UG-CLAT entrance exam Question Bank Solutions for Legal Reasoning

Principle: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void. 

Facts: 'X' promises to pay 'Y' ₹50000, if he ('Y') commits a crime, 'X' further promises to indemnify him ('Y') against any liability arising thereof. 'Y' agrees to act as per X's promise. Which of the following derivations is correct?

Principle: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake.
When consent to an agreement is caused by coercion, undue influence, fraud, or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.

Facts: 'X' threatens to gun down 'Y' if he ('Y') does not sell his property worth ₹2000000 for ₹ 100000 only. As a consequence, 'Y' agrees to sell it as demanded by 'X'.
Which of the following derivations is correct?

Principle: The consideration or object of an agreement is unlawful if the court regards it as opposed to public policy. Every agreement of which the object or consideration is unlawful is void.

Facts: 'X' promises to obtain for 'Y' employment in the public service and 'Y' promises to pay ₹500000 to 'X'

Which of the following derivations is correct?

Principle: Agreements in restraint of marriage are void.

Facts: 'X' enters into an agreement, with 'Y' where under he agrees not to marry anybody else other than a person whose name starts with the letter 'A' and promises to pay ₹ 100000 to 'Y' if he ('X') breaks this agreement.

Which of the following derivations is correct?

Principle: A gift comprising both existing and the future property is void as to the latter. 
Facts: 'X' has a house that is owned by him. He contracted to purchase a plot of land adjacent to the said house, but the sale (of the plot of land) in his favour is yet to be completed. He makes a gift of both the properties (house and land) to 'Y'

Under the aforementioned circumstances, which of the following derivations is correct?

Principle: Caveat emptor, i.e., 'let the buyer beware' stands for the practical skill judgment of the buyer in his choice of goods for purchase. It is the business of the buyer to judge for himself that what he buys has its use and worth for him. Once bought, and if the buyer is not up to his expectations, then he alone is to blame and no one else.

Facts: For the purpose of making a uniform for the employees, 'A' bought dark blue coloured cloth from 'B' but did not disclose to the seller ('B') the specific purpose of the said purchase. When uniforms were prepared and used by the employees, the cloth was found unfit. However, the cloth was fit for a variety of other purposes (such as, making caps, boots, and carriage lining, etc)
Applying the afore-stated principle, which of the following derivations is correct as regards remedy available to 'A' in the given situation?

Principle: The transferor of goods cannot pass a better title than what he himself possesses.

Facts: 'X' sells a stolen bike to 'Y' 'Y' buys it in good faith. As regards the title to bike, which of the following derivations is correct?

LEGAL PRINCIPLE: Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner.

FACTUAL SITUATION: A and B started a partnership firm for providing vehicle repair services. C approached the firm for getting his car repaired and noticed that only B was present in the office. C informed the problem and B started repairing the car. While B was repairing, he filled petrol instead of oil in the engine. As a consequence, a small blast occurred and damaged the car. Now, C sued both A and B for the damage so caused. Decide. 

DECISION:

LEGAL PRINCIPLE: Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent.
FACTUAL SITUATION: Feroz and Pinto entered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur. Feroz breaches the contract and Pinto, being a resident of Udaipur. would like to sue him in Udaipur. He challenged the validity of the clause.
DECISION:

LEGAL PRINCIPLES: A contract is an agreement enforceable by law.
FACTUAL SITUATION: Amita invited Bina to her house for dinner. Bina accepted the invitation but later did not go. On Bina's failure to attend, Amita filed a suit against Bina for the price of non-consumed food. Will the law enforce this agreement? 
DECISION:

LEGAL PRINCIPLES:
1. Once a person accepts another's an offer, and signifies such acceptance to the former, a contract comes into existence between them.
2. Uncertain agreements are void agreements.
3. Rejected offers can be accepted only if renewed.
FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin. Dutt, offering him ₹4 lakhs for it. Dutt replied that he would not sell it below 5 lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach of contract.
DECISION:

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:

LEGAL PRINCIPLE: An agreement is void if its object is unlawful.

FACTUAL SITUATION: Sunil had a rich uncle who owned prime property in Chennai and had a lot of money in the bank. Being the only heir. Sunil was sure that he would inherit the property. One day, the uncle called him to his room and announced that he planned to marry again. This angered Sunil and he plans to murder his uncle so he hired Anuj, a murderer, and entered into a contract with him to kill his uncle. Sunil agreed to pay ₹10 lakhs to Anuj and even paid 5 lakhs as advance. The following night Anuj entered the uncle's house intending to kill him. On reaching there, he realised that Sunil's uncle was already dead so he left without doing anything. The next day, after the post mortem report, it transpired that Sunil's uncle had died due to heart attack. Now, Sunil wants to recover the advance from Anuj. Will he succeed?
DECISION:

LEGAL PRINCIPLES: 
1. Consideration must be of value in the eyes of law.
2. Consideration is not real if it is illusory.
FACTUAL SITUATION: Arjun received a summons to appear at a trial as a witness on behalf of Bitu, the accused. Bitu promised to pay him a sum of ₹1,000 for his trouble. On default by Bitu, Arjun filed a suit to recover the said sum. Will he succeed?
DECISION:

LEGAL PRINCIPLES: 1. Acceptance must be given only by the person to whom the offer is made. 2. Communication of acceptance to a person who did not make the offer does not bind the offeror.
FACTUAL SITUATION: Pal sold his business to Sam without disclosing it to his customers. Mani, an old customer sent an order for goods to Pal by name. Sam, the new owner, executed the order. Mani refuses to accept the goods from Sam as he intended to deal only with Pal. In a suit by Sam against Mani: 
DECISION:

Principle: When a person represents to another something like a true fact knowing well truly that it is not true," he is guilty of fraud. The person subjected to fraud may avoid an agreement. 

Factual Situation: A presents a horse for sale. The' horse is kept on display so that anyone interested could examine it. The horse has a cracked hoof and it is cleverly concealed by the owner. B tells "if you do not deny it, I Shall assume that the horse is sound." A keeps silent. B purchases the horse.

Decision

Principle: When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that person to such an act or abstinence, he is said to have made a proposal.

Factual Situation: Xavier telegrammed to William, "Will you sell me your house? Telegram the lowest cash price." William also replied by Telegram "The lowest price for my house is ₹30 lakh. Xavier immediately sent his reply consenting to William's telegram by saying "I agree to buy your house for ₹30 lakh asked by you." William refused to sell his house.
Decision

Principle: Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. 

Factual Situation: Roxanne supplies designer clothes to big showrooms and famous cloth houses. Max agrees to buy a certain consignment of only pink designer clothes for his shop due to the pink coloured theme of his famous shop. The issue cropped up when the exclusive pink coloured dresses were not delivered to Max's showroom, but to some other buyer, who had earlier contracted with Roxanne's store and all this was neither in the knowledge of Roxanne nor Max Decide whether the contract between Roxanne and Max is void?

Principle: Money or good given to a person by mistake must be returned to the person who gave them. 

Factual Situation: Sunil and Burma jointly owed ₹1000 to Siraj. Sunil pays the whole amount to Sirai in Suman's absence. Suman after returning from his vacations also paid the full amount to Siraj not knowing the fact that Sunil had already paid the same. Is Siraj bound to repay or return the  extra money to Suman that he obtained under mistake from  her?

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