Legal Cases on Void and Voidable Agreements, Slides of Technical Writing

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Cases

• A promises B to get him a Government job and B promises to pay Rs.1 Lac. The agreement is void.
• A hires a house to use for gambling. T he agreement is void.

• A deceives B by stating that his factory produces 90 Kg of butter daily and induces B to buy it. The contract is voidable at the option of B.
• A leaves his goods at B’s house by mistake. B treats them as his own and uses them. B is bound to pay for the goods.

• B promised to pay commission on goods in his market if D constructed a market in that area. Later the collector asked D to construct the market, and D constructed the market on collector’s request. D demanded commission from B. B’s demand was not held.
• Dunlop sold tires to D, on the condition that he will not sell the tires to the public below the Dunlop’s list price. D sold tires to S on this condition. S sold them below the list price. It was held that Dunlop could not sue S.

• A fails to pay his loan to HBFC. A’s house is sold for recovery of debt. According to law, A is prohibited from purchasing his house. A asks B to purchase the house and transfer it back to him. The agreement between A and B is void.
• A, a minor sold his shop to B. The amount was paid to A but the sale deed could not be registered as A was minor. On a suit by B, it was held that that the agreement was void.

An illiterate elderly woman gave a deed of gift of her whole property to her nephew who managed her estate. The deed was cancelled.

• A company issued a prospective containing a statement that company paid regular dividends between 2003 to 2307. In fact the company suffered loses in those years and had paid dividends out of their secret reserves. B offered to purchase the company’s shares on the basis of the prospective. B after knowing the facts sued the company for refund of his amount. The court granted his request.

• A sold his bakery to B charging Rs. 1 lac as good will, and agreed not to open a bakery anywhere in Pakistan.
• A gives Rs. 1 lac to B as loan for one year and agrees that if B does not return the loan, A must sue within two years otherwise B will not be liable.

• A and B agrees that if it rains today, A will pay Rs. 100 to B. If it does not rain, B will pay RS.100 to A. It did not rain that day A sued B to recover Rs.100, but failed.
• A supplies B, who is a minor, with necessaries suitable to his condition of life. A was entitled to recover a reasonable cost of the necessaries supplied from the estate of the minor.

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