1. Answer the following questions based on the caselet:

(i) Rita owns a boutique. Priya is learning fashion designing from her. After 2 years of training under Rita, Priya enters into an agreement with her that she will not open a boutique in the same area where Rita operates. Is the agreement entered into by Priya with Rita valid? Justify your answer.

(ii)A and B enter into a contract under which A was supposed to supply to B 100 pieces of pashmina shawl. A delivers 100 pieces of shawl to B but B realises they are not of the pashmina quality. Does the contract become voidable in this case? Justify your answer.

(iii) Priya guarantees payment to Rita for playing guitar for selected 5 days of a month

(from Monday to Friday) at a music show organized by Anagha. Rita performs from

Monday to Friday. Later, Anagha requests Rita to perform on Saturday as well but

Anagha does not pay Rita for the Saturday performance. Considering Priya is the

guarantor, is she liable to pay Rita for the Saturday performance? Justify youranswer

(iv) A real estate agent is selling a property to 'A' that has a major defect but the agent is

unaware of the defect because the owner 'B' of the property told the agent that there is

nothing wrong with the house. Hence, A and B get into a contract. Later, A comes to

know from other sources about the defect. Can A claim for breach of contract? Justify answer

2. Answer the following:

(i) Explain the concept of ZOPA and MLATNA with suitable examples of your own.

(ii) The CEO of a company wants to understand the difference between adjudication

oriented ADR methods and settlement oriented ADR methods. He also wants to

understand the pros and cons of institutional and ad hoc arbitration. What is the difference