Topics of Law Test 29

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Topics of Law Test 29

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Weekly Quiz Competition

Question 1
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Legal Principles:
A. When land is sold, all 'fixtures' on the land are also deemed to have been sold.
B. If a movable thing is attached to the land or any building on the land, then it becomes a 'fixture'.
C. If a movable thing is placed on land with the intention that it should become an integral part of the land or any structure on the land, it becomes a fixture.

Facts:
Khaleeda wants to sell a plot of land she owns in Baghmara, Meghalaya, and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Gurpreet for Rs.60 lakh. After completing the sale, she removes the expensive Iranian carpet which used to cover the entire wooden floor of one of the bedrooms. The room had very little and Khaleeda used this light-coloured radiant carpet to negate some of the darkness in the room. Gurpreet , after moving in, realized this and files a case to recover the carpet from Khaleeda.

Applying the above rules If you were a judge you would decide in favor of :

A
Khaleeda in both situations

B
Gurpreet only

C
Khaleeda only

D
Gurpeet in both situations

Solution

Gurpreet in both situations.
As the above mentioned principle states that if the movable property is linked with the land or a part of land it becomes a fixture. And, when land is about to get sold fixtures with it are also deemed to sold with it. So, according to this Gurpreet is liable to get the Iranian carpet.
Question 2
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Principle : A person is said to do a thing fraudulently, if he does that thing with intent to defraud, but not otherwise.
Facts : 'A' occasionally hands over his ATM card to 'B' to withdraw money for 'A'. On one occasion 'B' without the knowledge of 'A',uses 'A's ATM card to find out the balance in 'A's account, but does not withdraw any money.

A
'B' has committed misappropriation.

B
'B' has committed the act fraudulently

C
'B' has committed breach of faith

D
'B' has not committed the act fraudulently

Solution

For fraud, it is necessary that a person intentionally makes a false statement to deceive another party and thereby induce him to enter into a contract. If the intention to deceive the party is absent, there is no fraud.
'B' does not have any intention of withdrawing money from account of 'A' without the consent of 'A" and no withdrawal has been carried out by 'B' who only checks the balance in the account (Derry v Peek (1889)LR 14 App Cas 337, UKHL1).
Question 3
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Principle : An agreement without free consent can be enforced only at the option of the party whose consent was not free.
Facts : A obtains the consent of 'B' to enter into an agreement by putting a gun on the head of B's girl friend.

A
'B' can enforce the agreement.

B
'A' can enforce the agreement.

C
'B' cannot enforce the agreement.

D
Neither 'A' nor 'B' can enforce the agreement.

Solution

For the free consent under section 14 of the Indian Contract Act, when it is not caused by
i. Coercion as under section 15
ii. Under influences as Section 16
iii. Fraud as defines Section 17
iv. Misrepresentation as defines Section 18
v. Mistake subject to provision of Section 20,21 & 22
The reasonable conclusion drawn that as the consent B is not free, B can enforce the agreement.
Question 4
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Principle : Consent is a good defence for civil action in tort. But consent must include both knowledge of risk and assumption of risk, i.e, readiness to bear harm.
Facts : A lady passenger was aware that the driver of the cab, in which she opted to travel was little intoxicated. The cab met with an accident and lady got injured.

A
Lady can refuse to pay the fare as she had suffered injuries.

B
Lady is entitled to claim compensation as she only knew about risk and there was no assumption of risk.

C
Lady is entitled to claim compensation as she had knowledge of risk.

D
Driver can take the plea that he was lightly intoxicated.

Solution

i. The plaintiff knows that there is a risk.
ii. He knowingly agrees to suffer the harm.
If only first point is present, there is only knowledge of the risk, it is no defence because the maxim his volentinon fit injuria. Merely because the plaintiff knows of the harm does not imply that he assent to suffer harm. The reasonable conclusion drawn Lady is entitled to claim compensation as she only knew about risk and there was no assumption of risk.
. option b is correct.
Hence option (b) is correct.op
.
Hence option (b) is correct.
Question 5
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Principle :
1. Wagering agreements are void.
2. Collateral agreements to wagering contracts are valid.
Facts : XYZ Bank lends Rs$$40,000$$ to Sabu in order to enable him to award as prize to Randeep who is the winner of horse race. Later Sabu refuses to pay the prize stating that horse racing is wagering agreement. Can XYZ Bank recover money from Sabu?

A
No, as it is a wagering contract.

B
Bank can recover money from Sabu so that payment of prize money can be made to Randeep.

C
Yes, as it is only a collateral agreement to horse racing and therefore the bank can recover the money from Sabu.

D
Horse racing is illegal and therefore XYZ Bank cannot recover anything from Sabu.

Solution

There is an exception under section 30 of the Indian Contract Act in which it is mentioned that in favour of certain prizes for Horse Racing shall not be deemed to render unlawful a subscription or contribution, or agreement to subscribe or contribute, made or entered into for or to word any plate, prize or sum of money, of the value or amount of five hundred rupees or upwords, to be rewarded to the winner or winners of any horse race. The reasonable conclusion drawn that only collateral agreement to horse racing and therefore the bank can recover the money from Sabu. Hence option (c) is correct.
Question 6
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Principle: Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.
Factual Situation: Roxanne supplies designer clothes to big showrooms and famous cloth houses. Max agrees to buy a certain consignment of only pink designer clothes for his shop due to the pink coloured theme of his famous shop. Issue cropped up when the exclusive pink coloured dresses were not delivered to Max's showroom, but to some other buyer, who had earlier contracted with Roxanne's store and all this was neither in the knowledge of Roxanne nor Max Decide whether the contract between Roxanne and Max is void?

A
Yes, because Roxanne and Max were under a mistake as to matter of fact which is essential to the agreement

B
No, because Max's agreement was fresh, so it is legally binding

C
Yes, because an earlier commitment made by store owner to some other buyer is far more relevant than another commitment

D
Roxanne and Max's contract is valid

Solution

(d) (d) is correct. An agreement will be binding on both the parties and will remain so until anyone of the violates the terms of the agreement. In the given case what happened between Roxanne and third party does effect the agreement between Roxanne and Max. Further neither of them is planning to violate the terms of agreements so the contract stands valid.
(c) is incorrect as the agreement between Roxanne and some earlier party holds no relevance whatsoever on the validity of agreement between Roxanne and Max.
(b) is also incorrect as validity of agreement does not depend upon its freshness or staleness.
(a) is incorrect. As any commitment with any other party will not be a mistake as to the matter of fact essential to this agreement.
Question 7
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Principle: Contract is an agreement entered into between the parties.
Factual Situation: Ramlal was a dealer in cement. The Government of India, by an order issued under the Essential Commodities Act, fixed the price of cement and also, the quantity which a person can buy from the dealer, Ramlal carried on his business under this new order for sometime, but he refused to pay sales tax on his sales transactions on the ground that these were not the contracts freely entered into by him.

A
Ramlal would succeed because free consent between the parties were there despite the restriction on price and quantity

B
Ramlal would not succeed because free consent between the parties were there despite the restriction on price and quantity

C
Ramlal would succeed because the government under the new order, forced him to enter into contracts

D
None of the above

Solution

Option D is correct as sales tax is the tax levied by the government which is binding on all the persons encompassed under its rulings. Firstly sales tax does not come under contract law further any individual contract can't have an effect on salestax so Ramlal cannot avoid its liability to pay sales tax.
Question 8
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Principle : When a person consented to an act to be done by another, he cannot claim any damages resulting from doing that act, provided the act done is the same for which consent is given.
Facts : 'P' submitted a written consent to a surgeon 'S' for undergoing a surgical operation for removal of appendicitis. The surgeon while doing surgery also removed the gall bladder of 'A':

A
'P' can claim damages from 'S'.

B
'P' is not bound to pay expenses of the surgery.

C
'P' is required to pay expenses for surgery for Appendicitis but not for Gall Bladder.

D
'P' cannot claim damages from 'S'.

Solution

A written consent for surgery was given by 'P' to surgeon 'S'. The consent was given only for the act of removal of appendicitis. However, 'S' also removes the gall bladder of 'A' for which no consent was given. This act was therefore carried out without the permission and approval of 'P'. In this case, 'S' acted sans valid consent. There is disobedience to the right of the patient's autonomy. (Ram Bihari Lal v Dr.J.N.Srivastave. AIR 1985 MP 150).
Question 9
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The object of which one of the following writs is to prevent a person to hold public office which he is not legally entitled to hold?

A
Mandamus

B
Quo warranto

C
Certiorari

D
Prohibition

Solution

Quo warranto is a prerogative writ requiring the person to whom it is directed to show what authority they have for exercising some right or power they claim to hold.
Question 10
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A tender is ____________.

A
an agreement

B
a proposal

C
an invitation to offer

D
an offer

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Topics of Law Test 29

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Topics of Law Test 29

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SHARING IS CARING

Question 1

Khaleeda in both situations

Gurpreet only

Khaleeda only

Gurpeet in both situations

Solution

Question 2

'B' has committed misappropriation.

'B' has committed the act fraudulently

'B' has committed breach of faith

'B' has not committed the act fraudulently

Solution

Question 3

'B' can enforce the agreement.

'A' can enforce the agreement.

'B' cannot enforce the agreement.

Neither 'A' nor 'B' can enforce the agreement.

Solution

Question 4

Lady can refuse to pay the fare as she had suffered injuries.

Lady is entitled to claim compensation as she only knew about risk and there was no assumption of risk.

Lady is entitled to claim compensation as she had knowledge of risk.

Driver can take the plea that he was lightly intoxicated.

Solution

Question 5

No, as it is a wagering contract.

Bank can recover money from Sabu so that payment of prize money can be made to Randeep.

Yes, as it is only a collateral agreement to horse racing and therefore the bank can recover the money from Sabu.

Horse racing is illegal and therefore XYZ Bank cannot recover anything from Sabu.

Solution

Question 6

Yes, because Roxanne and Max were under a mistake as to matter of fact which is essential to the agreement

No, because Max's agreement was fresh, so it is legally binding

Yes, because an earlier commitment made by store owner to some other buyer is far more relevant than another commitment

Roxanne and Max's contract is valid

Solution

Question 7

Ramlal would succeed because free consent between the parties were there despite the restriction on price and quantity

Ramlal would not succeed because free consent between the parties were there despite the restriction on price and quantity

Ramlal would succeed because the government under the new order, forced him to enter into contracts

None of the above

Solution

Question 8

'P' can claim damages from 'S'.

'P' is not bound to pay expenses of the surgery.

'P' is required to pay expenses for surgery for Appendicitis but not for Gall Bladder.

'P' cannot claim damages from 'S'.

Solution

Question 9

Mandamus

Quo warranto

Certiorari

Prohibition

Solution

Question 10

an agreement

a proposal

an invitation to offer

an offer

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