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Question
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.
Options
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
Solution
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.
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RELATED QUESTIONS
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: Bournville ran a sales promotion whereby if persons sent in 3 chocolate bar wrappers and a postal order for f 100 they would be sent a record. Big Beats owned the copyright in one of the records offered and disputed the right of Bournville to offer the records and sought an injunction to prevent the sale of the records which normally retailed at f 1,000. Under the Copyright Act, retailers are protected from breach of copyright if they gave notice to the copyright holders of the ordinary retail selling price and paid them 6.25% of this. Bournville gave notice stating the ordinary selling price was f 100 and three chocolate bar wrappers. The issue is whether the chocolate bar wrappers formed part of the consideration?
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 Generally, an agreement without consideration is not valid. Therefore in order to make a valid agreement some consideration which may have some value in the eyes of law, is essentially required.
FACTS William has an old car of which he makes seldom uses. He voluntarily enters into an agreement with Smith to sell this car for rupees ten thousand. Thereafter one Anson approaches William and offers to buy that car for rupees one lac as the car was one which Anson has been searching for long. Now William wants to cancel his agreement with Smith and refuses to deliver the car to him saying that consideration (price) for the car promised by Smith is negligible and, therefore, agreement with him cannot be said to be the valid one.
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 Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained by undue influence, the contract is voidable at the option of the party whose consent was so obtained.
FACTUAL SITUATION The Pragya had been worked for a businessman Anurag since the age of 18, working for a range of Anurag's businesses. In 2000, (aged 21) Pragya purchased a flat. In 2005, Mr Anurag's business was facing financial difficulties, and he asked Pragya to offer up her flat as a financial security against an overdraft facility for the business. In July of that year, the.banks solicitors wrote to Pragya, advising that she should take independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag, Pragya was unaware of the extent of the borrowing but was assured that her mortgage would not be called upon and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August 2005. In 2009, Mr Anurag's business went into liquidation and the bank formally demanded ₹ 60 24,912 from Pragya. Pragya raised the defence of undue Influence - stating that Mr Anurag had induced her to enter into the agreement, and the bank had full knowledge/notice of this undue influence which should set aside the bank's right to enforce the debt recovery against Pragya. The bank is contending that there is no undue influence.
Whether the consent to offer the flat as financial security obtained through undue influence?
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.
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: Damages are payable for breach of contract and the purpose of damages is to compensate him for the loss suffered and not to improve his position more than what it would have been if the contract had been duly performed.
Facts: A wanted to buy a house and he contracted with a surveyor S to inspect a particular house and value it for him. S surveyed the house and valued it for Rs. 10 lakhs. S, however, failed to notice the defective plumbing system in the house, and had he taken note of it, the house would have been worth only Rs. 8 lakhs. A followed S's advice and bought the house for Rs. 8 lakhs and thereafter spent Rs. 4 lakhs for repairing the plumbing system. He filed a suit against S claiming Rs. 4 lakhs as damages
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 contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.
Facts: A agrees to pay B a sum of Rs. 1 lakh if B marries C within a period of six months. B marries C during the seventh month as the marriage hall was available only during that month. B claims Rs. 1 lakh from A.
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 without consideration is void. When at the desire of one party the other party does something, the consideration is said to flow from the latter to the former.
Facts: A's house was .on fire and a child was trapped inside the house. Everyone was shouting for help. A brave onlooker, hearing the shrieks of a child, went inside the house and brought him out. The father of the child promised to pay the rescuer Rs.10,000. Subsequently, he backtracked his promise. The rescuer sued the promise for the breach.
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?
LEGAL PRINCIPLES:
1. Once a person accepts another's an offer, and signifies such acceptance to the former, a contract comes into existence between them.
2. Uncertain agreements are void agreements.
3. Rejected offers can be accepted only if renewed.
FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin. Dutt, offering him ₹4 lakhs for it. Dutt replied that he would not sell it below 5 lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach of contract.
DECISION:
Study the following information and answer the questions that follow:
Principle: A 'fixture' is something attached to the land or a building in such a way that it is regarded as an irremovable part of the property you are considering buying. Some typical 'fixtures' in a home include the hot water service, range top, wall oven, fixed floor coverings, light fittings, and a built-in (under bench) dishwasher. Garden plants, including bushes and trees, are also 'fixtures'.
Rule A. When land is sold, all 'fixtures' on the land are also deemed to have been sold.
Rule B. If a movable thing is attached to the land or any building on the land, then it becomes a 'fixture'.
Factual Situation Khaleeda wants to sell a plot of land she owns in Beghmara (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 Gurpreet for ₹60 lakh. 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 Khaleeda used this light-colored radiant carpet to negate some of the darkness in the room. Gurpreet, after moving in, realizes this and files a case to recover the carpet from Khaleeda.
Assume that in the above fact scenario, Khaleeda no longer wants the carpet. She removes the elaborately carved door to the house after the sale has been concluded and claims that Gurpreet has no claim to the door. The door in question was part of Khaleeda's ancestral home in Nagercoil (Tamil Nadu) for more than 150 years before she had it fitted as the entrance to her Beghmara house.
Amongst the following options, the most relevant consideration while deciding a case on the basis of the above two principles, would be
