Roll No.

SAP ID
UNIVERSITY OF PETROLEUM AND ENERGY STUDIES
Mid Semester Examination, Sept 2021
Online – Through Blackboard Learning Management System

Course: Law of Contracts Course Code: CLCC1002

Programme: BA/BBA LLB Semester: I

Time: 01 hrs. Max. Marks: 100 (weightage 20% in the grade sheet)

Instructions:
As this examination is in online mode with open book system, the students are expected to demonstrate a very high degree of
Academic Integrity and not copy contents from resources referred. Instructors would look for understanding of the concept by
the students and any similarity found from resources online/ offline shall be penalized in terms of deduction of marks and even
cancellation of paper in requisite cases. The online examination committee of the School would also look for similarity of two
answer scripts and if answer scripts of two or more students are found similar, both the answer scripts shall be treated as copied
and lead to cancellation of the paper. In view of the aforesaid points, the students are advised that they should desist from using any
unfair means.

Instructions:

S. No. Marks CO
1 In the following situations provide which rule of valid offer should apply and further
state whether there can be valid agreement.
1. A invites his friend B to a dinner and B accepts the invitation. If B fails to turn up
for dinner
2. A promises to buy one more horse from B for Rs. 10,000 if the horse purchased
earlier proves lucky.
3. An auctioneer advertised in a newspaper that a sale of office furniture will be held 50 CO3
on a certain date. A person with the intention to buy furniture came. from a distant
place for the auction, but the auction was cancelled.
4. S offered a reward to any one who returns his lost dog. F brought the dog without
any knowledge of the offer of reward.
5. I offer to sell my scooter to you for Rs. 7,000. If I do not receive a reply by
Wednesday next, I shall assume that you have accepted the offer.

Ans. 1 . Agreement is not valid because it dose not create any legal
relation . Offer must have legal relations and legal obligations which
is enforeceable by law .Social Agreements and Social Invitation
cannot be regard as valid agreement . A cannot go to the court to
claim his loss .
In famous case Balfour vs Balfour it was held that agreements of a
social or domestic nature do not contemplate legal relationship. In
which husband and wife both come into the contract for the
 maintainence which was later held by court void . As such they are
not contract as well .
2 . There is no valid contract and no valid agreement as the terms of
the contract are so vague and loose . Sale of object and consideration
is not uncertain . The material of which is not certain or capable of
being made certain are void . Contracts relates to the horse or some
other horse depending upon a vague condition of fortune .
3 . It is not valid agreement . It was held that a declaration of the
intention to hold auction did not create a binding contract who
has acted upon it. It was only an invitation to offer and the
broker cannot recover any amount on account of loss of time and
expense from the auctioneer.In case of invitation to offer, the party
who shows an interest in the invitation makes an offer and the
party who is inviting offer gives acceptance or rejection of
that invitation thereafter. Accordingly a response to the
invitation are simply offers and not acceptance of an offer.
4 . An offer must be communicated to the person to whom it is
made. One can accept the offer only when he knows about it thus an
offer accepted without its knowledge does not confer any legal right
on the acceptor. Hence in this case it was held that F was not entitled
to the reward because F cannot be said to have accepted the offer
which he did not know.
5 . Agreement is invalid because acceptance matters and offer +
acceptance = Agreement . Since he or she has not send the reply of
aceeptance of the offer So agreement is invaild and void .Offer
should not be non-complaince . Without acceptance of the party it
will not become the contract .

2 Mr and Mrs Singh married in 1941. They held their matrimonial home in joint names. In
1966 Mr Singh left the family home to live with another woman. Mr Singh agreed to pay
Mrs Singh Rs. 10,000 per month. At Mrs Singh’s request, he signed a document confirming
that when she had repaid the balance on the mortgage, he would transfer the matrimonial
home into her sole name. Mrs Singh paid off the mortgage and successfully acquired a 50 CO4
declaration that the house belonged to her. Mr Singh appealed.

Decide the case.

Ans. Mr singh appealed was failed because at the time of separation or

before separation it does not create any intention to create legal
relationship .The arrangement was sufficiently certain to be
enforceable, and the paying of the mortgage was ample
consideration for Mr singh promise. Mrs Singh was entitled to the
matrimonial home entirely. An agreement to become a contract
must give rise to legal obligation. If an agreement is incapable to be
enforced by law, it remains only agreement and not contract, such
as: (a) Social Agreements (b) Agreements without legal intention (c)
Agreements without consideration.

Same verdict was also passed on the Merritt vs Merritt . They also
have not created any legal relationship which back to the failure of
the Merrit appeal .

I, ……………………………………………., understand that submitting work that isn’t

my own may result in failure in this paper and I may also be subject to Disciplinary
Proceedings as per the Academic Integrity policy of the University.