1. Legal Principle: Communication of offer and acceptance is must for a valid contract. Factual Situation: A proposes by letter, to sell a house to B at a certain price. A revokes his proposal by telegram. Issue: Whether the revocation of an offer is valid? Decision:

2. Legal Principle: A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract. Factual Situation: A, a minor who wished to become a professional billiards player, entered into a contract with B, a noted billiard payer, to pay him (B) a certain sum of money to learn the game and play matches with him during his world tour. B spent time and money in making arrangements for billiards matches. Issue: Is A liable to pay? Decision:

3. Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer. Factual Situation: X gives to Y 300 to be given to Z. Y informs Z that he is holding the money for him. But afterwards Y refuses to pay the money. Z sues Y for the money. Y contends that Z cannot sue as he was not a party to the contract. Issue: Will the contention of Y be upheld? Decision:

4. Legal Principle: Where both parties to an agreement are under a mistake as to matter of fact essential to the agreement, the agreement is void. Factual Situation: There is an agreement between A and B for the purchase of a certain horse. But the horse is dead at the time of the contract. Issue: What is the nature of contract? Decision:

5. Legal Principle: The act of using influence on another and taking undue advantage of that person is called undue influence. Factual Situation: A, a money lender, advances 100 to B, an agriculturist and by undue influence induces to B to execute a bond for 200 with interest at 6% per month. Issue: Is it a case of undue influence? Decision:

6. Legal Principle: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy. Factual Situation: P advanced money to D a married woman to enable her to obtain a divorce from her husband and D agreed to marry her as soon as she obtained a divorce. Issue: Can P sue D for the recovery of money? Decision:

7. Factual Situation: Two firms entered into a written contract for the sale and purchase of tissue paper. The agreement contained a clause to the effect that ‘this agreement is not entered into, nor is this memorandum written, as a formal or a legal document, and shall not be subject to legal jurisdiction in the law courts’. Since the goods were not delivered, the buyers brought an action for non-delivery. Issue: Are the sellers liable? Decision:

8. Legal Principle: In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation. Factual Situation: A, aged 16, agreed to purchase a second hand motorcycle from B for 12,000. He paid 2,000 as advance and agreed to pay the balance the next day and collect the motorcycle. When A came with the money the next day, B says that he has changed his mind and offered to return the advance. Issue: Can B do so? Decision:

9. Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer. Factual Situation: S, intending to deceive Y, falsely represents that 500 maunds of indigo are made annually at X’s factory and thereby induces Y to buy the factory. Issue: Is it a valid contract? Decision:

10. Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer. Factual Situation: A, purchased a machine from a dealer, relying on the dealer’s representation that it was a new model. After paying the purchase price, A came to know that the machine was not new but an old one. Issue: What are the legal rights of A? Decision:

11. Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer. Factual Situation: X falsely representing herself as the wife of a well-known millionaire and takes a ring from a jewelers shop for the approval of her husband. She pledges it with a pawn broker, who is in good faith and without notice of the first transaction pays her 10,000. Issue: Can the jeweler recover his ring? Decision:

12. Legal Principle: The act of using influence on another and taking undue advantage of that person is called undue influence. Factual Situation: A borrowed 50,000 at 12% per annum interest from B repayable on demand. B made the demand and on failure of A to pay, he was about to sue A to get back his money. A requested B to postpone the filing of suit and agreed to pay interest at the rate of 18% per annum. On refusal to pay interest at 18%, B filed a suit. Issue: Whether B will succeed in his suit? Decision:

13. Legal Principle: With the counter offer the original offer lapses. Factual Situation: A, offers to sell his house to B for 5 lac. B says, ‘I accept your offer. Here is 2 lac in cash and a 3 month promissory note for the balance.’ Issue: Is there any contract between A and B? Decision:

14. Legal Principle: ‘When, at the desire of the promisor, the promisee or, any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise, is called a consideration for the promise’. Factual Situation: The Carbolic Smoke Ball Co. offered by advertisement a reward of £100 to any person who should contract influenza after having used the smoke ball three times daily for two weeks according to the printed directions. It also added that £100 deposited in the bank showing its sincerity in the promise. The plaintiff Mrs Carlill used the smoke ball according to the directions to the company but contracted influenza. Issue: Is the company liable to give the reward and is Mrs Carlill entitled to an award as prayed for? Decision:

15. Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer. Factual Situation: A, promises to contribute 5,000 for repair of a temple. The trustee of temple, relying on A’s promise incurred certain liabilities. A latter on does not pay the amount. Issue: Can the trustee take action against A? Decision:

16. Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything is returned to as it was. Factual Situation: A, a minor, borrowed 50,000 from B by executing a mortgage of his property in favor of B. Subsequently, the minor sued for setting aside the mortgage. Issue: Do you think that the mortgage is valid? Can B recover the amount advanced to A? Decision:

17. Legal Principle: In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation. Factual Situation: X, a minor, insured his goods with an insurance company. The goods were damaged. X filed a suit for claim. The insurance company took the plea that the person on whose behalf the goods were insured was a minor. The court rejected the plea and allowed the minor to recover the insurance money. Issue: Will the minor be entitled to recover the insurance money? Decision:

18. Legal Principle: When, at the desire of the promisor, the promisee or, any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise, is called a consideration for the promise. Factual Situation: Mohan polished Mr Ram Prasad’s shoes without using aspect to do so. Mr Ram did not make any attempt to stop Mohan from polishing his shoes. Issue: Can Mohan make Mr Ram liable for payment for his services? Decision:

19. Legal Principle: An agreement, the meaning of which is not certain, or capable of being made certain, is void. Factual Situation: A agreed to take B’s house on rent for three years at the rent of £ 85 per annum provided the house was put to thorough repair and the drawing rooms were decorated ‘according to present style’. Issue: Is there a valid contract between A and B? Decision:

20. Legal Principle: ‘When, at the desire of the promisor, the promisee or, any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise, is called a consideration for the promise’. Factual Situation: An old lady Laxmi Rani gifted her property to her own daughter Ramayya, with the direction to pay a certain sum of money annually to Chinayya, her maternal uncle. On the same day, Ramayya executed an agreement with Chinayya agreeing to pay the amount annually. Later on, Ramayya refused to honor the agreement on the ground that there is no consideration. Chinayya sued for the recovery of the annuity. Issue: What is the nature of contract? Decision:

21. Legal Principle: Where both parties to an agreement are under a mistake as to matter of fact essential to the agreement, the agreement is void. Factual Situation: A man and a woman made a separation deed under which the man agreed to pay a weekly allowance to the woman under a mistaken assumption that they were lawfully married. Issue: Is it a valid contract and enforceable in the court of law? Decision:

22. Legal Principle: The act of using influence on another and taking undue advantage of that person is called undue influence. Factual Situation: A youth of 18 years of age, spend thrift and a drunkard, borrowed 900 on a bond bearing compound interest at 2% per mensem. Issue: Is it a case of undue influence? Decision:

23. Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything is returned to as it was. Factual Situation: P rendered services to D during his minority at D’s request, which were continued after D ceased to be a minor. After attaining majority D promised to pay an annuity to P for the services rendered in the past. Issue: What is the nature of contract and whether P can recover the money? Decision:

24. Legal Principle: The acceptance of the offer will be valid only and only if it is accepted in the way it had been made to be. Factual Situation: An offer was made in the following terms. ‘I intend to sell my house for 1,000. If you are willing to have it, write to F at his address’. Instead of writing to F, the purchaser sent an agent to F and agreed to the purchase. Issue: What is the nature of contract and liability of the seller? Decision:

25. Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything is returned to as it was. Factual Situation: S, a minor by fraudulently representing himself to be a major, enters into an agreement with L, for selling his (S’s) property. Under the agreement, S receives the full amount of 5 lakhs in advance from L and uses it for purchasing a new car worth 3 lac and spends the balance on a world tour. Later on, S tries to avoid the contract on the plea of his minority. Can he do so? Issue: What are the options available to L? Decision: