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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

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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, of which the object or consideration is opposed to public policy, is void. An agreement that has the tendency to injure public interest or public welfare is one against public policy. What constitutes an injury to the public interest or public welfare would depend upon the times and the circumstances.
Facts: 'A' promises to obtain for 'B' employment in the public service, and 'B' promises to pay rupees 5,00,000/- to 'A'.

Options

  • The agreement is void because rupees 5,00,000/- is excessive. 

  • The agreement is valid, as it is with consideration for public service.

  • The agreement is valid, as it is a contract between two parties with their free consent. 

  • The agreement is void, as the object and consideration for it is opposed to public policy.  

MCQ
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Solution

The agreement is void, as the object and consideration for it are opposed to public policy.  

Explanation:

The agreement is void, as the object and consideration for it are opposed to public policy. The promise made by 'A' to B is opposed to public policy as it has the tendency to injure public interest or public welfare. The agreement is, therefore, void.

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Contract Law
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2016-2017 (May) Set 1

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Facts: Goodtyre is a tyre manufacturer who agreed with their dealer to not sell the tyres below a recommended retail price (RRP). As part of the agreement, Goodtyre also required their dealers to gain the same agreement with their retailers, who in this instance was Bestmotors. The agreement held that if tyres were sold below the RRP, they would be required to pay 500 per tyre in damages to Good tyre. This was agreed between the dealer and Bestmotors, which effectively made Goodtyre a third party to that agreement. Sometime after this, Bestmotor sold the tyres below the agreed price and Goodtyre sued for damages and an injunction to prevent them from continuing this activity. Bestmotors is arguing that Goodtyre could not enforce the contract as it was not part of the contract between the dealer and Bestmotors. The court decided that Goodtyre had no right to access damages. Which of the following is the correct reasons?

I. The good tyre could not claim for damages as only a  party to a contract can claim damages under it.  

II. The good tyre had not given any consideration to  Bestmotors and therefore there could be no binding contract between the parties.  

III. The good tyre was not listed as an agent within the contract and could therefore not be included as a  valid third-party who had rights to claim on the contract. 


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