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B.Com. (Programme) · Sem 1
Jan 2025 Examination
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Mumbai
B.Com. (Programme) Sem 1 Business Laws Jan 2025 Question Paper with Solutions
First published on munotes.in on 26 October 2026.
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The question paper reproduced here is the paper as set by University of Delhi at the Jan 2025 examination.
Contents
The questions below are the paper as University of Delhi set it at the Jan 2025 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Jan 2025 examination, reproduced as University of Delhi set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 90 · 20 questions answered
Instructions printed on the paper
- N.B. (1) Write your Roll No. on the top immediately on receipt of this question paper. (2) Attempt all questions. (3) All parts of the questions to be attempted together. (4) All questions carry equal marks. (5) Answers may be written either in English or Hindi; but the same medium should be used throughout the paper.
How to use this volume
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Q1
a and b, OR c and d · 18 Marks
(a)State with reasons whether the following statements are True or False:[12]
- (i) A void contract is one, which is void ab initio.
- (ii) Past consideration is no consideration under the Indian Contract Act, of 1872.
- (iii) A unilateral mistake cannot become a ground to avoid the contract.
Answer
For full marks, cover: for each statement, the verdict, the section that decides it, the reasoning and an example or case. (i) sections 2(g), 2(j) and 56; (ii) section 2(d) ("has done"), section 25(2), and how Indian law differs from English law; (iii) section 22, with the exceptions (identity, nature of the document, fraud or misrepresentation), Cundy v. Lindsay and Foster v. Mackinnon; a conclusion.
(i) A void contract is one, which is void ab initio
False.
"Void ab initio" means void from the very beginning. That describes a void agreement, not a void contract.
- Void agreement (section 2(g)). "An agreement not enforceable by law is said to be void." It never had legal force. An agreement by way of wager is an example (section 30).
- Void contract (section 2(j)). "A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable." It was a valid contract when made and later lost its force.
A contract becomes void in this way in several situations.
- Performance becomes impossible or unlawful after the contract is made (section 56).
- A contingent contract depends on an event that becomes impossible (section 32).
- A voidable contract is rescinded by the party entitled to do so.
Example. A contracts to deliver 100 bags of rice from a named warehouse. Before delivery, the warehouse burns down without A's fault. The contract was valid when made and becomes void only on the fire.
So the statement is false. A void contract becomes void later. It is a void agreement that is void ab initio.
(ii) Past consideration is no consideration under the Indian Contract Act, of 1872
False.
Under English law, past consideration is generally no consideration. Indian law is different.
Section 2(d) defines consideration as an act or abstinence or promise given at the desire of the promisor. It covers what the promisee "has done or abstained from doing", "does or abstains from doing", or "promises to do or to abstain from doing". The words "has done" expressly include past consideration.
So an act done in the past, at the desire of the promisor, is good consideration for a later promise to pay for it.
Example. At A's request, B repairs A's car in January without fixing a fee. In March, A promises to pay B Rs 5,000 for the repairs. B's past service is good consideration for A's promise.
Section 25(2) goes further. A promise to compensate a person who has already voluntarily done something for the promisor is valid, even without consideration. Illustration (c) to section 25 gives the example of A finding B's purse and returning it, and B promising to give A Rs 50. This is a contract.
Past consideration must, however, have been given at the desire of the promisor. An act done at another's request, as in Durga Prasad v. Baldeo, (1880) ILR 3 All 221, is not consideration. There, shops built at the Collector's desire did not support a later promise of commission by an occupier.
So the statement is false in India. Past consideration is valid consideration under section 2(d).
(iii) A unilateral mistake cannot become a ground to avoid the contract
True, as a general rule.
A unilateral mistake is a mistake made by only one party. Section 22 says: "A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact."
The reason is fairness to the other party, who was not at fault. Each party must take care of its own interests. If a buyer pays more because of a wrong belief about the market, the seller does not have to undo the bargain.
The rule has important exceptions.
- Mistake as to the identity of the other party, where identity is vital. In Cundy v. Lindsay, (1878) 3 App Cas 459, a rogue named Blenkarn ordered goods from Lindsay. He signed in a way that imitated a respectable firm, Blenkiron and Co. Lindsay sent the goods believing they were dealing with that firm. The House of Lords held there was no contract at all, because Lindsay never intended to deal with Blenkarn.
- Mistake as to the nature of the document signed. In Foster v. Mackinnon, (1869) LR 4 CP 704, an old man of weak sight was induced to sign a bill of exchange, being told it was a guarantee. The court held he was not bound, because he did not know the nature of the document and was not negligent.
- Mistake caused by fraud or misrepresentation of the other party. The contract is then voidable under section 19, not because of the mistake but because of the fraud or misrepresentation.
So the statement is true as a general rule under section 22. A unilateral mistake becomes relevant only in these exceptional cases.
The position differs for a bilateral mistake. Under section 20, where both parties are under a mistake as to a matter of fact essential to the agreement, the agreement is void. In Raffles v. Wichelhaus, (1864) 2 H & C 906, cotton was to arrive by the ship Peerless from Bombay. There were two ships of that name, and each party meant a different one. There was no contract.
Conclusion. (i) is false, because a void contract becomes void later, while a void agreement is void from the start. (ii) is false in India, because section 2(d) includes past consideration given at the desire of the promisor. (iii) is true as a general rule under section 22. The exceptions are mistakes about identity or the nature of the document, and mistakes caused by the other party's fraud.
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