2(a) proposal One Person → Signifies → Willingness → Do /

Abstain → To Another → To Obtain Assent = Proposal

2(b) acceptance Proposal → Assent → Acceptance → Promise

2(c) Makes Proposal → PROMISOR

Accepts Proposal → PROMISEE

2(d) Consideration Promisor’s Desire → Act / Abstinence / Promise →

Consideration

2(e) agreement Promise + Promise = Agreement

2(f) Reciprocal promise Mutual Promises

Form Consideration for Each Other

RECIPROCAL PROMISES

2(g) Void agrements Agreement

Not Enforceable by Law

VOID

2(h) Contract Agreement

Enforceable by Law

CONTRACT
2(i) Voidable Agreement Enforceable by Law

At Option of One Party Only

VOIDABLE CONTRACT

2(j) Valid Contract

Ceases to be Enforceable

Becomes VOID

3 Communication, Act / Omission → Intention or Effect of

acceptance and Communication → Valid Communication
revocation of proposals

4 communication when Proposal → Knowledge of Offeree → Complete

complete

Acceptance →

(Against Proposer) Transmission + Out of Power

(Against Acceptor) Knowledge of Proposer

Revocation →

(Against Sender) Transmission + Out of Power

(Against Receiver) Knowledge

5 Revocation of Proposals Proposal Revocation → Before Acceptance Complete

and acceptance Against Proposer
 Acceptance Revocation → Before Acceptance
Complete Against Acceptor

6 Revocation how made Notice → Time Lapse → Failure of Condition → Death

/ Insanity (With Knowledge Before Acceptance)

7 Acceptance must be Acceptance → Absolute + Unqualified

absolute Acceptance → Prescribed Mode

If Not Followed →

Proposer Must Object in Reasonable Time

No Objection → Acceptance Valid

8 Acceptance by Performance of Conditions

performing conditions, or OR
receiving consideration
Acceptance of Consideration

Acceptance of Proposal

9 . Promises, express and Words → Express Promise

implied Conduct (Not Words) → Implied Promise

10 What agreements are All Agreements → (Free Consent + Competency +

comtract Lawful Consideration + Lawful Object + Not Void) →
Contract → Subject to Existing Formal Requirements
(Writing / Witness / Registration)

11 Who are Competent to Majority + Sound Mind + No Legal Disqualification =

Contract. Competency to Contract
12 Sound mind Sound Mind → At Time of Contract → Capable of
Understanding + Forming Rational Judgment of Its
Effect on Interests → Only Then Competent (Even if
Usually Unsound / Not Competent When Unsound at
That Time)

13 Consent Two or More Persons → Agree Upon Same Thing →

In Same Sense (Consensus ad idem) → Consent

14 free consent Consent → Not Caused by (Coercion – Sec 15 / Undue

Influence – Sec 16 / Fraud – Sec 17 / Misrepresentation
– Sec 18 / Mistake – Secs 20, 21, 22) → Free Consent
→ (If Given Only Because of These = Not Free)

15 Coeciom Commit / Threaten to Commit Act Forbidden by IPC

OR Unlawfully Detain / Threaten to Detain Property →
To Prejudice of Any Person → With Intention to Cause
Agreement → Coercion (Sec 15)

16 Undue influence Relationship of Dominance → One Party in Position to

Dominate Will (Authority / Fiduciary Relation /
Affected Mental Capacity due to Age, Illness or
Distress) → Uses Position to Obtain Unfair Advantage
→ Undue Influence → If Transaction Unconscionable
→ Burden on Dominant Party to Prove No Undue
Influence (Sec 16, Subject to Sec 111 Evidence Act)

17 Fraud Party to Contract / His Agent / With Connivance →

Intent to Deceive or Induce Contract → (False
Suggestion of Fact Known to be Untrue / Active
Concealment / Promise Without Intention to Perform /
Any Act Fitted to Deceive / Act or Omission Declared
Fraudulent by Law) → Fraud (Sec 17) → Mere Silence
 Not Fraud Unless Duty to Speak or Silence Equivalent
to Speech

18 Misrepresentation Positive Assertion Not True (Believed True) OR

Breach of Duty Without Intent to Deceive Gaining
Advantage by Misleading OR Innocently Causing
Mistake as to Substance of Subject-Matter →
Misrepresentation

19 Voidability of agreements Consent Caused by Coercion (S15) / Fraud (S17) /

without free consent.— Misrepresentation (S18) → Contract Voidable at
Option of Aggrieved Party → In Case of Fraud or
Misrepresentation Aggrieved Party May Either
Rescind OR Insist on Performance as If Representation
True → Exception: Not Voidable If Truth Discoverable
by Ordinary Diligence (In Case of Misrepresentation or
Fraudulent Silence) → Explanation: If
Fraud/Misrepresentation Did Not Cause Consent →
Not Voidable

20 Void when both mistake Both Parties → Under Mistake of Fact → Essential to
of fact Agreement → Agreement Void → (But Erroneous
Opinion as to Value ≠ Mistake of Fact)

21 Effect on mistake of law Mistake of Law in Force in India → Contract Not

Voidable → Mistake of Foreign Law (Law Not in
Force in India) → Treated as Mistake of Fact

22 By mistake of one party Unilateral Mistake of Fact (By One Party Only) →
Contract Not Voidable Merely on That Ground

23 What considerations and Consideration or Object → Lawful Unless (Forbidden

objects are lawful, and by Law / Defeats Provisions of Law / Fraudulent /
what not Involves Injury to Person or Property / Immoral or
 Opposed to Public Policy) → If Unlawful →
Agreement Void

24 Void contract if unlawful Single Consideration for One or More Objects OR

object or consideration Several Considerations for Single Object → If Any Part
Unlawful → Entire Agreement Void

25 Void without No Consideration → Agreement Void → Except (1)

consideration unless Written + Registered + Natural Love & Affection
between Near Relations OR (2) Promise to Compensate
for Past Voluntary Act or Legal Obligation OR (3)
Written & Signed Promise to Pay Time-Barred Debt)
→ In These Cases Valid Contract → Explanation:
Completed Gift Valid → Inadequate Consideration ≠
Void (But May Affect Free Consent)

26 Agreement restraint-of Void unless minor

marriage

27 Restraint of trade void Agreement Restraining Any Person from Exercising

Lawful Profession / Trade / Business → To That Extent
Void

28 Restraint of legal Agreement → Absolutely Restricts Party from

proceeding Enforcing Contractual Rights by Usual Legal
Proceedings OR Limits Time to Enforce Rights OR
Extinguishes Rights / Discharges Liability After
Specified Period So as to Restrict Enforcement → Void

29 Agreement not certain Not certain or capable of being made certain

void

30 Wagering Agreements. Agreement by Way of Wager → Void → No Suit to

Recover Winnings OR Money Entrusted to Abide
Result of Uncertain Event
 Horse-Race Prize ≥ ₹500 → Subscription /
Contribution for Prize Valid (Exception to Wager Void
Rule) → But Does Not Legalize Transactions Falling
Under Sec 294A IPC (Sec 30 Exception)

31 “Contingent contract Contract to Do / Not Do Something → If Uncertain

Collateral Event Happens or Does Not Happen →
Contingent Contract

32 Enforcement of contracts Contingent Contract (Dependent on Uncertain Future

contingent on an event Event Happening) → Enforceable Only If Event
happening Happens → If Event Becomes Impossible → Contract
Void

33 On not happening Contingent Contract (Dependent on Uncertain Future

Event Not Happening) → Enforceable When Event
Becomes Impossible → Not Before (Sec 33)

34 .When event on which Contingent on How a Person Will Act at Unspecified

contract is contingent to Time → Event Becomes Impossible When Person
be deemed impossible, if Does Something Making Such Conduct Impossible
it is the future conduct of Within Definite Time or Except Under Further
a living person Contingencies → Contract Treated Accordingly

35 .When contracts become Event Not Happening Within Time / Becomes

void which are contingent Impossible → Void
on happening of specified
event within

fixed time

36 Agreement contingent on Impossible Event = Void (Knowledge Irrelevant)

impossible events void
37 Obligation of parties to Perform / Offer to Perform → Binds Legal
contracts. Representatives → Unless Excused by Law or Contrary
Intention

38 Effect of refusal to accept Valid Tender + Refusal → No Liability → Must Be

offer of performance. Unconditional, Proper Time/Place, Full Ability,
Inspection Opportunity → One Joint Promisee = All

39 Effect of refusal of party Refusal / Disability to Perform → Promisee May End

to perform promise Contract → Unless Acquiescence
wholly

40 Person by whom promise Personal Skill Intended → Must Perform Personally →

is to be performed. Otherwise Delegation Allowed

41 Effect of accepting Acceptance from Third Party = Discharge of Promisor

performance from third
person

42 Devolution of joint Joint Promisors → During Joint Lives: All Must

liabilities Perform → After Death of One: Legal Representative
+ Survivors Jointly Liable → After Death of Last
Survivor: Representatives of All Jointly Liable →
Unless Contrary Intention

43 Any one of joint Joint Promise → Liability is Joint & Several (Promisee
promisors may be Can Sue Any One)
compelled to perform Joint Liability → Equal Contribution (Unless
Otherwise Agreed)

Default by One → Others Share Loss Equally

44 Effect of release of one Release of One ≠ Discharge of Others + No Escape

joint promisor. from Contribution
45 Devolution of joint rights Promise to Joint Promisees → During Joint Lives: All
Jointly Entitled to Claim Performance → After Death
of One: Legal Representative + Survivors Jointly →
After Death of Last Survivor: Representatives of All
Jointly → Unless Contrary Intention

46 Time for performance of Promisor to Perform Without Application by Promisee

promise, when no + No Time Specified → Must Perform Within
application is to be made Reasonable Time
and no time is specified

47 Time and place for Certain Day → Usual Business Hours → Proper Place
performance of promise,
where time is specified
and no application to be
made.

48 Application for Certain Day + Application Required → Duty on

performance on certain Promisee to Apply Properly
day to be at proper time
and place

49 Place for performance of No Place Fixed → Promisor Must Seek & Perform at
promise, where no Reasonable Place
application to be made
and no place fixed for
performance

50 Performance in manner Promisee Controls Mode/Time → Performance Valid

or at time prescribed or Accordingly
sanctioned by promisee.

51 Promisor not bound to Simultaneous Promises → Readiness & Willingness

perform, unless Required
reciprocal promisee
 ready and willing to
perform.

52 Order of performance of Express Order → Follow It | No Express Order →

reciprocal promises Nature of Transaction Decides

53 Liability of party Reciprocal Promises + One Party Prevents Other from

preventing event on Performing → Contract Voidable at Option of
which the contract is to Prevented Party → Entitled to Compensation for Loss
take effect. Caused by Non-Performance (

54 Effect of default as to that Failure of First Performer → No Right to Claim +

promise which should be Liable for Compensation
first performed, in
contract consisting of
reciprocal promises

55 Effect of failure to Time of Essence + Delay → Voidable at Promisee’s

perform at fixed time, in Option
contract in which time is Time Not of Essence + Delay → No Voidability →
essential. Compensation Only

Accept Late Performance → No Compensation →

Unless Notice Given

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

impossible act void.

Valid Contract to Do Act → Act Becomes Impossible

or Unlawful After Formation (Without Promisor’s
Fault) → Contract Becomes Void at Time of
Impossibility/Unlawfulness

Promisor Knew or Ought to Have Known Act

Impossible/Unlawful + Promisee Unaware → Non-
Performance → Promisor Must Compensate Promisee
for Loss
57 Reciprocal promise to do Reciprocal Promises → First to Do Legal Acts +
things legal, and also Second (Under Specified Circumstances) to Do Illegal
other things illegal. Acts → First Set Valid Contract → Second Set Void
Agreement

58 Alternative promise, one Alternative Promise → Enforce Legal Part Only

branch being illegal.

59 Application of payment Debtor Indicates Debt → Creditor Must Apply

where debt to be Payment to That Debt
discharged is indicated

60 Application of payment No Indication → Creditor’s Discretion (Even Time-

where debt to be Barred Debt)
discharged is not
indicated

61 Application of payment No Appropriation → Oldest Debt First → Equal Debts

where neither party = Proportionate
appropriates

62 Effect of novation, Parties Agree to Substitute New Contract (Novation)

rescission, and alteration OR Rescind OR Alter Original Contract → Original
of contract Contract Need Not Be Performed

63 Promisee may dispense Remission / Extension / Acceptance of Satisfaction →

with or remit Discharge
performance of promisee

64 Consequences of Voidable Contract Rescinded by Aggrieved Party →

rescission of voidable Other Party Need Not Perform → Rescinding Party
contract Must Restore Any Benefit Received (As Far As
Possible)
65 Obligation of person who Agreement Discovered Void OR Contract Becomes
has received advantage Void → Person Who Received Advantage Must
under void agreement, or Restore It or Compensate the Other Party
contract that becomes
void.

66 Mode of communicating Rescission of Voidable Contract → Must Be

or revoking rescission of Communicated or May Be Revoked → In Same
voidable contract. Manner and Subject to Same Rules as Communication
or Revocation of Proposal

67 . Effect of neglect of Promisee Neglects or Refuses to Provide Reasonable

promisee to afford Facilities for Performance → Promisor Excused for
promisor reasonable Non-Performance Caused by Such Neglect or Refusal
facilities for
performance.

68 Claim for necessaries Necessaries to Incapable Person → Reimbursement

supplied to person from His Property
incapable of contracting,
or on his account

69 .Reimbursement of Interested Person Pays Legal Due → Right to

person paying money due Reimbursement
by another, in payment of
which he is interested

70 .Obligation of person Lawful Non-Gratuitous Act + Benefit Enjoyed →

enjoying benefit of non- Compensation / Restoration
gratuitous act.
71 Responsibility of finder of Finder of Goods = Bailee’s Responsibility
goods

72 Liability of person to Mistake / Coercion → Repayment Mandatory

whom money is paid, or
thing delivered, by
mistake or under

coercion

73 .Compensation for loss or Breach of Contract → Aggrieved Party Entitled to

damage caused by breach Compensation for Loss Naturally Arising in Usual
of contract Course OR Loss Foreseen by Parties at Time of
Contract → No Compensation for Remote or Indirect
Loss

Obligation Resembling Contract (Quasi-Contract)

Incurred + Not Discharged → Injured Person Entitled
to Same Compensation as in Case of Breach of
Contract (Sec 73 – Last Para)

74 Compensation for breach Contract Broken + Sum Named as Liquidated Damages

of contract where penalty OR Stipulation by Way of Penalty → Aggrieved Party
stipulated for.— Entitled to Reasonable Compensation (Whether or Not
Actual Loss Proved) → Not Exceeding Amount Named
/ Penalty → Increased Interest from Date of Default
May Amount to Penalty → Exception: In Case of Bail-
Bond / Recognizance / Bond for Public Duty → Whole
Sum Payable on Breach
75 Party rightfully Person Rightfully Rescinds Contract → Entitled to
rescinding contract, Compensation for Damage Sustained Due to Non-
entitled to compensation. Fulfilment