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Contract law is foundational in the legal profession and is crucial for judiciary aspirants aiming to develop a deep understanding of core legal principles. Within the vast field of contract law, certain cases stand out for their impact on Indian jurisprudence, shaping how contracts are interpreted, enforced, and resolved in legal practice. Understanding these landmark contract law cases is essential not only for clearing judiciary exams but also for laying a strong foundation for practical legal practice. This blog delves into the top 5 contract law cases for judiciary aspirants, providing insight into must-know contract law cases and examining the principles that have withstood the test of time. These cases offer judiciary aspirants valuable perspectives on the essentials of contract law and showcase the application of theoretical knowledge in real-world scenarios, helping bridge the gap between legal theory and practice.

1. Mohori Bibee v. Dharmodas Ghose (1903)

Facts:
Dharmodas Ghose, a minor, mortgaged his property to Brahmo Dutt, a moneylender. At the time of the transaction, Brahmo Dutt’s agent was aware that Ghose was a minor. Ghose later filed a suit, contending that the mortgage was void as he was a minor and thus incapable of entering into a contract.

Ratio Decidendi:
The Privy Council held that a contract with a minor is void ab initio under Section 11 of the Indian Contract Act, 1872. Since a minor lacks the legal capacity to contract, any agreement entered into by a minor is not enforceable in law.

Relevant Section:

Section 11: Competency to contract.

2. Carlill v. Carbolic Smoke Ball Co. (1893)

Facts:
The Carbolic Smoke Ball Company advertised that anyone who used their product as directed and still contracted influenza would be entitled to £100. Mrs. Carlill used the smoke ball as per instructions but still contracted influenza. She sued the company to claim the reward.

Ratio Decidendi:
The court held that the advertisement constituted a unilateral offer, which Mrs. Carlill had accepted by performing the conditions specified. This case laid down the principles of unilateral contracts and established that an advertisement can be an offer to the public if it contains a clear promise to pay, subject to conditions being met.

Relevant Section:

Section 8: Acceptance by performing the conditions of a proposal.

3. Balfour v. Balfour (1919)

Facts:
Mr. Balfour, while working in Ceylon, promised to pay his wife a monthly allowance while she stayed in England. Their relationship deteriorated, and Mrs. Balfour sued for the allowance. Mr. Balfour contended that the agreement was not legally binding.

Ratio Decidendi:
The court ruled that agreements between spouses are not contracts unless there is a clear intention to create legal relations. In this case, the court held that the agreement was purely domestic and lacked the intention to create a legal obligation.

Relevant Section:

Section 10: What agreements are contracts (must include intention to create legal relations).

4. Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. (1915)

Facts:
Dunlop, a tire manufacturer, made an agreement with Dew & Co., a dealer, that the dealer would not sell Dunlop’s tires below a specified price. Dew sold the tires to Selfridge, who resold them at a price below the agreed-upon minimum. Dunlop sued Selfridge.

Ratio Decidendi:
The court held that Dunlop could not sue Selfridge as there was no direct contract between them. This case established the principle of privity of contract, meaning only parties to a contract can sue or be sued on it.

Relevant Section:

Section 2(h): Definition of a contract (requires privity of contract).

5. Hadley v. Baxendale (1854)

Facts:
Hadley’s mill stopped due to a broken crankshaft. He contracted with Baxendale to deliver the shaft to a third party for repair. Due to a delay in delivery, Hadley suffered significant financial loss and sued Baxendale for breach of contract.

Ratio Decidendi:
The court ruled that the loss could not be recovered as it was not within the reasonable contemplation of both parties at the time of the contract. This case laid down the rule of remoteness of damages—only losses that are foreseeable or that have been communicated to the other party can be claimed.

Relevant Section:

Section 73: Compensation for loss or damage caused by breach of contract.

Conclusion

The importance of contract law in the judiciary exams cannot be overstated, and knowing these essential contract law cases equips judiciary aspirants with insights that are both academically vital and practically applicable. Each of these landmark cases has played a pivotal role in defining contract law principles that remain relevant for judiciary aspirants and legal professionals alike. By understanding these cases and their implications, judiciary aspirants can not only enhance their exam preparation but also build a robust foundation for their future careers in legal practice. In summary, these cases demonstrate how contract law principles are applied, interpreted, and enforced, making them indispensable for anyone seeking a comprehensive grasp of contract law in the Indian judicial context.