Business Law Small Cases Assignment By: -

NAME- BISWAJIT ROUTARAY ; ROLL NO.- MGT21044

1. A borrowed Rs.50,000 @ 12% Interest from B payable at demand. B made the

demand and on the failure of A to pay, he was about to sue A to get back his money.
A request to B to postpone the filing of the suit and agrees to pay interest @ 18% pa.
on refusal to pay interest at 18% B filed a suit and got decree against A. what is the
actual consideration in this contract.

Ans. The actual consideration for the contact is 18% pa as this is done in exchange of
delaying filing of a suit in court.

2. A borrowed Rs. 5,000 from B a money lender and agree to repay the loan on 31st
March 2018. On 31st March 2018, A fails to repay the loan. B remain does not
demand payment for the same for a period of three years. Discuss the liability of A in
this situation.

Ans. The liability on A is that they have to repay Rs. 5,000/- to B, assuming no other
terms and conditions have been agreed upon.

3. D agrees to supply coal within certain time, due to govt. restriction on the transport of
coal from collieries there was the failure of delivery in time. If coal is available in the
open market at the same time at a high cost, thus D was not purchasing the coal from
the market and failed to supply. Is this a case of discharge by the impossibility of
performance? If yes, give the reason.

Ans. No this is not a case of discharge by the impossibility of performance as it is not

an excuse from performance. This contract is not discharged by impossibility due to
“Difficulty of performance” which says a contract is simply not discharged on ground
that its performance has become difficult, more expensive or less profitable that greed
at the time of formation.

4. A deliver certain books to D, a bookbinder who promises to bind and return them
within a reasonable time. D could not complete the job within a reasonable time. The
book was subsequently burnt in an accidental fire on D’s premises. According to
bailment what is the role of D? does D will responsible for the loss although it was an
accidental case?

Ans. According to bailment the role of D is that of a bailee to whom the goods are
delivered. And in my opinion D will not be responsible for the loss as it was
 accidental cause because of the clause of duties of the bailee “to take care of the
goods bailed”.
This states that bailee shall not be responsible, in the absence of any special
contract, for the loss, destruction or deterioration of the thing bailed (s.152).

5. The property dealer was instructed by the vender to find a purchaser for a property.
He did so and accepted from the prospective purchaser a deposit as an agent for the
vender. The vendor refuses to complete the sale and the agent fail to return the deposit
received by him from the proposed purchaser. Who will repay the deposit amount to
the proposed purchaser—and why?

Ans. The agent will be responsible to repay the deposit amount to the proposed purchaser
because according to the duties of the agent to conduct the business of agency according
to the principal’s direction - the agent is not supposed to deviate from the directions of the
principal even for the principal’s benefit. If he does so, any loss occasioned thereby shall
have to be borne by the agent, whereas any surplus must be accounted for to the principal.

6. X sold certain goods to Y to be paid for on delivery. Y fails to pay after the goods had
been in part delivered. X stopped further delivery. As X has to stop delivery --- is that
a case of breach of contract? Is there any possibility that X will claim for the delivered
goods?

Ans. This case comes under rights of “Unpaid Seller” – where comes the Right of
Lien where possession of goods can be kept until payment is made by the buyer. Also,
the seller which is X can file a suit for claiming Price of delivered goods.

7. A contract was made for the sale of wheat on c.i.f. terms. The buyer took the
documents and delivers the parts of the wheat to the sub-buyer without making a
proper examination there off. The wheat has been found of inferior quality, they claim
to reject it. Is that claim acceptable? Give the appropriate explanation.

Ans. In my opinion, the claim of rejection is unacceptable because in case of contract for
sale of a bulk item, it is responsibility of the buyer to check the intangible property like
quality before accepting the consignment of wheat under c.i.f. mode where seller pays the
transit money.

8. The goods sold were delivered to the buyer’s shipping agent, who had put them on
board a ship. But the goods were returned to the seller for repackaging. While they
were still with the seller on his mission, the buyer become insolvent and the seller
 being unpaid, claimed to retain the goods in the exercise of his line. Has there any
right with the seller to hold the delivery? Is there a breach of the contract? Who is
responsible for the breach of the contract?
Ans. According to Seller’s lien of Sales of Goods Act, there is complete right of unpaid seller
to retain possession until payment received from buyer. Also, yes there is breach of contract
from buyer’s side and it can be terminated by seller under lien condition.

9. A purchased hot water bottle from retail chemistry, the bottle could stand hot water
but not boiling water. Then it was filled by A with boiling water, it burst and injured
his wife. A sue for damage. explain the solution.

Ans. In my opinion, A cannot sue the retail chemist as the implied condition of the bottle
withstanding hot water only was already conveyed by the seller to the buyer. But also, A
can sue on charges of quality due to which injury happened.

10. A agrees to act as the agent of B for the purchase of a house. He bought the house for
Rs. 10,000 in the name of his nominee; C. subsequently he purported to purchase it
from C for Rs. 20,000. He then offer the house to B for Rs. 20,000 telling B that he
himself had a price of Rs. 20,000 for it to C. B paid Rs. 20,000 to A. state the rights of
B against A.

Ans. A being a party to the contract by acting as an agent is committing a FRAUD. B has
the right to file a suit against A. Also, B can also claim damages for the same from A to
mitigate losses and recover from consequential losses.