Business Law and Mercantile Law Fundamentals

This section consists of fifty $(50)$ questions. Each question consists of legal propositions/ principles (hereinafter referred to as 'principles') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles except the principles that are given here in below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the "most reasonable conclusion" arrived at may be unacceptable for any other reason. It is not the objective of this section to test your knowledge of law.
Principle: An agreement may be oral or written. However, if a law specifically required that an agreement must be in writing, then the agreement must be in writing. A law specifically requires that the agreements relating to transfer of the copyright in noval between an author of a novel and the producer of a motion picture must be in writing.
Facts: The author of a novel, Love at Lost Sight, had several rounds of discussion with a producer of motion picture regarding making of a motion picture based on Love at Lost Sight. During the last discussion, they decided to make a motion picture on Love at Lost Sigh. The producer made a motion picture on Love at Lost Sight after making a payment of $Rs. 10,00,000$ (ten Lac only) in cash to the author, who happily accepted this amount as full and final payment. Later on, one the advice of his lawyer, who author brought a case in a court of law against the producer on the ground that there is no written agreement between the producer and him.

In the year $2002$ the Competition Act was enacted replacing ___________.

Principle: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void.
Facts: 'X' promises to pay 'Y' $Rs. 50000$, if he ('Y') commits a crime, 'X' further promises to indemnify him ('Y') against any liability arising thereof. 'Y' agrees to act as per X's promise.
Which of the following derivations is correct?

The term business includes every lawful trade, occupation and profession.

This problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the questions.
(Questions 66-69):
Rules:
A. When land is sold, all 'fixtures' on the land are also deemed to have been sold.
B. If a moveable thing is attached to the land or any building on the land, then it becomes a 'fixture'.
Facts:
Khaleeda wants to sell a plot of land she owns in Begbmara, Meghalaya and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Gurpreet for sixty lakh rupees. After completing the sale, she removes the expensive Iranian carpet which used to cover the entire wooden floor of one of the bedrooms. The room had very little light and Khaleeda used this light-coloured radiant carpet to negate some of the darkness in the room. Gurpreet, after moving in, realizes this and files a case to recover the carpet from Khaleeda.
As a judge you would decide in favour of

The legal representative or any other person of an individual who is dead is liable to pay ta, x only if _________________________.

Choose the correct answer from the alternatives given.
A stranger to contract ________________.

Choose the correct answers from the following alternatives given
False representation does not amount to misrepresentation where:

An advertisement to pay reward to anyone who traces the missing boy of the advertiser is _____________.

Choose the correct answers from the following alternatives given
A person who is mentally deranged due to some mental strain or other personal experience and suffers from intermittent intervals of sanity and insanity is

Choose the correct answer from the alternatives given.
Contracts made before war with an alien enemy which are against public policy are:

LEGAL PRINCIPLE: When one person signifies to another his willingness to do or abstrain 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 $Rs. 20$ lakh." Ram immediately sent his consent through telegram stating. " I agree to buy the car for $Rs. 20$ lakh asked by you." Sohan refused to sell the car.

Choose the correct answer from the alternatives given.
Who among the following is not disqualified by law to enter in to contract?
1. A major person    
2 . A lunatic    
3. Insolvent person 
4.  Diplomatic staff of foreign states

Choose the correct answers from the alternatives given
Claim for Quantum Meruit cannot arise in case of _________.

Choose the correct answers from the alternatives given
The basis of quasi contractual relations is the________________.

Choose the correct answers from the alternatives given
Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for _____________.

ad information means

The chief sources of English law are

ad volorem menas

Choose the correct answers from the alternatives given
Which of the following statements is not correct?

Principle Everybody is under a legal obligation to take reasonable care to avoid act or omission which he can foresee would injure his neighbor. The neighbor for this purpose is any person whom he should have in his mind as likely to be affected by his act.
Factual Situation Ram, while rushing to board a moving train, pushed Shyam, who was walking along with a heavy package, containing fire crackers. As a result, the package slipped from his hand and crackers exploded injuring a boy standing close by. A suit was filed against Ram, by the boy, claiming damages.
Decision

Damodar Valley Corporation is ___________.

Consists of legal proposition(s)/principle(s) (herein after referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles those are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of law.
Therefore, to answer a question, principle is to be applied to the given facts and to choose the most appropriate option.
Principle: According to Sec. 2 of the Industrial Disputes Act, 1947, Industrial dispute means any dispute or difference between employers and employers or between employers and workmen or between work men and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person'.
Facts: The employees of DK Enterprises met the management and requested half a day leave to allow them to celebrate a lunar eclipse, which was going to happen two days later. The management refused the request. Does this situation amount to an 'industrial dispute?

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.
Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained to undue influence, the contract is voidable at the option of the party whose consent was so obtained.
Factual Situation: The pragya had been worked for a business man Anurag since the age of $18$, working for a range of Anurag's businesses. In $2000$, (aged $21$) Pragya purchased a flat. In $2005$, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offe up her flat as financial security against an overdraft facility for the business. In July of that year, the banks solicitors wrote to Pragya, advising that she should take Independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag, Pragya was unaware of the extent of the borrowing, but was assured that her mortgage would not be called upon, and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August $2005$. In $2009$, Mr.s Anurag's business went into liquidation and the bank formally demanded $Rs. 60,24,912$ from Pragya. Pragya raised the defence of undue influence - stating that Mr. Anurag had induced her to enter into the agreement, and the bank had full knowledge/ notice of this undue influence which should set aside the banks right to enforce the debt recovery against Pragya. Bank is contending that there is no undue influence.
Legal Principle: The acceptance must be absolute and unqualified, leaving no ground for doubt or uncertainty. If the acceptance is conditional, no valid contract is formed, and the offer can be withdrawn at any moment till the absolute acceptance has taken place within reasonable time of such offer.
Factual Situation: Delhi Government conducted an auction for the sale of license of wine shop. X offered the highest bid which was provisionally accepted "... subject to the confirmation of Chief Commissioner who may reject any bid without assigning any reasons." Since X failed to deposit the required amount, Chief Commissioner rejected the bid. The government held X liable for the difference between the bid offered by him and the highest bid accepted in reauction, and commenced proceedings for the recovery of the sum. It was contended on behalf of the government of Delhi that X was under a legal obligation to pay the difference as it was due to his default that a resale of the excise shop was ordered and hence X was liable for the deficiency in price and all expenses of such resale which was caused by his default.
Decide, giving reason, whether X is liable to make payment to the Delhi Government.

Ad hoc means ______________.

The Indian Mercantile law is mainly an adaptation of______.

Choose the correct answer from the alternatives given.
Raghav, aged 16 years, falsely representing himself to be of 19 years, enters into an agreement to sell his property to Rahu! and receives from Rahu! a sum of  20,00,000 in advance. Out of this sum Raghav buys an imported car worth 10,00,000 and spends the rest on a pleasure trip to France. After Rahul attained majority, Rahu! sues him for the conveyance of the property or, in the alternative, for the refund of 20,00,000 and damages. The agreement between Raghav and Rahul is:

Principle : False imprisonment is a tort (wrong) which means the total restraint of a person's liberty without lawful justification.
Facts : A part of a public road had been closed for spectators of a boat race. 'P' wanted to enter but he was prevented by 'D' and other policemen because he had not paid the admission fee. 'P' was able to enter the enclosure by other means but was unable to go where he wanted to go but allowed him to remain where he was or to go back. 'P' remained within the enclosure and refused to leave. Subsequently, 'P' sued 'D" for false imprisonment.

Mercantile law is related to the  ______ of the people of the society.

Which of the following is the most important source of the Mercantile Law?

_______means those customs and usages which are binding on traders in their dealings with each other.

The main purpose of the corporation sole is to ______.

When an agreement is discovered to be void, any person who has received any advantage under such agreement ____________.