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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

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Question

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?

Options

  • Arbitrator cannot be termed as an ordinary Tribunal. Hence, the agreement is void and would be unenforceable.

  • The parties were trying to confer jurisdiction to some authority to decide a dispute and hence the clause would be invalid.

  • The contract is valid but the clause regarding Arbitration is void.

  • Arbitration is also a valid dispute settlement machinery recognized by law and hence the entire contract is valid.

MCQ
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Solution

Arbitration is also a valid dispute settlement machinery recognized by law and hence the entire contract is valid.

Explanation:

Arbitration is also a valid dispute settlement machinery recognized by law and hence the entire contract is valid. Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. The parties opt for a private dispute resolution procedure (Arbitration) instead of going to court. The contract between A and B provided that in case of a dispute, it would be resolved through an Arbitration only. The contract is valid because Arbitration is a valid dispute settlement means and sis recognized by the Indian legal system.

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Indian Contract Act (Entrance Exams)
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2016-2017 (May) Set 1

RELATED QUESTIONS

In this Question problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess. 

Rules: 
A. When land is sold, all `fixtures' on the land are also deemed to have been sold.
B. If a moveable thing is attached to the land or any building on the land, then it becomes a 'fixture'. 

Facts: 
Khaleeda wants to sell a plot of land she owns in Baghmara, Meghalaya and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Garret for sixty laky rupees. After completing the sale, she removes the expensive Iranian carpet which used to cover the entire wooden floor of one of the bedrooms. The room had very little light and Khalid used this light-colored radiant carpet to negate some of the darkness in the room. Garret, after moving in, realizes this and files a case to recover the carpet from Khalid. Rule C: If a moveable thing is placed on land with the intention that it should become an integral part of the land or any structure on the land it becomes a fixture.


In this Question, the problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question.

Rules: 
A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor's property the age of majority is twenty-one.
B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.
C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that (he minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts Ajay convinces Bandita, a girl aged I8 that she should sell her land to him. Bandita's mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Chaaru challenges this transaction claiming that Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus Ajay is in a difficult situation and has no idea how to recover his money from Bandita.

Which of the following is correct?


In this Question, the problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question.

Rules 
A. The act of using threats to force another person to enter into a contract is called coercion.
B. The act of using influence on another and taking undue advantage of that person is called undue influence.
C. In order to prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by the contract.
D. In order to prove undue-influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligations under the contract.

Facts: 
Aadil and Baalu are best friends. Aadil is the son of a multi-millionaire business person, Chulbal who owns Maakhan Pharmaceuticals. Baalu is the son of a bank employee, Dhanraj. One day, Aadil is abducted from his office by Baalu. Chulbul receives a phone call from Dhamaj telling him that if he does not make Baalu the CEO of NIaakhan Pharmaceuticals, Aadil will be killed. Chulbul reluctantly agrees to make the Baalu the CEO. Subsequently, Chulbul and Baalu sign an employment contract. However, as soon as Aadil is released and safely returns home, Chulbul tells Baala that he shall not enforce the employment contract. Baalu and Dhanraj are not sure as to what is to be done next.

In the above fact situation:


In this Question problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess.

Rule A: An owner of land has the right to use the land in any manner he or she desires. The owner of land also owns the space above and the depths below it. 

Rule B: Rights above the laud extend only to the point they are essential to any use or enjoyment of land. 

Rule C: An owner cannot claim infringement of her property right if the space above his or her land is put to reasonable use by someone else at a height at which the owner would have to reasonable use of it and it does not affect the reasonable enjoyment of his or her land.

Shazia's case: Shazia owns a single-storeyed house in Ahmedabad which has been in her family for more than 75 years. The foundation of the house cannot support another floor and Shazia has no intention of demolishing her family home to construct a bigger building. Javed and Sandeep are business partners and own three-story houses on either side of Shazia's house. Javed and Sandeep are also Ahmedabad's main distributors for a major soft drinks company. They have erected a huge hoarding advertising their products, with the ends supported on their roofs but the hoarding also passes over Shazia's house at 70 feet and casts a permanent shadow on her terrace. Shazia decides to hoist a huge Indian flag, going up to 75 feet, on her roof. She files a case, asking the court to order Javed and Sandeep to remove the hoarding for all these reasons.

Applying Rule C to Shazia's case, you would decide:


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.

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?


Valid contracts


Contractual rights and duties are created by ...............


A tender is


Which article provides for the office of the Attorney General of India?


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