Law of Contract Mains Questions Series Part-VII: Important Questions for Judiciary, APO & University Exams | Part – VII of X

By | November 6, 2020
Law of Contract Mains Questions Series

Legal Bites brings to you Law of Contract Mains Questions Series Part-VII. The questions enlisted here are arranged section-wise and will aid the students preparing for Judiciary, APO or University Exams. The list of questions curated by Legal Bites will help candidates identify the important and frequently asked questions and give them a good practise for their aptitude and knowledge.

Law of Contract Mains Questions Series Part-VII

We know answer writing is a continuous exercise that is an inalienable part of the preparation process for any Examination. A well-written answer not only reflects the knowledge of an aspirant but also his/her ability to tailor the content in a manner suited to meet the expectations of the question.

Rigorous preparation for this exam is mandatory in order to crack it. In the last few months prior to the exams, it is sufficient for candidates to simply keep practising these questions in order to gain mastery over the subjects studied. Not only the candidate’s confidence level but also their scores will show good improvement upon following it.

Law of Contract Mains Questions Series Part-VII of X

Question 1

A agreed to sell to B a thresher by 5th of August, 1998 as it was required by B for his wheat crop. A repeatedly assured B that delivery would be made within a stipulated time. A failed to deliver machine by the agreed date upon which B tried his best to get one from the market but he could not. Rains come around the 20th of August, 1998 damaging stocked wheat in the field of B. B sued A for damages on account of damage to the crop due to rain, stacking charges, and loss due to a fall in prices. Decide. [DJS 1999]

Question 2

“Time is the essence of the contract” Discuss. What would be the effect of the breach of the covenant as to time? [MPJS 2015]

Question 3

Decide the following problem on the basis of decided cases:

A and B contract to marry each other. Before the time fixed for the marriage, A goes mad. Test the validity of the contract. [BJS 2014]

Question 4

A, B, and C are partners in a firm. C retires from the firm under agreement with A and B that all assets and liabilities of the firm will be that of A and B. D, a creditor of the firm sues A, B, and C. C refers to an agreement with A and B and denies liability to D. Discuss the liability of C. [DJS 1980]

Question 5

What is the meaning of earnest money deposit in a contract for the sale of immovable property?

What are the principles that govern the forfeiture of earnest money deposit? Under what circumstances can earnest money deposit be forfeited? Explain with some case laws. [DJS 2019]

Question 6

What do you understand by the frustration of the Contract? Discuss the law relating to frustration as applicable in India while taking reference from the following judgments: [HPJS 2019]

  1. Satyabrata Ghose v. Mugneeram Bangur, AIR 1954 SC 44.
  2. Krell v. Henry, (1903) 2 KB 740 (CA).
  3. Ganga Saran v. Firm Ram Charan Ram Gopal, AIR 1952 SC 9.

Question 7

What will be the place for the performance of a promise, where no application to be made and no place fixed for performance? Please give example. What will be the time for performance of the promise, where no application is to be made and no time is specified? Please clarify the legal provision. [MPJS 2018]

Question 8

Discuss in brief, the doctrine of frustration as applicable in India and state the specific grounds of the frustration of contract. Refer to statutory provisions and decided cases wherever relevant. [UPJS 2018]

Question 9

Write critical note on: [BJS 1978, UPJS 1986, HJS 2000, DJS 2011]

The doctrine of frustration, giving two illustrations under each of these two heads.

Question 10

“The essential idea upon which the doctrine of Frustration is based is that of the impossibility of performance of the contract, in fact, impossibility and frustration are often used as an interchangeable expression.” Discuss.

A Person entered into service as a 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. After the war, he undertook professional engagements and was sued by the employers for breach of contract. Is he liable? [BJS 1986]

Question 11

“The sanctity of a contract is the foundation of the law of contract and the doctrine of impossibility cannot be permitted to become a device for destroying this sanctity”. Discuss the implications of this statement. [BJS 2006]

Question 12

An electrical company entered into a contract with a fertilizer company for the 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]

Question 13

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 the performance of the 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]

Question 14

Naresh Kumar is residing in Mumbai, Raj Kumar at Jaipur, and Surender Kumar in Delhi. All three go together to Srinagar for the holidays. While at Srinagar, Raj Kumar and Naresh Kumar execute a joint promissory note payable on demand in favour of Surender Kumar for money borrowed from Surender Kumar.

Surender Kumar files a suit for recovery on the basis of the promissory note at Srinagar against Naresh Kumar and Raj Kumar. They both in their written statement take a preliminary objection to the jurisdiction of the court at Srinagar to try the suit by asserting that the defendants do not reside at Srinagar.

Decide the objection with reasons. [DJS 2019]

Question 15

‘A’ enters into a contract with ‘B’, an interior decorator. ‘B’ has promised to execute a turnkey project which includes design and supply of furniture and furnishings for Rs. 20,000/-. ‘A’ pays ‘B’ Rs. 1, 00,000/- in advance. ‘B’ dies within one week after he has received an advance payment of Rs. 1, 00,000/-, without furnishing drawing, furniture, etc.

What are the remedies available to ‘A’ under the Indian Contract Act and the law of succession? Whether legal representatives of ‘B’ are liable to perform the promise made by ‘B’? [DJS 2018]

Law of Contract; Notes, Case Laws And Study Material

Question 16

Yamuna Developers Pvt. Ltd. (YDPL) contracted with Jaipur Tiles Ltd. (JTL) for supplying various kinds of tiles to its Green Valley Project with the actual cost of Rs. 50, 00,000. JTL fulfilled its own part but YDPL had paid only Rs. 20, 00,000. After one year, JTL agreed to accept Rs. 20, 00,000 in satisfaction with its claim of Rs. 30, 00,000. Later on, JTL filed a suit for the enforcement of contractual obligations. Decide the case on the basis of relevant legal provisions and case law. [HJS 2011]

Question 17

The doctrine of Quantum merit. [BJS 2000]

Question 18

Distinguish between “Quantum Meruit” and “Claim for Damages”. [DJS 1999]

Quasi Contract (Ss. 68-72)

Question 19

Discuss with the help of decided cases: ‘Theory of Unjust Enrichment’ under the Contract Act, 1872. [HPJS 2019]

Question 20

What are quasi-contracts? What type of quasi-contracts has been recognized by the Indian Contract Act? [JJS 2017]


Law of Contract; Notes, Case Laws And Study Material

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