University of Delhi 2010 L.LB General lb-102-principles of contract - Question Paper
[This question paper contains 10 printed pages.]
1237 Your Roll No.
LL.B.
--JS
I Term
Paper LB-102 - PRINCIPLES OF CONTRACT
Time : 3 Hours Maximum Marks : 100
Wm : 3 vwfar ; 100
(Write your Roll No. on the top immediately on receipt of this question paper.)
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Note Answers may be written either in English or in Hindi; but the same medium should be used throughout the paper.
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Attempi Five questions including Question No. 1 which is compulsory.
All questions carry equal marks.
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1. Attempt briefly any four of the following :
(a) Quasi-Contracts.
(b) Distinguish between void and voidable agreements. Give two illustrations of each.
(c) Inadequacy of consideration does not affect the validity of an agreement'. Comment.
(d) Essentials of a Wagering Agreement.
(e) Can a tenderer withdraw his tender before final acceptance even if the tender incorporates a condition disallowing withdrawal before one year ?
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2. (a) FITNESS WORLD5, a sports shop in Connaught
Place sent P an exercise kit without any order from P\ A letter accompanying the kit stated
that if P remains silent, it would be presumed that the same has been accepted by him. After some time P wanted to return the kit but it was not accepted by the shopkeeper as by that time an improved version of the kit had come in the market. Another reason given was that P had used the kit and so there was a concluded contract and P; was under obligation to keep it and pay for it. Is there a contract between FITNESS WORLD5 and B ? Explain with the help of case law.
(b) A residing in Delhi makes an offer over telephone to B who is based in Chandigarh. B receives the offer in Chandigarh for supply of construction material and immediately accepts the offer at Chandigarh. B fails to supply the construction material. A5 wants to fije a suit for recovery of damages resulting from breach of contract but is in doubt about the jurisdiction of court at Delhi as his offer was received and accepted at Chandigarh. Even the payment was to be made at Chandigarh. Advise A as to where jurisdiction for his suit for breach of contract lies in the light of the decided cases.
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3. Decide whether the following amounts to an offer or invitation to offer. Cite relevant cases.
(i) Display of price of petrol at petrol pump.
(ii) Notice of car-parking fee at the entrance of automatic car park.
(iii) Advertisement of reward for Lost goods.
(iv) Stating the Lowest price in response to enquiry.
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4. (a) State and discuss the exceptions to the principle that the contractual benefits or obligations are limited to the parties to the contract.
(b) Are contractual obligations created in the following situations. Explain briefly with the help of relevant sections of the Indian Contract Act, 1872 and the case law.
(i) A sponsors the educational expenses of Bs only child C who is a minor. B promises to pay back As expenses for the same.
(ii) CA owes B5 Rs. 20,000 but the debt is barred by limitation. A makes an oral promise to pay B Rs.' 10,000 on account of debt.
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5. A5 a minor falsely represents himself to be the age of majority and borrows Rs. 30 Lakhs from B on the security of the mortgage executed by A\ He invested 50% of the money in mutual funds and the rest in shares. He loses both as the markets crash. Can B recover his money from A ? Discuss in the light of decided cases.
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6. (a) When can a contract be stated to be induced by
undue influence ? What are the stages for consideration of a case of undue influence expounded by the courts in India ?
(b) A a widow enfeebled by disease and old age is induced by Bs influence over her as her care giver to agree to gift her house to B in
preference to her legal heirs. She executes a gift deed in favour of B but after two months of execution seeks to cancel the gift deed on the ground of undue influence. Will she succeed ? Explain with reference to the relevant section And decided cases.
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7. The doctrine of frustration is really an aspect or part of the law of discharge of contract by reasons of supervening impossibility or illegality of the act agreed to be done. Critically analyse the above statement by referring to case law.
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8. (a) A booked a hall in a five star Hotel in Delhi for the engagement ceremony of his daughter. He invited about 150 guests and booked about 25 rooms for his outstation guests. The Hotel agreed to serve dinner in the hall as well as ensure music performance by the leading band in the city. A South African dance troupe engaged by A was also allowed to perform by the hotel authorities. The Hotel .authorities cancelled the contract just one day before the engagement ceremony. A was forced to organise the function in a small Community Hall in his neighbourhood and rearrange the stay of his out-station guests in some other Hotel at higher charges. A had to cancel the performance by African dance troupe because of lack of space and facilities but had to pay them anyway. He had to undergo a lot of inconvenience and mental tension. He had a tough time informing guests about the change of venue and incurred unnecessary and high telephone expenses. A sues the Hotel authorities and claims general as well as special damages? Will he succeed ? Decide citing relevant cases.
(b) A Contracted with B a Sugar Mill owner to sell his sugarcane crop to {B by a fixed day for specified price. A failed to deliver his sugarcane crop to IT at the time specified. As a consequence B was forced to procure the same from another grower X5 at the higher price than what would have been paid to A\ He was even prevented from honouring his contract with C which he had made at the time of his contract
with A but had not communicated the same to A. B was compelled to compensate C\ B filed a suit against A to recover damages for breach of contract. He claimed the difference between the contract price and the price paid by him to X, as well as the compensation paid by him to C\ Decide citing the relevant case law.
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| Earning: Approval pending. |
