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Question
Principle: Where one of the parties to a contract was in the position to dominate the decision of the other party, the contract is enforceable only at the option of the party who was in a position to dominate the decision of the other party.
Facts: A doctor asked his patient to make a payment of ₹ 10,00,000/- (Ten Lac Only) for treatment of his fever. The patient paid an amount of ₹5,00,000/- (Five Lac Only) and promised to pay the remaining amount after the treatment. After treatment, the patient recovered from fever. The doctor demanded the remaining amount from the patient. The patient refused to pay.
Options
The contract is enforceable against the doctor.
The contract is enforceable against the patient.
The contract is not enforceable.
The contract is not enforceable against the patient.
Solution
The contract is enforceable against the patient.
Explanation:
This contract is enforceable against the patient as evident from the principle, “the contract is enforceable only at the option of the party who was in a position to dominate decision of the other party.” In this case, the doctor dominated the decision of the patient. So, if the doctor wants, he can enforce the decision against the patient.
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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 Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, to that extent is void.
FACTUAL SITUATION A company entered into a contract with Coca Cola Ltd. to bottle soft drinks produced by Coca Cola. One of the terms of the contract was that the company would not bottle soft drinks for any other competitor of Coca Cola during the pendency of the contract.
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 requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be 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 ₹20/- each. B sent an e-mail to the address mentioned in the letter-head, accepting the offer.
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: In case of a breach of contract, compensation can be awarded for the personal inconvenience suffered by a party by reason of the breach, 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.
Factual Situation: Sunita and Sushmita bought bus tickets for a journey from Adyar to Mandaveli. The bus was to go to St. Thomas Mount via Mandaveli. However, the driver mistakenly took the wrong direction and the two girls were dropped at a distance of 2Vi miles from Mandaveli on the highway. With no other transportation in sight nor a place to stay, the two had to walk 2V4 miles at midnight. Later they filed a case against the bus company and claimed 5,000 as damages for the inconvenience caused in having to walk and 6,500 for Sushmita having fallen ill by catching a cold during the night.
Decision:
Principle: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. The expression of willingness/desire results in a valid proposal only when it is made/addressed to some person(s).
Facts: 'X' makes the following statement in an uninhabited hall. 'I wish to sell my mobile phone for ₹1000.'
Which of the following derivations is correct?
Principle: A contract that is duly supported by real and lawful consideration is valid not withstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract and not for the courts (to decide) when the contract is sought to be enforced. An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate, but the inadequacy of the consideration may be taken into account by the court in determining the question of whether the consent of the promisor was freely given.
Facts: 'A' agrees to sell his mobile phone worth ₹20000 for ₹100 only to ‘B’ as the content is freely given.
Which of the following derivations is correct?
LEGAL PRINCIPLE: An agreement is void if the court regards it as opposed to the public policy.
FACTUAL SITUATION: Sunita, while her husband Shankar was alive, promised to marry Neel in the event of Shankar's death. Subsequently, Shankar died, but Sunita refused to marry Noel. Neel sues Sunita for damages for breach of promise.
DECISION:
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: Employers/Principles are vicariously liable, under the respondeat superior doctrine, for negligent acts or omissions by their employees/agents in the course of an employment agency. A servant/agent may be defined as any person employed by another to do work for him on the terms that he, the servant/agent, is to be subject to the control and directions of his employer/principal in respect of the manner in which his work is to be done.
Factual Situation: A motor car was owned by and registered and insured in the name of A (wife) but was regarded by her and her husband (B) as "our car." B used it to go to work and A for shopping at the weekends. B told A that if ever he was drunk and unfit to drive through, he would get a sober friend to drive him or else telephone her to come and fetch him. On the day in question, the husband telephoned the wife after work and told her that he was going out with friends. He visited a number of public houses and had drinks. At some stage, he realized that he was unable to drive safely and asked a friend, C, to drive. C drove them to other public houses. After the last had been visited C offered the three friends (X, Y, and Z) a lift and they got in, together with B who was in a soporific condition. C then proceeded, at his own suggestion, to drive in a direction away from the B's home to have a meal, On the way, due to C's negligent driving, an accident occurred in which both B and C were killed and the other friends got injured. X, Y, and Z brought an action against the wife both in her personal capacity and as administratrix of the husband's estate. Decide whether A is liable.
Decision:
Legal Principle: An agreement entered into by way of a wager/bet is unenforceable in law.
Fact Situation: Thomas is very good at predicting the outcomes of cricket matches. Raja and Hoja give him rupees thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins rupees three lakh after betting three thousand rupees.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
