MGT611 Assignment 1 Solution 2025
Assignment:
Read the examples given below and answer the questions. (2.5 marks
each)
a) Mr. X agrees to sell his vintage car to Mr. Y for Rs. 1,000,000, with delivery scheduled in
two weeks. Before the delivery date, the car is destroyed due to a fire incident. Can the
contract be enforced? What is the legal status of this agreement?
b) Zara agreed to pay Rehan Rs. 100,000 to burn down her competitor’s shop. Rehan took
the money but did not commit the act. Can Zara recover the money in court?=
c) Ali pays Basit Rs. 50,000 in cash for a signed rare book, and Basit hands over the book
immediately. Two days later, Ali claims the book is a forgery and demands his money back.
Is this an executed or executory contract? What are Basit’s obligations?
d) A stranger collapses from heatstroke outside Dr. Abdullah’s clinic. Dr. Abdullah provides
emergency treatment, saving his life. Later, the patient refuses to pay, arguing, “I never
hired you.” Is Dr. Abdullah entitled to payment?
Important:
Be concise. Irrelevant and unnecessary detail is discouraged.
You are required to write and present the answers as per the following table.
Solution:
| Case# | Answer |
a | No, the contract cannot be enforced. Since the car was destroyed without either party’s fault before delivery, the agreement is void due to impossibility of performance under Section 56 of the Contract Act. |
b | No, Zara cannot recover the money. The agreement is illegal and void as it involves a criminal act. Courts do not support claims arising from illegal contracts. |
c | This is an executed contract because both parties fulfilled their obligations at the time of the transaction. Basit has no obligation to refund unless it is proven that he knowingly sold a fake item, which could involve fraud |
d | Yes, Dr. Abdullah is entitled to payment under the principle of quasi-contract. Even though there was no formal agreement, he provided necessary services, and the law requires fair compensation in such cases. |
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