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प्रश्न
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: Every partner is liable alone and jointly with other partners for the debts of a partnership firm incurred for the business. Every partner is an agent of every other partner while being a principal in his own right in the business of the partnership.
Fact Situation: Varun is a partner in a firm with Chinmoy and Jaffar. Jaffar purchases a car for his personal purpose and obtains credit for the same in the name of the partnership behind the back of the other partners. He fails to pay the due amount on the expiry of the period of credit.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
विकल्प
Varun, Chinmoy, and Jaffar are liable to pay for the car since they are partners and the credit was obtained in the name of the firm.
Varun and Chinmoy are not liable to pay for the car since Jaffar purchased it for his personal purpose.
Varun, Chinmoy, and Jaffar are liable as partners for all credit obtained in the name of the firm even if it is for the personal purpose of a partner.
Jaffar can use the credit of the firm to make purchases even for personal purposes since he is a partner in the partnership.
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उत्तर
Varun and Chinmoy are not liable to pay for the car since Jaffar purchased it for his personal purpose.
Explanation:
Every partner is an agent of the firm and his other partners for the purpose of the business of the partnership, and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners unless the partner so acting has in fact no authority to act for the firm in the particular matter, and the person with whom he is dealing either knows that he has no authority or does not know or believe him to be a partner. In the light of the given legal principle and explanation provided above it is clear that Jaffer purchased the car for his personal use and obtained credit for it acting outside his authority behind the back of other partners, he was not acting as an agent of the company or as the partner to Varun and Chinmoy but was acting on behalf of himself and for a personal motive. Hence other two partners are not liable to pay. leading option (2) is the most appropriate statement
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संबंधित 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?
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: A contract between the father and his son is a contract of utmost good faith. In such a type of contract law presumes that at the time of entering into the contract the father was in a position to dominate the will of his son. Where one of the parties was in the position to father was in the will of the other parties, the contract is enforceable only at the option of the party whose will was so dominated.
Facts: Ram had advanced a sum of ₹10,000 to his minor son Shyam. When Shyam became major, his father Ram misused his parental position and entered into an agreement with Shyam and obtained a bond from him for a sum of ₹30,000 in respect of the advance. Whether this agreement is enforceable?
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?
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.
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: Bournville ran a sales promotion whereby if persons sent in 3 chocolate bar wrappers and a postal order for f 100 they would be sent a record. Big Beats owned the copyright in one of the records offered and disputed the right of Bournville to offer the records and sought an injunction to prevent the sale of the records which normally retailed at f 1,000. Under the Copyright Act, retailers are protected from breach of copyright if they gave notice to the copyright holders of the ordinary retail selling price and paid them 6.25% of this. Bournville gave notice stating the ordinary selling price was f 100 and three chocolate bar wrappers. The issue is whether the chocolate bar wrappers formed part of the consideration?
X duly posts a letter of acceptance to Y. But the letter is lost in transit by the negligence of the Post Office
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: Every person, who is of the age of majority, is competent to contract according to the law to which he is subject.
Facts: A minor mortgaged his house in favour of Thakur Das, a money lender, to secure a loan of ₹20000. A part of this, i.e. ₹10500 was actually advanced to him. While considering the proposed advance, the attorney who was acting for the money lender, received information that the plaintiff was still a minor. Subsequently the minor commenced an action stating that he was underage when he executed the mortgage and the same should, therefore, be cancelled. He prayed for setting aside the mortgage. The mortgagee money lender prayed for the refund of ₹10500 from the minor.
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: An unlawful interference with a person's use or enjoyment of land or some right over or in connection with it is a nuisance in tort. The fact that the plaintiff "came to the nuisance" by knowingly acquiring property in the vicinity of the defendant's premises is not a defense to nuisance. However, an act cannot be a nuisance if it is imperatively demanded by public convenience. Thus, when the public welfare requires it, a nuisance may be permitted for special purposes.
Factual Situation: D owned and occupied an estate about two miles from RAF Wittering, an operational and training base for Harrier Jump Jets. D claimed that they suffered severe noise disturbance every time the Harrier pilots carried out training circuits: an average of 70 times a day. D alleged that the noise nuisance constituted a very serious interference with their enjoyment of their land. D instituted judicial proceedings against the defendants, the Ministry of Defence (MoD), damages amounting to Rs. 1,00,00,000.
The MoD denied liability and raised the defence that the Harrier training was undertaken for the public benefit and that they had prescriptive right over the land as D had bought their property at a time when RAF Wittering was already established so he cannot claim compensation as he already knew about the existence of RAF Wittering near his property.
Decision:
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.
