AILET entrance exam Question Bank Solutions for Legal Reasoning

The contract is said to have three essentials. Which one among the following is not essential in the formation of a contract?

Sheela, an adult married woman, agreed to live in adultery with Rahul and also agreed to serve him as his housekeeper. In return, Rahul, an adult agreed to pay Sheela ₹ 5000 per month for living in adultery and ₹ 5000 per month for housekeeping, the agreement is

'Pacta Sunt Servanda' means that

LEGAL PRINCIPLE Where the parents of a minor child due to their negligence allow the child an opportunity to commit a tort, the parents are liable.

FACTUAL SITUATION The father supplied an airgun to his son who was about to turn 18 next month. After some complaints of mischief. the father took the gun away and placed it in a corner of their storeroom which was used by the family to store surplus and other unnecessary stuff. The son took it out of the store and shot A. A sued his father. Is the father liable? DECISION: 

LEGAL PRINCIPLE A minor is not competent to contract.

FACTUAL SITUATION Deep, a 9th standard student realises that he is a minor, he is not permitted by law to execute a contract, appoints on Mandeep as his agent to conclude the purchase of land to gift it to his mother on her birthday. Mandeep accordingly prepares the papers for the transaction but at the last minute, the seller who had agreed to sell it now refuses to sell it contending that he does not wish to sell the land to a minor. Deep seeks to enforce the contract against the seller.

Under which law a minor is incapable of entering into a contract?

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 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. 

assume it is a case of undue influence. Decide whether the bank has done enough to allay concerns of undue influence?

LEGAL PRINCIPLE: Contract is an agreement freely entered into between the parties.
FACTUAL SITUATION: Tapan was a dealer in mustard oil. The Government of India by an order issued under the Essential Commodities Act fixed the price of mustard oil, and also the quantity which a person can buy from the dealer. Tapan carried on his business under this order for a while, but he refused to pay sales tax on his sale transactions on the ground that these were not the contracts freely entered into by him.

LEGAL PRINCIPLE: The contract after the death of one party can be continued if it is ratified by the surviving party.
FACTUAL SITUATION: Vishal, a famous artist was requested by Arun, an industrialist to draw the portrait of his deceased wife and paid ₹20,000/- in advance and agreed to pay when the work was completed, the sum of ₹2 lakhs. When the portrait was half drawn, Vishal died due to a heart attack. His son also a fine artist completed his father’s work and demanded the money from Arun. Arun refused to pay and to accept the portrait drawn by Vishal’s son and also demanded the advance to be returned.

Which one of the following conditions regarding the acquisition of citizenship by naturalization has been wrongly listed?

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 given below and select the most appropriate answer.

LEGAL PRINCIPLE: The occupier of premises owes a duty of care to all his invites and visitors.
FACTUAL SITUATION: Laloo was running a dairy from his house. People used a part of his farm as a short cut to get to a nearby railway station. Laloo 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:

A death sentence by a lower court

How many members are required to support the introduction of a No-Confidence Motion in the Lok Sabha?

The decision of a High Court is

Mark the incorrect answer
The main purpose of the Law of Contract is

A owned a truck and he had hired B to drive it. On one of its trips. C flagged the truck down and asked to be dropped to a nearby city. B agreed to do so for a small amount of money.  The truck met with an accident en route, in which C was badly injured. C sued A for damages.

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 owner of a land is entitled to the column of air space above the surface ad infinitum. But, the right is restricted to such height as is necessary for the ordinary use and employment of his land, and the structure on it.

Factual Situation: A had constructed a single-storeyed house on a corner site.  He had no intention of building an additional floor. B his neighbour, who ran an internet parlour got a hoarding made,  which protruded over A's house at a height of around 6 feet above the terrace. A sues B for trespass.

Given below is a statement of legal principle followed by factual situations. Apply the principle to the facts and select the most appropriate answer.

Principle: A contract requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal is accepted, but also that the acceptance is notified to the proposer.

Factual Situation: A sent a letter to B stating that he was willing to sell to B, 10  bags of rice at Rs. 20/- each. B made a telephone call to A to inform him that he had accepted the offer. Just as he was stating his acceptance, a very noisy aircraft few over B's house. A was not able to hear the acceptance.