Law of Contracts & Specific Relief Act - Module 3 & 4 Flashcards

Vocabulary flashcards covering the Indian Contract Act (Module 3) and the Specific Relief Act, 1963 (Module 4), including definition of key terms, legal sections, and standard doctrines.

Discharge of Contract

The termination of the contractual relationship between the parties, effectively ending all obligations under the agreement.

Tender (Section 38)

An offer of performance made by the promisor to the promisee; if not accepted, the promisor is not responsible for non-performance provided the offer was unconditional and made at the proper time and place.

Novation (Section 62)

The substitution of a new contract for an existing one, either between the same parties or between different parties, requiring the consent of all parties involved.

Remission or Waiver (Section 63)

When a promisee dispenses with or remits the performance of a promise, or extends the time for performance, without the requirement of any consideration.

Doctrine of Frustration (Section 56)

Embodied in Paragraph $2$ of Section $56$, it refers to contracts becoming void when performance becomes impossible or unlawful due to an unforeseen, supervening event beyond the control of the parties.

Restitution of Benefit (Sections 64 & 65)

The legal obligation of a party who has received an advantage under a void or frustrated contract to restore that advantage or make compensation to the other party.

Quasi Contract

An obligation imposed by law based on the Principle of Equity and Natural Justice to prevent Unjust Enrichment, even in the absence of a formal contract.

Section 70 (Indian Contract Act)

An obligation for a person who enjoys the benefit of a lawful, non-gratuitous act or delivery to make compensation or restore the thing to the party who performed the act.

Anticipatory Breach (Section 39)

When a party refuses to perform their contract or disables themselves from performing before the arrival of the scheduled performance time, either expressly or impliedly.

Restitutio in Integrum

The underlying principle of damages in breach of contract cases, aimed at placing the injured party in the same financial position as if the contract had been fully performed.

Hadley v. Baxendale (1854)

The historical English case that established the rule for general and special damages, codified in India under Section $73$.

Liquidated Damages

A genuine and fair pre-estimate of loss agreed upon by parties in advance within the contract text.

Quantum Meruit

A Latin phrase meaning "as much as he has earned," allowing a party to recover the reasonable value of services rendered when a contract is intercepted or unfulfilled.

Section 6 (Specific Relief Act)

A summary remedy for a person dispossessed of immovable property without consent, requiring a suit to be filed within $6$ months of dispossession regardless of title.

Section 16(c) Readiness and Willingness

A personal bar to relief where the plaintiff must prove financial capacity (readiness) and mental intent (willingness) to perform their part of the contract.

Substituted Performance (Section 20)

The option for an aggrieved party to have a broken contract performed by a third party or their own agency and recover costs from the defaulting party after giving $30$ days' notice.

Rectification of Instruments (Section 26)

The process of correcting a written contract or instrument that, through fraud or mutual mistake, does not accurately express the real intention of the parties.

Declaratory Decree (Section 34)

A judicial declaration of a person's legal character or right to property, which is binding only on the parties to the suit and their representatives.

Temporary Injunction (Section 37(1))

A preventive relief granted for a specified period at any stage of a suit, based on a prima facie case, irreparable injury, and the balance of convenience.

Mandatory Injunction (Section 39)

An order of the court to compel the performance of certain acts necessary to prevent the breach of an obligation.

Section 41(ha) Infrastructure Exemption

A provision added in $2018$ stating that no injunction shall be granted if it would cause impediment or delay in the progress or completion of specified infrastructure projects.