4lain!i"" on a s4ei"ie5

5a;. On !he 8orning o" !he 5a; in 3es!ion she in"or8e5 !he 4lain!i"" !ha! she $as !oo ill !o

a!!en5 !he oner!. The oner! ha5 !o 1e 4os!4one5 an5 !he 4lain!i"" los! a s38 o" 8one;.

The 4lain!i""s a!ion "or 1reah o" on!ra! "aile5. The o3r! sai5 !ha! 3n5er !he ir38s!anes

she $as no! 8erel; e@3se5 "ro8 4la;ing, 13! she $as also no! a! li1er!; !o 4la;, i" she $as

3n"i! !o 5o so. The on!ra! $as learl; s312e! !o !he on5i!ion o" her 1eing $ell eno3gh !o

4er"or8.

&i8ilarl;, $here a


11/18


DRAFT-

"&er%*e% "r Legis$ai&e I%er&e%i"%

A on!ra! $ill 1e 5issole5 $hen legisla!ie or a58inis!ra!ie in!eren!ion has so 5ire!l;

o4era!e5 34on !he "3l"il8en! o" !he on!ra! "or a s4ei"i $ork as !o !rans"or8 !he

on!e84la!e5 on5i!ions o" 4er"or8ane. -here a en5or o" lan5 o3l5 no! e@e3!e !he sale

5ee5 1ea3se he ease5 !o 1e !he o$ner 1; o4era!ion o" la$, i! $as hel5 !ha! !he on!ra! ha5

1eo8e i84ossi1le o" 4er"or8ane. A on!ra! 1; !he &!a!e !o gie a 8ono4ol; $as hel5 !o

hae 1eo8e oi5 on !he en"ore8en! o" !he (ons!i!3!ion. A on!ra! 1e!$een er!ain 4ar!ies

"or !he sale o" !he !rees o" a "ores! $as 5isharge5 $hen !he &!a!e o" Ra2as!han "or1a5e !he

3!!ing o" !rees in !he area. A $ell7kno$n 'nglish a3!hori!; is Me!ro4oli!an -a!er Boar5

Dik Een (o L!5. B; a on!ra! 8a5e in 3l;


12/18


DRAFT-

has !o 1e ie$e5 in !he ligh! o" !he !er8s o" !he on!ra!, an5, i" !he !er8s sho$ !ha! !he

4ar!ies hae 3n5er!aken an a1sol3!e o1liga!ion regar5less o" a58inis!ra!ie hanges, !he;

anno! lai8 !o 1e 5isharge5.

This has 1een so hel5 1; !he &34re8e (o3r! in Naiha!i 3!e Mills L!5 Eh;alira8

aganna!h6. There $as an agree8en! !o 43rhase ra$ 23!e !o 1e i84or!e5 "ro8 'as! Pakis!an

#no$ Bangla5esh%. The 13;er $as !o s344l; !he i84or! liene $i!hin Noe81er, "ailing

$hih i! $as !o 1e s344lie5 $i!hin Dee81er a! !he 4ain o" a li!!le 8ore 4rie an5 i" he

"aile5 in Dee81er he $as !o 4a; !he 5i""erene 1e!$een !he on!ra! an5 8arke! 4ries. The

13;er a44lie5 "or a liene $hih $as re"3se5 1ea3se he ha5 s!ok in his 8ill s3""iien! "or

!$o 8on!hs. He a44lie5 again. He $as a5ise5 !his !i8e !ha! !he r3les hae 1een hange5

an5 !o o1!ain a liense he 83s! sho$ !ha! he has 3se5 an e3al 3an!i!; o" In5ian 23!e. Th3s

!he 13;er "aile5 !o s344l; !he liense an5 $as s3e5 "or 1reah. He 4lea5e5 "r3s!ra!ion a3se5

1; !he hange in Goern8en! 4oli;. B3! he $as hel5 lia1le. &H'LAT 4oin!e5 o3! !ha! i" !he

Goern8en! ha5 o84le!el; "or1i55en i84or!s, &e!ion /0 $o3l5 hae a44lie5. B3! !he

Goern8en! 4oli; onl; $as !ha! !he liensing a3!hori!; $o3l5 sr3!inise !he ase o" eah

a44lian! on i!s o$n 8eri!. -here !he in!eren!ion 8akes !he 4er"or8ane 3nla$"3l, !he

o3r!s $ill hae no hoie 13! !o 43! an en5 !o !he on!ra!, This kin5 o" si!3a!ion $as 1e"ore

!he &34re8e (o3r! in Boo!halinga Agenies V T ( Porias$a8i Na5ar. The 5e"en5an! ha5 a

liense !o i84or! hior; "or 8an3"a!3ring o""ee 4o$5er. The liene $as s312e! !o !he

on5i!ion !ha! he $o3l5 3se i! onl; in his "a!or;. He agree5 !o sell !he $hole shi4loa5.

Be"ore !he arrial o" !he shi4, !he sale o" s3h i84or!e5 goo5s $as 1anne5. The on!ra! $as

aor5ingl; hel5 !o hae 1eo8e oi5.

I%er&e%i"% "f War

In!eren!ion o" $ar or $arlike on5i!ions in !he 4er"or8ane o" a on!ra! has o"!en rea!e5

5i""i3l! 3es!ions. The los3re o" !he &3e (anal "ollo$ing !he AngloFrenh $ar $i!h 'g;4!,

"or ins!ane, in!err34!e5 !he 4er"or8ane o" 8an; on!ra!s. One s3h ase is Tsakiroglo3

(o L!5 No1lee Thorl G 8 1 H.

The a44ellan!s agree5 !o sell !o !he res4on5en!s !hree h3n5re5 !ons o" &35an gro3n5n3!s .i.".

Ha813rg. The 3s3al an5 nor8al ro3!e a! !he 5a!e o" !he on!ra! $as ia &3e (anal.

&hi48en! $as !o 1e in Noe81erKDee81er ,


13/18


DRAFT-

i! $as an i84lie5 !er8 o" !he on!ra! !ha! shi48en! sho3l5 1e ia &3e. B3! i! $as hel5 !ha!

s3h a !er8 o3l5 no! 1e i84lie5. The 3s!o8ar; or 3s3al ro3!e ia !he &3e (anal 1eing

lose5, !he a44ellan!s $ere 1o3n5 1; !he &ale o" Goo5s A!, #>% !o shi4 !he

gro3n5n3!s 1; a reasona1le an5 4ra!ial ro3!e an5, !ho3gh !he a44ellan!s 8igh! 1e 43! !o

grea!er e@4ense 1; shi44ing !he gro3n5n3!s ia !he (a4e o" Goo5 Ho4e, !ha! 5i5 no! ren5er

!he on!ra! "3n5a8en!all; or ra5iall; 5i""eren!, an5 !here $as no!, !here"ore, "r3s!ra!ion o"

!he on!ra!. I" !he in!eren!ion o" $ar is 53e !o !he 5ela; a3se5 1; !he negligene o" a 4ar!;,

!he 4rini4le o" "r3s!ra!ion anno! 1e relie5 34on. I" !here are 8ore !han one $a;s o"

4er"or8ing a on!ra! an5 !he $ar 3!s o"" onl; one o" !he8, !he 4ar!; is s!ill 1o3n5 !o

4er"or8 1; !he o!her $a;, ho$eer inonenienen! or e@4ensie. This is "3r!her sho$n 1; !he

5eision o" !he Pri; (o3nil in T$en!she Oerseas Tra5ing (o L!5 Ugan5a &3gar Fa!or;

L!5. There $as a on!ra! "or s344l;ing Er344ss!eel rails. The res! o" !he "a!s a44ear "ro8

!he "ollo$ing $or5s o" Lor5 -RIGHT:

The a44ellan!s lai8e5 !ha! !he rails s4ei"ie5 3n5er !he on!ra! $ere !o 1e rails

8an3"a!3re5 1; a Ger8an "ir8 an5 1; !ha! "ir8 onl;. On !his !he; 1ase5 !heir lai8 !o 1e

e@3se5 "ro8 !heir "ail3re !o 5elier !he goo5s 1ea3se !o 5o so $o3l5 hae inole5 a

5ealing $i!h alien ene8ies 53e !o !he o3!1reak o" -orl5 -ar II an5 hene !he 4er"or8ane o"

!he on!ra! 1ea8e i84ossi1le an5 illegal. Their Lor5shi4s hel5 !ha! i! $as no! o4en !o !he

s344lier !o inoke !he 5o!rine o" "r3s!ra!ion. There $as no!hing in !he on!ra! $hih alle5

"or !he rails !o 1e o1!aine5 "ro8 Ger8an; onl;. The re"erene !o Er344s 5i5 no! in5ia!e a

so3re o" s344l;, 13! 8erel; a s4ei"ia!ion o" !he rails. There $ere 8an; o!her so3res o"

s344l;, an5 !he on!ra! le"! !he s344lier $i!h a "ree han5 in !he 8a!!er. In a ase 1e"ore !hePa!na High (o3r!, !he "3r!her 4er"or8ane o" a on!ra! o" li"e ins3rane ha5 1eo8e

i84ossi1le 1ea3se !he ins3rer $as a Ger8an o84an; an5 on !he o3!1reak o" $ar i!s

13siness $as lose5 1; !he Goern8en! o" In5ia an5 !he 5is4osal o" 4en5ing 4oliies $as

han5e5 oer !o a "ir8 o" har!ere5 ao3n!an!s. The ass3re5 $as allo$e5 !o reoer !he

8one; 4ai5 3n5er !he 4oli;.>= In a (al3!!a ase a on!ra! o" arriage 1; rier $as

in!ere4!e5 1; !he ene8; seiing !he 1oa! along $i!h argo 53ring hos!ili!ies 1e!$een In5ia

an5 Pakis!an. The o3r! allo$e5 !he arrier !he 4lea o" i84ossi1ili!;.

Ees "f fr#srai"%I! is $ell7se!!le5 !ha! i" an5 $hen !here is "r3s!ra!ion !he 5issol3!ion o" !he on!ra! o3rsa3!o8a!iall;.

Fr#srai"% Sh"#$d %" 'e Se$f-i%d#ed

'@4laining !he 4rini4le !ha! "r3s!ra!ion sho3l5 no! 1e sel"7in53e5, Lor5 -RIGHT sai5 in

Mari!i8e Na!ional Fish L!5 Oean Tra$lers L!5, !ha! !he essene o" C"r3s!ra!ionC is !ha! i!

sho3l5 no! 1e 53e !o !he a! or ele!ion o" !he 4ar!ies. Fr3s!ra!ion sho3l5 arise $i!ho3! 1la8e

or "a3l! on ei!her si5e. Reliane anno! 1e 4lae5 on a sel"7in53e5 "r3s!ra!ion. The "a!s $ere

: 23;0 AC 050.

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14/18


DRAFT-

: The a44ellan!s hire5 !he res4on5en!sC !ra$ler, alle5 C!he &! (3!h1er" !o 1e e84lo;e5 in

"ishing in53s!r; onl;. Bo!h 4ar!ies kne$ !ha! !he !ra$ler o3l5 1e 3se5 "or !ha! 43r4ose onl;

3n5er a liense "ro8 !he (ana5ian Goern8en!. The a44ellan!s $ere 3sing "ie !ra$lers an5,

!here"ore, a44lie5 "or "ie lienses. Onl; !hree $ere gran!e5 an5 !he Goern8en! aske5 !he

a44ellan!s !o na8e !he !hree !ra$lers an5 !he; na8e5 !ra$lers o!her !han !he &! (3!h1er!.

The; !hen re435ia!e5 !he har!er an5 4lea5e5 "r3s!ra!ion in res4onse !o !he res4on5en!sC

a!ion "or !he hire.

The 35iial (o88i!!ee o" !he Pri; (o3nil hel5 !ha! !he "r3s!ra!ion in !his ase $as !he

res3l! o" !he a44ellan!sC o$n hoie o" e@l35ing !he res4on5en!sC shi4 "ro8 !he liense an5,

!here"ore, !he; $ere no! 5isharge5 "ro8 !he on!ra!.9

In ano!her si8ilar ase, !he on!ra! $as !o e@4or!


15/18


DRAFT-

Fr3s!ra!ion o4era!es a3!o8a!iall; !o 5isharge !he on!ra! irres4e!ie o" !he in5ii53als

onerne5, !heir !e84era8en!s an5 "ailings, !heir in!eres! an5 ir38s!anesC. The legal

e""e! o" "r3s!ra!ion 5oes no! 5e4en5 on !heir in!en!ion or !heir o4inions, or een kno$le5ge,

as !o !he een!. This is 4ar!i3larl; !r3e o" In5ian la$ as &e!ion /0 o" !he (on!ra! A! la;s

5o$n a r3le o" 4osi!ie la$ an5 5oes no! leae !he 8a!!er !o 1e 5e!er8ine5 aor5ing !o !he

in!en!ion o" !he 4ar!ies. A s31se3en! ase, ho$eer, sho$s !ha! in er!ain ir38s!anes

"r3s!ra!ion 8a; 1e $aie5 1; one 4ar!; an5 !hen !he o!her $ill 1e 1o3n5 1; !he on!ra!. In H

R . & &ains13r; L!5 &!ree! :

There $as !he sale o" >6/ !ons #/ 8ore or less% o" "ee5 1arle; !o 1e gro$n on sellerCs lan5.

The ro4 a8o3n!e5 !o onl; ??!!!.ssr%."*

15 | P a g e


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DRAFT-

sung.

(d) A contracts to sing for B at a concert for ,!666 ru$ees! which are $aid in advance. A tooill to sing. A is not bound to make com$ensation to B for the loss of the $rofits which B

would have made if A had been able to sing! but must refund to B the ,!666 ru$ees $aid in

advance.

CONCLUSION

The agree8en!s !o 5o i84ossi1le a!s in i!sel" are oi5 an5 s3h a!s are "airl; si84le !o

"oresee an5 aser!ain !ha! !he a! $ill 1e i84ossi1le !o 4er"or8 ho$eer in ases o" "r3s!ra!ion, i! is so8e!i8es on"3sing $he!her !he on!ra! $ill 1e oi5 or no! an5 !he ario3s

ir38s!ane $here !here is "r3s!ra!ion. The 5o!rine o" "r3s!ra!ion 5esri1es a si!3a!ion

$here a"!er !he onl3sion o" a on!ra!, 3n"oreseea1le een!s o3r, ren5ering !he

4er"or8ane o" !ha! on!ra! i84ossi1le. Un5er !ha! 5o!rine, o3r!s hae !he 4o$er !o

5isharge an; on!ra! !ha! "alls $i!hin i!s so4e as "r3s!ra!e5. (o3r!s no$a5a;s see8 !o 1e

rel3!an! $hen i! o8es !o 5isharging on!ra!s as "r3s!ra!e5. The 3rren! 4oli; on s3h

8a!!ers is !o 4reen! 4ar!ies "ro8 3sing !he 5o!rine as a 5e"ene 4ro!e!ing !he8 "ro8 a 1a5

1argain. Ano!her 4ara8e!er is an e@4e!e5 "oreseea1ili!; o" een!s o3rring a"!er !he

"or8a!ion o" a on!ra!, een!s $hih $o3l5 hae a nega!ie i84a! on i!s ali5i!;. This is$h; $e sho3l5 eli8ina!e s3h 4ossi1ili!ies 1e"ore reahing a er5i!

16 | P a g e


17/18


DRAFT-

'I'LIO)RA+HY(

T,e I-ia %"tra%t a%t ( it, a %"mmetary/ %riti%al a- e0#laat"ry $y +"ll"%1/

*re-eri%1/ Sir/ 234562789: I-ia. I-ia C"tra%t A%t: M;lla/ Di!,a, *ar-;


18/18


DRAFT-

,tt#(.i1i#e-ia."rg

,tt#(.-"%!t"%.%"m.

,tt#(.!!r.%"m.

,tt#(.legal!eri%ei-ia.%"m

,tt#(.ma;#atra.%"m

,tt#(.le0i!e0i!.%"m.

,tt#(.e$il!".%"m

,tt#(.i-iat"get,er.%"m

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,tt#(.e$%e$!t"re.%"m

,tt#(.,ei"lie.%"m

18 | P a g e

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