Indian Contract Act 1872 Case Study

Here we have discussed Indian Contract Act 1872 Case Study with solutions. This short and simple business law case studies on contract Act is given with solutions. Indian contract Act is a part of Commercial Law which is other wise known as mercantile Law. These case studies on Business law will be helpful for students of graduate and post graduate like MBA, BBA, B.Com and Law. All the case studies are given with answers in a simple and short way for the benefit of the students. These solved case studies is given in a simple language to make the students understand the concept. All the example cases are written by the author on the basis of own understanding only.

Below discussed is the Indian Contract Act 1872 Case Study with answers.

1. Case Study on Genuine Consent

a. A has two laptops Sony and Acer with different configurations. B agrees to purchase a laptop from A. While entering in to the contract A was Intend to sell Sony but B enters thinking that the agreement is for acer laptop. What is the consequence of this agreement?

This agreement cannot be executed as it is entered without genuine consent.

2. Case study on Consideration of Contract

Mr. John wants to sell his car to Mr. Sam. They both have entered into the contract and they mutually agreed for a consideration of Rs.1000 only. John sold the car later Max John’s son files a case against Sam stating that the consideration was very less hence the contract needs to be cancelled. Give your comments.

Solution:

The contract need not be cancelled as it is a valid contract. In case of consideration it need not be adequate. When the parties agreed for a lesser amount still it is a valid contract and the consideration is also valid.

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3. Case study on free Concern

b. X a owner of the business appoint an employee for monthly salary. He wants to enter into the contract with the employee by which he enforces that the employee must have his daily mess at the hotel which is run by the friend of the owner. Can the agreement be executed. Can it be legally enforceable?

Solution:

The agreement can not be executed. It cannot be termed as a valid contract as the agreement is not out of free consent. It is out of undue influence. The owner uses his authority as a owner and forces his employee for doing something.

 4. Case study on Agreement

Mr. A enters in to an agreement with B it agreement was ” A will pay Rs.1,00,000 to B for not getting married with C” B did so but later A denied to make payment to B. B files a case against A. Will B succeed.

Solution:

No B will not get succeed, as the agreement between A & B is not valid. It is a void agreement. The agreements entered for restraint of marriage is a void agreement.

5. Case Study on offer and acceptance

The teacher made an announcement in the class ” dear students the college is going to sell its old carom board for Rs.1000. The one who is interested from this class can purchase it from me.” Is it a general offer (made to public) or special offer.

Solution:

It is a specific offer as the offer is made with in the class. the offer-or is the institute and the offeree must be the student of the class itself.

6. Case Study on Tender (attempted Performance)

A enters into a contract with B where in A is supposed to supply 100 tons of oil to B along with the container to store the oil on 31st of May 2017. On 31st of May A sent an email to B in his official ID that A will be supplying the oil on agreed date. But due to certain issue the container will e supplied two days later. A had sent the oil also to B’s place.

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B had rejected to accept the goods. A claims that it is an attempted performance. B has to compensate him for the loss occurred to him. Suggest whether A will succeed in the case-law.

Solution:

It is not an attempted performance. The party has to fulfill the complete obligation as agreed in the contract then only it is called as tender or attempted performance. In this case A should have supplied oil and container together. As he have not done so it cannot be termed as tender performance.

7. Case Study on Breach of Contract

X has entered into a contract with Y by which X has to sell his bike to Y on 15th of March 2017. they have agreed that the consideration will be 20000 which will be paid on the date of sale and registration itself. Meanwhile Y had noticed that on 10th of March X’s bike was in hands of Mr.V when inquired V said that he approached X for purchasing the bike of X for 22000. Hence he is taking a test drive of the bike. Is this a Breach of contract. If so which type is this.

Solution:

Yes this is a breach of contract. It comes under anticipatory breach. As per the contract X has to sell the bike to Y in this circumstance X should not have given a test drive to V. Hence it is a breach. It happened before the date of performance so it is an anticipatory breach.

8. Case Study on Discharge of Contract

A and B enters into a contract. They met at a C’s place who is B’s friend. They signed the contract by which A has to sell his horse to B 5 days thereafter for a consideration of Rs.1,00,000. At the same time the horse of A has died at his place. A was not aware of the same. Once A reaches his place A comes know about the fact and he informed the same to B and asked him to cancel the contract.

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B claims that it is a breach of contract and A has to compensate B for the same. Is it a breach of contract.

Solution:

No it is a not a breach of contract. The destruction of subject matter without the knowledge of parties cannot be considered as a breach of contract. Hence A need not compensate B.

9. Case Study on Contract of Agency

A and B is above to enter into a contract. A who is staying far from B’s place has appointed C as an agent to A. Hence C had entered into a contract with B on behalf of A. Later B comes to know that C is a drunken person. Hence he cancelled the contract stating that C is not an eligible person to enter into a contract. Will B succeed in this case. Can the contract be cancelled.

Solution:

B will not be succeeding in this case. As per law of agency anybody can be appointed as an agent. What ever the agent does it is as good as the principal has done. So the principal can appoint anyone as an agent. Hence C can be appointed as an agent. Hence B cannot cancel the contract stating the reason that the agent is not capable.

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