Mamta was the owner of a store which dealt in imported electronic toys. She had started the business in 1986 by renting a shop located in the upscale Connaught Place market. Her business kept on flourishing day by day as she had started advertising through the Internet as well as other electronic media. By 2003, the business reached to such a great height of success that she thought of taking help and support from her family. In the month of November 2003, she had put forth this proposal before her family. After a series of discussions within the family, it was decided that Mamta would likely take retirement in a couple of years and her 17-year old daughter Alya would help her run the business hence forth. In return, Alya would be entitled a monthly stipend of 5,000. It was decided (orally) that Mamta would deposit the amount in a recurring deposit (RD) bank account in her own name and handover the total amount to Alya she retired. However, when Mamta retired at the end of the year 2015, she decided to donate the otal deposited amount to a local charitable dispen and handed over the store jointly to her daughter and son, Jignesh, who had returned to India after completing his BBA from abroad. It was also resolved hat both, the sister and the brother, would run the business jointly and share the income thereof equally. Although Mamta, being the sole owner of the shop, had the exclusive right to give anything in charity as per her will and wish, but still this seemed in contradiction with her words and promise to Alya to allow her a fixed incentive for helping her in running the business. As per the law of contract. an employee can take refuge in law if the employer breaches the terms of the contract of their employ ment. One can understand that in this entire inci dent, Mamta had involved her daughter in order to take help from her, and, in return, had promised to pay the latter a sum of 5,000 per month; and now in violation of her promise, she wished to donate to charity the amount so accumulated in the RD account. Alya's friends suggested her to deal with this issue in the context of law of breach of contract. They convinced Alya that the act of her mother retracting on her promise is tantamount to breach of contract made with Alya. They also informed her that an employee has got exclusive right to approach the court of law, should the employer not fulfil the promise made with the former. Even though charity is a good deed, but with this decision of Mamta, she has deprived her daughter Alya from her right to compensation for the work she had performed in running the business.

1. Where do you think Mamta has gone wrong in the entire incident?

2. What advice would you have given to Alya keeping in mind her relationship with her mother?

3. Can a case be filed against Mamta for a breach of contract?

4. How do you think Alya should handle this situation?

5. Was the advice extended to Alya by her friends to approach the court of law genuine?

6. Suppose you are Alya's lawyer and Alya comes to you to seek your advice. What would you advise her and why? Which provision of law would you cite from the Contract Act to support your advice?