INDIAN CONTRACT ACT

Preliminary (Ss. 1 ..2)

Q. 1. Discuss the doctrine of 'consideration' under the Indian Contract Act. [UPJS 1985]
Q. 2. Explain the effect of mistake, misrepresentation and undue influence respectively on
validity of an agreement. (UPJS 19851
Q. 3. Write short note on:
Proposal and invitation to proposal. [UPJS 1997]
Q. 4. (a) 'Consideration may be executed or executory but not part'.
Elucidate the statement by referring to English and Indian Law.
(b) A borrowed Rs. 40,000 by executing a mortgage of her Zamindari in favour ol B.
Subsequently, she sold the property to C for Rs. 44,000 and allowed C, the purchaser
to retain Rs. 40,000 of the price in order to redeem the mortgage if he thought fit.
B sues C for the recovery of mortgage money.
Is A bound by the acceptance. (B&:JJS 1977]
Q. 5. 'To create a contract there must be a common intention of the parties to enter into legal
obligation'. Discuss. [B&:flS 1977)
Q. 6. Analyse the law relating to 'offer' and 'acceptance' in the making of a contract in
India. [B&HS 1978)
, Q. 7. A makes an offer to purchase certain goods in the possession of B who is an agent
of C but has no authority to make any contract of sale. His order is accepted by Bon
behalf of C, B writes to G for the rectification of the contract. Before the rectification
comes, A withdraws the offer, C ratifies the contract made by B. Has a contract come
into existence in this case? Discuss. (B&DS 1978}
Q. 8. Define 'Consideration' according to the Indian Contract Act, and bring out the difference
ii any, between the concept of consideration' under Indian Law and the concept of
consideration in English Law. Examine also, the proposition: 'Past consideration is no
consideration at all' with particular reference to India Law. [B&flS 1978)
Q. 9. X transfer some property to Z and Z agrees to pay Rs. 500 per month to the aged
mother of X during her life time. X dies after making this agreement. Z refuses to
pay any amount to the mother of X. What are the rights o.f the old lady against Z.
(B&JJS 1979]
Q. 10. X offers to take Z 'land on certain terms. The acceptance o.f Z is to be given within
four weeks. Within that time Z writes to X a letter purporting to accept the offer but,
in fact, the letter, contained a material variation. of the terms. X then withdraws his
offer. Z writes again still within. the four weeks correcting the error in his first letter
and accepting the terms originally proposed by X, State whether a contract has been
formed between X and Z, and if Z has any remedy available against X? (IJ:&flS 1979)
Q. 11. 'It is contended that in addition to the phenomena of agreement and presence
conslderarion a third c-ontractual elements is required.' What is the third contractual
lement.
Discuss it with reference to: (a) Domestic Agreements and (b) Commercial Agreements.
Refer to case law. (B&flS 1980I
F-3
F-4 All States Judicial Service Examination - Unsolved Mains Paper
Indian Contract Act
Q. 12. Explain the concept of stranger to a consideration and stranger to a contract. Bring out
the differences if any in the concept under Indian Law and English Law. Refer to leading -· Sir William Anson
case laws. What are the exceptions to the rule that a stranger to a contract cannot sue Examine this statement in the light of the definition of contract given in the Indian
upon it? [B&JJS 1980] ontract Act, 1872. (B&JJS 19911
Q. 13. "The difficulties attendant upon a definition of contract in subjective terms have led Q. 21. "All contracts are agreements but all agreements are not contracts". Explain. [US 2001]
to the formation of an objective theory which places little emphasis upon the meeting
of wills and much more upon the legal expectations aroused by the conduct of the Q. 22. '' A contract cannot be enforced by a person who is not party to it, even though it is
parties." made for his benefit. n Explain and point out the exceptions to this rule. UJS 2014)
E1ucidate the above statement. (B&JJS 1984) Q. 23. 11
A contract cannot be enforced by a person who is not a party to it even though it is
made for his benefit."
Q. 14. "It Le; sometimes difficult to distinguish statement of intention which cannot, and are not
intended to, result in any obligation ex-contract from offers which admit of acceptance, Discuss the above statement and refer to relevant decided cases and point out the
and so become binding promises." exceptions to this rule. [BJS 2014)
Explain the above statement. Give leading cases in support of your answer. Q. 24. Define consideration. Discuss that consideration and objects are unlawful under the
[B&JJS 1984) Indian Contract Act, 1872? [HJS 1984]
Q. 15. What do you understand by Standard Form Contract? Discuss the various modes of Q. 25. A and B are friends. B treats A during A's illness. B does not accept payment from
protection evolved against the possibility of exploitation inherent in such contracts. A for treatment and A promises B's son X, to pay him Rs. 1,000. A, being in poor
[B&JJS 19861 circumstances, is unable to pay. X sues A for the money. Can X recover. [HJS 1986)
Q. 16. Will P succeed in the following case: Q. 26. What are the essentials of a valid offer? [HJ$ 1988]
(a) On January 2, 1986 D sent a letter offering to sell a certain quantity of wool to P. Q. 27. What conditions are necessary for converting a proposal into a promise; a promise into
The letter added, 'receiving your answer in course of post'. P received the letter on r
an agreement and an agreement into a contract? Illustrate your answer. (HJS 1996)
5th January and on the very evening wrote to D agreeing to accept the wool. But Q. 28. "Acceptance is to an offer what a lighted match is to a train of gun powder", Explain
his letter was received by D on 9th January. Meanwhile D, having waited for P s 1
with reference to its conditions and incidents as dealt within English and Indian laws,
acceptance upto 8th January and not having received it, should the wool to other [HJS 1998]
parties. P sues D for breach of contract. (B&J}S 1986)
Q. 29. All contracts are agreements, but all agreements are not contracts. What conditions
Q. 17. Will P succeed in the following case: have been laid down in the Indian Contract Act for an agreement to become a contract
A borrowed Rs. 40,000 by executing a mortgage of his Zamindari in favour of P. [HJS 2000]
Subsequently. A sold the property to D for Rs. 44,000 and allowed D, the purchaser, to Q. 30. "Every promise is an agreement." Examine the validity of this statement in the light of
retain Rs. 40,000 of the price in order to redeem. the mortgage if he thought fit. P sues the relevant provisions of Indian Contract Act, 1872. [HJS 2015]
D for the recovery of the mortgage money. (B&JJS 1986)
Q. 31. A sends a price list of goods to B on latter's request. B places an order on dealer A for
Q. 18. Will P succeed in the following case:
goods specified in the price list on prices quoted in said list. A did not execute order
(a) P accepted a Vakalatnama from D to sue him in a certain suit on payment of usual for supply. What is B's remedy, if any? (DJS 1980]
fee. Subsequently D agreed to pay him a certain sum as a special reward (fNAM) if
Q. 32. M/s [ainsons, a firm dealing in readymade garments advertises in newspaper about
he won the case. The suit was decided in D's favour who refused to pay the special
award (INAM) to P. P sues D. [B&JJS 1986) Clearance Sale of their stocks. C, a customer visits the shop, picks up a shirt lying .in
the lot with price tag of Rs. 400/-, takes to salesman, asks him to pack the shirt and
Q. 19. "The difficulties attended upon a definition of a contract in terms of consensus have led prepare the bill. Salesman discovers that shirt in question should have been in the lot
to the formation of an objective theory which places little emphasis upon the meeting of articles with price tag of Rs. 500 /- and refuses to sell the shirt to C and tell him it
of wills and much more upon the legal expectations aroused by the conduct of the was wrongly put in the lot of articles with price tag of Rs. 400/-. Can C compel th
parties," firm Iainsons to sell the particular shirt to Cat Rs. 400/-? Discuss whether contract had
Examine this statement in the light of the definition of contract given in the Indian been concluded. [DJS 1996)
Contract Act, 1872. [B&JJS 1987)
Q, 33. Distinguish an "offer" from an "invitation to offer." A published an advertisement for
Q. 20. "A contract is an agreement enforceable at law made between two or more person selling his house at a price of Rs. 15 lakhs. A declined to sell his house to B who
by which rights are acquired by one or more act or forbear on the part of the other or ready to pay Rs. 15 lakhs as price of house of A. A sold his house to C who agreed to
others." pay price of Rs. 20 lakhs. Whether B can sue A for purchase of house? [DJS 2005)
F-6 All States Judicial Service Examinatwn - Unsolved Mains Paper Indian Contract Act F-7
Q. 34. "All contracts are agreements but all agreements are not contracts", Discuss. Q. 8. A makes an offer to B for sale of a radio to B for Rs. 200 only. Next day he sells the
[DJS 2008) radio to C and this fact comes to the knowledge of B from his friends. Can B still accept
Q. 35. Define the following words: the offer of A? [HJS 1988]
(a) Proposal Q. 9, A teaches his parrot to recite an offer and sends the parrot to B. The bird repeats the
recitation before B, who says 'yes' to the offer. Is this a valid offer and acceptance, giving
(b) Agreement
rise to an agreement? Give reason for your answer. IHJS 1996)
(c) Contract
Q. 10. A wrote to B offering to purchase his car for a particular price and also added that in
(d) Consideration [RJS, 1992, MPJS 1996] the event of B not replying him , A would consider the proposal to have been accepted.
Q. 36. Deline: B does not reply. Is there a contract? Will B succeed? IHJS 1996]
(a) Voidable contract Q. 11. Tarun who is the owner of a mountain bicycle writes a letter to Satish on March 15, 2015
(b) Promise IMPJS 19981 offering to sell him his bicycle for Rs. 50,000. The letter also mentions that the offer will
Q. 37. Define the following:
be open till 20th of March 2015. On 18th March, 2015, at 3:50 pm Salish posts a letter
of acceptance to buy the bicycle which reaches Tarun at 8:30 pm the same day. Before
(a) Reciprocal Promises that al 1:10 pm Tarun has already posted a letter of revocation with reaches Satish al
(b) Void Contract [MPJS 2003] 5:30 pm. Critically examine whether a binding contract has been entered between Salish
Q. 38. Define 'Consideration'. State the exceptions to the rule that contract of guarantee. and Tarun citing relevant provisions of Indian Contract Act, 1872. [HJS 2015)
(MPJS 2006] Q. U. A, a resident of Calcutta made a telephone call from there lo B at Delhi and made him
offer for the sale of specified goods. B accepted the offer over the telephone but by then
Comm unication, acceptance and revocation the trunk telephone went dead and A could not hear B. Is the contract complete? Give
of proposals (Ss, 3-9) your reasons. [RJS 1974)
Q, 1. A offered to buy flour from B requesting that an acceptance should be sent by the wagon Q. 13. When communication of a proposal is complete? [RJS 19861
which brought the offer. Q. 14. When can acceptance be revoked? IRJS 19881
B sent his acceptance by post, thinking that it would reach the other speedily. But the
Q. 15. The managing committee of a school offered a post of teacher to "A" on monthly salary
letter arrived after the time of the wagon.
of Rs. 500/-. "A" in reply while accepting the offer imposed a condition that he would
Is A bound by the acceptance. (B&JJS 1977] join the post only if he was to be given a live years contract. The commillee wrote back
Q, 2. X sends an offer to Z by post, Z posts his letter of acceptance, but subsequently sends requiring "A" to join the post by a certain date mentioning that it had no objection for
a telegram revoking his acceptance. Is there any enforceable contract between X and giving him a five years contract which will be executed in writing formally latter on.
Z? Will your answer be different if X receives, both the letter of acceptance and the "A" joined the post on specified date. Services of "A" were terminated after 2½ years
telegram at the same time? [B&JJS 1979) giving him one month's notice. "A" claimed in a suit, damages in shape of the whole
Q, 3. How is an offer made, revoked and accepted? What rules apply when an offer is made salary of the unexpired period of five years as he could not secure any other job despite
through Post and over the telephone? [B&JJS 2006) efforts. Decide the case giving reasons. [DJS 19821
Q. 4. "An offer cannot be accepted unless and until it has been brought to the person lo Q. 16. "Acceptance is to offer what a lighted match is to a train of gunpowder. It produces
whom it is made." What is an offer? When is the communication of an offer completed? something, which cannot be recalled or undone. But the powder may have lain till it
Jllustrate with judicial decisions. Distinguish between offer and invitation to treat. has become damp or the man who has lain the train may remove it before the match is
[B&JJS 20111 applied". Explain with illustrations the principles sought to be expressed in the above
Q. 5. A finds B's purse and gives it to him. B promises to give A Rs. 500 Can A institute the passage. [DJS 1990]
suit to acquire B money from. [HJS 1984) Q. 17, A died intestate on 12.01.1961. He filed a proposal for insurance for Rs. 50,000 on
Q. 6. A accepts the proposal of B by a letter and puts it in post. But the Jetter is lost in post 27.12.1960. There was medical examination by doctor of Insurance company of deceased
transit. Whether the acceptance is communicated? IHJS 19841 on 27.12.1960. Deceased had issued 2 cheques for Rs. 300 and 220 respectively in favour
Q. 7. A offered by letter lo buy his nephew F's horse for Rs. 10,000 adding that, 'If I hear no of Life Insurance Corporation. Cheque for Rs. 300 was encashed by Insurance Co. and
more about this, I shall consider the horse lo be mine al Rs. 10,000'. No answer was cheque of Rs. 220 was dishonoured 3 times but was finally encashed on 11.1.1961.
returned to this letter but F told B, an auctioneer, lo keep the horse out of sale of his insurance papers were put up by the concerned insurance staff of Divisional Manager but
farm stock, as he intended to reserve it for his uncle A. B sold the horse by mistake. A he did not sign the Insurance policy. Divisional Manager was the competent authority to
sues F for breach of contract and claims compensation. Decide. [HJS 1986) accept the policy. No communication accepting proposal of Insurance policy was issued
by Insurance Corporation.
F--8 All States Judicial Service Examination - Unsolved Mains Paper
Indian Contract Act F-9
Widow of A wrote to Insurance Corporation on 16.1.1961 intimating death of A on
the consignment was late by 2 weeks. B, who had transmi tted the advance sum, refused
12.1.1961 and demanded payment of Rs. 50,000. Divisional Manager denied liability on
to lift the consignment. A instituted a suit in Shimla for the balance consideration.
28.1.1961. Thereafter there was correspondence between the parties between 1.2.1961 to
23.2.1963 wherein wife of deceased A claimed payment and Insurance Company denied Stand taken: B defended the suit on merits as well as on the ground that since the
liability for the same. acceptam.:e was intimated from Delhi the contract was concluded in Delhi and hence,
Widow of deceased A filed suit on 10.1.1964 for recovery of Rs. 50,000 with costs. How the court in Delhi had jurisdiction to entertain and try the suit.
will you decide? Give reasons. (DJS 1991] Poser: Is the suit instituted by 'A' in Shimla maintainable? Give short reasons.
Q. 18. The defendant made an offer to the Managing Director of a company who having no (DJS 2010]
authority to do so, accepted it. That gave the company an option to ratify the contract. Q. 28. How does "communication of an officer" differ from "communication of acceptance?
But the company ratified only after the defendant had withdrawn his offer. The company Support your answer by reference to leading cases. [MPJS 2010)
sued the defendant for specific performance. Decide. (DJS 1991]
Q. 29. What is acceptance? What are the essential terms of a valid acceptance? [MPJS 2011)
Q. 19. 'A' offered by letter to buy his nephew 'F's horse for Rs. 10,000/- adding that" if I hear
no more about this I shall consider the horse to be mine at Rs. 10,000/-". No answer Q. 30. What is lawful consideration? When would the consideration or object of an agreement
was returned to this letter but F told B, an auctioneer, to keep the horse out of sale of
be unlawful? (MPJS 2015)
his farm stock, as he intended to reserve it for his uncle A. B sold the horse by mistake, Q. 31. On April 10, 1990 A offered to B to sell his car for Sixty thousand rupees. B was asked
A sues F for breach of contract and claims compensation. Decide? (DJS 2006] to signify his acceptance by April 18, 1990. On April 12, 1990 A sold his car to C for
Q. 20. X sends a letter to Y proposing to sell his house to Y for certain price. When is th Seventy thousand rupees. This he did without revoking his offer to B. However, B
communication of the proposal completed? [DJS 2008) came to know of this fact through other sources on April 14, 1990. Still he signified his
acceptance of the offer on April 16, 1990. Has this Resulted into a binding agreement
Q. 21. Y accepts X's proposal through a letter sent by post. When ls the communication of the
between A and B? [UPJS 199-1)
acceptance complete:
Q. 32. Answer the problems with reference to relevant laws:
(i) as against X and
(ii) as against Y. {DJS 2008] 'A' teaches his parrot to recite an offer and then sends the parrot to 'B'. The parrot
repeats the recitation. Is this a valid offer? Will it make any difference to your answer.
Q. 22. X revokes his proposal to sell his house by a telegram. When is the revocation
If 'A' ties a message containing an offer for 'B' on the body of the parrot who carries
complete:
the message to 'B'. [UPJS 2013]
(i) as against Y and
Q. 33. How can an offer be made, revoked or accepted? What rules apply when an offer t
(ii) as against X. (DJS 2008) made through post or over the telephone? Discuss. [UPJS 201S)
Q. 23. Y revokes his acceptance by telegram. When is the revocation ,t,;-f acceptance complete: Q. 34. A despatches the letter of acceptance to B which B does not receiver when A sues B for
(i) as against Y and enforcement of contract, B contends that there is no contract with A. Decide.
(ii) as against X. [DJS 2008] [UPJS 1999)
Q. 24. Is the normal rule as to postal communications applicable to instantaneous communications Q. 35. A makes an offer to B. B posts a letter to A rejecting the offer but later changes his
uch as telex/fax messages? [DJS 2008) mind. Before rejection letter reaches A, the acceptance telegram of B reaches A. Is there
Q. 25. A has filed a criminal complaint against B for robbery. A and B enter into an agreement a concluded contract between them? Explain when acceptance or rejection of offer is
whereby A agrees to drop the prosecution in return for B's promise to restore the value complete. (DJS 1980)
of the articles taken. Is this agreement enforceable? Why? [DJS 2008)
Contract, Voidable contract and void agreement (Ss.. 10·30)
Q. 26. A enters into a agreement with B promising him to secure a government job for a
consideration of Rs. 1 lakh. ls this agreement enforceable? Why? [DJS 2008] Q. 1. Comment on the following:-
Q. 27. Facts: A, who was in Shimla, m.ade an offer to B residing "at Delhi over telephone for (a) 'An agreement by way of wager is void.
sale of 1000 boxes of apples of 10 Kgs. each at the rate of Rs. 100/- per kg. B accepted the (b) 'Undue influence is perfect or of coercion.
offer. It was agreed between them that 50% of the consideration will be paid in advan ,(c) 'Incapacity to contract does not preclude the capacity for legal rights'. [B&:IlS 1977)
by wire transferring the money to A's account' with his bank in Shimla within 2 d
Q. 2. A deposited goods with B, a warehouseman for sale and custody. B'sservantsubsequentt
The consignment was to reach Delhi most definitely by the end of the following week
delivered them by mistake to C, 8 in ignorance of this fact represented to D, that he
since the season for apples was drawing to a close. A breached the contract inasmuch as
was still in possession of these goods on behalf of A where upon D purchased them
from A and demanded delivery from B. Decide. [B&:JJS 19771
F-10 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract Act F-11
Q, 3. A, a minor fraudulently representing himself to be full age includes B to advance (b) A, a boy of 17 years, was assigned a role in a film by Pa producer. The agreement
Rs. 10,000 on a simple mortgage of A's property X of the value of Rs. 15,000. State was entered into between the father of A and P. P refuses to honour the agreement.
giving reasons whether: Advise A. (B&JJS 19871
(a) A suit by A to set aside the with succeed. Q. 15. "The fundamental principle is that every restraint whether partial or general is contrary
to public and is prima fade void."
(b) B can in way recover from A the whole or any part of the such advanced by him.
[B&JJS 1978] Examine this statement in the light of the Section 27 of the Indian Contract Act, 1872.
IUustrate your answer with the help of case law. (B&JJS 1987I
Q,4. Comment on "Restitution stopped where repayment began. [RJS 1970]
Q. 16. "Two or more persons are said to consent when they agree upon the same thing in the
Q. 5. Discuss the following case:- same sense."
(a) A's Estate is sold for arrears of revenue under the provisions of an Act of the Explain the above statement and state when the consent is not a free consent.
Legislature, by which the defaulter is prohibited from purchasing the estate. B, upon (B&JJS 1991)
an understanding with A becomes the purchaser and agrees to convey the estate to Q. 17. Explain void agreements. Discuss the rules in the Indian Contract Act regarding void
A upon receiving from him the price which B has paid. Discuss the validity of this
agreements. [B&JJS 2000I
agreement. [B&JJS 1978]
Q. 18. Comment on the following:-
Q. 6. Discuss the following case:-
An attempt at deceit which does not deceives is not fraud [B&JJS 2006I
(a) A who owes a money-lender, undertakes to repay him by delivering to him 10
Q. 19. Comment on the folio .ving:-
maunds of grain on a certain date and stipulates that in the event of his not delivering
the stipulated amount by the stipulated date he shall be liable to deliver 20 maunds, Undue influence is a subtle form of coercion [B&JJS 2006I
Discuss the nature of this stipulation and state the extent of the liability of A in case Q. 20. The question whether the contract is void or voidable presupposes the existence of a
of breach of the stipulation. [B&JJS 1978) contract within the meaning of the Act, and cannot arise in the case of an infant. ln this
Q. 7. What do you understand by a Wagering Contract? What are its essentials? Can a context, explain the nature of a minor's agreement and its effectiveness. Can a minor be
wagering contract be enforced in a Court of law? Is a partnership entered into a carry allowed to enforce a contract which is of some benefit to him? Explain. [B&JJS 2011]
on the business of wagering contract valid? [B&JJS 1979] Q. 21. "Agreement in restraint of trade is void". Discuss. (JJS 2001I
Q. 8. 'When an infant obtained an advantage by falsely stating himself to be of full age, equity Q. 22. Define briefly 'consent', 'coercion', 'Undue influence' and 'fraud'. UJS 20011
required him to restore him ill-gotten gains... but scrupulously stopped short of enforcing Q. 23. What do you understand by capacity to contract? Who are competent and who are not
against him a contractual obligation .... Restitution stopped where repayment began.' competent to contract under the Indian Contract Act, 1872? Explain with the help of
Comment on the above statement and point out the Indian position in this regard. suitable examples and relevant case laws. (BJS 20141
~- [B&JJS 1980) Q. 24. Define consideration. Under what circumstances, the object and consideration of a
Q. 9. (a) Write a critical note on 'Unconscionable Bargains'. contract are deemed unlawful? How does the public policy affect the consideration?
Explain with the help of decided cases. (BJS 2014)
(b) Critically examine the statement that the law throws a special cloak of protection
around pardanashin lady. Refer to case law. [B&JJS 1980] Q. 25. What is an agreement by way of wager? What test would you apply to determine if or
not an agreement is by way of wager? Distinguish a wagering agreement from a good
Q. 10. (a) Discuss agreements in restraint of trade with particular reference to agreements contract. (BJS 2014I
between Master and Servant.
Q. 26. A agrees with C to print libellous matter against C and B consideration pays Rs. 500
(b) It is said Public Policy is 'an unruly horse'. [B&JJS 1980] as advance, and promises to pay Rs. 10,000 more after the matter is printed. B claims
Q. 11. Write critical note on Undue influence (B&JJS 1980) back the advance paid. Give correct response. (HJS 1984I
Q. 12. Write critical note on Wagering Agreements [B&JJS 1980, 2000, MPJS 1998) Q. 27. A engaged a Vakil to conduct his case for specified fees. Subsequently A promised to
pay an additional remuneration if the case was to succeed. The case succeeds and the
Q. 13. "Every person is competent to contract who is of the age of majority according to the
Vakil sues A for additional remuneration. What according to you will be' the result of
law of which he is subject.. ... "
this suit? [HJS 19841
Elucidate the above statement. (B&JJS 1984] Q. 28. Critically discuss the following:
Q. 14. (a) Absence of the capacity to contract does not result in the incapacity for legal rights." Consequences of the absence of consent and free consent. [HJS 1999)
Elucidate.

F-12 All States Judicial Service Examination - Unsolved Mains Paper
Q. 29. Explain "Free Consent" according to the Indian Contract Act. [HJS 2000)
Q. 30. Explain clearly the essential elements of "Wagering Contract". How is it different from
speculative transaction? Explain with illustrations. Are both of these valid under the law
of contract? [HJS 2000)
Q. 31. Mention the circumstances in which a contract by a minor is: (i) void, (ii) voidable or
(iii) valid. [HJS 2006)
Q. 32. A promissory note was signed by a minor in consideration of money received by him.
~ On attaining majority, he ratifies that promissory note. Can the creditor enforce it?
[HJS 2006]
Q. 33. Explain, with illustrations, the difference between illegal and void contracts. [HJS 2006]
Q. 34. When is consideration or object of an agreement said to be opposed to public policy?
Mention case law. (HJS 2006)
Q. 35. An agreement is unlawful if the Court regards it as opposed to public policy. In the
light of this statement discuss (i) meaning of public policy and (ii) when an agreement
is said to be against public policy? Whether Courts have evolved any new head of
public policy for giving relief to weaker section of society in standard from contract?
[HJS 2010)
Q. 36. A institutes a prosecution against B for theft of valuable articles but he subsequently
agrees to drop down the prosecution as B promised to restore the articles or the price
thereof in case to A. A drops the prosecution but B fails to fulfil his promise. Has A
any remedy against B? [RJS 1974]
Q. 37. Distinguish between the following giving suitable illustrations.
Coercion and Undue Influence (RJS 1974]
Q. 38. What agreements are void? Discuss the difference between void and voidable agreements.
Where a person receives an advantage under a void agreement, what remedy is open
to the other party? [RJS 1974]
Q. 39. When is a contract concluded? What are the rules as to offer and acceptance? Explain
the difference between an agreement and a contract. What are the essentials of a valid
contract?
In an auction sale, is it always open to the bidder to withdraw his bid before the hammer
falls or before the auction is confirmed? [RJS 1977]
Q. 40. Explain what is a wagering contract? Is a suit maintainable to enforce agreement by way
of wager? Distinguish between a wagering contract from a teji mandi transaction.
Where a suit is brought by a broker or an agent against his principal to receive his
brokerage or commission in respect of wagering transactions entered into by him in
such or for indemnity for losses incurred by him as such transaction on behalf of his
principal, would such collateral agreements be enforceable? [RJS 1977]
Q. 41. "It is an essential condition for challenging a contract on the basis of undue influence
that one of the parties should be in a position to dominate the will of the other."
In the light of the above statement examine the role of 'undue influence' in determining
the validity or otherwise of a contract. [RJS 1979]
Q. 42. When do contracts become voidable? [RJS 1984]
Indian Contract Act F-13
Q. 43. 'A' promises to pay a monthly allowance to a woman kept as a mistress. Whether such
consideration is lawful? (RJS 1986)
'A' promises to obtain for 'B' an employment in the public service and 'B' promises to
Q. 44.
pay 1,000 rupees to 'A'. Can such contract be enforced? [RJS 1986)
Q. 45. Distinguish between 'Coercion' and 'Undue Influence'. [RJS 1988]
Q. 46. What do you understand by coercion? [RJS 1991]
Q. 47. Is a contract valid without free consent? [RJS 1991]
Q. 48. 'Minor's agreements is void'. Explain it with exceptions. [RJS 1999)
Q. 49. Define a 'consent' under the Indian Contract Act, 1872. (RJS 2011]
Q. so. What objects are unlawful under the Indian Contract Act, 1872? (RJS 2011]
Q. 51. B is A's daughter and has just come to age. A sells to B a horse which A knows to be
unsound. A says nothing to B about the horse's unsoundness. Does A's silence amount
to a fraud? If so why? If not, why not? (DJS 1990]
Q. 52. A, a Doctor, employed another Doctor B, as assistant for a period of 3 years on a salary of
Rs. 3000/- per mensum. There was an agreement between A and B which provided that
after the termination of his employment B shall not practice as a Doctor within a radius
of 3 kms of A's dispensary for a period of three years and if B did so, B should pay
Rs. 50,000 as 'liquidated damages.' Immediately after the termination of his employment,
B started his practice as a Doctor next to A's dispensary. A, thereupon sued B for the
recovery of Rs. 50,000. [DJS 1991]
Q, 53. Free consent is an essential element of contract. Discuss whether the contract entered
upon with the consent which is not free is void or voidable? [DJS 1996]
Q. 54. A applies to a banker for loan when there is stringency in the money market. The banker
declines to make the loan except at unusual high rate of interest. A accepts the loan on
the terms of high rate of interest. Can A refuse to pay high rate of interest taking the
plea of undue influence? Discuss. (DJS 1996)
Q. 55. A, a minor having well built body and quite tall falsely represented his age and obtained
a Joan of Rs. 10,000 and spent the loan amount for his luxuries. The money lender filed
a suit for recovery of money on contract and also in the alternative asked for damages
arising out of tort of deceit committed by A. Can A be held liable either on contract or
in torts? Discuss. [DJS 1996]
Q. 56. What are the essentials of a valid contract under Indian Contract Act? [DJS 1999)
Q. 57. X, a leading manufacturer of sports goods appoints Y as his distributor for Delhi.
According to the agreement Y cannot sell sports goods including sports shoes and
apparel in Delhi during the subsistence of agreement. Is this condition valid. Discuss?
[DJS 1999]
Q. 58. Section 27 of the Indian Contract Act provides that an agreement by which any one is
restrained from exercising a lawful profession, trade or business of any kind, is void to
that extent.
In a given case, landlord is the owner of shop running a Sophisticated Cosmetic Hair
Dressing Saloon in Delhi. He gives on rent and said shop with the said business along
with all tools, machinery, plants, fans, air-conditioners, telephone, furniture and other
I
 F-14 All States f udicia/ Sero ice Examination - Unsolved Mains Paper
equipment, to a tenant with the stipulation that the tenant shali do the said business
only under said particular name and style.
Is this agreement of lease hit by section 27 of the Indian Contract Act? Decide.
(DJS 2000)
Q, 59. Tony borrowed a sum of Rs. 5000/- from John in order to bet with Mahesh as to result
of a cricket match. The betting on a cricket match is not authorized by law. Tony lost bet
to Mahesh. Tony neither paid a sum of Rs. 5000/- to Mahesh nor returned Rs. 5000/- to
John. Mahesh and John initiated legal remedies against Tony separately for recovery of
Rs. 5000/-. Decide. [DJS 2005]
Q. 60. A is a manufacturer and supplier of stones having its registered office at Ajmer and
Rajasthan, while B is registered partnership firm doing business in stones at Ambala.
A entered into an agreement with B on 6.7.2006 wherein A was to supply 200 pieces of
costly stones to B with stipulations, inter-alia, as follows:
"Any dispute arising out of this sale shall be subject to Courts jurisdiction either at
Ambala or Delhi".
Subsequently, disputes having arisen out of the contract, B being permanent resident
of Delhi filed a suit at Delhi for recovery of some damages and money claiming to be
refund of advance money. Now decide about the issue of jurisdiction alongwith the
validity of the contract with case law.
Q. 61. "The law may refuse to give effect to a contract on the ground of illegality; this is a
limitation upon freedom of contract", Comment [DJS 2007)
Q. 62. Kanika agreed to sell a plot of land measuring 200 sq. yards to Pradeep for a consideration
of rupees ten lakhs by an agreement 'X' executed on 01.01.2000. The agreement begins
as "Agreement for Sale between Kanika and Pradeep" and ends "in witness whereof
the parties have hereunto set and subscribed their respective hands and seals on these
presents". On that very day a sum of rupees one lakh is paid as earnest money for
which a separate receipt is executed and signed by Kanika. The sale was to be completed
within a period of six months after obtaining all clearances from the DDA. A further
sum of rupees one lakh was paid on 02.02.2000 and an endorsement was made on the
earlier receipt. Kanika refused to execute the sale deed and denies the agreement 'X'. She
says that her signatures were obtained on a blank paper. 'X' does not bear signatures
of Pradeep. Kanika pleaded that since 'X' was not signed by Pradeep there was no
concluded contract between the parties. Though the receipts for rupees two lakhs were
denied, but the same were proved. Kanika was unable to prove the circumstances under
which she signed a blank paper. A suit is filed by Pradeep for specific performance of
the contract.
Whether the agreement is valid and binding? Decide and write a judgment with case
law, if any. [DJS 2011]
Q. 63. A promissory note was signed by a minor for consideration· received by him. On attaining
majority, he ratifies that promissory note. Can the creditor enforce it?
Explain. [DJS 2011)
Q. 64. Whether an agreement can be void ab initio? Explain with example. (MPJS 1996)
Q. 65. Which agreements are contract? Explain. When consent is called free consent? Explain
with essential elements. [MPJS 1998)
Indian Contract Act F-15
Q. 66. Whether the following agreements are void or they are voidable?
(a) An agreement in which considerations and objects are unlawful in part.
(b) An agreement in restraint of marriage.
(c) An agreement, the meaning of which is not clear.
(d) When consent to an agreement is caused by coercion. [MPJS 2001]
Q. 67. What considerations and objects are unlawful? (MPJS 2004)
Q. 68. Explain Free Consent. (UPJS 1986, MPJS 2007]
Q. 69. Explain undue influence by giving four illustrations. (MPJS 2007)
J. 70. "A deceit which does not deceive is not fraud. Discuss. (MPJS 2009)
Q. 71. What is consideration? Discuss what considerations and objects of an agreement are
lawful, and what not? (MPJS 2011}
Q. 72. Define 'free consent' and explain 'coercion' and 'undue influence'. (MPJS 20U)
Q, 73. Define Misrepresentation. Describe the effect of a contract entered into on
misrepresentation. How the effect differs from an agreement where both parties are
under a mistake of fact as well of mistake as to law? [MPJS 2013]
Q. 74. Whether minors are incapable to contract? Can a minor's contract be specifically
enforced? (MPJS 2013)
Q. 75. What is voidable contract? Describe the distinction between voidable contracts and
contingent contracts. (MPJS 2014)
Q. 76. Distinguish the following-
Fraud and misrepresentation (UPJS 1982, 1983)
Q. 77. What do you understand by a wagering contract? What are its essentials?
Can a wagering contract be enforced in a Court of Law? Is a partnership entered into
to carry on business of wagering contracts valid? (UPJS 1982]
Q. 78. Distinguish between any three of the following-
Void and Voidatle contracts (UPJS 1983)
Q. 79. During his serious illness High Court employee Sri J.R. Bhatia who was working under
the Deputy Registrar proceeded on a month's medical leave but could not become fit
and he applied for extending the leave by 24 months 9 days on medical advice. The
Deputy Registrar procrastinated and then asked the plaintiff to give an undertaking in
writing that he shall not join his duty on the expiry of his leave. Thus compelled the
plaintiff gave the undertaking and on that basis the plaintiff was not allowed to join. The
plaintiff claimed declaration that he be treated on duty as before since the undertaking
was against his wish. If he is entitled to any reliefthen give reasons in support of your
answer. [UPJS 1986)
Q. 80. "The Distinction between 'void' and 'illegal'. Agreements under Indian Contract Act is
clear and logical." Explain referring to the provisions of the Act. [UPJS 1987)
Q. 81. Explain clearly the essentials elements of 'wagering contract.' How is it different from
speculative transactions? Explain with illustrations. Are both of these valid under the
law of contract? (UPJS 1987)
 Indian Contract Act F-17
F-16 All States Judicial Service Examination - Unsolved Mains Paper
had actually passed at the time of registration of sale deed. In these circumstances, 'A'
Q. 82. (a) All contracts are agreements, but all agreements are not contracts. What conditions
can be said to have discharged the onus of proof that the sale transaction was vitiated
have been laid down in the Indian Contract Act, for an agreement to become a
because of undue influence? How would you decide the question of onus of proof in
contract? [UPJS 1992)
these circumstances? [DJS 1996)
(b) A owes Rs. 2,000 to B but the debt is barred by Limitation Act. A signs a written
promise to pay B Rs. 1,000 on account of debt. Is it a valid contract? Refer to relevant Effect of Mistake of Facts (Ss. 20-21)
provision of the Contract Act. [UPJS 1992) Q. 1. "Mistake in the formation of contracts may be common; mutual or unilateral". Discuss
Q. 83. Write short note on:- this statement, and explain briefly the cases where such mistakes may avoid the
All contracts are agreements but all agreements are not contracts. [UPJS 1997) contract. [B&:JJS 2006]
Q. 84. (a) What do you mean by 'Consideration'? Is an agreement made without consideration Agreement without consideration (S. 25)
valid?
Q. 1. (a) Make a careful appraisal of the full import of the Doctrine of Consideration in the
(b) With a view to get rid of each other's quarrelling nature, both husband and wife law of Contract and deal with its nature and importance. Refer to at least two leading
entered into an agreement in which wife agrees to live separate from her husband cases on the subject.
permanently and husband agree to pay her a monthly; maintenance allowance of
(b) X, the only son of Z, fell into a pond and Y rescued him. Z, in gratitude, made
Rs. 500/- After six months husband refuses to pay the allowance. Can wife enforce on oral promise to pay Y Rs. 2,000. Z died before marking any payment. Y claims
the agreement against her husband in the court' of law? Decide. [UPJS 1997)
Rs. 2,000 from X. Will Y succeed? [B&:JJS 19791
Q. 85. What are consequence if (i) consent could not be obtained due to mistake and (ii) consent
Q. 2. "Though consideration need not be adequate, it must be real It must be something
is obtained by mistake? [UPJS 1999)
which is of some value in the eye of the law."
Q. 86. 'A' promise to obtain employment for 'B' in the public service, and 'B' promises to pay
Briefly examine the above statement. Give decided cases in support of your answer.
Rs. 10,000/- to 'A'. Examine the legality of these agreements. [UPJS 2000)
[B&:JJS 1984]
Q. 87. Solve of the following problem:-
Q. 3. An agreement without consideration is void. Discuss the above statement. What is the
, A' 'C' and 'D' enter into an agreement for division of gains acquired or to be acquired effect of inadequacy of consideration on the validity of the contract? P, a minor, was
by them fraud. A acquired gains by fraud and did not give any share to 'C' and 'D'. allotted the role of an actress in a particular film by D, a film producer. The agreement
Can 'C' and 'D' file a suit against 'A' for division of the gains? [UPJS 2000] was made with her father. D subsequently allotted that role to another artist and
Q, 88. Solve the following problem: terminated the contract with her father. Can P or her father sue D? [B&:JJS 1986)
'A' promises to drop a prosecution, which he has instituted against 'B' for robbery Q. 4. "Inadequacy of consideration is immaterial, but its absence is fatal to the validity of a
and 'B' promises to restore the value of the thing taken. Is the agreement valid? contract." Comment. (B&JJS 19e71
[UPJS 2003] Q. 5. "An agreement without consideration is void". Explain this rule and state the exceptions,
Q. 89. "Consent is said to be free when it is not caused by coercion or undue influence or if any. (B&JJS 1991, 2000, UPJS 2012)
fraud or misrepresentation or mistake". Discuss with reference to provisions of Section Q. 6. 'A' out of natural love and affection promises to pay his son Rs. 10,000. He puts promise
14 to 22 of the Indian Contract Act, 1872. [RJS 2015) in writing and registers it. How far is the contract valid? IDS 20141
Voidable Contract (Ss. 19-19A) Q. 7. "An agreement without consideration is void." Explain the rule and\ point out its
Q. 1. Discuss the following case:- exceptions. UJS 2014]
A applies to a Banker for a loan at a time when there is stringency in the money market. Q. 8. Discuss the Doctrine of 'Consideration' under the Indian Contract Act. [HJS 2000)
The Banker declines to make the loan except at an unusually high rate of interest. A Q. 9. 'A' owes Rs. 2,000/- to 'B' but the debt is barred by Limitation Act, 'A' signs a written
accepts the loan on these terms. ls this contract induced by undue influence. [B&JJS promise to pay 'B' Rs. 1,000/- on account of debt. Is it a valid contract? Refer relevant
1978] provision of the Contract Act. [HJS 2000]
Q. 2. A filed a suit against her maternal uncle B seeking partition of her share in land Q. 10. How far is it true that an agreement without consideration is void? [HJS 2000, 2003)
measuring about 24 acres left behind by A's father. B resisted the suit on the ground Q. 11. What is the relevance of consideration to the validity and performance of a contract?
that A's mother who was old, blind, tribal woman, and was living with B had executed Indicate the different types of considerations supported by instances. In what
a sale deed in favour of 'B'. A challenged the sale on the ground that it was obtained circumstances can a valid agreement be made without consideration. [RJS 19~1)
by exercising undue influence on her mother, who was blind, illiterate, tribal woman
living at the mercy of B till her death. B led no evidence to show that any consideration Q. 12. Can a contract be made without consideration? If so, when? [RJS 19911
F-18 All States Judicial Service Examination - Unsolved Mains Paper
Q, 13. An administrator of estate agreed to pay X his share of the estate if X would give a
promissory note for portion of a time barred debt claimed by A from him. X executed
a promissory note in favour of A, gave it to administrator and received his share of
estate. A sued X on the promissory note. X pleads it was without consideration. Who
wiII succeed? Decide. [DJS 1996]
Q. 14. What are the essential requirements of Consideration under Indian Contract Act?
Is an agreement without consideration void? Are there some exceptions to this general
Rule?
Please Discuss. [DJS 2000)
Q. 15. Define consideration and state the circumstances in which an agreement made without
consideration is valid. Explain with an illustration. [UPJS 1992)
Q, 16. "Subject to certain exceptions, an agreement without consideration is 'nudurn pactum'
and is also void." Discuss. [UPJS 2006)
Q. 17. "An agreement without consideration is void." What are the exceptions to this rule?
Discuss.
A owes Rs. 10,000 to B but the debt is barred by the Limitation Act. A signs a written
promise to pay B Rs. 5,000 on account of debt. Is it valid contract? Refer to relevant
provision of the Contract Act. [UPJS 2016)
Agreement in restraint of trade, void (S. 27)
Q.1. 'Every agreement by which any one is restrained from exercising a lawful profession,
trade or business of any kind is to that extent void'. Appraise. [B&:JJS 1977)
Q. 2. 'An agreement in restraint of trade is void'. Discuss, are there any exceptions to this
rule? [HJS 1984)
Q. 3. Discuss the law relating to Contracts in restraint of trade in India and compare it with
the English law on the subject.
A firm of lawyers in Delhi when employing a young advocate B asks him to execute
an agreement undertaking not to practice as an advocate in Delhi for all his life. Is this
agreement binding? Decide giving reasons and citing decided cases. [RJS 1970)
Q.4. "Agreements in restraint of trade are void." Discuss the law in India and compare it
with the English law on the subject. What are the exceptions to the above rule, if any?
[RJS 1974)
Q. s. 'A', a Doctor, employed another Doctor 'B' as assistant for a period of 3 years on a salary
of Rs. 3,000/- per mensum. There was an agreement between 'A' & 'B' which provided
that after the termination of his employment, 'B' shall not practise as a Doctor within
a radius of 3 kms. of 'A's dispensary for a period of three years and if 'B' did so, 'B'
should pay Rs. 50,000/· as liquidated damages. immediately after the termination of his
employment, 'B' started his practice as a Doctor next to A' dispensary. 'A', thereupon,
sued 'B' for the recovery of Rs. 50,000/-. Decide. [DJS 2007)
Q. 6. Neha, a software programmer, takes up employment with Macro ware Ltd., a large,
software development company. Her contract of employment includes the following
two clauses:
Indian Contract Act P-19
(i) During the course of her employment with Macroware Ltd., Neha shall not take up
any other employment or indulge in software development for third parties.
(ii) In the event of the termination of the contract of employment, for whatever reason ,
Neha shall not, for a period of three (3) years thereafter, compete directly or indirectly
with Macroware Ltd. or take up employment as a software programmer with any
competitor of Macroware Ltd.
(a) Would these causes be enforceable in a court of law? Discuss
(b) Let us assume that Neha, instead of taking up employment with Macroware Ltd,
entered into a partnership with two other programmers Amit and Salma and set
up the firm NASware. Assume further that after two years, Neha retires from the
partnership which continues with Amil and Sauna as its partners. While retiring from
the firm, Neha is paid whatever is due to he; from the partnership and, additionally,
she is also paid an amount of Rs. 25 lakhs for agreeing to give up any claim to the
name NASware and the bundle of benefits associated with it. Despite this, Neha
starts a sole proprietorship concern using the same name NASware.
Is Neha legally entitled to do so? Discuss. [DJS 2008)
Q, 7. Write Short note on:
Contract in restraint of trade. [DJS 2014)
Agreement in Restraint of Legal Proceeding, Void (S. 28)
Q, 1. "Every agreement, by which any party thereto is restricted absolutely from enforcing his
rights under or in respect of any contract, by the usual legal proceedings in the ordinary
tribunals, or which limits the time within which he may thus enforce his rights is, void
to that extent."
Examine this statement in the light of Section 28 of the Indian Contract Act, 1872.
Illustrate your answer with the help of case law. [B&cflS 1991)
Q,2. A wife filed a complaint against her husband and in-laws under Section 498-A and
406 IPC. 1n those proceedings, a compromise was arrived at as per which the husband
agreed lo pay a sum of Rs. 25 lacs lo his wife in full and final settlement of her claims
towards stridhan, dowry, etc. Parties also agreed lo take divorce by mutual consent. Wife
also agreed in the said compromise that she will not claim any maintenance from her
husband. Decree of divorce by mutual consent was obtained by the parties. Husband
also made a payment of Rs. 25 lacs. Thereafter, wife filed a petition for maintenance
under Section 18 of the Hindu Adoptions & Maintenance Act, 1956. The husband took
the plea that wife was precluded from filing such a petition in view of the settlement
between the parties. The contention of the wife was that there was a statutory right
given to her lo claim maintenance and agreement in question was against the public
policy.
How will you decide the issue? [DJS 2007]
Contingent Contract (Ss. 31-36)
Q. 1. Write short note on the following:
Contingent contracts [RJS 1986, 1999, JJS 2001, MPJS 20011
F-20 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract Act F-21
Q.2. A pays B Rs. 5,000 in consideration of B promising to marry A's daughter C. C is dead
Q. 4. Write short notes on:-
at the time of the promise. Whether B is liable to refund the amount to A? (HJS 1984)
Doctrine of fundamental breach, [UPJS 1991]
Q. 3. Discuss law relating to "contingent contracts". Ram agreed to pay a sum of Rs. 5000/-
to Shyam if Shyam marries Rekha. However, Rekha married Sohan. Sohan died in an Q. s. Explain with illustration 'Anticipatory breach of contract.' What is the measure in cases
accident. Thereafter, Shyam married Rekha. Shyam filed a suit for recovery of Rs. 5000/- of such breach? [UPJS 2003)
against Ram. Decide. [DJS 2005) Q. 6. What do you understand by anticipatory breach of contract?
Q.4. Define- M/ s XYZ Textile enters into a contract with ABC Garment Showroom for supply of 100)
Contract of indemnity [MPJS 2001] pieces of cotton shirts at Rs. 400 per shirt to be supplied on or before 31st December,
2015. Later on, on 1st November, 2015 XYZ Textile informs ABC Garment Showroom
Q. s. A contracts to pay Rs. 10,000 to B if B's house is burnt. House of B is burnt. Can B
that they will not supply the shirts. Discuss the remedies available to ABC Garment
recover Rs. 10,000 from A? Is it a wagering agreement? i[UPJS 2016]
Showroom. (UPJS 2016)
Performance of Contract (Ss. 37-67) By whom contract must be performed (Ss. 40-45)
Q. 1. Discuss fully the provisions in the Indian Contract Act regarding performance of a Q. 1. What is the law relating to performance of contract by joint promisors under the Indian
contract. [B&JJS 2000] Contract Act, 1872? [RJS 2014]:
Q. 2. Discuss fundamental breach of contract. [HJS 1988] Q. 2.. Naresh engaged Mr. Vinay a well known painter to paint a picture depicting particular
Q. 3. A, a singer contracts with B, the manager of a theatre for two nights in every week design for him. Naresh agreed to pay a sum of Rs. 10,000/- as professional charges to
during the next two months. B agreed to pay A Rs.500 /- for every night. On the sixth Mr. Vinay. After completion of work, it was revealed that an assistant of Mr. Vinay
night A willfull y absents from the theatre and B, in consequence rescinds the contract. painted the picture but under guidance and supervision of Mr. Vinay. Naresh refused
Are A and B entitled to claim any compensation? lf so, for what? And under what to pay professional charges as per agreement. Mr. Vinay filed a suit for recovery of
provisions of law? [HJS 1998) Rs. 10,000/- in civil court. Decide. [DJS 1005)
Q.4. What is meant by offer of performance or tender? What conditions must be fulfilled to
make it a valid tender? What are the incidents? (RJS 1969] Time and place of performance of contract (Ss. 46-50)
Q. 1. A agreed to sell to B a thresher by 5th of August, 1998 as it was required by B for his
Contract which must be performed (Ss. 37-39) wheat crop. A repeatedly assured B that delivery would be made within stipulated
Q. 1. "The parties to a Contract must either perform, or offer to perform their respective time. A failed to deliver machine by the agreed date upon which B tried his best to get
promises, unless such performance is dispensed with or excused under the provisions one from market but he could not. Rains come around 20th of August, 1998 damaging
of this Act (Indian Contract Act, 1872) or of any other law." stocked wheat in the field of B. B sued A for damages on account of damage to the
Explain the above statement in the light of the provisions of the Act relating to crop due to rain, stacking charges and loss due to fall in prices. Decide. [DJS 1999)
performance of contracts. [B&JJS 1991] Q. 2. "Time is the essence of the contract" Discuss. What would be the effect of breach of
Q, 2. A promises to paint a picture for B by a certain day at a certain price A died before the covenant as to time? [MPJS 2015]
day. Whether the contract can be enforced against A's representatives? [HJS 1984]
Performance of reciprocal promises (Ss. 51-58)
Anticipatory breach of contract (S. 39) Q. 1. Decide the following problem on the basis of decided cases:
Q. 1. (a) 'A contract is a contract from the date it is made and not from the date on which it
performance is due'. Discuss with reference to statutory provisions and case Jaw. A and B contract to marry each other. Before the time fixed for the marriage, A goes
mad. Test the validity of contract. [BJS 2014)
(b) A a singer, contracts with B, the manager of the theatre, to sing at his theatre for
Q.2. A, B and C are partners in a firm. C retires from firm under agreement with A and B
two nights in every week during the rest two months and B engages to pay for
hundred rupees for each night's performance. On the sixth night A wilfully absents that all assets and liabilities of the firm will be that of A and B. D, a creditor of firm
herself from the theatre and B in consequence rescinds the contract. A sues B for th sues A, Band C. C refers to agreement with A and Band denies liability to D. Discuss
breach. Discuss the liability of B. [B&JJS 1977] the liability of C. [DJS 1980)
Q. 2. Write critical note on: Frustration of contract (S. 56)
Anticipatory breach of contract [B&cUS 1978, 1980, 2000) Q. 1. Write critical note on:
Q. 3. What do you understand by Anticipatory Breach of ontract? What are the rights of Doctrine of frustration, giving two Illustrations under each of th
the parties in such a Contract? (B&JJS 19791 [B&JJS 1978, UPJS 1986, HJS 21
 F-22 All States Judicial Service Examination - Unsolved Mains Paper
Q.2. "The essential idea upon which the doctrine of Frustration is based is that of impossibility
of performance of the contract, in fact impossibility and frustration are often used as
interchangeable expression." Discuss A Person entered into service as manager for ten
years and undertook not to take up any professional engagement without the consent
of the employer. Before the expiry of ten years he was called up for military service.
Aller the war he undertook professional engagements and was sued by the employers
for breach of contract. Is he liable? [B&JJS 1986)
Q. 3. "The sanctity of a contract is the foundation of the law of conn-act and the doctrine
of impossibility cannot be permitted to become a device for aestroying this sanctity".
Discuss the implications of this statement. [B&JJS 2006)
Q. 4. "An agreement to do an act impossible in itself is void." Referring this statement, explain
the 'doctrine of frustration' and the specific grounds of frustration. [B&JJS 2011)
Q, s. Write short note on Doctrine of frustration in contract UJS 2001)
Q. 6. A, a female singer agreed to sing in the theatre of B for two days in September, 1984.
One day before the programme was scheduled, she attended a party and took lot of
ice-cream. The result was that her voice was cracked and she was unable to sing on the
days agreed upon in B's theatre. B sued A for damages. Can B succeed? [HJS 1986)
Q. 7. An electrical company entered into a contract with a fertilizer company for supply
of transformers, the price to be firm there being no provision for escalation in price.
Subsequently, due to a hike in petroleum prices, the prices of transformer oil, an essential
ingredient, of a transformer, were increased by 400%. Can the supplier back out of
the contract on this ground? Discuss with reference to the relevant provisions of law.
[HJS 1999)
Q. 8. 'A' made a contract in the month of June 1985 with 'B' for supplying a machine for
Twenty Thousand Rupees by December 1985. The company which manufactured such
machine temporarily stopped the· production in the month of November 1985 but the
machine available in black in market for Sixty Thousand Rupees. Can 'A' rescind this
contract? Explain. [HJS 2000)
Q. 9. What is meant by 'frustration of contract'? What arc the prerequisites for excusing parties
from performing the contract on the ground of frustration?
X contracts to sell 7 acres of land to Y for Rs. 7 lacs. V pays Rs. 2 lacs as advance money.
Subsequently, X refused to comply with the contract on the ground that out of these 7
acres of land 2 acres belonged to his brothers and the contract has become impossible
to be fulfilled. Decide [HJS 2007)
Q. 10. What is the doctrine of frustration of contract? Where the supervening event making
performance impossible, was in the contemplation of the contracting parties where
the contract was made, would performance or further performance of the promise
be excused? Where performance of contract after it is made becomes impossible, will
the party who has received any benefit under it, be bound to restore it to the other
party? [RJS 1977)
Q. 11, What do you know about the 'Doctrine of frustration of contract'?
[RJS 1994, UPJS 2000)
Q. 12. A partnership deed dated 14.1.1940 executed between "A" and "8" contained interlia,
following two terms also:
Indian Contract Act F-23
(i) The rent of the shop in tenancy of "A" will be paid by partnership and the shop
will be used for business of partnership.
(ii) Al the time of dissolution of the firm, 'A' will be credited with a sum of Rs. 50,000/-
as consideration of goodwill including tenancy rights in the shop and the goodwill
including tenancy rights in shop would be taken over by "8".
On dissolution of partnership in 1960, "A" claimed in a suit that he continues to be the
tenant in the shop and clause (ii) is illegal in view of the provisions of Section 16(3) of
The Delhi Rent Control Act, 1958 read with Section 56 of The Contract Act. 'B' contested
the plea of' A' pleading that clause (ii) is valid as The Delhi Rent Control Act was not
in force at the time the partnership deed was executed. Decide the case giving reasons.
[DJS 1984)
Q.13. Haryana Oil Mills is engaged in the business of manufacture of vanaspati. For their
raw material, they are allocated vegetable oil by Government of India up lo certain
percentage. Oil is supplied by SfC, which imports the same from foreign countries. The
Mill was allocated 300 MT of oil at the issue price of Rs. 8,000/- P.M.T. The Mill paid
the entire price for 300 MT and were issued 3 separate delivery orders dated 15.01.1993,
15.02.1993 and 15.03.1993. All these orders had an endorsement regarding price to be
charged as on date of delivery after the measurements are taken, since the oil was to be
taken out of large containers and then supplied to buyer. The Mill had taken delivery of
200 MT. But when they went to take delivery of 3rd installment by then prices had been
revised to Rs. 10,000/- P.M.T. src claimed difference in price. Haryana Mills refused
to pay as they pleaded that they had already made the lull payment for 300 MT and
are not liable to pay enhanced price. Discuss their rights and obligations. Whether STC
could refuse to deliver remaining 100 MT vegetable oil at pre-revised price. [DJS 19961
Q. 14. 'A' in Delhi entered into a contract with 'B' in Mumbai on 01.12.2015 as per which
'A' had lo supply 100 metres of jute material al controlled price to '8'. There was a
term in the contract stating "I (' A') shall go on supplying jute material to you ('B') of
The Jute Mills Calcutta as soon as they are supplied to me by the said mills." 'B' gave
Rs. 10,000 to 'A' as earnest money. The Jule Mills Calcutta shut down on 05.121015
because of losses and' A' did not supply jute material to 'B'. 'B' in tum failed to perform
his contract with 'C' of supplying stitched jute bags to 'C'. 'B' files a suit for damages
and return of earnest money against' A'. 'A' pleads frustration of contract and also that
he was not aware of the contract between '8' and 'C'. Decide.
Also discuss with reference to precedents specific grounds of impossibility which are
recognized and not recognised in Indian law. [DJS 2015]
Q, IS. Write short note on Doctrine of frustration. [UPJS 1984]
Q. 16. A made a contract in the month of June 1985 with B for supplying a machine for Twenty
Thousand Rupees by December 1985. The company which manufactured such machines
temporarily stopped the production in the month of November 1985, but the machine
is available in black market for Sixty Thousand Rupees. Can A resend this contract?
Explain. [UPJS 19851
Q. 17, The defendant Ram Charan Ram Gopal entered into 5 contracts with the plaintiff under
which it undertook to supply to the plaintiff 184 bales of specified cloth manufactured by
the New Victoria Mills Kanpur and Raza Textille Mills Kanpur as soon as prepared by
F-24 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract Act F-25
the Mills. There was no clause in the agreements that the supply would depend on the make good to X. On the other hand he demands the retum of Rs. 500 already paid by
delivery of the goods from the Mills. When the remaining 61 baies were not supplied, him contending that the whole agreement was uniawful. Decide. [B&JJS 1979)
the plaintiff gave notice but the defendant failed to reply and did not even suppiy the
Q. 4. What do you understand by Quasi Contract? What are its distinctive features? What
goods. The main piea in the suit was that the goods were not delivered by the Mills is juridical basis of quasi contract? Explain with the help of illustrations and decided
and the performance of the contract was not possible due to circumstances beyond it
cases. [BJS 2014)
control.
Q. 5. Decide the following problem on the basis of decided cases:
(a) Write down your doctrine giving reasons.
A supplies B a lunatic with necessaries suited lo his conditions in life. Is A entitled to
(b) Explain 'the doctrine of frustration' according to the contract Act giving two proper
illustrations. [UPJS 1988) be paid for? Give reasons. [BJS 2014)
Q. 6. A is a teacher in a degree college and B is his wife. A goes to Germany on study leave
Q. 18. "Initial impossibility renders an agreement void and subsequent impossibility renders
for one year. In A's absence B maintains herself with the money sent by A. On limes
a contract void." Discuss with reference lo the provision of Indian Contract Act, 1872
when there is delay in the arrival of money she takes goods on credit and pays alter
and decided cases. [UPJS 1999)
she gets the money. Thus once she purchased on credit one maund of rice, four sarees,
Q. 19. "The sanctity of a contract is the foundation of the law of contract and the doctrine and one gold necklace. Fifteen days after this A came back. Of which of these goods A
of impossibility cannot be permitted to become a device for destroying this sanctity." is bound to pay the price? [HJS 1988)
Explain this statement. [UPJS 20151
Q. 7. "A quasi-contract has no a/linity with contract but rests on the equitable principle that
Appropriation of payments (Ss. 59-61) a person shall not he allowed to enrich himself at the expense of another". Explain by
Q. 1. B, a tenant owes rent for the month of January, February, March and April. He sends, giving suitable illustrations. [HJS 2009]
the amount of rent for the month of March. [B&JJS 1977 1 Q. 8. Write the short note Oil Unjust enrichment [HJS 2011)
Q. 2. Write short note on Appropriation of payments. [)JS 2001) Q. 9. A maintains the child of Band B promises lo pay A Rs. 500/· per month for the purpose.
The child is maintained by A for one year but B fails to make payment. Is the contract
Contract which need not be performed (Ss. 62-67) enforceable in law? State your reasons. [RJS 1974)
Q, 1. Critically discuss the Novation and accord and satisfaction. [HJS 1999) Q. 10. What are quasi-contracts and are they enforceable at law? Discuss the doctrine of unjust
Q. 2. Yamuna Developers Pvt. Ltd. (YDPL} contracted with Jaipur Tiles Ltd. UTL) for supplying enrichment.
various kinds of tiles to its Green Valley Project with actual cost of Rs. 50,00,000. )TL A contract for sale of immoveable property was entered into by A in favour of B. B
fulfilled its own part but YDPL had paid only Rs. 20,00,000. After one year, )TL agreed entered into a contract for sub-sale with C. A defaulted in payment of taxes with regard
to accept Rs. 20,00,000 in satisfaction of its claim of Rs. 30,00,000. Later on )TL flied a to the said property and C made the payment of outstanding taxes. Who is entitled to
suit for the enforcement of contractual obligation. Decide the case on the basis of relevant reimbursement from A, either B or C or both? [RJS 1975)
legal provisions and case law. [HJS 2011) Q. 11. Write short note on Quasi Contract. [RJS 1976)
Q. 3. What is novation of a contract? [RJS 19911 Q. 12. Explain the role of obligation of person enjoying benelit of non-gratutious act.
Q. 4. Doctrine of Quantum merit. [B&JJS 2000] [RJS 1986]
Q. 5. Distinguish between "quantum Meruit" and "Claim for Damages". [DJS 19991 Q.13. Which are the provisions of the Indian Contract Act, 1872 whereunder "Quasi
Quasi Contract (Ss. 68-72) Contractual" relations are recognised? IRJS 2014)
Q.14. A finds a gold ring, makes all reasonable efforts but fails to discover owner. He sells
Q. 1. A quasi-contract is not a contract al all. It is an obligation which law creates. Amplify
and indicate the quasi-contracts recognised by the Indian Contract Act. [B&JJS 1977) the ring lo B who does not know that A is only a finder of ring. True owner C claims
I
ring. Decide. (DJS 1980)
Q. 2. Specify the grounds on the basis of wrnch you may justify the restitution of money Q, 15. A, legal guardian of a minor son, for minor's education, obtains money from B and
received wrongly or unjustly. What are the provision of the Indian Contract Act on this
point? Refer to case-law in answering the question. [B&JJS 19781 agrees lo transfer a part of minor son's immovable property to B. The minor son cannot
himself enter into a contract for sale of his property. Can contract of sale entered into
Q. 3. X holds land in Bihar on a lease granted by Z, the landlord. The revenue payable by Z
by A be gol specifically enforced by B by action at law. Decide. (DJS 1980)
lo the Government being in arrear, the land is advertised for sale by the Government.
Q, 16. 'A' an industrial fell into bad times and could not pay Municipal tax of Rs. 2 lakhs due
Under the revenue law, the consequence of such sale, will be annulment of the lease
of X. X, to prevent the sale, pays the Government the sum due from Z. Is Z liable to to his Cotton Mill. He leased the Cotton Mill to 'B' without paying over due Municipal
taxes. 'B' paid the taxes to save the property from being sold. Can 'B' recover the tax
amount from 'A'? Decide with reasons. (DJS 2006)
F-26 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract .A.ct
Q. 17. 'A' is tenant under 'B' on an agricultural land. 'B' was in arrears of land revenue payable Q. 7, Discuss the principles on which the court would award damages for breach of
to the Government. The land is put to sale by the Government. Consequent upon sale contract. [HJS 2003}
taking place, lease in favour of 'A' was liable to be annulled under Revenue Laws.
In order to avoid the land being put to sale, 'A' pays land revenue arrears to the
Q. s. 'P' carried on an extensive business as millers. His mill was stopped by a breakage of
Government. Can 'A' recover the amount from 'B'?
the Crankshaft by which the mill was worked. 'D' was engaged to carry the shaft to the
manufacturers. P's servant told 'D' that the mill was stopped and that the shaft must be
Discuss. (DJS 2011] 1
sent immediately. But 'D' delayed delivery resulting into heavy loss to P'. The action
Q. 18. Enumerate and explain briefly those relations in the Act which resemble those created was brought for the loss of profits which would have been made during the period of
by contract. [MPJS 2009) delay. Decide and refer to relevant judicial pronouncements. (HJS 2003]~
Q. 19. Write short notes on Novation of contract (MPJS 201.0) Q. 9. A company agreed to supply one thousand blankets to X by a particular date. Rupees
Q. 20. Define novation, rescission and alteration of contract and also describe effect of novation, 10,000 /-were paid as an advance to the company by X. Before the due date of performance
rescission and alteration of contract? (MPJS 2014) of the contract, the company informed X that it would not supply blankets on due date
Q. 21. "Payment received by mistake must be refunded." Discuss with reference to decided and that he should treat the contract as repudiated. X did not accept the repudmtio~
cases. (UPJS 1999) and kept on demanding the supply till the last date/due date of performance of the
Q. 22. How does a contract differ from quasi-contract? Enumerate the different kinds of quasi- contract. In the meantime, war between India and China broke out, and all the stocks
contracts provided in the Indian Contract Act, 1872. [UPJS 2000] of the company were requisitioned by Government for military purposes . X files a suit
Q. 23. What do you understand by Quasi contract? Explain the distinctive features of against the company for damages for breach of contract Will he succeed? Decide by
Quasi Contract? What is juridical basis of responsibility occur under Quasi Contract? referring to the provisions of the Indian Contract Act and decided cases. (HJS 2009)
Explain. (UPJS 2013) Q. 10. (a) When a contract has been broken, is a party, who suffers from such breach, entitled
Q. 24. Solve the problem referring to relevant laws: to compensation and in what circumstances? What are liquidated damages? What is
(b) 'A' supplies 'B', who is a lunatic, with necessaries suitable to his condition in life.
a stipulation by way of penalty?
'A' is entitled to be reimbursed from 'B's property. (UPJS 2015] (b) A borrows Rs. 100 from B and gives him a bond for Rs. 200, payable by Bve yearly
instalments of Rs. 40 with a stipulation that in default of payment of any instalment,
Consequences of breach of contract (Ss. 73-75) the whole shall become due. Can A get any relief? [RJS 1976)
Q. 1. "Where two parties have made a contract which one of them has broken, the damages Q. 11. Explain the concept of liquidated damages. [RJS 1980-81. )
which the other party ought to receive in respect of such breach of contract should be
Q. 12. Enunciate the principle for measure or damage as contained in Section 73, Contract Act
uch as may fairly and responsible be considered either arising naturally, Le., according to
with specific reference of any reported case decided by the Supreme Court. (RJS 1988)
the usual course of things, from such breach of contract itself, or such as may reasonably
be supposed to have been in the contemplation of both parties, at the time they made Q. 13. What is the criterion for calculating unliquidated damages caused due to breach of
the contract as the probable result of the breach of it." contract? Discuss in detail, while citing case laws. [RJS 20111
Discuss the rule as to remoteness of damage as contained in the above statement. Q. 14. X, a tobacco merchant, offered to sell a quantity of tobacco to Y at a certain price. Y
Illustrate your answer with decided cases. (B&JJS 1984] asked X for time in which to decide whether he should buy the goods or not. The time
Q.2.
for consideration was granted, but before it expired, X, without notice to Y, sold the
Explain giving suitable examples, the rule in Hadley v. Baxendale, (1854) 9 Exch. 341.
goods to a third party. Y purchased the goods at much higher price from the market
Discuss the extent to which the said rule is applicable in India. [B&JJS 1987]
and claimed damages in a suit filed by him against X. X contends that he is not liable
Q. 3. "Where there is a right, there is a remedy". In the light of this maxim. Discuss th as he was not to wait for the given time.
various remedies for breach of contract and the circumstances in which each is available.
(B&JJS 2006) How will you decide the case? Give reasons. [DJS 1973]
Q. 4. Every party injured by the breach of a contract may brin an action for damages an Q. 15. The plaintiff invited tenders for supply of 1000 pairs of woolen socks. The defendant
very action for damages raises certain problems. Discu the problem raised in every ubmitted tender offering to supply the goods, as per sample sent with the tender from,
action for damages. [B&JJS 2011) at a certain price. The plaintiff placed order for supply of 1,000 pairs of socks, subject
Q. 5. Discuss the rule relating to damages laid down in the ,e of Hadley v. Baxendal... to approval of the sample. The defendant failed to supply the goods and the plaintiff
(UPJS 2012, JJS 2014] 1
had to buy the same at a higher price from the market. In the suit filed by the plaintiff
for damages against the defendant, the defendant contends that he is not liable on the
Q. 6. What principles have been incorporated in the Indian Contract Act for determining th
ground that no contract had come into existence between the parties.
amount of damages to be awarded in the event of breach of contract? Di
light of decided cases. Decide the case, giving reasons for your judgment. (DJS 1973)
F-28 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract Act F-29
Q.16. M entered into a contract with the Government of India for supply of certain goods Q, 24, In an auction of liquor shop by the State, the highest bid is offered by 'A' but he. fails
and deposited Rs. 10,000 as security. It was stipulated in the contract that the amount to deposit the prescribed minimum amount within the stipulated period and the bid is
of the security was to stand forfeited in case M neglected to perform his part of the not accepted. In re-auction, the amount fetched is less than what was offered by 'A'.
contract. The goods supplied did not conform to the quality and were therefore rejected. The State files a suit for damages against 'A' for breach of contract to recover the loss
Government forfeited the security deposit. M filed a suit for recovery of the security suffered by it. 'A' contests the suit denying his liability.
amount. Decide. [DJS 2011)
Write a judgment giving reasons. [DJS 19791
Q. 25. Write Short note on Compensation for breach of Contract. (DJS 2014)
Q.17. The Defendant, a female, agreed to pay Rs. 5000 to plaintiff in consideration of latter Define Remedy (MPJS 1998)
Q. 26.
having the former trained in art of singing and dancing at his own cost. It was found
that the plaintiff's sister and not plaintiff himself had rendered those services. In a suit Q. 27. What are the rights of the party who suffers the breach of contract (i) in case a sum
of penalty is stipulated and (ii) in case where no sum of penalty is stipulated for.
for recovery of the agreed amount, defendant denied her liability to pay any amount
(MPJS 2010]
to plaintiff under the said agreement. How would you decide the controversy.
[DJS 1989) Q, 28. What principles have been incorporated in the Indian Contract-Act for determining the
amount of damages to be awarded in the event of breach of contract. Discuss in the
Q. 18. A undertakes to repay Ba loan of Rs. 1000/- by 5 equal monthly installments with a
light of decided cases. [UPJS 1991]
stipulation that in default of payment of any installment the whole shall become due.
Can the contract be enforced according to its terms? Give reasons. (DJS 1990) Q. 29. Is plaintiff entitled to damages for mental distress and social stigma caused due to breach
of contract? [UPJS 1999)
Q.19. X, a resident of Ambala is in the manufacturing business of household appliances. For
the past five years he is participating in display of goods in Exhibition-cum-Sale held Q. 30. Solve the following:-
every year at Ashoka Hotel, New Delhi. X used to send his goods through a particular (a) 'B' contracts with 'C' to pay him Rs. 500/- on a given day and if he fails to pay
transporter, who had knowledge about X participating in Exhibition-cum-Sale. In 1995, he him then he will pay Rs. 1000/- to 'C'. 'B' failed to pay on that day. Can 'C' recover
again delivers his goods to same transporter well in time for the purpose of participating Rs. 1000/- from 'B'. [UPJS 2000)
in Exhibition-cum-Sale, also mentions so in the consignment note. But this time due to Q. 31. How are damages awarded under a contract any different from those awarded for
negligence on the part of employee of the transporter, goods reached New Delhi only committing a tort? [DJS 2010)
after the exhibition. X then files a suit for loss of his freight charges as well as for the Q, 32. How are liquidated damages different from general damages? Are liquidated damages
loss of profits which he would have made in Exhibition-cum-Sale. Will he succeed?
required to be proved? (DJS 2010]
Discuss. [DJS 1996]
Q, 20. B holds agriculture land on lease from 'A' the landlord. A was in arrears of land revenue Indemnity (Ss. 124-125)
payable to Government. The land was advertised for sale by the Government Consequent Q. 1. Write short note Contract of indemnity (MPJS 2010, 2014)
to the sale taking place lease in favour of 'B' is also liable to be annulled under Revenue
Q, 2. What is a contract of guarantee? How is it different from a contract of indemnity. D
Laws. B in order to prevent the same pays arrears to Government. Can B recover the
guaranteed the repayment of a loan of Rs. 20,000 given by P to A. The guarantee paper
same from A? Decide. [DJS 1996)
showed the loan of Rs. 25,000. P refused to accept this paper. Therefore A without any
Q. 21. A gives bond for the repayment of Rs. 1,000/- with interest@ 12% at the end of six reference to D, altered the amount to Rs. 20,000 and gave ii to P who accepted it. A
months, with stipulation that, in case of default interest shall be payable @ 75% w.e.f. failed to pay and therefore P sues D. Will P succeed? (B&:JJS 1986]
the date of default.
Q. 3. Briefly state the rights of a surety against principal debtor. [MPJS 2006)
Discuss the liability of A in case he fails to repay the amount of loan of Rs. 1,000/· after
Q, 4. The liability of the surety is co-existence with that of the principle debtor. Explain.
six months. To how much compensation, B will be entitled and what would be the [MPJS 2007)
measure of assessing damages in such case? [DJS 2000)
Q. 5. What is continuing guarantee? When can it be revoked? [MPJS 2007]
Q, 22. In some contracts, it would be impossible for the court to assess the compensation
arising from breach and if the compensation contemplated is not by way of a penalty or Indemnity and Guarantee (Ss. 124-179)
unreasonable, the curt can award the same if it is a genuine pre-estimate by the parties
Q. 1. Explain in detail the discharge of a surety. (B&:flS 2000]
as the measure of reasonable compensation. Do you agree. Give reasons. [DJS 2008]
Q. 2. "The liability of the surety is co-extensive with that.of the principal debtor unless it is
Q. 23. A delivers to B, a common carrier, a machine, to be conveyed, without delay to A's mill
informing B that his mill is stopped for want of the machine. B unreasonably delays
otherwise provided by the contract." Explain ttus'
and discuss the liability of a surety
for the payment of a loan where is subsequently turns out that principal debtor is a
the delivery of the machine, and A, in consequence, loses a profitable contract with the
minor and therefore the loan to him is void. [HJS 1996)
government. What compensation is A entitled to receive from B? Why? [DJS 2008)
F-30 All States Judicial Seroice Examinauor: - Unsolved Mains Paper Indian Contract Act F-31
Q. 3. Distinguish between the contract for indemnity and guarantee. How for do you Q. 4 'Bailment implies a sort of relationship in which the personal property of one person
agree with the maxim of law that you must be damnified before you can claim to be temporarily goes into possession of the other'. Comment on the above statement and
indemnified? Refer to relevant judicial pronouncements? [HJS 1998} bring out the essential features of bailment. A customer gave his banker a sum of money
Q. 4. What are the liabilities of a surety under the Indian Contract Act? When is the liability for transm:ission by telegraphic transfer to his own firm at another place. The bank
of a surety discharged? (HJS 2000] decided to hold the money for their balance of account against the customer. Is the bank
Q. 5. What are the rights of surety against creditors? Discuss with the relevant provisions of liable to the customer. [B&:DS 1966)
Indian Contract Act. [HJS 2011) Q. 5. "A Bailment is the delivery of goods by one person to another for some purpose, upon
Q. 6. (i) What do you understand by (a) Contract of Indemnity and (b) Contract of Guarantee? a contract that they shall, when the purpose is accomplished, be returned or otherwise
disposed of according to the directions of the person delivering them."
What is the distinction between the two? Can a surety be discharged? If so, under
what circumstances? Explain the above definition of Bailment dearly pointing out the essential elements of
Bailment. [B&:JJS 1991)
(ii) What is meant by the Rule that the debtor should find the creditor? In that Rule
applicable to Negotiable Instruments? Give reasons for your answer. [RJS 1969) Q. 6. Define Bailment. Discuss the essentials of a Contract of Bailment. [B&JJS 2000)
Q. 7. A gave some gold to a goldsmith named B. The goldsmith put the gold in his safe and
Q. 7. Distinguish between the following giving suitable illustrations.
posted a watchman outside the room. In a raid by dacoits on the house of the goldsmith,
Contract of Guarantee and Contract of Indemnity (RJS 1974, MPJS 2006) along with his other property A's gold was also taken away by the dacoits, Is B liable
Q. 8. Define 'Contract of Guarantee'. [RJS 1988, UPJS 1982) to A to pay the value of the gold? [HJS 1988]
Q. 9. What is meant by 'Continuing guarantee' under the Contract Act, 1872? Q. 8. On B's request A lent gratuitously his scooter to B for his use for one week. After tow
[UPJS 1983, RJS 2016I days A urgently needs his scooter and required its return from B. B refuses to return
Q. 10. "The liability of surety is co-extensive with that of the principle debtor." Discuss. the goods unless he is indemnified for his damages@ Rs. 100 per day, which he would
[DJS 1991, UPJS 2000] suffer due to the premature delivery of the scooter. Decide the rights of A and Bin such
a situation. (HJS 1996]
Q. 11. Distinguish between a contract of indemnity and a contract of guarantee. Explain "The
Q. 9. The plaintiff handed over to the defendant certain jewels for the purpose of being melted
liability of the surety is co-existenslve with that of the principle debtor. [MPJS 2009]
and utilized for making new jewels. Every day as soon as the defendant's work for
Q. 12. (a) What are the liabilities of a surety under the Indian Contract Act? When is the liability the day was over, the plaintiff used to receive half made jewels from the defendant
of a surety discharged? and put them into a box in the defendant's room, without-handing over the key to the
(b) Do you agree with the proposition that a surety is a favoured debtor? [UPJS 1983) defendant. One night the jewels were stolen from the defendant's room. Discuss the
Q. 13. Discuss distinction between contract of indemnity and contract of guarantee. remedy available to the plaintiff if any? [HJS 1998)
(UPJS 1999] Q.10. Mr. 'A' who lives in Ambala gives his motor-cycle to his friend 'B' for going to
Q. 14. Distinguish between "Contract of Indemnity" and "Contract of Guarantee". Is a Contract Kurukshetra, 'B' instead of going to Kurukshetra drives the motor-cycle for going to
of Insurance a Contract of Indemnity? [UPJS 2006) Chandigarh. He drives the motor-cycle with reasonable care. While coming back from
Chandigarh to Ambala he met with an accident and motor-cycle is totally damaged.
Bailment (Ss .. 148-171) Can 'A' claim damages from 'B'. Give reasons. (HJS 2010)
Q. 1. X found a ring. He made a reasonable search for the owner but did not find him. Adding Q.11. Distinguish between the following giving suitable illustrations.
a polish, making it look like new, he sold it in the open market to Y who in his tum Bailment and Agency. IRJS 1974)
sold it to Z who happened to be the true owner of it. Can Z the true owner recover the Q.u. What are the rights and duties of a bailor and bailee of goods?
price of the ring? If so, from whom? [B&JJS 1975]
A, a merchant at Jaipur instructed B, a commission agent in bullion to purchase silver
Q. 2. Can a bailee, by express agreement, secure exemption for himself from liability for bars and keep them at his place of business at Bombay. B purchased the silver bars and
ordinary negligence? (B&JJS 1978) reported to A that they were kept at A's risk. B kept the bars in his 'pedi' unlocked and
Q. 3. (a) Discuss the essentials of contract of bailment and describe the duties of a Bailee. unattended and two of the bars were lost. Was B liable for payment of damages to A
(b) X lends his car to Z for his own driving and use within the municipal limits of Gaya. for the loss? (RJS 1975)
Y, a near relation of Z suddenly took ill in a village ten miles away. Z's son had to Q, 13. Describe the liabilities (duties) of Bailor. Give illustrations. [DJS 19911
drive the car to the village with a doctor. On his way back the car struck against Q.14. A lends his motor-car to B for a drive by him only. B allows his daughter C, who is an
an electric pole and got severely damaged. Discuss the rights and liabilities of th expert car driver, to drive the vehicle. C drives the car carefully but the axle sudden!
parties X and Z. What difference should it make if the accident had occurred within breaks and the car is damaged. Is B liable for the damage? [DJS 1991]
the municipal limits of Gaya? [B&JJS 1979)
F-32 All States Judicial Service Examination - Unsolved Mains Paper Indian Contract Act

Q. 15. Define Bailment, Bailor and Bailee [MPJS 2001) Appointment and authority of agents (Ss. 182-189)
Q. 16. Define the Bailment [MPJS 2003) Q.1. Harun, a horse dealer, employed Ben Bella, his brother to sell a horse to Gymkhana
Race Club instructing him (Ben Bella) not to warrant the horse. Ben Bella never tackles
Q. 17. What is bailment, bailor and bailee. (MPJS 2004)
gave a warranty, and the horse being in fact unsound, Gymkhana Club sued Harun for
Q. 18. Define the terms ''bailment", "bailor" and ''bailee" giving illustrations. What is the kind its breach. Discuss Harun's liability. · [HJS 1986)
of care expected from the bailee according to Section 151 of the Contract Act.
Q. 2. A appoints B as trustee of his property with specific direction to give the property on
The defendant Ram Sarup betel-seller to the plaintiff Sunder Lal's wooden shop on rent lease for five years. B enters into a contract with C to lease out this property to him for
and despite the tenant's prudent care, the rioters set fire to the shop and destroyed is ten years. Is this contract specifically enforceable? [HJS 1999)
and the defendant, according to the terms of the agreement failed to "return the same
Q. 3. (i) Who is an agent?
in the same condition," Whether the defendant as its bailee is liable to make good the
loose and pay damages to the plaintiff? [UPJS 1988] (ii) What is the difference between an agent and
Q. 19. Write note on Contract of bailment and pledge. [UPJS 1992] A. An employee.
B. An independent contractor. [HJS 1999]
'Bailment of Pledge (Ss. 172-179) Q, 4. "The relationship of principal and agent is a fiduciary relationship." In the light of this
Q. 1. A man named N called at a jewellers shop to chose.' a valuable ring. He tendered in statement, explain the concept of agency pointing out the difference, if any, between an
payment a cheque which he signed in the name of G a person of credit. Thereupon the . agent and a trustee.
jeweller allowed him to take away the ring which N pledged to B who had no notice Life Insurance Corporation (LIC) launched a salary saving insurance scheme for
of the fraud. The jeweller sues B for the ring. Decide. [B&JJS 1977] employees wherein the employer was to deduct the premium from the salary of the
Q. 2. Define Bailment and Pledge. employees and deposit the same to UC at concessional rates. Employer X got the scheme
for his 200 employees. Subsequently, because of losses, X failed to give salary to his
What is the distinction between pledge and mortgage? What are the Pawnee's rights employees and also did not deposit the premium on their behalf. LIC consequently
where pawnor makes default? [RJS 1969]
refused to pay the assured amount to those employees who asked for it. These employees
claimed that X was the agent of UC for their scheme. UC must pay the assured amount.
Agency (Ss. 182-238)
Will the employees succeed? [HJS 2007]
Q. 1. Comment on An agent cannot delegate his authority to another. [RJS 1970] Q. s. Define Agent [MPJS 1998)
Q. 2. Delegates non protest delegate (a delegate cannot further delegate). Discuss the Q. 6. Define Agent and principal [MPJS 2001)
implications of this maxim in relation to agency and state the exceptions to the rule.
[DJS 1990]
Q. 7. Define and describe who may be 'Agent' and 'Principal'. Also discuss the types and
extent of agent's authority. [MPJS 20U]
Q. 3. L a wholesale cloth dealer, appoints Y as his agent for the sale of cloth on the basis of
5% commission on the sales done by him. Y had an agreement with his principal L, that Sub-agents (Ss. 190-195)
he could retain part of the sale amount of the goods to adjust the commission due to Q. 1. (a) What do you mean by sub-agent? When can a sub-agent be employed? illustrate
him. L terminates the agency of Y. Y refuses to hand over the cloth in his possession to your answer.
L and claims that he is vested with authority coupled with interest and that the agency (b) A directs B his Solicitor, to sell his estate by auction, and lo employ an Auctioneer
could not be terminated. How would you decide? [DJS 1990] for the purpose. B names C an Auctioneer to conduct the sale. ls C a sub-agent?
Q. 4. A carrier discovers that a consignment of tomatoes owned by E has deteriorated badly [B&JJS 19871
before the destination has been reached. He therefore sells the consignment for what he Q. 2. Distinguish between a sub-agent and a substituted agent and discuss their rights and
can get: this is about a third of the market price for the good tomatoes. E now sued D liabilities. [HJS 1996)
for damages. D claims he was an agent of necessity. Advise him. [DJS 1990]
Q. 3. L instructs his lawyer in another town to engage an estate agent to sell his house in
Q. 5. The defendant employed the plaintiff to find a tenant for his premises. When the plaintiff that town. Accordingly the lawyer selects B, the leading estate agent of the town for
was telephoning to prospective tenant 'X', a third party 'Y', overhead the conversation, the purpose. B is able to sell the house for a good price. But B delays to remit the sale
ascertained the locality from X, went to the premises where there was a "To Let" amount to L and meanwhile becomes insolvent. L holds his lawyer responsible for the
board with address of the defendant and engaged the premises. The plaintiff claims loss. How would you decide? State your reasons. [DJS 1990)
his remuneration. Is the claim tenable? Discuss. [DJS 1991)
Ratification (Ss. 196-200)
Q. 1. Define Ratification [MPJS 20031
F-34 All States Judicial Service Examination - Unsolved Mains Paper
Effect of Agency on Contract with Third Persons (Ss. 226-238)
Q. 1. Discuss the rights and liabilities of an undisclosed principal of an agent and the third
party to the contract, in case of such undisclosed principal. (HJS 1996)
Case Law/Miscellaneous
Q. 1. "Since notification is for the benefit of the offer and he may expressly or impliedly waive
this requirement and agree that an uncommunicated acceptance will suffice".
Explain the above statement. Give leading cases in support of your answer.
[B&JJS 1984)
Q. 2. "Absence of the capacity to contract does not result in the incapacity for the legal rights."
Comment. [B&JJS 1991]
Q. 3. Comment on the following:-
There cannot be a contract to make a contract. [B&JJS 2006)
Q. 4. The two fundamental propositions of English law are 'privity of consideration' and
'privity of contract'. Elaborate the two principles and their acceptability in India.
[B&JJS 2011)
Q. s. A promised B to subscribe a sum of money for the construction of 'Town Hall'. Can B
compel A to perform his promise? Decide with the help of decided case. [BJS 2014)
Q. 6. Discuss promissory estoppel [HJS 1988]
Q. 7. "The law of contracts, as contained under the Indian Contract Act, is not the whole of
the law relating to contracts; nor is it the whole of the law of obligations". Discuss this
statement. [HJS 1999]
Q. 8. There was a contract between X and Y for the carriage of a cargo, of goods belonging
lo Y. There was another contract between X and Z for the unloading of the cargo from
X's ship. Y's goods were damaged through Z's negligence during unloading. Y claims
damages from Z. [HJS 1999)
Q. 9. Critically discuss the Conditions of enforceability of the standard form contracts.
[HJS 1999]
Q. 10. Restitution stops, where repayment begins. 'Discuss the above statement in the light of
decided cases. (HJS 2001)
Q. 11. A agrees to give the use of his hall to B for holding a concert on a prescribed date.
However, the hall was destroyed by fire prior to prescribed date. B sued A for damages
for breach of contract Will B Succeed? (HJS 2001)
Q. 12. The plaintiff, a minor, mortgaged his house in favour of the defendant, a money-lender,
to secure a loan of Rs. 80,000. A sum of Rs. 20,000 was actually advanced to him. While
considering the proposed advance the legal adviser, who was acting for the money-
lender, received information that the plaintiff was still a minor. Subsequently, the minor
commenced this action stating that he was under age when he executed the mortgage
and the same should, therefore, be cancelled. Decide and refer to decided cases. What
would be your answer if the plaintiff was a major and mortgaged his house in favour
of the defendant, a minor, to secure a loan and a part of the amount was actually paid
in advance? (HJS 2003]
Indian Contract Act F-35
Q. 13. What is meant by 'concluded contr~ct'? Can the rule of 'promissory estopple' apply to
.
a concluded, contract?
Bank P launched a scheme to grant house loan upto Rs. 4 lacs. R applied for the loan in
accordance with the scfleme but finally settled for the loan of Rs. 3 lacs. R completed all
the formalities and executed contract with the Bank. Later on R demanded Rs. One lac
more in accordance with the scheme of the Bank. B~ declined R's request. On refusal
to pay the original loan, the Bank filed recovery suit. R pleaded that he is not bound by
the contract as the Banff had failed to fulfill its commitments as per the scheme. Will R
succeed? [HJS 2007]
Q. 14. Discuss the law relating to Privity of contract in English and Indian Law with its qualified
exceptions. Discuss relevant case laws. [HJS 2011)
Q. 15. Comment-
A stranger to a consideration as well as a stranger lo a contract cannot sue.
[RJS lffl)
Q. 16. Discuss the principles of law laid down in Hadley v. Baxendale and examine the extent
of their application in India. [RJS lffl)
Q. 17. A has a wife B and a daughter C. C in consideration of Rs. 100 paid to her by A executes
a release of her right to share in the inheritance to A's property. A dies and C claims
her one-third share in the inheritance. B resists the claim and sets up a release signed
by C. Is release a valid defence and if not, why? [RJS 1976)
Q, 18. W, a poor old woman, executed an agreement in favour of her Mukhtear, binding herself
to give him by way of remuneration for his services, half of the property she might
recover with his assistance.
Can the Mukhtear get the agreement enforced? Give reasons for your answer.
[RJS 1979)
Q, 19. What is the view of Rajasthan High Court on the question whether an insurer is liable lo
indemnify the owner of the goods, when he received bodily injury while accompanying
the goods in a goods vehicle which he hires from the owner of the vehicle? [RJS 1986)
Q. 20. A entered into a contract with B whereby A undertook to perfonn 'Pooja' for the success
of B in a litigation with the consideration that if B won the case, he would give one-
tenth of the decree money to A. B won the case but he refused to pay. Can A recover
one-tenth of the decree money? [RJS 19~)
Q. 21. A, a wealthy businessman promised to subscribe Rs. 5000/· to the trustees of a temple
for its repairs. Repair work was started. Later A refused to pay. Can the trustees recover
the amount from A? (RJS 1988]
Q, 22. Defendant offered to sell a house on 25.11.1989 to the plaintiff for Rs. 90,000. On
10.12.1989, the plaintiff made an offer of Rs. 80,000. This offer was refused by Defendant-
owner on 15.12.1989. On 20.12.1989, the plaintiff wrote to the Defendant that he was
now prepared to pay Rs. 90,000/-. The defendant-owner refused to sell the house. The
plaintiff filed a suit against the defendant for Breach of Contract. How would you
decide? Your reasons. [DJS 1991]
Q. 23. P gave his new woolen suit for drycleaning to a drycleaner. The woolen suit was
destroyed due to negligence of drycleaner. P claimed the market price. Drycleaner relied
 F-36 All States Judicial Service Examination - Unsolved Mains Paper
upon the condition printed on the back of the bill to the effect that customer would be
entitled to claim 50 percent of the market price of the suit and pleads condition to be
a part of contract. Whether condition so put by drycleaners is valid and enforceable?
Discuss. (DJS 1996)
Q. 24. A enters into an agreement to sell with B and upon receipt of consideration executes
will, agreement to sell and a power of attorney in favour of B authorising him to
sell, mortgage or part with the property. However there was no clauses in the power
of attorney that it would not be revoked. After about six months of the transaction
A revokes his Power of Attorney in favour of B. Is it legally permissible? Discuss.
(DJS 1999)
Q. 25. Mention the circumstances under which the consideration becomes unlawful.
(MPJS 2003)
Q. 26. The workers of a factory go on strike. The manager of the factory announced that
additional payments will be made to such workers who will continue to work during
strike period. When the strike ended, the manager refused to make additional payments
to such workers.
.,. U there are any remedies for such workers in the Indian Contract Act, State them
clearly. (UPJS 1987)
TRANSFER OF
Q. 27. 'A contract is a private relationship between the parties who make it, and no other
person can acquire rights of incur liabilities under it'? Explain. (UPJS 1991)
Q. 28. "Strangers to a contract can not sue." Discuss and point out the exceptions to the
PROPERTY ACT
rule. (UPJS 2003)
Q. 29. Solve the following problem:
Being fed up with each other's quarrelling nature, both husband and wife entered into
an agreement in which wife agree to live separately from her husband permanently and
husband agrees to pay her a monthly maintenance allowance of Rs. 1000/-. After six
months husband refuses to pay the allowance. Can wife enforce the agreement against
her husband in a court of law? (UPJS 2003)
Q. 30. 'B' offered to sell his house to 'A' for Rs. 1,00,000. 'A' replied that he is ready to purchase
the house for Rs. 90,000 to which 'B' refused. Then 'A' agreed to purchase the house
for Rs. 1,00,000. Is 'B' bound to sell his house? [UPJS 2006]
Q. 31. "M" entered into an agreement with "B" and engaged him for the purpose of performing
puja and offering prayers to Lord Shiva for "M's" success in a suit and promised to pay
Rs. 10,000 to "B" in the event of success. The suit ended into compromise under which
"M" obtained a substantial sum, much beyond his expectations. "M" refuses to pay
Rs. 10,000 to "B". "B" files a suit against "M". Decide. (UPJS 20121
Q. 32. "A contract cannot be enforced by a person who is not a party to it even though it is
made for his benefit." Point out also the exceptions to this rule. Discuss and refer to
decide cases. (UPJS 2013)