Important Questions — Law of Contract-I, Unit II

Previous Osmania University LL.B. exam questions for Law of Contract-I, Unit II, each linked to the notes post that answers it. Sourced from actual OU question papers (2017–2026), cross-checked against the official Unit II syllabus — every question here is answerable entirely from what's already published on this site.

Part A — Short Answer (Definitions, ~4–6 marks)

1. Define wagering agreement.
   Illegal and Uncertain Agreements
2. Voidable Contract
   Void and Voidable Contracts
3. Coercion
   Free Consent and Undue Influence
4. Undue Influence
   Free Consent and Undue Influence
5. Misrepresentation
   Fraud, Misrepresentation and Mistake
6. Unlawful Agreements
   Agreements Opposed to Public Policy, Unlawful Consideration and Object
7. Minor as a Shareholder
   Minor's Agreements

Part B — Long Answer (~10–15 marks each)

1. "Parties to a contract must be competent to contract." Explain. (also asked as "State briefly the law relating to competence of parties to a contract")
   Capacity to Contract
2. Explain the legal position of minor's agreements with suitable case law.
   Minor's Agreements
3. Explain mistake. Distinguish between mistake of fact and mistake of law.
   Fraud, Misrepresentation and Mistake
4. When is the object of a contract lawful? Give examples.
   Agreements Opposed to Public Policy, Unlawful Consideration and Object

Part C — Problem / Case-Study Questions (~10 marks each)

1. X, a minor, borrowed ₹10,000 from Y. Z, a major, guaranteed the repayment. X refuses to pay, relying on his minority. Can Y hold Z liable for the money?
   Minor's Agreements
2. A minor is supplied with necessaries of life by a grocer. He makes out a promissory note in favour of the grocer. Is the grocer entitled to claim payment under the promissory note?
   Minor's Agreements
3. X agrees to sell his car to B for ₹50,000 or ₹1,00,000, with nothing to show which of the two prices was meant. Is the agreement valid?
   Illegal and Uncertain Agreements
4. C offers to sell D a painting which C knows is a good copy of a well-known master's work. D, thinking the painting is an original — and assuming C must be unaware of this — immediately accepts. Does a valid contract result?
   Fraud, Misrepresentation and Mistake