Mid Term Examination, September- 2016
B.A.LL.B. (HONS.)
SEMESTER I
LAW OF CONTRACT-I
Max. Marks: 20 Max. Time: 1:30 Hrs.
Note: Answer any TWO questions out of three. All questions carry equal marks.
1. Pankaj puts the following advertisement in the local newspaper that was distributed on
Monday: "Motorcycle for sale. Excellent condition. Price: Rs 30000. Tel. 9668717865. Fax.
1902 652 652". On Tuesday morning, Rajan telephoned the number provided in the
advertisement. Pankaj was away at the time and the call was answered by Pankaj's girlfriend,
Elina, with whom Pankaj had just had an argument. Rajan explained to Elina that he was calling
in response to the advertisement and added: "I want to buy the motorcycle. I'll send a fax to
confirm". Elina replied: "Fine. I'll tell Pankaj when he comes back home". Rajan sent
immediately thereafter a fax stating: "I am interested in buying your motorcycle at the
advertised price. I assume it is registered". Pankaj's fax machine was not loaded with paper at
the time, so Rajan's message was not printed out. When Pankaj arrived home early Tuesday
evening, Elina said to him: "Your stupid motorbike isn't particularly popular. Only one person
has rung about buying it". Pankaj asked her if the person had provided his contact details, and
she replied "no". Pankaj, feeling irritated went upstairs to his study room where he discovered
that the fax machine was out of paper. He loaded it with paper, and received the print-out of the
fax from Rajan. He noticed that there was an email address in the letterhead used by Rajan, so
he immediately emailed Rajan stating: "I agree to your offer to buy my motorcycle". Rajan
received only part of this message due to a defect in the modem in his computer. The next day,
Rajan saw another motorcycle advertised for sale which appeared to be a better buy.
Advise Rajan whether he has already entered into a valid contract to buy Pankaj's motorcycle.
Discuss the essentials of a valid offer. (Marks
2. a minor aged 17, represented to a money lender that he is of 19 years old and then
asked for a loan of Rs. 20,000 stating that the amount is urgently required by him to compete
his Higher Secondary Education. The money-lender without making any further enquiry lent
the amount to Can the money-lender recover the amount from after two years?
Explain 'invitation to treat' with the help of case laws. (Marks
3. Write short notes on the following:- (Marks 5×2=10)
a. Minor's contract of service
b. Agreement