Delhi Judicial Services Exam Law of Contract & Specific Relief Flashcards

24 sample cards from the Law of Contract & Specific Relief deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. Distinguish a 'particular lien' from a 'general lien' in bailment (Sections 170-171).

   Particular lien (S.170): right to retain only those specific goods on which labour/skill was bestowed, until paid. General lien (S.171): right to retain any goods of the debtor for a general balance of account; available to bankers, factors, wharfingers, attorneys of High Court, and policy brokers.

2. Define 'pledge', 'pawnor' and 'pawnee' under Section 172 of the Contract Act.

   Pledge (pawn) is the bailment of goods as security for payment of a debt or performance of a promise. The bailor is the pawnor; the bailee is the pawnee. The pawnee gets a special property/interest and right of retainer and sale on default.

3. What are the pawnee's rights on default of the pawnor under Section 176?

   On default the pawnee may either (1) sue for the debt and retain the goods as collateral security, or (2) sell the pledged goods after giving reasonable notice of sale. If sale proceeds exceed the debt, surplus goes to pawnor; if less, pawnor remains liable for the balance.

4. Define 'agent' and 'principal' under Section 182, and state when consideration is necessary to create an agency.

   An agent is a person employed to do any act for another or to represent another in dealings with third persons; the person for whom such act is done is the principal. No consideration is necessary to create an agency (Section 185).

5. What is 'ratification' of an agent's act, and what are its essential conditions (Sections 196-200)?

   Ratification is the principal's subsequent adoption of an unauthorized act done on his behalf, which relates back to the date of the act. Conditions: the act must be done on behalf of an identifiable principal who was in existence and competent at the time; ratification must be of the whole act, with full knowledge, within reasonable time, and must not injure a third person.

6. When is a principal bound by an agent's act exceeding authority, and what is 'ostensible/apparent authority' (Sections 227, 237)?

   Where an agent does more than authorized and the authorized part is separable, the principal is bound by the authorized part only. Under S.237, a principal is bound by acts within the agent's apparent (ostensible) authority where the principal, by words or conduct, induced the third party to believe such acts were authorized.

7. How may an agency be terminated under Sections 201-210, and when is it irrevocable?

   Agency terminates by: revocation by the principal, renunciation by the agent, completion of business, death/insanity of either party, or insolvency of the principal. It is irrevocable where the agent has an interest in the subject-matter (agency coupled with interest) or where authority has been partly exercised.

8. Under Sections 5 to 8 of the Specific Relief Act, 1963, how may a person recover possession of specific immovable property?

   Section 5: a person entitled to possession of specific immovable property may recover it in the manner provided by the CPC (i.e., a title suit based on ownership). Section 6: a person dispossessed without his consent otherwise than in due course of law may, within 6 months, sue to recover possession without proving title.

9. What are the special features and bar regarding a suit under Section 6 of the Specific Relief Act?

   Suit must be filed within 6 months of dispossession; not maintainable against the Government; no appeal or review lies from any order/decree under S.6 (only revision); and it does not bar a person from filing a separate suit to establish title and recover possession. It is a summary remedy based on possession, not title.

10. Under Section 7 and 8 of the Specific Relief Act, how may movable property be recovered?

    Section 7: a person entitled to possession of specific movable property may recover it as per CPC. Section 8: any person having possession or control of a particular article of movable property, of which he is not the owner, may be compelled to deliver it specifically to the person entitled to immediate possession (where money compensation is not adequate, etc.).

11. What is 'specific performance' of a contract, and what is the position after the 2018 Amendment to the Specific Relief Act?

    Specific performance is a decree directing a party to actually perform the contract as agreed. After the 2018 amendment, specific performance is a general rule/right (no longer discretionary) under Section 10, enforceable except where barred under Section 11(2), 14 or 16; substituted performance (S.20) is also available.

12. Which contracts cannot be specifically enforced under Section 14 of the Specific Relief Act, 1963 (post-2018)?

    Contracts where a party has obtained substituted performance under S.20; contracts involving continuous duty the court cannot supervise; contracts so dependent on personal qualifications that the court cannot enforce material terms; and contracts which are in their nature determinable.

13. Who may obtain, and against whom may specific performance be enforced (Sections 15 and 19)?

    S.15: it may be obtained by a party to the contract, his representative-in-interest/principal, beneficiaries under marriage settlements, etc. S.19: it may be enforced against the party, his representative-in-interest/principal, a subsequent transferee for value with notice (not a bona fide purchaser for value without notice), and a person claiming under a void title.

14. What personal bars to relief of specific performance exist under Section 16 of the Specific Relief Act?

    Specific performance cannot be granted to a person who: (a) has obtained substituted performance under S.20; (b) has become incapable of performing/violates an essential term, or acts fraudulently; or (c) fails to prove that he has performed or has always been ready and willing to perform the essential terms of the contract (the 'readiness and willingness' requirement).

15. What is 'rectification of instruments' under Section 26 of the Specific Relief Act, and when is it allowed?

    Where, through fraud or a mutual mistake of the parties, a written instrument does not express their real intention, either party may sue to have the instrument rectified. The court may rectify it to express the real intention, provided this does not prejudice rights of bona fide third parties for value without notice.

16. When may a contract be rescinded under Section 27 of the Specific Relief Act?

    Rescission of a contract in writing may be adjudged where (a) the contract is voidable or terminable by the plaintiff, or (b) the contract is unlawful for causes not apparent on its face and the defendant is more to blame than the plaintiff. The court may refuse rescission where the plaintiff has expressly/impliedly ratified it or where third parties have acquired rights in good faith.

17. When may a written instrument be cancelled under Sections 31-33 of the Specific Relief Act?

    Any person against whom a written instrument is void or voidable, who has reasonable apprehension that it may cause him serious injury if left outstanding, may sue to have it adjudged void/voidable and cancelled. The court may order delivery up and cancellation; partial cancellation is allowed where the instrument affects several rights (S.32).

18. What relief does Section 34 of the Specific Relief Act provide (declaratory decree), and what is its proviso?

    Any person entitled to any legal character, or to any right as to property, may sue for a declaration that he is so entitled; the court may make such declaration. Proviso (bar): no court shall make a declaration where the plaintiff, being able to seek further relief than mere declaration, omits to do so (he must claim consequential relief, e.g., possession, if entitled).

19. What is the effect of a declaration under Section 35 of the Specific Relief Act?

    A declaration made under the Act is binding only on the parties to the suit, persons claiming through them respectively, and (where any party is a trustee) the persons for whom that party would be a trustee. It operates as res judicata between them but not against the world at large (it is a judgment in personam, not in rem).

20. What is 'preventive relief', and how is it granted under Section 36 of the Specific Relief Act?

    Preventive relief is granted to prevent a party from doing a wrongful act. It is granted at the discretion of the court by injunction, which may be temporary or perpetual.

21. Distinguish a 'temporary' injunction from a 'perpetual' injunction under Sections 37-38 of the Specific Relief Act.

    Temporary injunction (S.37): continues for a specified time or until further order of the court; may be granted at any stage of a suit and is regulated by Order 39 CPC. Perpetual injunction (S.38): granted by the decree at the final hearing on the merits, perpetually restraining the defendant from asserting a right or committing an act contrary to the plaintiff's rights.

22. In what cases may a perpetual injunction be granted under Section 38 of the Specific Relief Act?

    Where the defendant invades or threatens to invade the plaintiff's right to, or enjoyment of, property, a perpetual injunction may be granted especially where: there exists no standard for ascertaining actual damage; compensation in money would not afford adequate relief; the injunction is necessary to prevent a multiplicity of judicial proceedings; or there is an obligation existing in favour of the plaintiff (express/implied).

23. What is a 'mandatory injunction' under Section 39 of the Specific Relief Act?

    When, to prevent the breach of an obligation, it is necessary to compel the performance of certain acts which the court is capable of enforcing, the court may grant a mandatory injunction to prevent the breach complained of and also to compel the performance of the requisite acts.

24. When will an injunction be refused under Section 41 of the Specific Relief Act?

    An injunction cannot be granted, inter alia, to: restrain pending judicial proceedings (except to prevent multiplicity); restrain proceedings in a court not subordinate to the one before which the application is made; restrain a person from applying to a legislative body; restrain proceedings in a criminal matter; prevent breach of a contract not specifically enforceable; prevent a continuing breach the plaintiff has acquiesced in; or where equally efficacious relief is available, etc.

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