Contract Law (AILET Legal-Aptitude): Questions 15 - 16 of 18
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Question number: 15
» Contract Law
Appeared in Year: 2014
LEGAL PRINCIPLE: Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent.
FACTUAL SITUATION: Feroz and Pinto entered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur. Feroz breaches the contract and Pinto, being a resident of Udaipur, would like to sue him in Udaipur. He challenged the validity of the clause.
Pinto will fail as he was of sound mind while entering into contract and having accepted it, he cannot now deny his obligation.
Pinto will succeed as the contract does not allow him to institute any legal proceedings in any court or tribunal in Udaipur.
Pinto will fail as the contract does not restrain him from instituting legal proceedings in Jaipur.
Pinto will succeed as Feroz had made him suffer and the law must take his convenience into account and allow him to sue in Udaipur.
Question number: 16
» Contract Law
Appeared in Year: 2016
LEGAL PRINCIPLE: A suit shall be instituted in the court within whose jurisdiction the cause of action arises; or the defendant actually and voluntarily resides or carries on business, or personally works for gain.
FACTUAL SITUATION: ‘Y’ carries on business in Mumbai. ‘Z’ carries on business in Delhi. ‘Z’ buys goods of ‘Y’ in Mumbai through his agent and request ‘Y’ to deliver them at Delhi. Accordingly, ‘Y’ delivered the goods at Delhi. But he did not get the price of the goods delivered in Delhi. Therefore, he intends to move the Civil Court for recovery of amount from ‘Z’. Which court may ‘Y’ approach?
‘Y’ may institute the suit either at Delhi where Z carries on business or at Mumbai where the cause of action arose.
‘Y’ may institute the suit at Delhi where ‘Z’ carries on business.
‘Y’ may institute the suit simultaneously at Delhi where ‘Z’ carries on business and at Mumbai where the cause of action arose.
‘Y’ may institute the suit at Mumbai where the cause of action arose.