BUSINESS LAW

CASE STUDIES
LAW OF CONTRACTS
Case Study #1
Ajay offers to sell his book to Biswas for
Rs. 1000/- and Biswas says that he
would buy it for Rs. 900/-

- Offer, followed by a counter offer

Case Study #2
Jagdish offers to buy a book from Anil
for Rs. 1000/-Anil says that he will sell a
set of four books to Jagdish for Rs.
360/-

- Two independent offers, may result into

a contract if accepted
Case Study #3
Karan enters into a book stall and refers to the catalogue of
books kept over there. He notices the book of his choice marked
at price Rs. 200/-. He tells the shopkeeper to give that book and
tenders him Rs. 200/-.

- Invitation to offer, followed by an offer

Case Study #4
Manish offers to buy from Parth a
particular piece of land on the payment
of price on a day in future at Manish’s
option.
-Loose offer, terms and details not given
Case Study #5
Chirag offered his house to Manas for Rs. 800,000/- with the
condition that the possession of the house shall be given on
a particular day. Manas agreed to buy it for Rs. 800,000/-
varying the date of possession.

- Offer followed by qualified/conditional acceptance

Case Study #6
Arun publishes an offer that, he would sell his house
to anyone who would buy it for Rs. 50,00,000/-.
Deven accepts this offer first and agrees to buy it for
Rs. 50,00,000/-.

- General offer, followed by acceptance

Case Study #7
A draft agreement for supply of coal was sent by MD of
Indus Coal Co. to the manager of a railway company for
his acceptance. The manager wrote the words “approved”
on the draft agreement, but kept the document in the
drawer by oversight.

- Uncommunicated acceptance
Case Study #8
Rajesh proposes to buy Baxi’s house for
Rs. 50 lakhs on or before 15th August.

- Loose offer, no year specified

Case Study #9
Rajat agrees to sell his laptop worth Rs.
50,000 to Rajan for Rs. 20,000

- Acceptance to offer, valid contract

Case Study #10
■ CSK offers captaincy to Dhoni for IPL
2024 on payment of Rs. 10 crores +
2% of the amounts received from
co-sponsors

- Perfectly valid offer

Case Study #11
Akshay being in debt to Saif, the
money-lender of his village, contracts a
fresh loan on terms which appear to be
unconscionable.

- Undue influence, voidable

Case Study #12
■ A promise, in writing and signed by the
promissor, to pay a time barred debt is
enforceable
■ True
Case Study #13
Gul and Bul, being traders, enter upon a
contract. Gul has private information of a
change in price which would affect Bul’s
willingness to proceed with the contract.

- Mere silence does not constitute a fraud

Case Study #14
Aditya, Ankur and Saksham enter into an
agreement for the division among them of
gains acquired, or to be acquired by them by
fraud.

- Unlawful consideration, fraud

Case Study #15
Paresh promises to obtain for Brijesh an employment in the
public service, and Brijesh promises to pay Rs. 1 lakh/- to
Paresh.
- Opposed to public policy, unlawful consideration

What is your answer if the employment in TCS Limited is

promised?
- Valid for private sector
Case Study #16
Raju promises Mr. Chor to drop a prosecution
which he has instituted against Chor for
robbery, and Chor promises to restore the
articles stolen.

- Unlawful object, void

Case Study #17
An Auto driver finds Mrs. Kanan’s purse
and gives it to her. Kanan promises to
give Auto driver Rs. 5000/-.

- Promise is binding
Case Study #18
Manibhai offers to sell to Jaggu “a
hundred tons of oil”.

- Loose offer, no details

Case Study #19
Manibhai, who is a dealer in coconut oil only,
offers to sell to Jaggu “one hundred tons of
oil @ Rs. 10,000 per ton”.

- Perfectly valid offer

Case Study #20
Amit offers to sell to Chintan “all the grain
as on the date of agreement, in my granary
at Ramnagar for Rs. 10 lakhs”.

- Perfectly valid offer

Case Study #21
Ranjan sells his property to Anand at a consideration of Rs. 1
crore. As per the agreement Anand was also required to pay
to Ranjan’s friend, Sanjay, every month, 5% of rents
collected. For first 6 months Anand pays to Sanjay the
agreed amount but defaults in subsequent months. Can
Sanjay bring a legal action against Anand?

- Beneficiary can also bring legal action even if not a party to

the contract
Case Study #22
■ Mr. Oldie, a man enfeebled by age is induced by Mr.
Cure’s influence over him as his medical attendant, to
agree to pay Mr. Cure an unreasonable sum for his
professional services.
■ Here Mr. Cure employs- ?

- Undue influence
Case Study #23
Harvey telegraphed to Facey, “Will you sell us Bumper hall Pen? Telegraph
lowest Price.”
Bumper Hall Pen was a piece of land.
Facey replied, “Lowest price for Bumper hall Pen $ 1000.”
Harvey telegraphed, “We agree to buy Bumper Hall Pen for $ 1000 as asked
by you.”
Harvey contended that this exchange of telegrams amounted to offer and
its acceptance.

- Invitation to offer, followed by an offer, no acceptance

Case Study #24
■ Mr. Srinivasan invites Salman Khan to his daughter’
wedding reception and dinner party. Srinivasan makes
special security arrangements for Salman. Salman
however does not turn up for the reception. Srinivasan
wants to sue Salman for the security expenses he incurred

- Social engagement, not binding

Case Study #25
Raju, a minor, under a contract of sales
delivered goods to his buyer.

-Minor is not legally bound to pay if he’s

the buyer, but he cannot be deprived of
the benefits if he is a seller
Case Study #26
■ Mr. S, a secretary of a charitable institution promised Mr. A
that through his contacts he would secure Padmashri award
to ‘A’ if he (A) would donate Rs. I lakh to his institution.
Accordingly A donated but the promise of Padmashri award
never materialised. Can A successfully sue S?

- Opposed to public policy

Case Study #27
Mr. Dalal sends an offer to Carwala to sell his second hand car for Rs.
40,000 with a condition that if Carwala does not reply within a week’s
time, Dalal shall treat the offer as accepted.
Is Mr. Dalal correct in his proposition?
- Acceptance cannot be assumed.

What shall be the position if Carwala communicates his acceptance

after one week?
- Offer has lapsed after one week, acceptance has no value
Case Study #28
■ X by a letter to Y offers to sell his car for Rs. 2
lakhs. At the same time Y by a letter to X offers to
buy the car for Rs. 2 lakhs. Is it an offer and
acceptance and hence a contract?

- Cross offer, no acceptance

Case Study #29
■ A father executed a registered deed on a
stamp paper in favour of his son promising a
prize of Rs. 50,000 if the son could get the
admission to SPJIMR

- Natural love and affection, father is bound

Case Study #30
■ A, a poor widow, borrowed money from a moneylender @ 100%
rate of interest. On due date the poor lady defaulted in payment of
interest as well as repayment of loan. The moneylender therefore
sues her. The poor lady is seeking to avoid the contract in totality
on the ground of undue influence. Advise her

- Lady is liable to pay the principal amount plus interest prevailing in

the market
Case Study #31
■ Kallu engages Mishra, an artist to paint a portrait of
his uncle and promises to pay Mishra Rs. 10,000
for the work. Later Kallu refuses to pay stating that
consideration must move from his uncle.

- Party not part of contract cannot be liable

Case Study #32
■ Mr. Payer promises to pay an existing debt punctually
on due date if, Mr. Receiver, the creditor, gives him a
discount. Is this consideration valid?

- No consideration, not valid. If borrower pays before

due date, consideration may be valid
Case Study #33
■ Advocate asked his client to pay 50% of the
amount recovered from the suit filed against
the borrower, in addition to his usual fees

- Unethical practice
Case Study #34
■ Shruti posts her letter of acceptance to Kirti on January 28,
2024. Kirti received the letter on January 30, 2024.
In the above case Kirti can withdraw her offer any time before
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- Anytime before 28th Kirti can withdraw, Shruti can withdraw

anytime before 30th
Case Study #35
■ Shruti posts her letter of acceptance to Kirti on
January 28, 2024. Kirti received the letter on January
30, 2024.
In the above case the contract is binding on Kirti on
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- 28th