LL.B.

I/III/V Semester Annual Exams, December, 2020

Subject: Law of Contract

Code: LB-102[ NC & OC]

Marks : 100 Time : 3:00 hours

Instructions :
All questions carry equal marks. Any four may be attempted.

Q.1 A wants to purchase a motorcycle belonging to B and therefore he writes a letter to B offering to
buy his Motorcycle for Rs. 80,000 stating therein that “I shall take the motorcycle to be mine unless I
hear from you”. B does not reply to this letter but directs C (his agent), not to sell the motorbike to
anyone as he (B) wants to sell the same to A. However, C sells the motorbike to D. A seeks your advice
to file a civil Suit against C. Advice A!

Q.2 A, an old lady granted her estate to her son B with the direction that he (B) should pay an annuity of
Rs 10000 to A’s brother, X. The same day B made a promise with X that he would pay annuity as
directed by his mother, A. B failed to pay stipulated sum to X. X being aggrieved intends to file a suit
against B and therefore seeks your advice. What advice would you give him? State with the help of
judicial pronouncements on the same.

Q.3 Ram, a minor, falsely represent himself to be of the age of majority enters into an agreement with
Mohan, to sell his agriculture land. Mohan paid full consideration of Rs 50 lakhs to Ram. However,
later Ram refused to execute a sale deed of his agriculture land in favour of Mohan on the plea of
minority. Mohan files a suit for breach of contract. Will he succeed? Decide the case with the help of
statutory and relevant case law.

Q.4 Khubi and Gograj were two brothers and both were equal owners of the joint family property. They
quarreled and had fights over this property. Due to the same, Gograj initiated criminal proceeding
against his brother Khubi. Khubi mortgaged his share of property to Vikram to defend himself in the
criminal proceedings and borrowed from him 50000 rupees at a compound interest of 26%. In 10 years,
the amount borrowed multiplied more than twelve-fold i.e., around 6,49,000. Khubi applied for
cancellation of mortgage deed. Will he Succeed? Decide.

Q.5 A, a film producer had entered into a contract with B to exhibit the film in B’s cinema hall on 25th
April 2020. On the said day the movie could not be exhibited due to the outbreak of corona as the
cinema halls were to be kept closed in terms of an executive order of the government. As a result, A
suffered huge losses. A has filed a suit against B. How would you argue the case of B if engaged as his
lawyer?

Q.6 X, who was a cloth manufacturer had entered a contract with ABC Transport Co. to deliver cloth at
Jaipur where he was expected to carry on his business at high profits by the reason of a forthcoming
festival. X had only mentioned that the cloth must be delivered at the specified address. Because of the
fault of ABC Transport Co. goods were delayed and delivered much after the conclusion of festival. A
claim projected losses, that is, the loss of profits that he might have earned had the goods been delivered
at the right time. Will A succeed? Discuss the law and precedent in this regard.