1. Principle: Time is the essence of the contract.

Facts: Ellora bakery is the oldest and most reputed cookie shop in Dehradun. It
requires large quantities of sugar for making cookies and cakes. They plan to sell
some new, unique and delicious items of sweets on the eve of Christmas, 2018.
Therefore it places an order to President Sugar Company, Rishikesh, for supply of
1000 tonnes of top quality sugar. But it does not receive the sugar till 25th December,
2018. The consignment of sugar does reach the sweet shops but on 28th December,
2018. Ellora bakery did not accept the order. Due to the delay in supply of sugar,
Ellora bakery incurs heavy losses in business. Decide.

A) Ellora bakery can claim damages from President Sugar Company, Rishikesh.
B) Ellora bakery cannot claim damages from President Sugar Company, Rishikesh
because the company did supply the sugar and performed the contract.
C) Ellora bakery cannot claim damages from President Sugar Company, Rishikesh
because the quantity of sugar to be supplied was huge and hence it was not possible to
deliver it on time.
D) Neither Ellora bakery nor President Sugar Company can claim damages from each
other because the contract was not clear.

Answer-A
The sugar was required for making sweets and cookies for the Christmas eve. In this
contract, time is the essence and thus, sugar should have been supplied on time.

2. Principle: For a breach of contract, compensation can be claimed for the personal
inconvenience suffered by a party by reason of breach, which naturally arose in the
usual course of things from such breach, or which the parties knew, when they made
the contact to be likely to result from the breach of the contract.

Facts: Mr. and Mrs. Gupta from Chandigarh planned a trip to Rajasthan. They hired a
ac car for 33 hours from mozocar (self drive car rental company) and paid the entire
amount in advance. When they picked the car from pick up spot, there were many
checks at the vendor outlet in the phone application and vendor made sure to go
through all those checks except if car ac’s was working or not. Now after they picked
the car and travelled about 10 kms, they noticed AC was not working. It was 44
degree Celsius. They had no choice but to travel with non ac mode.

Mr. Gupta filed a suit against the mozocar and claimed Rs. 25,000 as damages for
inconvenience suffered for travelling in non ac car and Rs. 50,000 in respect of Mrs.
Gupta’s catching a heat stroke that day. Decide.
 A) Mozocar is liable to pay both the amounts claimed because the loss was suffered
by Mr. and Mrs. Gupta for no fault of theirs.
B) Mozocar is not liable to pay anything.
C) Mozocar is liable to pay Rs. 25,000 only.
D) Mozocar is not liable as there was no breach of contract.

Answer: C
Mozocar is liable to pay only for the inconvenience suffered by Mr. and Mrs.
Gupta. Catching of heatstroke was not the natural incident that could flow from
non working of ac.

3. Principle: Agreements, the meaning of which is not certain, or capable of being made
certain, or illegal, are void.

Facts: Mr. Rameshwaram owned a big circus company. He needed five monkeys in
his circus company to make them perform tricks in circus and entertain their
spectators. As Shimla is home to over 1500 monkeys, it was very easy for Mr.
Chaturvedi to trap five monkeys from his house balcony. Mr. Chaturvedi, a resident
of Himachal Pradesh, agreed to sell Mr. Rameshwaram, five monkeys for Rs.
2,50,000. Mr. Chaturvedi knows it is illegal under Wildlife Protection Act. Decide.

A) It is not void contract because two parties agreed to make contract so it is valid.
B) It is void contract because it is illegal under Wildlife Protection Act.
C) It is not void because both the parties agreed to make contract even consideration
was also fixed.
D) It is void because it is impossible to catch five monkeys.

Answer- B
Self-explanatory.

4. Principle: Contract is an agreement freely entered into between the parties.

Facts: Mr. Anil was a dealer in fertilizers and pesticides. The Government of India
passed an order under the Essential Commodities Act, fixed the price of fertilizers,
and also the quantity which a farmer can buy from the dealer. Mr. Anil carried on his
business under this new order for some time, but he refused to pay sales tax on his
sale transaction on the ground that these were not the contracts freely entered into by
him. Decide.

A) Mr. Anil would not succeed, because the Government fixed the price for the
benefit of farmers.
B) Mr. Anil would not succeed because free consent between the parties was there
despite the restrictions on price and quantity.
 C) Mr. Anil would succeed because the Government under the new order forced him
to enter into the contract.
D) Mr. Anil would succeed because he is not bound to help farmers.

Answer: B

5. Principle:

Facts: Dhruv promised his girlfriend Palak that he would take her to the shopping and
movie in the Ambience Mall, Gurugram on their one month anniversary. Palak was
eagerly anticipating their D-Day and spent a lot on her dresses and make up.
However, on their D-Day, Dhruv failed to turn up and Palak felt heartbroken. She
filed a case against Dhruv for all the damages she incurred.

A) Palak will not succeed because Dhruv had only made her a promise, and was free
whether to follow it or not.
B) Palak will succeed because Dhruv was careless and negligent in their relationship.
C) Palak will succeed Dhruv had made her spend a lot and she was entitled to recover
the amount from Dhruv.
D) Palak will not succeed because the damage, suffered by her, was not a legal
injury.

Answer-D
The promise of Dhruv was made purely out of personal feelings and did not bind
the parties in any legal relationship. Moreover, the injury suffered by Palak was
not a legal injury. Social contracts cannot be enforced by law.

6. Principle: Consideration is the price for a promise. Mere act of promisee fulfilling his
legal duty does not entail consideration in the eyes of law.

Facts: Dr. Rohit is one of the well known cardiologists in India. He comes across a
patient who is the father of MLA of Rajasthan. The MLA promises to give Dr. Rohit a
blank cheque if his father comes back to his normal life. Dr. Rohit gets really excited
and to get the reward he operated his father with extra efforts. Operation was
successful. Dr. Rohit rushes to the MLA to collect his blank cheque along with his
fees. The MLA refuses to give the blank cheque but paid his fees. Decide.

A) Dr. Rohit will not succeed because he was fulfilling his legal duty and therefore
he does not entitle to any reward.
B) Dr. Rohit will succeed because MLA cannot refuse to give the reward as Dr. Rohit
has successfully operated the patient.
C) Dr. Rohit will succeed because he operated the patient with extra effort for the
reward
 D) Dr. Rohit will not succeed because doctors are morally bound to operate all their
patients with all the efforts.

Answer-A
Stick to the principle. Option D talks about morality but the principle is about
legal duty.

7.