Contract Act_Practical Problems_114

X,Y and Z are partners of software business jointly promise to pay Rs.30, 000 to A. Over a period of time Y became insolvent, but his assets are sufficient to pay one-forth of his debts. Z is compelled to pay the whole. Decide whether Z is required to pay whole amount himself to A in discharging joint promise?

Contract Act_Practical Problems_113

X and Y were two organizations trading in wheat of ‘Popular brand’ in Uttar Pradesh. X realizes that the wheat business is high yielding. To expand his business X offered Y a sum of Rupees ten lac on the condition that Y shall not sell ‘popular brand’ wheat in Uttar Pradesh. Accordingly Y stopped selling ‘popular brand’ wheat in Uttar Pradesh. X failed in making the promised payment to Y. Y filed a suit against X for the non-fulfillment of promise. Is the suit maintainable? Decide with reference to the provisions of the Indian Contract Act, 1872.

Contract Act_Practical Problems_112

Mr. Aman of Kolkata engaged Mr. Singh as his agent to buy a house in East Extension area. Mr. Singh bought a house for Rs.20 lakhs in the name of a nominee and then purchased it himself for Rs.24 lakhs. He then sold the same house to Mr. Aman for Rs.26 lakhs. Mr. Aman later comes to know the mischief of Mr. Singh and tries to recover the excess amount paid to Mr. Singh. Is he entitled to recover any amount from Mr. Singh? If so, how much? Explain.

Contract Act_Practical Problems_111

X buys from Y a painting which both believe to be the work of an old master and for which X pays a high price. The painting turns out to be only a modern copy .Discuss the validity of the contract?

Contract Act_Practical Problems_110

A entered into an agreement with S to deliver five dozen bottles of a particular brand of champagne to be manufactured in his factory. The champagne could not be manufactured because of strike by the workers and A failed to supply the said dozen of champagne to S. Decide whether A can be exempted from liability under the provisions of the Indian Contract Act, 1872.

Contract Act_Practical Problems_109

H, a captain in the army, was stationed in a house requisitioned by the Government. He accidently found a broach in a room occupied by him. He handed over the broach to the police, and they, failing in their attempts to discover the right owner delivered it to P, who was the owner of the house. P sold the jewel for Rs. 2,000. H sued for the recovery of the broach or its value on the ground that he was the finder. Will he succeed?

Contract Act_Practical Problems_108

A, a merchant who is in Calcutta, makes an offer on telephone to sell his house to his friend B, who is in Bombay. B, hearing the offer on telephone, gives his acceptance instantaneously. Where and when do you think the contract is concluded? What would happen had the parties negotiated by post?

Contract Act_Practical Problems_107

A agrees to sell 2,000 shares of a company to B at Rs. 170 per share. B was to take delivery of the shares on 15th Feburary, 2008. By that date, there was depression in the share market and the value of the share had gone down to Rs. 80 only. B did not take delivery of the shares on 15th February, 2008. A retained the shares and ultimately sold them in September, 2008 at Rs. 170 per share. A files a suit against B for the recovery of Rs. 1,80,000 as damages. B contends that as A did not suffer any losses, he was not entitled to damages as claimed by the plaintiff. Decide the case.

Contract Act_Practical Problems_107

A agrees to sing at B’s theatre at the night on January 1, 2008 but falls ill and is unable to perform on the agreed date. B sues A for breach of contract and claim damages. Can A take plea of frustration ?

Contract Act_Practical Problems_106

A agreed to supply 500 picture tubes of color television at Rs. 3,000 per piece to Bon 1-1-2008. The goods were to be delivered within one month. On 15-1-2008, the Government announces enhancement in the excise duty leviable on these picture tubes and in consequence the cost price rose from Rs. 2,700 to Rs. 4,000 per tube. A declines to supply the goods. Discuss Can A take plea of frustration ?

Contract Act_Practical Problems_105

M’s son is bedridden and he needs money badly for his treatment. He agrees to dispose of his shop worth Rs. 5 lakh for Rs. One lakh only to N. After one month of the agreement, M applies for cancellation of the agreement on the ground of undue influence’. Will he succeed?

Contract Act_Practical Problems_104

A filed a suit against his brother B for possession of a half-share in the property which was alleged to be ancestral one. The suit was dismissed. Later on, to secure reconciliation and family peace, B executed a registered deed agreeing to transfer the half-share in the said property to A. A filed a suit for possession on the basis of this instrument. B raised the plea that the agreement was without consideration and hence void. Decide.

Contract Act_Practical Problems_103

B, a young wrestler of about 17½ years, looking much older than his age, procured a loan of Rs. 45,000 on interest at 12% per annum from M, a moneylender and executed a promissory note in his favour. B represented himself to be 21 years old at the time of getting the said loan. B invested Rs. 40,000 with a limited company on interest at 18% per annum and lost the remaining amount of Rs. 5,000 in gambling. However, the said company went into the liquidation and B’s entire investment was lost. When M filed a suit against B for recovery of the aforesaid amount, the latter pleaded ‘minority’. How will you adjudicate the matter?

Contract Act_Practical Problems_102

A writes a letter to B offering to buy his Maruti 800 car for Rs. 1,75,000 saying therein “unless I hear from you, I shall take the car to be mine for Rs. 1,75,000”. B gives no reply but sells the car to C. A. seeks your advice whether he can file a suit against B for damages on account of breach of contract. Advise A.

Contract Act_Practical Problems_101

Novelty Computers (P) Ltd. Kamala Nagar, New Delhi exhibited in their showroom a computer with latest configuration and multit-media hardware and attached to it a price tag of Rs. 27,999 (inclusive of all taxes). X visits the showroom of the company and tenders a cash amount of Rs. 27,999 for the purchase of the said computers. The company, however, refuses to sell the computer saying that it has only one piece and that too has already been sold to someone else. Discuss whether X can compel the company to sell him the computer.

Contract Act_Practical Problems_100

A, who was a tailor, delivered a sewing machine and some cloth to B Transport Co. to be sent to a place where he expected to carry on his business at high profit by reason of a forthcoming festival. Through the fault of B Transport Co. goods were delayed and delivered much after the conclusion of the festival. A had not given any notice to B. Transport Co. of his special purpose. A claims as damages the expenses of traveling upto the place of festival and of staying there and loss of profits which he would have earned. Discuss the principles applicable for measure of damages in this case.

Contract Act_Practical Problems_99

Because of disagreements, quarrels and disputes between an old father and his modern young son, father by written agreement duly attested by Notary promises to pay Rs. 15000/- p.m. to his son for living separately. Do the following facts create contractual obligations ?

Contract Act_Practical Problems_98

A is the owner of a farm house in Delhi known as Bumper Farms. B being interested

in purchasing the same sent a telegram to A, “Will you sell me Bumper Farms? Telegraph the lowest case price.” A in reply telegraphed. “Lowest price for Bumper Farms Rs. 25 crores.” B sent another telegram to A saying, I agree to buy Bumper Farms for Rs. 25 crores.” Whether exchange of telegraphs create the contract ? Why ?

Contract Act_Practical Problems_97

A, the bailor, pledges cinema projector and other accessories with Cine Association Co-operative Bank Limited, the bailee, for loan. A requests the bank to allow the pledged goods to remain in his possession and promises to hold the same in trust for the bailee and also further promises to handover the possession of the same to the bank whenever demanded. Examining the provisions of Indian Contract Act, 1872 decide, whether a valid contract of pledge has been made between A, the bailor and Bank, the bailee ?

Where a mercantile agent is, with the consent of the owner, in possession of goods or the documents of title to goods, any pledge made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorized by the owner of the goods to make the same; provided that the pawnee acts acts in good faith and has not at the time of the pledge notice that the pawnor has no authority to pledge. As per the provisions above it is clearly evident that contract made between A & Bank is valid.

Practical Problems_Sales of Goods Act_7

‘A’ raised a loan by pledging a Railway Receipt of goods in transit, as security, with a money lender ‘X’. ‘A’ got the Railway Receipt back from ‘X’ in order to get the goods released from the Railways. Instead, ‘A’ pledged the same Railway Receipt with another lender ‘Y’, to raise another loan. In a suit for recovery filed by ‘X’, ‘Y’ pleads estoppels against ‘X’ for not endorsing the Receipt “Under Lien Pledge” and thus, representing that the said receipt is free from lien, which facilitated ‘A’ to raise a second loan against the receipt. Decide, if estoppel is rightly invoked by ‘Y’ against ‘X’?