Topics of Law Test 85

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 after making a payment of Rs. 10,00,000 (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.

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 Rs 20,000.00 per month to P as rent. T starts a child care centre in that house. But after some time in order to earn more 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.

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: When due to natural disaster or war it becomes impossible to perform a contract, non-performance of such contract shall not make either of the parties liable for breach of contract but this does not include commercial impossibility.
FACTUAL SITUATION: Rakesh a merchant based in Kolkata deals in almonds, which he procures from Indian as well as foreign markets. Vimlesh enters into a contract with Rakesh for supply of 500  kilograms of almonds @ Rs. 400 per kilogram. The relations between India and Pakistan turned sour and both countries snapped business ties soon after Rakesh agreed to supply almonds to Vimlesh. Rakesh did not deliver almonds to Vimlesh because he mostly procured almonds from Pakistan, which were comparatively cheaper. When asked by Vimlesh, Rakesh said that due to no trade and war like conditions between India and Pakistan, he is not in a position to supply him almonds. Vimlesh files a suit for breach of contract.
DECIDE.

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 Rs. 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 Rs. 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?

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 Rs. 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 Jaunuary, 2013. But Sani presuming that Hani is not interested in accepting this offer, sells his house to Gani at same price on 15th of January 2013. Hani files a suit against Sani for breach of contract in the competent court of Allahabad. Whether Hani will succeed?

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 against Ramesh for the breach of contract as Ramesh failed to perform his promise.

LEGAL PRINCIPLE: Mere silence as to the facts likely to affect the willingness of a person to enter to contract is not a fraud, unless the circumstances of the case are such that, on close examination if it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.
FACTS: X sells by auction to Y, a horse which X knows to be of unsound state of mind. X says nothing to Y about the horse's unsound state of mind. Give the correct answer.

PRINCIPLE: Where both parties to an agreement are under a mistake as to matter of fact essential to the agreement, the agreement is void.
FACTS: A had a piece of land, he believed that the value of the land was Rs. 1000 per square foot. B knew that the value of the land was in fact Rs. 1500 per square foot. However, he did not inform A and purchased the land at Rs. 1000.

As per the rules and the given facts, who coerces whom?

Baalu will succeed in getting the employment contract enforced if he can show that ______.