Legal Articles

LEGAL MAXIM AND ITS RELEVANCE  TO CONTRACT LAW

INTRODUCTION:

A  Legal maxim or legal phrase elucidates a legal principle, proposition or concept.  
Maxims are of practical importance and most frequently cited, commented on and applied. A legal maxim is an established principle or proposition of law which is in Latin form. These principles help many practicing lawyers in applying the existing laws in a fair and just manner and it also helps the court in deciding the issue. Not all the maxims normally have the dogmatic authority of statutes and are usually not considered as law except to the extent of their application in adjudicated cases.
Maxims are principles and authorities, and part of the general customs or common law of England and are of the same strength as acts of parliament.

This article gives a brief idea about how maxims are used and how these can be applied in contract law.

APPLICATION:

Firstly I would like to explain how to use the legal maxims., lets consider 

The principles of natural justice in the context of administrative decisions.
In any administrative decision, principles of natural justice plays an important role as it helps in preventing arbitrariness and ensuring fairness and equality.

These principles contain two components:

a. AUDI ALTERAM PARTEM 

It means hear the other side and no person should be denied unheard and every party who is affected by administrative decision should be heard.

The principle was affirmed in landmark case Maneka Gandhi v. union of India (1978) 1 SCC 248 ; AIR 1978 SC 597 

In administrative decision the authorities should provide notice to affected parties, accurate evidence or allegations against them and allow them to respond to it.  If there is a failure in following the principle the administrative decision will be invalid.                

b. NEMO JUDEX IN CAUSA SUA –

It means that no one should be a judge in their own cause.,In  State of Orissa vs Dr. Binapani dei (1967) SCR (2) 625, the Supreme Court held that decision maker must be not interested and free from any conflict of interest .

In any administrative decision the decision maker maintains objectivity and independence and he should not be concerned about the final outcome.

SOME OF THE LEGAL MAXIMS WITH CASE LAWS 

We can understand how these Latin maxims/phrases are applied in the Indian legal context

1. Maxim – “actus non facit reum nisi mens sit rea”

Meaning – an act does not make a person guilty unless there is a guilty mind.

Case law- State of M.P VS B.L Shukla (AIR 1995 SC 758), wherein it was held that in the court it is mandatory to prove both the actus reus and mens reas in a criminal case. It is very important to prove the guilty act along with the involvement of guilty mind.

2. Maxim – res judicata 

Meaning – a matter already judged 

Case law – In Satyadhyan ghosal v.  Snt deorajin debi (1960) SCC ONLINE SC15 ; AIR 1960 SC 941, Court discussed the doctrine of res judicata which prevents the same matter to be presented or relitigated between the same parties.

3. Maxim – “dua lex sed lex” 

It means that the law is harsh, but it is law.

While this is not associated with any case law, but the maxim dual ex sed lex states the principle that even if the law is strict or severe it must be abided.

4.  Maxim – “volenti non fit injuria “

Meaning –to one who is willing, no harm is done. The person will be responsible for his own risk or harm.

Case law – In Nagappa v. Gurudayal Singh, (2003) 2 SCC 274  the Court applied this maxim and held that when a person causes a voluntary damage or he takes up a risk and suffers for his action the maxim can be applied.

LEGAL MAXIM AND ITS  RELEVANCE TO CONTRACT LAW 

Law of contacts deals with the matters of contracts. A contract is made when an agreement becomes enforceable by law. There is no legal obligation as long as its a mere agreement.

Once the agreement becomes contract there is a legal obligation by the parties involved.

Maxims are precise statements of general principles that apply to many situations and one can apply the maxims in contract law and relate to case law., This maxims help in understanding the contract law and these can be easily applied to the facts of the case .

There are some legal maxims relevant to contract law which are discussed below:  

1. EX DOLO MALO NON ORITUR ACTIO

“Ex dolo malo non oritur actio” is a latin maxim that means “an action cannot arise from fraud “

This principle states that a person cannot claim a legal right or file a legal claim based on his own fraudulent or wrongful conduct. Thus, one cannot take advantage of their own wrongdoing to gain legal benefits or reliefs. It is a fundamental concept in many legal systems as this maxim prevents unfairness and maintain integrity in legal proceedings. 

Case law- In Abdula Sahib vs Guruvappa and co. 1943 (SCC ONLINE MAD 265) the Madras High Court says that “no court will lend its aid to a man whose cause of action is immoral or an illegal act”. It was further held that the plaintiff will be denied the court assistance, because he himself has committed a fraud.

2. EX NUDO PACTO NON ORITUE ACTIO 

Ex undo non oritue actio is a latin maxim that says “a bare promise without consideration cannot be enforced.”

This maxim states that a contact without consideration is a invalid contract , and when  something of value is promised there should be something useful in return but if it is something else it cannot be enforced by law. 

The concept of consideration is very essential in contract law and if there no proper consideration the contract is void.

CASE LAW-In the case of S.Parameshwari v. Balasubramanian 3, the Court held that a contract without consideration cannot give rise to legal action.3

3. CAVEAT EMPTOR 

Caveat emptor is the Latin phrase that says “ let the buyer beware”.

The buyer should be aware of the products and research about the product before purchasing it and the seller is not responsible after the product being purchased 

CASE LAW – In Shital Kumar Saini vs. Satvir Singh, (2005) 1 CPR 401 a  compressor purchased with a one year warranty had a defect in three months when the buyer asked for replacement, the needful was done by the seller it was reasonable because there was a implied warranty in this case.

In Ranbirsingh Shankaesingh Thakur vs Hindustan general electric corporation ltd, ( AIR 1971 BOMBAY 97)

The buyer wanted to buy specific goods and he impliedly made the purpose known to the seller and the seller sold the goods irrespective of whether he is the actual producer  or not.

4.RESPONDEAT SUPERIOR 

MEANING – let the master answer. 

An employer or the principal is legally liable for the wrongdoing of an employee or agent.

The employer is liable for the negligent acts of the agent within the scope of their employment.

Case law –Savitha Garg vs. The Director, National Heart Institute (AIR 2004 SUPREME COURT 5088).

In this case the Supreme Court held that the hospital is the principal party which is responsible for the actions of agents such as doctors and any negligence on their part the hospital will be liable.

MORRIS V. C.W.MARTIN &SONS ( 1966) 1 QB 716

In this case their servant, Morrisey who was responsible for cleaning the coat, instead stole it. Now the owner or master of the company was held to be liable for his action. But if the goods were in the possession of the owner he would not be liable but it was under the control of the servant so the owner of the company would be liable for it.

5. QUI FACIT PER ALIUM FACIT PER SE 

 Meaning – he who acts through another does the act himself.

It is a fundamental legal maxim of the law of agency. It is a maxim often stated in discussing the liability of employer for the act of employee in terms of vicarious liability.

Case law -Deo Narain a Rai and Anr. Vs Kukur Bind and Ors., 1902.SCC ONLINE ALL 5

The appellants filed a complaint against the respondent, Mr Kukur Bind, seeking recovery of an amount of Rs 381 and possession of certain mortgaged property based on a mortgage deed dated August 25, 1896. 

However, it was noted that Mr Kukur Bind did not sign the deed, and his signature was not visible. Instead, a patwari named Shiunaudan Lal had signed on his behalf. It was revealed that Mr Kukur Bind was illiterate and unable to write his own name, and thus he had allowed the patwari to sign on his behalf.

The Court held that the signature of other person can be considered  as the mortgaged owner’s signature and  used this maxim to conclude the above case.

6. DELEGATES NON POTEST DELEGARE 

Meaning – the rule that a person to whom a power, trust or authority is given should perform it. The person cannot delegate this obligation to anyone unless expressly authorised to do so.

Case law –State v. Kunj Bihali Chandra and others (1937 SCC ONLINE PAT 215)

In this case, the  Patna High Court on the basis of the maxim ‘delegate non potest” held that the legislative power lies exclusively with the legislature and that the legislature therefore cannot surrender power and consequently any such thing done would be void.

7. QUID PRO QUO 

MEANING – A favour or advantage granted in return of something.

In a general sense, the meaning of quid pro quo is a consideration, something in return for something and such consideration makes both the parties form a valid contract.

Case law– Further in Krishi Upaj Mandi Samiti v. Orient Paper & Industries ltd (SCC pp 434-35, para 23) held that ‘there is no quid pro quo between the tax payer and the public authority. It is a part essentially for services  rendered and there must be an element of quid pro quo between the person who pays it and the public authority.

8. ACTIO PERSONALIS  MORITUR CUM PERSONA 

Meaning – ‘a personal right of action dies with the person’

In simpler terms when a person dies, their personal rights and legal claims also dies with them. The general rule is that all the legal duties end with the death of a person but some cases of defamation, assault and personal damages have exception., This means that even after the person is dead someone else can represent him for claiming his legal rights or anyone take legal action against them.

Case law- Hambly  v. Trott (1776) 98 E.R. 1136. – In this case the plaintiff sought to recover farm animals from the defendant death. The Court ruled that claims of trespass will be dismissed but actions on contracts will succeed.

9. VIGILANTIBUS NON DORMIENTIBUS JURA SUBVENIUNT 

MEANING – The law assists only those who are vigilant people, and not those who sleep over their rights.

It states that the legal process will benefit people who are watchful on their rights and it will not benefit people who are ignorant.

Case law – Vanka Radhamanohari v.  Vanka Venkata Reddy and Ors.(1993) 3 SCC 4.

The exception was made  to this maxim and it was a criminal case of cruelty to a woman under section-498-A under IPC. The Court observed that this maxim would not be applicable to this case as it comes under the case of offence relating to cruelty against women.

10.  QUI SENTIT COMMODUM DEBET ET ONUS 

MEANING – Literally this means that he who enjoys the benefit ought also to bear the burden he who enjoys the advantage of a right should also take the accompanying disadvantage.

Case law– Fazulbhoy jaffer v. The credit bank of India (1914)16 BOMLR 730.In this case the shareholder was a minor and wanted to withdraw his shares from the company and remove his name from the register. 

CONCLUSION 

The above few maxims are illustration as to how it can be used in the context of contract law and such maxims can also be used by the Courts to pass a fair judgement and render justice.

In conclusion, understanding of and effective use of legal maxims is a fundamental skill set for law students and legal professionals. Legal maxims provide a foundation or basic knowledge for law students. Legal maxims provide clarity in legal communication, and should be accurately applied in appropriate cases. Care should be taken by lawyers not to apply a wrong maxim for solving a case. The Supreme Court in Rohit pulp & paper mills v. Collector, AIR 1991 SC 754 held that maxims and precedents ought not to be mechanically applied and: they are of assistance in so far as they furnish guidance by compendiously summing up principles based on rules of common sense and logic. These maxims strengthen advocacy and legal arguments and should be used in an effective manner to solve legal issues.

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