Q.1:

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