Directions: Go through the problem and encircle the most appropriate answer.

Damages are payable for breach of contract and the purpose of damages is to compensate him for the loss suffered and not to improve his position more than what it would have been if the contract had been duly performed. 'A' wanted to buy a house and he contracted with a surveyor 'S' to inspect a particular house and value it for him. S surveyed the house and valued it for Rs. 10 lakhs. S, however, failed to notice the defective plumbing system in the house and had he taken note of it, the house would have been worth only Rs. 8 lakhs. A followed S's advice and bought the house for Rs. 8 lakhs and thereafter spent Rs. 4 lakhs for repairing the plumbing system. He filed a suit against S claiming Rs. 4 lakhs as damages.

Directions: Go through the problem and encircle the most appropriate answer.

One evening a delivery boy from M/s. K.T. Das & Co., delivered a carton of sweets at Mr. Chatterjee's residence. The delivery boy told Mrs. Chatterjee that the sweets were ordered by her husband. When Mr. Chatterjee came home in the evening, he told his wife that he did not order any sweets. Nevertheless, the entire family finished all the sweets. Next day morning the delivery boy came again to Mr. Chatterjee's residence and explained that by mistake he delivered the carton to them, in fact it was to be delivered to their next door neighbour. Mr. Bannerjee. When Mrs. Chatterjee told him that they had already consumed the sweets, the boy on behalf of his employer asked Mrs. Chatterjee to pay the price of sweets.

Directions: Go through the problem and encircle the most appropriate answer.

An agent is entitled to such commission as was greed between himself and his principal at the time of the entering into contract of agency. Gopal wanted to lease out his house and he asked the local estate agent, Shivappa, to find a tenant for him. As per the terms of Shivappa, which were generally followed by all the agents of the locality, an agent would get one month's rent as commission in the case of leasing and 5% of sales price in the event of sale. Shivappa found one Krishappa who was desparately looking for a house to stay. Krishappa met Gopal for negotiation, and on a further talk, he found that Gopal was really interested in selling the house. Finally, instead of taking the house on a rent of Rs. 2000/- per month. Krishnappa bought the house for Rs. 2 lakhs. Gopal offered to pay Rs. 2000/- to Shivappa, since that was the rent he specified to Shivappa while instructing Wm to find a tenant. But Shivappa demanded the commission on the sale price.

Directions: Go through the problem and encircle the most appropriate answer.

A minor is not competent to contract. A minor mortgaged her house and received advance the mortgagee files a suit against the minor to recover the money advanced by him. The minor mortgagor takes the plea that the suit is not maintainable as there was no valid contract. Decide.

Directions: Go through the problem and encircle the most appropriate answer.

When the parties to an agreement agree on the same thing in the same sense, there arises legally binding obligations between them. Facts: Zaverilal's antique shop was a well-known shop of the locality. Taradevi, a socialite of the locality, went to the shop and she was attracted by an earthern jar on display. Zaverilal explained to her that the jar belonged to Hoysala period; and despite its earthern composition, it was very strong and almost unbreakable. Taradevi replied to him that she was so captivated by the jar that it was immaterial to her as to which period it belonged. She bought the jar and came home. She placed the jar in a prominent place in her drawing room. One of her friends, an art critique, who happened to visit her, told her that the jar was not at all an Antique, but Taradevi did not bother about it. One day, it accidentally fell down and broke into pieces. Taradevi took up the matter with Zaverilal that his both statements were wrong and therefore, he should pay damages to her.

Directions: Go through the problem and encircle the most appropriate answer.

Limitation bars the remedy, not the right.

After the expiry of the period of limitation of three years, debtor Rohan makes a part-payment of debt to creditor Sohan. Sohan then files a suit against Rohan for recovery of the debt after two years from the date of party payment. Decide.

Directions: Given below is a statement of facts of a case. Following the statement are a few principles of law are given in the form of certain propositions. Apply the principles to the facts of the case and encircle the most reasonable answer out of the alternatives given:

Facts: Mohan promised to take Sundar out for a dinner in TAJ COROMANDAL. Even after two weeks, Mohan did not fulfil the promise. Sundar wants to sue Mohan to enforce that promise. Principles: I. An agreement enforceable in a court of law is a contract, II. In order for an agreement to be enforceable in a court of law, there must be a meeting of minds between both the parties, III. Parties to a contract should be something for the other party. The obligation to do something for the other party is mutual. This is called 'consideration' and absence of consideration renders the contract unenforceable.

If Sundar goes to court:

Directions: Go through the problem and encircle the most appropriate answer.

A contract without consideration is void. A owes B Rs. 1100/- but the debt is barred by limitation. B cannot file a suit. A signs a written promise to pay B Rs. 500 on account of this debt. B now files a suit for the recovery of Rs. 500/-. Decide.

Directions: Go through the problem and encircle the most appropriate answer.

A contract without consideration is void. When at the desire of one party, the other party does something, the consideration is said to flow from the latter to the former. A house was on fire and a child was trapped inside the house. Everyone was shouting for help. A brave onlooker, hearing the shreikhs of child, went inside the house and brought it out. The grateful father of the child promised to pay the rescuer Rs. 10,000/-. Subsequently, he reneged the promise. The rescuer sused the promise for the breach.

Directions: Go through the problem and encircle the most appropriate answer.

Agreements, the meaning of which are not certain or capable of being made certain, are void. A lease agreement between the landlord and tenant would spend his own money in renovating the house and adjust it against the monthly rent of Rs. 4000/-. The tenant in the course of renovation covered the courtyard which was open; and for covering the courtyard, spent Rs. 1 lakh. When he sought to adjust it against the monthly rent, the landlord argued that the renovation did not include covering the courtyard. The landlord's submission was that the contract was void on account of uncertainty.

Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.

Principle: When a person represents to another something as a true fact, knowing fully well that it is not true, he is guilty of fraud. The person subjected to fraud may avoid an agreement.

Facts: A presents a horse for sale. The horse is kept on display so that anyone interested could examine it. The horse has a cracked hoof and it is cleverly concealed by the owner. B tells A “If you do not deny it, I shall assume that the horse is sound”. A keeps silent. B purchases the horse.

Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.

Principle 1: No consideration - No contract. Principle 2: Consideration is something done or abstinence of a party at the desire of another party. Principle 3: Consideration must have value in the eye of law. Fact: Innovative Education Trust manages a School named Bharat Vidyaniketan. Ashok, the parent of a student in the School suggested to the Trust that it could build a new library building for which he would bear a part of the cost. The School authority accepted the suggestion and started construction of the building. Ashok having suffered a loss in business, now refuses to pay the part he had offered earlier.

Which of the decision you think is appropriate?

Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.

Principle 1: If there is undue influence on a party to an agreement,he may refuse to perform the agreement. Principle 2: When one party in an agreement is in a position to dominate the will of the other party and he uses his position over the other party to get the other party's consent to the agreement, this is undue influence. Fact: The landlord asks the tenant to agree to increase the rent to double the previous amount or to vacate the house. The tenant had to agree to give double the previous rent and continue living in the house. He thereafter refuses to pay.

Which of the following answer you think more appropriate?

Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.

Principle 1: Acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor. Principle 2: Acceptance once completed makes the agreement binding on both the parties. Fact: A accepts to by B's offer of his motor car for Rs. 4 lakhs. The acceptance we put into e-mail. Unfortunately, when the e-mail was put, there is distortion as a result of which B is not in a position to really read what A has written.