Page 49 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes 4. Every person has a right to have recourse to the usual ............................. .

5. Section 28 renders void another kind of agreement, namely, whereby an attempt is made
by the parties to restrict the time within which an action may be brought so as to make it
shorter than that prescribed by the ............................. .

4.8 Review Questions

1. “Insufficiency of consideration is immaterial but an agreement without consideration is
void”. Comment.
2. Consideration may be present, past or future. Illustrate.
3. Are there any exceptions to the rule “No consideration, No contract”.

4. “A stranger to a contract cannot maintain a suit but a stranger to consideration can do so”.
Comment.
5. The term consideration is used in the sense of ‘quid pro quo’ or ‘something in return’. Does
this ‘something’ to be necessarily in terms of money? Illustrate your answer.
6. A, being in dire need of money, sells his new car purchased two months ago at a cost
of ` 1,72,000 for ` 11,000. Afterwards A seeks to set aside the contract on the ground of
inadequacy of consideration. Will he succeed?
[Hint: No]

7. A, Band C enter into a contract, under which A promises both Band C that if B will dig A’s
garden, he (A) will give ` 50 to C. Can C compel A to pay the money on B’s digging A’s
garden according to the terms of the contract? Give reasons.

[Hint: Yes]
8. A’s uncle in a sudden display of generosity promises him a watch as a gift on his next
birthday. If the uncle fails to, give the watch’ can A do anything about it ?
[Hint: No]

9. A’s scaffolding fell down on his neighbour, B, who was injured. B threatened to bring
suit against A unless the latter paid him ` 500 within ten days as compensation for his
injuries. A promised but later refused to pay, claiming that there was no consideration for
his promise. Can B recover the amount?
[Hint: Yes]

10. A Muslim lady sued her father-in-law to recover arrears of allowance payable to her by
him under an agreement between him and her own father in consideration of her marriage.
Will she succeed?

A’s car breaks down on G.T. Road. He asks B, a passing motorist, to tow the car to nearest
garage. B tows the car and in return A promises to pay B at the garage ` 200 as payment for
his trouble. Is A bound by his promise?
[Hint: Yes (Sec. 25 (2)].
11. A agrees for a sum of ` 5,00,000 to construct for B a building, according to plans and
specifications. When A has completed half the work he threatens to quit unless B agrees

to pay him an additional ` 50,000. B so promises, A completes the work and asks for the
additional sum. Decide.
[Hint: A cannot recover the additional sum of ` 50,000 as B’s promise to pay the additional
sum was without consideration].

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