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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, 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, Chulbul 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 Dhanraj telling him that if he does not make Baalu the CEO  of Maakhan 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 Baalu that he shall not enforce the employment contract. Baalu and Dhanraj are not sure as to what is to be done next.

Baalu will succeed in getting the employment contract enforced if he can show that


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 storey houses on either side of Shazia's house. Javed and Sandeep are also Ahmedabad's main distributors for a major soft drinke 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 Rule B and C to Ramesh's case, you would decide:


The question consists of two statements, one labelled as the principle and other as Fact. You are to examine the principle and apply it to the given facts carefully and select the best option.

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

Fact: “Ramanuj telegraphed to Shyam Sunder, writing: “Will you sell me your Rolls Royce CAR? Telegram the lowest cash price.” Shyam Sunder also replied by telegram: “Lowest price for CAR is 20 lakh.” Ramanuj immediately sent his consent through telegram stating: “I agree to buy the CAR for 20 lakh asked by you.” Shyam Sunder refused to sell the car.


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: Doctrine of Double Jeopardy: No person shall be prosecuted and punished for the same offence twice.

FACT: MaqbooI brought some gold into India witnout mal<ing any declaration to Custom department on the airport. The custom authorities confiscated the gold under the Sea Customs Act. Maqbool was later charged for having committed an offence under Foreign Exchange Regulation Act.


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?


The Indian Contract Act applies to the:


Which of the following legal statement is incorrect?


An offer made by words spoken or written is called:


Given below is the 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 acceptance of an offer will be valid only if it is made in the way it was expected to be made.
FACTUAL SITUATION: There was a telephonic discussion between 'J' and 'K' for negotiating the sale of the shop of former to the latter. Upon reaching an agreement as to the price of the shop of 'J' at Rs 20 lakh, 'J' told 'K' to send a letter to him within two weeks confirming that she wishes to buy the shop for the price finalized. Two days thereafter, 'K' gave her acceptance to 'J' over the telephone but sent the letter of confirmation after a lapse of one month.
ls 'J' bound by the acceptance of 'K'?
DECISION:


From the four answers given, Choose the appropriate answer.

All motor vehicles are required to have third party insurance. Any vehicle not using a mechanical device is not a motor vehicle.
Which of the following is a correct derivation from the above?


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