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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 - Mathematics

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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: It is a case of fraud where a party to a contract knows or believes a fact to be true, but conceals it actively from the other party with a view to inducing that person to enter into the contract.

Facts: While taking a life insurance policy, in reply to questions by the insurance company during the inquiry into his proposal, Zameer deliberately concealed the fact of his medical treatment for a serious ailment, which he had undergone only a few weeks ago.

Options

  • The concealment of a fact by Zameer amounted to fraud.

  • The act of Zameer did not amount to fraud, as disclosing the fact would have resulted in the exposure of his privacy.

  • The act of Zameer did not amount to any misrepresentation. 

  • The act of Zameer amounted to innocent misrepresentation.

MCQ

Solution

The concealment of a fact by Zameer amounted to fraud.

Explanation:

The concealment of a fact by Zameer amounted to fraud. According to Section 17 of the Contract Act, it is required for every party to disclose all facts to the opposite party before entering into a contract and there should be no active concealment of facts or knowledge by one. Not disclosing of facts to dishonestly induce the other person to deliver property or alter/ destroy the whole/ part of a valuable security or anything which is signed or sealed and is capable of being converted into valuable security will be held guilty under Section 420 of the Indian Penal Code. Zameer had a duty to disclose details about his medical treatment to the insurance agency. Deliberate concealment of facts from an insurance company with dishonest intentions about past medical treatment amounts to Fraud. 

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Indian Contract Act (Entrance Exams)
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2016-2017 (May) Set 1

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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. 

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A. When land is sold, all `fixtures' on the land are also deemed to have been sold.
B. If a moveable thing is attached to the land or any building on the land, then it becomes a 'fixture'. 

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Khaleeda wants to sell a plot of land she owns in Baghmara, Meghalaya and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Garret for sixty laky rupees. After completing the sale, she removes the expensive Iranian carpet which used to cover the entire wooden floor of one of the bedrooms. The room had very little light and Khalid used this light-colored radiant carpet to negate some of the darkness in the room. Garret, after moving in, realizes this and files a case to recover the carpet from Khalid. Rule C: If a moveable thing is placed on land with the intention that it should become an integral part of the land or any structure on the land it becomes a fixture.


In this Question, the problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question.

Rules 
A. The act of using threats to force another person to enter into a contract is called coercion.
B. The act of using influence on another and taking undue advantage of that person is called undue influence.
C. In order to prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by the contract.
D. In order to prove undue-influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligations under the contract.

Facts: 
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In the above fact situation:


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. 

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