Contract Of Law Test-4


50 Questions MCQ Test Legal Reasoning for CLAT | Contract Of Law Test-4


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QUESTION: 1

Principle: If a party consent has been obtained by misrepresentation, the party to whom the misrepresentation has been made may reject the contract

Facts: J is in need of a house for immediate occupation and hence approaches S, the owner of a house. The house is in a visibly precarious condition and requires a few repairs in order to make it habitable. However, S tells J that the house is good for lodging and J signs the leases agreement with S. J then finds out the actual state of the house and seeks to reject the contract

Solution:

The correct option is B.
It is clear from the principle. There was misrepresentation of facts.

QUESTION: 2

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?

Solution:
QUESTION: 3

Principle: when one party to the contract is in such relation with the other party as to be able to dominate his/her will, and uses this superior position to obtain the other party consent to a contract, she is said to have exercise undue influence

Facts: A’s grandfather has 3 sons one of them being A’s father. A’s grandfather gifts his best properties to A. A’s two uncles sue their father i.e. A’s grandfather stating that his consent to the gift has been obtained through the exercise of undue influence.

Solution:
QUESTION: 4

Principle: Agreement by way of wager is void and no suit lies for recovering anything won by such wager

Facts: Mr. X and Mrs. Y enter into a contract with R who is an expert in betting on horse racing. Both pay a sum of Rs. 2000 to R to bet on a particular horse. R followed the instructions and he won a sum of Rs. 20 lakhs

Solution:
QUESTION: 5

Principle: For a contract an offer has to be made that is accepted and there is consensus ad idem

Facts: A goes to a shop and asks the shopkeeper to deliver rice at his residence in their previous dealings of about 12 years; he had always ordered the Basmati variety of rice. The shopkeeper stores five varieties of rice. He delivers krishnakali variety. A had wanted basmati. Shopkeeper wants to enforce the contract

Solution:

The correct answer must be C as A contract is based on the offer considerations under Section 26 of the act, one such consideration is previous dealings according to which previous dealings would form an implied understanding as to the subject, and it is clear that A has been A has been purchasing the same rice from the same shopkeeper for the past 12 years. which makes it an implied understanding which variety of rice he was talking about 

QUESTION: 6

Principle: Any person who has received any unjust benefit, he/she must return it to the right/owner

Facts: A and B had similar sounding names. The postman delivered a parcel meant for B at A’s residence, by mistake

Solution:
QUESTION: 7

When the consent to an agreement is obtained by undue influence, the agreement is at the option of

Solution:
QUESTION: 8

Mere silence is no fraud unless           

Solution:
QUESTION: 9

The mother owes Rs. 10000 to her daughter. By this debt has become barred by the limitation act. The mother signs a written promise to par Rs. 3000 on account of the debt. In this case which one of the following is correct

Solution:
QUESTION: 10

A minor estate is liable for the ………….supplied to him           

Solution:
QUESTION: 11

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.

Chaaru is justified in challenging the sale transaction because:

Solution:
QUESTION: 12

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.

Ajay can be allowed to recover the money only if he can show that:

Solution:
QUESTION: 13

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.

In order to defend the sale, Bandita will need to show that

Solution:
QUESTION: 14

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.

Which of the following is correct?

Solution:
QUESTION: 15

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?

Solution:

The correct option is C.

Direct from the principles.

QUESTION: 16

Principle: A contract obtained by misrepresentation is voidable at the option of the buyer.

Facts: Anand wants to sell his house. Anupama approaches him with an offer to buy the house and Anand shows her the house. The house is not in a very good condition and visibly requires repairs, without which it is uninhabitable. Anand does not tell anything regarding the required repairs to be livable. Anupama purchases the house for a huge consideration. Later on when she wants to move in her things into the house to start living she realizes the heavy repairs that the house requires urgently.

Solution:

The correct option is C.

Because while purchasing the house it was clear that the house is not in a very good condition and visibly requires repairs, without which it is uninhabitable.

QUESTION: 17

Legal Principle: Performance of a legal duty cannot be a consideration for a promise
Factual Situation: ‘A’s wallet is stolen by a thief. ‘A’ lodges a complaint in the police station. ‘A’ promises
to pay a sum of Rs. 500 to the person who is able to apprehend the thief and get back his wallet. The policeman’s servant ‘X’ apprehends the thief and gets back the wallet. ‘A’ refuses to pay ‘X’ the promised Rs. 500.

Q.

Choose the correct option:
I. The servant is entitled to the reward
II. The policeman would have been entitled to the reward had he been the person to apprehend the thief
III. The policeman would be entitled to the reward even if he had not apprehended the thief
IV. The servant would not be entitled to the reward

Solution:
QUESTION: 18

Legal Principle: Performance of a legal duty cannot be a consideration for a promise
Factual Situation: ‘A’s wallet is stolen by a thief. ‘A’ lodges a complaint in the police station. ‘A’ promises
to pay a sum of Rs. 500 to the person who is able to apprehend the thief and get back his wallet. The
policeman’s servant ‘X’ apprehends the thief and gets back the wallet. ‘A’ refuses to pay ‘X’ the promised
Rs.500.

Q

A voidable contract is one which is:

Solution:
QUESTION: 19

“A” promise to give money or money’s worth upon the determination or ascertainment of an uncertain event is called

Solution:
QUESTION: 20

“A” offers to sell his car to “B” for Rs. 50,000/-. “B” agrees to buy the car offering Rs. 45,000/-. The reply of “B” amounts to:

Solution:
QUESTION: 21

When goods are displayed in a show – window bearing price tags, it indicates:

Solution:
QUESTION: 22

PRINCIPLE: Time is the essence of a contract.

FACTS: Ghoshwal Woolens Ltd. is an apparel store in the small town of Bajipur. More than half the people in the town buy clothes from this shop, since it is well known for its quality and reliability. In the month of October, Mr. Ghoshwal, proprietor of Ghoshwal Woolens Ltd., entered into a contract with Mr. Basu, who agreed to supply a thousand pieces of woolen apparel, including sweaters, caps, mufflers and gloves, to the apparel store by November end. He was given half the amount as advance. However, Mr. Basu failed to supply the woolens within the given period and instead supplied it in the month of February. Mr. Ghoshwal accepted the stock, however since he couldn’t sell any of it, he asked Mr. Basu for reimbursement for the losses suffered by him.

Q.

Is Mr. Ghoshwal entitled to compensation by Mr. Basu?

Solution:

Straightway applying the principle that time is the essence of contract - Mr. Basu should have delivered the goods by November end as it was mentioned in the contract but, he was unable to do so and delivered it after winters in the month of February. From his actions Ghoshwal woolens Ltd. Suffered huge losses because they will not be able sell a good amount of woolens in the month of February so Mr. Basu have to compensate Mr. Ghoshwal.

QUESTION: 23

PRINCIPLE: Express or implied consent should be given for extension of time period, by the party likely to suffer loss by the extension.

Facts: Applying the above principle to the facts of the previous question, will Mr.

Q. Basu be liable to pay compensation to Mr. Ghoshal?

Solution:

He has accepted the stock therefore he will not be liable for the compensation.

QUESTION: 24

PRINCIPLE: A proposal made by one party and its acceptance by another, with the intention of establishing legal relations, is an agreement.

FACTS: Sahil goes to ‘The Great Indian Bargain’, an exhibition held in the Gymkhana grounds of Mumbai, where the producers sell their products at great discounts. Here, he comes across the window of a shop where a beautiful painting is placed along with a board which says ‘Paintings for Rs. 500’. Knowing the real value of the painting to be much more than Rs. 500, Sahil rushes inside and asks the seller to sell him the painting immediately. The seller refuses to sell him the painting. Sahil sues the seller, claiming that he had breached the contract.

Q. Which of the following is true?

Solution:

B is the correct option. Sahil can't sue the seller since the marked price was merely an invitation to offer which is not a contract. The invitation to treat is simply a solicitation and does not qualify to be an offer as the party making it does not wish to enter into a legally binding contract without further negotiations.

QUESTION: 25

Principle: When one of the parties to a contract is in such a relation with the other party as to be able to dominate his will, and uses this superior position to obtain the other party’s consent to a contract, he is said to be exercised undue influence. Such a contract is not valid.

FACTS: Vijay Jain has three sons- Amar, Bharat and Chaitanya. Only Amar and Bharat are married. Bharat has two sons and one daughter, and Amar has one son, Diwakar. On the occasion of Vijay Jain’s 75th birthday, he gifts some of his lands to his sons, and he gifts his largest piece of land, and all his farms and orchards to Diwakar. Bharat and Chaitanya sue Vijay Jain, claiming that his consent has been obtained by undue influence and hence, the transfer of property to Diwakar is void. Decide.

Solution:
QUESTION: 26

PRINCIPLE 1: An agent has the right to hold his master’s goods in lien until his previous debts are satisfied.

PRINCIPLE 2: A lien is a right to hold chattels of a debtor as security against the debtor.

PRINCIPLE 3: When a transaction is going on, the goods should be transferred before the payment can be made.

FACTS: Inamdar is a sales agent and he specializes in paintings and other works of art. He finds out who is selling paintings and other artifacts at the lowest prices and sources them to the buyer, thus enabling the buyer to make a good deal. In this deal, he makes a profit equivalent to 5% of the sales proceeds. Mr. Vallya is interested in an ancient painting of Raja Rammohun Roy and Inamdar is aware of the same. After a few months, he informs Vallya that the said painting is available, and can be procured for a price of 15,000 pounds. Mr. Vallya agrees to the conditions and hands over the money to Inamdar. For the deal, Inamdar’s fees would be 1,000 pounds. When he demands his payment from his client, Vallya, the latter refuses to pay until the painting is handed over to him.

Q. Can Inamdar hold the painting with him till the payment is made?

Solution:

The correct option is C.
From the given principles it is clear.

QUESTION: 27

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?

Solution:

B is the correct option. The contract between the parties is perfectly valid because all the essentials of a valid contract are there. Moreover, it is not as such given that she is a minor, so, it is to be assumed that she is major.

QUESTION: 28

PRINCIPLE: A partner is liable for the debts incurred by the other partners in the course of partnership.

FACTS: Aditya, Ravi and Suraj enter into a partnership to open a restaurant, Golden Harvest in Mumbai. Initially the restaurant does good business, but after a year, owing to staff shortage, the quality of food starts deteriorating. People start criticizing the restaurant and their business reduces significantly. There comes a day when they are forced to shut down their restaurant, and end their partnership. Following this, Ravi goes to Seth Karodimal to borrow some money on the pretext of re-opening his restaurant. However, he runs away with the money. Seth Karodimal sues Aditya and Suraj for the money. Decide.

Solution:

The act of borrowing money and then running away with the money did not occur in the course of partnership. Hence, Ravi is liable alone.

QUESTION: 29

PRINCIPLE: Any agreement in absolute restraint of the marriage of any person is void.

FACTS: Zoya and Benazir are both married to Azhar. He dies in October 2012, reducing them both to the status of co-widows. When Azhar’s will is read out, they discover a clause which states that if either of the co-widows remarry, they would be deemed to have forfeited their claim to any property or maintenance. However, Benazir gets married in February, 2013 and claims her share of maintenance and property, from Azhar’s lawyer, claiming that any clause in restraint of marriage is void. Hence, she should be entitled to maintenance. Decide.

Solution:

As now Benazir is married and  she is not entitled to claim anything from her previous husband or maintainance from his will.

QUESTION: 30

PRINCIPLE: The finder of a chattel does not acquire an absolute property right over it, but only has the title superior to everyone else, except the rightful owner.

FACTS: Varun was dining in a restaurant with his family, and when he was about to leave, he came across an envelope, full of money, lying on the floor of the restaurant. Being an honest man, he immediately handed over the envelope to the Manager of the restaurant, Tarun, so that he could return it to the rightful owner, if he came looking for it. When Varun visited the same restaurant after two months, he remembered the envelope and asked the Manager about it. Tarun said that no one had come looking for the envelope. On hearing this, Varun asked him to hand over the envelope to him, and Tarun refused. Decide, using the above principle strictly.

Solution:

varun is the finder of the envelope, no matter on whose property it was found. Tarun has absolutely no right over the money.

QUESTION: 31

Principle: A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.

FACTS: Astha, who is a very good painter, is also a patient in a mental asylum, who, at intervals, is of sound mind. During one of these intervals, she entered into a relationship with Lopamudra to paint a picture of her for a specified amount. She, however, asked Lopamudra to pay her the entire amount in advance. One month later, on the day of delivery of the painting, Astha refused to perform the contract saying that she suffers from insanity.

Q. Can Lopamudra force performance?

Solution:

Straightway applying the principle a sound mind person can contract or at the time of contract he is of sound mind. According to the facts Astha was of  sound mind at the time of contract. So, lopamudra force performance.

QUESTION: 32

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-

Solution:
QUESTION: 33

Principle: If the consideration or object of an agreement is forbidden by law, or is of such a nature that would defeat the provisions of any law, or is fraudulent, or is injurious to the person or property of another or, the Court regards it as immoral, or opposed to public policy, then the object or consideration shall be deemed unlawful. Every agreement of which the object or consideration is unlawful is void.

FACTS: Agni enters into a contract with Tanuj whereby Tanuj will supply Agni with 10 grams of cocaine for a specified amount. Is the contract void?

Solution:
QUESTION: 34

When the consent of a party to a contract has been obtained by Undue Influence, Fraud or Misrepresentation, the contract is-

Solution:
QUESTION: 35

Principles:

A. 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.

B. 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.

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

Q.

Why is Parineeti justified in challenging the sale transaction?

Solution:
QUESTION: 36

Principles:

A. 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.

B. 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.

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

Q.

Animesh can be allowed to recover the money only if he can show that-

Solution:
QUESTION: 37

Principles:

A. 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.

B. 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.

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

Q.

In order to defend the sale, Kumud will need to show that-

Solution:
QUESTION: 38

Principles:

A. 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.

B. 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.

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

Q.

Which of the following is correct?

Solution:

C is the correct option.Since the age of Kumud is 18 and she has her mother as her guardian, thus she has not attained the age of majority, i.e. 21 
Now since a minor (Kumud) entered into the contract with a major (Animesh), it wouldn't be enforceable 
And the fact is clearly stating that Animesh convinced or induced Kumud, i.e. obviously he was not deceived by misrepresentation of age of Kumud (not meeting the requirement of Principle C).
So finally since a minor entered the contract without any deception it is not enforceable and Animesh will not be able to recover.
 

QUESTION: 39

Principles:

A. 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.

B. 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.

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

Q.

Which of the following is correct?

Solution:
QUESTION: 40

Principle: A contract is said to be induced by undue influence where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.

FACTS: Sajjan Singh, advanced money to his step-son, Ghantilal while Ghantilal was a minor. Ghantilal, however, looks upon Sajjan Singh as his own father. When Ghantilal came of age, Sajjan Singh obtained, by misuse of parental influence, from Ghantilal, a bond for a greater amount than the sum due in respect of the advance. The contract clearly appears to be unconscionable.

Q. Upon whom will the burden of proof rest to prove the element of undue influence?

Solution:

The provisions of Contract Act provides that- In case of undue influence, it's the duty of the person who is suspected to have exercises undue influence over the plaintiff to prove that he did not do so, not the plaintiff. The burden of proof will rest on Sajjan Singh.

QUESTION: 41

Principle: When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that person to such an act or abstinence, he is said to have made a proposal.

Fact: Ramchandra telegraphed to Shyam Sunder, writing: “Will you sell me your Rolls Royce car? Telegram the lowest cash price.” Shyam Sunder also replied by telegram: “Lowest price for car is Rs. 20 lakh.” Ramanuj immediately sent his consent through telegram stating: “I agree to buy the car for Rs. 20 lakh asked by you.” Shyam Sunder refused to sell the car.

Solution:

Shyam Sundar was asked to send the lowest price of the car so he did that. but by simply sending the lowest price of his car he has not consented to sell his car. So, this shows that shyam sundar was not willing to enter into the contract So it is not a valid offer.

QUESTION: 42

Principle: Parties to a contract have absolute freedom to decide the terms of the contract provided there is approximate equality of bargaining power. If this is not the case, the contract is void.

Facts: In Delhi, there is a big cycle market with lots of cycle sellers. A goes to that market and to B’s store. B’s store is biggest in the market. He sees a cycle that he really likes. B says the price of the cycle is Rs. 100000/- A and B enter into a contract for purchase of the cycle. Is this contract legally enforceable?

Solution:
QUESTION: 43

Principle: In case of the death of either of the parties to the contract, wherever possible, the deceased representatives must give effect to the terms of the contract.

Facts: A and B enter into the contract for A to paint B’s picture. B dies.

Q. Are his representatives bound by the contract?

Solution:

A is the correct option. As the person who have to paint the picture is alive, the representatives can have their picture of B  painted, and must pay on behalf of B TO A.

QUESTION: 44

Principle: If a party to the contract offers to fulfill his part of the contract and the other party declines, the first party is freed from his obligations.

Facts: A contracts with B to deliver 100 bales of cotton to him. The scheduled delivery date is 19.10.2014. A rings up on 1.10.2014 and tells him he is bringing the cotton to his house for delivery. B tells him he can’t accept the delivery because he doesn’t have the space to store it.

Q. Is A free from his contractual obligations?

Solution:
QUESTION: 45

Principle: The communication of a proposal is complete when it becomes to the knowledge of the person to whom it is made.

Facts: A proposes by letter to sell a house to B at a certain price. The communication of proposal is complete when

Solution:

B is the correct option. A has made the proposal to B so the proposal will be completed when it comes to knowledge of B and that would be done when B receives the letter.

QUESTION: 46

Principle: "Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agents, with intent to deceive another party thereto his agent, or to induce him to enter into the contract;
(1) the suggestion as a fact, of that which is not true, by one who does not believe it to be true;
(2) the active concealment of a fact by one having knowledge or belief of the fact;
(3) a promise made without any intention of performing it;
(4) any other act fitted to deceive;
(5) any such act or omission as the law specially declares to be fraudulent. 

Facts: A sells by auction to B, a horse which A knows to be unsound. A says nothing to B about the horse unsoundness.

Solution:
QUESTION: 47

Principle: Agreement void where both parties are under mistake as to matter of fact 

Facts: A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that before the day of the bargain the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts.

Solution:
QUESTION: 48

Principle:  The consideration or object of an agreement is lawful, unless -It is forbidden by law; or is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent; of involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

Facts: A promises to obtain for B an employment in the public service and B promises to pay Rs. 1000 to A.

Solution:
QUESTION: 49

Principle: The consideration or object of an agreement is lawful, unless -It is forbidden by law; or is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent; of involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

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.

Solution:
QUESTION: 50

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 Rs. 1000.

Solution:

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