Contract Law (AILET Legal-Aptitude): Questions 7 - 8 of 18

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Question number: 7

» Contract Law

Appeared in Year: 2015

MCQ▾

Question

LEGAL PRINCIPLES: A person is said to be of sound mind for the purpose of making a contract if, at the time he makes it, he is capable of understanding it and forming a rational judgement as to its effect upon his interests.

FACTUAL SITUATION: Mr. X who is usually of sound state of mind but occasionally of unsound state of mind, enters into a contract with Mr. Y when he is of unsound state of mind. Mr. Y having come to know about this fact afterwards, wants to file a suit against Mr. X.

Choices

Choice (4) Response

a.

Mr. X cannot enter into contract because he was of unsound state of mind when he entered into contract.

b.

Mr. X can enter into contract but the burden is on the other party to prove that he was of unsound state of mind at the time of contract.

c.

Mr. X can enter into contract but the burden is on Mr. X to prove that he was of sound state of mind at the time of contract.

d.

Contract with a person of unsound state of mind is void.

Question number: 8

» Contract Law

Appeared in Year: 2015

MCQ▾

Question

LEGAL PRINCIPLE: A contract which is impossible to perform becomes void.

FACTUAL SITUATION: Surender agreed to deliver a specific quality of rice to Sonakshi identified by both of them. Before delivery, the rice was burnt by short circuit. ls Surender discharged from the performance of the contract?

Choices

Choice (4) Response

a.

Surender is discharged from performance as the subject matter of the contract is destroyed.

b.

Surender is discharged from performance as the subject matter has been specifically identified.

c.

Surender is not discharged from performance as he can procure rice from other sources.

d.

None of the above

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