Contract Law (CLAT Legal-Aptitude): Questions 94 - 96 of 97

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Question number: 94

» Contract Law

MCQ▾

Question

PRINCIPLE: Law never enforces an impossible promise.

FACTS: ‘P’ made a promise to ‘Q’ to discover treasure by magic.

Choices

Choice (4) Response

a.

Law will enforce the promise only at the option of ‘Q’.

b.

Law will not enforce the promise

c.

Law will enforce the promise.

d.

Law will enforce the promise only at the option of ‘P’.

Question number: 95

» Contract Law

MCQ▾

Question

PRINCIPLE:

a. Wagering agreements are void.

b. Collateral agreements to wagering contracts are valid.

FACTS: XYZ Bank lends Rs. 40, 000 to Sabu in order to enable him to award as prize to Randeep who is the winner of horse race. Later Sabu refuses to pay the prize stating that horse racing is wagering agreement. Can XYZ Bank recover money from Sabu?

Choices

Choice (4) Response

a.

No, as it is a wagering contract.

b.

Bank can recover money from Sabu so that payment of prize money can be made to Randeep.

c.

Yes, as it is only a collateral agreement to horse racing and therefore the bank can recover the money from Sabu.

d.

Horse racing is illegal and therefore XYZ Bank cannot recover anything from Sabu.

Question number: 96

» Contract Law

MCQ▾

Question

PRINCIPLE: A person, who is usually of unsound mind, but occasionally normal, may make a contract when he is not of unsound mind.

FACTS: ‘P’ generally remains in the state of unsound mind and rarely becomes capable of understanding the things.

Choices

Choice (4) Response

a.

‘P’ can make a contract only for his own benefit.

b.

‘P’ can never make a contract.

c.

‘P’ can make a contract at any time whenever he pleases.

d.

P’ can make a contract when normal.

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