Law of Contract Questions

CONTRACT I
B.A.LL.B. (Hons)/BBA LL.B. (Hons)/ LL.B. (Hons)
ASSIGNMENT 1
1. Advika called up Le Marche at the Golf Course Road to deliver a packet

of cornflakes, dried berries, gluten free bread, peanut butter and
skimmed milk. This was her weekly order along with a packet of
strawberries. Kiran, the Manager at the Store assuming that Advika has
forgotten to order strawberries also sends the same along with other
items ordered by her. Advika accepts a pack strawberries priced at Rs.
80/- but refuses to pay for it. Is Advika bound to pay?
2. Amandeep sold his pen to Mandeep for Rs. 500. Mandeep gets to know
from a store that the actual cost of the pen is Rs. 450 Can Mandeep
repudiate the contract and recover Rs. 500?
3. Manjot promises to get a diamond bracelet for his wife if she sings at the
party. His wife sings on his birthday party but Manjot did not bring her a
bracelet. Can his wife bring an action against him to enforce the
agreement?
4. Mr. Abhijit Adhikari, an IAS Officer posted in Jhansi had gone for a
vacation to Koh Samui with his wife. His wife was unwell on the vacation
and was advised by the Doctor in Koh Samui to not travel. Abhijit had to
join work in Jhansi so he decided to return back. He told his wife not to
worry about the expenses as he would send her money to take care of the
same. Abhijit after going back to India did not send her any money. Can
his wife sue him for breach of contract?
Ans: Mr. Abhijit’s wife cannot sue him for the following reasons:
1. This is a mere domestic agreement between Mr. Abhijit and his wife,
not enforceable by law
2. There is no intention on the part of both the parties to create a legal
relationship
Hence, there is no contract between the parties as per Section 2(h) of the
Indian Contract Act, 1872. So, Mrs. Adhikari cannot sue her husband for
the breach of contract.
The facts and decision in Balfour v. Balfour was similar.
5. Company A entered into an agreement with Company B. One of the
clauses of the agreement read: This arrangement is not entered into as a
formal or legal agreement and shall not be subject to legal jurisdiction in
the law courts. Discuss the validity of the agreement.
6. Sumit made an offer of reward of Rs. 1,00,000/- to any person who
would swim 500 mts in the local lake on 25 January. Rajveer, an avid
photographer, went to the lake on January 25 with his friends and was
thrown overboard the boat while taking a lake landscape. He had to
swim to the shore which was about 620 mts away. After coming to the
shore, he saw the poster declaring the reward. Accordingly Rajveer went
to Sumit asking for the reward. Can Rajveer successfully claim this
reward?
7. Sumit challenged any person who spends 5 minutes submerged under
water in the local lake on 25 January and offered a reward of Rs.
1,00,000/- to anyone who would successfully do so. Rajveer went to the
lake on January 25 to answer this challenge. There were several other
people boating in the lake that day. Suddenly a small girl of 5 years was
thrown overboard from a passing by boat and Rajveer immediately
jumped into the lake to save the girl. Rajveer spent 7 minutes under
water to look for the girl but eventually managed to save her.
Subsequently he sought his reward from Sumit who refused. Can Rajveer
successfully recover the amount of reward?
8. Virat Tendulkar was an avid cricket fan and decided to form a cricket
team. Raj Kundra was a businessman with a huge sports equipment
business. RK approached VT and proposed to sponsor his cricket team
provided the team scored in excess of 250 runs in every 50 over match.
This agreement contained a clause that said, “This is a formal
arrangement not subject to legal jurisdiction in the law courts”. After a
match, where team scored 190 runs, RK withdrew his sponsorship. VT
sued RK in court. What should become of this case?
9. Crappy Finance Company (CFC) gave a loan of Rs. 50 Crores to All Is
Well Inc. (AIWI). AIWI was a subsidiary of You Are Well Inc. (YAWI). When
CFC got to know this, they wrote a letter asking YAWI to promise that the
loan to AIWI was safe. YAWI wrote a letter back to CFC stating that it
was a policy of YAWI to ensure that their subsidiaries function in a credit
worthy manner. AIWI failed to pay the loan back. CFC wants to recover
the loan amount from YAWI. Can they succeed?
10. Pyare Lal use to run a tea shop outside Artemis Hospital. One day
Hospital Management contacted him and asked whether he’d like to open
up a canteen inside the hospital. Pyare insisted on a written contract and
accordingly one was drawn with some blank spaces where Pyare was to
put his name, sign the document and return the same to the
Management. Upon return of the document the Chief Manager took the
document and put it in his drawer desk, however forgot to sign it himself.
Pyare opened up the canteen inside the hospital. Subsequently a dispute
arose and management refused to be bound by his contract as hospital
management never signed it. Is the contract binding on the parties?

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CONTRACT I

B.A.LL.B. (Hons)/BBA LL.B. (Hons)/ LL.B. (Hons)

1. Advika called up Le Marche at the Golf Course Road to deliver a packet

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