Source: RTP,June20215 Marks
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Question Scenario

Explain the type of contracts in the following agreements under the Indian Contract Act, 1872: i) X promise to sell his scooter to Y for ` 1 Lac. However, the consent of X has been procured by Y at a gun point. ii) A bought goods from B in 2015. But no payment was made till 2019. iii) G agrees to give tuitions to H, a pre-engineering student, from the next month and H in consideration promises to pay G ` 5,000 per month.

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Suggested Answer

i) In the instant case, X is an aggrieved party and the contract is voidable at his option but not at the option of Y. It means if X accepts the contract, the contract becomes a valid contract then Y has no option of rescinding the contract. ii) B cannot sue A for the payment in 2019 as it has crossed three years and barred by Limitation Act. A good debt becomes unenforceable after the period of three years as barred by Limitation Act. iii) Where, G agrees to give tuitions to H, a pre-engineering student, from the next month and H in consideration promises to pay G ` 5,000 per month, the contract is executory because it is yet to be carried out.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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