Law: Contract, Act, 1872

Section: S. 29

(a) Contract Act (IX of 1872),   S. 29-Agreement of Allotment of shop by Karachi Municipal Corporation on conditions that : rent will be fixed by Chief Officer and lease will commence from date of delivery of possession -Contract enforceable.   The terms of the allotment of a shop by the Karachi Municipal Corporation provided that the lease would commence from the date from which possession will be handed over to the respon dent.   Held, the agreement was not void under section 29 of the Con tract Act because under the terms of the agreement it was agreed between the parties that the respondent will pay such rent as will be fixed by the Chief Officer and the lease will commence on delivery of possession of the shop. These two terms were quite plain and simple.   Srimati Giribala Dasi v. Kalidas Bhanja and others A I R 1921 P C 71 : Khushi Ram v. Munshi Lal and another A I R 1940 Lab. 225; Hillas & Co. Ltd. v. Arcos Ltd. (1932) 147 L T 503 at p. 514; New Beerbhoom Coal Co. v. Boloram Mahata 7 1 A 107; Ramasami v. Rojagopala I L R 11 Mad:' 201 ; 27 Mad. 332 ; Siman Reubean v. Haji Shaikh Mahomed Shustro A I R 1922 Bom. 404 and Muthiah Chettiar and another v. Periyan Kone and others A I R 1920 Mad. 115 ref.   (b) Contract Act (IX of 1872),   S. 62-Applies only when there is no breach of original contract. Section 62 applies only to those cases where no breach has been committed in respect of the original contract and then .the original contract is substituted by a new contract.   Manohur Koyal,v. Thakur Das Naskar I L R 15 Cal. 319 ; Union of India v. Kishorilal Gupta & Bros. A I R 1953 Cal. 642 ; Sakarchand Shamji v. Ismail Hoosein and another rA I R 1931 Rang. 189 and New Standard Bank Ltd. v. Probodh Chandra Chakravarty A I R 1942 Cal. 87 ref.   (c) City of .Karachi Municipal Act (XVII of 1933),   S. 255 Not applicable to enforcement of agreement of lease.   Section 255 of the Karachi Municipal Act, 1933 does not apply to the enforcement of agreement of lease and for causes of action which are based on contracts entered into between the parties.   Municipality Borough of Ahmedabad v. Jayantilal…