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प्रश्न
Consists of legal proposition(s)/ principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.
Principle: Every agreement, of which the object or consideration is opposed to public policy, is void. An agreement that has the tendency to injure public interest or public welfare is one against public policy. What constitutes an injury to the public interest or public welfare would depend upon the times and the circumstances.
Facts: 'A' promises to obtain for 'B' employment in the public service, and 'B' promises to pay rupees 5,00,000/- to 'A'.
विकल्प
The agreement is void because rupees 5,00,000/- is excessive.
The agreement is valid, as it is with consideration for public service.
The agreement is valid, as it is a contract between two parties with their free consent.
The agreement is void, as the object and consideration for it is opposed to public policy.
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उत्तर
The agreement is void, as the object and consideration for it are opposed to public policy.
Explanation:
The agreement is void, as the object and consideration for it are opposed to public policy. The promise made by 'A' to B is opposed to public policy as it has the tendency to injure public interest or public welfare. The agreement is, therefore, void.
APPEARS IN
संबंधित प्रश्न
Principle: A condition must be complied with after the happening of the event to which such a condition is attached.
Facts: A promises to pay Rs. 5,000 to B on the condition that he shall marry with the consent of C, D, and E. B marries without the consent of C, D, and E, but obtains their consent after the marriage.
Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.
Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value. He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?
Which of the following statements is the most appropriate in relation to the legal principle stated above?
Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.
PRINCIPLE An agreement is void to the extent that it restricts absolutely a party from enforcing his contractual rights by usual proceedings in any ordinary court.
FACTUAL SITUATION: A and B entered into a transaction in Delhi for sale of goods based in Delhi. The contract stated that in case of a dispute, only civil courts in Chennai would have jurisdiction. Neither A nor B resided or carried on business in Chennai.
Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
1. Consideration is something that moves from the promisee to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
2. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterward.
Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of Rs. 20,000. After six months of commencing the work, Hasan realized he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognized that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.
MXM Co. agreed to pay Hasan an additional f 575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional f 5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.
Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.
Principle: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.
Factual Situation: A and B entered into a contract, whereby A agreed to get married to B if her parents paid A Rs. 1,00,000 before the wedding. B's parents failed to pay the promised amount. A sues B and her parents.
The question consists of legal propositions/principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true. In other words, in answering the following question, you must not rely on any principles except the principle that is given hereinbelow for the question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability.
Principle: When a party to a contract has refused to perform or disabled himself from performing, his promise in its entirety, the other party may put an end to the contract.
Facts: A engaged B on April 12 to enter his service on June 1, but on May 11, A wrote to B that his services would not be needed. On May 22, B joined C for employment.
LEGAL PRINCIPLE: An agreement is void if the court regards it as opposed to the public policy.
FACTUAL SITUATION: Sunita, while her husband Shankar was alive, promised to marry Neel in the event of Shankar's death. Subsequently, Shankar died, but Sunita refused to marry Noel. Neel sues Sunita for damages for breach of promise.
DECISION:
Principle: Contract is an agreement entered into between the parties.
Factual Situation: Ramlal was a dealer in cement. The Government of India, by an order issued under the Essential Commodities Act, fixed the price of cement and also, the quantity which a person can buy from the dealer, Ramlal carried on his business under this new order for some time, but he refused to pay sales tax on his sales transactions on the ground that these were not the contracts freely entered into by him.
Decision
Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.
Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained to undue influence, the contract is voidable at the option of the party whose consent was so obtained.
Factual Situation: The Pragya had been worked for a businessman Anurag since the age of 18, working for a range of Anurag's businesses. In 2000, (aged 21) Pragya purchased a flat. In 2005, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offer up her flat as a financial security against an overdraft facility for the business. In July of that year, the bank's solicitors wrote to Pragya, advising that she should take Independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag, Pragya was unaware of the extent of the borrowing but was assured that her mortgage would not be called upon and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August 2005. In 2009, Mr. Anurag's business went into liquidation and the bank formally demanded ` 60,24,912 from Pragya. Pragya raised the defense of undue influence – stating that Mr. Anurag had induced her to enter into the agreement, and the bank had full knowledge/notice of this undue influence which should set aside the bank's right to enforce the debt recovery against Pragya. The bank is contending that there is no undue influence.
Assume it is a case of undue influence. Decide whether the bank has done enough to allay concerns of undue influence?
Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right. interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.
Facts: Goodtyre is a tyre manufacturer who agreed with their dealer to not sell the tyres below a recommended retail price (RRP). As part of the agreement, Goodtyre also required their dealers to gain the same agreement with their retailers, who in this instance was Bestmotors. The agreement held that if tyres were sold below the RRP, they would be required to pay ₹ 500 per tyre in damages to Good tyre. This was agreed between the dealer and Bestmotors, which effectively made Goodtyre a third party to that agreement. Sometime after this, Bestmotor sold the tyres below the agreed price and Goodtyre sued for damages and an injunction to prevent them from continuing this activity. Bestmotors is arguing that Goodtyre could not enforce the contract as it was not part of the contract between the dealer and Bestmotors. The court decided that Goodtyre had no right to access damages. Which of the following is the correct reasons?
I. The good tyre could not claim for damages as only a party to a contract can claim damages under it.
II. The good tyre had not given any consideration to Bestmotors and therefore there could be no binding contract between the parties.
III. The good tyre was not listed as an agent within the contract and could therefore not be included as a valid third-party who had rights to claim on the contract.
