Question

Mr. SAMANT owned a motor car. He approached Mr. CHHOTU and offered to sell his motor

car or ` 3,00,000. Mr. SAMANT told Mr. CHHOTU that the motor car is running at the rate of

30 KMs per litre of petrol. Both the fuel meter and the speed meter of the car were working

perfectly. Mr. CHHOTU agreed with the proposal of Mr. SAMANT and took delivery of the car

by paying ` 3,00,000/- to Mr. SAMANT. After 10 days, Mr. CHHOTU came back with the car

and stated that the claim made by Mr. SAMANT regarding fuel efficiency was not correct and

therefore there was a case of misrepresentation. Referring to the provisions of the Indian

Contract Act, 1872, decide and write whether Mr. CHHOTU can rescind the contract in the

above ground.​

Answer 1

Answer:

Give rectifying entries for the following: <br> (i) Rs. 5,400 received from Mr. A was posted to the credit of his account. <br> (ii) The total of Sales Return Book overcasted by Rs. 800. <br> (iii) Rs. 2,740 paid for repairs to motor car was debited to Motor Car Account as Rs. 1,740. <br> (iv) Returned goods to Shyam Rs. 1,500 were passed through Returns Inward Book.