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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: 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.
Options
Soloman did not use the loan amount for his use and hence, no action can be initiated against him.
The Bank cannot initiate any action against Soloman as he is the Secretary of a Registered Trade Union.
The Bank can recover the loan amount from the Trade Union as Soloman is the Secretary of the Union.
The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case, no immunity will work.
Solution
The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case, no immunity will work.
Explanation:
The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case, no immunity will work. The Trade Union Act does not provide any immunity in any civil court to either a registered Trade Union or its officer against non-repayment of a personal loan.
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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 A contract cannot be enforced by or against a person who is not a party to it. However, where some benefit is conferred on the third party by the contract itself, their third party can be allowed to enforce that contract to get such benefit.
FACTS Dinesh is liable to pay ₹50000 to Suresh. In order to discharge this liability, Dinesh enters into a contract with Ramesh by which Dinesh sells his car to Ramesh for ₹1 lac. Ramesh takes the delivery of the car and promises/assures to pay its price at the earliest. Dinesh separately informs Suresh about this contract for his satisfaction. Ramesh fails to pay the car's price. Suresh wants to join Dinesh in filing suit against Ramesh for the recovery of the price of the car. Whether Suresh is entitled to do so?
X duly posts a letter of acceptance to Y. But the letter is lost in transit by the negligence of the Post Office
Given below is a statement of legal principle followed by factual situations. 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 is 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 Rs. 20/- each. B made a telephone call to A to inform him that he had accepted the offer. Just as he was stating his acceptance, a very noisy aircraft few over B's house. A was not able to hear the acceptance.
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 was arrested by the police for committing an offence and was subsequently granted bail by the Court. One of the conditions imposed by the Court for granting bail was that A arranges for a surety for ₹50,000. A approached B to be a surety. B agreed but insisted that they enter into a contract whereby A would deposit ₹50, 000 into B's account, which would be returned to A by B after the case was over.
Principle: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake.
When consent to an agreement is caused by coercion, undue influence, fraud, or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.
Facts: 'X' threatens to gun down 'Y' if he ('Y') does not sell his property worth ₹2000000 for ₹ 100000 only. As a consequence, 'Y' agrees to sell it as demanded by 'X'.
Which of the following derivations is correct?
Principle: Caveat emptor, i.e., 'let the buyer beware' stands for the practical skill judgment of the buyer in his choice of goods for purchase. It is the business of the buyer to judge for himself that what he buys has its use and worth for him. Once bought, and if the buyer is not up to his expectations, then he alone is to blame and no one else.
Facts: For the purpose of making a uniform for the employees, 'A' bought dark blue coloured cloth from 'B' but did not disclose to the seller ('B') the specific purpose of the said purchase. When uniforms were prepared and used by the employees, the cloth was found unfit. However, the cloth was fit for a variety of other purposes (such as, making caps, boots, and carriage lining, etc)
Applying the afore-stated principle, which of the following derivations is correct as regards remedy available to 'A' 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: Every partner is liable alone and jointly with other partners for the debts of a partnership firm incurred for the business. Every partner is an agent of every other partner while being a principal in his own right in the business of the partnership.
Fact Situation: Varun is a partner in a firm with Chinmoy and Jaffar. Jaffar purchases a car for his personal purpose and obtains credit for the same in the name of the partnership behind the back of the other partners. He fails to pay the due amount on the expiry of the period of credit.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
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.
