Topics of Law Test 86

A and B, a Hindu couple were married to each other. Owing to differences between them, they decide to get divorced. They entered into a contract laying down the conditions that both parties had to adhere with. One of the terms of the contract was that their children would not be entitled to claim the ancestral property of A, the husband.

A sent a letter to B stating that he was willing to sell to B, 10 bags of rice at Rs. 20 each. B wrote a letter to A accepting the offer and posted it.

PRINCIPLE: A contract procured by coercion is bad under Indian Contract Act. Coercion is defined as committing or threatening to commit any act forbidden by Indian Penal Code. Attempt to commit suicide is an offence under Indian Penal Code.
FACTS: A wanted his wife B to part with some landed property given to her by her father. B resisted fearing that her husband would sqander it away. A threatened her that if she does not sign the deed transferring the property to him (i.e., A), he would commit suicide. B signed the deed. Subsequently, she challenged the deed on the ground that the deed was bad under law.

PRINCIPLE: An agreement is void to the extent that it restricts absolutely, a party from enforcing his contractual rights by usual proceedings in any ordinary event.
FACTS: A and B entered into a transaction in Delhi for sale of goods based in Delhi. The contract stated that in case of a dispute, only civil courts in Chennai would have jurisdiction. Neither A nor B reside or carried on business in Chennai.

PRINCIPLE: When the parties to an agreement agree on the same thing in the same sense, there arises legally binding obligations between them.
FACTS: Zaverilla's antique shop was a well-known shop of the locality. Taradevi, a socialite of the locality, went to the shop and she was attracted by an earthen jar on display. Zaverilla explained to her that the jar belonged to Hoysala period; and despite its earthern composition, it was very strong and almost unbreakable. Taradevi replied to him that she was so captivated by the jar that it was immaterial to her as to which period it belonged. She bought the jar and came home. She placed the jar in a prominent place in her drawing room. One of her friends, an art critique, who happened to visit her, told her that the jar was not at all an antique, but Taradevi did not bother about it. One day, it accidentally fell down and broke into pieces. Taradevi took up the matter with Zaverilal that his both statements were wrong and, therefore, he should pay damages to her.

PRINCIPLE: An agreement becomes a contract when it is entered into between two or more people with each other's free consent. Two or more people are said to consent when they agree to the same thing in the same sense. Consent is said to be free when it is not caused by coercion, under influence, fraud, misrepresentation or mistake.
FACTUAL SITUATION: A went to a doctor to get himself treated. The doctor asked him to sign a consent form and said that unless he signs it, he will not examine him. A signed the form waiving his right to sue the Doctor.

In the above fact situation, _____.

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: A  contract is an agreement freely entered into between the parties.
FACTUAL SITUATION: Sharat is a dealer of wheat. The Government issued an order under the Essential Commodities Act, 1955 for fixed price of wheat and also the quantity which a person can buy from the dealer. Sharat carried on his dealership under the order of a while but he refused to pay VST on his sale transactions on the ground that these were not the contracts freely entered into by him.
DECIDE.

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: An agreement is void and unenforceable if considerations and objects are unlawful.
FACTUAL SITUATION: A enters into an agreement with B for ten countrymade pistols and ten landmines. A promises to pay a sum of Rs. 2,50,000 to B. He paid 75,000 in advance. On completing the work and handing over the materials as required, A refuses to pay the remaining sum of Rs. 1,75,000 to B.
DECIDE.

PRINCIPLE: An agreement, the meaning of which is not certain, or capable of being made certain, is void.
FACTUAL SITUATION: A and B, who were brothers, entered into an agreement which stated that A would sell his entire share of the ancestral property to B. The agreement did not mention the specific details (like survey number) of the property.