NI Act_Practicle Problems_15

L had two promissory notes of Rs.500 each issued by S Banking Corporation. He placed them in the pocket of his coat and having forgotten, he washed, dried and starched the coat. He remembered of the notes while he was ironing his coat. He searched for them in the pocket of his coat and could find them in spoiled condition. The identity of the notes was rested to a certain extent except its numbers. Can he recover the money from the bank.

NI Act_Practicle Problems_14

State with reasons whether there is any 'material alteration' in following cases and whether to invalidates the instrument.

a. D, in possession of an inchoate instrument where the amount has not been written on the instrument, writes himself the amount

b. K, in possession of an uncrossed cheque received from A writes 'Payee's Account Only' on the face of instrument.

NI Act_Practicle Problems_13

When is an alteration made in negotiable instrument called ‘Material Alteration’? State with reasons whether there is any ‘Material Alteration’ in the following cases:

(i) the holder of a bill of exchange alters the date of the instrument to accelerate or prepone the time of payment;

(ii) the drawer of a bill exchange forgets to write the words, ‘or order’ on the bill. Subsequently, the holder of the bill of exchange inserts these words on the bill.

NI Act_Practicle Problems_12

Do the following alterations of a negotiable instrument render the instrument void?

(a) The holder of a bill alters the date of the instrument to accelerate or postpone the time of payment.

(b) The drawer of a negotiable instrument draws a bill but forgets to write the words 'or order'. Subsequently, the holder of the instrument inserts these words.

(c) A bill payable three months after date is altered into a bill payable three months after sight.

(d) A bill was dated 1992 instead of 1993 and' subsequently the agent of the drawer corrected the mistake.A bill is accepted payable at the Union Bank, and the holder, without the consent of the acceptor, scores out the name of the Union Bank and inserts that of the Syndicate Bank.

Unsolved_Practical Problems_15

X who is going out of town delivers a horse to Y for proper care. Is it an example of Bailment. Justify your answer.

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.