LAW TEST 1

EACH QUESTIONS CARRIES 5 MARKS

1. A sends an offer to B to sell his second-car for Rs.1, 40,000 with a condition that if B does not
reply within a week, he (A) shall treat the offer as accepted. Is A correct in his proposition? What
shall be the position if B communicates his acceptance after one week?

2. Mr. Pratham applied for a job as principal of a school. The school management decided to appoint
him. One member of the school management committee privately informed Mr. Pratham that he
was appointed but official communication was not given from the school. Later, the management
of the school decided to appoint someone else as a principal. Mr. Pratham filed a suit against the
school for cancellation of his appointment and claimed damages for loss of salary. State with
reasons, will Mr. Pratham be successful in suit filed against school under the Indian Contract Act,
1872?

3. Mr. Aseem is a learned advocate. His car was stolen from his house. He gave an advertisement in
newspaper that he will give the reward of $ 10,000 who will give the information about his car. Mr.
Vikram reads the advertisement and on making some efforts got the stolen car and informed Mr.
Aseem. Mr. Aseem found his car but denied giving reward of Rs.10,000 to Mr. Vikram with the
words, “An advertisement in newspaper is just an invitation to make offer and not an offer. Hence,
he is not liable to make the reward.” State with reasons whether under Indian Contract Act, 1872,
Mr. Vikram can claim the reward of Rs. 10,000.

4. Rahul goes to super market to buy a washing machine. He selects a branded washing machine
having a price tag of Rs. 15000 after a discount of Rs. 3000. Rahul reaches at cash counter for
making the payment, but cashier says, “Sorry sir, the discount was upto yesterday. There is no
discount from today. Hence you have to pay Rs. 18000.” Rahul got angry and insists for Rs.
15000. State with reasons whether under Indian Contract Act, 1872, Rahul can enforce the cashier
to sale at discounted price i.e.Rs. 15000.

5. Shambhu Dayal started “self service” system in his shop. Smt. Prakash entered the shop, took a
basket and after taking articles of her choice into the basket reached the cashier for payments.
The cashier refuses to accept the price. Can Shambhu Dayal be compelled to sell the said articles
to Smt. Prakash? Decide as per the provisions of the Indian Contract Act, 1872

6. Mr. B makes a proposal to Mr. S by post to sell his house for Rs.10 lakhs and posted the letter on
10th April 2020 and the letter reaches to Mr. S on 12th April 2020. He reads the letter on 13th
April 2020. Mr. S sends his letter of acceptance on 16th April 2020 and the letter reaches Mr. B on
20th April 2020. On 17th April Mr. S changed his mind and sends a telegram withdrawing his
acceptance. Telegram reaches to Mr. B on 19th April 2020. Examine with reference to the Indian
Contract Act, 1872: (i) on which date, the offer made by Mr. B will complete? (ii) Discuss the
validity of acceptance. (iii) What would be validity of acceptance if letter of revocation and letter
of acceptance reached together?

7. Mr. Ram Lal Birla was a big businessman of city Pune having two sons and one married daughter.
He decided to gift his one house to his daughter. For this purpose, he called his lawyer at his
house and made a written document for such gift. The lawyer advised him to get the transfer
document properly registered. When they both were going for registration of document, they met
with an accident and both of them died. Later, his daughter found the document and claimed the
house on the basis of that document. Explain, whether she can get the house as gift under the
Indian Contract Act, 1872?

8. Mr. Balwant, an old man, by a registered deed of gift, granted certain landed property to Ms.
Reema, his daughter. By the terms of the deed, it was stipulated that an annuity of Rs. 20, 000
should be paid every year to Mr. Sawant, who was the brother of Mr. Balwant. On the same day
Ms. Reema made a promise to Mr. Sawant and executed in his favour an agreement to give effect
to the stipulation. Ms. Reema failed to pay the stipulated sum. In an action against her by Mr.
Sawant, she contended that since Mr. Sawant had not furnished any consideration, he has no right
of action. Examining the provisions of the Indian Contract Act, 1872, decide, whether the
contention of Ms. Reema is valid?

9. Mr. Y has given loan to Mr. G of Rs. 30,00,000. Mr. G defaulted the loan on due date and debt
became time barred. After the time barred debt, Mr. G agreed to settle the full amount to Mr. Y.
Whether acceptance of time barred debt contract is enforceable in law?

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 LAW TEST 1
10. “To form a valid contract, consideration must be adequate”. Comment.

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