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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.
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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.
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संबंधित प्रश्न
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 Agreements, the meaning of which is not certain, or capable of being made certain, are void.
FACT A horse was bought for a certain price coupled with a promise to give ₹500 more if the horse proved lucky.
No one can be convicted twice for the same offense. This doctrine is called
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: An agreement may be oral or written. However, if a law specifically required that an agreement must be in writing, then the agreement must be in writing. A law specifically requires that the agreements relating to the transfer of the copyright in the novel between an author of a novel and the producer of a motion picture must be in writing.
Facts: The author of a novel, Love at Lost Sight, had several rounds of discussion with a producer of motion picture regarding the making a motion picture based on Love at Lost Sight. During the last discussion, they decided to make a motion picture on Love at Lost Sigh. The producer made a motion picture on Love at Lost Sight after making a payment of ₹10,00,000 (ten Lac only) in cash to the author, who happily accepted this amount as full and final payment. Later on, on the advice of his lawyer, whose author brought a case in a court of law against the producer on the ground that there is no written agreement between the producer and him.
Principle: Acceptance (of the offer) must be communicated by the offeree to the offerer so as to give rise to a binding obligation. The expression 'by the offeree to the offerer' includes communication between their authorised agents.
Facts 'X' made an offer to buy Y's property for a stipulated price. 'Y' accepted it and communicated his acceptance to 'Z', a stranger.
Which of the following derivations is correct?
Principle: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake.
When consent to an agreement is caused by coercion, undue influence, fraud, or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.
Facts: 'X' threatens to gun down 'Y' if he ('Y') does not sell his property worth ₹2000000 for ₹ 100000 only. As a consequence, 'Y' agrees to sell it as demanded by 'X'.
Which of the following derivations is correct?
Principle: A gift comprising both existing and the future property is void as to the latter.
Facts: 'X' has a house that is owned by him. He contracted to purchase a plot of land adjacent to the said house, but the sale (of the plot of land) in his favour is yet to be completed. He makes a gift of both the properties (house and land) to 'Y'
Under the aforementioned circumstances, which of the following derivations is correct?
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: The acceptance must be absolute and unqualified, leaving no ground for doubt or uncertainty. If the acceptance is conditional, no valid contract is formed, and the offer can be withdrawn at any moment until the absolute acceptance has taken place within a reasonable time of such an offer.
Factual Situation: Delhi Government conducted an auction for the sale of the license of the wine shop. X offered the highest bid which was provisionally accepted "...subject to the confirmation of Chief Commissioner who may reject any bid without assigning any reasons." Since X failed to deposit the required amount, the Chief Commissioner rejected the bid. The government held X liable for the difference between the bid offered by him and the highest bid accepted in reauction and commenced proceedings for the recovery of the sum. It was contended on behalf of the government of Delhi that X was under a legal obligation to pay the difference as it was due to his default that a resale of the excise shop was ordered and hence X was liable for the deficiency in price and all expenses of such resale which was caused by his default.
Decide, giving a reason, whether X is liable to make payment to the Delhi Government.
Principle: When a party to a contract has refused to perform or disabled himself from performing his promise in its entirety, the other party shall not 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.
