The document contains 41 caselets related to legal aspects of business and contracts. Several key points are summarized below: 1) A consumer can claim damages from a retailer and milk company if a child died after consuming toxic milk purchased from the retailer. However, the exact compensation will be determined by the court. 2) For a contract involving the sale of a smartphone, the buyer is entitled to a replacement of the defective phone and compensation for the phone cost and lost profits from a cancelled contract. 3) An unpaid seller can exercise their right of stoppage in transit over goods, and a transport company must follow the seller's instructions rather than asserting their own lien.

1. Amity Global Business School
MBA II Sem: Legal Aspects of Business--Caselets
1.Mr A agreed to install a plant for B & Company by 31st March 2012. The contract also
provided that A should pay a penalty of Rs20000/- for every month of delay. Mr A
installed the plant on 30th June 2012. However, the actual loss on account of the delay
was Rs1.50 lakhs. B & Company claims this loss of Rs1.5 lakhs. How do you decide?
Ans: Whatever penalty was agreed that only is enforceable. Otherwise notice regarding
legal steps should have been taken the moment delay is observed.
2) Mr M had purchased a half kg sache of milk of a famous brand from a retailer. The
milk contained some toxicants and M’s child died after consuming it. Mr M wants to
claim damages of Rs50 lakhs from the retailer and the milk company. Will Mr M
succeed?
Ans: YES: Consumer has a right under Consumer Protection Act 1986. However, the
amount of compensation will be decided by the court. Consumer has also right to
proceed in the civil court without going to the consumer court.
3. Mr X purchased a brand smart-phone along with the new simcard from the same
dealer for Rs28000/- by producing KYC requirements. He gave the telephone number to
his clients. Within a week the Smart phone stopped working owing to some technical
snag. One of his clients who was to confirm a commercial order cancelled the order
after he repeatedly got a voice message “this number does not exist”. The loss of profit
on the contract was Rs25 lakhs.
Discuss the various remedies available to Mr X in Consumer Court considering the
following aspects:
a)Is Mr X entitled for replacing the smart phone instrument?
b) Is Mr X entitled for claiming compensation of rs25,28,000 (Loss of profit on the
contract and the cost of the smartphone)
c) Can Mr X file a suit against his client for not accepting a genuine cause?
d) Is this a case to be fought only in civil court or can it be filed in the State Consumer
Commission?

2. Ans: a) YES
b) Yes. Proximate Causes and remote causes both are eligible for compensation. But if
the contract could have been secured by proper immediate communication and if the
other party agreed or if there was sufficient time, then case does not exist for remote
causes
c)No it is Mr X’s problem. It is the prerogative of the client. He may or may not accept
Mr X’s version
c) Yes. Either in the civil court or in the consumer court.
4. Mr A from India agreed to supply 1million pieces of assorted readymade garments to
Mr X in Japan. Before Mr A could dispatch the goods, there was a natural calamity in
Japan because of which the Japanese Government imposed an embargo on all imports.
Can X proceed against A in India for non-delivery of the goods?
Ans: Impossibility of performance. X cannot proceed against India
5. Ms Prachi Dutt has hired 100 laptops for her office @Rs30000 per laptop
(Rs3000000) for a monthly rent of Rs1 lakh. The stipulation is that if Ms Prachi pays the
rent regularly for 20 months, she is entitled to either exercise the option of purchasing
all the laptops or return the laptops immediately after 20 months. However, if purchase
option is exercised, the instalment facility would continue. She decides to exercise the
purchase option. Is this a valid contract?
(Ans: Yes. It is a hire purchase contract)
6. Mr Sukumar as an Agent of Ringfish Airlines entered into an agreement with Mr
Parashuram chartering a Ringfish aircraft, which Mr Parashuram badly needed for
holding an international conference in Singapore along with 100 delegates from India.
From the day of the agreement, all the Ringfish Aircrafts were grounded on account of
pilot strike. Both Mr Sukumar and Mr Parashuram were not aware of this state of affairs
of the airlines. Is the contract valid?
Ans: No. It is a void contract—mutual mistake or impossibility of the contract

3. 7. Mr Pruthvi Raj Chavan of Bangalore entered into contract for selling 10000 kgs of
grapes in his garden in Kolar with Mr Menezes of Goa, a fruit merchant. The grapes
were destroyed before the date of the agreement though Mr Pruthvi Raj Chavan was
not aware of the same. The grapes could, however, be used for preparing wine. Mr
Pruthvi Raj Chavan compels Mr Menezes to purchase the same. Is the contract valid?
Ans: No. Goods no longer answered the description of fruits.
8. Mr Shivakumar, a wholesaler of Textiles holds the Railway Receipt for two wagons of
Textile goods transported from Surat to Bangalore. He endorses the same in favour of
his retail buyer for a consideration of Rs 75 lakh. Is this a valid contract.
Ans: Yes. Transfer through document of title is a valid transfer of sale.
9.Jagadeesh a Dealer in two wheelers sells a brand new ACCESS 125 for a
downpayment of Rs25000/- and the balance in instalments of Rs2000/- per month for
50 months. Is this is a contract of sale of goods?
Ans: YES. Price is stipulated to be in instalments (not a hire purchase contract)
10.Mr Jigar Dhuvad agrees to sell his second hand Maruthi Omni Van to Mr Katta for a
price to be determined by Mr Dutta. Mr Katta took delivery of the Vehicle. Mr Dutta
refuses to fix the price. Mr Jigar Dhuvad wants the vehicle back. What is the position?
Ans: No. Mr Jigar has to accept a reasonable amount and Mr Katta has to pay a
reasonable amount. Mr Jigar cannot call back the goods.
11.Mr A from Vizianagaram in Andhra sold 100 quintals of Andhra rice (with necessary
permit) to Mr B in Bangalore but yet to be delivered. Before the delivery, the Karnataka
Government has banned interstate movement of rice.
Ans: Contract becomes void because of supervening impossibility of performance.

4. 12.Mr X who has taken a Machinery from Mr Y on hire purchase basis for 20 months.
The option was to be exercised at the end of 10 months. Before exercising the option,
he sold the machinery to Mr A who takes without knowledge of the previous hire. Will A
gets a good title?
Ans: No. The Hire purchaser has no title to the goods. He cannot pass on the title to
others
13.Mr A sold his old Air conditioner to Mr B stating that it is just one year old. Mr B took
it depending on A’s statement. Later Mr B learns that the Air conditioner is three years
old. Can Mr B return the Air conditioner and get back his amount? Will your answer
differ if the AC was working when A delivered and now it has stopped working.
Ans: Yes. B can return the goods. No change in the status of Mr B
14. Mr A sold his Home Theatre to Mr B on a condition that Mr B shall check the status
through a qualified electronic engineer. Mr B has taken the Home Theatre after his
engineer verified and estimated the price. However, Mr A demanded Rs 2000/- more
than what the engineer fixed. Mr B agreed and took delivery. The Home Theatre has
broken down within one month. Can B return the goods.
Ans: No. Where the seller has provided reasonable opportunities to the buyer to verify
the condition/status of the goods, buyer is taking his risk.
15.Mr X had sold a Car to Mr Y. In fact, the Car belongs to Mr A and later on it is learnt
that the RC book was forged and made in the name of Mr X. Mr Y having paid the price,
wants to have the car and refuses to return the same to Mr A.
Ans: Mr Y should return the car to Mr A but he can recover the amount from Mr X
16.M from Kashmir Sold to Mr N of Singapore 500 tons of Apple packed in wooden
cases each containing 30 tonnes. M delivered a substantial portion of goods (say 350
tonnes) packed in carton boxes with proper cushions. Can Mr N reject the whole goods
and rescind the contract.
Ans: Yes. Packing does not conform to the contract.

5. 17. A purchased 5 old lorries (trucks) from Mr B mentioning that he required lorries to
transport the cows from the shandy market to the villages. As the lorries had completed
the life of 15 years, the fitness was not given. Without indicating this, B had sold the
vehicles. Within 15 days of purchase, two lorries broke down and 6 animals were dead
for want of food. What are the remedies for Mr A.
Ans: Breach of condition of Fitness. A has full claim for damages.
18. Mr A has purchased 500 grams(ml) of Ghee of a particular brand from a nearby
retail store. On consuming the ghee, A’s wife was to be hospitalised and she died. What
is the remedy?
Ans: Mr A can sue the Company for the damages for the death of his wife as the goods
were not merchantable
19.Mr A sold a tin of cleaning acid to Mrs B. Mr A knew that it was likely to be
dangerous to Mrs B if she does not exercise caution and special care while opening the
lid. Mrs B opened the tin in the normal course and her face was defaced by sprinkles of
acid. Can she file a case against Mr A
Ans: For all dangerous goods, the seller is bound to inform the buyers all the dangers
inherent and the precautions to be taken. Mr A is liable for the damages.
20. Mr A has sold to Mr B his assembled computer (desktop) on a condition “as is
where is”. Mr B starts the desktop at his house and to his dismay the monitor has gone.
Ans: B loses as there is already an implied warranty—as is where is basis.
21. Ms Pooja goes to a beauty saloon. She asks for a facial and a hairdo. She does not
disclose any allergies to the beautician. The beautician applied some hair dye without
asking anything about the possible allergies. Ms Pooja developed dermatitis. Is the
beautician liable?
Ans: No. Fitness of the dye to extends to that of a normal person. If a client has specific
allergies, the client is bound to disclose the same.

6. 22. Mr A, a farmer, who wants to go abroad for a year has requested Mr B to look after
his 4 cows for a period of one year for a consideration (payment of service charges).
When A returned he found that 2 cows had given birth to calves. Mr B returned only the
four cows and refused to hand over the calves.
Ans: All accretions ( the calves in this case) should be returned to the bailor. His fees
automatically covered the maintenance of calves as well. (contract of bailement)
23.An unpaid seller Mr X has given notice to the transport company exercising his right
of stoppage in transit. Mr Y who is the buyer is also due to the transport company on
some other obligation. The Transport Company wants to exercise their lien on the
goods superceding the unpaid seller’s right of stoppage in transit.
Ans: Carrier is first the agent of the unpaid seller. Transport company has to follow the
instructions of the unpaid seller
24.Mr A sells certain goods to Mr B, the delivery date being 1st July 2011 but the
payment was to be made on or before 1st April 2011. B refuses to pay on 1st April 2011
stating that the delivery of goods should be made before the payment is made and that
the property in the goods has not passed. Can A sue B for the price before the delivery
of the goods.
Ans: Yes. Terms and conditions were clearly drafted. A can definitely sue Mr B
25.. A, who owns two houses one in J C Nagar, and another in J P Nagar is selling his
house in J C Nagar to B. Mr B thinks that he is purchasing A’s house at J P Nagar.
(Ans: There is no consensus-ad idem and hence no contract)
26. Your father agrees to pay a pocket money of Rs6000/- per month till you study MBA
in JP Nagar, Bangalore. After sending the pocket money of Rs6000/- for 3 months, he
reduces the pocket money to Rs2000/ per month. Can you legally recover the amount
from your father?
(Ans: No. Domestic agreements create only social obligations and not legal obligations)
27. A husband promised to pay Rs5000/ a month to his totally dependent wife
(housewife) for her exclusive use. After six months the couple got separated and the
husband fails to pay. The wife goes to a court of law for enforcing the claim.
Ans: No. The agreement is outside the purview of contracts.

7. 28. A clause in an agency agreement was “…..this agreement is not entered into as a
formal or legal agreement but this agreement stands.” Is the agreement a contract?
Ans: No. There is no legal binding and no legal jurisdiction
29. A agrees to sell 100 bottles of perfumes. Whether the agreement is enforceable?
Ans: No. Which kind of perfume is not mentioned. Hence, not enforceable. It is vague.
30. A company agreed with you to consider your application for a job after the expiration
of 6 months. Is the agreement is enforceable?
Ans: No. The company is not bound to give you a job
31. A agrees to sell his jeep on hire purchase terms and the hire purchase price to be
paid over two years. Is the agreeement enforceable?
Ans: No. The price and the interest is not clear and hence ambiguous. The contract is
not enforceable because of ambiguity
32. A makes a WILL bequeathing all his property in favour of a hospital. On A’s death
his wife files an injunction against passing on the property to the hospital. The WILL is
the last one duly registered with the registrar of assurances. Will the hospital authorities
succeed?
Ans: YES. The WILL has satisfied all the legal requirements
33. A was threatened to sell his car(which is worth 15 lakh) for Rs 50,000 to B. What is
the position of the contract of sale.
Ans: Voidable at the option of A
34. A took a loan of Rs2 lakh from Mr B on 22-07-2003 with an agreement to pay
Rs10000 a month. A has repaid Rs20,000 and defaulted further instalments. Can B
recover the amount now i.e, on 25-07-2007. A has agreed to sign an acceptance letter
that he had taken loan on 22-07-2003. Alternatively, A has paid Rs10000 on 23-06-
2003 in addition to Rs20000 already paid by him. This payment of Rs10000/- was paid
by Mr A by way of a crossed cheque along with a cover letter duly signed by him.
Whether B has got the right to recover the balance amount?
Ans: YES. The crossed cheque with the covering letter saves limitation

8. 35. Municipal authorities have permitted you to cut an infested tree in front of your
house. You have requested the municipal authorities themselves to arrange for cutting
the tree. The municipal authorities cut the tree and sends you a bill of Rs2800/-. Are you
bound to pay?
Ans: YES. It is an implied or tacit contract
36. You found a gold chain and a dollar in front of your college. On enquiring with all the
students in the college you get no claim. Can you keep the chain for yourself?
Ans: No. A person is not permitted to enrich himself unjustly at the expense of another.
This is a quasi contract. You need to find the true owner by different means and if not
found, hand over the ornaments to the police station to trace the true owner.
37. Your brother’s marriage is fixed on 25-07-2007 and you have invited a long time
friend. Your brother’s marriage on 25-07-07 gets deferred on account of certain
unfortunate events at your house. Your friend on 25-07-07 did come to the marriage hall
by flight from the other city and by engaging citi taxi. He now claims a compensation for
the undue expenses incurred by him. Is his claim enforceable?
Ans: No.
38. A invites his friend B to share the booty of an extortion. A is not available at the
appointed time. Further a refused to share the amount. Can B enforce the promise
Ans: No it is illegal.
39. A stranger comes and cleans the dirt and dust in front of your house. You chose to
be a silent spectator and not prevent him from doing the work. Are you liable for the
work done by the stranger.
Ans: YES. You are bound to pay a reasonable amount.
40. Mr Lokesh finds a purse belonging to Ms Meenakshi. Ms Meenakshi promises to
give Rs25,000/- to Mr Lokesh. Is this promise enforceable?
Ans: YES.
41. Mr Lokanath took a loan from Vijaya Bank on 1st July 2002 and has become a
defaulter. He has today executed a promissory note promising to pay the bank loan
taken by him 5 years ago even though he had not renewed the loan documents. Is the
promise note enforceable?
Ans: YES. A promise to pay a time-barred debt is enforceable provided it is in writing. (
Sec 25(3)

9. 42. Mr Kaushik promises to pay Rs10,000 to the Prime Minister’s Relief Fund. He does
not pay. Can the promise be enforced.
Ans: No. Abdul Aziz Vs Masum Ali—No consideration
43. Mr A promises to pay Rs1 lakh on or before Sep 2006 for repairs of an old temple.
The trustee of the temple believes Mr A who is a long time devotee and commences the
work in August 2006. Later Mr backs out. Can the trustee recover the money.
Ans: Yes. Consideration is found as the trustee has depended on the promise and
commenced the work
44. While Mr Rajaneesh has gone on a personal tour, the roof of house partly collapsed
on account of heavy rains. Mr Siddarth, his neighbour spent some amount for repairs
which were immediately necessary. Mr Rajaneesh on his return promises MR Siddarth
Rs25000/-. Can Mr Siddarth recover the money?
Ans: Yes
45. Mr Abhijit Jain is in bad need of money and sells his motor cycle to John Prem for
Rs500/-. Later on, Abhijit jain seeks to set aside the contract of sale of vehicle and even
promises to pay back Rs2000/- to Mr John Prem. Is John Prem bound to oblige Mr
Abhijit?
Ans: No. Abhijit cannot set aside the contract. Inadequacy of consideration is not a
reason to set aside a contract
46. Mr Prasad, a minor obtained Rs50,000/- from a money lender against the mortgage
of his property. Subsequently on attaining the majority the minor sued the money lender
for setting aside the mortgage stating that he was underaged. Could Mr Prasad succed?
Ans: Yes. Minor has no capacity to contract (Mohiri bibi Vs Dharmodas Ghose)
47. Mr Partha, a minor shopkeeper sold some goods on credit to Mr Nagaraja, a major.
Nagaraja refuses to pay the money. Can Partha sue Mr Nagaraja in a court of law and
recover the money?
Ans: Minor can be a beneficiary. He can file a case and win the case

10. 48. Mr Kapil Dev agreed to be a cricket coach to Mr Rajesh, a minor who agreed to pay
Rs1 lakh. Mr Kapil Dev devoted time and energy and trained Mr Rajesh. Is Mr Rajesh
liable?
Ans: Yes. The minor’s liability for supply of necessities extend to education, teaching,
instruction, coaching, employment, training for a trade, medical advice, legal expenses
etc. However, minor’s liability is from his estate and not a personal liability
49. Mr Kurshid, a minor falsely representing to be a major, enters into an agreement to
sell his property to Mr Habib for Rs10 lakhs and receives an advance of Rs3 lakhs. He
purchases a second hand car for Rs2.50lakh from this advance amount and spends
Rs50,000 on a pleasure trip. Mr Habib forces Mr Kurshid on 25th July 2007, two days
after Mr Kurshid attaining the majority to execute the sale of the property. Could Mr
habib succeed?
Ans: No. Minor’s original agreement is void ab-initio.
50. Mr Sharukh threatens his parents that he would commit suicide if his parents does
not give him Rs2 lakh. The parents agree to pay Rs2 lakh within 10 days. Is the promise
enforceable
Ans: No. It is both coercion and undue influence.
51. Mr Pramod Pujari induced his devotee to gift him the whole of his property in return
of a promise of a salvation of the devotee. Is the devotee bound to gift.
Ans: No. the promise to gift was influenced by undue influence
52. Mr A says to B: If you say that the title documents are correct, I shall accept. Mr B
remains silent but takes advance for selling his house. It turns out that the documents
are fake which A was aware of.
Ans: Silence is in itself equivalent to speech. It is a fraud. It does not mean that the
sellers should disclose everything. However, when asked for certain clarification, he
needs to clarify. Otherwise, silence amount becomes a fraud
53. Mr Ajay kumar had agreed to hire a room for witnessing the Sahitya Sammelan
between 1st July to 30 th July 2007. The Sahitya Sammelan gets cancelled. What is the
position?
Ans: Physical impossibility of performance.

11. 54. Ms Sharada fraudulently claims that he is the wife of a State minister and obtains
two gold ornaments on credit on the pretext that she would buy them. She sold those
ornaments to Mr X, a third person. State whether the jeweller recover the ornaments
from that third person?
Ans: Yes. (Cundy Vs Lindsay)
55. Mr Sanjay threatens to commit suicide if his wife would not take a PF Loan for
Rs80,000/- and give it to him. Is his wife bound to give the money?
Ans: No. Undue influence.
56. Mr Abhayaram promises to pay Rs15lakh to his wife to enable her to obtain divorce.
Is the agreement enforceable if the wife applies for divorce and gives her consent?
Ans: No. The consideration of separation is immoral and unlawful.
57. Mr Bhagwan agreed to pay Rs5 lakh to Ms Bhagya if he married anyone else. Mr
Bhagwan later married Bhavya. Can Bhagya recover the money?
Ans: No. The agreement was in restraint of marriage.
58. A agrees to pay B Rs2 lakh if Mr Sachin comes back to cricket. Sachin comes to
play but A refuses to pay. Is A in order?
Ans: Yes. B cannot recover the amount.
59. A promises to pay Rs 4 lakh to B if B marries Z. Z dies before marrying B. B claims
the amount from A. Can he succeed?
Ans: No. This is a contingent contract
60 Miss Aishwarya who is 17 years old and Mr Abhishek Kumar shukla who is 28 years
old agree to marry each other. Is the contract of marriage valid?
Answer: No
61. Mr Allwyn engages Mr Pratap for cleaning the surroundings of his house and agree
to pay such remuneration as is fixed by a third party Mr Sridhar. Is this a valid contract if
Mr Sridhar fixed the remuneration? Does your answer differ if Mr Sridhar does not fix
the remuneration?
Answer: YES

12. 62. Ms Sharanya mows Pranesh’s lawn without being asked by Pranesh. Pranesh
watches the mowing but does not stop her. Is Mr Pranesh bound to pay a reasonable
remuneration?
Answer YES
63. Mr Kandaswamy promises to pay Rs1 lakh to Mr Narayanan to hit Mr Kumar by his
vehicle. Mr Narayanan hits Mr Kumar. Kandaswamy fails to pay stating that the original
contract itself is illegal. Can Mr Narayanan succeed if he files a case in a court of law?
Answer No
64. Trendz Cars Company displays 50 used cars of different brands in its used car
show room. The company also releases an advertisement re: special discount to those
who purchase the car within the next 7 days. Is this an offer?
Ans: No—it is only an invitation to offer
65. Mr Prasad advertises in a newspaper dated 25-10-2008 that he would pay Rs1lakh
to the first person who starts a bicycle race from Bangalore to Mysore on 1st November
and reaches back Bangalore by the same bicycle on 3rd November. Mr Pratik who sees
this advertisement starts off on 1st November. Mr Prasad releases a second
advertisement on 2nd November 2008 stating that the offer of the prize is withdrawn. Mr
Pratik reaches Bangalore on 3rd November as per the original terms. Can Mr Pratik
recover the prize money from Mr Prasad.
Ans: YES
66. Mr Rajiv applied for a job in a software company. The Assistant HR Manager Mr
Avanish has privately informed that Mr Rajiv is selected. However, Mr Rajiv receives a
regret letter from the company on its letterhead. Can Rajiv succeed in getting a job?
Ans: No—private information is not a business communication
67. Mr Santosh with the help of a few persons puts down a fire in the house of Mr
Ramoji who was away on an international tour. Mr Santosh had to break open the lock
of the house. Mr Santosh spent about Rs5000/- on the job. Mr Ramoji instead of paying
the amount of Rs5000/- accuses Mr Santosh of breaking his house lock. Is Mr Ramoji
bound to pay Rs5000/-.
Answer YES

13. 68. Mr Rajaram is due Rs50,000 to Mr Raghuram . The amount was borrowed in the
year 2003. Now on 26-11-2008, he executes a promissory note for Rs25000/- in lieu of
the old debt of Rs 50000/-. Can Mr Raghuram recover Rs50,000/-
Answer: No
69. Ms Sreekala fraudulently represented to Akash Jewellers that she was the wife of
Lions Club President Sriram and thus obtained two golden necklaces worth Rs2.50lakh
on credit. She sold those necklaces to Ms Ravikala. Can Akash Jewellers recover the
necklaces from RAvikala.
Ans: The original transaction itself is induced by misrepresentation and also fraud
70. Mr Rajiv, a Project Leader in an IT Company was persuaded by a foreign Bank to
take a personal loan of Rs5lakh @20% p.a. rate of interest. The Bank was explaining to
Rajiv that the bank offers him the loan even in an economic downturn. Rajiv accepts the
personal loan on this rate of interest. Within one month the ROI on the personal loans
came down to 17% p.a. even in the said bank. Rajiv pleads undue influence. Will Rajiv
succeed?
Ans No. It is purely a business contract in the ordinary course of business and not the
one induced by undue influence
71. Mr Mohandas, a chartered accountant who was practicing represented to Mr
Ramdas that his practice was worth Rs1crore a year. Four months later when Ramdas
bought the firm he came to know that the practice has considerably gone down on
account of the prolonged illness of Mohandas and Mr Mohandas could not complete the
tax formalities of the top 15 clients. Mr Mohandas did not disclose this fact. Can Mr
Ramdas avoid the contract?
Ans: YES. (Concealment of fact)
72. Mr Bhojaraj let out the ground floor of his house to Mr Prithviraj who used a part of
the ground floor for residential purpose and partly for storing RDX and other explosives.
Mr Prithviraj never allowed Mr Bhojaraj to enter the house after he took possession.
After investigating into the reasons for not allowing him inside the house, Mr Bhojaraj
came to know the illegal purpose. He remained silent for one more year. The tenant
stopped paying rent. Will Mr Bhojaraj recover the arrears of rent.
Ans: No: The object of renting is unlawful though initially he was unaware. The moment
he came to know the unlawful object, he should have asked the tenant to vacate.

14. 73. Mr Chandraj gives money to Ms Sukhala to enable to get divorce from her husband
and then marry him (i.e, Mr Chanraj). Ms Sukhala divorces her husband using the
money but marries somebody else and Mr Chanraj. Can Mr Chanraj force Sukhala to
repay the money or claim damages as she has already married another person?
Ans: No. the original agreement of giving money to obtain divorce and getting married to
the promissory is itself is immoral
74. Mr Rajaram promised to Mr Raghuram a medical seat in consideration of payment
of Rs10 lakh. Mr Raghuram paid an advance of Rs5 lakh and obtains a medical seat.
ON obtaining he refuses to pay the balance. Can Mr Rajaram recover the money?
Ans: No: The object of the contract is opposed to public policy
75. Mr X a gold medalist in Architecture joined a firm of Architects (as an employee)
which imposed a condition that for the next two years he should not practice on his own
within a radius of 10 kms from the firm. Within 2 months Mr X started practicing in his
residence which is just 2 kms from the firm. The Firm of Architects filed a case claiming
damages of Rs 50 lakhs. Will the firm succeed?
Ans YES. The firm of Architects can claim damages. The same is applicable to
employment contracts where the employment is relatively a middle level or senior level
position. Rights are available even for the entry level position but no company bothers.