Principle: A person, who is usually mad, but occasionally not mad, may make a contract when he is not mad. Facts: A generally remains in the state of madness and rarely becomes capable of understanding anything.

Principle: Property consists of right to posses, right to use, right to alienate and right to exclude others. Sale is complete when property gets transferred from the seller to the buyer. Facts: A sold his car to B B requested A to keep the car in his care on behalf B for one mon…

Principle: An agreement without free consent can be enforced only at the option of the party whose consent was not free. Facts: A obtains the consent of B to enter into an agreement by putting a gun on the head of B's girl friend.

Principle: An agreement may be entered into orally, in writing, or by conduct. Facts: A went to the shop of B and picked a tooth brush and gave a cheque of Rupees twenty to B and left the shop.

Principle: Where one of the parties to a contract was in position to dominate the decision of the other party, the contract is enforceable only at the option of the party who was in a position to dominate decision of the other party. Facts: A doctor asked his patient to make a pa…

Principle: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. Facts: A sent a letter making a proposal to B to purchase the house of B.

Principle: When, at the desire one person, any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the promise. Facts: X, the uncle of Y, made a promise to pay him an amount of Rs. 1,00,000/- as reward if Y quit…

Principle: Sale of liquor is illegal. All agreements relating to prohibited items do not exist in the eyes of law. Facts: A entered into an agreement with B for the sale of liquor. A failed to supply the agreed quantity of liquor to B.

Principle: Law never enforces an impossible promise. Facts: A made a promise to B to discover treasure by magic.