AILET entrance exam Question Bank Solutions for Legal Reasoning

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: Everybody is under a legal obligation to take reasonable care to avoid act or omission which he can foresee would injure his neighbor, the neighbour for this purpose is any person whom he should have in his mind as likely to be affected by his act.

Factual situation: Krish, while driving a car at a high speed in a crowded road, knocked down a cyclist. The cyclist died on the spot with a lot of blood spilling around, Lekha, a pregnant woman passing by, suffered from a nervous shock, leading’ to abortion. Lekha filed a suit against Krishnan claiming damages. 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: The occupier of a premise owes a duty of care to all his invitees and visitors.

Factual situation: Lalit was running a dairy from his house. People used a dart of his farm as a shortcut to get to a nearby railway station. Lalit who did not approve of this, put up a notice that “Trespassers will be prosecuted”. However, since a number of these people were also his customers he tolerated them. One day a person who was using this short cut was attacked by a bull belonging to the farm. The injured person filed a suit against 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: A master shall be liable for the acts of his servants done in the course of employment.

Factual situation: PUL, a public sector undertaking, is operating a number of bus services for its employees in Pune. These buses are quite distinct in their appearance and carry the board “for PUL employees only”. M, a villager from a neighbouring state, was waiting for a regular bus in one of the bus stops in Pune. A bus belonging to PUL happened to stop nearby and a number of people got into the bus. M, without realizing that it was a PUL bus, got into the bus and soon thereafter, the bus met with an accident due to driver’s negligence. M, along with several others, was injured in the accident. M seeks to file a suit against PUL claiming damages. 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: The master/principal is liable for all acts done by his duly appointed servant/agent for all acts done by him lawfully in the course of his employment.

Factual situation: A, B, C and D carried on a business in partnership. While making a deal with another company, B bribed the clerk there. Is the partnership firm vicariously liable? 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: Necessity knows no law, and any person facing danger may do all that is necessary to avert the same till he can take recourse to public authorities

Factual situation: Akshay, a law-abiding citizen decided to remove the weed of corruption from Indian society. One day, confronted with a bribing official, Akshay decided to teach him a lesson and punched him on his face. Akshay DECISION:

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 defence to action in negligence.

Facts:
In a sad incident, 95 fans of a Football club died in a stampede in the Nehru Stadium. The court has decided that the accident was caused due to the negligence of the Police in permitting too many supporters to crowd in one part of the stadium. Now, a suit is filed by Harman and several other people against the Commissioner of State Police. Harman and the other claimants had relatives who were caught up in the Nehru Stadium disaster. The disaster was broadcast on live television, where several claimants alleged, they had witnessed friends and relatives die. Others were present in the stadium or had heard about the events in other ways. All claimed damages for the psychiatric harm they suffered as a result. Determine whether, for the purposes of establishing liability in negligence, those who suffer purely psychiatric harm from witnessing an event at which they are not physically present are sufficiently proximate for a duty to be owed, and thus can be said to be reasonably within the contemplation of the tortfeasor?

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 defence to action in negligence.

Facts:
X purchased a disused cinema with the intention of turning it into a Multiplex. Six weeks after, X entered the building for the first time, it was set on fire by intruders and destroyed. As a result, the adjacent buildings were also affected and damaged. The cinema building was a target for vandals and children who often played there, but X had had no knowledge of previous attempts to start a fire at the cinema buildings. The owners of the adjacent buildings brought an action for negligence against X on grounds that X failed to take reasonable care for the safety of the buildings by not keeping the cinema locked, making regular inspections and employing a caretaker. Decide whether the occupier of a property owes a duty of care to the adjoining occupiers in respect of acts of trespass on his property resulting in damage to the adjoining properties? 

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.