1.

Question 1

Azhar offers to sell his house measuring 4500 sq. ft. in Vasant Kunj at a price of Rs 15 crores. On
March 10th 2023, he sends Nancy, a cardiologist at AIIMS, an email stating

"Dear Nancy,

As you may be aware from our previous conversation on March 7th, 2023, I am planning to sell
my house in Vasant Kunj measuring 4500 sq.ft. for a price of Rs 15 crores including registration
costs and stamp duties. You had expressed an interest in this property, therefore I am writing
to you offering the property for sale if you wish to make the purchase. Please Let me know your
response by March 25th, 2023 by 5:00 pm."

Nancy saw this email on March 15th, 2023 at 10:45 am and replied-

"Dear Azhar,

Thank you for your offer. I would like to visit the property on March 23rd at 5:00 pm and
discuss further details. Please let me know if this suits you."

Azhar replied to the email at 10:55 am on the same day saying - "Sure, let's meet as per your
convenience. Details of payment to be discussed soon."

On March 23rd, Nancy visits the house with Azhar at 5:00 pm. They were discussing the mode
of payment and negotiating on whether this should be through a cheque or bank transfer
around 5:45 pm. Suddenly, Azhar goes into cardiac arrest. Nancy calls for an ambulance and
performs emergency rescue measures on Azhar. The paramedics and the ambulance arrive at
6:00 pm and Azhar's heart rate is consistently dropping. They shift him to the ambulance, hook
him up to the defibrillator and begin to shock his heart back to rythm while the ambulance is en
route to the closest hospital. Nancy is in the ambulance with Azhar. But the line on the monitor
goes flat indicating that Azhar is medically dead. One of the paramedics calls the time of death
as 6:06 pm.

At 6:12pm, the paramedics and Nancy hear a beep on the monitor and notice that Azhar's vitals
start to pick up. Azhar reaches the hospital and his life is saved. Azhar is discharged on March
24th at 10:00 am. On March 25th, 2023 at 9:30 am, Nancy writes to Azhar stating that she
accepts his offer to purchase the house and will make the payment as per his convenience. At
11:00 am on the same day, Azhar responds by saying "Sorry Nancy, but the offer has lapsed
because of my cardiac arrest." Nancy sues Azhar for specific performance.

Azhar comes to you for legal help. Assess the following and advise him accordingly-

1) Is there a binding contract between Nancy and Azhar?

Apply all relevant Common Law cases, Indian law cases, and provisions of the Indian Contract
Act, 1872 in answering the question.

2. Question 2

Critically analyse whether economic duress should be included within the purview of S 15 of the
Indian Contract Act.

3. Question 3

Nancy walks into Zara to buy a dress on March 24th, 2023. She picks up a red halter neck and
takes it to the trial room. When she tries it out she realises that the dress is a little big for her
and requires minimal alterations. So, she brings out her portable sewing machine and makes
the necessary alterations to the dress and places the dress in her shopping bag. In addition to
this, she also picks up a jacket. She approaches the billing counter and the store manager
notices that Nancy has made modifications to the dress with a shoddy sewing job. Nancy asks
the store manager to bill the jacket, but returns the dress she altered. The dress was priced at
Rs 5999. The store manager refuses to return the dress pointing out the alterations. Nancy says
she will not have it. This argument goes on for a few minutes and the store manager says, "Ok,
you will purchase the dress at a discounted price or Rs 4999." Nancy replies, "No, I am
purchasing the dress at Rs 2999." The store manager proceeds to bill Nancy for all the items
and Nancy makes the payment.

On March 25th, Zara's management learn about the incident and decide to send Nancy a legal
notice.

Nancy appoints you as her lawyer. Advise Nancy on whether a contract has concluded between
Zara and her.

Use all relevant common law, Indian law cases and provisions of the Indian Contract Act.

4. Question 4

Rankin CJ held: "Clause (d) of Section 2 of the Contract Act widens the definition of
'consideration' so as to enable a party to a contract to enforce the same in India in certain cases
in which English law would regard the party as the recipient of a purely voluntary promise and
would refuse him a right of action on the ground of nudum pact. Not only, however, is there
nothing in Section 2 to encourage the idea that contracts can be enforced by a person who is
not a party to the contract, but this notion is rightly excluded by the definition of 'promisor' and
'promisee'."
Critically analyse the statement in light of the doctrine of privity. Do you agree with this view?

5. Question 5

Did the drafters of the Indian Contract Act intend to faithfully codify the English law on
consideration? What, if any, were the intended differences between the consideration
requirement in English law and Indian Contract Act? Have the courts given effect to the
intention of the drafters in this regard? Discuss.

6. Question 6

The current edition of Pollock and Mulla comments that

‘[t]he Indian law is rigid, in that it invalidates all restraints, whether general or partial,
and neither the test of reasonableness nor the restraint being partial apply to a case governed
by s.27, unless they fall within the exception of that section’.

Do you agree with this view?

7. Question 7

"Indian courts have since invoked Mohori Bibee in bloodless abstraction, as if it were an
unquestionable axiom of Indian contract law. This article argues that the Privy Council’s reading
of the Act in Mohori Bibee is problematic, and its invention of the category of contracts void ab
initio is unsupported by the Act."

Do you Agree with this view?

8. Question 8

Critically analyse whether Indian law on promissory estoppel mirrors rules for the same at
common law.

9. Question 9

Write a short note on Intention to Create Legal Relations at Common Law and at Indian Law.
Are agreements made within the family valid under the Indian Contract Act? Discuss the
circumstances under which contracts based on love and affection may be valid.

10. Question 10

Discuss the pre-existing duty rule under the doctrine of consideration at common law. Evaluate
whether a pre-existing duty may be valid consideration at Indian law in light of relevant case
law and statutes.