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Unitedworld School Of Business

NAME- NAVEEN SULODIA SEC- A

ROLL NO- 20 ENROLLMENT NO- PG19068
SUBJECT- LAW

Question1.
Who is a Consumer? Discuss the various rights of consumer
according to Consumer Protection Act?
Answer-
A consumer is a person or a group who intends to order, orders, or uses purchased
goods, products, or services primarily for personal, social, family, household and
similar needs, not directly related to entrepreneurial or business activities.
Rights of Consumer according to Consumer Protection Act.
1. Right to Safety:
According to this right the consumers have the right to be protected against
the marketing of goods and services which are hazardous to life and property,
this right is important for safe and secure life. This right includes concern for
consumer’s long term interest as well as for their present requirement.
Sometimes the manufacturing defects in pressure cookers, gas cylinders and
other electrical appliances may cause loss to life, health and property of
customers. This right to safety protects the consumer from sale of such
hazardous goods or services.
2. Right to Information:
According to this right the consumer has the right to get information about the
quality, quantity, purity, standard and price of goods or service so as to
protect himself against the abusive and unfair practices. The producer must
supply all the relevant information at a suitable place.
3. Right to Choice:
According to this right every consumer has the right to choose the goods or
services of his or her likings. The right to choose means an assurance of
availability, ability and access to a variety of products and services at
competitive price and competitive price means just or fair price.The producer
or supplier or retailer should not force the customer to buy a particular brand
only. Consumer should be free to choose the most suitable product from his
point of view.
4. Right to be Heard or Right to Representation:
According to this right the consumer has the right to represent him or to be
heard or right to advocate his interest. In case a consumer has been exploited
or has any complaint against the product or service then he has the right to be
heard and be assured that his/her interest would receive due
consideration.This right includes the right to representation in the government
and in other policy making bodies. Under this right the companies must have
complaint cells to attend the complaints of customers.
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5. Right to Seek Redressal:

According to this right the consumer has the right to get compensation or seek
redressal against unfair trade practices or any other exploitation. This right
assures justice to consumer against exploitation.The right to redressal
includes compensation in the form of money or replacement of goods or
repair of defect in the goods as per the satisfaction of consumer. Various
redressal forums are set up by the government at national level and state
level.
6. Right to Consumer Education:
According to this right it is the right of consumer to acquire the knowledge and
skills to be informed to customers. It is easier for literate consumers to know
their rights and take actions but this right assures that illiterate consumer can
seek information about the existing acts and agencies are set up for their
protection.The government of India has included consumer education in the
school curriculum and in various university courses. Government is also
making use of media to make the consumers aware of their rights and make
wise use of their money.

Question 2
An agreement without Consideration is void? Discuss the rule
with exceptions?
Answer
Yes an agreement without consideration is void.
Indian Contract Act 1872 in section 2(e)
says that every promise and every set of promises that form a consideration
for each other is an agreement. Thus, it is clear that the formation of
consideration for a promise or promises is a key ground on which a promise
becomes an agreement. There cannot be an agreement if there is no
consideration. Section 25 of the act says the same thing in precise terms and
also gives three exceptions when an agreement without consideration is a
valid contract.
Section 25: An agreement without consideration is void unless
1. it is in writing and registered and the promise has been made due to natural
love and affection between the parties standing in near relation to each other.
2. it is a promise to compensate, wholely or in part, a person who has
voluntarily done something for the promisor or something that the promisor
was legally bound to do.
3. it is a promise to pay for a time barred debt.
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Question3
All contracts are agreements but all the agreements are not
contracts? Discuss
Answer
A contract is a legally binding agreement or relationship that exists between
two or more parties to do or abstain from performing certain acts. There must
be offer and acceptance for a contract to be formed. An offer must backed by
acceptance of which there must be consideration. Both parties involved must
intend to create legal relation on a lawful matter which must be entered into
freely and should be possible to perform.
According to section 2(h) of the Contract Act 1872:
” An agreement enforceable by law is a contract.”
A contract therefore, is an agreement the which creates a legal obligation i.e.,
a duty enforceable by law.
From the above definition, we find that a contract essentially consists of two
elements:
(1) An agreement and
(2) Legal obligation i.e., a duty enforceable by law.

All contracts are agreements:

For a Contract to be there an agreement is essential; without an
agreement, there can be no contract. As the saying goes, “where there is
smoke, there is fire; for without fire, there can be no smoke”. It could will
be said, “where there is contract, there is agreement without an agreement
there can be no contract”. Just as a fire gives birth to smoke, in the same
way, an agreement gives birth to a contract.

An agreement is a form of cross reference between different parties, which

may be written, oral and lies upon the honor of the parties for its fulfillment
rather than being in any way enforceable.

All agreements are not contracts

As stated above, an agreement to become a contract must give rise to a
legal obligation. If an agreement is incapable of creating a duty
enforceable by law. It is not a contract. Thus an agreement is a wider term
than a contract.
Agreements of moral, religious or social nature e.g., a promise to lunch
together at a friend’s house or to take a walk together are not contracts
because they are not likely to create a duty enforceable by law for the
simple reason that the parties never intended that they should be attended
by legal consequences
On the other hand, legal agreements are contracts because they create
legal relations between the parties.
EXAMPLE: a- A invites B to dinner. B accepts this invitation but does not
attend the dinner. A can not sue B for damages. It is social agreement
because it does not create legal obligation. So it is not a contract
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Conclusion:
In a nut shell, an agreement is the basis of a contract and contract is the
structure constructed on these basis. An agreement starts from an offer
and ends on consideration while a contract has to achieve an other
milestone that is enforceability. Due to this, breach of an agreement does
not give rise to any legal remedy to the aggrieved party while breach of
contract provides legal remedy to the aggrieved party against the guilty
party. Thus we can say that all contracts are agreements but all
agreements are not contracts.

Question4
A conditions may be treated as warranty but a warranty
may not be treated as a condition? Discuss
Answer
The Sale of Goods Act 1930 provides the definition for a Condition as –
““A condition is a stipulation essential to the main purpose of the contract,
the breach of which gives rise to a right to treat the contract as repudiated”
and for a Warranty as – “A warranty is a stipulation collateral to the main
purpose of the contract, the breach of which gives rise to a claim for
damages but not to a right to reject the goods and treat the contract as
repudiated”.

A Condition forms the core of the contract i.e. considered as an essential

to the main purpose of the contract. Therefore, the repercussion would be
repudiation of the contract or claim for damages or both depending upon
the breach and case.
[ii] Breach of a Condition makes a contract voidadble on the part of non-
defaulting party to the contract. However, a Warranty is treated as a
collateral to the main purpose of a contract and therefore, the
repercussions of breach of warranty by one of the parties would be only a
claim for damages by the non-defaulting party.

A breach of Warranty by one of the parties does not make the contract a
contract voidable and does not give any right to the non-defaulting party to
repudiate the contract. The same position is further, clarified by section 59
of Sale of Goods Act, which provides that when there is a breach of
warranty by the seller, this breach does not provide the buyer with the right
to breach the contract, he may only sue the seller for breach of Warranty
in diminution or extinction of the price. Whether a particular stipulation in
the contract is a Condition or a Warranty, depends on the case to case.
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Terms of a contract of sale of goods can be both express or implied. When

a stipulation (Condition or Warranty) is expressively provided in the
contract of sale of goods, it is considered as express stipulation. On the
other hand, when the contract does not expressively provide for an
express Condition or Warranty, however, due to the nature of the nature of
the contract or intention of the party there is existence of a Condition or
Warranty in the nature, it is known as implied Condition or Warranty. The
Sale of Goods Act provides provisions for express and implied Conditions
and Warranties.

Question5
Who is unpaid seller? Discuss the rights of unpaid seller?
Answer
Unpaid seller" means a person who has sold the goods for a price but
price has not been paid to him. Sales act defines the "unpaid seller" in the
following words : Unpaid Seller Is A Person To whom the whole price has
not been paid or tendered.
Rights Of Unpaid Seller.
1] Suit for Price
Under the contract of sale if the property of the goods is already passed
but he refuses to pay for the goods the seller becomes an unpaid seller. In
such a case. the seller can sue the buyer for wrongfully refusing to pay
him his due.
But say the sales contract says that the price will be paid at a later date
irrespective of the delivery of goods,. And on such a day the if the buyer
refuses to pay, the unpaid seller may sue for the price of these goods. The
actual delivery of the goods is not of importance according to the law.
2] Suit for Damages for Non-Acceptance
If the buyer wrongfully refuses or neglects to accept and pay the unpaid
seller, the seller can sue the buyer for damages caused due to his non-
acceptance of goods. Since the buyer refused to buy the goods without
any just cause, the seller may face certain damages.
The measure of such damages is decided by the Section 73 of the Indian
Contract Act 1872, which deals with damages and penalties. Take for
example the case of seller A. He agrees to sell to B 100 liters of milk for a
decided price. On the day, B refuses to accept the goods for no justifiable
reason. A is not able to find another buyer and the milk goes bad. In such
a case, A can sue B for damages.
3] Repudiation of Contract before Due Date
If the buyer repudiates the contract before the delivery date of the goods
the seller can still sue for damages. Such a contract is considered as a
rescinded contract, and so the seller can sue for breach of contract. This is
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covered in the Indian Contract Act and is known as Anticipatory Breach of

Contract.
4] Suit for Interest
If there is a specific agreement between the parties the seller can sue for
the interest amount due to him from the buyer. This is when both parties
have specifically agreed on the interest rate to be paid to seller from the
date on which the payment becomes due.
But if the parties do not have such specific terms, still the court may award
the seller with the interest amount due to him at a rate which it sees fit.

Question6
Define contract of sale? What is difference between sale
and agreement to sell? Define essential elements of
contract of sale?
Answer
A contract of sale is an agreement between a seller and a buyer. The
seller agrees to deliver or sell something to a buyer for a set price that the
buyer has agreed to pay. With these contracts, the transfer of ownership
happens when the buyer pays and the seller delivers. ... An invoice is an
example of a sales contract.
Difference between sale and agreement to sell.
Sale- When in a contract of sale, the exchange of goods for money
consideration takes place immediately, it is known as Sale.
NATURE- Absolute
TYPE OF CONTRACT- Executed Contract
TRANSFER OF RISK- Yes
Title- In sale, the title of goods transfers to the buyer with the transfer of
goods.
Right to sell- Buyer
Consequences of subsequent loss or damage to the
goods- Responsibility of buyer
Tax- VAT is charged at the time of sale.
Suit for breach of contract by the seller- The buyer can claim
damages from the seller and proprietary remedy from the party to whom
the goods are sold.
Right of unpaid seller- Right to sue for the price.
Agreement To Sale- When in a contract of sale the parties to contract
agree to exchange the goods for a price at a future specified date is known
as an Agreement to Sell.
Nature- Conditional
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Type of contract- Executory Contract

Transfer of risk- No
Title- In an agreement to sell, the title of goods remains with the seller as
there is no transfer of goods.
Right to sell- Seller
Consequences of subsequent loss or damage to the
goods- Responsibility of seller
Tax- No tax is levied
Suit for breach of contract by the seller- Here the buyer has the
right to claim the damages only
Right of unpaid seller- Right to sue for damages
Essential Elements in a Contract of Sale
Two parties: A contract of sale is between two parties, where one party
transfers goods to another party.
Goods: The subject of the contract must be goods. This is usually the most
important element in a contract of sale because if the goods are not
described precisely, confusion could result.
Transfer of ownership: Ownership of the goods must be moved from the
seller to the buyer, or there should be an agreement in which the transfer
of ownership is made.
Price: The buyer in the contract must pay a price for the goods.
A sales contract is a special type of contract. In order for it to be valid, it
must contain clauses about free consent and the competency of the
signing parties.
A sale and an agreement to sell are part of a sales contract.
No formalities. There is no particular form to define a valid contract of sale.
A contract of sale can be made simply by offering and accepting.