Name: Hamza Mehmood Hussain

VU ID: BC190403558

Read the examples given below and answer the questions. (5 marks each)

a) Murtaza agreed to construct a bungalow for Abdullah at a cost of Rs. 50 million.

However, it was agreed that payment would only be made on completion of the
project. Support with reason, whether it is a contingent contract under the
Contract Act, 1872? Also list down the requisite characteristics of a contingent
contract.

Yes, the agreement between Murtaza and Abdullah is a contingent contract under the
Contract Act, 1872. This is because the event has uncertainty and it is to occur in
future. contingent contract depends on future.
the requisite characteristics of a contingent contract are;

Mutual consent: Both parties agree to the contingent contract under the Contract Act,
1872.

Contingency: The contract depends upon the occurrence or non-occurrence of a future

event. It is uncertain in nature.

Future event: It must involve a future event has to happen in future.

b) “A” entered into an agreement with “B” to sell his scooter. “A” intended to sell
his 3G scooter but “B” believed that “A” would sell his 4G scooter. What is the
legal status of this contract?

The legal status of the misunderstanding, poor communication and mutual mistake.
They are defined below;

Misunderstanding: B misunderstood the scooter requirement.

Poor communication: There was poor communication about the features of the
scooter.

Mutual mistake: Both parties made mistake because A made uncertainty in terms and
B did not plainly check the scooter.

c) A gang of thieves stole a high-value painting from a display in a local auction

house. Later, they sold it to a rich landlord at a very high price and split the
Name: Hamza Mehmood Hussain
VU ID: BC190403558

proceeds equally. However, one person in the gang could not receive a fair share
of the proceeds. Mention the remedies available to the aggrieved thieve explaining
the legal status of this contract.

There is no legal status of the contract because there is no binding consideration and
there is no essential legal contract.

This was a friendly agreement and Social agreement does not create any legal
relationship, hence contract not enforceable by law. There is no legal consideration as
this might cause injury to someone and involves an immoral act.

He can suit for declaration but this involves criminal activity.

Remedies available to the aggrieved thieve explaining the legal status of this contract
are:

Convict his friends: He can go to police and make himself witness of the crime. He
can get reduced sentence and his friends wouldn’t be able to enjoy the stolen money.

Refuse to take: Its Haram money, he should advise his friend to give all the money in
charity.

Ask other thieves: He can ask other thieves that there was unjust splitting of cash and
they should give him his due share.

Steal again: If he can steal once, he might be able to steal again from the landlord. He
can then return it to the auction store and collect reward money.

d) Umar, the lawyer of Ibrahim induces him to transfer his agricultural land, to save
him from imprisonment in a fraud case charged against him. Accordingly, Ibrahim
transfers his land. Apparently, this is not a valid contract as it does not meet a
condition of free consent to the parties. Identify that condition and comment on it.

If Ibrahim should seek legal advice and take appropriate action to protect his rights
and interests. He would have the right to challenge the contract and seek its
cancellation or restoration of his land. He should consult legal professional as it
doesn’t meet the free consent to the parties under the 1872 Act.