1. Principle: (1) A breach of contract exists when a party fails to fulfill his obligations under a contract.

(2) Time is an essence of a contract where a delayed deli ery defeats purpose of the contract. !acts: A agreed to sell to " twenty tons of rice. A and " had a commercial relationship for a long time and A #new " used to sell rice to retailers. $i en the perishable nature of rice% it is imperati e that rice is sold as &uic#ly as possible. A was ha ing problems with his suppliers% and was late in dispatching the shipment. As a result% the shipments which were supposed to arri e e ery two wee#s were delayed and the shipment came after 1' days. " cancelled the contract and refused to ta#e deli ery. A claimed that time was ne er an essence as it was not mentioned in the contract. a. " may a oid the contract. (ere time was as essence by implication as A #new " needed prompt deli ery. b. " may not a oid the contract% as the contract ne er pro ided for time as an essence. c. " may not a oid the contract% as " could ha e explained the delay to his customers. d. " may a oid the contract. )elayed deli ery is unacceptable. 2.An offer may be made to the world at large and accepted by anyone. !acts: *obert% in a newspaper% ad ertisers for the ser ices of a carpenter and set out the terms and conditions. +eff%a carpenter meets *obert and contracts to do the wor#. Another carpenter% by name ,att also expresses his willingness to do the wor#. *obert says he has already gi en the deal to +eff and cannot contract with ,att. ,att howe er says that he has already accepted *obert-s offer and he must be gi en the wor#. )oes a contract exist between *obert and ,att. a. A contract exists. /hen an offer is made to the world at large% anyone% including ,att% may accept it. b. A contract exists. ,att has accepted *obert-s offer. c. 0o contract exists. ,att has accepted *obert-s offer and after that *obert-s offer has come to an end. d. 0o contract exists. *obert had no intent to create legal obligations with e eryone. 1. Principle: Acceptance must be communicated in the manner specified or in a reasonable manner and within the specified time. !acts:

2 sends a contract for the sale of goods to 3. 4nder the contract% 3 was re&uired to communicate his acceptance 5063 by email by a specified date. 3 howe er% sends his acceptance by sending a letter by post. 2 does not get the acceptance by the date he set for the email and sells the goods to a third party. 3-s letter reaches the next day and 3 demands that the goods be sold to him. a. A contract exists. 3 has communicated acceptance on the specified date by a reasonable means. 2 should ha e waited for a reasonable period of time. b. 0o contract exists% as the acceptance was sent in a different mode% which was recei ed after the stipulated date c. A contract exists. Post is an accepted mode of communication. The mode of communication cannot be specified. d. 0one of the abo e.

7. Principle: Acceptance is complete as against the acceptor when he puts his acceptance in course of communication. 8n the case of direct communication% acceptance is complete when the acceptance comes to the #nowledge of the offeror. !acts: A and " were negotiating a contract across a board room table. As A communicated his acceptance to "% an aircraft flying o erhead drowned out A-s oice. " did not hear A-s acceptance% but "-s secretary% sitting next to A heard it. " as#ed A to repeat it. A% by this time% reconsidered his decision and said that he did not accept the contractual terms. "-s secretary stood up and said that A had communicated his acceptance and A must be bound by it. a. 0o contract exists. The acceptance must come to the #nowledge of the offeror in direct communication. b. A contract exists. The acceptor has communicated the acceptance. c. 0o contract exists. The acceptor #new that the offeror had not recei ed acceptance and can withdraw it. d. A contract exists. "-s secretary heard of the acceptance. 9. Principle: An offer is effecti e only when it is communicated to the offeree. )oing anything in ignorance of the offer is cannot be treated as acceptance. !acts: A was loo#ing for a gardener and put an ad ertisement for a gardener who was to be paid : 9;. (e waited a few days and then put another ad ertisement% this time offering : 1;;. After this% 2 turned up and finished the wor#. A paid him : 9;. 2 left A-s house and after that he came across the ad ertisement offering : 1;; for the wor#. 2 came bac# and demanded his : 1;; from A. a. A need not pay : 1;;. 2 was stupid enough to lea e with : 9;. b. A need not pay : 1;;. The wor# does not deser e : 1;;.

c. A need not pay : 1;;. 2 accepted the offer for : 9; and was unaware of the offer of : 1;;. d. A must pay : 1;;. (e had changed the offer to : 1;; so irrespecti e of what 2 belie es% he is bound to pay : 1;;. <. Principle: !raud exists when a party #nowingly and willfully ma#es an acti e concealment of a fact to induce someone to enter into an agreement. A contract may be set aside when the fraud exists as to a ital fact. !acts: 2 goes to buy health insurance. 5ne &uestion in the policy was whether 2 suffers from any pre= existing illness. 2 #nows that if he admits he has a heart problem his premium will be higher so decides to write >no?. 6ater he suffers a heart= attac#. The insurance company comes to disco er that at the time the policy was made 2 #new about his pre existing condition and chose to conceal it. a. 0o contract exists. There is clear acti e concealment on part of 2. b. A contract exists. There is no fraud as to a ital fact. c. A contract exists. A honestly belie ed that he had no illness. d. 0o contract exists. A cheated the company. @. Principle: A contract with an unlawful obAect is oid. !acts: A goes to " and agrees to not file charges for theft if " pays him : 1;;;. An agreement is made but after that " refuses to pay. a. 0o contract exists% as the agreement is not in writing. b. A contract exists. A contract may be made prior to criminal proceedings. c. A contract exists. " belie ed A. d. 0o contract exists. A contract cannot defeat a criminal proceeding. '. Principle: An agreement in restraint of trade is oid. (owe er% if restraint is the ancillary effect of a positi e co enant% it is alid. !acts: Bherry=Bola entered into an agreement with 6ola-s Bompany where 6ola-s Bompany was supposed to manufacture only Bherry=Bola. 6ola-s Bompany started manufacturing Bampa=Bola% the competitor of Bherry=Bola alongside. Bherry=Bola sued 6ola-s Bompany. 6ola-s Bompany pleaded restraint of trade. a. A contract exists. The restraint was the effect of the positi e co enant to only manufacture Bherry=Bola. b. 0o contract exists. This is restraint of trade. c. 0o contract exists. This is explicit restraint of trade.

d. A contract exists. 8t was freely entered into. C. Principle: An agreement absolutely restraining legal proceedings is oid. !acts: 2 made an agreement with 3 where 2 agreed not to sue 3 for any breach of contract. The contract was for sale of goods and 3 failed his obligations under the contract by deli ering damaged goods. 2 sued 3. a. 2 cannot sue 3. 2 agreed to the terms. b. 2 can sue 3. This is an agreement restraining legal proceedings. c. 2 can sue 3. *ight to sue is inherent. d. 2 cannot sue 3. A has wai ed the right to sue. 1;. Principle: A stranger to the contract cannot sue for the enforcement of the contract. !acts: ,ary was to be married to the son of $erald and in consideration for the intended marriage $erald entered into a written agreement with ,ary-s father where each would pay ,ary a sum of money. $erald failed to pay and ,ary sued her executors of the agreement for enforcing it. A. ,ary cannot sue to get the money as she is stranger to the contract. ". ,ary can sue for the enforcement of the contract as it was intended for her benefit. B. ,ary can sue for the enforcement of the contract as it is her right to get the money promised. ). ,ary cannot sue as she did not intend for legal conse&uences

11. 6egal Principle= (earsay e idence is no e idence. !actual Dituation= *a i and *ahul share a room in a youth hostel. 5ne day% *ahul lea es the room and sees that his three friends Eunal% Abhishe# and "unty are &uarrelling outside the youth hostel. Duddenly% Eunal stabs Abhishe# with a #nife. *ahul is horrified and returns to his room and tells about the incident to *a i. After some time% the police reach the hostel and as#s &uestions from students. The police as# &uestions to *a i also. *a i tells the police that Eunal stabbed Abhishe#.

)ecision= a. *a i has told the truth to the police and Eunal can be punished. b. *a i-s statement has no alue in the eyes of law. c. *a i should ha e refused to tell anything to the police. d. 0one of the abo e.

12. 6egal Principle= A bailment is the deli ery of goods by one person to another for some purpose% upon a contract that they shall% once the purpose is fulfilled be returned. !urther. The person to whom the goods are deli ered is obliged to ta#e as much care of the goods as a man of ordinary prudence would % under similar circumstances ta#e of his own goods. !actual Dituation= ,rs. Dita ga e a gold bar to ,FD Ga eri 6all H Bo. = +ewellers to ma#e a nec#lace of a certain pattern. The Aewellers #ept the gold bar in an almirah. 4nfortunately% the shop was burgled and ,rs. Dita-s gold bar was also stolen. The Aewellers had not employed a watchman to guard their aluables. Ad ise ,rs. Dita on proposed legal action. )ecision= a. The Aewellers are not liable to ma#e compensation because they too# reasonable care in respect of the goods entrusted to them and the burglary could not ha e been a oided under any circumstances. b. The Aewellers are liable to compensate ,rs Dita because they failed to ta#e as much care as a man of ordinary prudence ought to ha e ta#en in respect of goods entrusted. c. The Aewellers are not liable to compensate ,rs. Dita because they too# as much care as they too# in respect of their own goods which is established by the fact that their own goods were also stolen d. "oth a and c 11. 6egal Principle= !or purpose of exercising right of pri ate defence % physical or mental capacity of attac#er is no bar. !actual Dituation= *ahul in his madness attempts to #ill Iarun. Iarun in order to sa e himself hits *ahul with iron rod. )ecision= a. Iarun has right of pri ate defence though *ahul is mad. b. "oth *ahul and Iarun are guilty of no offence. c. Iarun has no right of pri ate defence since *ahul is mad. d. Iarun guilty of inflicting grie ous inAury on *ahul.

17. 6egal Principle= J erybody is under a legal obligation to ta#e reasonable care to a oid act or omission which he can foresee would inAure his neighbour. The neighbour for this purpose is any person whom he should ha e in his mind as li#ely to be affected by his act. !actual Dituation= Erishnan% while dri ing a car at a high speed in a crowded road% #noc#ed down a cyclist. The cyclist died on the spot with a lot of blood spilling around. 6a#shmi% a pregnant woman passing by suffered from a ner ous shoc# leading to abortion. 6a#shmi filed a suit against Erishnan claiming damages. )ecision= a. Erishnan will be liable% because he owed a duty of reasonable care to e erybody on the road including 6a#shmi. b. Erishnan will not be liable% because he could not ha e foreseen 6a#shmi suffering from ner ous shoc# as a result of his act. c. Erishnan will be liable to 6a#shmi because he failed to dri e carefully. d. 0one of the abo e. 19. 6egal Principle= )amages cannot be claimed against a ris# to which content has been gi en. The principle does not apply to rescue cases. !actual Dituation= 2 and 3 bought tic#ets to ha e a ringside iew of a football match. )uring the course of the game a hard #ic# from one of players caused the ball to hit 2 on his nose% causing bleeding and nausea. After half time the organiKers allowed entry of more spectators than the seating capacity of the stadium. 8n the resulting stampede * and D who were watching the match since the beginning got inAured. !i e minutes before close of play% a part of the stadium roof bro#e loose. 3 rushed to sa e children sitting beneath the roof and in the process inAured himself. )ecision= a. 2 shall not be able to reco er as he consented to the ris# of the flying ball. b. 2 shall be able to reco er as the organiKers failed to ta#e precautions against the flying ball. c. 2 shall be able to reco er as he consented to watch the game not to be inAured in it. d. 2 shall not be able to reco er as by purchasing a ringside seat in football game he consented to all the attendant ris#s of such watching. 1<. 6egal Principle= Any person may use reasonable force in order to protect his property or person. (owe er% the force employed must be proportionate to the apprehended danger. !actual Dituation= *a i was wal#ing on a lonely road. ,aniyan came with a #nife and said to

*a i% >3our life or your purse?. *a i pulled out his re ol er. 5n seeing it% ,aniyan ran. *a i shot ,anyan in his legs. )ecision= a. *a i will not be punished as there was danger to this property b. *a i will not be punished as the force he use was proportionate to the apprehended inAury. c. *a i will be punished as the force employed was disproportionate to the apprehended inAury. d. As ,aniyan ran to escape there was no longer a threat to *a i-s property. Do *a i will be punished. 1@. 6egal Principle= 0obody shall ma#e use of his property in such a way as to cause damage to others. Any such use constitutes pri ate nuisance% a wrongful act under 6aw of Torts. *am owned a house% adAacent to a couple of houses% owned by *ahul. *ahul was leasing out these houses whereas *am was li ing in his house. /hen *am was transferred to another place% he leased out his house to a person suffering from A8)D. !earing the spread of A8)D% the tenants mo ed out of *ahul-s houses. *ahul re&uested *am to e ict the A8)D patient and he offered to fix a suitable tenant for *am-s house. "ut *am refused by arguing that A8)D would not spread as feared by *ahul-s tenants. *ahul filed a suit against *am.

a) *ahul will win% because *am #nowingly caused him% financial damage. b) *ahul will not win% because *am could lease his house to whome er he wanted c) *ahul will not win% because *am has not done any act which in any manner is causing damage to *ahul. 18. 6egal Principle= 5ne has to compensate other for the inAury caused due to his wrongful act. The liability to compensate is reduced to the extent the latter has contributed to the inAury through his own negligence. This is the underlying principle of contributory negligence. Eannan owns a farm at a distance of 1;; metres from the railway trac#. (e stored in his land the stac#s of dried up straw after the culti ation as in normal in farming. 5ne day when the train was passing through the trac#% the dri er negligently operating the locomoti e by allowing it to emit large &uantities of spar#. The high wind% normal in open fields% carried the spar#s to the stac#s stored by Eannan and the stac#s caught fire thereby causing extensi e damage. Eannan filed a suit against the *ailways claiming damages. The *ailways while ac#nowledging liability alleged contributory negligence on the part of Eannan. a) Eannan was not liable since his use of land was lawful. b) Eannan-s farm being at a reasonable distance from the railway trac#% he cannot be held responsible for the high winds.

c) Eannan should ha e anticipated the possibility and hence he is liable for contributory negligence. 19. 6egal Principle= A person owes a duty of care to e erybody who is li#ely to be affected by his act. *anga owns a condiment store selling both branded and non branded ba#ery products. A customer bought a pac# of buns produced by ,odern "read !actory. A bun in the pac# contained a stone and while eating that bun% the stone hurt the customer-s tooth. (e filed a suit against *anga. a) *anga owed a duty of care to all his regular customers% and hence he is liable. b) *anga did not owe a duty of care on behalf of ,odern "reads and hence is not liable. c) 8t is for the customer to ta#e care of himself in whate er he is doing. Problem 1 (For Questions 1-4) *ules A. The act of using threats to force another person to enter into a contract is called coercion. ". The act of using influence on another and ta#ing undue ad antage of that person is called undue influence. B. 8n order to pro e coercion% the existence of the use of threat% in any form and manner% is necessary. 8f coercion is pro ed% the person who has been so threatened can refuse to abide by the contract. ). 8n order to pro e undue=influence% there has to be a pre=existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. 8f it is pro en that there has been undue influence% the party who has been so influenced need not enforce the contract or perform his obligations under the contract. !acts Aadil and "aalu are best friends. Aadil is the son of multi millionaire business person% Bhulbul who owns ,aa#han Pharmaceuticals. "aalu is the son of a ban# employee% )hanraA. 5ne day% Aadil is abducted from his office by "aalu. Bhulbul recei es a phone call from )hanraA telling him that if he does not ma#e "aalu the BJ5 of ,aa#han Pharmaceuticals% Aadil will be #illed. Bhulbul reluctantly agrees to ma#e the "aalu the BJ5. Dubse&uently Bhulbul and "aalu sign an employment contract. (owe er as soon as Aadil is released and safely returns home% Bhulbul tells "aalu that he shall not enforce the employment contract. "aalu and )hanraA are not sure as to what is to be done next. 1. As per the rules and the gi en facts% who coerces whom: (a) Aadil coerces "aalu (b) "aalu coerces Bhulbul (c) )hanraA coerces Bhulbul (d) 0one of the abo e.

2. 8n the abo e fact situation: (a) There is undue influence exercised by )hanraA on "aalu. (b) There is undue influence exercised by Aadil on Bhulbul (c) There is no undue influence (d) 0one of the abo e. 1. Bhulbul is: (a) +ustified in refusing to enforce the employment contract as Bhulbul was coerced by )hanraA. (b) +ustified in refusing to enforce the employment contract as "aalu was complicit in the coerci e act (c) 0o Austified in refusing to enforce the employment contract as "aalu was an innocent person and has not coerced Bhulbul. (d) "oth (a) and (b). 7. "aalu will succeed in getting the employment contract enforced if he can show that (a) (e is the best friend of Aadil (b) 8t was his father% and not he% who used coercion against Bhulbul. (c) Bhulbul has promised his father to employ him. (d) 0one of the abo e. Problem 2 (For questions 5 to 8)

*ule A: /hen a Dtate underta#es any measure% the effects of the measure must be the same for all those who are affected by it. !acts 1;; mountaineers embar#ed on an extremely ris#y climbing expedition in 6eh. /eather conditions worsened fi e days into the expedition and the mountaineers are trapped under hea y show. The go ernment recei ed information of this tragedy only two wee#s after the unfortunate incident and has only 27 hours in which tosend rescue helicopters. /eather stations across the world confirm that this particular region of 6eh will experience bliKKards of unprecedented intensity for almost two wee#s after this 27 hour window rendering any helicopter acti ity in the region impossible and certain death for anyone left behind. The go ernment has only fi e rescue helicopters with a maximum capacity of 9; people (excluding pilots and re&uisite soldiers) and these helicopters can fly only once in 27 hours to such altitudes. As the Air !orce gets ready to send the helicopters% an emergency hearing is con ened in the Dupreme Bourt to challenge this measure as this would lea e 9; people to die.

9. 8f you were the Audge re&uired to apply *ule A% you would decide that: (a) As many li es must be sa ed as possible. (b) 8f e eryone cannot be rescued% then e eryone must be left behind. (c) A measure cannot be upheld at the cost of 9; li es. (d) 8t must be left to those who are trapped to decide if they want half amongst them to be sa ed and lea e the rest to die. *ule ": /hen a Dtate underta#es any measure% e eryone affected must ha e an e&ual them to be benefit from it. <. As the go ernment prepares to send in rescue helicopters% which option would be acceptable only under *ule " and not *ule A: (a) A lottery to choose the 9; sur i ors excluding those diagnosed with terminal illnesses from participating in the lottery. (b) A lottery to decide the 9; sur i ors with single parents of children below fi e years of age automatically &ualifying to be rescued. (c) The 9; youngest people should be rescued. (d) 0one of the abo e. @. Bhoosing 9; sur i ors exclusi ely by a lottery would be (a) Permissible under *ules A and " (b) 8mpermissible under *ule A and " (c) Permissible only under *ule " (d) Permissible only under *ule A. '. 8f the go ernment decides that it will either sa e e eryone or sa e none% it would be: (a) Permissible under rules A and " (b) 8mpermissible under *ules A and " (c) Permissible only under *ule A (d) Permissible only under *ule ".