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Principle: a Contract Would Be Invalid and Unlawful If the Contract is for Any Immoral Or Illegal Purpose. - Mathematics

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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: 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?

Options

  • As R was making the contract for illegal activities, P's stand is valid in law. 

  • R can take back the house by cancelling the transfer deed.

  • P is not justified as she did not have the right to deny  R's request. 

  • P is right as she did not like smuggled goods to be kept in her house. 

MCQ
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Solution

As R was making the contract for illegal activities, P’s stand is valid in law

Explanation:

As R was making the contract for illegal activities, P's stand is valid in law. The conditions made by R were illegal in nature. Such conditions made the contract invalid and unlawful. The contract does not stand valid in the court of law. 

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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. 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. If Lucky had discovered the painting before leaving Indira's house rather than at the rubbish dump, would lie have been guilty of theft in this case'?


Principle:  Property can be transferred only by a living person to another living person.  

Facts:  'A‘ transfers property of which he is the owner in favor of the unborn child of B.


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.


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?


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: Whoever takes away with him any minor less than sixteen years of age if a male, or less than eighteen years of age if a female, out of the custody of parents of such minor without the consent of such parents, is said to commit no offence.

Facts: ‘A’, a man, took away a girl below sixteen years to Mumbai without informing the parents of the girl.


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


Which of the following legal statement is incorrect?


Mark the best option:
When a contract is altered, the original contract is:


Parol contracts are also known as


................. is a one-sided contract in which only one party has to perform his promise or obligation.


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