UG-CLAT entrance exam Question Bank Solutions for Legal Reasoning

Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of the partnership.

Fact Situation: Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties. Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of the price is made. Is the agreement binding on Shyam?

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

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’.

The law of contract is nothing but

The Contract Act came into force

A sells his car to B. A has a right to recover the price of the car from B. This right is a

A owns a residential flat. He is entitled to a quiet possession and enjoyment of his property. This is called

A contract creates

Agreement to murder a person

An agreement is valid

Voidable contract is one

When the contract is perfectly valid but cannot be enforced because of certain technical defects. This is called

A and B enter into a contract to marry each other. Before the time fixed for the marriage, A goes mad. The contract becomes

LEGAL PRINCIPLE When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, 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. Such compensation is not given for any remote or indirect loss or damage sustained by reason of the breach. Decide, whether and to what extent B is entitled to damages in the following situation. 

FACTUAL SITUATION A contracts with B to sell him 1000 tonnes of iron at ₹ 100 per tonne. B tells A that he needs the iron for export purposes, and that he would be selling the iron at ₹ 200 per tonne. A breaks the contract. When the question comes about damages, A says he will pay only ₹ 5000 as damages because the same variety of iron was available in the market at ₹ 105 per tonne. B however contends that he should be given ₹ 100000 because that was the profit which )he would have made had A fulfilled tbe contract B had actually bought the iron at ₹ 110 and had exported it. B is

LEGAL PRINCIPLE The contract after the death of one party can be continued if it is ratified by the surviving party.

FACTUAL SITUATION Vishal, a famous artist was requested by Arun, an industrialist to draw the portrait of his deceased wife and paid ₹ 20,000/- in advance and agreed to pay when the work was completed, a sum of ₹2 lakhs·. When the portrait was half drawn, Vishal died due to a heart attack. His son also a fine artist completed his father's work and. demanded the money from Arun. Aron refused to pay and to accept the portrait drawn by Vishal's son and also demanded the advance to be returned. 

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: A contract between the father and his son is a contract of utmost good faith. In such a type of contract law presumes that at the time of entering into the contract the father was in a position to dominate the will of his son. Where one of the parties was in the position to father was in the will of the other parties, the contract is enforceable only at the option of the party whose will was so dominated.

Facts: Ram had advanced a sum of ₹10,000 to his minor son Shyam. When Shyam became major, his father Ram misused his parental position and entered into an agreement with Shyam and obtained a bond from him for a sum of ₹30,000 in respect of the advance. Whether this agreement is enforceable?

A lease agreement is a form of

The frustration of contract implies 

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

LEGAL PRINCIPLE: An agreement, the meaning of which is not certain, or capable of being made certain, is void.

FACTUAL SITUATION: A and B, who were brothers, entered into an agreement which stated that A would sell his entire share of the ancestral property to B. The agreement did not mention the specific details (like survey number) of the property.

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 An agreement is void to the extent that it restricts absolutely a party from enforcing his contractual rights by usual proceedings in any ordinary court.

FACTUAL SITUATION: A and B entered into a transaction in Delhi for sale of goods based in Delhi. The contract stated that in case of a dispute, only civil courts in Chennai would have jurisdiction. Neither A nor B resided or carried on business in Chennai.

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.