Contract act 26 to 36

     Section 26,27 and 28 

Section 26.

Agreement in restraint of marriage ----

Every agreement in restraint of the marriage of any person 

Other than a minor is void .

Landmark decision.

Rai rani versus Gulab rani 

Two widows of a death person had entered into an agreement if any of them remarried she would forfeit her right in property .

Decision ----it was held in this case that this contract was not void .this contract does not restrain over marriage .

Section 27----

Every agreement by which any one is restrained from exercising a lawful profession ,trade or business of any kind is to that extent void .

Exception 1----saving of agreement not to carry on business of which good will is sold ---

One who sells the good will of a business may agree with the buyer to refrain from carrying on a similar business within specified local limits so long as the buyer or any person deriving title to the goodwill from him carries on a like business there in provided that such limits appear to the court reasonable regard being had to the nature of the business.

Landmark case ---

Madhav chandra versus Rajkumar 

Facts---Plaintiff and respondent used to  run shops  in same locality .here respondent had entered into a contract with plaintiff that he will give money to  plaintiff if he will establish his shop at another place .the plaintiff did so .when respondent did not give money .case had been filed .

Decision ----this agreement was void . because trade can't be restricted by contrac********************

Land mark case no .2

Nordanfelt versus nordan felt guns and ammunition company ltd.

Facts ---the inventor of gun and dynamite had sold good will of his business to buyer .he had contracted fir two restrictions with buyer 

1.he will not do such business for 25 years 

2.he had gone to another company for service 

The plaintiff had filed a suit to stop him .

The first part is valid but second part is void .because such restrictions are against public policy.

Landmark case no.3

Vanquvar malt and sake bearing company ltd.versus bankoover beeries ltd.

A company had got licence of beer and booze .but company used to make sake only .which was japanese booze .the goods had been purchased by government.this company had entered into a contract with another company of booze .the former company had sold it's goodwill of booze and beer 🍺.case had been filed by second company.

Decision ---the first company used not be make booze .so that company had no right to sell this goodwill .in this way this contract was without base and worthless.

Land mark case no.4

Sekh kalu versus Ram sharan Bhagat 

A combseller had entered into a contract with all comb makers of Patna .they would sell goods to him for life  and  after his death to his heir .it was decided that contract was void under section 27 .

Exception

1.11(2)----parteners can make agreement that they cannot do any business during continuence of partnership 

2. 36(2)--any partner can make a contract with another partner that he will not carry a business during such limits and specified periods 

3.section 54 ---in the case of dissolution the contract can be made that some partners or all partners cannot do business in local limits and 

Section. 28 

Agreement in restraint of legal proceeding,void ----(every agreement,

A.by which any party there to is restricted absolutely from enforcing his right under or in respect of any contract by the usual legal proceeding in the ordinary tribunals or which limits the time within which he may thus enforce his right or

B.which extinguishes the right of any party thereto or discharge any party thereto from any liability under or in respect of any contract on the expiry.of a specified period so as to restrict any party from enforcing his right  is void to that extent.

Exception 1-----saving of contract to refer to arbitration dispute that may arise ----this section shall not render illegal a contact ,by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute of the dispute so referred .

Exception 2 ----saving of contract to refer questions that have already arisen or affect any provision of any law in force for the time being to reference to arbitration.

Landmark judgement 

K.coringa oil company versus coyaglar 

This section is applicable in such agreement in which the parties are restrained to take shelter of court and judicial proceedings.

If this condition is applicable that no suit can be filed to breach of contract .this condition is void .both parties are prevented to enforce their right.

But right to appeal cannot be prevented from this section.

   Section 29 . agreement void for uncertainty ----

Agreements the meaning of which is not certain or capable of being made certain are void .

Landmark judgement 

1.Goothing versus lin

A horse had been purchased on this condition that horse was lucky .this agreement was void due to uncertainty.

2.chandra shekher versus Gopinath 

An agreement had been made between tenant and owner that tenant will  make a drawing  room in his house and the cost will be deducted from rent .it was decided that agreement is not void . although cost of construction was not mentioned in the contract .but both parties are agreed that cost of construction will be deducted from rent .

Illustrations 

A.A agrees to sell to B a hundred tons of oil there is nothing whatever to show what kind of oil was intended.the agreement is void for uncertainty.

B.,A agrees to sell to B one hundred tons of oil of a specified descriptions knowns as an article of commerce .there is no uncertainty here to make the agreement void .

C.A who is dealer in coconut oil only agrees to sell to B one hundred tons of oil .the nature of A 's trades affords an indication of the meaning of the words and A has entered into  contract for the sale of one hundred tons of coconut oil .

D.A agrees to sell to B all the grain in my granary at Ramnagar.the is no uncertainty here to make the agreement void .

E.A agrees to sell B one thousand maunds of Rice at a price to be fixed by C.as the price is capable of being made certain,there is no uncertainty here to make the agreement is void .

F.A agrees to sell to B my white horse 🐎 for rupees five hundred or rupees one thousand.there is nothing to show which of the two prices was to be given the agreement is void .

Section 30 . agreement by way of wager ,void ----

Agreement by way of wager are void and not suit shall be brought for receiving any thing alleged to be won on any wager or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made .

Exception in favour of certain prizes for horse racing ----this section shall not be deemed to render unlawful a subscription or contribution or agreement to subscribe or contribute made or entered into for or towards any plate ,prize or sum of money ,of the value or amount of five hundred rupees or upward to be awarded to the winner or winners of any horse race .

  Section 31 to 36 

Section 31 . contigent contract defined ----

A contigent contract is a contract to do or not to do something if some event collateral to such contract does or does not happen .

Landmark judgement 

Secretary of state for India versus A .J ara thun

Facts ---some timbers was to be supplied  to the Government department.the permission of timber was to be given by superintendent of factory .the timber was sent .he did not accept .the contractor had filed a suit to breach of contract 

Decision ---

In this case permission of superintendent is very essential which was not fulfilled .so no contract had been made .so there is no  question is arise to breach of contract ...

Landmark case no.2

Ramjan versus Hussani 

When plaintiff will redeem the mortgaged estate .on that day the owner will execute sell deed in the name of plaintiff .this is example of contigent contract .

Illustrations 

A contract To pay B Rs. 10,000/.if B 's house is burnt .this is a contigent contract.

Section 32 .enforcement of contract contigent on an event happening ---

Contigent contracts to do or not to do anything if an uncertain future event happens , cannot be enforced by law unless and until that event has happened.

If the event becomes impossible such contracts become void .

Landmark judgement 

V .P.Desa versus union of India 

A car was insured for damage in traffic .but the car was damaged before come in traffic.the insurance company had not been held liable here .

Illustrations 

A.A makes a contract with B to buy B's horse if A survives C.this contract cannot be enforced by law unless or until C dies in A 's lifetime .

B.A makes a contract with B to sell a horse to B at a specified price.if C to whom the horse has been offered,refuses to buy him .the contract cannot be enforced by law unless and until C refuses to buy the horse .

C.A contracts to pay B a sum of money when B marries C.C dies without being married to B .the contract becomes void .

Section 33 .enforcement of contracts contigent on an event not happening ----

Contigent of contracts to do or not to any thing if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible and not before .

Illustrations 

A.A agrees to pay B a sum of money if a certain ship 🚢 does not return.the ship is sunk.the contract can be enforced when the ship sinks .

Section 34 ---when event on which contract is contiguous to be deemed impossible,if it is the future conduct of a living person ---

If the future event on which a contract is contigent is the way in which a person will act at an unspecified time ,the event shall be considered to become impossible when such person does anything which renders it impossible that he should so act within any definite time or otherwise than under further contingencies.

Illustrations 

A agrees to pay B a sum of money if B marries C.C marries D .the marriage of B to C must now be considered impossible although it is possible that D may die and that C may afterwards marry B.

Section 35 .---when contracts become void ,which are contigent on happening of specified event within fixed time ----

Contigent contracts to do or not to do anything if a specified uncertain event happens within a fixed time ,become void if at the expiration of the time fixed ,such event has not happened or if before the time fixed such event becomes impossible.

When  contracts may be enforced which are contigent on specified event not happening within fixed time -----

Contigent contracts to do or not to do anything if a specified uncertain event does not happen within a fixed time ,may be enforced by law when the time fixed has expired,if it becomes certain that such event will not happen.

Illustrations 

A.A promises to B a sum of money if a certain ship returns within a year .the contract may be enforced if the ship returns within the year and becomes void if the ship is burnt within the year .

B.A promises to pay B a sum of money if certain ship doesn't return within a year .the contract may be enforced if the ship does not return within the year or is burnt within the year.

Section 36 . agreement contigent on impossible events void ----

Contigent agreements to do or not to do anything if an impossible event happens are void  whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made .

Illustrations 

A.A agrees to pay B 1000 rupees if two straight lines should enclose a space .the agreement is void .

B.A agrees to pay B 1000 rupees .if B will marry A 'S daughter C .C was dead at the time of agreement.the agreement is void .