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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 Agreement - Mathematics

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प्रश्न

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 Agreements, the meaning of which is not certain, or capable of being made certain, are void.

FACT A horse was bought for a certain price coupled with a promise to give ₹500 more if the horse proved lucky.

विकल्प

  • This is a valid agreement

  • This agreement is void for uncertainty because it is very difficult to determine what luck, bad or good, the horse had brought to the buyer

  • The agreement is partially valid and partially void

  • None of the above

MCQ

उत्तर

This agreement is void for uncertainty because it is very difficult to determine what luck, bad or good, the horse had brought to the buyer

Explanation:

It is a void agreement as it is not certain or capable of being made certain.

shaalaa.com
Contract Law
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2014-2015 (May) Set 1

संबंधित प्रश्न

Principle: A condition must be complied with after the happening of the event to which such a condition is attached.

Facts:  A promises to pay Rs. 5,000 to B on the condition that he shall marry with the consent of C, D, and E. B marries without the consent of C, D, and E, but obtains their consent after the marriage. 


Principle: A condition must have complied in order to claim the benefit of an agreement.

Facts:  A agrees to transfer a farm to B, if B shall not go to England within three years after the date of the agreement, his interest in the farm shall cease. B does not go to England within the term prescribed.


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

1. Consideration is something that moves from the promisee 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.

2. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterward.

Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of Rs. 20,000. After six months of commencing the work, Hasan realized he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognized that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.
MXM Co. agreed to pay Hasan an additional f 575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional f 5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.


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.


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, the 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. Arun refused to pay and to accept the portrait drawn by Vishal’s son and also demanded the advance to be returned.


Which one of the following conditions regarding the acquisition of citizenship by naturalization has been wrongly listed?


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 second suit will not be heard on the same facts between the same parties.

Mr. Sampath went to a party alone in his wife Sunanda's car. He usually used his wife's car after office hours and his wife never objected to it. At the party, he got drunk. instead of taking the risk of driving the car, he requested his friend Mr. Vivek to drive him back home in Sunandas car, Mr. Vivek was quite sober since he had moderately consumed alcohol. On the way, Vivek knocked down a boy and injured his leg. Subsequently, on behalf of the boy, a claim for compensation was brought against Mrs.Sunanda since the car belonged to her and it was registered in her name. The insurance company refuses to pay compensation because the police report says that the person driving the car at the time of the accident had consumed alcohol.


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 procured by coercion is bad under the Indian Contract Act. Coercion is defined as committing or threatening to commit any act forbidden by the Indian Penal Code. Attempt to commit suicide is an offence under the India Penal Code.

Facts: A wanted his wife B to part with some landed property given to her by her father. B resisted fearing that her husband would squander it away. A threatened her that if she does not sign the deed transferring the property to him (i.e., A), he would commit suicide. B signed the deed. Subsequently, she challenged the deed on the ground that the deed was bad under law.


LEGAL PRINCIPLE: Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent.
FACTUAL SITUATION: Feroz and Pinto entered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur. Feroz breaches the contract and Pinto, being a resident of Udaipur. would like to sue him in Udaipur. He challenged the validity of the clause.
DECISION:


The following question consists of two statements, one labelled as. 'Assertion' and the other as 'Reason'. Read both the statements carefully and answer using the codes given below.

Assertion (A): No action lies for more damage caused by some act that does not violate a legal right.
Reason (R): An action lies for interference with another's legal right even where it causes no actual damage.


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