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1. X advertises in newspaper that he would pay Rs 1, 00,000 to anyone who

traces his missing son. Y traced the missing boy and claimed the amount of
reward. State whether Y is entitled to receive the reward if A) he did not know
about the reward; B) If he knew about the reward.

2. X sold his business to Y but this fact was unknown to an old customer Z. Z
placed an order for certain goods to X by name. Y supplied the goods to Z. Is
this a valid contract?

3. X offered to sell two plots of land to Y at a certain price. Y accepted the offer
for one of the plots. Is this a valid contract?

4. Y offered to sell his house to X for Rs. 50,000. X accepted the offer by post.
On the next day X sent a telegram revoking the acceptance which reached Y
before the letter. Is the revocation of acceptance valid?

5. X supports Y’s Infant son without being asked to do so. Y promises to pay X
Rs 10,000 for doing so. Later, Y refuses to pay. Can X recover the promised
amount from y?

6. X owes Y Rs 10,000 but this debt is time –barred. In a birthday party of Z,

who is a friend of X and Y, X promises to pay this debt. Later X refuses to pay
Y. Can Y recover the promised amount from Y?

7. X, a client promises to pay Y, his advocate Rs 10,000 in addition to his fees if

he succeeds. X succeeds but refuses to pay Rs 10,000. Can Y recover from X?

8. X a poor Hindu Widow was in great need of money to establish her to

maintenance. She took a loan of Rs 1,500 bearing a rate of interest of 100%. Is
this transaction an unconscionable?

9. X offers to sell a painting to Y which X knows is a copy of well-known

master-piece. Y thinking it to be original decides to buy it at a very high price.
Is this a valid contract?

10. X made an offer to buy the shares of Y ltd. On 19 th Jan.1997 but the
allotment was made on 10th july1997. Is this bound by acceptance?

11. The captain of ship finds himself in a distant port without money. The
owner cannot be communicated with. The captain pledged the ship for obtaining
money. Can he o so?

12. A, a police officer purchased a property worth Rs.2 lakhs for Rs. 20,000
from B, an accused under his custody. But later on B wants to cancel the sale on
the ground of undue influence, can he do so?

13. Ram says in conversation with Sham that he will give Rs. 10,000 to a person
whosoever marries his daughter. Alok marries Ram’s daughter and files a suit
against Ram to recover Rs. 10,000. Will he succeed?

14. X offered to sell his car to Y for Rs. 95,000. Y accepts to purchase it for Rs.
94,500. X refused to sell his car for Rs. 94,500. Subsequently, Y agrees to
purchase the car for Rs. 95,000 but X refused to sell the car. Y sues X for the
specific performance of the contract. Will he succeed?

15. A promises to make a charity of Rs. 5,000 toward the repairs of a temple.
The trustee of the temple incurs some liability on the faith of A’s promise. A
does not pay. Can the trustee recover the promised amount?

16. A’s car breaks down on G.T. road. He asks B, a passing motorist, to tow the
car to the nearest garage. B tows the car and in return A promises to pay B at
the garage Rs. 200 as payment for his trouble. Is A bound by his promise?

17. A sells a painting to B saying that it is an original work of Picasso.

Unknown to both of them, the original painting was replaced by a duplicate one.
Is the contract valid?

18. A was suffering from some disease and was in great pain. A doctor agreed
to treat him provided he signed a promissory note for Rs. 10,000. A did so.
After recovery he refused to honour the note. Decide whether he can refuse?

19. A directs B to sell goods for him and agrees to give B five percent
commission on the price fetched by the goods. A afterwards by letter revokes
B’s authority. B after the letter is sent and before he receives it: sells the goods
for 100 rupees. Is B entitled to get the commission.

20. An agent was appointed to sell a house. He held an auction but failed to find
a purchaser. One of the persons attending the auction obtained from him the
address of the principal and purchased the house from him without the

intervention of the agent. Will the deal be treated as one that was result of the
agents’ efforts?

21. An agent was instructed to keep the goods in particular warehouse. He put
in another equally safe place, where the goods were lost in an accidental fire. W
ill the agent be held liable?

22. A captain of a ship was at a distance place without money. The owner
cannot be communicated can he (Captain) pledge the ship?

23. A offered to sell his factory to B stating that the factory produced 500 units
per day. B checked the record and found that the factory produced only 400
units a day. B accepted the offer. Later on he refused to purchase the factory on
the ground of fraud. Can he do so?

24. A stands as surety for the good conduct of B who is employed by a bank on
a monthly salary of Rs. 1600. Three months after when the financial position of
bank deteriorates, B agrees to accept the salary of Rs. 1500 per month. Two
months after, it is discovered that B has been misappropriating the money all
through. What is the liability of A?

25. A guarantees to B for the goods supplied to C on the condition that three
months credit will be given. B gives only 2 months’ credit. Is A discharged
from his liability?