CONTRACT ACT A872 PAST PAPERS
Q.1 what is the legal effect of accepting performance from third party explain with related sections?
Q.2 what agreements are contract explain valid contract with 3 examples?
ANS: all agreement are contract if they are made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Valid contract: an agreement made for lawful purpose and lawful objects with free consent of parties
competent to contract according to the law to which they are subject is a valid contract.
Example: A, a carpenter, contracts with B, a hotel manager, to make ten sets of tables for his hotel for
fifty thousand rupees. This is a valid contract.
Suppose a person A agrees to pay a sum of Rs. 10,0000 to a person B for an antique chair
You sign to buy a blue house, and the house is blue
Q.3 Define consent, free consent, misrepresentation and fraud?
ANS: "Consent” defined
13. Two or more persons are said to consent when they agree upon the same thing in the same sense.
"Free consent" defined
14. Consent is said to be free when it is not caused by-
(1) Coercion, as defined in section 15, or
(2) Undue influence, as defined in section 16, or
(3) Fraud, as defined in section 17, or
(4) Misrepresentation, as defined in section 18, or
(5) Mistake, subject to the provisions of sections 20, 21 and 22. Consent is said to be so caused when it
would not have been given but for the existence of such coercion, undue influence, fraud,
misrepresentation or mistake.
"Misrepresentation" defined
18. “Misrepresentation" means and includes–
(1) The positive assertion, in a manner not warranted by the information of the person making it, of that
which is not true, though he believes it to be true;
(2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing
it, or any one claiming under him, by misleading another to his prejudice or to the prejudice of any one
claiming under him;
(3) Causing, however innocently, a party to an agreement to make a mistake as to the substance of the
thing which is the subject of the agreement.
"Fraud" defined
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17. "Fraud" means and includes any of the following acts committed by a party to a contract, or with his
connivance, or by his agent, with intent to deceive another party thereto or his agent, or to induce him
to enter into the contract:-
(1) The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(2) The active concealment of a fact by one having knowledge or belief of the fact;
(3) A promise made without any intention of performing it;
(4) Any other act fitted to deceive;
(5) Any such act or omission as the law specially declares to be fraudulent.
Explanation – Mere silence as to facts likely to affect the willingness of a person to enter into a contract
is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty
of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.
Q.4 what is meant by “agreement by way of wager is void and what exception is provided?
ANS: 30. Agreements by way of wager are void; and no suit shall be brought for recovering anything
alleged to be own on any wager, or entrusted to any person to abide the result of any game or other
uncertain event on which wager is made.
Exception:
This section shall not be deemed to render unlawful a subscription, or contribution, or agreement to
subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the
value or amount of five hundred Taka or upwards, to be awarded to the winner or winners of any horse
race.
Section 2
Q.5 Write note on following;
1 sale by sample:
(1) A contract of sale is a contract for sale by sample where there is a term
in the contract, express or implied, to that effect.
(2) In the case of a contract for sale by sample there is an implied condition__
(a) that the bulk shall correspond with the sample in quality;
(b) That the buyer shall have a reasonable opportunity of comparing the bulk with the sample;
(c) That the goods shall be free from any defect, rendering them unmerchantable, which,
would not be apparent on reasonable examination of the sample.
2 sale by description:
15. Sale by description. Where there is a contract for the sale of goods by description, there is an
implied condition that the goods shall correspond with the description; And, if the sale is by sample as
well as by description it is not sufficient that the bulk of the goods corresponds with the sample if the
goods do not also correspond with the description.
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CONTRACT ACT A872 PAST PAPERS
3 warranty:
A warranty is a guarantee given by the seller to the buyer about the quality, fitness and performance of
the product, in other words, a warranty is a stipulation collateral to the main purpose of the contract, its
breach gives right to claim damages but not a right to reject the good and treat the contract as
repudiated.
Q.6 Write down formation of the contract of sale?
ANS: 5. Contract of sale how made.__(1) A contract of sale is made by an offer to buy or sell goods
for a price and the acceptance of such offer. The contract may provide for the immediate delivery of
the goods or immediate payment of the price or both, or for the delivery or payment by instalments,
or that the delivery or payment or both shall be postponed.
(2) Subject to the provisions of any law for the time being in force, a contract of sale may be
made in writing or by word of mouth, or partly in writing and partly be word of mouth or may be
implied from the conduct of the parties.
Q.7 when condition may be treated as warranty?
ANS:(1) Where a contract of sale is subject to any
condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach
of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.
(2) Where a contract of sale is not severable and the buyer has accepted the goods or part
thereof, 1* * * the breach of any condition to be fulfilled by, the seller can only be treated as a breach
of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless
there is a term of the contract, express or implied, to that effect.
(3) Nothing in this section shall affect the case of any condition or warranty fulfillment of
which is excused by law by reason of impassibility or otherwise.
Section 1
Q.8 what agreements are contracts, explain valid contract and legal effect of contract with related
sections?
ANS: all agreement are contract if they are made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Q.9 Discuss free consent and what factors affect the free consent?
ANS: "Free consent" defined
14. Consent is said to be free when it is not caused by-
(1) Coercion, as defined in section 15, or
(2) Undue influence, as defined in section 16, or
(3) Fraud, as defined in section 17, or
(4) Misrepresentation, as defined in section 18, or
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(5) Mistake, subject to the provisions of sections 20, 21 and 22. Consent is said to be so caused when it
would not have been given but for the existence of such coercion, undue influence, fraud,
misrepresentation or mistake.
Q.10 Explain in detail void agreements and voidable contract with example?
Q.11 Define unlawful consideration and object and what is their effect on contract?
ANS: 23. The consideration or object of an agreement is lawful, unless- it is forbidden by law; or
Is of such a nature that, if permitted, it would defeat the provisions of any law; or
Is fraudulent; or
Involves or implies injury to the person or property of another; or the Court regards it as immoral, or
opposed to public policy.
In each of these cases, the consideration or object of an agreement is said to be unlawful. Every
agreement of which the object or consideration is unlawful is void.
EFFECTS:
They become illegal. So any such contract can no longer be valid. The unlawful consideration of
the object includes acts that are specifically punishable by law.
Q.12 Define recession and novation of contracts and its legal effect?
ANS: Rescission is the voiding of a contract by a court that does not recognize it as legally
binding. Rescission is when a contract is rendered null and void, and so is no longer
recognized as legally binding.
A novation is an agreement made between two contracting parties to allow for the substitution of
a new party for an existing one. Novation is the replacement of one of the parties in an
agreement between two parties, with the agreement of all three parties involved. To novate is
to replace an old obligation with a new one.
62. If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it,
the original contract need not be performed.
Illustrations
(a) A owes money to B under a contract. It is agreed between A, B and C that B shall
thenceforth accept C as his debtor, instead of A. The old debt of A to B is at an end, and a new
debt from C to B has been contracted.
(b) A owes B 10,000 Taka. A enters into an arrangement with B, and gives B a mortgage of his
(A's) estate for 5,000 Taka, in place of the debt of 10,000 Taka. This is a new contract and
extinguishes the old.
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CONTRACT ACT A872 PAST PAPERS
Section 1
Q.16 Differentiate between any two of the following:
1 Agreement and contract 2 coercion and undue influence
3 wag-ring and contingent contract
Q.17 Write notes on:
1 undue influence 2 fraud 3 void agreements 4 revocation of proposal
Q.18 what are essential of valid contract?
Section 2
Q.19 Write note on following
1 existing goods. 2 future goods. 3 documents of title of goods. 4 goods.
Q.20 Explain goods perishing before sale but after agreement to sell and agreement of price?
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