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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 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: It is a case of fraud where a party to a contract knows or believes a fact to be true, but conceals it actively from the other party with a view to inducing that person to enter into the contract.

Facts: While taking a life insurance policy, in reply to questions by the insurance company during the inquiry into his proposal, Zameer deliberately concealed the fact of his medical treatment for a serious ailment, which he had undergone only a few weeks ago.

Options

  • The concealment of a fact by Zameer amounted to fraud.

  • The act of Zameer did not amount to fraud, as disclosing the fact would have resulted in the exposure of his privacy.

  • The act of Zameer did not amount to any misrepresentation. 

  • The act of Zameer amounted to innocent misrepresentation.

MCQ
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Solution

The concealment of a fact by Zameer amounted to fraud.

Explanation:

The concealment of a fact by Zameer amounted to fraud. According to Section 17 of the Contract Act, it is required for every party to disclose all facts to the opposite party before entering into a contract and there should be no active concealment of facts or knowledge by one. Not disclosing of facts to dishonestly induce the other person to deliver property or alter/ destroy the whole/ part of a valuable security or anything which is signed or sealed and is capable of being converted into valuable security will be held guilty under Section 420 of the Indian Penal Code. Zameer had a duty to disclose details about his medical treatment to the insurance agency. Deliberate concealment of facts from an insurance company with dishonest intentions about past medical treatment amounts to Fraud. 

shaalaa.com
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 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. Whoever intending to take any moveable property out of the possession of any person without that person's consent, moves that property out of his or her possession, is said to commit theft.
B. A person who, without lawful excuse, damages any property belonging to another intending to damage any such property shall be guilty of causing criminal damage. C. Damage means any impairment of the value of a property. 

Facts: Veena, an old lady of 78 years, used to live with her granddaughter Indira. Veena was ill and therefore bed-ridden for several months. In those months, she could not tolerate any noise and it 'became quite difficult to clean her room. After she died, Indira hired a cleaner, Lucky, to clean the room and throw away any rubbish that maybe there. There was a pile of old newspapers that Veena had stacked in a corner of her room. Lucky asked Indira if he should clear away the pile of old newspapers, to which she said yes. Lucky took the pile to a municipality rubbish dump. While Lucky was sorting and throwing away the newspapers, he was very surprised to find a beautiful painting in between two sheets of paper. He thought that Indira probably wouldn't want this old painting back, especially because it was I’m in several places and the colour was fading. He took the painting home, mounted it on a wooden frame and hung it on the wall of his bedroom. Unknown to him, the painting was an old, masterpiece, and worth twenty thousand rupees. Before mounting the painting, Lucky pasted it on a plain sheet of paper so that it does not tear anymore. By doing so, he made its professional restoration very difficult and thereby reduced its value by half Lucky's neighbor Kamala discovered that the painting belonged to Indira. With the motive of returning the painting to Indira, Kamala climbed through an open window into Lucky's room when he was away one afternoon and removed the painting from his house. Has Lucky committed theft?


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 only Rules A and B to Shazia's case, you would decide:


Financial allocation for Education was made for the first time by the Charter Act of 


A contract is defined as an agreement enforceable by law, vide Section ____ of the Indian Contract Act.


All Contract is a/an .................


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


The communication of a proposal is complete when it comes to


Acceptance takes place as against the proposer, when


................. implies a contract though the parties never expressed their intention to enter into a contract.


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