Question

5: (a) X sells by auction to Y a horse which X knows to be unsound....

5: (a) X sells by auction to Y a horse which X knows to be unsound. The horse appears to be sound but X knows about the unsoundness of the horse. Is this contract a valid in each of the following alternative cases.
i. X says nothing about the unsoundness of the horse to Y (0.5)
ii. If y says to X ‘if you do not deny it, I shall assume that the horse is sound’ X says nothing (0.5)
(b) X buys a painting believing it to be worth Rs 100000 while in fact it is worth only Rs 10000. Is it valid contract? (0.5)
(c) Ghazala, the wife of Naseer is ready to sue her husband for maintenance allowance, naseer agreed to pay her a monthly allowance and Ghazala forebears to sue him, also mention if naseer says that the said amount will be paid by naseer sister (zarganoon) and her wife agreed, and what option will be available to Ghazala if the Zarganoon’s cheque way dishonoured

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