ARIES ADVERTISING BUREAU versus C.T. DEVARAJ (DEAD) BY LRS.

ARIES ADVERTISING BUREAU versus C.T. DEVARAJ (DEAD) BY LRS.

There is no privity of contract between appellant and respondent, as approval for advertisement was not given in writing and was on behalf of the second defendant; respondent, being only a financier and not deriving any benefit pursuant to the advertisement, cannot be held liable under section 70 of the Indian Contract Act, 1872.

Parties
Appellant: ARIES ADVERTISING BUREAU; Respondent: C.T. Devaraj (dead) by LRS.; Second Defendant: Balakrishnan
Jurisdiction
India
Judgment Date
22 February 1995
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
appeal dismissed
Legal Topics
Privity of Contract, Section 70 of Indian Contract Act 1872, Compensation for Non Gratuitous Act
Contract Law Privity of Contract Section 70 of Indian Contract Act 1872 Compensation for Non Gratuitous Act

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Parties

ARIES ADVERTISING BUREAU

Appellant

C.T. Devaraj (dead) by LRS.

Respondent

Balakrishnan

Second Defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether there was privity of contract between appellant and respondent
  2. 2 Applicability of section 70 of the Indian Contract Act, 1872 against the respondent

Ratio Decidendi

There is no privity of contract between appellant and respondent, as approval for advertisement was not given in writing and was on behalf of the second defendant; respondent, being only a financier and not deriving any benefit pursuant to the advertisement, cannot be held liable under section 70 of the Indian Contract Act, 1872.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed without costs