Law of Contracts — Practice

Question 1

Principle: The display of goods with a price tag is an invitation to offer, not an offer.
Facts: A shop displays a shirt marked ₹500. A customer picks it up and says, 'I'll take it for ₹500,' but the shopkeeper refuses to sell.
Is the shopkeeper bound to sell?

Accepted Answer

B

Question 2

Principle: A counter-offer destroys the original offer, which cannot then be accepted.
Facts: A offers to sell his car to B for ₹3,00,000. B replies, 'I'll pay ₹2,50,000.' A refuses. B then says, 'Fine, I'll pay ₹3,00,000.'
Is A bound to sell at ₹3,00,000?

Accepted Answer

B

Question 3

Principle: Consideration need not be adequate; it must only be real and lawful, and consent must be free.
Facts: A, of his own free will, agrees to sell his watch worth ₹10,000 to B for just ₹100.
Is this a valid contract?

Accepted Answer

B

Question 4

Principle: An agreement with a minor is void ab initio and cannot be enforced against the minor.
Facts: R, aged 16, agrees to buy a motorcycle on credit from a dealer and later refuses to pay. The dealer sues R for the price.
Can the dealer recover the price from R on the contract?

Accepted Answer

B

Question 5

Principle: A person who supplies necessaries suited to a minor's condition in life may recover a reasonable price from the minor's property.
Facts: S supplies basic food and clothing to M, a 15-year-old orphan with property but no guardian. M does not pay.
Can S recover?

Accepted Answer

B

Question 6

Principle: When consent to an agreement is caused by coercion, the contract is voidable at the option of the party whose consent was so caused.
Facts: A threatens to set fire to B's shop unless B sells him his land. Frightened, B signs the sale.
What is the status of the contract?

Accepted Answer

B

Question 7

Principle: Where both parties to an agreement are mistaken about a fact essential to the agreement, the agreement is void.
Facts: A agrees to buy a specific painting from B. Unknown to both, the painting had been destroyed in a fire the night before the agreement.
What is the status?

Accepted Answer

B

Question 8

Principle: A wagering (betting) agreement is void, and no suit lies to recover anything won on such a wager.
Facts: A and B bet ₹5,000 on the result of a cricket match. A's team wins, but B refuses to pay. A sues B.
Can A recover the ₹5,000?

Accepted Answer

B

Question 9

Principle: Acceptance must be communicated; an offeror cannot treat the other party's silence as acceptance.
Facts: A writes to B, 'I offer to sell my bike for ₹20,000. If I do not hear from you by Friday, I shall assume you have accepted.' B says nothing.
Is there a contract on Friday?

Accepted Answer

B

Practice — Law of Contracts

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