Contract Act_Practical Problems_54

An illiterate woman executes a sale deed on the assumption that it was a power of attorney and that the deed after it was executed, was not read over to the lady. Advise the lady.

In the present case, illiterate woman claims to have signed a power of attorney whereas she has actually signed a sale deed. Thus, there is a mistake as to the very nature of the contract itself. In such cases. Courts have held that inspite of the mistake being unilateral, contract shall be void because consent is a function of mind and, therefore, if a person has mentally not consented to something, he has actually not consented at all. So there is no consent to the sale deed and thus no contract at all. Thus, lady may be advised to proceed under mistake and the sale deed shall be set aside. Similar facts appeared before the Calcutta High Court in the case of Bala Devi v. Shantirnoy.

Contract Act_Practical Problems_53

A enters into a contract with B for the sale of goods to be delivered at a future date. Is it a wagering agreement? Give reasons.

The contract in question is not a wagering agreement. It only involves future consideration and is a valid, enforceable, common business transaction. A transaction, to be wagering, must make the performance of the transaction dependent upon the happening or non-happening of an uncertain future event. The performance in the given case being not so dependent, transaction is not wagering.