Rama directs Shyam to sell laptops for him and agrees to give Shyam eleven percent (11%) commission on the sale price fixed by Rama for each laptop.…

CA Foundation · Business Laws · MTP · May 2026
Rama directs Shyam to sell laptops for him and agrees to give Shyam eleven percent (11%) commission on the sale price fixed by Rama for each laptop. As Government of India put restrictions on import of Laptops, Rama thought that the prices of laptops might go up in near future and he revokes Shyam's authority for any further sale. Shyam, before receiving the letter at his end sold 5 laptops at the price fixed by Rama. Shyam asked for 11% commission on the sale of 5 Laptops for 1 lakh each. Explain under the provisions of the Indian Contract Act, 1872: (1) Whether sale of laptops after revoking Shyam's authority is binding on Rama? (2) Whether Shyam will be able to recover his commission from Rama, if yes, what will be the amount of such commission?

Suggested Answer and Working Notes:

In the instant case, Priya handed over the keys of her two- wheeler to Sony and it was decided between them that price of the vehicle will be fixed by Priya’s father. However, Priya’s father refused to fix the price as he did not want Priya to sell her vehicle. As the keys have already been handed over to Sony, Priya cannot take back the keys from Sony and Sony shall pay reasonable price to Priya for the two-wheeler.

Topics: The Indian Contract Act, 1872

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic