DAMO DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM

SEMESTER-II Repeat End – Semester Examinations, October -2024

Law of Contracts – I and Specific Relief Act (2-6)
Instructions:
1. Answer all questions.
2. Any over writing in answering question No. I will invalidate the relevant answer.
3. Do not write anything on the question paper. It will be treated as malpractice.
Total Marks - 50
Time: 2½ Hours
I. Choose the correct answer from the following MCQ’s (20 x 0.5 marks = 10 marks)

1. ------ type of Damages are awarded with a view to- Punish the defendant.-Not solely with
the idea of awarding compensation to the complainant.
A. General Damages
B. Consequential Damages
C. Vindictive Damages.
D. Nominal Damages

2. A contracts with B to execute certain building work for a fixed price. B is to supply the
scaffolding and timber necessary for the work. B refuses to furnish the work and B gets
responsible for making compensation to A for any loss caused to him as regards the non-
performance of the contract.
A. Mutual and independent
B. Mutual and Dependent
C. Mutual and concurrent
D. All of the above

3. X promises to pay Y, Rs. 100,000 if he marries Z, the prettiest girl in the neighbourhood.
Unfortunately, Z dies in a car accident. Since the happening of the event no longer
possible, the agreement is-----------
A. Voidable agreement
B. Void agreement
C. Void contract
D. Discharge by Breach

4. Though Indian Contract Act, 1872 has not defined Quasi contracts, -------------deals with
‘certain relations resembling those created by contracts’.
A. Section 68 and 70
B. Section 68 and 71
C. Section 68
D. Section 68-72

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5. In a-----------------, the performance of the promisor is dependent on the fulfillment of
certain conditions. These contracts create an obligation on the promisor only if the
conditions collateral to the contract are met.
A. contingent contract
B. wagering agreement
C. uncertain agreement
D. collateral contract

6. -------case is an English decision establishing the rule for the determination

of consequential damages in the event of a contractual breach.
A. Ashby v White (1703) 92 ER 126,
B. Hadley v Baxendale, [1854] EWHC J70
C. Charter v Sullivan [1957] 2 QB 117
D. Simpson v. The London and North-Western Railway Co. (1876) 1 Q.B. 274

7. Quantum meruit is a Latin phrase and is related to the Indian Contract Act, 1872. It means
-----------
A. What one has earned or as much as he has earned.
B. Payment on completion on total work.
C. Payment for indivisible work.
D. Payment for both divisible and indivisible work.

8. If a person pays the money on someone else’s behalf which the other person is bound
by law to pay, then he is entitled to reimbursement by the other person.
A. Section 71 – Responsibility of Finder of Goods
B. Section 72 – Money paid by Mistake or Under Coercion
C. Section 70 – Obligation of Person enjoying the benefits of a Non-Gratuitous Act
D. Section 69 – Payment by an Interested Person

9. Section 14 of the Specific Relief Act, 1963 mentions certain contracts which cannot be
specifically enforced which are as follows:
1. When there is a non-performance for the act, and money is adequate compensation.
2. A contract that is full of many details and its nature is personal to the parties, these
cannot be specifically enforced.
3. The contract requires continuous work for which the court cannot supervise.
4. The court whose nature is determinable

A. Only 1
B. 1, 2, 3 & 4
C. 1&2
D. 1, 2 & 3

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10. Actual damages are intended to provide the monetary amount necessary to replace what
was lost and nothing more. Usually, compensatory damages are awarded in civil court
cases in order to compensate for damages, injury or another incurred loss.
A. Medical and hospital bills
B. Medical treatments
C. Rehabilitation expenses and physical therapy
D. All of the above

11. Which is not a requirement of Section 7 of the Specific Relief Act, 1963, are as follows:
A. The person does not need any right to get the possession of property
B. There must be a presence of movable property which is capable of being delivered or
disposed of.
C. The person suing must have the possession of the property in question.
D. There may be an existence of a special or temporary right on the property.

12. By whom contracts can be performed under Section 40 of the Indian Contract Act, 1872
where there involved talent or expertise or skill?
A. Promisor himself
B. Agent
C. Legal Representatives
D. All of the above

13. Under section 14, Consent is said to be free when it is not caused by
1. Mistake
2. Coercion
3. Undue influence
4. Fraud
5. Misrepresentation

A. 1, 2 &3
B. 2,3,4&5
C. 1,2,3,4&5
D. 1,3,4&5

14. ________ are awarded where there is only a technical violation of the legal right, but, no
substantial loss is caused thereby.
A. General Damages
B. Consequential Damages
C. Vindictive Damages.
D. Nominal Damages

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15. -----of the Contract Act renders void any clause in a contract which may restrict
absolutely the right of any party to enforce his rights under or in respect of a contract by
the usual legal proceedings or which limits the time to enforce his rights.
A. Section 28
B. Section 27
C. Section 26
D. Section 29

16. A makes a contract with B to buy B’s horse if A survives C. This contract cannot be
enforced unless C dies in A’s life time.
A. Contracts contingent when the event does not occur
B. Contracts contingent dependent on the occurrence of an uncertain event.
C. Contract is contingent upon happening of a specified event within a fixed time.
D. Contract is enforceable immediately upon making.

17. Under -------when an agreement is discovered to be void, or when a contract becomes,

void, any person who has received any advantage under such agreement or contract is
bound to restore it, or to make compensation for it, to the person from whom he received
it.
A. Section 64
B. Section 66
C. Section 65
D. Section 62

18. Section 37 of the Indian Contract Act, 1872 speaks about ---------
A. The performance of the promisor
B. The performance of the acceptor
C. The performance by the third parties
D. Obligations of the parties

19. Under section 23, forbidden by law means an act forbidden by --------
A. Indian Penal Code
B. special legislative enactments
C. Regulations and orders
D. All of the above

20. The expression “public policy” means and includes a wide range of topics such as ----
1. trading with the enemies in times of war
2. stifling prosecutions
3. champerty and maintenance
4. Trafficking in public offices

A. All the four

B. Only two and three

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 C. Two, three and four
D. Only four

II. What is an Agreement in Restraint of legal proceedings? Explain Section 28 of Indian

Contract Act, 1842 in detail.
(1x 10 marks = 10 marks)
III. The plaintiff entered into an agreement to write a book for the defendant. On completion
of the work, 100 pounds was agreed to be paid. The plaintiff started writing the book and
completed a large portion of it. Afterwards, the defendant decided not to proceed with the
work and refused to pay money to the plaintiff, even though the plaintiff was ready and
willing to perform the work. How can a plaintiff recover his loss? Solve the case with the
help of relevant laws and judicial decisions.
(1x 10 marks = 10 marks)

IV. Explain the facts and judgement in detail of “Car &Universal finance Co ltd v Caldwell,
[1965] 1 QB 525”.
(1x 10 marks = 10 marks)

V. Answer any two of the following (Out of the three) (2 x 5 marks = 10 marks)

a) Offer of Performance/Tender
b) Illegal Agreements
c) Rectification of Instrument under the SRA 1963

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