Contract Act I: Mumbai University (Question Paper May 2019)

(3 hours)                                                           (100 marks)

Note: Answer all questions.

Q1. Answer in one or two sentences.

(a) When consent is not set to be free ?
(b) Define coercion ?
(c) What is the exception to agreement in  restraint of trade ?
(d) Give to instances of invitation to offer ?
(e) When time is essence for the performance of the contract ?
(f) Write two Clayton’s rules ?
(g) Who can sue for recovery of performance of the contract ?
(h) Under what circumstances court can order for rectification of instruments ?
(i) Against whom declaratory decree is effective ?
(j) What are the different types of injunctions ?

Q2. Write short notes on (any four)

(a) Novation
(b) Wagering agreements
(c) Anticipatory breach of the contract
(d) Doctrine of strict construction
(e)Mandatory injunction
(f) Specific performance of the contract

Q3. Answer the following giving reasons (any two)

(a) A purchases a steamer ticket. On the back f the ticket, a condition has printed that the company will not be liable for loss to the passenger or his luggage. On the face of the ticket, there was no indication that some conditions have been printed on the back of the ticket. The luggage of “A” is lost due to negligence of the staff of Steamer.
1) What is “reasonable notice of terms” under Standard form of contract ?
2) Can the company be held liable for the loss ?

(b) “X” agreed to sell his car to “Y”  the wort of which is Rs. 4,00,000 for Rs. 10,000. X’s consent to the contract is freely given. Subsequently X denied selling his car to Y contending that the consideration was inadequate. Therefore the agreement is void.
 1) When the contract can be avoided on the ground of inadequacy of the consideration ?
2) Whether Y succeeds in the case ?

(c) Ram files a suit against Laxman for declaration that he is entitled to receive Rs. 10,000. However, he did not pray for recovery of the said amount and interest on the amount from B.
 1) What is the declaratory decree ?
2) Can declaration be ordered in the above case ? Give reasons ?

Q4. Answer the following (any four)

a) Define proposal. What are the essentials of a valid proposal ?
b) “Certain relations resembling those of contract”, explain ?
c) Discuss about the doctrine of frustration and what are specific grounds of frustration ?
e) What is rescission of contract ? When rescission can be ordered by the court and limitations on the right ?
f) Discuss the law relating to cancellation of instruments under the Specific relief Act ?

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