CLAT

PRINCIPLES: 1. A master shall be liable for the fraudulent acts of his servants committed in the course of employment.
2. Whether an act is committed in the course of employment has to be judged in the context of the case.
3. Both master and third parties must exercise reasonable care in this regard.

FACTS: Rama Bhai was an uneducated widow and she opened an S.B. account with Syndicate Bank with the help of her nephew by name Keshav who was at that time working as a clerk in the Bank. Keshav used to deposit the money of Rama Bhai from time to time and get the entries done in the passbook. After a year or so, Keshav was dismissed from the service by the Bank. Being unaware of this fact, Rama Bhai continued to hand over her savings to him and Keshav misappropriated them. Rama Bhai realised this only when Keshav disappeared from the scene one day, and she sought compensation from the Bank.

POSSIBLE DECISIONS:

a. Syndicate Bank shall be liable to compensate Rama Bhai.
b. Syndicate Bank shall not be liable to compensate Rama Bhai.
c. Rama Bhai cannot blame others for her negligence.

POSSIBLE REASONS:

i. Keshav was not an employee of the Bank when the fraud was committed.
ii. The Bank was not aware of the special arrangement between Rama Bhai and Keshav
iii. It is the Bank’s duty to take care of vulnerable customers.
iv. Rama Bhai should have checked about Keshav in her own interest.

Your decision with the reason:

So much of the literature of the western world, including a large part of its greatest literature was either written for actual speaking or in a mode of speech. That we are likely to deform it if we apply our comparatively recent norm of writing for silent reading. It is only that so much of this work is drama or oratory (the latter including the modern forms of sermons, lectures and addresses which as late as the nineteenth century play a most important part). It is also that through classical and medieval times, and in many cases beyond these, most reading was either aloud or silently articulated as if speaking : a habit we now recognize mainly in the slang. Most classical histories were indeed quite close to oratory and public speech, rather than silent reading of an artifact, was the central condition of linguistic composition.

Harm suffered voluntarily does not constitute a legal injury and is not actionable. This principle is embodied in the maxim volenti non fit injuria. A person cannot complain of harm to the chances of which he has exposed himself with his free consent and free will. The maxim volenti non fit injuria is founded on good sense and justice. A person who has invited or assented to an act being done towards him cannot, when he suffers from it, complain of it as a wrong. The maxim presupposes a tortious act by the defendant. The maxim applies, in the first place, to intentional acts which would otherwise be tortious. There are certain limitations to the application of this maxim:
(i) It is no answer to a claim made by a workman against his employer for injury caused through a breach by the employer of a duty imposed upon him by a statute. But where the negligence or breach of statutory duty is on the part of an employee of the plaintiff who knowingly accepts the risk flowing from such breach and the employer-defendant is not guilty of negligence or breach of statutory duty, the defence of volenti non fit injuria is available to the def endant.
(ii) Under an exigency caused by the defendant’s wrongful misconduct, consciously and deliberately faced a risk, even of death, whether the person endangered is one to whom he owes a duty of protection, as a member of his family, or is a mere stranger to whom he owes no such special duty. The rescuer will not be deprived of his remedy merely because the risk which he runs is not the same as that run by the person whom he rescues. But where there is no need to take any risk, the person suffering harm in doing so cannot recover.
(iii) To cover a case of negligence the defence on the basis of the maxim must be based on implied agreement whether amounting to contract or not. The defence is available only when the plaintiff freely and voluntarily, with full knowledge of the nature and extent of the risk impliedly agreed to incur it and to waive any claim for injury. But when the plaintiff has no choice or when the notice is given at a stage when it is beyond the ability of the plaintiff to make a choice there can be no implied agreement and the defence on the basis of the maxim must fail.
(iv) The maxim will also not apply when the act relied upon is done because of the psychological condition which the defendant’s breach of duty had induced. 

Q. Which of the following is not an element to claim the defence of volenti non fit Injuria?

The snow was falling, and the Cat's fur was stiffly pointed with it, but he was imperturbable. He sat crouched, ready for the death-spring, as he had sat for hours. It was night but that made no difference, all times were as one to the Cat when he was in wait for prey. Then, too, he was under no constraint of human will, for he was living alone that winter. Nowhere in the world was any voice calling him; on no hearth was there a waiting dish. He was quite free except for his own desires, which tyrannized over him when unsatisfied as now. The Cat was very hungry. almost famished, in fact. For days the weather had been very bitter...and the Cat's long hunt had availed him nothing. But he waited with the inconceivable patience and persistency of his race; besides, he was certain. The Cat was a creature of absolute convictions, and his faith in his deductions never wavered. The rabbit had gone in there between those low-hung pine boughs. The Cat had seen her enter...so he sat down and waited, and he waited still in the white night, listening angrily to the north wind starting in the upper heights of the mountains with distant screams, then swelling into an awful crescendo of rage, and swooping down with furious white wings of snow like a flock of fierce eagles into the valleys and ravines. The Cat was on the side of a mountain, on a wooded terrace. Above him, a few feet away towered the rock ascent as steep as the wall of a cathedral. He had often looked with wonder at the rock, and miauled bitterly and resentfully as man does in the face of a forbidding Providence. At his left was the sheer precipice. Behind him...was the frozen perpendicular wall of a mountain stream. Before him was the way to his home. When the rabbit came out she was trapped; her little cloven feet could not scale such unbroken steeps. So the Cat waited. The tangle of trees and bushes clinging to the mountain-side with a stern clutch of roots, the prostrate trunks and branches, the vines embracing everything with strong knots and coils of growth, had a curious effect, as of things which had whirled for ages in a current of raging water, only it was not water, but wind, which had disposed everything in circling lines of yielding to its fiercest points of onset. It was as if ice needles pricked his skin through his beautiful thick fur, but he never faltered and never once cried. He had nothing to gain from crying, and everything to lose; the rabbit would hear him cry and know he was waiting.

Two renowned international Sof tware companies , namely Pollaris and Contigent, started their business in the year 2007 and both the companies were in competition with each other in profit making. Pollaris earned 30 percent profit in the year 2007 and 2008, and further increased it to 40 percent in 2009. However, its prof it percentage decreased to 20 percent in the year 2010. On the other hand, Contigent opened with 40 percent prof it in 2007 , but slowly decreased to 35 percent in 2008 and 30 percent in 2009. Interestingly, both the companies increased their profit percentage in the later year considerably. Pollaris increased its profit percentage to 35 percent in 2011 and 50 percent in 201 2; simultaneously, Contigent increased its profit percentage to 45 percent in 2010, 50 percent in 2011 and reached 60 percent in the year 2012. As there is a need to understand the income and expenditure for the better performance of both companies in the future, answer the following questions.

Q. What is the difference between the company with highest annual average profit percentage and that of the company with lowest annual average profit percentage?

Principle: Whoever unlawfully or negligently does any act which is, and which he knows or has reason to believe to be,likely to spread the infection of any disease dangerous to life, shall be guilty of a negligent act likely to spread infection of disease dangerous to life.

Facts: 'K', a person, knowing that he is suffering from Cholera, travels by a train without informing the railway officers of his condition.

Q. Which of the following derivations is CORRECT? 

National Youth Day is celebrated on (1) in the memory of Swami Vivekanand and it is celebrated since 1984.The main objective is to promote rational thinking among the youth, believed to be the future of the country. He was a true luminary, credited with enlightening the western world about Hinduism. He was an ardent disciple of (2) and a major force in the revival of Hinduism in India. He pushed for national integration in colonial India, and his famous speech remains as the one that he gave in Chicago in (3). Born in Kolkata, Swami Vivekananda was known as Narendra Nath Datta in his pre-monastic life. He is known to have introduced the Hindu philosophies of Yoga and Vedanta to the West. (4) had called Vivekananda the “maker of modern India.”He took the name ‘Vivekananda’ after Maharaja Ajit Singh of the Khetri State requested him to do so, changing from ‘Sachidananda’ that he used before. He formed the Ramakrishna Mission “to set in motion a machinery which will bring noblest ideas to the doorstep of even the poorest and the meanest.” In 1899, he established the Belur Math, which became his permanent abode. He preached ‘neo-Vedanta’, an interpretation of Hinduism through a Western lens, and believed in combining spirituality with material progress.

Q. National Youth Day is celebrated every year in the memory of Swami Vivekanand on which date?

The snow was falling, and the Cat's fur was stiffly pointed with it, but he was imperturbable. He sat crouched, ready for the death-spring, as he had sat for hours. It was night but that made no difference, all times were as one to the Cat when he was in wait for prey. Then, too, he was under no constraint of human will, for he was living alone that winter. Nowhere in the world was any voice calling him; on no hearth was there a waiting dish. He was quite free except for his own desires, which tyrannized over him when unsatisfied as now. The Cat was very hungry. almost famished, in fact. For days the weather had been very bitter...and the Cat's long hunt had availed him nothing. But he waited with the inconceivable patience and persistency of his race; besides, he was certain. The Cat was a creature of absolute convictions, and his faith in his deductions never wavered. The rabbit had gone in there between those low-hung pine boughs. The Cat had seen her enter...so he sat down and waited, and he waited still in the white night, listening angrily to the north wind starting in the upper heights of the mountains with distant screams, then swelling into an awful crescendo of rage, and swooping down with furious white wings of snow like a flock of fierce eagles into the valleys and ravines. The Cat was on the side of a mountain, on a wooded terrace. Above him, a few feet away towered the rock ascent as steep as the wall of a cathedral. He had often looked with wonder at the rock, and miauled bitterly and resentfully as man does in the face of a forbidding Providence. At his left was the sheer precipice. Behind him...was the frozen perpendicular wall of a mountain stream. Before him was the way to his home. When the rabbit came out she was trapped; her little cloven feet could not scale such unbroken steeps. So the Cat waited. The tangle of trees and bushes clinging to the mountain-side with a stern clutch of roots, the prostrate trunks and branches, the vines embracing everything with strong knots and coils of growth, had a curious effect, as of things which had whirled for ages in a current of raging water, only it was not water, but wind, which had disposed everything in circling lines of yielding to its fiercest points of onset. It was as if ice needles pricked his skin through his beautiful thick fur, but he never faltered and never once cried. He had nothing to gain from crying, and everything to lose; the rabbit would hear him cry and know he was waiting.

The COVID-19 pandemic has taken the entire world hostage in less than four months, and the global economy has been hit the hardest with governments across the globe implementing stringent policies including lockdown to control the coronavirus outbreak. The pandemic today presents unprecedented challenges and impediments to businesses in conducting their normal operations. The lockdown across the world has caused delays in the performance of contracts and transactions. Now, the question that arises is whether the current situation can enable parties to a contract to alter their obligations with non-compliance of terms neither being regarded as a "default committed by any party" nor a "breach of contract"? There are certain well-accepted practices for dealing with such extraordinary situations in commercial transactions by the inclusion of force majeure & material adverse effect (MAE) clauses. Determination of the types of circumstances so covered by the force majeure clause contained in a contract is essential. Provisions of force majeure often cover natural disasters like hurricanes, floods, and earthquakes as "acts of God." Other covered events may include war, terrorism, civil disorder, fire, disease medical epidemics or by reasons of applicable laws or regulations. Broadly, the Courts have interpreted the term "Force Majeure" as an event that can neither be anticipated nor controlled by either of the contracting parties.  A force majeure clause applies in the context of ongoing contractual arrangements, whereas, an MAE or material adverse change (MAC) clause applies to the allocation of risk in transactions before their closure or completion. Pandemic and related consequences such as government action is a type of event covered by a force majeure clause, however, its impact on the affected party's ability to perform its contractual obligations may vary depending upon contractual terms. It is common for force majeure clauses to specify the impact that the event or circumstances in question must have, in order for the clause to be triggered. References may be made, for example, to the event or circumstances having "prevented", "hindered" or "delayed" performance. These terms require different levels of impact on performance before a party can claim recourse to these clauses. In other words, the force majeure and MAC clauses act as an exception to what would otherwise be treated as a breach of contract. Certain contracts may state that, if a force majeure clause is applied, the contract may automatically be terminated. On the other hand, some contracts may even state that the duty to fulfil the contractual obligation may be suspended for a certain period of time and if the force majeure event is not curbed or treated even after such time, then eventually the contract may be terminated. Though there cannot be a one-size-fits-all solution to this question, and it depends upon how the force majeure clause is worded in a specific contract; and in the absence of the same, applicable laws related to the same will be required to be taken into consideration.

In a Law School, 100 students are divided into four batches - J, K, L and M. Four subjects -Accounting, Business Law, Criminal Law, and Drafting - are taught during four days of a week, starting from Monday through Thursday. There is a faculty member for each subject and a faculty can take only one session in a day. On any given day, sessions for all the four batches should run in parallel.

The following facts are known:

An effective way to handle this logical game is to play it like Sudoku.

Let's code the subjects using numbers

Accounting - 1

Business Law - 2

Criminal Law - 3

Drafting - 4

Base on the fact given following can be captured.

Since each faculty takes a different subject and faculty can only one session per day, there cannot be any repetition of subjects (or the numbers)

Which subject is taken on Monday for batch J?

In 1985, Mikhail Gorbachev, launched an ill-fated anti-alcohol campaign in the then Soviet Union. The anti-alcohol campaign had some beneficial public health consequences: Crime fell and life expectancy rose. But the campaign was a political and economic disaster. Gorbachev forgot that the addict ion of the state to alcohol revenue was even more incurable than the addiction of some citizens to alcohol itself. The budgetary losses created an economic crisis. Historians suspect that more than the loss of the Soviet Empire, it was this campaign that delegitimised Gorbachev. An old Soviet joke went like this: A disaffected and angry citizen, fed up of standing in lines for vodka, decided to go assassinate Gorbachev. He soon came back and ruefully reported that the lines to assassinate Gorbachev were even longer than the lines for Vodka. As the lockdown eased in India, and social distancing went for a toss at alcohol outlets, we were reminded of how difficult an issue alcohol is to rationally discuss in India. The stampede was caused by the ineptness with which the opening was handled in most cities. Alcohol has also migrated from being a question of personal freedom and choice to an issue in broader cultural wars, an odd site on which we measure progressivism in India. It is also a window on how liberalism has been misunderstood. Liberals should, rightly, be suspicious of prohibition on moral and practical grounds. Government grossly exceeds its legitimate power when it interferes with the rights of individuals to lead their lives as they please, and fashion their selves after their own ideals, interests and preferences. And certainly, moralism or puritanism on alcohol cannot be the basis of state policy. That moralism has no basis, and it violates the dignity and freedom of individuals.

In a very short time after I went to live at Baltimore, my old master’s youngest son Richard died; and in about three years and six months after his death, my old master, Captain Anthony, died, leaving only his son, Andrew, and daughter, Lucretia, to share his estate. He died while on a visit to see his daughter at Hillsborough. Cut off thus unexpectedly, he left no will as to the disposal of his property. It was therefore necessary to have a valuation of the property, that it might be equally divided between Mrs. Lucretia and Master Andrew. I was immediately sent for, to be valued with the other property. Here again my feelings rose up in detestation of slavery. I had now a new conception of my degraded condition. Prior to this, I had become, if not insensible to my lot, at least partly so. I left Baltimore with a young heart overborne with sadness, and a soul full of apprehension. I took passage with Captain Rowe, in the schooner Wild Cat, and, after a sail of about twenty-four hours, I found myself near the place of my birth. I had now been absent from it almost, if not quite, five years. I, however, remembered the place very well. I was only about five years old when I left it, to go and live with my old master on Colonel Lloyd’s plantation; so that I was now between ten and eleven years old.

We were all ranked together at the valuation. Men and women, old and young, married and single, were ranked with horses, sheep, and swine. There were horses and men, cattle and women, pigs and children, all holding the same rank in the scale of being, and were all subjected to the same narrow examination. Silvery-headed age and sprightly youth, maids and matrons, had to undergo the same indelicate inspection. At this moment, I saw more clearly than ever the brutalizing effects of slavery upon both slave and slaveholder.

After the valuation, then came the division. I have no language to express the high excitement and deep anxiety which were felt among us poor slaves during this time. Our fate for life was now to be decided. We had no more voice in that decision than the brutes among whom we were ranked. A single word from the white men was enough—against all our wishes, prayers, and entreaties—to sunder forever the dearest friends, dearest kindred, and strongest ties known to human beings. In addition to the pain of separation, there was the horrid dread of falling into the hands of Master Andrew. He was known to us all as being a most cruel wretch,—a common drunkard, who had, by his reckless mismanagement and profligate dissipation, already wasted a large portion of his father's property. We all felt that we might as well be sold at once to the Georgia traders, as to pass into his hands; for we knew that that would be our inevitable condition,—a condition held by us all in utmost horror and dread.

(Extract from "Narrative of the Life of Frederick Douglass, An American Slave" by Young Federick Douglass)

Q. Why did Douglass go to Baltimore?

In the middle of a pandemic, the geopolitics of the world‘s most troubled region took a historic turn this week, when the UAE and Israel, under the benevolent gaze of US President Donald Trump, signed an agreement to “normalise” relations. The deal opens up new opportunities for India to play a much larger role in the regional security and stability in the Gulf, where New Delhi enjoys special relations with both Abu Dhabi and Jerusalem. The barebones of the deal envisages establishing regular diplomatic relations between the UAE, the rising influential power in the Gulf, and Israel, the “Incredible Hulk” of the region, but a country officially not on speaking terms with most of its Arab neighbours. In his first tweet, Crown Prince Mohammed bin Zayed said: ‘During a call with President Trump and Prime Minister Netanyahu, an agreement was reached to stop further Israeli annexation of Palestinian territories. The UAE and Israel also agreed to cooperation and setting a roadmap towards establishing a bilateral relationship.” In return, Israel agreed to “suspend” its annexation plans for West Bank that would have been deeply destabilising. Benjamin Netanyahu gets a diplomatic victory, which may be short-lived, given the nature of Israeli politics. But Israel gets a diplomatic and economic opening with the big power in the Gulf that could open other doors, give its security interests legitimacy and, perhaps, open the door to Middle East peace.
Many of the other Arab powers, such as Oman, Bahrain, Egypt and Jordan, apart from the big global powers, and India, have welcomed the deal. Iran has slammed it, as have Turkey and Syria. Saudi Arabia has been very quiet. Given the close ties between Mohammed bin Zayed and Mohammed bin Salman, it is unthinkable that KSA was not consulted, particularly when the US is the third pole in this agreement. The deal gives UAE pole position as the premier Gulf Arab power, with diplomatic leverage with Israel and the US. “This deal is about positioning in Washington, DC,” said James Dorsey, Gulf and Middle East expert.

This section consists of ten problems (with 45 questions) in total. Each problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the questions.

In answering the following questions, you should not rely on any rule(s) except the rule(s) that are supplied for every problem. Further, you should not assume any fact other than those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess.

A. The fundamental right to freedom of association includes the right to form an association as well as not join an association.

B. The fundamental right to freedom of association also includes the freedom to decide with whom to

associate.

C. The fundamental right to freedom of association does not extend to the right to realize the objectives of forming the association.

D. Fundamental rights are applicable only to laws made by or administrative actions of the State and do not apply to actions of private persons.

E. Any law in contravention of fundamental rights is unconstitutional and therefore cannot bind any

person.

Gajodhar Pharmaceuticals, a private company, offered an employment contract of two years to Syed Monirul Alam. One of the clauses in the employment contract provided that Syed Monirul Alam must join Gajodhar Mazdoor Singh (GMS), one of the trade unions active in Gajodhar Pharmaceuticals.

Q. If Parliament enacts a legislation prohibiting strikes by trade unions of employees engaged in pharmaceutical industry, then:

Two renowned international Sof tware companies , namely Pollaris and Contigent, started their business in the year 2007 and both the companies were in competition with each other in profit making. Pollaris earned 30 percent profit in the year 2007 and 2008, and further increased it to 40 percent in 2009. However, its prof it percentage decreased to 20 percent in the year 2010. On the other hand, Contigent opened with 40 percent prof it in 2007 , but slowly decreased to 35 percent in 2008 and 30 percent in 2009. Interestingly, both the companies increased their profit percentage in the later year considerably. Pollaris increased its profit percentage to 35 percent in 2011 and 50 percent in 201 2; simultaneously, Contigent increased its profit percentage to 45 percent in 2010, 50 percent in 2011 and reached 60 percent in the year 2012. As there is a need to understand the income and expenditure for the better performance of both companies in the future, answer the following questions.

Q. What is the increase in prof it of Contigent Company in percentage from year 2011 to 2012?