1. A agrees to sell to B certain goods shipped from Australia to Chennai.

The goods
so shipped by the dealer in Australia have been destroyed by fire which occurred
in the ship while the ship was on way to Chennai, just three days before the
agreement to sell the goods was entered into by A and B. The goods, therefore,
did not reach Chennai on the expected date. The shipping company in the
meantime informs A about the goods being destroyed by fire. This information
did not reach A. As a result, neither A nor B was aware of the loss. A is, therefore,
unable to deliver the goods to B on the dates so agreed upon. B wants to claim
damages from A for the breach of the contract. Decide.
2. Sandeep enters into a contract to sell his house to Anil for Rs.10 lakh. It was only
later that he came to know that it was estimated to be worth at least Rs.25 lakh.
Immediately thereafter, he preferred to back out and refused to perform the
contract, on the plea that the sale price was too inadequate, and that Anil must
pay him Rs. 15 lakh more, when alone he will sell his house to him. Thereupon,
Anil filed a suit against Sandeep to perform the valid contract entered into
between them. What are the chances of Anil winning the case? Give reasons for
your answer.
3. X transferred his house to his daughter M by way of gift. The gift deed, executed
by X, contained a direction that M shall pay a sum of Rs.5000/- per month to N
(sister of executant). Consequently M executed an instrument in favour of N
agreeing to pay the said sum. Afterwards, M refused to pay the sum to N saying
that she is not liable to N because no consideration had moved from her. Decide
with reasons.
4. A entered into a contract with B to deliver certain goods to B. A offered the
goods to B at a proper time and place but B refused to accept the goods. In this
case, what are the rights available to both the parties as per Contract Act?
5. A owes Rs.60,000/- to B. Before clearing his liability, A dies leaving an estate
worth Rs.40,000/-. In this case, A’s legal representatives are liable for what
amount?
6. A agreed to supply certain goods to B. As a result of an increase in the raw
material costs, it is no longer profitable for A to supply them at the agreed rate. A
refused to perform the contract on the argument of impossibility. Is argument
justifiable? Why?
7. A entered into an agreement with B to deliver certain goods to be manufactured
in his factory. The goods could not be manufactured because of the strike by the
workers and A failed to supply the goods to B. Decide whether A can be
exempted from liability? What would be the status of the agreement if B takes
the goods from some other manufacturer?