Q1- Shambu Dayal implemented a self-service system in his store. Smt.Prakash entered the store, took a basket, and added items to the basket. When she went to the teller to make payment, the teller refused to accept her money. Can Shambu Dayal be forced to sell the items to Smt.Prakash? Please decide.
Answer: Invitation to offer - It is important to distinguish an offer from an invitation to offer. An offer is a final expression of willingness by the offerer to be bound by the offer if the other party accepts it. On the other hand, an invitation to offer occurs when a party proposes certain terms for negotiation without expressing a willingness to be bound by those terms. The display of articles with prices in a self-service store is simply an invitation to offer, not an actual offer for sale. Acce
...ptance of the displayed price does not create a contract. In this case, Smt.Prakash's selection and approach to the teller with payment constituted an offer to purchase the selected items. If the teller does not accept the price, the interested buyer cannot compel him to sell.
Q2- Ramaswami offered to sell his house to Rajiv, who accepted the offer by post. The next day, Rajiv sends a wire retracting his acceptance.Please analyze the cogency of the credence in the visible radiation of the following:
- Answer: The issue involves the communication and timing of acceptance and its revocation. According to Section 4 of the Indian Contract Act of 1872, the communication of an acceptance is complete when it is known by the proposer. An acceptance can be revoked at any time before it is communicated to th
acceptor, but not afterwards.
a) The revocation of acceptance was received by Ramaswami before the letter of acceptance.
Ans - Yes, the revocation of acceptance by Ramanathan (the acceptor) is valid.
b) The revocation and the letter of acceptance were received together.
Ans - If Ramaswami opens the revocation first (which is usually the case with a rational person) and reads it, the acceptance is revoked. If he opens the letter first and reads it, revocation of acceptance is not possible as the contract has already been concluded.
Q3 - X agreed to become an assistant for 5 years to Y, a doctor practicing in Ludhiana. It was also agreed that during the term of the agreement, X would not practice on his own in Ludhiana. At the end of one year, X left Y's assistantship and started practicing on his own. Referring to the provisions of The Indian Contract Act of 1872.An individual can be restrained from making something if it falls under the category of restraint of trade, concern, or professional, as specified in section 27 of the Indian Contract Act, 1872. However, if the understanding is related to service and restricts the individual from working for any other employer to promote a directly competing business, it is not considered restraint of trade. Therefore, X can be prevented from practicing independently in Ludhiana through an injunction. Any agreement that explicitly states its nullity is not valid.
In another scenario, Akhilesh made an agreement with Shekhar to provide him with 5,000 bags manufactured in his mill. However, due to a worker strike, the bags could not be produced and Akhilesh failed to deliver them to Shekhar. The question is
whether Akhilesh can be exempted from liability under the provisions of the Indian Contract Act, 1872.
According to Section 56 of the Indian Contract Act, 1872, if the performance of a contract becomes impossible or improper after its formation, the contract becomes void. This is known as "supervening impossibility," which refers to impossibility that arises after the formation of the contract. However, impossibility of performance is generally not an excuse for non-performance. This means that when a person has promised to do something but circumstances make it impossible or impractical, they are still liable for their promise.he must execute his promise unless the Performance becomes perfectly impossible. Whether a promise becomes perfectly Impossible depends upon the facts of each instance. The public presentation does not go perfectly impossible on history of work stoppages.lockout and civil perturbations and the contract in such a instance is not discharged unless otherwise agreed by the parties to the contract. In this instance Mr. Akhilesh could not deliver the bags as promised because of work stoppage by the workers. This trouble in public presentation cannot be considered as impossible of performance drawing Section 56 and therefore Mr. Akhilesh is apt to Mr. Shekhar for negligence of contract.
Q5-Miss X. a movie actress agreed to work exclusively for a period of 2 years for a movie production company. However, during the said period she enters into a contract for another movie manufacturer. Discuss the rights of the aggrieved movie production company under The Indian Contract Act, 1872.
Answer: Where a party remarks a breach of negative term of a contract i.e., where he does something which he promised not to do, the aggrieved party
can go to court which may issue an order preventing him from doing what he promised not to do. Such an order of the court is known as injunction. Since Miss X has agreed to work exclusively for the movie production company for a period of two years.The movie production company, who feels wronged, can go to a tribunal to obtain an injunction that prevents Miss X from working for a different movie production company.
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