a) Reference: This case study is related to the Contract Act 1872, Free Consent, Capacity of parties or Mode of Discharge of contract and so on...... b) Decisions: Valid, void, Illegal, Type of offer or Kind of Contract c) Reasons: A brief summary as to justify to your supposed answer Q.1: (a) Under the provisions of the Contract Act, 1872 'Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject'. Describe the circumstances in which a person may not be able to enter into a contract, despite meeting the above conditions (b) Jamal threatened Rafia to murder her son Atif if she did not sell her house to Mujahid. Rafia did as she was told Under the provisions of the Contract Act, 1872 comment on the validity of the above contract (c) If Rafia has received some advance is she bound to return? Q.2: (a) Lakhani Traders agreed to supply cotton yarn to Faraz Textile Limited at a fixed price for one year. Three months after the formation of the contract the price of yarn increased sharply, making it commercially unviable for Lakhani Traders to continue the supply at the agreed price. Therefore, they terminated the contract on the ground of difficulty/impossibility of performance. Under the provisions of the Contract Act, 1872 briefly describe: i. Whether the contract would be discharged under the above circumstances. ii. What would be your decision if Lakhani Traders were importing yarn and Government has imposed a ban on its import? (b) A wrote to B offering to sell him 800 tons of rice at Rs.70 per ton. On the same day B wrote A to purchase 800 ton at Rs.70 per ton. Identify the type of offer, also mentioned that contract between them will be formed or not with reason Q.3: Under certain special conditions, obligations resembling those created by a contract are imposed by law although the parties have never entered into a contract, in view of the provisions of the Contract Act, 1872 describe the conditions which must be fulfilled for claiming the amount in each of the following cases: i. Baqir supplied a jacket to Sultan in order to save him from cold weather, Sultan who was a minor agreed to pay Rs, 2000 for the jacket although its market price was Rs, 1500. What amount he can charge and from whom? ii. Rohit, a.tenat, who paid the electricity bill of Shoukat without being asked, is now demanding payment from Shoukat. Can Rohit claim the money or not? Justify with reason. iii. Sami, a coolie picked up the goods purchased by Nadia from the supermarket and look them to her car. Nadia did not object to it. Sami demanded service charges from Nadia. Will Nadia pay or not? Justify, also mention the kind offer/contract Q.4: (a) A is unpaid seller of bike for Rs, 10000, B, the buyer, defaulted in payment. A, without giving notice to B, re-sold the bike to C for Rs, 12000. Give short but reasoned answers to the following questions. i. Can A legally re-sell the bike to C without giving any notice to B? ii. Who, A or B is entitled to the surplus of Rs, 2000. In the sale proceeds of re-sale to C? (b) X agrees to sell to Y 2000 kg of mangoes @ Rs 15. Per kilo if such quantity is produced in his farm in the next season Give short but reasoned answers to the following questions. i. What type of agreement is made between X and Y? ii. What is the kind of goods dealt with in this agreement? Q.5: (a) X sells by auction to Y a horse which X knows to be unsound. The horse appears to be sound but X knows about the unsoundness of the horse. Is this contract a valid in each of the following alternative cases. i. X says nothing about the unsoundness of the horse to Y ii. If y says to X 'if you do not deny it, I shall assume that the horse is sound' X says nothing (b) X buys a painting believing it to be worth Rs 100000 while in fact it is worth only Rs 10000. Is it valid contract? (c) Ghazala, the wife of Naseer is ready to sue her husband for maintenance allowance, naseer agreed to pay her a monthly allowance and Ghazala forebears to sue him, also mention if naseer says that the said amount will be paid by naseer sister (zarganoon) and her wife agreed, and what option will be available to Ghazala if the Zarganoon's cheque way dishonoured