AILET entrance exam Question Bank Solutions

Apply the legal principles to the facts given below and select the most appropriate answer:

Legal Principles:
1. The Tort of Negligence is a legal wrong that is suffered by someone at the hands of another who fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.
2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant’s conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.
3. Volenti non-fit injuria is a defense to action in negligence.

Facts:
A team of scientists imported a virus for the purpose of research. They carried out research on their premises into foot and mouth disease in cattle, and they were apparently responsible for the escape of some virus. As a result, there was an outbreak of foot and mouth disease in the area, and the Minister of Agriculture ordered two markets to be closed. This caused some of the traders, who were two firms of auctioneers, to suffer a loss of profits on a total of six market days, from which they sought to recover. Decide whether the scientists owed a duty of care towards the traders?

Apply the legal principles to the facts given below and select the most appropriate answer:

Legal Principles:
1. Private nuisance is a continuous, unlawful, and indirect interference with the use or enjoyment of land, or of some right over or in connection with it.
2. A person is liable if he can reasonably foresee that his acts would be likely to injure his neighbor.
3. The foreseeability of the type of damage is a prerequisite of liability in actions of nuisance

Facts: 
Bharat Sugar Ltd. operated a sugar refinery on the bank of the river Ravi. They had a jetty from which raw sugar would be offloaded from barges and refined sugar would be taken. The sugar would be taken by larger vessels and then transferred to smaller barges to enable them to get through the shallow waters. As part of development, Bharat Sugar Ltd. wished to construct a new jetty and dredge the water to accommodate the larger vessels. At the same time, the State was constructing new ferry terminals. The design of the ferry terminals was such that it caused the siltation of the channels. After using the channels for a short while, Bharat Sugars’ larger vessels were no longer able to use them. Further dredging at the cost of ₹ 7,50,000 was required to make the channel and jetties usable by the vessels. Bharat Sugar Ltd. brought an action in nuisance to recover the cost of the extra dredging. Is the State liable?

Apply the legal principles to the facts given below and select the most appropriate answer:

Legal Principles:
The tort of negligent misstatement is defined as an inaccurate statement made honestly but carelessly usually in the form of advice given by a party with special skill/knowledge to a party that doesn’t possess this skill or knowledge.

Facts: 
X and Y Co. were advertising agents placing contracts on behalf of a client on credit terms, X and Y Co. would be personally liable should the client default. To protect themselves, the X and Y asked their bankers to obtain a credit reference from K and L, the client’s bankers. The reference (given both orally and then in writing) was given gratis and was favorable, but also contained an exclusion clause to the effect that the information was given ‘without responsibility on the part of this Bank or its officials’. X and Y relied upon this reference and subsequently suffered financial loss when the client went into liquidation. X and Y sued K and L Co. for negligence, claiming that the information was given negligently and was misleading. K and L argued there was no duty of care owed regarding the statements. Decide.

Apply the legal principles to the facts given below and select the most appropriate answer:

Legal Principles:
1. Vicarious liability is when employers are held liable for the torts of their employees that are committed during the course of employment.
2. A servant is a person subject to the command of his master as to the manner in which he shall do his work. The question of whether a person is an employee depends upon the degree of control which the ‘employer’ exercises over the worker.

Facts: 
Raja is a travel agent and possessed certain houses, which had an internal communication throughout, and which were used for the purposes of his business. Ramesh looked after the houses and lived in them for this purpose, but he was also a clerk in the Raja’s pay at a set annual salary. He lived in the houses with his wife, a child, and a servant. The case concerned the payment of inhabited house duty. There was a statutory exemption for premises which were occupied by a "servant”or person occupying the premises “for the protection thereof. Raja was claiming the exemption from tax liability by claiming that Ramesh was the servant. Decide whether Ramesh was a servant or an independent contractor?

Apply the legal principles to the facts given below and select the most appropriate answer:

Legal Principles:
1. Private nuisance is a continuous, unlawful and indirect interference with the use or enjoyment of land, or of some right over or in connection with it.
2. The person who for his own purposes brings on his lands and collects and keeps there anything likely to do mischief if it escapes must keep it in at his peril, and, if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape.
3. Generally, nuisances cannot be justified on the ground of necessity. pecuniary interest, convenience, or economic advantage to a defendant.

Facts: 
Dr. Hemant had for 18 years operated a clinic and hospital for the treatment of ENT. Dr. Karan operated a renal clinic in which patients receive haemo-dialysis on the floor above Dr. Hemant’s clinic. Karan was found liable for obnoxious fumes emitting from the clinic which escaped downwards into Dr. Hemant’s clinic. Hemant, his staff and patients were found to have suffered substantial damage ranging from skin diseases, red and swollen eyes, headaches, lethargy and breathing difficulties. Decide whether Karan is liable?

Mark the best option:
Facts: Ganga asked Ram to send him 15 bottles of groundnut oil at once. Ram wrote back that he would send the bottles in15-20 days. Ganga did not reply and ultimately about a month and a half later Ram sent the goods. Ganga refused to accept the goods and said that there was no contract. Ram sued him in court. Will Ram succeed in his case?
Principle:

1. In order to convert a proposal into a promise, the acceptance should be absolute and unqualified.
2. If there is an offer and acceptance between parties a contract is formed.

This question consists of principles and facts. The principal 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 the question, you must not rely on any principle 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. 
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.

Principle: According to law, a person is deemed to have attained the age of majority when he completes the age of 18 years, except in the case of a person where a guardian of a minor’s person or property has been appointed under the Guardians and Wards Act, 1890 or where the superintendence of a minor’s property is assumed by a Court of Wards. Indian law expressly forbids a minor from entering into a contract. Hence, any contract entered into by a minor is void­ab­initio regardless of whether the other party was aware of his minority or not. Further, though a minor is not competent to contract, nothing in the Contract Act prevents him from making the other party bound to the minor.

Facts: Lal executed a promissory note in favour of Gurudutt, aged 16 years stating that he would pay Gurudutt a sum of Rs. 2 Lakhs when he attains the age of majority. On attaining the age of 18, Gurudutt demanded the amount from Lal, who refused to pay. Gurudutt wants to take legal action against Lal. Identify the most appropriate legal position from the following:

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, by which any party is restricted absolutely from enforcing his right in respect of any contract, by the usual legal proceedings in the ordinary Tribunals, is void to that extent. The law also provides that nobody can confer jurisdiction to a civil court by an agreement between parties.

Facts: A and B entered into a valid contract for rendering certain services. A clause in the contract was that in case of any dispute arose out of the contract; it shall be referred to for Arbitration only. Is the contract valid?

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: An agreement, the terms of which are not certain, or capable of being made certain, is void.

Facts: Sunder agreed to take Bhola’s penthouse on rent for three years at the rate of rupees 12, 00, 000/­- per annum provided the house was put to thorough repairs and the living rooms were decorated according to contemporary style.

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: Contract is a written or spoken agreement, with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. Such an agreement is intended to be enforceable by law. A unilateral contract is one in which there is a promise to pay or give other consideration in return for actual performance.

Facts: A Toilet Soap Manufacturing Company in India in order to promote the sale of their product, published an advertisement in all the Newspapers on January 1, 2017, that the Company has kept a model ignition key of an Audi A3 Car. The advertisement also stated that whoever gets the said key before December 31, 2017, from a soap bar will be gifted with the Audi A3 Car. Mr. Martin, a foreigner who came to India as a tourist who was staying in a Hotel found a Key similar to the same Car Ignition Key. Mr. Martin brought this matter to the notice of the Hotel Manager. The Manager informed Mr. Martin about the Company’s advertisement on January 1, 2017. Mr. Martin wants to claim the Car. Will he succeed?

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 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: It is a case of fraud where a party to a contract knows or believes a fact to be true, but conceals it actively from the other party with a view to inducing that person to enter into the contract.

Facts: While taking a life insurance policy, in reply to questions by the insurance company during the inquiry into his proposal, Zameer deliberately concealed the fact of his medical treatment for a serious ailment, which he had undergone only a few weeks ago.

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: If a party to a contract agrees to it under the undue influence of any other party then the party under the undue influence may refuse to perform in accordance with the agreement.

Facts: A, a rich youngster became a member of a religious group and soon he was appointed by P the head of the group as his personal secretary. As per the rules of the group, all officials and staff of the group were supposed to stay in the group’s official premises itself. Some days later, A was asked by P to execute a gift deed in favour of P, in which it was mentioned that all immovable properties in his name are being gifted to P. A was unwilling to execute the deed, but he was forcefully restrained by P and his bodyguards in P’s office and made A sign the gift deed. Soon after this A left the group and refused to hand over the property as agreed to in the gift deed. Is A’s action valid?

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: Whoever takes away with him any minor less than sixteen years of age if a male, or less than eighteen years of age if a female, out of the custody of parents of such minor without the consent of such parents, is said to commit no offence.

Facts: ‘A’, a man, took away a girl below sixteen years to Mumbai without informing the parents of the girl.

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: A contract would be invalid and unlawful if the contract is for any immoral or illegal purpose.

Facts: P, was a young and helpless widow, living on the pavement. R, a neighbor gave her a house, registered in her name, on the condition that she should allow R to keep his smuggled goods and drugs in her house. After the registration was done, according to the condition in the contract, R’s agents went to keep some packets in her house, she refused. R told her the condition under which the house was given to her. She still refused. Is P justified in her action?

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: Ownership in 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 on sale.

Facts: ‘A’ sold his car to ‘B’. After this, ‘B’ requested ‘A’ to keep the car in his care on behalf ‘B’ for one month. ‘A’ agreed.

Mark the best option:
Principle: A contract the consent to which is induced by a false account or idea can be avoided by the deceived party.

Facts: Jatin approached Martin to purchase a plot of land from him. Martin was under the impression that Jatin required the land for constructing a house for himself and therefore, told Jatin that a real estate group was about to start a residential project in the vicinity of the plot; though he was himself doubtful of the same. Jatin, however, wanted to purchase the plot as he had been instructed by his elder brother to do so. Jatin entered into a contract to purchase the plot for a sum of Rupees thirty-five lacs and a few days later he came to know that the information given to him by Martin in respect of the residential project was false.

What should be Jatin do next?

Mark the best option:
Principle: Agreements, the meaning of which is not certain, or capable of being made certain, are void.
Facts: Karthik, a physician, enters into an agreement with Talreja to rent from him a flat for setting up a clinic at Rupees fifteen thousand p.m. and Rupees two thousand p.m. extra if the flat proves lucky for him. A month after Karthik started using the flats in his clinic; he was appointed as visiting faculty by one of the medical colleges. Talreja claims Rupees seventeen thousand p.m.as rent from the next month onwards but Karthik refuses to pay him the amount claimed by him.

Which of the following is (are) included in Geographical indications of Goods

The agreement that is enforceable by law is known as

The Contract Act of 1872 was enacted on