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Effect of Flaw in consent 1. Right of rescission of the contract (Ss 19, 19A, and S. 27, SRA); and 2. Right to claim compensation. Modes of Rescinding a Contract Car and Universal Finance Co Ltd v Caldwell (1961) 1 QB 525.
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Date: 16/08/2011
Lecture-8
1. By affirmation or ratification[S. 27 (1) (a)]; or 2. Where restitution in intergrum is not possible[S. 27 (1) (b)]; or 3. Acquisition/intervention of rights of third parties[S. 27 (1) (c)]; or 4. Where only a part of the contract is sought to be rescinded and such part is not severable from the rest of the contract[S. 27 (1) (d)]; or 5. Lapse of reasonable time.
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Lecture-8
Long v Lloyd (1958) 1 WLR 753. Wallis v Pratt (1911) AC 394. Phillips v Brooks Ltd (1919) 2 KB 243.
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Date: 16/08/2011
Lecture-8
Mistake Mistake operates in two ways: 1. Where there is no consensus ad idem: when the consent is unreal. 2. Mistake as to a matter of fact essential to the agreement: when mistake misleads the parties as to the purpose which they contemplated. Raffles v Wichelhaus (1864) 2 H&C 906.
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Lecture-8
Mistake As To a Matter of Fact Essential to the Agreement Section 20: Essentials: 1. Both the parties to the agreement should be under a mistake (Supplemented by S. 22); 2. Mistake should be regarding a matter of fact (Supplemented by S. 21); and 3. The fact regarding which the mistake is made should be essential to the agreement.
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Lecture-8
Haji Abdul Rehman Allarakhia v Bombay & Persia Steam Navigation Co (1892) 16 Bom 561. Certain Facts That Are Essential To The Agreement:
1. The identity of the parties; 2. The identity and nature of the subject matter of the agreement; and 3. The nature and content of the promise.
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The identity and nature of the subject matter of the agreement Mistake as to the existence of subject-matter
Couturier v Hastie (1856) 5 HL Cas 673.
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Mistake as to the identity of the parties Mistake caused by taking over of business
Boulton v Jones (1857) 27 LJ Ex 117.
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Date: 16/08/2011
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Mistake as to the nature of promise Hartog v Colin and Sheilds (1939) 3 All ER 566.
Exception: Explanation to S. 20
State of Karnataka v Stellar Construction Co AIR 2003 Kant 6.
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Date: 16/08/2011
Lecture-8
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Legal Aspects of Infrastructure Business-I (General Principles of Contracts) Object and Consideration Forbidden by Law
Brij Mohan v MPSRTC AIR 1987 SC 29.
Defeat the provisions of any law Fraudulent Agreements injurious to the person or property of another Immorality Opposed to Public Policy
Gheru Lal Parekh v Mahadeodas Maiya AIR 1959 SC 781. Ratanchand Hirachand v Askar Nawaz Jung AIR 1976 AP 112.
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Date: 16/08/2011
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Legal Aspects of Infrastructure Business-I (General Principles of Contracts) Heads of Public Policy Trading with enemy: Trafficking in Public offices: Interference with the administration of justice: i. Interference with the course of justice ii. Stifling prosecution Ouseph Poulo v Catholic Union Bank AIR 1965 SC 166. iii. Maintenance and champerty Marriage Brokerage agreements: Unfair or unreasonable dealings: Agreements void, if consideration and objects unlawful in part (S. 24)
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