1. A and B are friends from college. They met on the weekend.

During this meeting, A expresses

concern about her business which is incurring losses. B, an investment consultant, offered to
help her come out of this challenging situation. After this discussion, both A and B carried on
with dinner. The next day B starts working on A’s business problem. She raises an invoice of INR
50,000 after one month for all the hard work she has done. A refuses to pay. Is this an
enforceable contract?

ANS

No, this is not an enforceable contract. According to sec.2(h) of The Contract Act,1872 “An
agreement enforceable by law is a contract.” Pre-conditions for a contract are agreement and
enforceability. For an agreement to be valid one party makes an offer to the other party and
that other party signifies his assent thereto. Here, as per the question B offered to help A to
come out of the challenging situation but it is not mentioned that A accepted the offer. So, here
is not any agreement. Therefore, no contract. Hence, this is not enforceable contract.

Section 25 of the Indian Contract Act :

Agreement without consideration, void, unless it is in writing and registered or is a promise to
compensate for something done or is a promise to pay a debt barred by limitation law
Section 25 (2) The exception to the section is not applicable as there is no promise of
compensation
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2. A starts a sole proprietorship business selling filtered coffee. The product is called ‘A’s coffee.’
She decides to opt for both B to B and B to C business. How will her contracts be different for
each trade?

ANS:

B2B contract

A written contract agreed by both the parties needs to be formulated consisting of all the
details of the business and client side:

Specifications of the product , quantity, price , quality, Payment options

Details of responsibilities and deadlines.

IP ownerships

Dispute Resolution Mechanisms

Non Disclosure Agreements

Liability for damages: specifying the amount and other clauses in case of breach of contract.

Scope of the contract

 B2C contract

A written contract is not required between a customer and the business.

Every purchase and a valid transaction will be a contract in itself

Transfer of ownership

Warranty

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3. A daughter asks her mother to buy a particular brand of chocolate. The product is not available
in the market, and hence the mother buys another equally good brand of chocolate and gives it
to her daughter. Is there is a contract in this situation?

ANS:

Rebuttalable Presumptions are not valid contracts , this needs to be in written form to be a
valid contract. Social and domestic if not in written explicitly are not valid contracts

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4. A orders pizza for an event from the best pizza company in the country. As a part of a
promotion, the pizza company decides to provide pizzas free of cost. The goods are delivered ½
hr late, and the pizza is raw. Can the pizza company be held liable for committing a breach of
contract?

ANS:

An explicit Offer is made and accepted when the pizza is ordered therefore it is a promise
therein an agreement enforceable under law. It is a contract.
The pizza must be cooked as it is in implicit offer therefore company is in breach of contract.

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 5. A owns a Maruti car and drives Uber during spare time. The engine of the vehicle seizes during
the warranty period. Does A have any rights against Maruti?

Ans:

A car that is purchased is the sole proprieter

Terms and conditions do not specify that warranty of commercial vehicles becomes void
therefore in this case it cannot be a breach of contract. A has rights against Maruti.

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6. Indian Income Tax authorities noticed Vodafone Ltd for their asset acquisition of Hutchison Essar
Ltd, to which they denied payment? Is Vodafone committing a breach of a contract?

Ans

Breach of contract under section 25 of the Indian Contract act 1872 and offer was made which
was accepted. This is a promise under consideration therefore an agreement forceable under
law. Therefore, it is a breach of contract.