Contracts Assignment

UNIVERSITY OF PETROLEUM & ENERGY STUDIES
COLLEGE OF LEGAL STUDIES
Bcom, LL.B. (taxation) 2017
SEMESTER -I
ACADEMIC YEAR: 2017-2018 SESSION: JULY- DECEMBER
ASSIGNMENT
FOR
Law of Contract - 1
(LLBL101)
Under the Supervision of: Ms. Vandana Bakshi
(TO BE FILLED BY THE STUDENT)

NAME: _______________________
SAP NO: _______________________
ROLL NO: __________________________

Attempt all questions.
Section A
Q. 1 Multiple types Questions: You are required to mention the correct option only.
(Example: Answer 1 (correct option only, need not to mention the entire sentence)
(1 mark each)
(i). which one of the following is not an essential to a valid contract in India?
a. free consent
b. valid consideration
c. intention to create a legal relationship
d. competent parties
(ii). Assumpsit is a form of:
a. Common law remedy

b. A contract under seal
c. A form of formal contract
d. None of the above.
(iii). Correct sequence in formation of a contract:

a. Offer, acceptance, agreement, consideration
b. Agreement, consideration, acceptance, offer
c. Offer, consideration, acceptance, agreement
d. Offer, acceptance, consideration, agreement
(iv). An oral contract is a valid contract. True or False.
(v). Which of the following is an offer?

a) Newspaper advertisement regarding an auction
b) Display of medicines by a pharmacist in shelves with prices marked on
c) Announcement for a reward on finding a lost pet dog.
d) Inviting for e tenders.
(vi). Who is a offeree?

a. One who gives an offer.
b. One who receives an offer.
c. One who accepts an offer.
d. One who receives the acceptances of an offer.
(vii). A counter offer is
a. An invitation to an offer
b. An acceptance of the offer
c. A rejection of original offer
d. A bargain
(viii). The inadequacy of consideration will be taken into account by the court of law:
a. When the promisor expresses his desire to get maximum return for his promise
b. When the promisor performs his promise
c. When fraud, coercion or undue influence in the formation of contract is pleaded
d. Inadequacy of consideration forms a valid consideration and has no consequence.
(ix). Who cannot form a contract?

a. A boy of 18 years of age.
b. An aged woman of 65 years of age.
c. A woman of 80 years of age who is of unsound mind.
d. None of the above.
(x). Consideration
a) Must have some values in the eyes of law
b) Must be real
c) Must not be illusory
d) All are correct (10 marks)
Section B
Q2. Write short notes on the following:
(5 marks each)
i. Assumpsit
ii. Wagering agreement and contingent contract
iii. Privity of consideration under Section 2(d).
iv. When is the communication of acceptance complete? Please discuss. (20 marks)
Section C
Q3. A, an owner of the property executed a deed of transfer of property in favor of his son B,
with a direction that B should pay to his mother, C an amount of Rs 8,000 per month after
his death. B agreed to the direction. B paid few installments but refused to pay money to C
after soemtime. C sued B in the court of Law for the enforcement of the contract entered
between A and B.
Answer the following:

a) Whether contract entered between A and B can be enforced by C? (5 Marks)
b) Define Doctrine of Privity of Contract? Is it applicable to India as it is applicable in
England? Are there any exceptions to the Doctrine of Privity? Explain with the help of
judicial decisions. (5 Marks)
Q4. Answer the following with reasoning: (Total marks 10)
18th July: X posts offer letter to Y.

20th July: Y receives offer at noon.
21st July, Morning: Y posts letter of acceptance.
21st July, Evening: Y changes his mind and calls X on the telephone rejects the offer,
telling him that he is no more interested.
24th July: X receives letter of acceptance.
a) Who is the promisor and promise in the following contract?

b) When is the communication of offer complete? Discuss with relevant case law.
c) When is the communication of acceptance complete
1. As against the offeror
2. As against himself
d) What is the consequence of the communication made by the Y?
Section D
Q.5 Application Based Question. Decide with relevant legal provisions and case laws. (5
marks each)
i. A, a 80 years old man, lives with and depends for his supports on his nephew, B. One
day, B tells A that he will no longer support him unless B makes a contract to sell him
a piece of land that he owns. A is thereby induced to make the proposed contract. If A
subsequently refuses to perform and B sues, who will prevail and why?
ii. Raj Kumar agrees to pay Rs 10,000 to Mohits’s favourite charity if he completes the
Mumbai Marathon in under three hours. Mohit enters the race, but when he is half
way round Raj Kumar passes him on his motor bike, shouting “I was only joking, the
bet’s off!”. Mohit completes the race in 2 hours 59 minutes, pays Rs 10,000 to the
charity himself, and sues Raj Kumar for reimbursement. Advise Raj Kumar.
iii. A agrees to sell her house to B for Rs. 45,00,000. Nothing is put in writing, but A
gives B the keys to the house, which B accepts. B never enters the house. Two
months later, the house is flooded. B now says that she does not wish to proceed with
the transaction. Advise A.
iv. Rita invited Mohan to a dinner at her house on Sunday. Mohan hires taxi and reaches
Rita’s house at appointed time, but Rita failed to perform her promise. Mohan felt
insulted and filed suit for recovery of the amount Rs 500 which he spend on hiring
taxi. Decide.
v. Government of Uttarkhand invites tenders for supply of cement during yr 2015-2014

stating further requirements will be 100 kgs to be supplied in 4 quarterly instalments,
according to order placed after approval of tender. The tender of M/s Mohan Prakash
and Sons is approved and an order is placed asking it to supply 100 tons to be
supplied in 4 quarterly instalments. Can Government of Uttarkahnd revoke its
acceptance after placing order? Can M/s Mohan Prakash and Sons revoke its tender in
this case?
vi. On Mr and Mrs Ram’s marriage, Mr Ram’s aunt buys an expensive 3 piece suite as a
wedding gift from Satya Paul, a well-known designer clothing store. She makes it
clear when purchasing the 3 piece suite that it is a gift. The contract includes a term to
the effect that the goods are of satisfactory quality. After 2 weeks of wear the fabric
on the suite wears thin and frays, and after 3 weeks, two castors collapse. Can Mr and
Mrs Ram sue Satya Paul? Give reasons for your answer.
vii. Mrs A wants to construct an animal shelter in her locality. She purchases a piece of
land for this purpose. Mrs. A, thereafter, approaches the public to make donations for
this noble cause. Sixty persons agreed to donate Rs 5,000 each. Later on, however,
when construction of building started few refused to make payments as promised by
them. Can Mrs. A enforce this payment through court of law. What would be your
answer if 30 people made payments yet on construction started and A sue the
remaining 30 for non –payment.
viii. Shikha’s father on her behalf, being 10 years old girl executed an agreement with a
film producer for girls acting in a film. However, the producer gave no work to the
Shikha in that film. Can she file a suit for breach of contract? Will your answer be
different if father had entered apprenticeship agreement for shikha instead of acting in
film.
ix. S sold his land worth Rs 50 lacs to Y for Rs. 25 lacs as he needed money badly for
medical expenses of his wife who had serious injuries in an accident. Later, S applies
for cancellation of the sale on the ground that contract to sell the land was based on
undue influence. Decide.
x. A Contracts with B to deliver 100 tons of pig iron at controlled price on a fixed day.
A does not deliver on specified time and in consequence of this B is prevented from
performing a contract with C. A was not aware of contract between B and C. whether
A is liable to pay any damages to B due to breach of contract.

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UNIVERSITY OF PETROLEUM & ENERGY STUDIES

COLLEGE OF LEGAL STUDIES

Bcom, LL.B. (taxation) 2017

ACADEMIC YEAR: 2017-2018 SESSION: JULY- DECEMBER

Under the Supervision of: Ms. Vandana Bakshi

(TO BE FILLED BY THE STUDENT)

SAP NO: _______________________

ROLL NO: __________________________

(ii). Assumpsit is a form of:

a. Common law remedy

(iii). Correct sequence in formation of a contract:

(iv). An oral contract is a valid contract. True or False.

(v). Which of the following is an offer?

(vi). Who is a offeree?

(ix). Who cannot form a contract?

Answer the following:

Q4. Answer the following with reasoning: (Total marks 10)

18th July: X posts offer letter to Y.

a) Who is the promisor and promise in the following contract?

v. Government of Uttarkhand invites tenders for supply of cement during yr 2015-2014

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