INTRODUCTION

In the given project, researcher has done a book review on H.K Saharay’s, Dutt on contrcts,
the Indian contract act, 1872.This act was passed mainly to define and amend existing laws
relating to contract in India. The Act is not exhaustive though it repeals the provisions of the
Royal Charters of 1753 and 1774.1 Elements of contracts are there in the Transfer of Property
Act 1882, Negotiable Instruments Act 1881 and the Indian Railways Act 1890 besides those
which were expressly repealed as in the Schedule.2 The personal laws of the Hindus and the
Muslim are also applicable in some matters. All these factors make indispensable all the
judicial pronouncements carved out as having legal consequences. But so far as it goes the
/law on contracts is exhaustive and imperative.

In today’s world we enter into contracts each day knowingly or unknowingly. These contracts
create certain rights and duties on the contracting parties which are governed by the Indian
contract Act, 1872. This book gives a deep understanding on the various provisions covered
under this act. The book also provides a large number of related cases to provide deeper
understanding of the subject. This book is a credible source for any person who is related
with the field of law. It can be used by lawyers, law students and scholars.

1
History Of The Indian Contract Act 1872 ,(30th Jan 2018, 11:57 AM), https://www.lawteacher.net/free-law-
essays/contract-law/history-of-the-indian-contract-act-1872-contract-law-essay.php
2
Indian Contract Act,(25TH Jan 2018, 10:15 PM), https://www.netlawman.co.in/ia/indian-contract-act

1
AIMS AND OBJECTIVES

The aim and objective of this research project is-

 To do a book review on H.K Saharay’s, Dutt on contracts, the Indian Contract Act,
1872.
 To understand the provisions of Indian Contract Act, 1872 in the given book.

2
RESEARCH METHODOLOGY

For the purpose of research, researcher has relied on the book – H.K.Saharay, Dutt on
contracts, The Indian Contract Act, 1872 and the bare act of The Indian Contract Act, 1872.
The researcher has also relied on various articles and web sources. The source from which the
material for this research collected are secondary. So the methodology used in the research
has been Doctrinal. Non-doctrinal method has not been used by the researcher in this
research. The researcher has relied on primary sources to look for the information relating to
the statutes.

The research is also deductive in nature since the hypothesis is formed by referring to various
sources, and then coming to a conclusion. The research methodology used in this project is
qualitative research which is done by gathering and analysing the work which has already
been done on this topic and then coming to a conclusion. The project is done by gathering
relevant data from reliable sources. All the sources studied during this project are secondary
sources. The authenticity of these sources is checked. The validity of the text has been
evaluated by the researcher and then has been directed into the work so as to comprehend.

3
CONTENT

With the advent of globalisation, Indian economy and society is witnessing the revival of
contract and dilution of state. The service and manufacturing industries are subjected to
deregulation. They are on the increase accompanied by added activity in the market, the
hallmark of which is contract. State is step by step withdrawing itself from the economic and
social life of the people and is allowing them to cave out their own niche by contracting for
their own destiny. At the corporate level also there are increasing incidents of contractual
activities including those involving technological collaboration agreements.3 Thus we can say
that these contractual activities are likely to increase and gain greater importance, this will
give rise to the need of understanding the complex laws of contract. The increased
international commercial and business activity will give rise to increase in disputes on
contracts. Like any other law, the law of contract is framed not just by legislature, but equal
important part is played by judiciary, jurists and legal academics.

The law concerned with contracts in India are contained in Indian contract Act, 1872. The
Indian contract act 1872 is regarded as one of the most beautiful piece of legislative drafting.
It is a colonial law. This act was passed in India by British India and is passed on the
principles of English common law.4 This act is applicable all over India except Jammu and
Kashmir.5 It helps in determining circumstances in which promises made by the parties to a
contract shall be legally binding on them.6It was enacted on 25th April, 1872 and
subsequently came into force on the first day of September 1872. The extent of modifications
made in the Act as per the Indian conditions and its adaptability to the Indian economy is an
important area of research. In this regard it is pertinent to note that since the enactment of the
Act there have been no amendments and thus the Law that was made in 1872 still stands go.7
In today’s time all of us enter into contact each and every day knowingly or unknowingly.
Each of these contracts creates certain obligations and duties on the contracting parties.

3
Indian Contract Act, https://www.netlawman.co.in/ia/indian-contract-act
4
Vikash kumar, Purpose, Evolution and Scope of law of contracts, (7th Jan 2018, 11:54 PM)
https://lawnotes4students.blogspot.in/2015/04/contract-1-qdefine-purpose-evolution.html
5
Indian Contract Act, https://www.netlawman.co.in/ia/indian-contract-act
6
Vikash kumar, Purpose, Evolution and Scope of law of contracts, (7th Jan 2018, 11:54 PM)
https://lawnotes4students.blogspot.in/2015/04/contract-1-qdefine-purpose-evolution.html
7
History Of The Indian Contract Act 1872,(12th Jan 2018, 11:10 AM) https://www.lawteacher.net/free-law-
essays/contract-law/history-of-the-indian-contract-act-1872-contract-law-essay.php

4
Hence, Indian contract Act 1872 which is skeletal in nature, deals with the enforcement of
these rights and duties on the contracting parties.8

The present book, H. K. Saharay, Dutt on Contract- The Indian Contract Act, 1872 gives a
detailed analysis of The Indian Contract Act 1872 , its provisions and decisions based on this
act. Contract law scholars are very well aware that Indian case law on contracts are on many
points is quite scanty.9 Therefore, readers have to rely on English case laws for guidance in a
grey area. Such situations have been faced in India many times. To give just one example,
while deciding while deciding the case of Bhagwandas Kedia v. Girdharial and sons10,
supreme court of India followed the English case of Entores Ltd. V. Miles far East
Corporation11. In Bhagwandas Kedia V.Girdharilal, Plaintiff offered to get certain goods
supplied at Ahmedabad and defendants accepted the offer of the contract at Khamgaon. On
failure to supply goods, plaintiff sued them at Ahmedabad. Therefore dispute arose as to
where was contract formed- at Khamgaon where acceptance was given by defendants or at
Ahmedabad where acceptance was received by plaintiff .The Supreme court held that in
present case The contract was formed by the parties when acceptance was duly
communicated to the offeror and therefore the contract was formed at Ahmedabad.12

In accordance with these realities it has to be admitted that the task of an author on this
subject is very difficult. The author will have to refer to a large number of cases to shed light
on various points left obscure by the legislature. The present book meets these challenges by
bringing out a good commentary on the subject. The publishers too have maintained the
quality of the paper, the print and the get up, with minimal printing errors.

The book contains large number of cases, both Indian and foreign which gives a deeper
understanding of various provisions of The Indian Contract Act 1872. All the cases are
thoroughly explained and are given topic wise not serial wise. This helps a lot in
understanding the topics and it makes task easier for the researcher in gathering the

8
Vikash kumar, Purpose, Evolution and Scope of law of contracts, ( 28 Jan, 2018, 11:54 PM)
https://lawnotes4students.blogspot.in/2015/04/contract-1-qdefine-purpose-evolution.html
9
Indian Contract Act, http://lawnn.com/law-contract-types-contract-cases-indian-contract- act-1872r
10
Bhagwandas Kedia v. Girdharial & Sons, A.I.R. (1966) S.C.543
11
Entores Ltd. V. Miles far East Corporation, (1955) 2 Q.B. 327.
12
Dutt on contract- The Indian contract Act, 1872,(H.K.Sahary, 11th edition 2013)

5
information related to the various topics. The table of cases is also mentioned at the starting
28of the book which helps in gathering the data.

The book is basically divided into eleven chapters as divided in the Indian Contract Act ,
1872. The headings of the chapters are similar to the headings that are in The Indian Contract
Act 1872. The first chapter deals with communication, Acceptance, and Revocation of the
proposals. So basically chapter one of the book deals with the provisions and cases related to
section 113 to section 914 of Indian Contract Act 1872. The first chapter also gives a detailed
account on the Historical base of the Indian Contract Act 1872. The draft of this act was
prepared by the Third Law commission15 which was mainly based on the English Common
Law relating to contract.16 The chapter also deals with the scope and limitations of the act.
The first chapter systematically describes the various elements to form a valid contract. An
agreement enforceable by law is a contract.17It then describes what is proposal and essential
elements of valid proposal. According to Sec. 2(a) when one person signifies to another his
willingness to do or to abstain from doing anything, with a view to obtaining the assent of
that other to such act or abstinence, he is said to make a proposal18. This chapter contain all
the provisions till Sec. 9 of Indian contract Act. Each and every provision is described in
detail and examples are also given for a deeper understanding of the book. The exceptions of
various provisions are also given side by side to avoid confusion.

Chapter 2 deals with valid contracts, voidable contracts and void agreements. It provides
distinctions between the three. It gives the detailed analysis of provisions contained under
section 1019 to Sec. 3020, section 10 and 11 talks about the agreements that are contracts and

13
The Indian Contract Act 1872 Sec-1 This Act may be called the Indian Contract Act, 1872.
Extent, commencement-It extends to the whole of India [except the State of Jammu and Kashmir]; and it shall
come into force on the first day of September, 1872
14
The Indian Contract Act 1872 Sec-9 In so far as the proposal or acceptance of any promise is made in words,
the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the
promise is said to be implied
15
The Third Law Commission was established in 1961 under the Chairmanship of Justice J. L. Kapur. It stayed
in office till 1964.
16
Dutt on contract- The Indian contract Act, 1872,(H.K.Sahary, 11 th edition 2013)
17
Sec. 2(d) Indian contract Act, 1872 (9 of 1972)
18
The Indian Contract Act, 1872 (9 of 1872)
19
The Indian Contract Act 1872 (9 of 1872) Sec-10All agreements are contracts if they are made by the free
consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby
expressly declared to be void.
Nothing herein contained shall affect any law in force in [India], and not hereby expressly repealed, by which
any contract is required to be made in writing or in the presence of witnesses, or any law relating to the
registration of documents.

6
who is competent to contract. This chapter includes various mental elements as required for a
valid contract. This chapter also deals with coercion, undue influence, misrepresentation,
fraud etc. This chapter also deals with the concept of wagering agreements. All the types of
contacts and their exceptions are described in detail in this chapter. There are certain types of
agreements which are not enforceable by law. These types of agreements are called as void
agreements.21 This chapter also deals with these types of agreements. There are certain types
of contracts which are enforceable only at the will of suffering party, these types of
agreements are called as voidable agreements. This chapter also contains these agreements.

Chapter 3 deals with contingent contracts. The word contingent ordinarily means ‘subject to
chance’22. In the Indian Contract Act, 1872, this word has been used to mean conditional, just
the way we use it generally. Uncertainty is the hall-mark of the future. Estimating the chances
of an uncertainty becoming certain, calculating the results if the event doesn’t happen and
then measuring the potentiality to deal with its consequences are all about contingent
contracts.23 This chapter deals with various aspects and exceptions relating to contingent
contracts.

Chapter 4 is primarily concerned about performance of contracts. It focuses on obligation on

the parties to contract and what is the effect of refusal to accept offer of performance. It
discusses sections which are between section 37 to section 67. Various aspects are delt in
details.

Chapter 5 deals with various relations that resemble that created by contract. It discusses
provisions of section 68 to section 75 of Indian contract act, 1872.It also discusses the
liability of person to whom money is paid, or thing delivered, by mistake or under coercion.

20
The Indian contract act 1872 (9 of 1872) sec-30 Agreements by way of wager are void; and no suit shall be
brought for recovering anything alleged to be won on any wager, or entrusted to a person to abide the result of
any game or other uncertain event on which any wager is made.
21
Dutt on contract- The Indian contract Act, 1872,(H.K.Sahary, 11th edition 2013)
22
Dutt on contract- The Indian contract Act, 1872,(H.K.Sahary, 11th edition 2013)
23
Yashu Bansal, Contingent contracts,(24th Jan 2018, 11:18 PM)
https://www.lawctopus.com/academike/contingent-contracts/

7
Chapter 6 deals with consequences of Breach of contract24. It covers section 31 to section 36
of Indian Contract Act 1872. It deals with compensation of loss or damages caused by breach
of contract.
Chapter 7 deals with sale of goods and chapter 8 deals with indemnity and guarantee.
Basically Indemnity and guarantee are sides of the same coin. Both are modes of
compensation but they differ a lot. A contract where one party promises to save the other
from any loss caused to him by the conduct of promisor himself or any other person is called
contract of indemnity25. Whereas a contract to perform the obligation or to discharge the
liability of a third party in case of its default is called contract of guarantee26.
It illustrates section 7627 to section 12328 of The Indian Contract Act, 1872.

Chapter 9 deals with bailment of pledges and covers the explanation of provisions covered
under section 14829 to section 181. Basically bailment is the transfer of possession but not
ownership of personal property (as goods) for a limited time or specified purpose (as
transportation) such that the individual or business entity taking possession is liable to some
extent for loss or damage to the property. This chapter includes various provisions and cases
under bailment law.
Chapter 10 of this book deals with Agency appointment and authority of agents. It defines the
meaning and difference between agent30 and principal31. It shows who can be employed as
agent and what type of consideration is required under it. It also discusses about sub agents.

24
A breach of contract is a party’s failure to perform some contracted-for or agreed upon act, or his failure to
comply with a duty imposed by law which is owned to another or to society. B.V.R. Sarma, Adjudication of
claim for damages under Section 73,74 and 75 of Indian Contract Act, 1872 (Jan 31, 2018, 10:40 AM)
http://docs.manupatra.in/newsline/articles/Upload/30C28D5D-262B-4A4-AE17-C4D86F92BCE0.pdf
25
The Indian Contract Act, 1872 (9 of 1872)
26
The Indian Contract Act, 1872 (9 of 1872)
27
The Indian Contract Act, 1872 sec -76 Sale of Goods.— [Rep. by the Sale of Goods Act, 1930 (3 of 1930)
sec. 65]
28
The Indian Contract Act, 1872 sec-123 Sale of Goods.— [Rep. by the Sale of Goods Act, 1930 (3 of 1930)
sec. 65]
29
The Indian Contract Act 1872 sec-148 A "bailment" is the delivery of goods by one person to another for
some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise
disposed of according to the directions of the person delivering them.
The person delivering the goods is called the "bailor". The person to whom they are delivered is called the
"bailee"
30
Sec. 182. "Agent" and "principal" defined or to represent another An "agent" is a person employed to do any
act for another or to represent another in dealing with third persons. The person for whom such act is done, or
who is so represented, is called the "Principal”.
31
Sec 182."Agent" and "principal" defined or to represent another An "agent" is a person employed to do any act
for another or to represent another in dealing with third persons. The person for whom such act is done, or who
is so represented, is called the "Principal”.

8
This chapter contains a large number of case laws related to agents and agencies. It also
covers the provisions of section 18232 to section 21433. It is one of the largest chapter of the
book and it covers all the aspects of agents and principals in great depth.
Chapter 11 discusses about partnership which has been repealed.

The book contains synopsis before each chapters which is very helpful in getting an insight of
the chapter. The book is written in a very a systematic manner, although there are a few
places the language of the book is quite difficult to understand. But overall it a relevant book
for references and researches as it does not only cover various provisions of Indian Contract
Act 1872 but also gives detailed examples and case discussions.

The book would have become more useful and interesting if attempts had been made to
isolate the principles involved and to classify them thematically. This is possible without
writing the book subject-wise but within the framework of section-wise commentary itself.
For example the Mulla’s book on contract law meets this requirement to quite an extent.

The present book is one of the best available materials for Indian law of contracts. It covers
each and every provision of the act in great depth. It can be used as both course book or
reference material. The present book is useful for lawyers, law students and scholars. This
book can also be used by scholars and researchers for research purposes as at contains a huge
number of Indian as well as foreign cases related to the law of contracts.

In this edition, inclusion of 'Model Forms of Agreements' and 'Model Forms of Pleadings'
has enhanced the importance and practical utility of the work. All the important foreign
decisions relating to the subject given in appropriate places have enriched the work. Issues
like liquidated damages, computer contract, contempt of court, marriage brokage contract,
specific performance of contract, estoppel, family settlement, undue influence, indemnity,
maritime lien, continued on inside back cover contributory negligence, surety, writ-petition,

32
The Indian Contract Act,1872 sec-182 An "agent" is a person employed to do any act for another, who is so in
dealings with third persons. The person for whom such act is done, or represented, is called the "principal"
33
The Indian Contract Act,1872 sec- 214 It is the duty of an agent in case of difficulty, to use all reasonable
diligence in communicating with his principal, and in seeking to obtain his instructions.

9
etc. are discussed vividly in the light of decisions of apex court and that of different High
Court.34

34 http://www.wadhwabooks.in/contract-law-specific-relief-act-/183-dutt-on-contract-the-indian-contract-act-
1872-9788171772605.html

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 ANNEXE

List of chapter headings35

The Indian Contract Act 1872
I. Of the Communication, Acceptance and Revocation of Proposals
II. Of Contracts, Voidable Contracts and Void Agreements
III. Of Contingent Contract
IV. Of the Performance of Contracts
V. Of certain Relations
VI. Of the Consequences of Breach of Contract
VII. Sale of Goods
VIII. Of indemnity and Guarantee
IX. Of Bailment
X. Agency
XI. Of Partnership - Repealed
Schedule - Repealed
Buildings and Construction Contract
Government Contract
Joint Venture
Computer Contract
Certain Important Terms/Clauses of Contract
Some Words and Expressions Used in Contracts
Model Forms of Agreements
Model Forms of Pleadings
Index

35
Dutt on contract- The Indian contract Act, 1872,(H.K.Sahary, 11 th edition 2013)

11
Conclusion

The researcher concludes that the book H.K.Saharay, Dutt on contract, The Indian Contract
Act, 1872 , 11th edition 2013 is a relevant source for Indian Contract Act, 1872. The book
describes each and every provision of the act is detail with proper examples and illustrations.
The book is credible source of information for lawyers, law students and scholars. The book
can also be used as tool for research as it contains a large number of Indian as well as foreign
case laws.

The present book is a classic book on the Indian contract Act, 1872. It is considered as one of
the most beautiful piece of legislative drafting. It has to be admitted that the task of an author
on this subject is very difficult. The author will have to refer to a large number of cases to
shed light on various points left obscure by the legislature. The present book meets these
challenges by bringing out a good commentary on the subject. The publishers too have
maintained the quality of the paper, the print and the get up, with minimal printing errors.

The book would have become more useful if attempts had been made to isolate the principals
involved and classify them thematically. This is possible without writing the book subject
wise but within the framework of section wise commentary. For example Mulla’s book on
Contract meets this requirement to quite an extends. The main emphasis in it is on sections
only but, if a good introduction to the book could be added raising and discussing issues of
critical importance, including turning points in case law and giving an overview of the
working of the law of contract, it would have been highly appreciated by the reader,
especially legal academics and other law scholars. The articulation of basic issues requires a
juristic thinking and not just citation of case after case as concept such as supervening
impossibility, quasi-contract, consideration, public policy, quantum meruit, among others, do
need a thematic explanation.

Despite this, it is without doubt that the book will continue to remain one of the leading
commentaries on the subject as it meets the basic needs of the readers of contract law. One
can also say with confidence that it will benefit lawyers, students and teachers alike.

12
BIBLIOGRAPHY

Books referred:
 Dutt on Contract, The Indian Contract Act, 1872, Eastern law House ,2013.
 The Indian Contract Act,1872, Act 9 of 1872.

Referances:
 https://lawnotes4students.blogspot.in/2015/04/contract-1-qdefine-purpose-
evolution.html
 https://www.lawteacher.net/free-law-essays/contract-law/history-of-the-indian-
contract-act-1872-contract-law-essay.php
 https://www.lawctopus.com/academike/contingent-contracts/

13