Legal Principles- 3 Previous Year Questions with Solutions

Q.226. Principle: Damages are the money recompense, as far as money can do for the violation of a right.
Facts: A, an Indian citizen, having a right to vote, was not allowed to cast Iris vote on the polling booth, by the returning officer. Name of A was mentioned in the voters' list. A has also reported at the polling booth in time. However, the candidate in whose favour A would have cast his vote won the election. A filed a suit claiming damages.    (CLAT, 2013)
(a) A will be entitled to damages
(b) A will not be entitled to damages
(c) A will be entitled to only nominal damages
(d) A will be entitled to exemplary damages.

Correct Answer is Option (a)

Q.227. PRINCIPLE: When a person voluntarily agrees to suffer some harm, he is not allowed to complain for that.
FACTS: 'A' was one of the spectators at a formula one car race, being held at Gurgaon, on a track owned by one 'M' company. During the race, there was a collision between two racing cars, one of which was thrown away amidst spectators, thereby causing an injury to 'A'. ‘A! claims damages for the injuries caused to him.    (CLAT, 2013)
(a) M company will be liable for damages because the injury was caused during the race organized by it
(b) M company will not be liable for damages because A had come to see the race on his own Will
(c) M company will not be liable for damages because the collision between the cars was beyond its control
(d) M company will be liable because it has earned huge revenue by way of sale of tickets for the event.

Correct Answer is Option (b)

Q.228. Legal Principle: If a person brings anything dangerous on his land which may prove harmful if escapes, then that person must keep it at his peril. If a man fails to do so then he must be made responsible to all natural consequences of its escape.
Facts: A grows poisonous trees on his own land and lets the projection of the branches of his trees on the B’s land, B's cattle die because of nibbling tire poisonous leaves.    (NLU, Delhi, 2013)
Decision:
(a) A is not liable to B because B must have taken due care to control his cattle
(b) A is not liable to B because trees are still on A'$ land and there is no escape of dangerous thing
(c) A is liable to B because projection of branches with poisonous leaves amounts to escape
(d) A is not liable to B because he is not acting negligently.

Correct Answer is Option (c)

Q.229. Legal Principle: Master/Principal is vicariously liable for the tort committed by a servant/agent, in the performance of his duties as a servant/agent.
Facts: A gave some cash and cheques to his friend B, who was an employee of the State Bank of India, to deposit the same in that Bank in the account of A. B misappropriated the amount. If A sues the Bank for damages, then the Bank is    (NLU, Delhi, 2013)
Decision:
(a) Liable to pay because it was the employer of B
(b) Liable to pay because the employee did it during business hours and while working as an employee
(c) Not liable because he turned out to be the friend of the plaintiff's husband
(d) Not liable because while committing the fraud, he was not acting as the agent or employee of the Bank.

Correct Answer is Option (d)

Q.230. Legal Principle: Contract is a written or spoken agreement, with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. Such an agreement is intended to be enforceable by law. A unilateral contract is one in which there is a promise to pay or give other consideration in return for actual performance.
Factual Situation: A Toilet Soap Manufacturing Company in India in order to promote the sale of their product, published an advertisement in all the Newspapers on January 1, 2017 that the Company has kept a model ignition key of an Audi A3 Car. The advertisement also stated that whoever gets the said key before December 31, 2017 from a soap bar will be gifted with the Audi A3 Car. Mr. Martin, a foreigner who came to India as a Tourist who was staying in a Hotel found a Key similar to same Car Ignition Key. Mr. Martin brought this matter to the notice of the Hotel Manager. The Manager informed Mr. Martin about the Company's advertisement on January 1, 2017. Mr. Martin wants to claim die Car. Will he succeed?    (CLAT, 2017)
(a) No. The Soap Company has not entered into a contract with Mr. Martin as he was not in India on January 1, 2017 when the advertisement was published.
(b) Mr. Martin obtained the Key before the stipulated date from the Soap Bar. So he is covered by the offer of the Soap Company and can claim the car.
(c) No. Actual intention of the Company was to promote the sale of the Soap.
(d) The Hotel Manager who could legally claim the Car as he was the one actually purchased the soap for the use in the Hotel.

Correct Answer is Option (b)

Q.231. Legal Principle: Every agreement, of which the object or consideration is opposed to public policy, is void. An agreement which has the tendency to injure public interest or public welfare is one against public policy. What constitutes an injury to public interest or public welfare would depend upon the times and the circumstances.
Factual Situation: 'A' promises to obtain for 'B' an employment in the public service, and B’ promises to pay rupees 5,00,000 to 'A'.    (CLAT, 2017)
(a) The agreement is valid, as it is a contract between two parties with their free consent
(b) The agreement is void because rupees 5,00,000 is excessive
(c) The agreement is void, as the object and consideration for it is opposed to public policy
(d) The agreement is valid, as it is with consideration for public service.

Correct Answer is Option (a)

Q.232. Legal Principle: A contract would be invalid and unlawful, if the contract is for an immoral or illegal purpose.
Factual Situation: P, was a young and helpless widow, living on the pavement. R, a neighbour gave her a house, registered in her name, on the condition that she should allow R to keep his smuggled goods and drugs in her house. After the registration was done, according to the condition in the contract, R's agents went to keep some packets in her house, she refused. R told her the condition under which the house was given to her. She still refused. Is P justified in her action?    (CLAT, 2017)
(a) As R was making the contract for illegal activities, P's stand is valid in law.
(b) R can take back the house by cancelling the transfer deed.
(c) P is right as she did not like smuggled goods to be kept in her house.
(d) P is not justified as she did not have the right to deny R's request.

Correct Answer is Option (a)

Q.233. Legal Principle: Acceptance of a proposal must be absolute and unqualified.
Factual Situation: 'A' made a proposal to sell his motorcycle to 'B' for rupees 25,(MX). 'B' agreed to buy it for rupees 24,000. 'A' sold his motorcycle to 'C for 26,000 the next day. 'B' sues 'A' for damages.    (CLAT, 2017)
(a) 'B' will get the difference of rupees 1,000 only
(b) 'B' will not get any damages from A ’
(c) 'B' will get damages from 'A'
(d) 'B' can proceed against 'C'.

Correct Answer is Option (b)

Q.234. Legal Principle: It is a case of fraud where a party to a contract knows or believes a fact to be true, but conceals it actively from the other party with a view to induce that person to enter into the contract.
Factual Situation: While taking a life insurance policy, in reply to questions by the insurance company during the inquiry into his proposal, Zameer deliberately concealed the fact of his medical treatment for a serious ailment, which he had undergone only a few weeks ago.    (CLAT, 2017)
(a) The concealment of fact by Zameer amounted to fraud
(b) The act of Zameer amounted to innocent misrepresentation
(c) The act of Zameer did not amount to any misrepresentation
(d) The act of Zameer did not amount to fraud, as disclosing the fact would have resulted in exposure of his privacy.

Correct Answer is Option (a)

Q.235. Legal Principle: Where one of the parties to a contract was in a position to dominate the decision of the other party, the contract is enforceable only at the option of the party who was in a position to dominate the decision of the other party.
Factual Situation: A doctor asked his patient to make a payment of rupees Ten Lakh for treatment of his fever. The patient paid an amount of rupees Five Lakh and promised to pay the remaining amount after the treatment. After treatment the patient recovered from fever. The doctor demanded the remaining amount from the patient. The patient refused to pay.    (CLAT, 2017)
(a) The contract is enforceable against the patient by the doctor.
(b) The contract is enforceable against the doctor.
(c) The contract is not enforceable without the consent of the patient.
(d) The contract is not enforceable as doctor was in dominating position.

Correct Answer is Option (a)

Q.236. Legal Principle: If a party to a contract agrees to it under undue influence of any other party then the party under the undue influence may refuse to perform in accordance with the agreement.
Factual Situation: A, a rich youngster became a member of a religious group and soon he was appointed by P the head of the group as his personal secretary. As per the rules of the group, all officials and staff of the group were supposed to stay in the group's official premises itself. Some days later, A was asked by P to execute a Gift deed in favour of P, in which it was mentioned that all immovable properties in his name are being gifted to P. A was unwilling to execute the deed, but he was forcefully restrained by P and his body guards in P's office and made A sign the gift deed. Soon after this A left the group and refused to hand over the property as agreed to in the gift deed. Is A's action valid?    (CLAT, 2017)
(a) As Gift is also a contract, the consent of A was not obtained by P while executing the deed
(b) It is illegal for religious groups acquire property from its members
(c) A executed the deed, under compulsion and undue influence, and was right in withdrawing from the contract
(d) As the gift deed was executed by A, he cannot refuse.

Correct Answer is Option (c)

Q.237. Legal Principle: An offer made by one party when accepted by another makes it a contract.
Transactions:
1. P offered to sell his house for '20 lakhs to R; R told P that he was interested to buy a house for 15 lakhs only.
2. C was looking for a house for not more than 25 lakhs; P informed C that his house was available for 20 lakhs.
3. K wanted to buy some old furniture; L told K that he would sell his furniture for '10,000.
4. R advertised to sell his old car for a price of 'Three lakhs; S found the advertisement and offered to buy it for' 2 lakhs 50 thousand; R agrees to sell it to S.
Which among the above is actually a contract?    (CLAT, 2017)
(a) Situation 3 only is a contract
(b) Situations 1 and 2 are contracts
(c) Situation 4 only is a contract
(d) Situations 2 and 4 are contracts.

Correct Answer is Option (c)

Q.238. Legal Principle: An agreement, the terms of which are not certain, or capable of being made certain, is void.
Factual Situation: Sunder agreed to take Bhola's penthouse on rent for three years at the rate of rupees 12,00,000 per annum provided the house was put to thorough repairs and the living rooms were decorated according to contemporary style.    (CLAT, 2017)
(a) it is voidable contract at the option of Bhola.
(b) There is a valid contract because there is an offer from Sunder and acceptance from Bhola.
(c) There is a valid contract because all the terms of contract are certain and not vague as the rent is fixed by both of them and the term 'present style' only can be interpreted to mean the latest style.
(d) There is no valid contract because it has vague and uncertain terms, as the term 'present style' may mean one thing to Sunder and another to Bhola.

Correct Answer is Option (d)

Q.239. Legal Principle: When a person who has made a promise to another person to do something does not fulfill his promise, the other person becomes entitled to receive, from the person who did not fulfill his promise, compensation in the form of money.
Factual Situation: 'X' made a promise to 'V" to repair his car engine. 'Y' made the payment for repair. After the repair, 'V" went for a drive in the same car. While driving the car, 'Y' met with an accident due to bursting of a tyre.    (CLAT, 2017)
(a) 'X ' will not compensation be entitled to receive
(b) 'Y' will not be entitled to receive compensation from 'X'
(c) 'X' will be entitled to receive compensation from 'Y' in the form of money
(d) 'Y' will be entitled to receive compensation from 'X' in the form of money.

Correct Answer is Option (b)

Q.240. Legal Principle: According to law, a person is deemed to have attained the age of majority when he completes the age of 18 years, except in the cast: of a person where a guardian of a minor's person or property has been appointed under the Guardians and Wards Act, 1890 or where the superintendence of a minor's property is assumed by a Court of Wards. Indian law expressly forbids a minor from entering into a contract. Hence, any contract entered into by a minor is void-ab-initio regardless of whether the other party was aware of his minority or not. Further, though a minor is not competent to contract, nothing in the Contract Act prevents him from making the other party bound to the minor.
Factual Situation: Lai executed a promissory note in favour of Gurudutt, aged 16 years stating that he would pay Gurudutt a sum of ₹ 2 lakhs when he attains the age of majority. On attaining the age of 18, Gurudutt demanded the amount from Lai, who refused to pay. Gurudutt wants to take legal action against Lai. Identify the most appropriate legal position from the following:    (CLAT, 2017)
(a) Gurudutt should not have entered into a contract with Lai when he was a minor
(b) Lai was not aware of the fact that Gurudutt was a minor
(c) Lai argues that as per the Guardians and Wards Act, 1890, Gurudutt can claim the money only after he attains the age of 21
(d) A promissory note duly executed in favour of a minor is not void and can be sued upon by him, because he though incompetent to contract, may yet accept a benefit.

Correct Answer is Option (d)

Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained by undue influence, the contract is voidable at the option of the party whose consent was so obtained.
Factual Situation: The Pragya had been worked for a business man Anurag since the age of 18, working for a range of Anurag's businesses. In 2(XX), (aged 21) Pragya purchased a fiat. In 200.5, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offer up her fiat as financial security against an overdraft facility for the business. In July of that year, the banks solicitors wrote to Pragya, advising that she $hould take independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag. Pragya was unaware of the extent of the borrowing, but was assured that her mortgage would not be called upon, and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August 2005. In 2009, Mr. Anurag's business went into liquidation and the bank formally demanded ₹ 60,24,912 from Pragya. Pragya raised the defence of undue influence - stating that Mr. Anurag had induced her to enter into the agreement, and the bank had full knowledge/notice of this undue influence which should set aside the banks right to enforce the debt recovery against Pragya. Bank is contending that there is no undue influence.
Q.241. Whether the consent to offer the flat as financial security obtained through undue influence?    (NLU, Delhi, 2017)
(a) No because Pragya was not forced by Anurag to offer her flat as a security
(b) No, because Pragya was an educated and adult employee of Anurag and she knew what she was doing
(c) Yes, an employer/employee relationship was capable of developing into such a relationship for undue influence. There was no benefit to Pragya in the agreement. The lack of benefit to one party was evidence enough
(d) No, an employer/employee relationship is not capable of developing into a relationship for undue influence.

Correct Answer is Option (c)

Q.242. Irrespective of your answer to Q. 172, assume it is a case of undue influence. Decide whether the bank has done enough to allay concerns of undue influence?    (NLU, Delhi, 2017)
(a) The bank had not made all reasonable steps to allay themselves of the concerns regarding undue influence. The fact that, on advice from the bank, the defendant did not seek independent advice, should have been taken as confirmation of undue influence
(b) Yes, the Bank has advised Pragya that she should take independent legal advice before putting her property up as security for the debt.
(c) Pragya has a duty to be aware of the consequences of her act
(d) Bank has done enough as it had notified Pragya that the guarantee was unlimited in both time and financial amount.

Correct Answer is Option (a)

Q.243. Legal Principle: The acceptance must be absolute and unqualified, leaving no ground for doubt or uncertainty. If the acceptance is conditional, no valid contract is formed, and the offer can be withdrawn at any moment till the absolute acceptance has taken place within reasonable time of such offer.
Factual Situation: Delhi Government conducted an auction for the sale of license of wine shop. X offered the highest bid which was provisionally accepted". subject to the confirmation of Chief Commissioner who may reject any bid without assigning any reasons." Since X failed to deposit the required amount, Chief Commissioner rejected the bid. The government held X liable for the difference between the bid offered by him and the highest bid accepted in re-auction, and commenced proceedings for the recovery of the sum. It was contended on behalf of the government of Delhi that X was under a legal obligation to pay the difference as it was due to his default that a resale of the excise shop was ordered and hence X was liable for the deficiency in price and all expenses of such resale which was caused by his default.
Decide, giving reasons, whether X is liable to make payment to the Delhi Government?    (NLU, Delhi, 2017)
(a) No, X is not liable to make payment as the shop was sold to the highest bidder
(b) X is liable to pay because the Government of Delhi has to conduct re-auction and also suffered loss in the sale of the shop
(c) X is liable because his bid was accepted but he failed to deposit the required amount on time
(d) No, contract for sale was not complete till the bid was confirmed by the Chief Commissioner and till such confirmation; the bidder was entitled to withdraw the bid.

Correct Answer is Option (d)

Q.243. Legal Principle: An agreement is enforceable at law if parties competent to contract enter into it with free consent, for consideration.
Factual Situation: An extraordinary intelligent and matured boy of 17 years enters into an agreement with a man to sell his new iPhone for a sum of ₹ 5,000. He accepts the money but later on changes his mind and refuses to deliver his iPhone. The man files a suit for a specific performance.    (D.U. LL.B., 2017)
Decision:
(a) The man will get the phone as it was a valid agreement.
(b) The man will not succeed as the consideration was too low.
(c) The man will not succeed as the boy did not enter the agreement with free consent.
(d) The man will not succeed as the agreement was not valid.

Correct Answer is Option (d)

Q.244. Principle: When an offer is accepted by a person to whom it is made, it becomes a promise. But this promise will become legally binding only when the acceptance of the offer is unconditional.
Facts: Ram makes an offer to sell his house to Shyam for ₹ 50 lacs. Shyam accepts this offer but wants to pay the price of the house in five quarterly instalments. Ram does not agree to it. Thereafter Shyam agrees to pay the price of the house in the way as originally desired by Ram. But Ram does not reply to it. Can Shyam compel Ram to sell his house to him?    (CLAT, 2013)
(a) Shyam can compel Ram to sell his house because Shyam ultimately agrees to pay the price as originally desired by Ram
(b) Shyam can compel Ram to sell his house because Shyam in the first instance substantially complied with the desire of Ram
(c) Shyam can compel Ram to sell his house because Ram's offer does not exclude the payment of price in instalments
(d) Shyam cannot compel Ram to sell his house because Shyam imposes a new condition about payment of price of the house while accepting the offer which is not ultimately accepted by Rani.

Correct Answer is Option (d)

Q.245. Principle: Generally an agreement without consideration is not valid. Therefore, in order to make a valid agreement, some consideration which may have some value in the eyes of law, is essentially required.
Facts: William has an old car of which he makes seldom use. He voluntarily enters into an agreement with Smith to sell this car for rupees ten thousand. Thereafter one Anson approaches William and offers to buy that car for rupees one lac as the car was one which Anson has been searching for long. Now William wants to cancel his agreement with Smith and refuses to deliver the car to him saying that consideration (price) for the car promised by Smith is negligible and, therefore, agreement with him cannot be said to be valid one.    (CLAT, 2013)
(a) William can cancel his agreement with Smith as the consideration involved in that is really inadequate
(b) William cannot cancel his agreement with Smith as the sale of car for rupees ten thousand was voluntary and this price has some value in the eyes of law
(c) William can cancel his agreement with Smith as he was ignorant about the value/price of the car for which it could be sold
(d) William can cancel his agreement with Smith as he is entitled to get full market value/price of his car.

Correct Answer is Option (b)

Q.246. Principle: A contract cannot be enforced by or against a person who is not a party to it. However, where some benefit is conferred on third party by the contract itself, there third party can be allowed to enforce that contract to get such benefit.
Facts: Dinesh is liable to pay ₹ 50,000 to Suresh. In order to discharge this liability Dinesh enters into a contract with Ramesh by which Dinesh sells his car to Ramesh for ₹ 1 lac. Ramesh takes the delivery of the car and promises /assures to pay its price at the earliest. Dinesh separately informs Suresh about this contract for his satisfaction. Ramesh fails to pay the car's price. Suresh wants to join Dinesh in filing suit against Ramesh for the recovery of price of the car. Whether Suresh is entitled to do so?    (CLAT, 2013)
(a) Suresh is entitled to do so because the contract was made for his benefit
(b) Suresh is entitled to do so because Dinesh is liable to him and discharge of this liability depends upon the payment of the price of the car by Ramesh
(c) Suresh is not entitled to do so because liability of Dinesh does not depend upon any assurance of Ramesh
(d) Suresh is not entitled to do so because he is not a party to the contract between Dinesh and Ramesh

Correct Answer is Option (d)

Q.247.  Principle: If a contract is made by post between two persons living in two different cities, then the contract is said to be complete as soon as the letter of acceptance is properly posted, and the place of completion of the contract is that city where acceptance is posted. It is worth mentioning here that in every contract there is always an offer from one party and the acceptance of the offer from the other party.
Facts: Sani, a resident of Patna, gives an offer by post to sell his house for ₹25 lacs to Hani, a resident of Allahabad. This offer letter is posted on 1st January, 2013 from Patna and reaches Allahabad on 7th January, 2013. Hani accepts this offer and posts the letter of acceptance on 8th January, 2013 from Allahabad which reaches Patna on 16th January, 2013. But Sani presuming that Hani is not interested in accepting his offer, sells his house to Gani at same price on 15th of January, 2013. Hani files a suit against Sani for the breach of contract in the competent court of Allahabad. Whether Hani will succeed?    (CLAT, 2013)
(a) Hani cannot succeed as Sani cannot be compelled by law to wait for the answer from Hani for an indefinite period of time
(b) Hani cannot succeed as he could use some other effective and speedy mode for communicating his acceptance in minimum possible time
(c) Hani can succeed as he properly posted the letter of acceptance and the delay was beyond his control
(d) Hani can succeed as contract became complete in the eyes of law on the date of posting the letter of acceptance.

Correct Answer is Option (d)

Q.248. Principle: He, who goes to the Court of law to seek justice, must come with clean hands.
Facts: P enters into a contract with S under which S has to construct a house for P and has to complete the same within one year from the date of the contract. This contract includes two very important terms. According to first term if there is price hike of the materials to be used in the construction, then the escalation charges at a particular rate shall be payable by P to S. According to second term if the construction of the house is not completed within the period prescribed for it, then S will have to pay penalty at a particular rate to P. Before the completion of the construction work the workers of S go on strike and strike continues up to three months even after the expiry of one year. After that period workers return and the construction work again starts. During the last three months period of strike there was a considerable rise in the price of the building material. S claimed escalation cost from P. P did not agree to it. S filed a suit in the Court of law either to order the payment of the price of the building material on the basis of escalated price or to allow him to stop the work without incurring any penal liability towards P.    (CLAT, 2013)
(a) S will succeed as strike by his workers was unexpected and beyond his control
(b) S can succeed as there is an escalation clause in the contract
(c) S cannot succeed as he has failed to complete the construction work in time and strike cannot be treated as a valid excuse for delay in work
(d) S can succeed if he pays penalty to P for delay.

Correct Answer is Option (c)

Q.249. Principle: If the object of an agreement is or becomes unlawful or immoral or opposed to public policy in the eyes of law then the courts will not enforce such agreements. Law generally prohibits Child labour.
Facts: P enters into an agreement with T by which P has to let his house to T for two years and T has to pay ? 20,000.00 per month to P as rent. T starts a child care centre in that house. But after some lime in order to earn some money for the maintenance of the centre, T starts sending the children of the centre on the rotation basis to work for four hours a day in some nearby chemical and hazardous factories. When P comes to know about this new development, he asks T either to stop the children from working in factories or to leave his house immediately. T neither agrees to leave the house nor to stop the children from working in the factories. P files a suit in the court of law for appropriate relief/action.    (CLAT, 2013)
(a) P cannot succeed as the agreement was for the two years and it cannot be terminated before the expiry of that period
(b) P cannot succeed as the object at the time of making of the agreement was not clear
(c) P will succeed as the object of the agreement has become unlawful
(d) P will not succeed if T agrees to share the wages of the children with P.

Correct Answer is Option (c)

Q.250.  Principle: An agreement to do an act impossible in itself cannot be enforced by a court of law.
Facts: Ramesh agrees with his girl friend Shilpa to pluck stars from the sky through his extraordinary will power and bring them down on earth for her within a week. After the expiry of one week, Shilpa filed a suit for damages against Ramesh for the breach of contract as Ramesh failed to perform his promise.    (CLAT, 2013)
(a) Shilpa can succeed in getting damages as Ramesh has deceived her
(b) Ramesh cannot be held liable as he honestly believes that his love for Shilpa is true and, therefore, he will succeed in his endeavour
(c) The court cannot entertain such suits as the act promised under the agreement is impossible in itself
(d) Ramesh can be held liable for making an absurd promise.

Correct Answer is Option (c)

Q.251. Principle: An agreement may be oral or written. However, if a law specifically requires that an agreement must be in writing then the agreement must be in writing. A law specifically  requires that the agreements relating to transfer of the copyright in novel between an author of a novel and the producer of a motion picture must be in writing.
Facts: The author of a novel, Love at Lost Sight, had several rounds of discussion with a producer of motion picture regarding making of a motion picture based on Love at Lost Sight. During the last discussion, they decided to make a motion picture on Love at Lost Sight. The producer made a motion picture on Love at Lost Sight after making a payment of ₹ 10,00,(X)0 (Ten Lac only) in cash to the author who happily accepted this amount as full and final payment. Later on, on the advice of his lawyer, the author brought a case in a court of law against the producer on the ground that there is no written agreement between the producer and him.    (CLAT, 2013)
(a) The author is likely to succeed in the case as the agreement is not in accordance with the law
(b) The author cannot succeed in the case as he has given his consent to the agreement
(c) The author is not likely to succeed in the case because he has already accepted the amount o f ₹ 10,00,000 as full and final payment
(d) The author can succeed in the case as the consideration is not adequate.

Correct Answer is Option (a)

Q.252. Principle: A contract between the father and his son is a contract of utmost good faith. In such type of contract law presumes that at the time of entering into the contract the father was in a position to dominate the will of his son. Where one of the parties was in position to dominate the will of the other party, the contract is enforceable only at the option of the party whose will was so dominated.
Facts: Ram had advanced a sum of ₹ 10,000 to his minor son Shyam. When Shyam became major, his father Ram misused his parental position and entered into an agreement with Shyam and obtained a bond from him for a sum of ₹ 30,000 in respect of the advance. Whether this agreement is enforceable?     (CLAT, 2013)
(a) The agreement is enforceable against Shyam only for ₹ 10,000, the actual amount of money advanced to him.
(b) The agreement is enforceable against Shyam for ₹ 30,000 because he has signed the bond
(c) The agreement is enforceable against Shyam because he was major at the time of agreement
(d) The agreement is not enforceable against Shyam because Ram has misused his position as father to obtain an unfair advantage.

Correct Answer is Option (d)

Q.253. Principle: When at the desire of one person, any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the promise. Only a promise coupled with consideration is enforceable by law.
Facts: X, the uncle of Y, made a promise to pay him an amount of ₹ 10,000 as reward if Y quits smoking and drinking within one year. X also deposited the above mentioned amount in a bank and informed Y that the said amount will be paid to him if he quits smoking and drinking within one year. Within a period of six months of making the promise X died. After the expiry of one year of making the promise by X, Y made a request to the legal heirs of X demanding the promised money. The legal heirs of X declined the request of Y.    (CLAT, 2013)
(a) The promise of X to Y is enforceable by law because Y has quitted smoking and drinking
(b) The promise of X to Y is not enforceable by law because Y has benefitted by quitting smoking and drinking
(c) The promise of X to Y is enforceable by law because, the amount of ₹ 10,000 has been deposited in a bank
(d) The promise of X to Y is enforceable by law because X has died within a period of six months of making the promise.

Correct Answer is Option (a)

Q.254. Principle: Mere silence as to facts likely to affect the decision of a person to enter into a contract does not amount to fraud, unless his silence is in itself equivalent to speech.
Facts: A sells to B a horse which A knows to be of unsound mind. B says to A that if A does not say anything about the state of mind of horse, then B shall presume that the horse is of sound mind. A says nothing to B about the mental condition of horse.    (CLAT, 2013)
(a) A has committed fraud
(b) A has committed mis-representation
(c) There cannot be a fraud because A says nothing about the mental condition of the horse
(d) There cannot be a fraud because B did not ask A whether the horse is of sound mind.

Correct Answer is Option (a)

Q.255. Principle: When a party to a contract has refused to perform, or disabled himself from performing his promise in its entirety, the other party may put an end to the contract.
Facts: A engaged B on April 12 to enter his service, on June 1, but on May 11 ,A wrote to B that his services would not be needed. On May 22, B joined C for employment.    (CLAT, 2013)
(a) B must wait till June 1
(b) B must have joined C on May 11
(c) B is not bound to wait till June 1
(d) A must pay damages to B.

Correct Answer is Option (c)

Q.256. Principle: Every agreement in restraint of the marriage of any person, other than a minor, is void.
Facts: Qadir Khan died in a road accident. Two co-widows, Sultana and Marjina enter into an agreement that if any of them will remarry, would forfeit her right to her share in the deceased husband's property.    (CLAT, 2013)
(a) The agreement is void because it was restraint of marriage
(b) The agreement is not void because no restraint was imposed upon either of two widows for remarriage
(c) The restraint was partial so agreement is valid
(d) None of the above.

Correct Answer is Option (a)

Q.257. Legal Principle: When at the desire of the promisor, the promisee has done or abstained from doing, or does or abstains from doing, or promises to do or abstain something, such an act or abstinence or promise is called consideration for the promise.
Facts: A daughter promises to give maintenance to her uncle in consideration of her mother making a gift of certain properties to her. The daughter pleads back of consideration when the uncle seeks to enforce the contract. She says that the uncle is a stranger to the consideration and so he cannot enforce the contract. The daughter     (NLU, Delhi, 2013)
Decision:
(a) Will succeed because uncle being a stranger to the consideration cannot enforce it
(b) Will not succeed because uncle is a near relative and in such cases consideration is not necessary
(c) Cannot succeed because consideration might move from any person
(d) None of the above.

Correct Answer is Option (c)

Q.258. Legal Principles:
(1) Parties to contract should be capable of entering into contract, only then they can lay the foundation of a valid contract.
(2) Every person is competent to contract who is of the age of majority.
Facts: A minor agreed with B to become a tenant of his house and to pay ₹ 1,000 for the furniture therein. He paid ₹ 800 in cash and gave a promissory note for the balance. A occupied the premises and used the furniture for some months and then brought an action for refund of consideration. In this case    (NLU, Delhi, 2013)
Decision:
(a) A is liable to pay ₹ 1,000
(b) A is liable to pay remaining ₹ 200
(c) A is liable to refund of ₹ 800
(d) Neither B is liable to refund ₹ 800 nor A is under obligation to pay ₹ 200.

Correct Answer is Option (d)

Q.259. 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: Ram telegraphed to Shyam: "Will you sell me your bullet bike? Telegram the lowest price.” Shyam replied by telegram: "Lowest price for bike is ₹ 1 lakh" Ram immediately sent his consent through telegram stating: "I agree to buy the bike for ₹ 1 lakh asked by you," Shyam refused to sell the bike.    (D.U. LL.B., 2013)
(a) He cannot refuse to sell the bike because the contract has already been made
(b) He can refuse to sell the bike because it was only invitation to offer and not the real offer
(c) It was not a valid offer because willingness to enter into a contract was absent
(d) None of these.

Correct Answer is Option (b)

Q.260. Legal Principle: Every' person, who is of the age of majority, is competent to contract according to the law to which he is subject.
Facts: A minor mortgaged his house in favour of Thakur Das, a money lender, to secure a loan of ₹ 20,000. A part of this, i.e., ₹ 10,500 was actually advanced, the attorney who was acting for the money lender, received information that the plaintiff was still a minor. Subsequently the minor commenced an action stating that he was underage when he executed the mortgage and the same should, therefore, be cancelled. He prayed for setting aside the mortgage. The mortgagee money lender prayed for the refund of ₹ 10,500 from the minor.    (CLAT, 2012)
(a) As a minor's contract is void, any money advanced to a minor can be recovered
(b) A minor's contract is void ab initio any money advanced to a minor cannot be recovered
(c) A minor's contract is voidable; any money advanced to a minor can be recovered
(d) Advanced money can be recovered because minor has given wrong information about his age.

Correct Answer is Option (b)

Q.261. Legal Principle: The Constitution of India guarantees certain fundamental rights to its citizens. The Constitution also provides that these rights cannot be taken away by state even by a law. For violation of this, the person adversely affected by the law may approach the High Court or the Supreme Court for the issuance of an appropriate writ. One Qf these rights includes the freedom to form association that implies the right to join an association or not to join such an association.
Factual Situation: Owing to some industrial disturbances created by XATU, one of the several trade unions in AB Chemicals (Pvt) Ltd., the Company issued a circular to all its employees that as far as possible the employees may disassociate with XATU. Navin is an employee of AB Chemicals and the current General Secretary of XATU. Aggrieved by this circular, which affected the fundamental rights of his and other members of the Union, approaches the High Court of the state for a relief. Identify the most reasonable legal proposition.    (CLAT, 2017)
(a) Circular issued by a Company amounts to law in the constitutional sense and hence the High Court can issue a writ as pleaded for by Navin.
(b) The circular interferes with the freedom guaranteed by the Constitution and hence the High Court can issue an appropriate writ.
(c) The prohibition against any imposition of restriction against a fundamental right is not applicable to anybody other than the state and hence Navin will not get any relief from the High Court.
(d) The Company's circular is illegal and has to be quashed by the Court.

Correct Answer is Option (c)

Q.262. LEGAL PRINCIPLE: The concept of natural justice is against bias and for the right to a fair hearing. While the term natural justice is often retained as a general concept, and it has largely been replaced and extended by the general 'duty to act fairly'.
FACTUAL SITUATION: 'X', a male employee of a company was dismissed by the employer just on the basis of a complaint by 'V", a female employee of the company that 'X' was trying to be too friendly with her and often requested her to accompany him to the canteen. Is the dismissal of 'X' valid?    (CLAT, 2017)
(a) No, because the employer did not give a chance to 'X' to explain his side, thereby violated the principles of natural justice
(b) Yes, moral law is antique and therefore, not applicable in modern times, therefore the termination is valid and no violations of the principles of natural justice occurred.
(c) Yes, because men are not supposed to behave improperly with women and hence there is no violation of any principles of law
(d) No, because in the modem times this type of behaviour is common.

Correct Answer is Option (a)

Q.263. Legal Principle: Article 19(1)(d) of the Constitution of India guarantees to all citizens the right to move freely throughout the territory of India. But at the same time, Article 19(5) empowers the State to impose reasonable restrictions on the freedom of movement on the ground of interest of general public.
Factual Situation: Wearing of helmet is made compulsory for all two-wheeler riders by a law enacted by the State. The constitutionality of the law is questioned before the High Court on the ground that it violates Article 19(1)(d) of the petitioner. Will the petitioner succeed?    (NLU, Delhi, 2017)
Decision:
(a) Yes, because the restriction is not reasonable and no interest of general public is protected by this law.
(b) No, because the restriction is reasonable as it intends to protect interest of general public by preventing loss of lives of citizen of India.
(c) Yes, because freedom of movement is a fundamental right of every citizen of India and the State cannot take it away by way of legislation but has to amend the Constitution to take away the fundamental rights.
(d) No, because the freedom of movement will not be violated by the impugned legislation.

Correct Answer is Option (b)

Q.264. Principle: All citizens shall have the fundamental right to carry on any occupation, trade or business. But reasonable restrictions on the exercise of such rights can be imposed by law in the interest of the general public.
Facts: A large number of persons had been carrying on the business of dyeing and printing in Rajkot area for the last 25 years providing employment to about 30,000 families. From these business places untreated dirty water was being discharged on the roads thereby causing damage to the public health. A notice, therefore, was given to close this business till necessary measures to protect public health as provided under the environmental statutes were taken by those businessmen.     (CLAT, 2013)
(a) Notice cannot be justified as it will cause loss of employment to 30,000 families
(b) Notice cannot be justified as it amounts to violation of the fundamental right of the persons who have been carrying on the business for the last 25 years
(c) The notice cannot be justified on the ground of damage to public health as the persons in that area have been voluntarily residing for long and have become used to that environment
(d) The notice can be justified as the right to business is not absolute and reasonable restriction can be imposed by law in the interest of the public.

Correct Answer is Option (d)

Q.265. Legal Principle: Every person is entitled to freedom of conscience and to profess, practice and propagate his religion subject to public order, morality and health.
Facts: X, a Muslim sacrifices a cow on Bakra-Id believing it to be a part of his religious rites. However, there was a law of general prohibition on slaughter of cows. X, was prosecuted for slaughtering cow.    (D.U LL.B., 2013)
Answer:
(a) X cannot be prosecuted as killing of cow on Bakra-Id has the Muslim religious sanction
(b) X can be prosecuted as the state has a right to regulate the freedom of the religion in the interests of the public order
(c) X can be prosecuted as the slaughtering of cow hurts other community's religious sentiments
(d) X can be prosecuted, as the slaughtering of cow is cruelty to animals.

Correct Answer is Option (b)

Direction: The problem given below 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 already possess.
Problem 
Rule A: The State shall not discriminate, either directly or indirectly, on the grounds of sex, race, religion, caste, creed, sexual orientation, marital status, disability, pregnancy, place of birth, gender orientation or any other status.
Rule B: Direct discrimination occurs when for a reason related to one or more prohibited grounds a person or group of persons is treated less favourably than another person or another group of persons in a comparable situation.
Rule C: Indirect discrimination occurs when a provision, criterion or practice which is neutral on the face of it would have the effect of putting persons having a status or a characteristic associated with one or more prohibited grounds at a particular disadvantage compared with other persons.
Rule D: Discrimination shall be justified when such discrimination is absolutely necessary in order to promote the well-being of disadvantaged groups, such as women, dalits, religious minorities, sexual minorities or disabled persons.
Rule E: A discriminatory act shall be justified if its effect is to promote the well-being of disadvantaged groups, such as women, Dalits, religious minorities, sexual minorities or disabled persons.
Facts: On 2^nd October, 2010, the Governor of the State of Bihar ordered the release of all women prisoners who were serving sentence of less than one year imprisonment to mark the occasion of Mahatma Gandhi's birthday.

Q.266. Which of the following is correct with respect to the Governor's order?
(a) It discriminates directly on the ground of sex
(b) It discriminates indirectly on the ground of sex
(c) It does not discriminate on the ground of sex
(d) It discriminates directly as well as indirectly on the ground of sex.

Correct Answer is Option (a)

Q.267. Is the Governor's order justified under Rule D?
(a) Yes, because it is for the well-being of women prisoners
(b) No, because it is not absolutely necessary for the well-being of women prisoners
(c) No, because it does not promote the wellbeing of women prisoners or the society
(d) None of the above.

Correct Answer is Option (b)

Q.268. Assume that the Governor also made a second order requiring the release of all persons under the age of 25 and over the age of 65 who were serving a sentence of less than one year's imprisonment. Under the rules, this order is
(a) Directly discriminatory
(b) Indirectly discriminatory
(c) Not discriminatory
(d) Discriminatory, but justifiable.

Correct Answer is Option (a)

Q.269. Assume further that the government made a third order, releasing all graduate prisoners who are serving a sentence of less than one year's imprisonment. Which of the following statistics would have to be true for this order to be indirectly discriminatory? 
(a) Only 13% of the prison population in Bihar have graduation degree
(b) Of the graduate prisoners 89% belong to upper castes
(c) Only 25% women in Bihar get a graduation degree
(d) None of the above.

Correct Answer is Option (d)

Q.270. Legal Principle: Ownership in property consists of right to possess, right to use, right to alienate and right to exclude others. Sale is complete when property gets transferred from the seller to the buyer on sale.
Factual Situation: 'A' sold his car to After this, 'B' requested 'A' to keep the car in his care on behalf 'B' for one month. 'A' agreed.    (CLAT, 2017)
(a) Sale will be automatically completed after the expiry of one month
(b) Sale will be completed when 'B' will take the delivery of the car
(c) Sale of car is not complete
(d) Sale of car is complete.

Correct Answer is Option (d)

Q.271. Legal Principle: Every agreement, by which any party is restricted absolutely from enforcing his right in respect of any contract, by the usual legal proceedings in the ordinary Tribunals, is void to that extent. The law also provides that nobody can confer jurisdiction to a civil court by an agreement between parties.
Factual Situation: A and B entered into a valid contract for rendering certain service. A clause in the contract was that in case of any dispute arose out of the contract; it shall be referred to for Arbitration only. Is the contract valid?    (CLAT, 2017)
(a) Arbitrator cannot be termed as an ordinary Tribunal. Hence, the agreement is void and would be unenforceable
(b) The parties were trying to confer jurisdiction to some authority to decide a dispute and hence the clause would be invalid
(c) The contract is valid but the clause regarding Arbitration is void
(d) Arbitration is also a valid dispute settlement machinery recognized by law and hence the entire contract is valid.

Correct Answer is Option (d)

Q.272. Legal Principle: According to the law of trade unions in India, no suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer or member thereof in respect of any act done in contemplation or in furtherance of a trade dispute.
Factual Situation: Soloman, the Secretary of a registered Trade Union took a loan from a Bank for the higher education of his daughter. Soon after completing the course she was married to an NRI Engineer. Solomon did not repay the loan. The Bank demanded the payments from Soloman and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.    (CLAT, 2017)
(a) The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case no immunity will work
(b) The Bank cannot initiate any action against Soloman as he is the Secretary of a Registered Trade Union
(c) The Bank can recover the loan amount from the Trade Union as Soloman is the Secretary of the Union
(d) As Soloman did not use the loan amount for his use and hence, no action can be initiated against him.

Correct Answer is Option (a)

Q.273. Legal Principle: According to section 2 of the Industrial Disputes Act, 1947, 'Industrial dispute means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person'.
Factual Situation: The employees of D.K. Enterprises met the management and requested half a day leave to allow them to celebrate a lunar eclipse, which was going to happen two days later. The management refused the request. Does this situation amount to an 'industrial dispute'?    (CLAT, 2017)
(a) No as declaring holidays is a prerogative of the employer. So no industrial dispute
(b) No as Lunar eclipse is unconnected with employment
(c) As the difference of opinion between the employees and employer is on declaration of holiday it amounts to an issue connected with employment or with the terms of employment and hence, an industrial dispute
(d) Yes, because there is some difference of opinion it would be an industrial dispute.

Correct Answer is Option (c)

Q.274. Legal Principle: Under the Employees Compensation Act, 1923, an employer is liable to pay compensation to his workmen for injuries sustained by them by an accident arising out of and in the course of employment.
Factual Situation: M, the Manager of SRK Industries asked his secretary S to submit a report at the Government Labour Office. 'S' submitted the report as directed. On his way back S met one of his class mates. He then decided to have a cup of tea together on a way side restaurant. Sometime later, 'S' got a message from his office to report back as it was long time since he left the office. 'S' rushed back on his Motor Cycle. On his way back a Truck which was coming from a side road hit 'S'. He was admitted in a nearby hospital with multiple injuries. He claims compensation under the Employees Compensation Act from his employer.    (CLAT, 2017)
(a) The Employer is liable to pay compensation as the accident took place arising out of and in the course of employment.
(b) The Employer is not liable as the truck driver was negligent.
(c) The Employer is not liable as he was admitted in a private hospital and not a Government Hospital.
(d) The Employer is liable as S had to rush back to the office, because of the message from the office.

Correct Answer is Option (a)

Q.275. Legal Principle: According to law, a person wrho find goods belonging to another and takes them into his custody, is subject to the same responsibility as a bailee. Bailee is a person or party to whom goods are delivered for a purpose, such as custody or repair, without transfer of ownership. The finder of the goods legally can sell the goods found by him under certain circumstances including the situation that the owner refuses to pay the lawful charges of the finder.
Factual Situation: P, a college student, while coming out of a Cricket stadium found a necklace, studded with apparently precious diamonds. P kept it for two days thinking that the owner would notify it in a local newspaper. Since he did not notice any such notification, P published a small classified advertisement in a local newspaper. In two days' time, P was contacted by a film actor claiming that it was her Necklace and requested P to return it to her. P told her that she should compensate him for the advertisement charges then only he would return it otherwise he will sell it and make good his expenses. The film star told P that she had advertised in a national newspaper about her lost Necklace which was lost somewhere in the Cricket Stadium. The advertisement was published for three consecutive days incurring a large expenditure for her. Mentioning all this she refuses to pay P and claims the Necklace back. Which among the following is the most appropriate answer to this?    (CLAT, 2017)
(a) As it was wrong on the part of P to bargain over a property belonging to a celebrity and he should have accepted some gift which might have been given by the film star and returned the Necklace instead of threatening her that he would sell it.
(b) As the film star had notified in the newspaper, P ought to have read it and contacted her instead of publishing another notification. So he cannot claim any compensation.
(c) P was requesting the film star for the actual expenditure incurred by him before returning the Necklace. This request is legally sustainable.
(d) The film star was right in refusing P, as she did not offer any reward for anyone who would return the Necklace.

Correct Answer is Option (c)