I.

Indian Contract Act Case Studies

1. Case study on basic Contract Act
“A gives an offer in the newspaper for the sale of his HP laptop for Rs. 15000. He also stated that
Those who are willing to purchase can send a message to his mobile.”” In this simple case
consider the following situation and discuss the solution:

Question:
a) B was interested to purchase the laptop and sent a message stating that he wish to purchase
for 12000. Was it an acceptance is given by B-

Solution:
No it was not an acceptance It can be termed as counter offer. If feasible A has to give
acceptance.

Question:
b) B was interested to purchase the same but he asked C to message on behalf of B. and C
messaged as follows

“My friend B is interested to purchase your laptop for 15000” . Here is this a valid Acceptance? is
A binded by the acceptance.

Solution:
No this is not a valid acceptance. The acceptance needs to be given by the accept-or itself.
Hence A is not binded by the action of C.

Question:
c) B who is much interested in purchasing the laptop had called Mr.A and given the acceptance
through his phone. Is A obliged for acceptance given by B.

Solution:
The acceptance must the given by the mode prescribed by the offer-or only. Hence in the given
case the acceptance given by B through telephone is not an acceptance.

2. Case study on Valid Contract

Mr. X invited Mr. Y his business partner for X’s sisters marriage. Y accepted the invitation in this
ground X booked a table in a costly hotel where the marriage takes place. Due to some reason Y
could not attend the function. What type of contact is this. Is this a valid contract. Justify your
answer.

Solution:
This is not a valid contract on the following basis:

a. This is a social agreement. The agreement is not created with an intention to create legal
relationship rather to create a social relationship.

b. There is no consideration involved in the contract hence it is not a valid contract.

II. Consumer Protection Act Case Studies

3. Case study on who is a consumer?
a. Mr. A bought a printer from an electronics store for using it at home. The TV was defective. Is
Mr. A a consumer?

Solution
Yes Mr. A is a consumer as he purchased the printer for his own use.

b. Balu is a distributor for computer accessories. He bought 100 pen-drives for selling to other
computer vendors. Is Balu a consumer?

Solution:
Balu is not a consumer as he has obtained accessories for resale.

4. Case study on Restrictive and Unfair trade practices

Mr. X went to a electronic shop to purchase a TV for his newly built house. He asked the
information about Samsung 40 inches LED TV to the shop keeper. The shop keeper being a
dealer of other brands misguide the customer stating that Samsung had planned to stop the
production of 40 Inch LED TV’s. The shopkeeper made the customer believed the same and
advice him to purchase some other brand.

The act of Shop keeper is Restrictive trade practice or Unfair trade practices?

Solution:
The act of shopkeeper is a unfair trade practice as he had mislead the customer with a motive to
increase his sale.

III. Sale of Goods Act 1930 Case studies

5. Case study on Sale or Agreement to Sell
On 1st March 2017, Alex agreed to sell his car to Beny for Rs. 80,000. It was agreed between
themselves that the ownership of the car will transfer to B on 31st March 2017. when the car is
gets registered in Beny`s name. Justify whether it is sale or agreement to sell.

Solution:
It is an agreement to sell and it will become sale on 31st March when the car is registered in the
name of Beny.

6. Case study on Warranty

Anay purchased a second hand typewriter from Balu. Anay used it for sometime and also spend
some money on its repairs. The typewriter turned out to be stolen one and as such Anay had to
return it to the true owner chand. Is it a breach of Warranty or not. What remedy will Anay get?.

Solution:
It is a breach of warranty. It is a implied warranty as to quite possession. It was held that Anay
could recover damages from Balu amounting to the price paid and the cost of repair.