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

Legal Bites brings to you Law of Contract Mains Questions Series Part-V. 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-V

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-V of X

Question 1

‘A’ promises to pay a monthly allowance to a woman kept as a mistress. Whether such consideration is lawful? [RJS 1986]

Question 2

A, a minor having a well-built body and quite tall falsely represented his age and obtained a loan of Rs. 10,000 and spent the loan amount on his luxuries. The moneylender 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 the contract or in torts? Discuss. [DJS 1996]

Question 3

Section 27 of the Indian Contract Act provides that an agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, is void to that extent. In a given case, the landlord is the owner of the 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 equipment, to a tenant with the stipulation that the tenant shall 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]

Question 4

Tony borrowed a sum of Rs. 5000/- from John in order to bet with Mahesh as to the result of a cricket match. The betting on a cricket match is not authorized by law. Tony lost the 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]

Question 5

“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]

Question 6

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]

Question 7

Whether the following agreements are void or they are voidable? [MPJS 2001]

1. An agreement in which considerations and objects are unlawful in part.
2. An agreement in restraint of marriage.
3. An agreement, the meaning of which is not clear.
4. When consent to an agreement is caused by coercion.

Question 8

Distinguish between Void and Voidable contracts. [UPJS 1983]

Question 9

During his serious illness High Court employee Sri. J.R. Bhatta 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. This compelled the plaintiff to give the undertaking and on that basis, the plaintiff was not allowed to join. The plaintiff claimed a declaration that he be treated on duty as before since the undertaking was against his wish. If he is entitled to any relief then give reasons in support of your answer. [UPJS 1986]

Question 10

Write a short note on all contracts are agreements but all agreements are not contracts. [UPJS 1997]

Voidable Contract (Ss. 19-19A)

Question 11

A filed a suit against her maternal uncle B seeking partition of her share in land measuring about 24 acres left behind by A’s father. B resisted the suit on the ground that A’s mother who was an old, blind, tribal woman, and was living with B had executed a sale deed in favor of ‘B’. A challenged the sale on the ground that it was obtained by exercising undue influence on her mother, who was a blind, illiterate, tribal woman living at the mercy of B till her death. B led no evidence to show that any consideration had actually passed at the time of registration of sale deed. In these circumstances, ‘A’ can be said to have discharged the onus of proof that the sale transaction was vitiated because of undue influence? How would you decide the question of the onus of proof in these circumstances? [DJS 1996]

Question 12

In a case, while the defendant intended to sell the land in terms of Kanals, the plaintiff intended to purchase in Bighas. Bighas and Kanals are different units of measurements. In the northern part of the country, the land is measured in some States, either in terms of Bighas or in terms of Kanals. Both convey different impressions regarding the area of the land.

The area of the land was as essential to the agreement as to the price, which incidentally, was to be calculated on the basis of the area. Is the mistake with which the parties were suffering related to a matter essential to the agreement? Answer with reference to the sections of the Indian Contract Act and case law, if any. [Punjab JS 1999]

Question 13

“Mistake in the formation of contracts may be common; mutual or unilateral”. Discuss this statement, and explain briefly the cases where such mistakes may avoid the contract. [BJS 2006]

Question 14

A, an old lady, granted an estate to her daughter B, with the condition that B should pay an annuity of Rs. 5000 to A’s brother, C. On the same day, B made a promise vis-a-vis an agreement with her uncle C that she would pay the annuity as directed by her mother, A Later B refused to pay the annuity on the ground that her uncle C had not given any consideration, he cannot claim the money as a matter of right. C sues B for breach of contract. Decide giving reasons. Also, refer to decided cases. [HPJS 2018]

Question 15

“Though consideration need not be adequate, it must be real. It must be something which is of some value in the eye of the law.” Briefly examine the above statement.

Give decided cases in support of your answer. [BJS 1984]

Law of Contract; Notes, Case Laws And Study Material

Question 16

What is the relevance of consideration to the validity and performance of a contract? Indicate the different types of considerations supported by instances. In what circumstances can a valid agreement be made without consideration? [RJS 1980-81]

Question 17

An administrator of the estate agreed to pay X his share of the estate if X would give a promissory note for a portion of a time-barred debt claimed by A from him. X executed a promissory note in favor of A, gave it to the administrator, and received his share of the estate. A sued X. on the promissory note. X pleads it was without consideration. Who will succeed? Decide. [DJS 1996]

Question 18

An agreement for partnership containing a clause that a partner shall not carry on any business other than that of the firm while he is a partner is void in view of section 27 of the Indian Contract Act, 1872. [Gujarat JS 2020]

Question 19

A forfeiture clause in the employment contract provides that “if a person engages in a competing business/service within two years period after leaving the company, the outstanding incentive amount due to him can be forfeited”. Whether the clause is enforceable or is violative of Section 27 of the Indian Contract Act? [DJS 2018]

Question 20

The Coca-Cola Company entered into an agreement for grant of a franchise to Gujarat Bottling Company to manufacturers, bottle, sell and distribute beverages under trademarks held by the franchiser. There was a negative stipulation in the agreement which restrained the franchise not to manufacture, bottle, sell, and deal or otherwise be concerned with the products, beverages of any other brand or trademarks/trade names during the subsistence of this agreement including the period of one year’s notice.

The operation of this stipulation was to be confined only during the subsistence of the agreement and not after term thereof. Was the negative stipulation in restraint of trade? Answer with reference to provisions of Contract Act and case law, if any. [Punjab JS 2000]

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Law of Contract; Notes, Case Laws And Study Material