This slide tells important cases about the contract and offer which will make user easily to understand the concept of offers. how a offers make good impact , how it accepted

2. True/False
1. All contracts are agreements but all agreements are not
contracts.
2. There can be a contract even without consensus ad idem.
3. An agreement which is enforceable at the option of either
party is a voidable contract.
4. A void contract is one which is void ab initio.
5. A void agreement does not create any legal obligations.
6. An illegal agreement is not only void as between the
immediate parties but even the collateral transactions to
it become tainted with illegality.
7. All void agreements are illegal.
8. In an executed contract both the parties have yet to fulfill
their obligations.

3. Problem 1
A engages B for a certain work and promises to pay
such remuneration as shall be fixed by C. B does the
work. Can there be a contract?

4. Solution
ThereisacontractbetweenAandBandAisboundtopay
theremunerationasshallbefixedbyC.IfCdoesnotfix,
orrefusestofixtheremuneration,Aisboundtopaythe
reasonableremuneration.

5. Problem 2
Over a cup of coffee in a restaurant, A invites B to a
dinner at his house on a Sunday. B hires a taxi and
reaches A’s house at the appointed time, but A fails to
perform his promise.
Can B recover any damages from A?

6. Solution
No, B cannot recover the damages from A as both the
parties share a social relationship and there is no
intention to create a legal relationship.
So, it was just an agreement which is not enforceable at
law.

7. Problem 3
 A takes a seat in a vehicle. Is there any contract?

8. Answer
Yes as occupying the seat is an implied gesture to take
the services of a vehicle. This is an implied contract.

9. Problem 4
A invites B to a Pajama party. B accepts the invitation.
Can there be a contract?

10. Answer
No, there cant be a contract as the friends share a social
relation. So, it is just an agreement.

11. Problem 5
A forced B to enter into a contract
at the point of pistol. What remedy
is available to B if he does not want
to bound by the contract ?

12. Answer
B can set the contract to be voidable and rescind it as
his consent was not free. The essential of a valid
contract is violated here.

13. Problem 6
 Amar had two visitors in his office one evening,
Bharat and Ram. Bharat ran an event mgmt
service. Amar had hosted a party the previous
evening to celebrate his son’s birthday. Bharat had
done the mgmt for the party. Bharat had come to
Amar’s office that evening, to collect Rs20000 for
having done the work.

14. Contd...
 Ram was the son of an ex- colleague of Amar.
Ram’s family had fallen into bad times. They had
accumulated a lot of debts. Ram was studying in
the final year of college. He was going around
meeting people his father had known and
soliciting money as donation, so as to be able to
finish his education. Amar was a kind person. He
told Ram that he would give him Rs5000. Ram
pleaded and said that if Amar could give him
Rs10000, he would not have to go any further to
collect money. Amar agreed to give him Rs10000

15. Contd...
 While Amar was in the process of obtaining the money
to give to Bharat and Ram, the phone rang. It was
Amar’s stock broker. He informed Amar that on a
particular purchase and sale order Amar had a loss of
huge amount of money. He had to pay to the broker
Rs9 lakh, within a week. Amar was very upset. In result
he refused to pay the money agreed to Ram and
Bharat.

16. Questions :
 Was there an agreement between Amar and Bharat?
 Was there an agreement between Amar and Ram?
 Should agreements be fulfilled?

17. Problem 7
M mowes L’s lawn without being asked by L to do so.. L
watches M do the work but does not attempt to stop
him. Is L bound to pay any charges to M?

18. Solution
Yes, L is bound to pay the remuneration as he didn’t stop
him from mowing the ground so his implied silence is
equivalent to speech here.

19. Problem 8
 A promises to pay Rs.500 if he (B) beats C. B beats C
but A refuses to pay.
Can B recover the amount?

20. Solution
No, as the agreement is illegal

21. Problem 9
 D lived as a PG with a family. He agreed with the
members of the family to share prize money of a
newspaper competition. The entry sent by D won a
prize of $750.He refused to share the amount won.
Can the members of the family recover their share?

22. Solution
Yes, as it was mutually decided and the parties intended
to bound by.

23. Problem 10
 C orally offered to pay A, an auto mechanic, Rs.50 for
testing a used car which C was about to purchase from
D.A agreed and tested the car. C paid A Rs.50 in cash
for his services. Is the agreement between C and A
(a) express or implied,
(b) executory or executed,
(c) valid, void, voidable or unenforceable ?

24. Solution
The agreement is
(a) Express
(b) Executed
(c) Valid

25. Problem 11
 Arun enters into a contract to sell a smuggled item to
X. The import of such type of goods is illegal under the
laws of the country. Arun refuses to deliver the item as
promised.
 What are the rights of X?

26. Solution
There are no rights available to either of the parties as
the contract is void ab initio and illegal.

27. Problem 12
 A agrees to buy from a jeweller a ring to be delivered to
A after two months. In the meantime, the Government
enacts a law on gold control and prohibit its dealings
in gold. When the time for delivery of the jewellery
comes, the jeweller refuses to deliver the same.
 What can A do?

28. Solution
A can exercise no option and holds no rights as the
prohibition laid by the government has made the
contract void and the contract is against the law to
perform.

29. Problem 13
- Warren offered to sell a farm to Hussain for
Rs.1000
- Hussain said he would give Rs.950
- Warren refused, and Hussain then said he
would give Rs.1000
- When Warren refused, Hussain sought for
court to obtain an order for specific
performance.
Can Hussain succeed?
Was there any contract?

30. Solution
There was no contract because
Hussain’s offer of $ 950 was a
counter offer which evidently
rejected the original offer.

31. Problem 14
 Ram’s son ran got kidnapped from home. He sent his
servant in search of the boy. When the servant had left,
Ram, by handbills, offered to pay Rs.500 to anybody
discovering the boy. The servant came to know of this
offer only when he had already traced the missing
child.He, however brought an action to recover the
reward.
 Will he succeed in his attempt? Give reasons.

32. Solution
The servant will not succeed as the offer was not in the
knowledge of the servant when he found the child and
without offer there can’t be acceptance.
An offeree must have knowledge of the offer before he
can accept it.

33. Problem 15
A sees a rate book displayed in a shop.It is
labelled “First edition Rs.15.” A enters the
shop and puts Rs.15 on the counter and asks
for the book. The bookseller does not agree
to sell saying that the real price of the book
is Rs.50 and that it has been marked as Rs.15
by mistake. Is the bookseller bound to sell
the book for Rs.15?

34. Solution
 No, the bookseller is not bound to sell the books as
mere expression of price doesn’t amount to an offer.

35. Problem 16
 Mr. Bhagwati in conversation with Ms. Sodhi asks her
to buy a diamond necklace worth Rs.1,00,000 for
Rs.20,000 as he’s in dire need of money. Ms. Sodhi
doesn’t have the money to buy the same but Ms. Savita
who overheard the whole talk conveys her willingness
to Mr. Bhagwati that she wants to buy the necklace for
the said amount.
Can Ms. Savita force Mr. Bhagwati for entering
into a contract ?

36. Solution 16
No, Ms.Savita cannot force Ms. Bagwati to enter into
a contract because Ms. Bagwati didn’t float an offer
to her and hence there was no contract.
Acceptance cannot move from Ms. Savita’s side
unless Ms. Bagwati proposes an offer.