Advertisements
Advertisements
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.
Advertisements
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.
APPEARS IN
RELATED QUESTIONS
The question consists of two statements, one labelled as principle and other as Fact. You are to exa.mine the principle and apply it to the given facts carefully and select the best option.
PRINCIPLE: Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud unless the circumstances of the case ate such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.
FACT: A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse's unsoundness.
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:
- In order to convert a proposal into a promise, the acceptance should be absolute and unqualified.
- 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:
Mark the best option:
Principle: Agreements, the meaning of which is not certain, or capable of being made certain, are void.
Facts: Karthik, a physician, enters into an agreement with Talreja to rent from him a flat for setting up a clinic at Rupees fifteen thousand p.m. and Rupees two thousand p.m. extra if the flat proves lucky for him. A month after Karthik started using the flats in his clinic; he was appointed as visiting faculty by one of the medical colleges. Talreja claims Rupees seventeen thousand p.m.as rent from the next month onwards but Karthik refuses to pay him the amount claimed by him.
The agreement that is enforceable by law is known as
The Indian Contract Act came into force on:
Which of the following is false with respect to minors entering a contract?
Every agreement and promise enforceable by law is ................
A/an ............... is every Promise and every set of promises, forming consideration for each other
A appoints B as his agent, by way of a power of attorney. This is an example of
