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प्रश्न
Principle: Mere silence as to facts likely to affect the decision of a person to enter into a contract is not a fraud.
Facts: A sells to B (A‘s daughter who is a minor) a horse which A knows to be unsound. A says nothing to B about the unsoundness of the horse.
पर्याय
A has committed fraud
A has committed no fraud
There cannot be a contract between a father and daughter
The daughter did not ask therefore the father did not tell, hence no fraud
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उत्तर
A has committed no fraud
Explanation:
A has not committed fraud because A is merely silent as to the facts likely to affect the decision of a person to enter into a contract. In this case, A is silent about the fact of unsoundness of his horse which he sells to his daughter. Hence no fraud has been committed.
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संबंधित 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 Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained by 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.banks 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 defence 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?
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: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.
Factual Situation: A and B, a Hindu couple were married to each other. Owing to differences between them, they decided to get divorced. They entered into a contract laying down the conditions that both parties had to adhere to. One of the terms of the contract was that their children would not be entitled to claim the ancestral property of A, the husband.
Given below is a statement of legal principle followed by factual situations. Apply the principle to the facts and select the most appropriate answer.
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: Contractual liability is completely irrelevant to the existence of liability in tort (civil wrong).
Facts: X purchased a bottle of ginger-beer from a retailer. As she consumed more than 3/4 of the contents of the bottle, she found a decomposed remains of a snail in the bottle. After seeing the remains of a snail, she fell sick on the thought of what she consumed. She sued the manufacturer of the beer for negligence, though there is no contractual duty on the part of the manufacturer.
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.
Ramu applied for the post of Director in an organization. The governing body of the organization passed a resolution appointing him to the post. After the meeting, one of the members of the governing body informed him privately of the resolution. Subsequently, the resolution was rescinded. Ramu claims damages. Which one of the following is the correct legal proposition in the case?
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.
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?
LEGAL PRINCIPLE: An agreement is void if the court regards it as opposed to the public policy.
FACTUAL SITUATION: Sunita, while her husband Shankar was alive, promised to marry Neel in the event of Shankar's death. Subsequently, Shankar died, but Sunita refused to marry Noel. Neel sues Sunita for damages for breach of promise.
DECISION:
Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise 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.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.
Facts: Goodtyre is a tyre manufacturer who agreed with their dealer to not sell the tyres below a recommended retail price (RRP). As part of the agreement, Goodtyre also required their dealers to gain the same agreement with their retailers, who in this instance was Bestmotors. The agreement held that if tyres were sold below the RRP, they would be required to pay ₹ 500 per tyre in damages to Good tyre. This was agreed between the dealer and Bestmotors, which effectively made Goodtyre a third party to that agreement. Sometime after this, Bestmotor sold the tyres below the agreed price and Goodtyre sued for damages and an injunction to prevent them from continuing this activity. Bestmotors is arguing that Goodtyre could not enforce the contract as it was not part of the contract between the dealer and Bestmotors. The court decided that Goodtyre had no right to access damages. Which of the following is the correct reasons?
I. The good tyre could not claim for damages as only a party to a contract can claim damages under it.
II. The good tyre had not given any consideration to Bestmotors and therefore there could be no binding contract between the parties.
III. The good tyre was not listed as an agent within the contract and could therefore not be included as a valid third-party who had rights to claim on the contract.
