Important Questions — Law of Contract-I, Unit IV

Sourced from actual OU question papers (April/May 2017, March/April 2017, March/April 2018, September/October 2017, February 2026), cross-checked against the official Unit IV syllabus — every question here is answerable entirely from what's already published on this site.

Part A — Short Answer

1. Quasi Contract. (Tested twice — March/April 2017 and March/April 2018)
   Quasi-Contracts
2. Unjust Enrichment.
   Quasi-Contracts
3. Quantum Meruit. (Tested twice — March/April 2017 and March/April 2018)
   Quantum Meruit
4. Remote Damages.
   Kinds of Damages
5. Explain the duty to mitigate damages.
   Duty to Mitigate

Part B — Long Answer

1. Define the term contingent contract. Discuss the rules relating to contingent contracts.
   Contingent Contracts
2. Discuss the rule laid down in Hadley v. Baxendale.
   Kinds of Damages
3. What is meant by a quasi-contract and the circumstances under which quasi-contractual obligations arise?
   Quasi-Contracts
4. Explain the concept of damages and the rules for assessment of damages for breach of contract.
   Kinds of DamagesDuty to Mitigate

Part C — Problem / Case-Study Questions

1. X finds B's purse and gives it to him. B promises to give X ₹5,000. Explain whether X will succeed in recovering the amount. (Turns on Section 168's reward rule together with the Section 25(2) exception for a promise to compensate a voluntary act already done)
   Finder of GoodsConsideration — Salient Features and Exceptions
2. A and B jointly owe ₹200 to C. A pays the amount to C. B, not knowing this fact, pays ₹100 over again to C. Discuss the rights of A and B as against C.
   Things Delivered by Mistake or Coercion
3. 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? (The note itself is void since a minor cannot bind himself personally — the real question is what the grocer can recover under Section 68)
   Quasi-Contracts
4. A agreed to erect a plant for B by 31st January. The contract provided that B should pay ₹500 per month for every month A took beyond the agreed date. A was late by six months. B sued A for ₹6,500, the actual loss caused to him as a result of the delay. To what damages, if any, is B entitled? (Applies the Section 74 principle in Fateh Chand v. Balkishan Dass — the named sum caps recovery even when actual proven loss is higher)
   Kinds of Damages