PREVIOUS YEAR IMPORTANT QUESTIONS

1. Write short note on proposal  and invitation to proposal ?
2. Analyse  the law relating to offer and acceptance in the making of contract in India?
3.  Define consideration according to Indian Contract Act?
4. All contract are agreement but all agreement are not contract comment?
5. Discuss the Doctrine of ‘Consideration’ under the Indian Contract Act.
6. Define Bailment. Discuss the essentials of a Contract of Bailment.
7. Comment on An Agent cannot delegate his authority to another.
8.  X offers to take Z land on certain terms. The acceptance of Z is to be given within four weeks. Within that time Z writes to X a letter purporting to accept the offer but, in fact, the letter, contained a material variation of the terms. X then withdraws his offer. Z writes again still within four weeks correcting the error in his first letter and accepting the terms originally proposed by X, State whether a contract has been formed between X and Z, and if Z has any remedy available against X?
9. Will P succeed in the following cases: On January 2, 1986 D sent a letter offering to sell a certain quantity of wool to P. The letter added, receiving your answer in course of post. P received the letter on 5 th January and on the very evening wrote to D agreeing to accept the wool. But his letter was received by D on 9 th January. Meanwhile D, having waited for P’s acceptance upto 8 th January and not having received it, should the wool to other parties. P sues D for breach of contract.
10. Distinguish an “offer” from an “invitation to offer”. A published an advertisement for selling his house at a price of Rs. 15 lakhs. A declined to sell his house to B who was ready to pay Rs.15 lakhs as price of house of A. A sold his house to C who agreed to pay price of Rs.20 lakhs. Whether B can sue A for purchase of house?
11. Define Consideration. State the exceptions to the rule that contract of guarantee.
12. The managing committee of a school offered a post of teacher to “A” on monthly salary of Rs.500/-. “A” in reply while accepting the offer imposed a condition that he would join the post only if he was to be given a five years contract. The committee wrote back requiring “A’ to join the post by a certain date mentioning that it had no objection for giving him a five years contract which will be executed in writing formally latter on. “A” joined the post on specified date. Services of “A” were terminated after 2 1/2 years giving him one month’s notice. “A” claimed in a suit, damages in shape of the whole salary of the unexpired period of five years as he could not secure any other job despite efforts. Decide the case giving reasons.
13. A died intestate on 12.01.1961. He filed a proposal for insurance for Rs. 50,000 on 27.12.1960. There was medical examination by doctor of Insurance company of deceased on 27.12.1960. Deceased had issued 2 cheques for Rs.300 and 220 respectively in favour of Life Insurance Corporation. Cheque for Rs.300 was encashed by Insurance Co. and cheque of Rs. 200 was dishonoured 3 times but was finally encashed on 11.1.1961. Insurance papers were put up by the concerned insurance staff of Divisional Manager but he did not sign the Insurance Policy. Divisional Manager was the competent authority to accept the policy. No communication accepting proposal of Insurance Policy was issued by Insurance Corporation.
14.  Explain what is wagering contract? Is suit maintainable to enforce agreement by way of wager? Distinguish between a wagering contract from a teji mandi transaction. Where a suit is brought by a broker or an agent against his principal to receive his brokerage or commission in respect of wagering transactions entered into by him in such or for indemnity for losses incurred by him as such transaction on behalf of his principal, would such collateral agreements be enforceable?
15.  It is an essential condition for challenging a contract on the basis of undue influence that one of the parties should be in a position to dominate the will of the other. In that light of the 3 above statement examine the role of Undue Influence in determining the validity of otherwise of a contract.
16. A, a Doctor, employed another Doctor B, as assistant for a period of 3 years on a salary of Rs. 3000/- per mensum. There was an agreement between A and B which provided that after the termination of his employment B shall not practice as a Doctor within a radius of 3 kms of A’s dispensary for a period of three years and if B did so, B should pay Rs. 50,000 as liquidated damages. Immediately after the termination of his employment, B started his practice as a Doctor next to A’s dispensary. A, thereupon sued B for the recovery of Rs. 50,000. d) X, a leading manufacture of sports goods appoints Y as his distributor for Delhi. According to the agreement Y cannot sell sports goods including sports shoes and apparel in Delhi during the subsistence of agreement. Is this condition valid. Discuss?
17.  Neha a software programmer, takes up employment with Macro ware Ltd. a large software development company. Her contract of employment included the following two clauses: i) During the course of her employment with Macrowave Ltd. Neha shall not take up any other employment or indulge in software development for third parties. ii) In the event of the termination of the contract of employment, for whatever reason, Neha shall not, for a period of three (3) years thereafter, complete directly or indirectly with Macrowave Ltd. or take up employment as a software programmer with any competitor of Macrwave Ltd. a) Would these causes be enforceable in a court of law? Discuss b) Let us assume that Neha, instead of taking up employment with Macrowave Ltd., entered into a partnership with two other programmers Amit and Salma and set up the firm NASware. Assume further that after two years, Neha retires from the partnership which continues with Amit and Sauna as its partners. While retiring from the firm, Neha is paid whatever is due to he, from the partnership and, additionally she is also paid an amount of Rs. 25 lakhs or agreeing to give up any claim to the name NASware and the bundle of benefits associated with it. Despite this, Neha starts a sole proprietorship concern using the same name NASware. Is Neha legally entitled to do so? Discuss.
18.   A agreed to sell B a thresher by the 5 th August,1998 as it was required by B for his wheat crop. A repeatedly assured B that delivery would be made within stipulated time. A failed to deliver machine by the agreed date upon which B tried his best to get one from market but he could not. Rains come around 20th August, 1998 damaging stocked wheat in the field of B. B sued A for damages an account of damage to the crop due to rain, stacking charges and loss due to fall in prices. Decide.
19. What is the law relating to performance of contract by joint promisors under the Indian Contract Act, 1872?
20.  A, B and C are partners in a firm. C retires from firm under agreement with A and B that all assets and liabilities of the firm will be that of A and B. D, a creditor of firm sues A,B and C. C refers to agreement with A and B and denies liability to D. Discuss the liability of C.
21. “The sanctity of a contract is the foundation of the law of contract and the doctrine of impossibility cannot be permitted to become a device for destroying this sanctity”. Discuss the implications of this statement.

22. a) B, a tenant owes rent for the month of January, February, March and April. He sends, the amount of rent for the month of March.

b) Yamuna Developers Pvt. Ltd. (YDPL) contracted with Jaipur Tiles Ltd. (JTL) for supplying various kinds of tiles to its Green Valley Project with actual cost of Rs. 50,00,000. JTL agreed to accept Rs.20,00,000 in satisfaction of its claim of Rs.30,00,000. Later on JTL filed a suit for the enforcement of contractual obligation. Decide the case on the basis of relevant legal provisions and case law.

c) X holds land in Bihar on a lease granted by Z, the landlord. The revenue payable by Z to the Government being in arrear, the land is advertised for sale by the Government. Under the revenue law, the consequence of such sale, will be annulment of the lease of X. X to prevent the sale, pays the government the sum due from Z. Is liable to me good to X. On the other hand he demands the return of Rs. 500 already paid by him contending that the whole agreement was unlawful. Decide.

 d) A is a teacher in a degree college and B is his wife. A goes to Germany on study leave for one year. In A’s absence B maintains herself with the money sent by A. On times when there is delay in the arrival of money she takes goods on credit and pays after she gets the money. Thus once she purchased on credit one maund of rice, four sarees and one gold necklace. Fifteen days after this A came back. Of which of these goods A is bound to pay the price?

23. A company agreed to supply one thousand blankets to X by a particular date. Rupees 10,000/- were paid as an advance to the company by X. Before the due date of performance of the contract, the company informed X that it would not supply blankets on due date and that he should treat the contract as repudiated. X did not accept the repudiation and kept on demanding the supply till the last date/ due date of performance of the contract. In the meantime, war between Indian and China broke out, and all the stocks of the company were requisitioned by Government for military purposes. X files a suit against the company for damages for breach of contract.

a)Will he succeed? Decide by referring to the provisions of the Indian Contract Act and decided cases.

b) Write Short note on Compensation for breach of contract.

24. a) Explain in detail the discharge of a surety.

b) Discuss the essentials of contract of bailment and describe the duties of a Bailee.

25. X lends his car to Z for his own driving and use within the municipal limits of Gaya. Y, near relation of Z suddenly took ill in a village ten miles away. Z’s son had to drive the car to the village with a doctor. On his way back the car struck against an electric pole and got severely damaged. Discuss the rights and liabilities of the parties X and Z. What difference should it make if the accident had occurred within the municipal limits of Gaya? d) Comment on An agent cannot delegate his authority to another