Sharda University

Business Law
Assignment (Problem Solving)
Note: Attempt all the questions
1. Varun sells and delivers goods to Deepak. Agnibesh afterwards,
without consideration agrees to pay for them in default of Deepak. Is
the agreement valid? Give reasons.
Ans: Yes, as agnibesh pays it by his will.
2. Dhruv agrees to sell to Rachit, My white horse for rupees five
hundred or rupees one thousand. Is the agreement valid?
Ans: Not valid agreement
Reason No acceptance from Rachit and no information by dhruv.
3. Nikitas father promised her that he would pay Rs 2000/- per month
as pocket money to her. He however did not honor his promise. Can
Nikita enforce this promise against him?
Ans: There is no legal existence between the parties.
4. Bhaskar offers to sell his car for Rs 8000/- to Ankit. Ankit says to
Bhaskar that he will buy the car for Rs 6000/-. Is it an acceptance of
the offer? Give reasons for your answer.
Ans: No, as this a counter offer and having price differs with the
seller. And also there is no acceptance of the offer.
5. Rajesh offered by letter to buy Saurabhs motorbike for Rs 50,000/,
adding If I hear no more from you. I shall consider the motorbike as
mine. No answer was given by Saurabh. Is there any contract?
Ans: Yes a valid contract. As no answer is given by saurabh that
amount to silence which means acceptance.
6. Ruchi offered to sell an iPod for Rs 5000/- to Pallavi, but Pallavi was
willing to pay only Rs 3000/- . Ruchi refused. Now Pallavi offered Rs
5000/- but Ruchi refused. Was it a valid contract?
Ans: As there is no acceptance from Ruchi there is valid contract.
7. Mr. Harsh advertises in a newspaper that he would pay Rs 1, 00,000
to anyone who traces his missing son. Bobby traced that boy and

claimed the amount of reward. State whether Bobby is entitled to

receive the amount of reward in the following cases
(1)If he knew about the reward
(2)If he did not know about the reward
Ans:
1. He is entitled the amount of reward.
2. Even if he does not know about the reward he is entitled to receive
the amount of reward

Substantiate your answers using the relevant law and cases on the
point

8. Shambu, a minor, borrowed a sum from Sethji by executing a

mortgage of his property in favour of Sethji. Subsequently, Shambu
sued for setting aside the mortgage. Is the mortgage valid? Can
Sethji recover the sum advanced to Shambu? Substantiate your
answers using the relevant law and cases on the point.
Ans: According the provision of Indian contract act, a minor is a person
of under the age of 18, so contract with him is not a valid contract. As
Per Mohri Bibi case, as per section 10, 11 the agreement made with
minor is void ab initio. So sethi cannot recover the sum from shambu as
he is a minor.
9. George intends to sell his horse to Richard. Georges horse is
medically unfit. He prepares a false certificate of fitness said to be
issued under the name of a veterinary doctor. He then pastes this
certificate on the door of the stable. Richard without looking at the
certificate enters the stable and purchases the horse. Later on
Richard comes to know that the horse is medically unfit. Can Richard
now cancel the contract on the basis of fraud of George? Give
reasons
Ans: Silence about material is not fraud unless there is a duty of a
customer to speak and ask about the goods. George has not done any
fraud and Richard cannot cancel the contract as it is not fraud.
10.
Maria, the mother of an illegitimate child, makes a contract
with Stephen, the father of the child whereby he agrees to pay to

Maria Rs 2000/- per month in consideration of maintaining

the
child. After, paying the promised amount for six months Stephen
refuses to pay the same.
He takes the defence that Maria was
performing only the statutory duty to maintain the child, and
therefore, there was no consideration for the promise. Decide giving
reasons.
Ans: Balfour vs Balfour case, there is no legal existence between the
parties as there is a contract between the parties and wife and its true
that there will be no consideration from the promises.
11.
Sukdev without the request of anyone extinguishes the fire of
Mr. Khans godown. Sukdev suffers severe burns thereby. Mr. Khan
promises to compensate Sukdev for the whole amount that he has
spent for his treatment. Can Sukdev enforce the promise of Mr. Khan
and recover the amount?
Ans: Yes, Sukhdev can enforce the promise from Mr. Khan and recover
the amount as it is case of past consideration.
12.
Javed fraudulently informs Naved that Javeds estate is free
from encumbrances. Naved, thereupon buys the estate. Later he
finds that Javeds estate is subject to mortgage. Is it a void or
voidable contract? State reasons. Past consideration is an act which
is dines without any promise at the time of the act.
Ans: Voidable contract because Naved has an option to accept as it is or
to make it void.
13.
Dinesh gave a loan to Laila, a married woman to enable her to
obtain a divorce from her husband. Dinesh agreed to marry Laila
after the divorce. Can Dinesh recover the loan from Laila?
Ans: Yes, he can recover the amount of loan if it is not a friendly deal.
14.
Rahul is in need of financial assistance to enable him to file a
suit for recovery of Rs.5000/- from Ishwar. Shashi agrees to provide
funds to Rahul if Rahul agrees to pay him one-fourth of the amount
recovered from Ishwar.
Ans: Yes Shashi can sue the Rahul if he refuses to pay him of the
amount recovered.
15.
Alankrita picks up a packet of sugar with a label stating the
price as Rs.30/- at Reliance Super store but the cashier tells her that
the correct price for the packet of sugar is Rs.52/- and takes it back
from Alankrita. Decide.

Ans: Alankrita can the packet of sugar in Rs30/- as wrong description is

written on price tag.
16.
Laxman, an agent of Kunj&Co refused to hand over the account
books to Hari, the new agent sent in his place, unless Kunj & Co
released him from all his liabilities. Kunj &Co had to give a release
deed as demanded. Is this a valid contract?
Ans: This is not a contract as there is no essential of valid contract.
Consideration, offer and acceptance
17.
Mohit offered to sell 100 shares of a company to Pawan. In
preparation Pawan sold off some of his own shares to get money to
buy the shares. As the sale was hurried, Pawan did not get a good
value. In the meanwhile, Mohit changed his mind and communicated
to Pawan that he would not be selling the shares. Pawan is
demanding damages and compensation. Would Pawan succeed?
Ans: Yes Pawan can claim for damages and compensation.
18.
Saman offered to sell Pradeep a pump set for Rs 8000/-. The
payment had to be made by cheque. Pradeep turned it down and
offered to buy the pump set for Rs 7000/-. Saman turned down this
offer. Later, Pradeep sent a draft for Rs 8000/- saying that the pump
set could be delivered. In the meantime, Saman sold off the pump
set to Fahad. Saman returned the bank draft sent by Pradeep. A
dispute arose between the parties. Decide.
Ans: There is no contact between Saman and pradeep as he is refused
to accept the draft money because he has already sell the pump set to
Fahad.
19.
Aditya applied to the Greater Noida Authority for license to
build additional 2 storeys in a building which has at present one
storey. The permission was refused. Aditya had to dispose of the
single storey building but later permission was granted by Greater
Noida Authority to construct two more storeys.
Aditya claims
damages for the loss of excess money he could have got if such
permission was given earlier. Decide.
Ans- Yes, he can claim for the loss of excess money.
20.
Virender agrees to sell his Waganor to Arif two months after
the date of the contract. But after 50 days of the contract, Virender
sells the car to Hardeep. Thereupon, Arif sues Viender for the breach
of contract. Virender contends that he could still perform the

contract by repurchasing the car from Hardeep. Will Virender

succeed? Give full reasons for your answer
Ans- Yes, Virendre can repurchase the car fom hardeep if hardeep
agrees and Arif cannot sue virendra for breach of contract as it is not
done before the acceptance.