Advertisements
Advertisements
प्रश्न
Legal Principle: Agreements in restraint of trade are void and unenforceable.
Fact Situation: Manu has been working as a blacksmith in his village for many decades. Somu has been undergoing training with him for the past three years. After his training is over, Somu enters into an agreement with Manu that he will not start a competing business in the same village while Manu is alive.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
विकल्प
This agreement is void and unenforceable since it is a restraint on trade.
This agreement is valid and enforceable since Manu is Somu’s teacher.
This agreement is valid but not enforceable after Manu’s death.
This agreement is valid and enforceable since it is to protect Manu’s interest in consideration for teaching Somu to be a blacksmith.
Advertisements
उत्तर
This agreement is void and unenforceable since it is a restraint on trade.
Explanation:
Under section 27 of the Indian contract Act, 1872 agreements in restraint of trade are void. It stipulates that an agreement, which restrains anyone from carrying on a lawful profession, trade, or business, is void to that extent. In the given case Manu is restraining Somu to carry on a lawful profession thus the agreement between them is void. Hence option (a) is the most appropriate.
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.
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: The defendant, Mr. Dhawan, wrote to the complainant, Mr. Chaman, with an offer to sell his house to him for Rs. 8,00,000. He promised that he would keep this offer open to him until Friday. However, on a Thursday Mr. Dhawan accepted an offer from a third party and sold his house. According to Mr. Chaman, he was going to accept this offer but had not said anything to Mr. Dhawan because he understood that he had time until Friday. Mr. Dhawan communicated to Mr. Chaman that the offer had been withdrawn, through a friend to the complainant. After hearing this, Mr. Chaman went to find the defendant, informing of his acceptance of the offer. Thereafter, the complainant brought an action for specific performance and breach of contract against the defendant. Whether the defendant's promise to keep the offer open until Friday morning was a binding contract between the parties and whether he was allowed to revoke this offer and sell to a third party?
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: A contract requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal is accepted, but also that the acceptance is notified to the proposer.
Factual Situation: A sent a letter to B stating that he was willing to sell to B, 10 bags of rice at ₹ 20/- each. B wrote a letter to A accepting the offer and posted it.
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: A contract procured by coercion is bad under the Indian Contract Act. Coercion is defined as committing or threatening to commit any act forbidden by the Indian Penal Code. Attempt to commit suicide is an offence under the India Penal Code.
Facts: A wanted his wife B to part with some landed property given to her by her father. B resisted fearing that her husband would squander it away. A threatened her that if she does not sign the deed transferring the property to him (i.e., A), he would commit suicide. B signed the deed. Subsequently, she challenged the deed on the ground that the deed was bad under law.
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: Mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not fraud unless the circumstances of the case are such that, on close examination, it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.
Facts: X sells by auction to Y, a horse that X knows to be of unsound state of mind. X says nothing to Y about the horse’s unsound state of mind. Give the correct answer-
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: In an agreement, a condition subsequent must be complied with, to claim the benefit of that agreement.
Facts: A agrees to transfer a farm to B, provided that, if B does not go to England within three years after the date of the agreement, his interest in the farm shall cease. B does not go to England within the term prescribed.
Principle: Trade dispute means any dispute between employers and workmen or between workmen and workmen or between employers and employers which is connected with the employment or non-employment or the terms of employment or the conditions of labour, of any person. Disputes connected with the non-employment must be understood to include a dispute connected with a dismissal, discharge, removal, or retrenchment of a workman.
Facts: 'X', an employee in a sugar factory, raised a dispute against 'Y', the employer, through trade union regarding certain matters connected with his suspension from the employment.
The following question consists of two statements, one labelled as. 'Assertion' and the other as 'Reason'. Read both the statements carefully and answer using the codes given below.
Assertion (A): No action lies for more damage caused by some act that does not violate a legal right.
Reason (R): An action lies for interference with another's legal right even where it causes no actual damage.
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.
Whether the consent to offer the flat as financial security obtained through undue influence?
Principle: Property consists of the right to possess, the right to use, the right to alienate, and the right to exclude others. The sale is complete when the property gets transferred from the seller to the buyer.
Facts: ‘A’ sold his car to ‘B.’ B requested A to keep the car in his care on behalf B for one month. A agreed.
