Question:
Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : A judgment which binds only the parties to a suit in which the judgment was passed is called judgment in personam; whereas a judgment which binds all people irrespective of whether they were party to suit or not is known as judgment in rem.
FACTUAL SITUATION : Comment on the correctness of this statement: “Judgment of a competent court determining contractual obligations of the parties to a contract is an example of judgment in personam; but a judgment of a competent court declaring a party to be insolvent is an example of judgment in rem.”
DECISION :
Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : A judgment which binds only the parties to a suit in which the judgment was passed is called judgment in personam; whereas a judgment which binds all people irrespective of whether they were party to suit or not is known as judgment in rem.
FACTUAL SITUATION : Comment on the correctness of this statement: “Judgment of a competent court determining contractual obligations of the parties to a contract is an example of judgment in personam; but a judgment of a competent court declaring a party to be insolvent is an example of judgment in rem.”
DECISION :
LEGAL PRINCIPLE : A judgment which binds only the parties to a suit in which the judgment was passed is called judgment in personam; whereas a judgment which binds all people irrespective of whether they were party to suit or not is known as judgment in rem.
FACTUAL SITUATION : Comment on the correctness of this statement: “Judgment of a competent court determining contractual obligations of the parties to a contract is an example of judgment in personam; but a judgment of a competent court declaring a party to be insolvent is an example of judgment in rem.”
DECISION :
Updated On: Aug 5, 2024
- The statement is incorrect because a judgment relating to contract is a judgment in rem as it binds both the parties to the suit as well as the strangers. But a judgment relating to insolvency applies only to the person who has been adjudged to be an insolvent; hence it is a judgment in personam.
- The Statement is wrong as both the judgments are judgments in rem as both bind not only the parties to the suit but also others.
- The Statement is wrong as both the judgments are judgments in personam as both the judgments bind not only the parties to the suit but not the others.
- The statement is correct.
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The Correct Option is D
Solution and Explanation
The correct option is (D): The statement is correct.
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