Conceptual Assignment

(Common to session 1 to 6)(40 Marks)

Q. 1 State whether the following statements are True or False. (10 marks)
a)
b)
c)
d)
e)
f)
g)

A contract is voidable at the option of the party whose consent has been obtained by coercion. True
In case of general offers, acceptance need not be communicated. True
Consideration for an agreement need not be adequate. True
An offer open up to a specified date gets automatically lapsed on the expiry of the period. True
A contract between a lawyer and his client is always induced by undue influence. True
Wagering agreements in the nature of horse races and govt. lotteries are enforceable. True
A person who sells the goodwill of a business may agree not to carry on a similar business in the
same locality for a reasonable period. True
h) Mere silence as to facts likely to affect the willingness of a party to enter into a contract is not fraud.
True
i) Menu card in a restaurant can induce a person to make an offer. True
j) A contract between a man and his divorced wife is valid. True
Q.2 Match the following columns. Please answer in the table provided (5 marks)
Column A
Right of resale- notice to
buyer
Agreement to sell- executor
contract
Sweat equity- ownership
security
Invitation to offer-menu card
Co-sureties- joint & sevral

Column B
Joint and several liability
Notice to buyer
Executory contract
Ownership security
Menu card in a hotel

Q. 3 State whether the following agreements are Valid or Void (5 marks)

1) An agreement for sale of goods yet to be manufactured. valid
2) An agreement between 2 blind persons
3) An agreement entered into between 2 limited companies
4) An agreement (in writing and registered as per law) between a father and daughter whereby the
father promises to pay Rs. 5 lakhs at the time of her marriage
5) The buyer to pay price only if the article is lucky to him. void
Q. 4. Name the following (5 marks)
a. Agreement not to bid against each other amongst the bidders in an auction sale BID RIGGING
b. Contracts depending upon happening or non-happening of an event Contingent contracts
c. Person creating a pledge pledger
d. Compensation payable for breach of contract Compensatory damages
e. A seller of goods who has not received the price from the buyer unpaid seller
Q. 5 In the following questions choose the most appropriate answer. (15 marks)
1. Quasi contracts are exceptions situations whereina) no contractual relation exists between the parties
b) No agreement has been entered into by the parties
c) one party is bound to pay money in consideration of something done or suffered by the other
party

d) All the above

2. A promisor can perform the promise

a) himself
b) through his authorized representative competent to perform
c) through unauthorized agent
d) either a or b
3. One cannot plead doctrine of frustration for ones own inaction
a) False
b) True
c) Partly true
d) Partly false
4. A contracts to take in cargo for B at a foreign port. Later, As government declares war against the
country in which the port is situated. The contracta) Becomes void
b) Is valid
c) Is voidable at Bs option
d) Is void ab initio
5. In case of novation,
a) old contract need not be performed
b) new contract must be performed
c) both a and b
d) either a or b
6. An agreement contingent on happening of an impossible eventa) becomes void when impossibility is discovered
b) is valid
c) is voidable
d) is illegal
7. A agrees to pay B Rs. 1,000 if two straight lines enclose a space. The agreement isa) voidable
b) valid
c) void
d) illegal
8. Where a promisor has offered to perform his promise and the promise refuses to accept the
performancea) the promisor is not responsible for non-performance
b) the promisor does not lose his rights under the contract
c) either a or b
d) both a and b
9. Frustration of contract occurs when there is
a) commercial impossibility
b) supervening impossibility
c) both a and b
d) either a or b
10. A person to whom money is paid by mistake or under coercion,
a) Must repay it
b) May use it for his advantage
c) Need not repay
d) None of the above

11. A makes a contract with B to sell a horse to B at a specified price, if C, to whom the horse had been
earlier offered, refuses to buy. This contract cannot be enforced by lawa) unless and until C refuses to buy the horse
b) unless and until B refuses to buy the horse
c) unless and until A refuses to sell the horse
d) at all
12. A moneylender promises to give a loan of Rs. 1 lakh to a borrower if he so chooses. This is a
contingent contract
a) True
b) Partly true
c) False
d) None of the above
13. Anup Jalota make a contract with Zee TV to sing two nights every week for next two months at a
consideration of Rs. 1 lakh for each performance. On sixth night Mr. Jalota willfully absents himself
but turns up on the seventh night at the appointed time and he is allowed to perform that nighta) Zee cannot put an end to the contract but can claim damages from Anup Jalota for his absence
on sixth night
b) The contract is voidable at the option of Zee TV
c) The contract becomes void
d) Zee TV can put an end to the contract
14. An unpaid seller is entitled to
a) Right of lien
b) Right of resale
c) Right of stoppage in transit
d) All or any of the above
15. Performance of a contingent contract is dependent on the
a) happening of the collateral event
b) non-happening of the collateral event
c) either (a) or (b)
d) neither (a) nor (b)