LOVELY PROFESSIONAL UNIVERSITY HOME WORK 2

Name of faculty: Nancy Sahni Course No: MGT 106 Semester: 1st Max. Marks:10 Course Title: Mercantile Laws -1 Class: BBA Section: Q1110 Batch: 2011 Date of Allotment :8-09-11 Date of Test: 16-09-11

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N.A The objective of the Assignment is as follow: To all the students a) To imbibe the habit of analysis. b) Inculcate the habit of interpretation and decision making by doing practical analysis. CASE ANALYSIS on the topics: *Capacity to Contract * Free Consent * Void Agreements * Discharge of Contract 20 cases are given to all the students related to the above mentioned topics. They have to solve the questions at their place. Cases are mentioned in the Annexure I

Class Test will be taken on the basis of topics given.

Signature of COS-F Course coordinator

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Annexure-1 (Cases) 1. X, an agent refuse to handover the account books of the principal to the new agent appointed in his place unless the principal released him from all liabilities. The principal had to give a release deed as demanded. Is this release deed binding upon the principal. 2. The government of a state gives a threat of attachment against the property of Y for the recovery of a fine due from Ys son. Y paid the fine. What could Y do. 3. X, a poor Hindu widow, was in a great need of money to establish her right to maintenance. She took a loan of Rs. 1500 bearing a rate of interest of 100% per annum. Is this a valid contract? 4. X, by a threat to commit suicide induced Y, his wife and Z his son to execute a release deed in favor of his brother in respect of certain property. Are Y and Z bound by such a release deed? 5. X, an old illiterate man was induced to sign a bill of exchange by means of a false representation that it was mere a guarantee. Discuss the legal position. 6. X, executed a mortgage in favor of Y, a minor who has advanced the money. Is this mortgage valid? 7. Mohit, a minor entered into a contract with Mohan to supply food and clothes to his dependents. Y supplied the same. But Mohit refused to pay for it. Can Mohan recover anything? 8. Mahesh on attaining majority give a promissory note in the satisfaction of one executed by him for money borrowed when he was a minor. Is this promissory note valid? 9. Ramesh, a minor by misrepresenting himself to be of 19 years obtains a loan of Rs. 1000 from Suresh stating that the amount was badly needed by him to complete his education.

Suresh without any further enquiry lent the amount to Ramesh. Can Suresh recover the amount from Suresh? 10. A minor purchased on credit half a dozen woolen suit length pieces from a cloth merchant. Later on he refused to make the payment. Can the supplier recover the money from him? Give reasons. 11. A promises to marry B and in case of default agrees to pay her Rs. 50,000 as compensation. A subsequently ties the Knot with C and even refuses to pay B the agreed compensation. Decide. 12. A agrees to pay Rs.1000 to B if it rains, and B promises to pay a like amount to A, if it does not rain. Comment on the nature and enforceability of this agreement. 13. A agrees to sell to B all the wheat in his warehouse. Comment on the validity of the agreement. 14. A lends Rs. 500 to B to enable him purchase a Manipur State lottery ticket. B upon losing in the lottery refuses to repay As money. Can A recover his money from B? 15. A agreed to sell to B all the salt he manufactured and B agreed to buy such salt. A further agreed not to sell the salt to any third parties. Decide. 16. X agreed to supply certain goods to Y. The goods were present in the X factory. Due to lock-out in the factory the goods could not be procured. Can X be discharged on the grounds of lock-out?
17. X was due to perform a contract on 1 Nov.1987 but on 20th October he breaches the

contract .On 29th October the contract became illegal through a change in law. Y, the other party to the contract filed a suit for breach of contract on 30th October,1987. Discuss
18. X agrees to employ Y on 1st March. On 1st February he writes to Y that he needs not join

the service. Can he claim any compensation?

19. A owes B Rs 5,000 . A pays B and accepts , in satisfaction of the whole debt Rs 2000 paid at the time and place at which Rs 5,000 were payable. Discuss in relation to discharge of contract.
20. A agrees on 10th may to supply 10 kg of rice on 1st june at Rs 10/kg. on 20th may A writes

to B showing his inability to supply 10 kg of rice. Discuss the right of B .