Additional Questions Contract Act
Additional Questions Contract Act
1. Alex, a regular customer at a local café, walks in one morning and sits down at his
usual table. Without any verbal or written order, the barista prepares Alex's usual
coffee and brings it to his table. Alex drinks the coffee, reads the newspaper, and then
leaves cash on the table to pay for the coffee before exiting the café. Based on the
scenario, identify and explain whether a contract exists between Alex and the café?
2. Ram invites Madhuri (a well-known film actress) to his daughter's engagement and
dinner party. Madhuri accepts the invitation and promised to attend. Ram made
special arrangements for Madhuri at the party but she did not turn up. Ram enraged
with Madhuri's behaviour, wanted to sue for the loss incurred in making special
arrangements. Ram is seeking your advice.
3. Sara sees an advertisement in a newspaper for a used car priced at 50,000. She
immediately calls the seller and says “I accept your offer. I'll come by tomorrow to
pick up the car”. Is Sarah's call to the seller considered an acceptance of an offer,
thereby forming a contract? Explain your answer.
5. The Sharma family has a long-standing dispute over the division of ancestral property.
To resolve the issue, the family members decide to enter into a family settlement
agreement. The agreement is carefully drafted and signed by all members of the
family, except for Mr. Ramesh Sharma, who was abroad at the time and did not
participate in the negotiations. Upon his return, Mr. Ramesh learns about the
settlement and wants to enforce the terms of the agreement to claim his share of the
property. Analyse the enforceability of the family settlement agreement, particularly
focusing on whether Mr. Ramesh Sharma, who was not a party to the original
settlement, can enforce the agreement
6. Coach Patel runs a youth soccer program for teenagers in the community, One of his
players, 17-year-old Alex, comes from a low-income family and cannot afford proper
soccer cleats. Understanding the importance of having the right equipment for
performance and safety, Coach Patel decides to purchase a pair of soccer cleats for
Alex out of his own pocket. Discuss whether Coach Patel may have a claim for
reimbursement
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7. Mr. Ayush, the employer induced his employee Mr. Bobby to sell his one room flat to
him at less than the market value to secure promotion. Mr. Bobby sold the flat to Mr.
Ayush. Later on, Mr. Bobby changed his mind and decided to sue Mr. Ayush. Examine
the validity of the contract as per the provisions of the Indian Contract Act, 1872.
10. Sarah, a professional singer, signed a contract to perform at a series of concerts over
the next year. Before the concert series began, Sarah became seriously ill and was
declared insane, making it impossible for her to fulfil the contract. Can the concert
organizers demand that Sarah's legal representative provide a substitute singer or
compensate them for any losses?
11. Akhilesh entered into an agreement with Shekhar to deliver him (Shekhar) 5,000 bags
to be manufactured in his factory. The bags could not be manufactured because of
strike by the workers and Akhilesh failed to supply the said bags to Shekhar. Decide
whether Akhilesh can be exempted from liability under the provisions of the Indian
Contract Act, 1872.
12. Peter is a singer. He enters into a contract with John who is the manager of a music
club. As per the terms of the contract, Peter promises to sing every Friday and
Saturday night for two hours during the next six months, in exchange for a payment
of Rs 2,000 per hour. On the fifth night, Peter wilfully absents himself. Can John end
the contract?
13. Peter is a farmer. He issues a cheque for procuring seeds for his next crop. He has
sufficient funds in his account but the bank erroneously dishonours the cheque. Peter
files a suit claiming compensation for damages to his reputation. Will he succeed?
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14. Peter and Oliver enter a contract under which Peter agrees to deliver a basket of fruits
at Oliver's residence and Oliver promises to pay Rs 1,500 after consuming all the
fruits. However, Peter erroneously delivers a basket of fruits at John's residence
instead of Oliver's. When John gets home, he assumes that the fruit basket is a birthday
gift and consumes them. Does John have to pay for the goods?
15. Mr. X enters into an agreement with the Government of India whereby the
Government agrees to fund his studies at the University of Cambridge. In return, Mr.
X promises to return to India upon completion of his studies and serve the
Government for a period of 5 years. The contract stipulates that if Mr. X fails to return
to India, he will be required to reimburse the Government for the expenses incurred.
What legal remedies are available to the Government if Mr. X fails to return to India
and serve as agreed?
16. Tanvi is indebted to Pravitha for ₹50,000. Later, Pravitha demanded that Tanvi
arrange a guarantee for the debt. Subsequently, Diana gives a guarantee to Pravitha
for Tanvi's debt of ₹50,000, which already existed between them. Answer the
following questions in light of the Indian Contract Act, 1872.Is the guarantee contract
between Diana and Pravitha valid under the Indian Contract Act, 1872?Would your
answer change if Pravitha agrees to extend the time for Tanvi's repayment after the
guarantee has been provided?
17. A hires a car from B and agrees to Pay Rs. 5000 as hire charges. The car is not safe,
though B is unaware of it. A is injured and claims compensation for injuries suffered
by him. B refuses to pay. Discuss the liability of B. what would be your answer if car
was hired by gratitude?
18. Mr. Dhannaseth delivers a rough blue sapphire to a jeweller, to be cut and polished.
The jeweller carries out the job accordingly. However, now Mr. Dhannaseth refuses to
make the payment and want his blue sapphire back. The jeweller denies the delivery
or goods without payment. Examine whether the jeweller can hold blue sapphire. Give
your answer as per the provisions of the Indian Contract Act, 1872.
19. Mr. Truth deposited 100 bags of groundnut in the factory of Mr. False for safe keeping.
Mr. False mixed the groundnut bags with the other groundnut bags in the factory with
the consent of Mr. Truth and consumed it to produce edible oil.Whether Mr. Truth is
entitled to claim his share in the edible oil produced under the provisions of the Indian
Contact Act, 1872?What will be the consequences in case the groundnut bags were
mixed without the consent of Mr. Truth under the above said Act?
20. M lends a sum of Rs.5000 to B on the security of 2 shares of a limited company on 1st
April 2007. On 15th June 2007, the company issued 2 bonus shares. B repays the loan
amount of Rs.5000 along with interest but M returns only 2 shares which were
pledged and refuses to give the 2 bonus shares. Advise B in the light of the provisions
of the Indian Contract Act 1872.
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21. a carrier, discovers that a consignment of tomatoes owned by E has deteriorated badly
before the destination was reached. D was not able to communicate with E. he,
therefore, sold the consignment for what he can get, which was about one third of
market price of good tomatoes. E sues D for damages. D claims that he was an agent
of necessity. Advise him.
22. Sunil borrows a sum of Rs. 3,00,000 from Rajendra. Sunil appointed Rajendra as his
agent to sell his land and authorized him to appropriate the amount of loan out of the
sale proceeds. Afterwards, Sunil revoked the agency. Decide under the provisions of
Indian Contract Act, 1872, whether the revocation of the said agency by Sunil is
lawful?
23. X, the principal, instructed Y, his agent to put goods in X's warehouse, y puts off of the
goods in z's warehouse and the balance in another equally safe warehouse. All the
goods were destroyed by fire without any negligence on the part of Y. is Y liable to X?
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