Business Law

BUSINESS LAW ( Class- Test)
1. A makes a promise to his son to give him pocket money of Rupees one hundred every month. After three
months A stops making the payment. Advise the son. (Hint: Son cannot compel his father as there was no
intention to create legal relationship.)
2. A promises to obtain for B an employment in a government office and B promises to pay Rs. 5000. to A. Is
the agreement valid? (Hint: It is not valid because the object of the agreement is unlawful.)
3. A promises to give a gift of Rs. 1,000 to B on his marriage. A fails to keep his promise. Can B recover the
money? (Hint: B cannot recover the money because there is consideration from B.)
4. A agreed to sell a particular horse to B Later on it was discovered that the horse was dead at the time of
making the contract. Advise the parties. (Hint: The contract is not valid because there is no consent. Both the
parties were under a mistake of fact regarding existence of the subject-matter.
5. Ram offered to pay Rs 10,000 to any person who would swim a hundred yards on Bombay's sea coast on the
New Year's Day. A fisherman was accidently thrown overboard by the rough sea waves and he swam this
distance to save his life. He claimed this award. Will he succeed? (Hint: No, the fisherman cannot claim the
money because he swam the distance without knowing about the offer.
6. A sends a proposal to B by post. B dies before accepting the proposal. B's legal representative accepts the
proposal. Is this acceptance valid? (Hint:No, his acceptance is not binding on A because this is a specific offer
to B and he alone can accept it.)
7. A proposes, by a letter sent by post; to sell his car to B at a certain price. B accepts the proposal by a letter
sent by post. B sends a telegram next day revoking his acceptance and this telegram reaches A before the
letter of acceptance. Is revocation of acceptance valid? (Hint: Yes, B's revocation is valid because the acceptor
can revoke at any time before the letter of acceptance reaches the offerer.)
8. Vijay gave an advertisement in the newspapers that he would sell his household goods by auction on January
10, 1989 at his residence at New Delhi. Amitabh from Bombay, " reached New Delhi on the appointed date
and time, but Vijay had cancelled the auction sale. Advise Amitabh. (Hint: It was not an offer but only an
invitation to offer. Hence, Amitabh cannot take any action against Vijay.)
9. Lalji offered to sell his plot to Sohan for Rs. 10 lakh. Sohan accepts the offer enclosing a cheque for Rs. 2
lakh. With a promise to pay the balance in two instalments. Is there any contract? (hint:no this is a conditional
acceptance.)
10. A minor was facing a criminal prosecution for dacoity. He borrowed Rs. 2,000 to defend himself. Will the creditor
succeed in recovering the amount? (Hint: It is loan for necessaries. It can be recovered from Minor's property).
11. Hari sold some goods to Gaurav on credit not knowing that Gaurav was a minor. Hari did not receive the payment. Can
he sue Gaurav on attaining majority?.(Hint: No, a contract with a minor is void ab-initio).
12. A, a minor sold some goods to B, a major. Can he recover the price? (Hint: Yes, a minor can be a ,promiset.)
13. Anthony, a major, executes a promissory note in favour of Roberts for the necessaries supplied by Roberts to Anthony during
Anthony's minority. Is Anthony liable to Roberts on the promissory note? (Hint: No, Anthony is not liable to pay).
14. Shailendra, on behalf of her minor daughter, entered into a contract with Girish whereby Girish promised to marry her. Later
on, Girish refused to marry. Can she sue Girish for damages? (Hint: Yes, she could maintain a suit for damages as it was for
her benefit .)
15. A threatens to shoot B if he does not sell his scooter to him (A) for Rs. 1,000 B signs the necessary documents for the sale of
scooter. Later on, B wants to avoid the contract. Will he succeed? If so, why? (Hint:B can avoid the contract on the ground
of coercion).
16. Mahesh was suffering from some disease and was in great pain. His doctor agreed to treat him 'provided he signs a
promissory note for Rs.20,000. On recovering from the disease, Mahesh refused to honour the pro-note. Can the doctor
recover the amount of the-promissory note? (Hint : Doctor has employed undue influence on Mahesh. Mahesh is liable to pay
only reasonable fee).
17. Hari sells his horse to Rajesh. Hari knows that the health of the horse is unsound. Hari says nothing to Rajesh about the
unsoundness of the health of horse. Is this contract valid? (Hint : Yes, this contract is valid, because it is not the duty of the
seller to disclose defects).
18. N entered into a jeweller's shop and selected some jewels. He gave a cheque in the name of G.B., a man of repute. The
jeweller accepted the cheque and allowed N to take the jewels. N pledged the jewels with B who had no knowledge of the
fraud. Can the jeweller recover the jewels from' B? (Hint : No, the jeweller cannot recover the jewels from third party. It is
not a mistake regarding the identity of person contracted with, but only about her attributes.)
19. Avinash, while selling an unsound horse to Rakesh puts on the stable's door a forged certificate from a veterinary doctor that
the horse is sound. Rakesh sees the horse casually but does not notice the certificate and buys the horse. Rakesh wants to
terminate the contract on grounds of fraud. Will he succeed? (Hint : Rakesh will not succced. His consent was not affected by
the forged certificate).
20. A sells a painting to B saying that it is an original work of Picaso. Unknown to both the parties, the original painting was
stolen and its copy was placed there. Is the contract valid? (Hint : The contract is void on ground of bilateral mistake as to the
quality of the subject-matter).

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BUSINESS LAW ( Class- Test)

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