Contract Law (AILET Legal-Aptitude): Questions 13 - 14 of 18

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 152 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 150.00 or

Question number: 13

» Contract Law

Appeared in Year: 2015

MCQ▾

Question

LEGAL PRINCIPLE: A partner is liable for the debts incurred by the other partners in the course of partnership.

FACTUAL SITUATION: Satwik and Prateek enter into a partnership to produce a film wherein Satwik also directs the movie. The movie bombed at the box office. Consequently, they run into financial difficulties and the partnership ends. Prateek goes to Abbas to borrow some money, which Abbas understands is for repaying the debts from the partnership. Prateek takes the money and absconds to Malibu. Abbas sues Satwik for the amount. Decide.

Choices

Choice (4) Response
a.

Satwik is not liable as Prateek absconded with the money instead of using it to pay off the debts in the partnership.

b.

Satwik is liable to return the money as it was his partner, Prateek, who directed the movie.

c.

Abbas has been negligent in not properly enquiring the purpose for which Prateek borrowed the money. Satwik is not liable to pay him back according to the principle of contributory negligence.

d.

Satwik is not liable as by the time Prateek borrowed money from Abbas, the partnership was no more in existence.

Question number: 14

» Contract Law

Appeared in Year: 2015

MCQ▾

Question

LEGAL PRINCIPLE: When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that person to such an act or abstinence, he is said to have made a proposal.

FACTUAL SITUATION: Ram sends a telegram to Sohan, writing: “Will you sell me your Rolls Royce car? Telegram the lowest cash price. ” Sohan also replied by telegram: “Lowest price for car is Rs. 20 lakhs. ” Ram immediately sent his consent through telegram stating: “l agree to buy the car for Rs. 20 lakh asked by you. ” Sohan refuses to sell the car.

Choices

Choice (4) Response
a.

lt was not a valid contract as offer and acceptance is conveyed through telegram.

b.

lt was not a valid offer because willingness to enter into a contract was absent.

c.

He can refuse to sell the car because it was only invitation to offer and not the real offer.

d.

He cannot refuse to sell the car because the contract has already been made.

Sign In