Principle: the Sale of Liquor is Illegal. All Agreements Relating to Prohibited Items Do Not Exist in the Eyes of Law. Facts: 'A‘ Entered into an Agreement with 'B‘ for the Sale of Liquor. - Legal Reasoning


Principle: The sale of liquor is illegal. All agreements relating to prohibited items do not exist in the eyes of law.  

Facts:  'A‘ entered into an agreement with 'B‘ for the sale of liquor. 'A‘ failed to supply the agreed quantity of liquor to B. 


  • B can bring legal action against A. 

  • B cannot bring any legal action against A. 

  • A can bring legal action against B. 

  • A and B can initiate appropriate legal proceedings against each other. 



B cannot bring any legal action against A. 


According to Section 24 of the Indian Contract Act defines that agreement is void if considerations and objects in part is unlawful. If any part of a single consideration for one or more objects, or anyone or any part of any one of several considerations for a  single object, is unlawful, the agreement is void.  The reasonable conclusion is drawn that B cannot bring any legal proceeding against A is the correct answer.   

Concept: Law of Torts (Entrance Exams)
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2018-2019 (May) Set 1


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: Nothing is an offence which is done in the exercise of the right of private defence. Nothing is an offence which is done in madness.

Facts: A, under the influence of madness, attempts to kill B. B to save his life kills A.  

Principle: Death caused by a rash or negligent act of a person is an offence.

Facts: X was driving his SUV car on a lonely road leading to a forest at 160 km per hour. Suddenly, someone appears from the forest on the road and in the resultant accident, the car hits the commuter causing his death. 

"No action lies against the Government for injury done to an individual in the course of exercise of its sovereign functions". All of the following actions are covered by the above provision, except 

Principles: A servant is one who is employed to do some work for his employer (master). He is engaged under a contract of service. He works directly under the control and directions of his master. · In general, the master is vicariously liable for those torts (wrongful acts) of his servant which are done by the servant in the course of his employment.

Facts: 'M' appointed 'D' exclusively for the purpose of driving his tourist vehicle. 'M' also appointed 'C' exclusively for the purpose of performing the work of a conductor for the tourist vehicle. During one trip, at the end of the journey, 'C', while 'D' was not on the driver's seat, and apparently for the purpose of turning the vehicle in the right direction for the next journey, drove it through the street at high speed, and negligently injured 'P'.

Mark the best option:
Facts: A fabric trader wanted to travel to Ludhiana to meet his distributors and show them the new stock of fabric. He hired a taxi and drove from Chandigarh to Ludhiana with samples of the new fabric. The trader stopped at a restaurant to grab some lunch. He asked the taxi driver to eat something as well and told him that he would return in ½ hour. The taxi driver took advantage of this opportunity and acting in collusion with some petty thieves, facilitated the stealing of some of the fabric samples by the latter. It was only on the next day that the fabric trader realized that some of his samples were missing. He suspected the taxi driver of carrying out this theft. Eventually, he sued the taxi company for the value of the stolen goods. Decide the case.
Principle: A master is vicariously liable for the wrongful acts of his servant in the course of his employment and which fall within the scope of employment of the servant.

The principle is to be applied to the given facts and to choose the most appropriate option:

Principle:  According to law, a person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a bailee. Bailee is a person or party to whom goods are delivered for a purpose, such as custody or repair, without transfer of ownership. The finder of the goods legally can sell the goods found by him under certain circumstances including the situation that the owner refuses to pay the lawful charges of the finder.

Facts: P, a college student, while coming out of a Cricket stadium found a necklace, studded with apparently precious diamonds. P kept it for two days thinking that the owner would notify it in a local newspaper. Since he did not notice any such notification, P published a small classified advertisement in a local newspaper. In two days’ time, P was contacted by a film actor claiming that it was her Necklace and requested P to return it to her. P told her that she should compensate him for the advertisement charges then only he would return it otherwise he will sell it and make good his expenses. The film star told P that she had advertised in a national newspaper about her lost Necklace which was lost somewhere in the Cricket Stadium. The advertisement was published for three consecutive days incurring a large expenditure for her. Mentioning all this she refuses to pay P and claims the Necklace back. Which among the following is the most appropriate answer to this?

The principle is to be applied to the given facts and to choose the most appropriate option

Principle: A person is said to do a thing fraudulently, if he does that thing with intent to defraud, but not otherwise.

Facts: 'A' occasionally hands over his ATM card to 'B' to withdraw money for 'A'. On one occasion 'B' without the knowledge of 'A', uses 'A's ATM card to find out the balance in 'A's account, but does not withdraw any money.

Legal Principle: A person is liable to compensate others for harm caused by the escape of any inherently dangerous material that he keeps on his land.

Fact Situation: Ankit lights a bonfire in his courtyard to warm himself up during a cold winter evening. A strong wind suddenly blows some sparks from the fire, on to his neighbour’s house which catches fire and gets completely destroyed.

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

Which of the following is not a reason for the general lack of liability for omissions in English law?

Which of the following is an example of trespass?

The railway authorities negligently allowed a train to be overcrowded. In consequence, a legitimate passenger Mr. X got his pocket picked. Choose the appropriate answer.

PRINCIPLE Trespass is the unauthorized entry through the person or tangible object into the property of another. The rights of property exist on the surface, aerially and in the subterrain.

FACTS Kumari and Shravan lived in houses interspersed by the plot of Shantanu. Kumari and Shravan set-up a walkie talkie connection by setting up their transmitte~s facing each other. When Shantanu came to know about the arrangement, he filed a suit of trespass stating that the same was a case of trespass as signals could reach each other only by crossing his plot.

PRINCIPLE A principal is liable for such acts as committed in the course of an agency but is not liable for such acts as committed outside the course of the agency.

FACTS ABC, a partnership between A, B and C maintained a bank account with XYZ. As per the standing arrangement with the bank, signatures of at least two partners were required for the withdrawal of the money from the partnership account. B forged the signatures of A, which were exactly alike and withdrew a large amount of money and disappeared. In a suit brought by A and C 

LEGAL PRINCIPLE A master will be liable for the wrongful acts of his servants in the course of employment.

FACTUAL SITUATION Maria was an old widow who opened an account with the Indian Overseas Bank, whereby she would deposit ₹5 every day in the bank. Stephen was her neighbour, who used to collect the amount and deposit them in the bank. Stephen would get a small commission from the bank for the money deposited. One day, it was discovered that Stephen who had not deposited the money for more than three months had vanished with the amount. Maria filed a suit against the Bank. 

A person is said to be vicariously liable when

Principle: Ignorance of the law is no excuse.

Facts: A fails to file his income tat returns for ten years. The Income-tax department issues to him notice to show cause why proceedings should not be initiated against him for the recovery of the income tax due from him with interest and penalty. Advise.

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.

Principle: A person has no legal remedy for an injury caused by an act to which he has consented.

Facts: 'R', a cricket enthusiast, purchases a ticket to watch a T20 match organized by the Indian Premier League (IPL). During the match, a ball struck for six hits 'R' on his body and injures him. He sues IPL for compensation for the medical expenses.
Which of the following derivation is correct?

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.

Principle: Negligence is a breach of duty or a failure of one party to exercise the standard of care required by law, resulting in damage to the party to whom the duty was owed. A plaintiff can take civil action against the respondent if the respondent's negligence causes the plaintiff injury or loss of property.

Facts: 'D' went to a cafe and ordered and paid for a tin/can of soft drink. The tin was opaque and therefore, the contents could not be seen from outside. She ('D') consumed some of the contents and then lifted the tin to pour the remainder of the content into a tumbler. The remains of a snail in the decomposed state dropped out of the tin into the tumbler. 'D' later complained of stomach pain and her doctor diagnosed her as having gastroenteritis and being in a state of severe shock. She used the manufacturer of the drink for negligence. Applying the afore-stated principle, which of the following derivations is correct as regards the liability of the manufacturer in the given situation?

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: A master shall be liable for the acts of his servants done in the course of employment.

Factual situation: PUL, a public sector undertaking, is operating a number of bus services for its employees in Pune. These buses are quite distinct in their appearance and carry the board “for PUL employees only”. M, a villager from a neighbouring state, was waiting for a regular bus in one of the bus stops in Pune. A bus belonging to PUL happened to stop nearby and a number of people got into the bus. M, without realizing that it was a PUL bus, got into the bus and soon thereafter, the bus met with an accident due to driver’s negligence. M, along with several others, was injured in the accident. M seeks to file a suit against PUL claiming damages. DECISION:

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

Legal Principles:
The tort of negligent misstatement is defined as an inaccurate statement made honestly but carelessly usually in the form of advice given by a party with special skill/knowledge to a party that doesn’t possess this skill or knowledge.

X and Y Co. were advertising agents placing contracts on behalf of a client on credit terms, X and Y Co. would be personally liable should the client default. To protect themselves, the X and Y asked their bankers to obtain a credit reference from K and L, the client’s bankers. The reference (given both orally and then in writing) was given gratis and was favorable, but also contained an exclusion clause to the effect that the information was given ‘without responsibility on the part of this Bank or its officials’. X and Y relied upon this reference and subsequently suffered financial loss when the client went into liquidation. X and Y sued K and L Co. for negligence, claiming that the information was given negligently and was misleading. K and L argued there was no duty of care owed regarding the statements. Decide.


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