1) Bader, the owner of Mashoor Farms, sent one of his employees Aftab in search of his pet

Horse which had been missing for 5 days. Bader advertised a reward of Rs. 20,000 in a
Newspaper for anyone who finds his missing horse. Aftab, unaware of the newspaper
advertisement, traced the horse. Subsequently, on knowing about the reward Aftab
claimed it from Bader.

Under the provisions of the Contract Act, 1872 identify the type of offer which was made
by Bader. Also state whether Aftab would be able to claim the amount of reward under the
circumstances.

ANS: It is general offer which was made by Bader and Aftab would be able to claim the amount
of reward under the circumstances.

2) Mohsin promised Ahsan that he will pay his university fee. Later Mohsin suffered losses
in his business and refused to pay the fee. Mohisn is of the view that since the agreement
was without consideration, it does not constitute a valid contract. However, Ahsan believes
that the agreement is enforceable under law as it meets certain other conditions. You are
required to narrate the conditions which Ahsan may be referring to.

ANS: It is an unenforceable contract which is valid but cannot be enforced due to some technical
defect or lack of any formality such as absence of writing, registration, stamp and attestation.

3) Mr. A promises Mr. B to sell his horse after one month to Mr. B for Rs. 50,000. Before
the completion of one month, the horse died. State whether the contract can be performed
or not. Also mention the legal status of this contract.

ANS: It is a void contract which is perfect in every respect and enforceable by law at the time
when parties enter into a contract but due to happening of an uncertain event it become void.

4) Mr. X threatens Mr. Y with dire consequences unless Mr. Y enters into a contract to sell
a piece of land to Mr. X at Rs. 1 lac. Is this a valid contract? Justify your answer with
reason.

ANS: No it is not a valid contract because it is voidable contract which enforceable by law at the
option of one or more of the parties but not at the option of others.

5) Asif stole cash and merchandise from the ABC Store. Basit, the owner of store, initiated
legal proceedings against him. Asif contacted Basit with an offer to return the stolen cash
and merchandise if Basit withdraws the suit. Basit accepted the offer. Is it a valid
agreement?

ANS: It is also an unenforceable contract which is valid but cannot be enforced due to some
technical defect or lack of any formality such as absence of writing, registration, stamp and
attestation.