The Indian Contract Act 1872

• SCOPE OF THE ACT:

• The Contract Act came into force on 1 September

1872. It was passed and implemented to control
various kinds of commercial and business contracts.
• The law of contract creates jus in personam and not
jus in rem. Jus in personam means personal rights—
the rights against a person or a party with whom
you have entered into a contract. Therefore, it can
be said that jus in personam provides the right to a
contracting party to claim against another.
• WHAT IS A CONTRACT?
• Section 2(h) of the Indian Contract Act, 1872 states that
'an agreement enforceable by law is contract
• We can summarize it as under.
• Contract = An agreement + enforceable by law
• Agreement:
• According to section 2(e), “An agreement means every
promise & every set of promises, forming consideration
for each other”
• Promise
• As per Section 2(b) of the Contract Act, a proposal
when accepted becomes a promise.
• Promise = Proposal by one person + its acceptance by
another person
• Consensus-ad-idem:
• Before there can be an agreement, both the parties
must agree upon the subject matter of the
agreement(same thing) in the same sense & at the
same time.
• ESSENTIAL ELEMENTS OF VALID CONTRACTS—
SECTION 10
1. Offer and Acceptance
An offer is a starting point for any contract. The offer
must be accepted to form a valid contract.
2. Intention to Create Legal Relation
• There must be an intention to create a legal
relation. In all social, domestic, moral, religious or
political agreements, the usual presumption is that
the parties do not intend to create the legal
obligations. However, in business agreements, the
usual presumption is that the parties intend to
create the legal obligations.
• Example
• A invites B to a dinner and B accepts it. If A tails to
serve the dinner, B cannot go to court. The
invitation for dinner is a social agreement.
• Lawful Consideration
• The lawful consideration means something in
return. As a contract contains the reciprocal set of
promises, a consideration is necessary. The
consideration must be lawful and should have a
commercial value.
• Example
• A promises to pay $50,000 on a certain date to B
without any promise in exchange. This is not a valid
contract.
• Free Consent
• It is essential for every contract that, there must be a
free & genuine consent of all the parties.
• According to Section 14, “ A consent is said to be free, if
it is not caused by coercion, undue influence, fraud,
mis representation or mistake.”
• The parties should be of same mind on all material
terms of the contract.
• Example
• A has two cars—one black and the other white. He
offers to sell one of his cars to B. A intends to sell the
black one while B accepts the offer believing that it is
for the white car. Here, A and B are not thinking in the
same sense of a particular thing. In this situation, there
is a mistake, so it cannot be said to be a free consent.
• Lawful Object
• Every agreement has some objects or purposes. The
object of an agreement should not be illegal,
immoral or opposed to the public policy. In simple
words, we can say that the object of an agreement
must be lawful.
• Example
• A promised to pay Rs. 1 lakh to B to kill C. The killing
of a person is punishable under the IPC. Therefore,
the promise is unlawful and void.
• Capacity of Parties
• Every person is not competent to enter into a
contract. Person who has attained the age of
majority with a sound mind and not disqualified
under any act is competent to enter into a contract.
• Agreement Must Not Be Expressly Declared Void
or Illegal
• If a certain agreement is expressly declared to be
void by the law of country then such an agreement,
if entered into, shall not be enforceable by the
court.
• Certainty of Meaning
• An agreement contains terms as decided by the
parties. The terms of agreement must be certain
and unambiguous. If the terms of an agreement are
uncertain, it is not a valid contract.
• Example
• A agreed to pay Rs. 5 lakh to B for an ultra-modern
decoration of his drawing room. The agreement is
void because the meaning of the term ultra-
modern' is not certain.
• Possibility to Perform
• Every agreement contains reciprocal promises. The
promises under the contract must be possible to
perform. If the parties have agreed on the contract
which contains any promise not possible to perform
in real life, the contract will not be considered as a
valid contract.
• Example
• A agrees to discover treasure by magic for B. The
agreement is void because the act in itself is
impossible to be performed from the very
beginning.
• Legal Formalities
• In some cases, the document in which the contract is
incorporated has to be stamped. In some other cases, a
contract, besides being a written one, has to be
registered. Thus, where there is a statutory
requirement that the contract should either be made in
writing or registered, the required formalities must be
complied with.

Therefore, we can say that an agreement will become a

contract when it satisfies all the essentials of a valid
contract. If any one of the elements of a valid contract
is missing, it is treated as an invalid contract. All the
agreements may or may not be a contract but all the
contracts are basically agreements.
• TYPES OF CONTRACT OR CLASSIFICATION OF
CONTRACT
• Valid Contract
• If the contract entered into by the parties and satisfies
all the essential elements of a valid contract as per the
act, it is said to be a valid contract.
• Void Contract
• A contract which ceases to be enforceable by law is
known as a void contract. A contract may be valid in the
beginning but later on, due to some reason, it does not
remain enforceable & become void.
• Example: A Playback singer enters into a contract to
give program at a Music concert. But He dies before the
date of performance of contract. Here, performance of
this contract becomes impossible. So, it becomes void.
• Voidable Contract
• When the contract is entered into without the free
consent of party, it is considerate as a voidable
contract. The definition of the act states that a
voidable contract is enforceable by law at the
option of one or more parties but not at option of
the other parties. Voidable contract will be
considered as valid if it is not cancelled by the
aggrieved party within a reasonable time.
• Illegal Agreement
• An illegal agreement means that which is immoral
or criminal in nature or which is opposed to public
policy.
• Example: An agreement to supply smuggled goods.

• Unenforceable Contract
• It is that contract which is not enforceable in the
court of law, due to some legal or technical defect.
• Eg. Absence of writing, lack of stamp etc.
• Express Contract
• An express contract is a contract made by the use of
words spoken or written.
• Implied Contract
• An implied contract is a contract which is made
otherwise than by the words spoken or written. It
came into existence on account of an act or conduct
of the parties.
• Quasi-contract
• It means a contract which does not arise from any
formal agreement but is imposed by law. It is based
upon the principle of equity means “ no one should
grow rich out of another person’s cost.” It is similar
to a contract in which a legal obligation is imposed
on a party who is required to perform it.

• Example: T, a tradesman, leaves goods at C’s house

by mistake. C treats the goods as his own. C is
bound to pay for the goods.
• Executed Contract
• In an executed contract both the parties have
performed their promises under a contract. It is a
contract where, under the terms of contract,
nothing remains to be done by the parties.
• Example
• A sells his car to B for 1 lakh. A delivered the car and
B paid the price. This is an executed contract.
• Executory Contract
• In an executory contract both the parties are yet to
perform their promises. In other words, it is a
contract where parties have to still perform their
obligation in the future.
• Example
• A sells his car to B for 1 lakh. If A is still to deliver
the car and B is yet to pay the price, it is an
executory contract.
• Partly Executed and Partly Executory Contract
• In a partly executed and partly executory contract,
one party has already performed his promise and
the other party has yet to execute his promise.
• Example
• A sells his car to B. Though A has delivered the car,
B has yet to pay the price. For A it is an executed
contract, whereas it is an executory contract on the
part of B since the price has yet to be paid.
• Unilateral Contract
• A unilateral contract is also known as a one-sided
contract. It is a contract where only one party has to
perform his promise. In such a contract, the promise on
one side is exchanged for an act on the other side. After
the formation of a unilateral contract, only one party
remains liable to perform his obligation because the
other party has, already performed his obligation.
• Example
• Alap promises to pay 1000 to anyone who finds his lost
cellplone. Bansi finds and returns it to Alap. From the
time Bansi found the cell phone, the contract came into
existence. Now Alap has to perform his promise, i.e.,
the payment of 1000.
• Bilateral Contract
• In a bilateral contract both the parties have to
perform their respective promises. It is also known
as a two-sided contract. Here, the obligation is
outstanding on the part of both the parties.
• They are similar in nature to Executory contracts.
• PROPOSAL AND ACCEPTANCE
• A proposal is an offer by one person to another to
enter into a contract. The term proposal is defined
under Section 2(a) as under:
• 'When one person signifies to another, his
willingness to do or abstain from doing anything
with a view to obtaining the assent of the other, to
such an act or abstinence, he is said to make a
proposal'.
• LEGAL RULES AS TO OFFER
• The offer is the first step in a valid contract. If the
offer itself is not valid, the contract can never be
valid. Following are the legal rules of an offer.
• 1. Offer should not contain terms, non-compliance
of which may be assumed as acceptance.

2. Offer Must Be Definite, Unambiguous and Certain

3. Offer Must Be Made to Create Legal Relationship

4. Offer must be communicated
Unless the offer is communicated, there can be no
acceptance, because the offeree does not know
what he has to accept.
5. Offer must be made with a view to obtaining the
assent of the other party, to whom it is made.

6. Offer must be distinguished from(a) a declaration

of Intention (b) Invitation to Offer ( c ) a statement
of price.
• Acceptance

• As per Section 2(b) 'when the person to whom the

proposal is made signifies his assent thereto, the
proposal is said to be accepted. The proposal when
accepted, becomes a promise'.
• LEGAL RULES FOR THE ACCEPTANCE
1. Acceptance Must Be Absolute and Unconditional
2. Acceptance Must Be Communicated
3. Acceptance must be according to the mode
prescribed or as per usual & reasonable mode.
4. Acceptance must be given within a reasonable
time (before the offer lapses or before the offer is
withdrawn)
5. Acceptance can not precede an offer
6. Acceptance May Be Express or Implied
7. Mere Silence Is Not Acceptance of an Offer
8. Acceptance Subject to Contract Is No Acceptance
• MEANING OF CONSENT
• Two persons are said to consent, when they agree
upon the same thing in the same sense.
• FREE CONSENT—SECTION 14
• A consent is said to be free, when it is not obtained
by
• Coercion—Section 15
• Undue influence—Section 16
• Fraud—Section 17
• Misrepresentation—Section 18
• Mistake—Sections 20, 21 and 22
• Coercion—Section 15
• Definition:- According to Section – 15, “Coercion is
1.The committing or threatening to commit, any act
forbidden by the Indian Penal code (IPC), or
2.The unlawful detaining or threatening to detain, any
property, to the prejudice of any person, whatever,
With the intention of causing any person to enter into
an agreement.
When a consent is obtained by coercion, the
contract is voidable at the option of the aggrieved
party and any benefit received by the other party
under coercion must be paid back. If the aggrieved
party has suffered from any loss, he can recover the
loss from the defaulting party.
• UNDUE INFLUENCE
• According to section – 16(i)
• A contract is entered on undue influence when
relations that exist between the parties are such
that one of them is in a position to dominate the
will of the other, and the dominant party uses his
position to obtain unfair advantage over the other.
• When a contract is made with undue influence, the
contract is voidable. The aggrieved party can
recover the damages, if he has suffered front loss
because of undue influence.
• Fraud—Section 17

• Fraud may be defined as an intentional, deliberate or willful mis-

statement of facts, which are material for the formation of a contract.
• The fraud means and includes the following acts:
1. Suggestion of facts which is not true by one person who does not
believe it to be true.
2. Active concealment of the fact.
• Example
Furniture dealer conceals the cracks in furniture by polish work.
3. A promise made without any intention of performing it.
4. Any act or omission, specifically declared as fraudulent by law.
5. Any other act to deceive.

 The aggrieved party can ask for a specific performance. The aggrieved
party can sue for damage, if he has suffered a loss.

 A mere silence as to facts is not fraud.

• Misrepresentation—Section 18
• Mis representation is a false statement which made
by a person innocently (without any intention to
deceive the other party). Here, the person making
statement, honestly believes that it is true.
• It also includes non-disclosure of a material fact or
facts, without any intention to deceive the other
party.
• The aggrieved party can cancel the contract. It
means a contract is voidable at the option of the
aggrieved party but he cannot sue for damages.
• Mistake—Sections 20, 21 and 22
• means an erroneous belief about some facts. A
mistake can either be (a) mistake of law and (b)
mistake of fact.
(a) Mistake of Law
• it means there is mistake in understanding the
provision of any law by the party to contract.
• Mistake of Indian Law Everyone is supposed to
know the law of land. Ignorance of law is no excuse.
Therefore, if there is a mistake of Indian law, the
contract is not void or voidable.
• Mistake of Foreign Law
• A mistake of foreign law is treated, as if it were a
mistake of facts, because person cannot be
expected to know the law of the other country.
(b) Mistake of Fact
• A mistake of facts can be classified either as a
bilateral mistake or a unilateral mistake.
• Bilateral Mistake
• It means both the parties are at mistake related to
the essential part of agreement. If an agreement is
entered into on the ground of bilateral mistake, the
agreement is void.
• Unilateral Mistake
• A unilateral mistake means one party is at mistake.
A contract is neither void nor voidable except that it
is mistake as to the nature of the contract or a
mistake with regard the identity of the person.
• Capacity or competency to contract
• Capacity means competence of the parties to enter
into a valid contract, according to section 10, an
agreement becomes a contract, if it is entered into
between the parties who are competent to
contract.
• According to section 11, every person is competent
to contract: -
who is of the age of majority according to the law,
to which he is subject,
Who is of sound mind
Who is not disqualified from contracting by any law
to which he is subject.
• Thus, according to Section 11, following persons are
not competent to contract:
Minor
Persons of Unsound Mind
Persons disqualified from contracting by any law
• Legal Position of Minor:-
1. An agreement with minor is void ab initio means it
has no legal existence from very beginning.
2. A minor can be a promisee or beneficiary but can
not be a promisor. This means if minor has entered
into an agreement with other person, the other
party cannot bind him by the contract.
3. As minor’s agreement is void from the very
beginning, it cannot be ratified by him on attaining
majority.
4.If he has received any benefit under a void
agreement, he can not be asked to compensate or
pay for it.
•
5. A minor can always plead minority, even in those
cases, where he has done mis-representation. If a
minor represents himself as a major and enters into an
agreement, he can escape from his liability by arguing
his minority. However, if minor has obtained some
money or property by misrepresentation, the court will
direct him to restore the money or property received.
6.There can be no specific performance of minor’s
agreement because it is void from the very beginning.
7. A minor can not become a partner in a firm. But, he
can be a beneficiary. So, he can be admitted to the
benefits of an existing partnership, with the consent of
the other partners.
8. A minor cannot he adjudged (declared) insolvent.
because he is incapable of contracting debt.
9. A minor is always liable for necessaries supplied or
necessary services rendered to him or to his
dependents:-
• Necessaries Include:
• Necessary goods, as well as
• Certain services, such as education, training,
medical & legal advice etc.
• If a person supplies some necessaries of life to
minor or to his dependents to whom he is legally
bound to support, then, minor is always liable to
pay its price. The supplier has a right to recover the
price of necessaries supplied.
• If the minor has some property, the supplier can
recover price out of it. But, if he has no property, he
can not be punished.
10.A minor can be an agent: An agent is merely a
connecting link between the principal & the third
person. Hence, so long as the principal is major, a
minor can be an agent, and he can bind his principal
by his acts, without incurring any personal liability.
11.His parents or guardian are not liable for the
contracts, entered into by him, even though the
contract is for supply of necessaries to minor.
However, when minor is working as an agent of his
parents, they are liable.
12. A minor is liable in tort (a civil wrong)
Eg. A 14-year old boy drives a car carelessly and
injures B. He is liable for the accident
PERSON OF UNSOUND MIND
An agreement by a person of unsound mind is void.
Following are the categories of persons considered
as persons of unsound mind.
1. An Idiot
2. Delirious Persons
3. Hypnotized Persons
4. Mental Decay
5. Drunken Person
• PERSON DISQUALIFIED BY LAW
1. Body Corporate or Company or Corporation
A company cannot enter into any contract which is
beyond its memorandum or which is personal in
nature as it is an artificial person.
2. Alien Enemy
• An alien means a person who belongs to a foreign
state. An alien can be an enemy or a friend. When he is
a citizen of any country which was against India in war,
he is known as alien enemy. If any contract is entered
into with the alien enemy and the war breaks out with
that country, the contract is suspended until the war is
over. During the war, the contract can be entered into
with the alien enemy with the permission of the central
government.
3. Convict
• A convict cannot enter into a contract while he is
undergoing imprisonment. But he can enter into a
contract with the permission of central government
while undergoing imprisonment. However a convict
can enter into a contract when is released from jail
or he has been granted bail.
4. Insolvent
• When any person is declared as an insolvent his
property vests in the receiver and therefore, he
cannot enter into a contract relating to his property.
Again he becomes capable to enter into a contract
when he is discharged by the court.
• Performance of Contract: -
• When the parties to the contract fulfill their
obligations arising under the contract within
prescribed time and in the prescribed manner, it is
performance of contract.
• Some times, the promisor offers to perform his
duty or obligation under, the contract at proper
time and place, but the promisee does not accept
the performance. This is known as “attempted
performance” or “tender”.
• A tender of performance is equivalent to actual
performance. It relieves the promisor from the
liability of further performance and gives him a
right to sue the promisee for the breach of contract.
• Essentials / Requisites of a Valid tender:
• It must be unconditional. It becomes conditional
when it is not according to the terms of the
contract.
• It must be of the whole quantity contracted for or
of the whole obligation. If the contract requires full
payment and if the tender is of installment, it is not
a valid tender.
• It must be by a person, who is in a position and who
is willing to perform his promise.
• It must be made at proper time and place. So a
tender of goods after business hours or a tender of
goods or money before the due date is not a valid
tender.
• It must be made to the proper person (the promisee or
his duly authorized agent). It must be also in proper
form.
• It may be made to one of several joint promisees. In
such case, it has the same effect as a tender to all of
them.
• In case of tender of goods, it must give a reasonable
opportunity to the promisees for inspection of goods.
• In Legal Tender Money: In case of a tender of money,
the tender must be in legal tender money. Legal tender
money means current currency notes or coins. The
tender of money in the form of foreign currency is not a
valid tender, unless it is agreed between the parties. A
payment by a cheque is the valid tender, if the person
to whom it is made is ready and willing to accept it.
• By whom the contract must be performed:-
1.Promisor himself:- This means a contract, which
involves use of personal skill of promisor, must be
performed by the promisor himself.
• Eg. A contract to sing a song at a musical event.
2. Agent: When the performance of the contract does
not require personal skill, it may be performed by
the promisor or by his representative.
• Eg. A promise to pay Rs. 10,000 to B for his personal
service. This payment may be done by either A or
his agent.
3. Legal representatives:- (when a contract involves use of
personal skill or it is based on personal considerations,
it comes to an end on the death of the promisor.)
• But, in other contracts the legal representatives of the
deceased promisor are bound to perform the duties,
under a contract. But their liability under a contract is
limited to the extent of the property they inherit from
the deceased.
4.Joint promisors:- When two or more persons have
made a joint promise, then unless a contrary intention
appears from the contract, all such persons must jointly
fulfill the promise. If any of them dies, his legal
representatives must jointly with the surviving
promisors, fulfill the promise. If all the promisors die,
the legal representatives of all of them must fulfill the
promise jointly.
• Who can demand performance:
• It is the only promisee, who can demand
performance of the promise under a contract. It
makes no difference whether the promise is for the
benefits of promisee or any other person.
• Eg. A promises B to pay Rs.500 to C. A does not pay
the amount to C. Here, C can not take any action
against A. It is the only B who can enforce the
promise against A.
• In case of death of promisee his legal
representatives can demand performance.
• DISCHARGE OF CONTRACT
• A contract is said to be discharged when the
obligations created by it come to an end. The
various modes of discharge of a contract are as
follows :
1. Discharge by performance. Discharge of a contract
by performance takes place when the parties to the
contract fulfill their obligations arising under the
contract within the time and in the manner
prescribed. The performance may be
• (i) actual performance, or
• (ii) attempted performance.
2.Discharge by agreement or consent. A contract rests on
the agreement of the parties. As it is agreement which
binds them, so by their agreement or consent they may
be discharged.
• The discharge by consent may be express or implied.
Discharge by implied consent takes place by—
1.Novation: means a new contract is substituted for an
existing one, either between the same parties or
between one of the parties and a third party, In such a
case, the old contract comes to an end.
2. Alteration: means a change in any of the terms of the
contract by the mutual consent of all the parties to the
contract. In such a case, the old contract comes to an
end.
3.Rescission: means all or some of the terms of the
contract are cancelled, In such a case, the old contract
comes to an end.
4.Remission: means to accept less performance (to
accept lesser sum in full payment) of the promise
made. In such a case, the old contract comes to an end.
5.Waiver: It takes place when the parties to a contract
agrees that they shall no longer be bound by the
contract. Thus waiver means to forgo or to sacrifice the
rights under a contract. In such a case, the old contract
comes to an end.
6.Merger: When a right under an earlier contract is
merged (joined) with right of the another contract, the
earlier contract comes to an end. This is known as
merger.
3. Discharge by impossibility. Impossibility of Performance
may be —
• Initial impossibility:- An agreement to do an act impossible in
itself is void.
• Supervening impossibility:- Impossibility which arises
subsequent to the formation of a contract is called
subsequent or supervening impossibility,
• A contract is discharged by supervening impossibility in
following cases:

• (a) Destruction of subject-matter of contract;

• (b) Non-existence or non-occurrence of a particular state of

things;

• Eg. A & B contract to marry each other. Before the time of

marriage, B goes mad. The contract becomes void.
•
• (c) Death or Personal Incapacity;
• (d) Change of law or stepping in of a person with
statutory authority;
• Eg. A agreed to sell his land to B. But, after the
formation of contract, the govt. issued a notification
and acquired the land. The contract is discharged.
• (e) Outbreak of war.

• The contract is discharged in all of the above cases.

• The following cases are not covered by supervening
impossibility :

(a) Difficulty of a performance; (due to some un contemplated

delays or events)

(b) Commercial impossibility; (It has become less profitable or

costly)

(c) failure of a third person on whose work the promisor relied;

(d) strikes, lock-outs and civil disturbance;

(e) failure of one of the objects.

The contract is not discharged in all of the above cases.

4.Discharge by Lapse of time:- If a contract is not
performed within the period of limitation and if no
action is taken by the promisee in a Law Court, the
contract is discharged.
5.Discharge by operation of law. This includes
discharge by
• (a) Death of promisor,
• (b)Merger of original contract into another contract,
• (c) Insolvency of the promisor,
• (d)Unauthorised alteration of the terms of contract,
and
• (e)Rights and liabilities becoming vested in the
same person.
6. Discharge by breach of contract:
• If a party breaks his obligation which the contract
imposes, there takes place breach of contract.
• Actual breach of contract: It may occur (a) at the
time when the performance is due or (b) during the
performance of the contract.
• Anticipatory breach of contract: It occurs when a
party repudiates his liability or obligation under the
contract before the time for performance arrives.
• Remedies for breach of contract:
• A remedy is the means given by law for the
enforcement of a right. When there is a breach of
contract by one party, following remedies are
available to the injured party:
• 1. Rescission
• 2. Suit for Damages
• 3. Suit upon Quantum Meruit
• 4. Specific Performance of Contract
• 5. Injunction
1. Rescission: when there is a breach of contract by one
party, the other party may rescind the contract and
refuse further performance. In such case, he becomes
free from all his obligations under the contract.
• Example: D promises P to supply 10 bags of wheat on a
certain day. P agrees to pay the price after the receipt
of the goods. D does not supply the goods. P is
discharged from liability to pay the price.
• Effects:
• When one party rescinds the contract, he is liable to
restore (to return) any benefits, which he has received
under the contract,
• But, if a person rightfully rescinds a contract, he can
claim compensation for any loss, arising to him, due to
non performance of the contract by the other party.
2. Suit for Damages:- When there is a breach of contract by one
party, it may result into loss to other party. Here, the injured
party can sue for damages.
Damages are the monetary compensation allowed to the
injured party by the court for the loss or injury suffered by
him.
The main object of awarding damages is to put the injured
party in the same position in which he would have been, if
there had been performance of contract & not the breach. Its
purpose is to compensate the aggrieved party and not to
punish the party at fault. This is known as the doctrine of
restitution.
While determining the damages, the court takes the following
points into account:
• Inconvenience caused by the non performance of the
contract
• Motive of breach of contract
• Manner of breach of contract
3.Suit upon Quantum Meruit: The term “ Quantum
Meruit” means “ as much as earned”.
• When a person has done some work under a
contract and the other party repudiates (cancels)
the contract or due to some event the further
performance becomes impossible, then the party
who has done some work can claim proportionate
remuneration for the work done.
• Example: A agrees to write articles for B the
publisher of a magazine. A writes articles for 6
months but thereafter B stops to publish the
magazine. In such a case, A can claim proportionate
remuneration for the articles written by him for 6
months.
4. Specific Performance of Contract: In certain cases,
the court may give directions to the party ( in
breach) to perform his promise according to the
terms of the contract.
The specific performance may be ordered by the
court in the following situations:
• When the goods are of a unique nature or special
value (not easily available in the market).
• Where the actual damages arising from the breach
of contract are not measurable.
• Where the monetary compensation is not an
adequate remedy.
5. Injunction: The injunction may be defined as an
order of the courts restraining a person from doing
something which he promised not to do. It means a
stay order granted by a court. Where there is a
breach of contract by one party and the order of a
specific performance is not granted by the court,
the injunction may be granted. The injunction is
granted by the courts at their discretion.
• Example: A film actress agreed to act exclusively for
Yash Raj films for one year and for no one else.
During the same year, she contracted to act for
Mani Ratnam.