Contract Law is the classic problem-question paper: fact patterns about agreements, consideration and breach. The way to master it is unit-wise question practice — so here is the unit-wise list of the most important questions for the TU LL.B. Law of Contract paper (LAW 305).
Who is this for? TU LL.B. 1st Year (Law of Contract, LAW 305) students — and B.A.LL.B. students of Law of Contract-I (LAW 5305), which covers the same territory.
Unit-wise important questions
Unit 1: Introductory
- Define contract and explain “all agreements are not contracts,” with the Nepali case law. (15)
- State and explain the essential elements of a valid contract under the Muluki Civil Code, 2074. (15)
Unit 2: Formation of Contract — Offer and Acceptance
- What is an offer? Explain the rules regarding a valid offer, and distinguish it from an invitation to treat with everyday examples. (15)
- Define acceptance. Explain the rules regarding valid acceptance and the modes of its communication, including electronic acceptance. (15)
Unit 3: Consideration
- Define consideration. Explain the rules regarding consideration, including the sufficiency-adequacy distinction. (15)
- “No consideration, no contract.” State the exceptions to this rule. (10)
Unit 4: Capacity to Contract
- Who is competent to contract? Explain the law relating to contracts by minors in Nepal, including the necessaries exception. (15)
- Explain the consequences of contracts made with persons of unsound mind, including the lucid-interval doctrine. (10)
Unit 5: Free Consent
- Define free consent. Explain coercion and undue influence, with the consequences of their presence, and distinguish the two. (15)
- Explain the law of fraud in contract: its essential elements and consequences. How does it differ from misrepresentation? (15)
Unit 6: Legality of Object and Consideration
- What agreements are void as opposed to public policy? Explain with illustrations. (15)
- Explain the law relating to agreements in restraint of trade and its exceptions. (15)
Unit 7: Indirect (Quasi) Contract
- What is an indirect (quasi) contract? Explain with illustrations the obligations imposed by law without agreement. (15)
- Explain the doctrine of unjust enrichment with its elements, remedies and defences. (15)
Unit 8: Contingent Contract
- Define contingent contract. Explain its features and distinguish it from a wagering agreement. (10)
- Explain the rules regarding the enforcement of contingent contracts with illustrations. (15)
Unit 9: Performance of Contract
- Explain the concept and rules of performance of contract under Nepalese law. (15)
- What is attempted performance? State the requisites of a valid tender and the effects of its refusal. (15)
Unit 10: Termination of Contract
- Explain the modes of termination of a contract under Nepalese law, with two illustrations each. (15)
- Distinguish actual from anticipatory breach, and state the innocent party’s options and their risks. (10)
Unit 11: Breach of Contract and Remedies
- Explain the law of damages for breach of contract: the measure, the remoteness rule, mitigation, and the liquidated damages-penalty distinction. (15)
- What is specific performance? When will a Nepali court grant or refuse it? (15)
Unit 12: Contract of Indemnity and Guarantee
- Define contract of indemnity and distinguish it from contract of guarantee. (10)
- “The surety is a favoured debtor.” Discuss the surety’s rights against the creditor, the principal debtor and co-sureties, with Nepali case law. (15)
Unit 13: Contract of Bailment and Pledge (Collateral)
- Define bailment and explain its features, types, and the rights and duties of bailor and bailee. (15)
- Discuss the rights and duties of the pawnor and the pawnee, and the consequences of the pawnor’s default. (15)
Unit 14: Contract of Agency
- Define agency and state its essential features. How does an agent differ from an independent contractor? (10)
- Discuss the modes of creating agency, with ratification’s requirements and effects. (15)
Unit 15: Contract of Sale of Goods
- Define goods and their kinds; distinguish sale from agreement to sell. (10)
- Explain the implied conditions and warranties in a sale of goods, with the exceptions to caveat emptor. (15)
Unit 16: Contract of Carriage of Goods
- Define contract of carriage. Who is a common carrier, and what are his rights, duties and liabilities? When does his liability terminate? (15)
- Explain charter parties’ classes and their staple clauses. (10)
Unit 17: Law of Arbitration
- Define arbitration. Explain its essential elements and importance, and its procedure under the Arbitration Act, 2055. (15)
- Who is an arbitrator? Explain the rules regarding the number, qualification, appointment and removal of arbitrators. (15)
Unit 18: Provisions on Hire-Purchase Contract under the Muluki Civil Code, 2074
- Define hire-purchase agreement and explain its nature as a hybrid contract. (10)
- Discuss the rights and duties of the owner and the hirer under a hire-purchase agreement, with the repossession discipline on default. (15)
Unit 19: Provisions on Contract Set Out in the Nepalese Muluki Civil Code, 2074
- Explain the architecture of the contract provisions of the Muluki Civil Code, 2074 — the general provisions and the nominate-contract chapters. (15)
- Trace the historical transition from the Contract Act, 2056 to the Muluki Civil Code, 2074, noting the modernizations and doctrinal shifts. (15)
Unit 20: Prescribed Cases
- Write notes on any four of the prescribed cases, citing them fully and stating their doctrinal homes. (15)
- “The prescribed cases span three statutory eras of Nepali contract law.” Explain, mapping each case to its governing statute. (10)
How to answer Contract Law questions well
- For problem questions, follow the elements: is there an offer, acceptance, consideration, capacity, free consent, lawful object? Test the facts against each element in order.
- Define with the classic formula (agreement enforceable by law) and cite the Contract Act provision you are certain of.
- Learn the pairs: offer vs invitation to treat, void vs voidable agreement, quantum meruit vs damages — short questions come from these pairs every year.
- Conclude with the remedy: a contract answer that ends without saying the remedy (damages, rescission, specific performance) is only half an answer.
Free resources before you buy anything
Start with the free Unit 1: Law of Contract Unit 1 (free). Unit 1 of every subject is free on this site; complete courses in the complete notes packages (Rs 300 per semester/year, instant eSewa payment).