Contract Law (CLAT Legal-Aptitude): Questions 15 - 16 of 97

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Question number: 15

» Contract Law

Appeared in Year: 2013

MCQ▾

Question

PRINCIPLE: A Contract cannot be enforced by or against a person who is not a party to it. However, where some benefit is conferred on third party by the contract itself, there third party can be allowed to enforce that contract to get such benefit.

FACTS: Dinesh is liable to pay Rs. 50000/- to Suresh. In order to discharge this liability Dinesh enters into a contract with Ramesh by which Dinesh sells his car to Ramesh for Rs. 1 lac. Ramesh takes the delivery of the car and promises assures to pay its price at the earliest. Dinesh separately informs Suresh about this contract for his satisfaction. Ramesh fails to pay the car’s price. Suresh wants to join Dinesh in filing suit against Ramesh for the recovery of price of the car. Whether Suresh is entitled to do so?

Choices

Choice (4) Response
a.

Suresh is entitled to do so because the contract was made for his benefit.

b.

Suresh is entitled to do so because Dinesh is liable to him and discharge of this liability depends upon the payment of the price of the car by Ramesh.

c.

Suresh is not entitled to do so because liability of Dinesh does not depend upon any assurance of Ramesh

d.

Suresh is not entitled to do because he is not a party to the contract between Dinesh and Ramesh.

Question number: 16

» Contract Law

Appeared in Year: 2012

Assertion-Reason▾

Assertion (Ꭺ)

A person claims compensation for his non-gratuitous act.

Reason (Ꭱ)

A person who enjoys benefit from lawful, non-gratuitous act of another must compensate him even though there is no contract.

Choices

Choice (4) Response
a. Ꭺ is false but Ꭱ is true
b. Both Ꭺ and Ꭱ are false
c. Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ
d. Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

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