Law of Contract – I · Semester 1

Law of Contract – I · Feb/March 2013 (5-YDC)

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Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Official previous-year question paper (PDF scan) labelled 5-YDC in the source filename. Stored with Year 1 Semester 1 as provided.

Osmania University · Faculty of Law

Law of Contract – I · Feb/March 2013 (5-YDC)

Feb/March (5-YDC) 2013 · Law of Contract – I · Semester 1

FACULTY OF LAW
B.A. LL.B. (5 YDC) II-Year III - Semester Examination, February /
March, 2013
Subject : LAW
PAPER - IV : LAW OF CONTRACT - I
Time : 3 HoursMax. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following:
1. Offer.
2. Consideration.
3. Fraud.
4. Wagering Agreement.
5. Novation.
6. Rectification of Instruments.
7. Temporary Injunction.
8. Duty to mitigate damages.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following :
9. Explain the Doctrine of Privity of contract and discuss the Exceptions to
the Privity of Contract.
10. What is the legal capacity of a party to enter into a Valid Contract?
Discuss the effect of minor's agreement.
11. How are contracts discharged? Explain the discharge of contract by
Accord and Satisfaction.
12. What is Specific Performance of a Contract? What are the contracts
that cannot be specifically performed?
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following :
13. A garments trader displayed a T-shirt in the show case of his shop. A
customer wanted to purchase the same but the trader refuse to sell it.
Can the customer argue that the display in the show case amounts to
offer and that he accepted the same, therefore the trader cannot refuse
to sell. Explain with reasons.
14. A minor entered into an agreement with a hotelier to have lunch and
dinner every day at a rate of Rs.100/- per day. His minority status was
not known to the hotelier the time of the contract. Thereafter, the
minor failed to pay the charges for one month. Can the hotelier make
the minor or his assets liable for recovery of the amount due? State
reasons for your answer.

15. 'X' enters into an agreement with 'Y' promising not to get married
during his life time. However 'X' gets married within six months from
the said contract. Can 'Y' sue 'X' in the circumstances? State reasons
for your answer.
16. 'A' issued a cheque to 'B' for Rs. One lakh. When 'B' presented the
same in his bank, the cheque was returned for 'Insufficiency of funds'.
Advise 'B' as to his rights under the Negotiable Instruments Act.

Part A · 6 marks

  1. Offer.
    2× in bank Topics: Essentials of a valid contract, offer and acceptance
    Year and frequency →
  2. Consideration.
    3× in bank Topics: Consideration, privity and standard-form contracts
    Year and frequency →
  3. Fraud.
    2× in bank Topics: Free consent: coercion, undue influence, fraud, misrepresentation and mistake
    Year and frequency →
  4. Wagering Agreement.
    6× in bank Topics: Lawful object, wagering, contingent, void and voidable contracts
    Year and frequency →
  5. Novation.
    6× in bank Topics: Discharge by performance, novation, remission and accord
    Year and frequency →
  6. Rectification of Instruments.
    4× in bank Topics: Rectification, rescission, cancellation and declaratory decrees
    Year and frequency →
  7. Temporary Injunction.
    3× in bank
    Year and frequency →
  8. Duty to mitigate damages.
    Topics: Damages, penalty and duty to mitigate
    Year and frequency →

Part B · 15 marks

  1. Explain the Doctrine of Privity of contract and discuss the Exceptions to the Privity of Contract.
    Topics: Essentials of a valid contract, offer and acceptance; Consideration, privity and standard-form contracts
    Year and frequency →
  2. What is the legal capacity of a party to enter into a Valid Contract? Discuss the effect of minor's agreement.
    Topics: Essentials of a valid contract, offer and acceptance; Capacity of parties and minor's agreement
    Year and frequency →
  3. How are contracts discharged? Explain the discharge of contract by Accord and Satisfaction.
    Topics: Essentials of a valid contract, offer and acceptance; Discharge by performance, novation, remission and accord; Quasi-contracts and quantum meruit
    Year and frequency →
  4. What is Specific Performance of a Contract? What are the contracts that cannot be specifically performed?
    Topics: Quasi-contracts and quantum meruit; Essentials of a valid contract, offer and acceptance; Recovering possession, specific performance and injunctions
    Year and frequency →

Part C · 10 marks

  1. A garments trader displayed a T-shirt in the show case of his shop. A customer wanted to purchase the same but the trader refuse to sell it. Can the customer argue that the display in the show case amounts to offer and that he accepted the same, therefore the trader cannot refuse to sell. Explain with reasons.
    Topics: Essentials of a valid contract, offer and acceptance
    Year and frequency →
  2. A minor entered into an agreement with a hotelier to have lunch and dinner every day at a rate of Rs.100/- per day. His minority status was not known to the hotelier the time of the contract. Thereafter, the minor failed to pay the charges for one month. Can the hotelier make the minor or his assets liable for recovery of the amount due? State reasons for your answer.
    Topics: Essentials of a valid contract, offer and acceptance; Capacity of parties and minor's agreement
    Year and frequency →
  3. 'X' enters into an agreement with 'Y' promising not to get married during his life time. However 'X' gets married within six months from the said contract. Can 'Y' sue 'X' in the circumstances? State reasons for your answer.
    Topics: Capacity of parties and minor's agreement; Essentials of a valid contract, offer and acceptance
    Year and frequency →
  4. 'A' issued a cheque to 'B' for Rs. One lakh. When 'B' presented the same in his bank, the cheque was returned for 'Insufficiency of funds'. Advise 'B' as to his rights under the Negotiable Instruments Act.
    Year and frequency →