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Direction: Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law.
  • An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards
    Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.
    MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.
    • a)
      The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.
    • b)
      Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.
    • c)
      There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.
    • d)
      MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.
    Correct answer is option 'B'. Can you explain this answer?
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    Direction: Apply the legal principles to the facts given below and se...
    As per principle no. 1, the statement of Hassan amounts to consideration for extra payment, as he was conferring the benefit to MXM company, which was prevention against the loss of liquidated damages, which they have decided with Star Heights Housing Association, so it has value in the eyes of law. It is pertinent to note that in case the contract had not been completed on time, MXM Co. would have been liable to pay the liquidated damages to Star Heights Hotel Association. Though Hasan initially refused to carry out the work due to the low amount being paid to him, he agreed subsequently on the condition that he will be paid extra for resuming the work. This actually enabled MXM Co. to avoid the penalty clause and formed the consideration for the subsequent contract in the form of a benefit accrued to MXM Co. Thus, MXM Co. was liable to make the extra payments promised.
    Hence, the correct option is (B).
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    Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer?
    Question Description
    Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer?.
    Solutions for Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
    Here you can find the meaning of Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.a)The agreement to pay extra was unenforceable as Hasan had provided no consideration as he was already under an existing contractual duty to complete the work.b)Consideration was provided by Hasan in the form of conferring a benefit on the MXM Co. by helping them to avoid the penalty clause. Therefore, MXM Co. was liable to make the extra payments promised.c)There was no consideration provided by Hasan as to avoid the penalty clause was the main object of the contract. Therefore, MXM Co. was not liable to make the extra payments promised.d)MXM Co. is liable to pay compensation to Hasan as they have committed a breach of contract by employing another carpenter.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.
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