Legal Bites brings to you Law of Contract Mains Questions Series Part-VI. 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-VI
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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-VI of X
Discuss the law relating to contracts in restraint of trade in India and compare it with the English law on the subject.
A firm of lawyers in Delhi when employing a young advocate B asks him to execute an agreement undertaking not to practice as an advocate in Delhi for all his life. Is this agreement binding? Decide giving reasons and citing decided cases. [RJS 1970]
‘A’, a Doctor, employed another Doctor ‘B’ as assistant for a period of 3 years on a salary of Rs. 3,000/- per mensum. There was an agreement between ‘A’ & ‘B’ which provided that after the termination of his employment, ‘B’ shall not practice as a Doctor within a radius of 3 kms of ‘A’s dispensary for a period of three years and if ‘B’ did so, ‘B’ should pay Rs. 50,000/- as liquidated damages. Immediately after the termination of his employment, ‘B’ started his practice as a Doctor next to A’ dispensary. ‘A’, thereupon, sued ‘B’ for the recovery of Rs. 50,000/-. Decide. [DJS 2007]
Neha, a software programmer, takes up employment with Macro ware Ltd., a large, software Development Company. Her contract of employment includes the following two clauses:
- During the course of her employment with Macroware Ltd., Neha shall not take up any other employment or indulge in software development for third parties.
- In the event of the termination of the contract of employment, for whatever reason, Neha shall not, for a period of three (3) years thereafter, compete directly or indirectly with Macroware Ltd. or take up employment as a software programmer with any competitor of Macroware Ltd.
- Would these causes be enforceable in a court of law? Discuss
- Let us assume that Neha, instead of taking up employment with Macroware Ltd., entered into a partnership with two other programmers Amit and Salma, and set up the firm NASware. Assume further that after two years, Neha retires from the partnership which continues with Amit and Sauna as its partners. While retiring from the firm, Neha is paid whatever is due to her; from the partnership and, additionally, she is also paid an amount of Rs. 25 lakhs for agreeing to give up any claim to the name NASware and the bundle of benefits associated with it. Despite this, Neha starts a sole proprietorship concern using the same name NASware.
Is Neha legally entitled to do so? Discuss. [DJS 2008]
“Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights is, void to that extent.” Examine this statement in light of Section 28 of the Indian Contract Act, 1872.
Illustrate your answer with the help of case law. [BJS 1991]
A wife filed a complaint against her husband and in-laws under Section 498-A and 406 IPC. In those proceedings, a compromise was arrived at as per which the husband agreed to pay a sum of Rs. 25 lacs to his wife in full and final settlement of her claims towards stridhan, dowry, etc.
Parties also agreed to take divorce by mutual consent. The wife also agreed in the said compromise that she will not claim any maintenance from her husband. A decree of divorce by mutual consent was obtained by the parties. The husband also made a payment of Rs. 25 lacs. Thereafter, the wife filed a petition for maintenance under Section 18 of the Hindu Adoptions & Maintenance Act, 1956.
The husband took the plea that the wife was precluded from filing such a petition in view of the settlement between the parties. The contention of the wife was that there was a statutory right given to her to claim maintenance and the agreement in question was against the public policy. How will you decide the issue? [DJS 2007]
What is a contingent contract? When is it enforceable? A agrees to pay B Rs. 10,000 if B repairs his car. Is this a contingent contract? Explain with the help of legal provisions and decided cases. [HPJS 2018]
Define Contract of indemnity. [MPJS 2001]
A contract to pay Rs. 10,000 to B if B’s house is burnt. House of B is burnt. Can B recover Rs. 10,000 from A? Is it a wagering agreement? [UPJS 2016]
Discuss fundamental breach of contract. [HJS 1988, UPJS 1991]
A, a singer contracts with B, the manager of a theatre for two nights in every week during the next two months. B agreed to pay A Rs.500/- for every night. On the sixth night, A wilfully absents from the theatre and B, in consequence, rescinds the contract.
Are A and B entitled to claim any compensation? If so, for what? And under what provisions of the law? [HJS 1998]
What is meant by the offer of performance or tender? What conditions must be fulfilled to make it a valid tender? What are the incidents? [RJS 1969]
In a suit for damages for non-delivery of linseed upon a contract, the terms of which as to the payment were cash on delivery, part delivery had been made by the defendants and a sum of Rs. 1,000 had been paid on account, by the plaintiff. The plaintiffs then made a claim against the defendants for excess refraction, and the defendants thereupon, refused to deliver the rest of the linseed, unless the plaintiffs paid the full amount owing for the portion that had been delivered. The plaintiffs declined to accept these terms, and the defendants then canceled the contract.
Can the defendants rescind the contract? Decide. [Punj JS 1998]
“The parties to a contract must either perform or offer to perform their respective promises unless such performance is dispensed with or excused under the provisions of this Act (Indian Contract Act, 1872) or of any other law.” Explain the above statement in light of the provisions of the Act relating to the performance of contracts. [BJS 1991]
A promises to paint a picture for B by a certain day at a certain price A died before the day. Whether the contract can be enforced against A’s representatives? [HJS 1984]
A was due to perform a contract on 1st May 1970, but on 20th April repudiated his obligation. On 26th April, the contract became illegal through a change in the law. B, the other party to the contract, filed a suit for breach of contract on 30th April 1970. Discuss. [Punjab JS 2006]
- A contract is a contract from the date it is made and not from the date on which its performance is due’. Discuss with reference to statutory provisions and case law.
- ‘A’ a singer, contracts with B, the manager of the theatre, to sing at his theatre for two nights in every week during the rest two months and B engages to pay for a hundred rupees for each night’s performance. On the sixth night, A wilfully absents herself from the theatre, and B in consequence rescinds the contract. A sues B for the breach. Discuss the liability of B. [BJS 1977]
Explain with illustration ‘Anticipatory breach of contract.’ What is the measure in cases of such breach? [UPJS 2003]
What do you understand by anticipatory breach of contract?
M/s XYZ Textile enters into a contract with ABC Garment Showroom for the supply of 1000 pieces of cotton shirts at Rs. 400 per shirt to be supplied on or before 31st December 2015. Later on, on 1st November 2015, XYZ Textile informs ABC Garment Showroom that they will not supply the shirts. Discuss the remedies available to ABC Garment Showroom. [UPJS 2016]
By whom contract must be performed (Ss. 40-45)
What is the law relating to the performance of a contract by joint promisors under the Indian Contract Act, 1872? [RJS 2014]
Naresh engaged Mr. Vinay a well-known painter to paint a picture depicting a particular design for him. Naresh agreed to pay a sum of Rs. 10,000/- as professional charges to Mr. Vinay. After completion of work, it was revealed that an assistant of Mr. Vinay painted the picture but under the guidance and supervision of Mr. Vinay. Naresh refused to pay professional charges as per the agreement. Mr. Vinay filed a suit for recovery of Rs. 10,000/- in civil court. Decide. [DJS 2005]