Topics of Law Test 83

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 are decorated according to contemporary style.

A, a contractor, appointed B to manage his entire work. It as agreed that B would receive 50% of the profits as his remuneration and would bear all the losses, if any here, B is___________.

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 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 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 the Car. Will he succeed?

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?

When the parties to a contract agree that a certain sum of money would be payable in case of breach of contact such payment of damage is called ________________.

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: Pragya had been working for a business man Anurag since the age of 18. 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 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 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 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 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.
Assuming it is a case of undue influence. Decide whether the bank has done enough to allay concerns of undue influence?

Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: Contract is an agreement freely 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 sale transactions on the ground that these were not the contracts freely entered into by him.
Decide.

LEGAL PRINCIPLE: An agreement is void if its object is unlawful.
FACTUAL SITUATION: Sunil had a rich uncle who owns prime property in Chennai and had lot of money in the bank. Being the only heir, Sunil was sure that he would inherit the property. One day the uncle called him to his room and announced that he planned to marry again. This angered Sunil and he plans to murder his uncle so he hired Anuj, a murderer and entered into a contract with him to kill his uncle's house intending to kill him. On reaching there, he realised that Sunil's uncle was already dead so he left without doing anything. Next day, after post-mortem report, it transpired that Sunil's uncle had died due to heat attack. Now, Sunil wants to recover the advance from Anuj, Will he succeed?
DECIDE.

LEGAL PRINCIPLE:  Every agreement in restraint of marriage of any person is void.
FACTUAL SITUATION: X entered into an agreement with a banker and deposited Rs five lakhs with the banker. The terms of the agreement provided that X's son Y shall be the beneficiary of the deposited amount only if he marries after he attains the age of 21.
QUESTION: Is agreement between X and banker void?

PRINCIPLE: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be fee when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake. When consent to an agreement is caused by coercion, undue influence, fraud or misrepresentation, the agreement is a contract viodable (rescindable ot terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.
FACTS: ''X' threatens to gun down 'Y', if he ('Y'') does not sell his property worth Rs. 20,00,000 for Rs. 1,00,000 only. As a consequence, 'Y' agrees to see it as demanded by 'X'?
Which of the following derivations is CORRECT?