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Topics of Law Test 32

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Topics of Law Test 32
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  • Question 1
    1 / -0
    Which one of the following statements is correct?
    Solution
    Finance Commission is a body set up under the Article 280 of the Constitution. Its main function is to recommend measures and methods on how revenues need to be distributed between the Centre and States.
    While, Planning Commission has been replaced by a new institution named NITI Aayog. One of its main functions is to make an assessment in the material, capital and human resources of the country.
  • Question 2
    1 / -0
    Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.
    Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained to 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 $$2000$$, (aged $$21$$) Pragya purchased a flat. In $$2005$$, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offe up her flat as financial security against an overdraft facility for the business. In July of that year, the banks solicitors wrote to Pragya, advising that she should 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.s Anurag's business went into liquidation and the bank formally demanded $$Rs. 60,24,912$$ 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.
    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 reauction, 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 reason, whether X is liable to make payment to the Delhi Government.
    Solution
    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. The contract for sale was uncertain and not absolute till confirmed by the Chief Commissioner. Because it was an uncertain contract, the bidder had the choice to withdraw the bid. (smt. Sohbatdei vs Devipal And Ors AIR $$1971\ SC\ 2192, (1972) 3\ SCC\ 495, 1971\ III\ UJ\ 395\ SC)$$.
  • Question 3
    1 / -0
    The report of the UPSC __________.
    Solution
    According to Article 323 of the Indian Constitution it shall be the duty of the Union commission to present annually to the President a report as to the work done by the commission and on receipt of such report the president shall lay before the parliament the report along with a memorandum explaining(in respect to certain cases) the reasons for non-acceptance of advice given by the commission and the reason for such non-acceptance. 
  • Question 4
    1 / -0
    Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.
    Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained to undue influence, the contract is voidable at the option of the party whose consent was so obtained.
    Factual Situation: Pragya had been worked for a businessman Anurag since the age of $$18$$, working for a range of Anurag's businesses. In $$2000$$, (aged $$21$$) Pragya purchased a flat. In $$2005$$, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offer up her flat as a financial security against an overdraft facility for the business. In July of that year, the bank's solicitors wrote to Pragya, advising that she should 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.s Anurag's business went into liquidation and the bank formally demanded $$Rs. 60,24,912$$ 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.
    Irrespective of your answer, assume it is a case of undue influence. Decide whether the bank has done enough to allay concerns of undue influence?
    Solution
    The bank had not made all reasonable steps to alloy themselves of the concerns regarding undue influence. The fact that, on advice from the bank, the defendant did not seek independent advice, should have taken as confirmation of undue influence.
    The bank did not take enough steps to put concerns of undue influence at rest. The bank was already aware about the element of undue influence in this case and should have taken more appropriate steps in this regard.
  • Question 5
    1 / -0
    Principle : When a person interferes with peaceful possession of another person without the permission of the person in possession of those premises, commits trespass to land.
    Facts : 'T' just walked over the land of 'P' to reach his house as it was short cut. 'P' had displayed a notice that it is not a thoroughfare. 'P' did not cause any damage to the land.
    Solution
    'T' has not taken permission of 'P' to walk over the land. The and has a notice informing that it is not a thoroughfare. Even though there is no damage caused to the land, 'T' has caused trespass.
  • Question 6
    1 / -0
    Principle: A citizen is expected to take reasonable duty of care while driving on the road and not to cause hurt to any person.

    Factual Situation: X, the owner of a car, asked his friend Y to drive the car to his office. As the car was near his (X's) office, it hit a pedestrian P on account of Y's negligent driving and injured him seriously. P sued X for damages. Which one of the following is correct?
  • Question 7
    1 / -0
    The essential ingredients of a crime are _______________.
    Solution
    Guilty act and guilty mind are considered as the very essential elements of a crime because to commit an offense or a crime, a person must have a guilty intention. 
    Hence, D is the correct option.
  • Question 8
    1 / -0
    Is intention a mental condition?
    Solution
    Yes. 
    Intention means state of mind in which person is mentally fit and have idea what he is going to do. When an wrongful act is done intentionally it leads to the crime and is punished by law. 
  • Question 9
    1 / -0
    Legal Principle: A violation of a legal right, with or without damage, gives rise to a tort.

    Factual Situation: 'A' establishes a coaching class and charges Rs.5,000 per year as fees. A's neighbour 'B' establishes another coaching class thereby creating a competition.This forces A to reduce his fees to Rs. 3,000 per year.

    Question: Can A claim damages from B for the loss caused to him?
    Solution
    The above case is based on the legal doctrine of Injuria sine damnum which means injury of legal rights without damage. It basically states that infringement of an absolute private right without any actual loss or damage. Here, physical damages or actual loss means loss or damage in terms of health, money, etc. Therefore, A will not be compensated since his legal rights are not violated even though actual damage/loss is suffered. 
  • Question 10
    1 / -0
    Tort means ______________.
    Solution
    In common law jurisdictions, a tort is a civil wrong that causes a claimant to bear loss or harm resulting in legal liability for the person who commits the tortious act. Torts are grounds for lawsuits to compensate a grieving party for any damages or injuries suffered.
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