UNIT-1

Q1. State with reasons whether the following statement is Correct or Incorrect ?
(a) A proposal may be revoked by the proposer before the posting of the Letter of
acceptance by the acceptor .

(b) If an offer is made in the form of a promise in return for an act, the performance of
that act even without any communication thereof, is to be treated as an acceptance of
the offer.
(c) Counter offer to an offer does not make the original offer lapse.

(d) "Acceptance can be made oven without the knowledge of the offer”

(e) 'An agreement with intention to create legal liability is not enforceable in law.

(f) All kinds of obligations created between the parties form part of the contracts.

(g) A contract to purchase a black horse, which was dead at the time of bargain, is voidable.

(h) "If the offeree does not accept the offer according to the mode prescribed by the
offeror, the offer does not lapse automatically"

(i) Communication of an offer is complete when the letter is posted though it has not
reached the person to whom the offer is made.

(j) "Where the mode of acceptance is proscribed in the proposal, it need not be accepted
in that manner."

(k) A proposal when accepted becomes a contract.

(l) An illegal contract is fatal to the main contract, but not to collateral transactions.

(m) "Every agreement is necessarily regarded a contract."

(n) The proposal should always be communicated to the person to whom it is made

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(o) "An agreement which is enforceable by law at the option of one or more of the parties
thereto, but not at the option of the other or others, is void."

(p) Communication of acceptance of an offer is complete as against the acceptor the

moment it comes to the knowledge of the offeror.

(q) Offer may be revoked after the letter of acceptance is posted by acceptor.

Q2. Explain the type of contracts in the following agreements under the Indian Contract
Act, 1872:
(i) A coolie in uniform picks up the luggage of A to be carried out of the railway station
without being asked by A and A allows him to do so.
(ii) Obligation of finder of lost goods to return them to the true owner
(iii) A contract with B (owner of the factory) for the supply of 10 tons of sugar, but before
the supply is effected, the fire caught in the factory and everything was destroyed.

Q3. “All contracts are agreements, but all agreements are not contracts”. Comment.

Q4. Explain the type of contracts in the following agreements under the Indian Contract
Act, 1872:
(i) X promise to sell his scooter to Y for Rs. 1 Lac. However, the consent of X has been
procured by Y at a gun point.
(ii) But no payment was made till 2019.
(iii) G agrees to give tuitions to H, a pre-engineering student, from the next
month and H in consideration promises to pay G Rs. 5,000 per month.

Q5. 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?

Q6. Define the term “Acceptance”. Discuss the legal provision relating to communication of
acceptance.

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Q7. 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.

Q8. 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 ofhis 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?

Q9. State whether there is any contractin following cases:

(a) A engages B to do certain work and remuneration to be paid as fixed by C.
(b) A and B promise to pay for the studies of their maid’s son
(c) A takes a seat in public bus.
(d) A, a chartered accountant promises to help his friend to file his return.

Q10. “An agreement, the meaning of which is not certain, is void”. Discuss.

Q11. Miss Shakuntala puts an application to be a teacher in the school. She was appointed by
the trust of the school. Her friend who works in the same school informs her about her
appointment informally. But later due to some internal reasons her appointment was
cancelled. Can Miss Shakuntala claim for damages?

Q12. Write short note on “Kinds of offer.”

Q14. Write short note on “Offer and invitation to offer”

Q15. Write short note on “Rules regarding acceptance.”

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Q16. Distinguish between: “Void and Voidable Contract.

Q17. Distinguish between: "An Illegal agreement and Void agreement.”

Q18. What agreements are expressly declared void by the Indian Contract Act?

Q19. What are the essential elements of a valid contract?

Q20. Comment on the following: “A proposal can be revoked otherwise than by communication”

Q21. Comment on the following-“Counter offer to an offer, lapses the offer.”

Q.22 Who is competent to accept an offer? Explain the rules relating to an offer, as provided
in the Indian contract Act, 1872.

Q23. Comment on the following “An acceptance must be made before the proposal lapse”

Q24. When does an offer come to an end?

Q25.
(i) Mr. Ramesh promised to pay 350,000 to his wife Mrs. Lali so that she can spend the sum
on her 30h birthday. Mrs. Lali insisted her husband to make a written agreement if he
really loved her. Mr. Ramesh made a written agreement and the agreement was
registered under the law. Mr. Ramesh failed to pay the specified amount to his wife
Mrs. Lali. Mrs. Lali wants to file a suit against Mr. Ramesh and recover the promised
amount. Referring to the applicable provisions of the Contract Act, 1872, advise
whether Mrs. Lali will succeed.
(ii) A shop-keeper displayed a pair of dress in the show-room and a price tag of 2,000 was
attached to the dress. Ms. Lovely, looked at the tag and rushed to the cash counter.
Then she asked the shop-keeper to receive the payment and pack up the dress. The
shop-keeper refused to hand - over the dress to Ms. Lovely in consideration of the price
stated in the price tag attached to the dress. Ms. Lovely seeks you advice whether she
can sue the shop-keeper for the above causa under the Indian Contract Act, 1872.

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Q26. 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 16 April 2020
and the letter reaches Mr. B on 20 April 2020. On 17th April Mr. S changed his mind
and sends a telegram withdrawing his acceptance. Telegram reaches to Mr. B on 19 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 I letter of revocation and letter of
acceptance reached together?

Q27. State with reason(s) whether the following agreements are valid or void:
(i) A clause in a contract provided that no action should be brought upon in case of breach.
(ii) Where two courts have jurisdiction to try a suit, an agreement between the parties
that the suit should be filed in one of those courts alone and not in the other.
(iii) X offers to sell his Maruti car to Y. Y believes that X has only Wagon R Car but agrees
to buy it.
(iv) X, a physician and surgeon, employs Y as an assistant on a salary of ₹ 75,000 per month
for a term of two years and Y agrees not to practice as a surgeon and physician during
these two years.

Q28. X agrees to pay Y ₹ 1,00,000/-, if Y kills Z. To pay Y, X borrows ₹ 1,00,000/- from W,

who is also aware of the purpose of the loan. Y kills Z but X refuses to pay. X also to
repay the loan to W. Explain the validity of the contract.
(i) Between X and Y.
(ii) Between X and W

Q29. Radha invited her ten close friends to celebrate her 25th birthday party on 1st
January, 2023 at 7.30 P.M. at a well-known "Hi-Fi Restaurant" at Tonk Road, Jaipur. All
invited friends accepted the invitation and promised to attend the said party. On
request of the hotel manager, Radha deposited ₹ 5,000/- as non-refundable security
for the said party. On the scheduled date and time, three among ten invited friends did
not turn up for the birthday party and did not convey any prior communication to her.

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 Radha, enraged with the behaviour of the three friends, wanted to sue them for loss
incurred in the said party. Advise as per the provisions of the Indian Contract Act,
[Link] your answer differ if the said party had been a "Contributory 2023 New
Year celebration Party" organized by Radha? (4 Marks)

Q30. Decide with reasons whether the following agreements are valid or void under the
provisions of the Indian Contract Act, 1872:
(i) Vijay agrees with Saini to sell his black horse for ₹ 3,00,000. Unknown to both the
Parties, the horse was dead at the time of the agreement.
(ii) Sarvesh sells the goodwill of his shop to Vikas for ₹ 10,00,000 and promises not to
carry on such business forever and anywhere in India.
(iii) Mr. X agrees to write a book with a publisher. After few days, X dies in an
accident.

Q31. Ramaswami proposed to sell his house to Ramanathan. Ramanathan sent his acceptance
by post. Next day, Ramanathan sends a telegram withdrawing his acceptance.
Examine the validity of the acceptance according to the Indian Contract Act, 1872 in
the light of the following:
(a) The telegram of revocation of acceptance was received by Ramaswami before the
letter of acceptance.
(b) The telegram of revocation and letter of acceptance both reached together.

Q32. A coolie in uniform picks up the luggage of R to be carried out of the railway station
without being asked by R and R allows him to do so.
Examine whether the coolie is entitled to receive money from R under the Indian
Contact Act, 1872.

Q33. Comment on the following statements:

(a) Acceptance must be absolute and unqualified.
(b) Acceptance must be in the prescribed mode

Q34. 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

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 efforts got the stolen car and informed Mr. Aseem. Mr. Aseem found his car but denied
giving reward of ₹ 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 ₹ 10,000.

Q35. Mr. Y is a devotee and wants to donate an elephant to the temple as a core part of ritual
worship. He contacted Mr. X who wanted to sell his elephant. Mr. X contracted with Mr.
Y to sell his elephant for ₹ 20 Lakhs.
Both were unaware that the elephant was dead a day before the agreement. Referring
to the provisions of the Indian Contract Act, 1872, explain whether it is a void, voidable
or a valid contract.

Q36. State which of the following agreements are valid contract under the Indian Contract
Act, 1872?
(a) A, who owns two cars is selling red car to B. B thinks he is purchasing the black car.
(b) A threatened to shoot B if he (B) does not lend him ₹2,00,000 and B agreed to it.
(c) A agrees to sell his house to B against 100 kgs of cocaine (drugs).
(d) A ask B if he wants to buy his bike for ₹ 50,000. B agrees to buy bike.

Q37. State with reason(s) whether the following agreements are valid or void as per the
Indian Contract Act, 1872:
(i) Where two courts have jurisdiction to try a suit, an agreement between the parties
that the suit should be filed in one of those courts alone and not in the other.
(ii) X offers to sell his Maruti car to Y. Y believes that X has only Wagon R Car but agrees
to buy it.
(iii) X, a physician and surgeon, employs Y as an assistant on a salary of ₹ 75,000 per month
for a term of two years and Y agrees not to practice as a surgeon and physician during
these two years.

Q38. Mr. Joy owns two flats in a building. He wanted to sell flat no.101 to Mr. Roy. Mr. Joy
offered to sell his flat no. 101 to Mr. Roy, but Mr. Roy thought that Mr. Joy wanted to
sell flat no. 102 and said yes for the agreement. Considering the provisions of Indian
Contract Act, 1872, discuss the validity of such a contract. (4 Marks)

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Q39. Ashwin goes to super market to buy a Air Conditioner. He selects a branded Air
Conditioner having a price tag of ₹ 40,000 after a discount of ₹ 3000. Ashwin 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 ₹ 43,000.”
Ashwin got angry and insists for ₹ 40,000. State with reasons whether under Indian
Contract Act, 1872, Ashwin can enforce the cashier to sell at discounted price i.e. ₹
40,000.