Contract Law (CLAT (Common Law Admission Test) Legal-Aptitude): Questions 92 - 95 of 97

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Question number: 92

» Contract Law

Appeared in Year: 2016

MCQ▾

Question

PRINCIPLE: An agreement without free consent can be enforced only at the option of the party whose consent was not free.

FACTS: P obtains the consent of ‘Q’ to enter into an agreement by putting a gun on the head of Q’s girlfriend.

Choices

Choice (4) Response

a.

‘Q’ can enforce the agreement.

b.

‘P’ can enforce the agreement.

c.

‘Q’ cannot enforce the agreement.

d.

Neither ‘P’ nor ‘Q’ can enforce the agreement.

Question number: 93

» Contract Law

MCQ▾

Question

PRINCIPLE: Mere silence as to facts likely to affect the decision of a person to enter into a contract is not fraud.

FACTS: ‘P’ sells to ‘Q’ (A’s daughter who is minor) a horse which ‘P’ knows to be unsound. ‘P’ says nothing to ‘Q’ about the unsoundness of the horse.

Choices

Choice (4) Response

a.

‘P’ has committed fraud.

b.

‘Q’ can take plea of fraud because she is minor.

c.

There cannot be a contract between a father and daughter.

d.

‘P’ has not committed fraud.

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.

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