Principle the Object of an Agreement is Lawful Unless It is Forbidden by Law; is of Such Nurture That, If Permitted, It Would Defeat the Provisions of Any Law; is Fraudulent - Legal Reasoning

Advertisements
Advertisements
MCQ

PRINCIPLE The object of an agreement is lawful unless it is forbidden by law; is of such nurture that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.

FACTUAL SITUATION A and B entered into a contract, whereby A agreed to get married to B if her parents paid A ₹ 100000 before the wedding. B's parents failed to pay the promised amount. A sues B and her parents.

Options

  • A will succeed because all the requirements of a contract are met

  • A will succeed since the payment of the amount was the condition precedent for the wedding

  • A will not succeed since the contract is void, its object being against the law

  • A will not succeed since B was not a party to the contract

Advertisements

Solution

A will not succeed since the contract is void, its object being against the law

Explanation :

In this case, the purpose of the contract is against the public policy and morals as mentioned in the principle. Getting married on demanding money is morally and legally unlawful. Therefore this is not a valid contract and option A will not succeed since the contract is void, its object being against the law is correct.

Concept: Contract Law
  Is there an error in this question or solution?

RELATED QUESTIONS

Principle: An agreement with a boy below the age of eighteen years is not enforceable by law.  

Facts:  A man entered into an agreement with a girl of seventeen years of age. 


Principle: A person, who is usually mad, but occasionally not mad, may make a contract when he is not mad.  

Facts:  'A‘ generally remains in the state of madness and rarely becomes capable of understanding anything.


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: When a person who has made a promise to another person to do something does not fulfill his promise, the other person becomes entitled to receive, from the person who did not fulfill his promise, compensation in the form of money.

Facts: ‘X’ made a promise to ‘Y’ to repair his car engine. ‘Y’ made the payment for repair. After the repair, ‘Y’ went for a drive in the same car. While driving the car, ‘Y’ met with an accident due to the bursting of a tire.


Legal Principle: ‘Gift' means a transfer of certain existing property made voluntarily and without consideration, by a donor, to a donee, and accepted by or on behalf of the donee during the lifetime of the donor.

Facts: Amit executed a gift deed for property ‘X’ in favour of Sooraj, who happened to be Amit’s loyal servant’s son settled in the U.S. Two months thereafter, Amit died without leaving a will regarding his assets. Amit’s children initiated steps to partition his entire property, including property ‘X’ among themselves. At that time, Sooraj came to India, and learning about the gift, claimed the property ‘X’.


Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.

Factual Situation: The BCCI decided to hold an auction to sell IPL teams. 12 bidders registered for the auction. Unknown to the BCCI, these 12 bidders had entered into a contract that they would not bid more than a certain amount.


A and B Hindu couples were married to each other. Owing to differences between them they decided to get divorced. They entered into a contract laying down the conditions that both parties had to adhere to. One of the terms of the contract was that their children would not be entitled to claim the ancestral property of A, the husband.


The question consists of legal propositions/principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true. In other words, in answering the following question, you must not rely on any principles except the principle that is given herein below 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.

PRINCIPLE Generally, an agreement without consideration is not valid. Therefore in order to make a valid agreement some consideration which may have some value in the eyes of law, is essentially required.

FACTS William has an old car of which he makes seldom uses. He voluntarily enters into an agreement with Smith to sell this car for rupees ten thousand. Thereafter one Anson approaches William and offers to buy that car for rupees one lac as the car was one which Anson has been searching for long. Now William wants to cancel his agreement with Smith and refuses to deliver the car to him saying that consideration (price) for the car promised by Smith is negligible and, therefore, agreement with him cannot be said to be the valid one.


LEGAL PRINCIPLE Where the parents of a minor child due to their negligence allow the child an opportunity to commit a tort, the parents are liable.

FACTUAL SITUATION The father supplied an airgun to his son who was about to turn 18 next month. After some complaints of mischief. the father took the gun away and placed it in a corner of their storeroom which was used by the family to store surplus and other unnecessary stuff. The son took it out of the store and shot A. A sued his father. Is the father liable? DECISION


Given below is a 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 Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained by undue influence, the contract is voidable at the option of the party whose consent was so obtained.

FACTUAL SITUATION The Pragya had been worked for a businessman Anurag since the age of 18, working for a range of Anurag's businesses. In 2000, (aged 21) Pragya purchased a flat. In 2005, Mr Anurag's business was facing financial difficulties, and he asked Pragya to offer up her flat as a financial security against an overdraft facility for the business. In July of that year, the.banks solicitors wrote to Pragya, advising that she should take independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag, Pragya was unaware of the extent of the borrowing but was assured that her mortgage would not be called upon and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August 2005. In 2009, Mr Anurag's business went into liquidation and the bank formally demanded ₹ 60 24,912 from Pragya. Pragya raised the defence of undue Influence - stating that Mr Anurag had induced her to enter into the agreement, and the bank had full knowledge/notice of this undue influence which should set aside the bank's right to enforce the debt recovery against Pragya. The bank is contending that there is no undue influence. 

Whether the consent to offer the flat as financial security obtained through undue influence?


LEGAL PRINCIPLE: Contract is an agreement freely entered into between the parties.
FACTUAL SITUATION: Tapan was a dealer in mustard oil. The Government of India by an order issued under the Essential Commodities Act fixed the price of mustard oil, and also the quantity which a person can buy from the dealer. Tapan carried on his business under this order for a while, but he refused to pay sales tax on his sale transactions on the ground that these were not the contracts freely entered into by him.


A death sentence by a lower court


Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.  

Principle: A contract requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer.

Factual Situation:
A sent a letter to B stating that he was willing to sell to B, 10 bags of rice at 20/- each. B sent an e-mail to the address mentioned in the letter-head, accepting the offer.


Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.

Factual Situation: A and B entered into a contract, whereby A agreed to get married to B if her parents paid A Rs. 1,00,000 before the wedding. B's parents failed to pay the promised amount. A sues B and her parents.


Given below is a 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: In case of a breach of contract, compensation can be awarded for the personal inconvenience suffered by a party by reason of the breach, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract to be likely to result from the breach of it.

Factual Situation: Sunita and Sushmita bought bus tickets for a journey from Adyar to Mandaveli. The bus was to go to St. Thomas Mount via Mandaveli. However, the driver mistakenly took the wrong direction and the two girls were dropped at a distance of 2Vi miles from Mandaveli on the highway. With no other transportation in sight nor a place to stay, the two had to walk 2V4 miles at midnight. Later they filed a case against the bus company and claimed 5,000 as damages for the inconvenience caused in having to walk and 6,500 for Sushmita having fallen ill by catching a cold during the night.

Decision:


The question consists of legal propositions/principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true. In other words, in answering the following question, you must not rely on any principles 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.

Principle: If the object of an agreement is or becomes unlawful or immoral or opposed to public policy in the eyes of law, then the courts will not enforce such agreements. Law generally prohibits Child labour.

Facts: P enters into an agreement with T, by which P has to let his house to T for two years and T has to pay 20,000.00 per month to P as rent. T starts a child care centre in that house. But after some time in order to earn some money for the maintenance of the centre, T starts sending the children of the centre on the rotation basis to work for four hours a day in some nearby chemical and hazardous factories. When P comes to know about this new development, he asks T either to stop the children from working in factories or to leave his house immediately. T neither agrees to leave the house nor to stop the children from working in the factories. P files a suit in the court of law of appropriate relief/action.


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. The expression of willingness/desire results in a valid proposal only when it is made/addressed to some person(s).

Facts: 'X' makes the following statement in an uninhabited hall. 'I wish to sell my mobile phone for 1000.'
Which of the following derivations is correct?


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: According to the law of trade unions in India, no suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer or member thereof in respect of any act done in contemplation or in furtherance of a trade dispute.

Facts: Soloman, the Secretary of a registered Trade Union took a loan from a bank for the higher education of his daughter. Soon after completing the course, she was married to an NRI Engineer. Solomon did not repay the loan. The Bank demanded the payments from Soloman and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.


Legal Principle: An agreement entered into by way of a wager/bet is unenforceable in law.

Fact Situation: Thomas is very good at predicting the outcomes of cricket matches. Raja and Hoja give him rupees thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins rupees three lakh after betting three thousand rupees.  

Which of the following statements is the most appropriate in relation to the legal principle stated above? 


Principle: When, at the desire of one person, any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the promise. 

Facts: X, the uncle of Y, made a promise to pay him an amount of 1,00,000/- as a reward if Y quits smoking and drinking within one year. Y quit smoking and drinking within six months.


Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right. interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.

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. 


Share
Notifications



      Forgot password?
Use app×