AIBE 20 Law of Contract 2025: Syllabus, Topics, Preparation Tips, Important Governing Bodies

AIBE 20 Law of Contract Syllabus 2025

The detailed AIBE 20 Law of Contract syllabus, topics, sub-topics and important cases have been given below:

Topic 1 : General Introduction – History and Nature of Contractual Obligations

Topic 2 : Formation of an Agreement Intention to create legal relationship; offer and invitation to treat; kinds of offer, communication, acceptance and revocation of offer and acceptance; modes of revocation of offer - Indian Contract Act, 1872, sections 2 – 10

Important Cases for Topic 2

1. Carlill v. Carbolic Smoke Ball Co. (1891-4) All ER Rep.127

2. Pharmaceutical Society of Great Britain v. Boots Cash Chemist (Southern) Ltd. (1952) 2 All ER Rep. 456

3. Balfour v. Balfour (1918-19) All ER 860 (CA)

4. Lalman Shukla v. Gauri Datt (1913) XL ALJR 489 (All.)

5. Bhagwandas Goverdhandas Kedia v. M/s. Girdharilal Parshottamdas & Co., AIR 1966 SC 543

6. Harvey v. Facey (1893) AC 552

7. Felthouse v.Bindley (1862) 11 CB 869

Topic 3 : Making of an Agreement – Special Situations Tenders and Auctions- Indian Contract Act, 1872, sections 2-10

Important Cases for Topic 3

1. Union of India v. Maddala Thathiah, AIR 1966 SC 1724

2. Rajendra Kumar Verma v. State of M.P., AIR 1972 MP 131

3. Kanhaiya Lal Aggarwal v. Union of India, AIR 2002 SC 2766

4. Haridwar Singh v. Bagun Sumbrui (1973) 3 SCC 889

5. Indian Airlines Corporation v. Sm. Madhuri Chowdhuri, AIR 1965 Cal. 252

Topic 4 : Consideration Meaning; basis and the nature of consideration; Doctrine of Privity of Contract and of consideration, its exceptions; Exceptions of consideration – Indian Contract Act, 1872, sections 2(d), 2(f), 23 and 25.

Important Cases for Topic 4

1. Kedarnath Bhattacharji v. Gorie Mahomed (1886) 7 I.D. 64 (Cal.)

2. Doraswami Iyer v. Arunachala Ayyar (1935) 43 LW 259 (Mad.)

3. Abdul Aziz v. Masum Ali, AIR 1914 All. 22

4. Venkata Chinnaya Rau v. Venkataramaya Garu (1881) 1 ID 137 (Mad.)

5. Nawab Khwaja Muhammad Khan v. Nawab Husaini Begam (1910) LR 37 I.152

Topic 5 : Capacity to Contract Legal disability to enter into contract - Minors, persons of unsound mind; person under legal disability; lunatics, idiots; Restitution in cases of minor’s agreement; Liability for necessaries supplied to the minor - Indian Contract Act, 1872, sections 10, 11, 12, 64, 65, 68; Specific Relief Act, 1963, section 33; Indian Majority Act, 1875.

Important Cases for Topic 5

1. Mohori Bibee v. Dhurmodas Ghose (1903) 30 I.A. 114

2. Khan Gul v. Lakha Singh, AIR 1928 Lah. 609

3. Ajudhia Prasad v. Chandan Lal, AIR 1937 All. 610

Topic 6: Free Consent Free consent; Definition – Coercion, Undue influence, Fraud, Misrepresentation and Mistake; Effect on contracts influenced by any factor vitiating free consent - Indian Contract Act, 1872, sections 13 – 22

Important Cases for Topic 6

1. Raghunath Prasad v. Sarju Prasad (1923) 51 I.A. 101 87

2. Subhas Chandra Das Mushib v. Ganga Prasad Das Mushib, AIR 1967 SC 878

3. Lakshmi Amma v. T. Narayana Bhatta, 1970 (3) SCC 159

4. Tarsem Singh v. Sukhminder Singh (1998) 3 SCC 471

Topic 7: Limitations on Freedom of Contract Circumstances in which agreements become void or voidable, Distinction between void and voidable agreements; Unlawful Agreements; Public policy; Agreements with unlawful consideration in part and objects; Agreements without consideration; Agreements in restraint of marriage; Agreements in restraint of trade; Agreements in restraint of legal proceedings; Ambiguous and uncertain agreements & Wagering agreements -Indian Contract Act, 1872, sections 23 – 30

Important Cases for Topic 7

1. Gherulal Parakh v. Mahadeodas Maiya, AIR 1959 SC 781

2. Niranjan Shankar Golikari v. Century Spinning & Manufacturing Co. Ltd., AIR 1967 SC 1098

3. Central Inland Water Transport Corpn. Ltd. v. Brojo Nath Ganguly (1986) 3 SCC 156 (Also see D.T.C. v. D.T.C. Mazdoor Congress, AIR 1991 SC 101; Bank of India v. O.P. Swarankar, AIR 2003 SC 858)

4. Dhurandhar Prasad Singh v. Jai Prakash University AIR 2001 SC 2552

Topic 8: Discharge of a Contract Modes-Discharge by performance; Frustration; Supervening impossibility of performance; Grounds of Frustration and its effect; Discharge by Agreement and Novation - Indian Contract Act, 1872, sections 37 – 67

Important Cases for Topic 8

1. Satyabrata Ghose v. Mugneeram Bangur & Co., AIR 1954 SC 44

2. M/s. Alopi Parshad & Sons Ltd. v. Union of India, AIR 1960 SC 588

3. Punj Sons Pvt. Ltd. v. Union of India, AIR 1986 Del. 158

4. Easun Engineering Co. Ltd. v. The Fertilizers & Chemicals Travancore Ltd., AIR 1991 Mad. 158

Topic 9: Remedies for Breach of Contract (a) Damages; Types of Damages; Basis of Assessment of Damages; Remoteness of Damages and (b) Measures of Damages; Mitigation of Damages; Penalty & Liquidated Damages – Indian Contract Act, 1872, sections 73 – 74

Important Cases for Topic 9

1. Hadley v. Baxendale (1843-60) All ER Rep. 461

2. AKAS Jamal v. Moolla Dawood, Sons & Co. (1915) XX C.W.N. 105

3. Karsandas H. Thacker v. M/s. The Saran Engineering Co. Ltd., AIR 1965 SC 1981

4. Maula Bux v. Union of India, AIR 1970 SC 1955

5. Shri Hanuman Cotton Mills v. Tata Air Craft Ltd., 1969 (3) SCC 522

6. Ghaziabad Development Authority v. Union of India, AIR 2000 SC 2003

7. Oil & Natural Gas Corporation Ltd. v. Saw Pipes Ltd. (2003) 4 SCALE 92

Topic 10: Quasi – Contracts Obligations resembling those created by Contract (Quasi – Contracts): Concept and classification - Indian Contract Act, 1872, sections 68 – 72

Important Cases for Topic 10

1. State of West Bengal v. B.K. Mondal & Sons, AIR 1962 SC 779

Topic 11: E- Contracts Nature and scope; Formation of E-contracts; Legislative Framework; Judicial Approach – The Information Technology Act, 2000, sections 3--5, 10 17.

Important Cases for Topic 11

1. P R Transport Agency v. Union of India, AIR 2006 ALL 23

2. Timex International Fze Ltd Dubai v. Vedanta Aluminium Ltd. (2010) 3 SCC 1

Preparation Tips for AIBE 20 (XX) Law of Contract

Here are some preparation tips to ace the AIBE 20 Law of Contract section:

Study using good reference books: Candidates must ensure that they study from the best books for AIBE 20 Law of Contract. Some of the recommended books for AIBE 20 Law of Contract are Pollock & Mulla, Indian Contract & Specific Relief Act (edited by R Yashod Vardhan and Chitra Narayan) 15th Ed. 2017, J. Beatson, Anson’s Law of Contract (28th ed., 2002), H.K. Saharay, Dutt on Contract – The Indian Contract Act, 1872 (10th ed., 2006) and Avtar Singh, Law of Contract and Specific Relief (11th ed., 2013).

Practice previous year question papers: The AIBE previous year question papers are a very vital source of preparation for students. The previous year question papers of AIBE will help candidates understand the paper pattern and also test your preparation.

Read Case Laws: Going through the case laws related to Law of Contract will give candidates a better understanding of the topics and concepts covered in the subject.

Revise Regularly: When the subject is comprehensive, it is very easy to forget topics that you covered in the start. So while preparing, candidates must give special emphasis on revision. Candidates are advised to properly revise topics and concepts regularly. Furthermore, they must also plan their preparations in such a manner that they have ample time for revision left at the end.

Preparation Books for AIBE 20 Law of Contract

Candidates preparing for the AIBE 2025 must be aware of the best AIBE exam books for each topic to pass the examination. Following are some of the popular AIBE - Law of Contract Preparatory Books:

Also Check: AIBE 20 Constitutional Law Syllabus 2025