Facts of the Case
A enters into a contract with B for the purchase of a piece of land for a consideration of Rs. 5 lakhs. The agreement is validly formed with lawful offer and acceptance, free consent, and a lawful object. Both parties intend to perform their respective obligations as agreed. The contract creates reciprocal promises—A promises to pay the agreed price, and B promises to transfer ownership of the land to A. The issue concerns the rights and duties that arise between A and B for the fulfillment of this contract.
Issues in the Case
The following legal issues arise for determination:
- What rights arise in favour of A (the purchaser) and B (the seller).
- What duties are imposed on A and B under the contract.
- How rights and duties are correlated in contractual relationships.
- How Indian jurisprudence explains performance and enforcement of contractual obligations.
Legal Principles Covered to Support Case Proceedings and Judgements
A. Contractual Rights and Duties
In jurisprudence, a right is a legally protected interest, while a duty is a legally binding obligation. In contracts, rights and duties are reciprocal and correlative—the right of one party corresponds to the duty of the other.
B. Rights and Duties of A (Purchaser)
Rights of A:
- Right to obtain transfer of ownership of the land upon payment.
- Right to demand execution and registration of the sale deed.
- Right to peaceful possession after completion of sale.
Duties of A:
- Duty to pay Rs. 5 lakhs as agreed.
- Duty to perform contractual obligations within stipulated time.
- Duty to act in good faith and cooperate in completion of the sale.
C. Rights and Duties of B (Seller)
Rights of B:
- Right to receive the purchase price of Rs. 5 lakhs.
- Right to enforce payment through legal remedies in case of breach.
Duties of B:
- Duty to transfer clear and marketable title.
- Duty to execute necessary documents for sale.
- Duty to deliver possession upon completion of the contract.
D. Jurisprudential Basis
According to jurisprudence, particularly the theory of correlativity of rights and duties, no right exists without a corresponding duty. Contract law enforces these obligations to ensure certainty, fairness, and commercial stability.
E. Enforcement of Contract
If either party fails to perform their duties, the aggrieved party may seek:
- Specific performance, or
- Compensation for breach, or
- Rescission of contract, as permitted by law.
Possible Judgement
The court is likely to hold that:
- The contract between A and B is valid and enforceable.
- A has a right to obtain the land upon payment of Rs. 5 lakhs.
- B has a right to receive the agreed consideration.
- Both parties are bound by reciprocal rights and duties, and failure by either constitutes breach.
Accordingly, the court would direct performance of the contract or grant appropriate legal remedies.
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