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All questions of Contract / Civil Law for CLAT Exam

Principle 1: A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property the age of majority is twenty one.

Principle 2: A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

Principle 3: In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts
Ajay convinces Bandita, a girl aged 18 that she would sell her land to him. Bandita’s mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Chaaru challenges this transaction claiming the Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus Ajay is in a difficult situation and has no idea how to recover his money from Bandita.

Q.

Which  of the following is correct?

a)If Ajay is allowed to recover, Chaaru will benefit from both the money and the land.
b)If Ajay is not allowed to recover that will cause him injustice as he has not paid off the entire sale price.
c)If Ajay is allowed to recover the money, that will defeat the law framed for protecting the minors against fraudulent persons
d)None of the above
Correct answer is option 'C'. Can you explain this answer?

Anaya Patel answered
The correct option is C.
Direct from the principles.

Principle – Violation of a legal right, with or without actual damage, gives rise to a tort.
Facts – Ravi and Lakshman are not the best of friends. They have strained relations and they constantly compete against one another for better business prospects. Ravi sets up a grocery store where he sells food grains for Rs. 20 per kilogram, a rate that is substantially lower than other stores in the same area. The store is a huge success, and Ravi gains huge profits, as everybody prefers to buy the grains from his store. Soon after, Lakshman sets up another store next to Ravi‘s and puts up a board that says, Rice – Rs.15 per kilo and  Wheat – Rs. 12 per kilo‘. Attracted by the new offer, all of Ravi‘s customers now prefer to buy grains from Lakshman‘s store. Ravi, hence, incurs heavy losses and is forced to close down his store. He believes that Lakshman has set up the shop in order to make his business fail, and decides to sue Lakshman for damages. Will Ravi succeed?
a)No, Ravi cannot sue Lakshman, as Lakshman had an equal right to set up a store and sell commodities at his own prices.
b)No, Ravi will not succeed, as no legal right has been violated by Lakshman‘s act of setting up a store and selling food grains for a cheaper price.
c)Yes, Ravi will succeed, as he has suffered great losses, and the damage he has suffered must be compensated by Lakshman.
d)Ravi can sue, as Lakshman has committed a tort.
Correct answer is 'B'. Can you explain this answer?

Raj Joshi answered
The principle does not talk about exercising your own rights, but rather about violation of a legal right. There has been no violation of a legal right in this case. Hence, the right answer would be 

Principle: A contract is an agreement enforceable by law.
Facts: X invited Y to her house for dinner. Y accepted the invitation but later did not go. On Y's failure to attend, X filed a suit against Y for the price of non-consumed food. Can this agreement be enforced by law?
  • a)
    This agreement cannot be enforced as it is just a social agreement
  • b)
    This agreement can be enforced as X can recover the price of non-consumed food.
  • c)
    This agreement cannot be enforced as Y did not accept the invitation in writing.
  • d)
    This agreement can be enforced since once accepted Y should have turned up for dinner.
Correct answer is option 'A'. Can you explain this answer?

Monika joshi answered
Explanation:

The principle states that a contract is an agreement enforceable by law. However, in this case, the agreement between X and Y is not a contract but just a social agreement.

The facts of the case state that X invited Y to her house for dinner, and Y accepted the invitation but later did not go. On Y's failure to attend, X filed a suit against Y for the price of non-consumed food.

Therefore, the correct answer is option 'A' - this agreement cannot be enforced as it is just a social agreement.

Reasoning:

There are several reasons why this agreement cannot be enforced as a contract:

1. No intention to create legal relations: The invitation for dinner was a social arrangement between X and Y, and there was no intention to create legal relations. Therefore, this does not qualify as a contract.

2. No consideration: A contract requires consideration, which is something of value exchanged between the parties. In this case, there was no consideration as the invitation for dinner was a social arrangement.

3. No offer and acceptance: For a contract to be valid, there must be an offer and acceptance. In this case, there was an invitation, but there was no offer and acceptance of any terms.

4. No written agreement: While a contract can be verbal or written, a written agreement is always better to avoid any confusion later. However, in this case, there was no written agreement.

Conclusion:

In conclusion, the agreement between X and Y for dinner cannot be enforced as a contract as it was just a social arrangement with no intention to create legal relations, no consideration, no offer and acceptance, and no written agreement. Therefore, X cannot recover the price of non-consumed food from Y.

Facts: A promises B to drop prosecution which he has instituted against B for robbery and B promises to restore the value of the things taken.
  • a)
    The agreement is valid
  • b)
    The agreement is voidable
  • c)
    The agreement is void as its object is unlawful
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?

Bijoy Pillai answered
A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is void, as its object is unlawful. (h) A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is void, as its object is unlawful."

Principle 1 – An offer may be made to the world at large, but a contract can only be made with the person who performs the conditions of the offer and thereby accepts the offer.
Principle 2 – In order for a contract to be valid, there must be an intention to enter into legal relations.
Facts – Fight Anopheles Inc. is a company that manufactures mosquito repellant coils, sprays, etc. They have invented a new mosquito repellant cream that insulates specifically from the lethal bite of the Anopheles mosquito, the transmitting agent for malaria. In order to advertise and increase sales of this repellant cream, they put out an advertisement in the popular daily, The Logical Citizen. It claims that Fight Anopheles Inc. shall pay a sum of Rs. 5000 to anyone who contracts malaria despite having used the repellant cream. Further, it states that Rs. 50,000 has already been deposited at the Enigma Bank as a mark of Anopheles‘ sincerity in the matter. Ms. Dunbar comes across this advertisement, and is intrigued by the product. Hoping that it will keep the mosquito menace at bay, she purchases it and uses it every day, but contracts malaria nonetheless. Upset that she had put her faith in an absolutely ineffective product, she claims that the sum of Rs. 5000 be paid to her immediately.
Q.
Is Anopheles liable to pay?
a)Yes, Anopheles is liable to pay, as a valid contract gets formed when Ms. Dunbar performs the conditions of the offer and thereby accepts it.
b)Yes, Anopheles is liable to pay, as there has been an intention to contract.
c)Yes, Anopheles is liable to pay, as they have misled customers through the advertisement.
d)No, Anopheles would not be liable to pay. The advertisement is a mere puff, there is no intention to enter into legal relations.
Correct answer is option 'A'. Can you explain this answer?

Anand Menon answered
self explanatory

Principle – The master is liable for the wrongful acts of the servant done in the course of employment.
Facts – Pradyuman is a mechanic working in the car mechanics shop owned by Abhjit. Pallavi wants her Audi A8 to be serviced and cleaned, as she is planning to go on a long drive soon. She drops off the car at the mechanic‘s, and asks Pradyuman to have it ready in two days. Pradyuman, while trying to drive the car to the jet-cleaning area, accidentally bumps it against the wall and a dent is created on the car door. When Pallavi comes to take her serviced car, she is livid at the condition in which it is returned to her, and wishes to sue for damages.
a)Only Pradyuman will be liable as he has caused the damage to the car.
b)Both Pradyuman and Abhijit will be jointly liable.
c)Abhijit will be liable to pay damages, as Pradhyuman is his servant and the damage was caused in the course of employment.
d)Pallavi will not be entitled to claim damages as she should not have given her car to a small mechanic such as Abhijit.
Correct answer is option 'C'. Can you explain this answer?

Pratibha jain answered
Principle of Vicarious Liability
In this scenario, we are dealing with the principle of vicarious liability, which states that an employer (master) is liable for the wrongful acts of an employee (servant) that occur in the course of employment.
Analysis of the Situation
- Employment Context: Pradyuman, the mechanic, was performing his job duties when he accidentally damaged Pallavi's car.
- Course of Employment: The act of driving the car to the jet-cleaning area was part of his responsibilities as a mechanic at Abhijit's shop.
Liability of the Parties
- Pradyuman's Liability: While Pradyuman caused the damage, his actions were within the scope of his employment.
- Abhijit's Liability: As the owner of the shop, Abhijit is responsible for the actions of his employee that occur during the performance of their work duties.
Conclusion
- Joint Liability: The correct answer is option 'C': Abhijit will be liable to pay damages because Pradyuman is his servant, and the damage occurred while he was performing his job responsibilities.
Importance of Vicarious Liability
- This principle ensures protection for third parties (like Pallavi) who suffer loss due to the actions of employees, thus promoting accountability in the employer-employee relationship.
In summary, Abhijit, as the employer, bears responsibility for the actions of his employee Pradyuman, which aligns with the principle of vicarious liability.

Principle - Violation of a legal right, with or without actual damage, gives rise to a tort. However, actual damage without violation of a legal right does not give rise to tortious liability.
Facts – Mr. Akhil lives in a locality that lies just off the main road, which supports heavy traffic and is one of the most important roads in his city. The street on which his house is located is, however, quiet and peaceful, and Akhil is pleased to live there. One day, some road repair works are undertaken on the main road, and as a result, the municipal authorities decide to divert the traffic through the street on which Akhil resides. Akhil is greatly disturbed and annoyed by the constant sound of the vehicles, honking, and traffic jams along the narrow street. He wishes to sue the municipal authorities for the nuisance caused by this diversion of traffic.
Q.
Will he succeed?
a)Yes, Akhil will succeed, as his legal right to a peaceful environment is violated by the constant noise of the vehicles.
b)Yes, Akhil will succeed, as his mental peace has been affected by the act of the municipal authorities.
c)No, Akhil has no legal right to enjoy a peaceful street, so there has been no violation of a legal right, despite actual damage. So, he cannot succeed in a tortious claim.
d)Facts are inadequate to decide.
Correct answer is option 'C'. Can you explain this answer?

Gitanjali Dey answered
No legal rights have been violated, hence, there would be no tortuous liability, despite actual damage being caused

A agrees to pay B Rs. 1000 if the two straight lines should enclose a space           
  • a)
    The agreement is void           
  • b)
    The agreement is not void           
  • c)
    Either a or b           
  • d)
    None of them
Correct answer is option 'A'. Can you explain this answer?

Dia Mehta answered
A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void. Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made. 

Directions: Questions 17- 20 are based on a common set of Principles and Facts. Answer accordingly.
Principle 1 – An action against violation of Fundamental Rights can only be brought against legislative or administrative actions of the state, and not against private actions.
Principle 2- 'State‘ includes the Government of India, the Parliament, the state governments and legislatures, and all local and other authorities under the control of the government of India.
Principle 3 – The fundamental right to equality entails that equals be treated equally.
Principle 4 – No citizen shall on the grounds of caste (among other grounds), be ineligible for an office under the State.
Principle 5 – Any law or action of the State that contravenes fundamental rights will be void to the extent of that contravention.
Facts – Nirmala and Sitara are both civil servants who have served in different capacities for about twelve years now. Despite several transfers and changes in designation, they have continued to remain friends. One day, they both attend a stirring talk by a Dalit rights activist, and are so influenced by this talk, that they want to contribute to the Dalit movement in their capacity as civil servants. They decide to apply for managerial posts at the Department for Minority Affairs. Nirmala‘s application for the post was rejected on the grounds that she was Brahmin herself, and not eligible to manage the affairs of SCs and STs. Sitara‘s application for the post was rejected due to past animosity with Mr. Kapur, head of the Minority Affairs Department. Mr. Kapur, in a scathing email, informed her that she would not be considered for any post that required his approval. Nirmala and Sitara are both enraged by these rejections, and allege that their fundamental rights have been violated.
Q. 
The discrimination here is based on her caste. Therefore, her fundamental right in this regard has been violated. 
Have the fundamental rights of Nirmala been violated in this instance?
a)Yes, as she was denied the post based on the fact that she was Brahmin and therefore ineligible.
b)No, as the post required an SC/ ST candidate,and the law does not prevent unequals from being treated unequally.
c)The facts as to the reason for discrimination are inadequate.
d)Yes, the very requirement of an SC/ ST candidate for the post was discriminatory.
Correct answer is option 'A'. Can you explain this answer?

Ayush Roy answered
The discrimination here is based on her caste. Therefore, her fundamental right in this regard has been violated. 

“A” promise to give money or money’s worth upon the determination or ascertainment of an uncertain event is called
  • a)
      Lottery 
  • b)
    wager 
  • c)
      Chit 
  • d)
     bet
Correct answer is 'B'. Can you explain this answer?

Samarth Sharma answered
Wagering Agreement (Section30)
literally the word `wager’ means `a bet’ something stated to be lost or won on the result of a doubtful issue, and, therefore, wagering agreement are nothing but ordinary betting agreements. Thus where A and B pay A Rs.100 or where C and D enter into an agreement that on tossing up a coin ,if it falls head upwards C will pay D Rs.50 and if it falls tail upwards D will pay Rs.50 to C, there is a wagering
agreement. According to Sir William Anson, a wagering agreement, is a promise to give money or money’s worth upon the determination or ascertainment of an uncertain event is called wager .

Legal Principle 1: Acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor
Legal Principle 2: Acceptance once completed, makes the agreement binding on both the parties
Facts: A accepts to buy B’s offer of his motor car for Rs. 4 Lakhs. The acceptance was put into e-mail. Unfortunately, when the e-mail was put, there is distortion as a result of which B is not in a position to really read what A has written
 
  • a)
    Both the parties are bound to perform their part of the agreement
  • b)
    Nobody is bound to perform the agreement
  • c)
    A is bound to perform the agreement but not B
  • d)
    B is bound to perform the agreement but not A
Correct answer is option 'A'. Can you explain this answer?

Smita gupta answered
Legal Principles:
1. Acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor.
2. Acceptance once completed, makes the agreement binding on both the parties.

Facts:
A accepts to buy B's offer of his motor car for Rs. 4 Lakhs. The acceptance was put into an email. Unfortunately, when the email was sent, there was distortion, as a result of which B is not in a position to really read what A has written.

Conclusion:
In this case, the legal principle of acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor applies. Therefore, A is bound to perform the agreement as the acceptance was put into the course of transmission, and once completed, the agreement becomes binding on both parties. The fact that there was distortion in the email does not affect the completion of acceptance. Both parties are bound to perform their part of the agreement as the acceptance was communicated, and the agreement became binding. Hence, option 'A' is the correct answer.

Directions: Questions 21-24 are based on a common set of Principles and Facts. Answer accordingly.
Principle 1 – An offer is made when one person signifies to another, his willingness to do or not do something, with a view to obtaining that person‘s assent.
Principle 2 – When the person to whom the offer is made signifies his assent thereto, the offer is said to be accepted.
Principle 3 - When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise.
Principle 4 – An agreement without consideration is not enforceable under law.
Principle 5 – Parties to a contract must agree upon the same thing in the same sense.
Principle 6 – Parties competent to contract must be major, and of sound mind.
Facts – Sonia is a gardener in the mansion of Mr. Kapoor. Mr. Kapoor is extremely fond of his pet dog, Cooper. One day, Kapoor realizes that Cooper is missing from his kennel. He is frantic with worry, and sends Sonia on a quest for the dog. Sonia sets out, pastes notices in public places and enquires about the dog. She has been instructed to return only if she finds the dog. In the meantime, Kapoor announces in the popular newspaper, The Statesman, that Cooper
is missing, and that anybody who finds the Labrador and brings him back would be awarded a sum of Rs. 10,000. The next day, Kaza brings a brown Labrador with him and claims the reward. Mr. Kapoor immediately realizes that the dog is not Cooper, and refuses to pay the sum. Kaza asserts that the dog is named Cooper, is a brown Labrador resembling the picture in the newspaper, and since he has accepted the offer by bringing the dog, there is a valid contract formed, and Kapoor is bound to pay the consideration of Rs. 10,000. Three days later, Sonia manages to find Cooper in a nearby park, and brings him back home. Kapoor is overjoyed, and raises Sonia‘s salary from Rs. 12,000 per month to Rs. 20,000. Sonia then discovers the notice in the newspaper, goes to Kapoor, and claims the reward. Kapoor refuses to pay, as he as already given her an increment in salary.
Que: Suppose that Harsha, Kapoor‘s neighbour,while taking a walk in the park, recognizes Cooper and brings him back. He is unaware of the newspaper notice. Can he claim the reward?
a)No, he cannot claim the reward, as there has been no knowledge of the offer, and hence no acceptance.
b)Yes, he can claim the reward, as he could have been expected to know of the offer,being Kapoor‘s neighbour.
c)No, he cannot claim the reward, as there is no contract.
d)He can claim the reward, as the offer was a public one, and it must be assumed that the offer is made to the world at large. It does not matter if every person has specific knowledge of the offer. It suffices that the offer was made in a newspaper.
Correct answer is option 'A'. Can you explain this answer?

Shanaya Sharma answered
Since his neighbor is unknown of the offer made by Kappor so he has no knowledge of it and thus no acceptance and an offer is meant only when the other accepts it (principle 2). So he cannot claim the reward.

Express contract means a contract made by
  • a)
    words either spoken or written.
  • b)
     documents
  • c)
    both words and documents
  • d)
    all of the above.
Correct answer is option 'D'. Can you explain this answer?

Kavya Sharma answered
contract
A legally binding agreement between two parties wherein the terms are clearly defined either orally or in writing.
An express contract is a contract with clearly stated terms. This differs from an implied contract, which is a contract that is believed to exist based on the behaviors of those involved. The terms that are explicitly defined within an express contract include the quantity of goods delivered (or specific services rendered), as well as the time period during which the transaction is expected to take place.

Mistake of both the parties about the subject matter renders an agreement
  • a)
    Voidable
  • b)
    Unavoidable
  • c)
    Void
  • d)
    Valid
Correct answer is option 'C'. Can you explain this answer?

Anaya Patel answered
When both parties of a contract are under a mistake of fact essential to the agreement, such a mistake is what we call a bilateral mistake. Here both the parties have not consented to the same thing in the same sense, which is the definition of consent. Since there is an absence of consent altogether the agreement is void.

Principle 1 – An offer is the final expression of willingness by the offeror to be bound by his offer, should the other party choose to accept it.
Principle 2 – An invitation to offer merely invites others to make offers that one may or may not accept. It is not an offer in itself.
Principle 3 – Acceptance needs to be communicated to the offeror.
Facts – Lockhart writes to his closest friend and aide, Helga, ―I wish to sell my book, A Cauldron Full of Hot Strong Love, for 200 Galleons.‖
He then sends a letter to Sirius – ―Sirius, I have been meaning to sell my book, the one that chronicles our adolescent experiments in love and other adventures. What do you think?‖
He also writes to Harry – ―Harry, I am your biggest fan. Would you like to buy my book, A Cauldron Full of Hot Strong Love, for 200 Galleons?‖ and to Ron ―Ron, I see that you are in need of advice on matters of the heart. Why don‘t you buy my book, A Cauldron Full of Hot Strong Love, for 200 Galleons? Willing to offer a discount of 20%.‖
Harry sees the letter, makes a mental note of Lockhart‘s message, and throws the letter in the dustbin. He intends to buy the book, and makes a reminder note to write back to Lockhart and send him a sum of 200 Galleons.
Ron receives the letter and immediately writes back to Lockhart saying that he would like to buy the book. He posts the letter, the letter reaches Lockhart, but he then decides not to offer the discount or even sell the book to Ron.
Question:Has Lockhart made Sirius an offer?

a)Yes, by informing Sirius of the desire to sell,he makes an offer to sell the book.
b)No, this is not an offer. He has merely asked Sirius what he thinks of Lockhart‘s desire to sell the book.
c)Can‘t say if this is an offer or invitation to offer.
d)None of the above.
Correct answer is option 'B'. Can you explain this answer?

Ram chandra answered
Understanding the Nature of Offer
In the context of contract law, it is crucial to distinguish between an offer and an invitation to offer. Lockhart's communication with Sirius serves as a perfect example of this distinction.
Invitation to Offer vs. Offer
- Definition of Offer: An offer is a clear expression of willingness to enter into a contract, which, upon acceptance, creates a binding agreement.
- Definition of Invitation to Offer: An invitation to offer seeks to elicit offers from others; it is not intended to create a binding agreement on its own.
Analysis of Lockhart's Letter to Sirius
- Content of the Letter: Lockhart writes to Sirius, "What do you think?" This phrase indicates that he is not asserting a willingness to be bound by an offer to sell the book.
- Lack of Commitment: By merely asking for Sirius's opinion, Lockhart does not communicate a definite offer. Instead, he invites Sirius to express his interest or make an offer.
Conclusion
- Correct Answer: Therefore, the correct interpretation of Lockhart's communication to Sirius is option B: No, this is not an offer. He has merely asked Sirius what he thinks of Lockhart's desire to sell the book.
In summary, Lockhart has not made an offer to Sirius, as the language used does not convey a clear willingness to be bound by contractual terms.

PRINCIPLE 1: An agreement entered into with a minor is void ab initio. Any agreement entered into with a major is valid.
PRINCIPLE 2: A minor is anyone who is below 15 years of age.
PRINCIPLE 3: A contract is incomplete without consideration.
FACTS: Rebecca was born in 1997 in a small town in Karnataka. She is from an affluent family, but her parents are very strict and don’t give her enough pocket money to meet her expenses. Hence, she has to manage her income in other ways. On one occasion, she enters into an agreement with Uncle Mario, her father’s friend, to sell her old cell phone, which is perfect working condition. Mario hands over Rs. 2000 in advance as consideration for the deal.
Q. Is the contract entered into between the two valid?
  • a)
    No, because an advance payment is not sufficient consideration
  • b)
    Yes, because all the elements of a valid contract are present
  • c)
    No, because Rebecca is below 18 years of age
  • d)
    Insufficient information
Correct answer is option 'B'. Can you explain this answer?

Samta garg answered
Understanding the Validity of the Contract
In the scenario involving Rebecca and Uncle Mario, we need to analyze the validity of their contract based on the provided principles.
Age of Majority
- According to Principle 2, a minor is defined as anyone below 15 years of age.
- Rebecca was born in 1997, which means she was 25 years old in the current context. As such, she is not a minor.
Agreement Validity
- Principle 1 states that an agreement with a minor is void ab initio, while any agreement with a major is valid.
- Since Rebecca is above the age of 15 and thus considered a major, the agreement she entered into with Uncle Mario is valid.
Consideration
- Principle 3 states that a contract is incomplete without consideration.
- In this case, Uncle Mario provided Rs. 2000 in advance as consideration for the sale of the cell phone, fulfilling the requirement for consideration.
Conclusion
- Therefore, since all elements of a valid contract are satisfied, including the parties' capacity (Rebecca being a major) and the existence of consideration, the correct answer is indeed option 'b': Yes, because all the elements of a valid contract are present.
This assessment confirms that the contract between Rebecca and Uncle Mario is valid and enforceable.

Mere silence is no fraud unless           
  • a)
    the silence is deceptive
  • b)
    there is a change in the circumstances to be brought to the notice of other party
  • c)
    there is a duty to speak
  • d)
    all of the above
Correct answer is option 'C'. Can you explain this answer?

Samarth Sharma answered
At the same time it may be mentioned here that Explanation to Section 17 lays down that mere silence as to facts does not amount to fraud. It states that – mere silence as to facts does not amount o fraud unless it is the duty of the person keeping silence to speak or when his silence is equivalent to speech.

Principle 1: A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property the age of majority is twenty one.
Principle 2: A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.
Principle 3: In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.
Facts
Ajay convinces Bandita, a girl aged 18 that she would sell her land to him. Bandita’s mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Chaaru challenges this transaction claiming the Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus Ajay is in a difficult situation and has no idea how to recover his money from Bandita.

Chaaru is justified in challenging the sale transaction because:
  • a)
    Bandita is of unsound mind and is not in a position to make rational decisions.
  • b)
    Though Bandita is eighteen year old, she will be treated as a minor, as Chaaru is her guardian.
  • c)
    Though Bandita is eighteen year old, she cannot sell the land without the permission of her mother.
  • d)
    Though Bandita is eighteen year old she should not be treated like a person who has attained the ageof majority.
Correct answer is option 'B'. Can you explain this answer?

Parul Roy answered
Read principal 1..when a minor is administered by a guardian the age of maturity is 21.

A contract to which a minor is a party, is known as:
  • a)
    Void ab initio
  • b)
    Voidable at the option of minor
  • c)
    Voidable at the option of other party    
  • d)
    Valid
Correct answer is option 'A'. Can you explain this answer?

Minors and Indian Contract Act, 1872. According to Section 3 of the Indian Majority Act, 1875, a person domiciled in India who is under the age of eighteen years, is a minor. Minor Agreements: A Minor is an incompetent person to enter into a contract subject to certain exceptions.

Principle 1 - Violation of a legal right, with or without actual damage, gives rise to a tort. However, actual damage without violation of a legal right does not give rise to tortious liability.
Principle 2 – When a person owes a duty of care to another, and causes breach of such duty of care, he can be said to have violated the other person‘s legal right.
Facts – Stuti studies in a law school, and she wishes to avail the University‘s exchange programme through which she will get an opportunity to study at a foreign law school for one semester. According to the rules to apply  for the exchange programme, she must deposit a certain sum with the university before a specified date. So, Stuti goes to the bank, which has a branch in her university‘s campus, and hands over a cheque to be encashed. The banker, who did have the sufficient amount of cash required, and deposited in her account, refused to encash it without giving her any valid reason. Stuti then goes to a different bank, gets her cheque encashed, and successfully applies for the exchange programme.
Q. Will the banker still be liable for his act?
a)The banker will be liable, as he has refused to encash Stuti‘s cheque without a valid reason,and has violated her legal right. Although there was no real damage that Stuti suffered,he will still be liable.
b)No, the banker will not be liable as Stuti still managed to get the required sum from a different bank, and successfully applied for the exchange programme. She has not suffered any damage.
c)The banker‘s refusal to encash a cheque does not amount to violation of a legal right, so he will not be held liable.
d)Can‘t say. The facts are inadequate to decide.
Correct answer is option 'A'. Can you explain this answer?

Self explanatory. There need not be actual damage, for a claim in the law of Torts. If there has been a violation of a legal right, the claim would stand. Refusal to encash a cheque, despite having the sufficient amount would amount to the violation of a legal right

Principle: Mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not a fraud, unless the circumstances of the case are such that, on close examination it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.
Facts: X sells by auction to Y, a horse which X knows to be of unsound state of mind. X says nothing to Y about the horse’s unsound state of mind. Give the correct answer.
 
  • a)
    X can be held liable for fraud
  • b)
    X can be held liable for misrepresentation
  • c)
    X cannot be held liable, because he did not say anything positive about the mental state of the horse
  • d)
    X cannot be held liable because it is the buyer who must be aware of the things.
Correct answer is option 'C'. Can you explain this answer?

Apoorv gupta answered
Explanation:

The principle states that mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not a fraud, unless the circumstances of the case are such that, on close examination it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.

In this case, X sells a horse which he knows to be of unsound state of mind to Y, but he says nothing to Y about the horse’s unsound state of mind. The correct answer is 'C' i.e. X cannot be held liable, because he did not say anything positive about the mental state of the horse.

Reasoning:

To understand why the correct answer is 'C', let's look at the following points:

• X did not say anything positive about the mental state of the horse. He did not make any false representation about the horse's state of mind.

• The principle states that mere silence is not a fraud unless the circumstances of the case are such that, on close examination, it is found to be the duty of the person keeping silent to speak.

• In this case, X did not have any duty to speak about the horse's mental state unless Y asked him about it. Y did not ask X about the horse's mental state, and therefore X did not have a duty to speak.

• Therefore, X cannot be held liable for fraud or misrepresentation in this case.

Conclusion:

In conclusion, the correct answer is 'C' i.e. X cannot be held liable, because he did not say anything positive about the mental state of the horse. The principle of mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not a fraud unless the circumstances of the case are such that, on close examination, it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.

Principle 1 – Whosoever causes the death of anyperson by a rash or negligent act is liable to bepunished for culpable homicide.
Principle 2 – Negligence refers to the gross andculpable neglect or failure to exercise reasonable careand caution against harm to either the general publicor to a particular individual.
Facts – Aayush is driving back home from a busy dayat work. He stops by at a grocery store to buy milk,eggs and strawberries. The street is a busy one, andAayush leaves his car with the engine running,thinking that he would be able to return with thegrocery in no time at all. While he was in the store,some curious children happen to notice that the car isunlocked and the engine is running. They release thehandbrake while playing in the car. The car crashesinto a person who was nearby, who sustains a serioushead injury and subsequently dies.
Ques Can Aayush be held liable for culpablehomicide?
  • a)
    No, Aayush cannot be held liable, as there isno guilty intent on his part, to kill the personstanding nearby.
  • b)
    No, Aayush has no committed any act tocause the person’s death. It is the childrenwho released the handbrake who must beheld liable.
  • c)
    Yes, Aayush can be held liable. He has beengrossly negligent by leaving the car with theengine running on a busy street.
  • d)
    None of the above.
Correct answer is option 'C'. Can you explain this answer?

Notes Wala answered
Aayush had left the car unattended with the engine running, despite the fact that the street was a busy one. He has been grossly negligent, and has not taken reasonable care and precaution by at least turning the engine off. Hence, he will be held liable. 
 

Principle - Violation of a legal right, with or without actual damage, gives rise to a tort. However, actual damage without violation of a legal right does not give rise to tortious liability.
Facts – Ayush has a shop that offers printing, Xerox, and book binding services. In the shop, he also sells notebooks, stationery, printing inks, paper and other such items. He has a big board outside his shop displaying all the things he deals in, and this board is instrumental in attracting customers, who would otherwise be unaware that he sold such things. His shop is situated in a narrow street with several other stores. Rajesh owns a book store next to him, and he installs a display shelf with all the titles he sells, outside his shop in order to woo customers. This shelf obscures the view to Ayush‘s board, and there is a decrease in the number of customers who buy from him. Ayush decides to sue Rajesh and claim damages.
a)Ayush can get damages, as he has suffered damage. The display shelf of Rajesh obscured the view of Ayush‘s board, and Rajesh had no right to do that.
b)Ayush can claim damages, but it is up to the court to grant them, as the loss suffered is not so substantial. The shelf did not entirely block the view to the board.
c)Ayush cannot claim damages in this case, as his legal rights have not been violated by Rajesh in setting up a display shelf.
d)None of the above.
Correct answer is option 'C'. Can you explain this answer?

Tejas Basu answered
Self explanatory. The setting up of a shelf is well within the rights of Rajesh, and does not infringe the legal rights of Ayush in any manner. 

‘A’ contracts to pay ‘B’ Rs. 1,000 if the B’s house is burnt. This is a 
  • a)
    Contingent contract
  • b)
    Wagering contract
  • c)
    Voidable contract
  • d)
    Special type of contract
Correct answer is option 'A'. Can you explain this answer?

Dia Mehta answered
The correct option is A.
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.

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