Comprehension

consists of legal proposition(s)/ principle(s) (hereinafter 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 q uestion. 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

Question: 1

Principle: When a person interferes with peaceful possession of another person without the permission of the person in possession of those premises, it commits trespass to land.
Facts: 'T' just walked over the land of 'P' to reach his house as it was a short cut. 'P' had displayed a notice that it is not a thoroughfare. 'P' did not cause any damage to the land.

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In legal reasoning questions, always remember that trespass to land requires only unauthorized entry; actual harm is not necessary for liability.
Updated On: Aug 14, 2025
  • 'T' has created nuisance for 'P'
  • 'T' has violated privacy of 'P'
  • 'T' has committed trespass to land
  • 'T' has not committed any trespass on the land of 'P'
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The Correct Option is C

Solution and Explanation

Step 1: Understand the principle. The principle clearly states that any interference with the peaceful possession of another person’s property, without their consent, constitutes trespass to land. This is true even if no physical damage is caused.
Step 2: Apply the principle to the facts. In the given facts, 'P' is in peaceful possession of the land. 'T' entered and walked over the land without permission, despite there being a notice that it was not a thoroughfare. This is an act of interference with possession.
Step 3: Address the "no damage" point. Trespass to land does not require actual damage. The mere unauthorized entry is sufficient to constitute trespass. Therefore, the fact that 'T' did not cause damage does not protect him from liability.
Step 4: Eliminate incorrect options.
- Option (a): Nuisance involves interference with the enjoyment of property, usually continuous and causing inconvenience, which is not the case here.
- Option (b): Violation of privacy refers to intrusion into someone’s private life, which is different from trespass to land.
- Option (d): This is incorrect because unauthorized entry has occurred, which by definition is trespass.
Step 5: Conclusion. Based on the principle, the correct answer is that 'T' has committed trespass to land, regardless of the absence of damage.
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Question: 2

Principle: Acceptance of a proposal must be absolute and unqualified.
Facts: 'A' made a proposal to sell his motorcycle to 'B' for rupees 25,000. 'B' agreed to buy it for rupees 24,000. 'A' sold his motorcycle to 'C' for 26,000 the next day. 'B' sues 'A' for damages.

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In contract law, any change to the terms of the offer during acceptance turns it into a counter-offer, which cancels the original offer.
Updated On: Aug 14, 2025
  • 'B' will get the difference of rupees 1,000/- only
  • 'B' will get damages from 'A'
  • 'B' can proceed against 'C'
  • 'B' will not get any damages from 'A'
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The Correct Option is D

Solution and Explanation

Step 1: Understanding the principle. The principle clearly states that acceptance must be absolute and unqualified to form a valid contract. This means the acceptance should match exactly with the terms of the offer without any modifications.
Step 2: Applying the principle to the facts. 'A' offered to sell his motorcycle to 'B' for Rs. 25,000. 'B' replied that he would buy it for Rs. 24,000. This is not acceptance—it is a counter-offer because it changes the terms of the original offer.
Step 3: Legal effect of a counter-offer. A counter-offer has the effect of rejecting the original offer. Once the original offer is rejected, the offeror ('A') is no longer bound to sell the motorcycle at the original terms.
Step 4: Conclusion based on the situation. Since no valid acceptance took place, no contract was formed between 'A' and 'B'. Without a contract, there can be no damages for breach. Therefore, 'B' cannot claim any damages from 'A'.
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Question: 3

Principle: Assault is causing bodily injury to another person by use of physical force.
Facts: Rustum, while entering into a compartment of a train, raised his fist in anger towards a person Sheetal, just in front of him in the row, to get way to enter into the train first, but did not hit him. Rustum has:

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Always focus on the exact legal definition provided in the principle—if it requires injury, the absence of injury means the offence is not made out.
Updated On: Aug 14, 2025
  • insulted Sheetal
  • rightly showed his anger
  • not committed an assault on Sheetal
  • committed an assault on Sheetal
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the principle. Assault in legal terms requires the use of physical force that causes bodily injury. Mere gestures, words, or expressions of anger without actual harmful physical contact do not constitute assault under the given definition.
Step 2: Applying the facts. Rustum raised his fist in anger, which is an aggressive gesture. However, he did not physically hit Sheetal, and thus there was no bodily injury caused.
Step 3: Importance of the requirement for bodily injury. The principle here specifically ties assault to the infliction of bodily injury, not just the threat of it. Since no physical injury occurred, the act does not satisfy the given legal definition.
Step 4: Conclusion. Even though Rustum’s action may have been impolite or intimidating, it does not meet the legal definition of assault under this principle. Hence, the correct answer is that Rustum has not committed an assault on Sheetal.
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Question: 4

Principle: When a person falsifies something with the intent to deceive another person or entity, it is forgery and is a criminal act. Changing or adding the signature on a document, deleting it, using or possessing the falsified writing is also considered forgery. In the case of writing/painting to fall under the definition, the material included must have been fabricated or altered significantly in order to represent something it is actually not.
Facts: David made a living traveling from city to city, selling paintings that he claimed were done by great artists. Since the artists’ signatures were in place, many people fell for them and purchased the paintings. One of these artists saw three of his alleged paintings in a City gallery containing his name. He knew these were not his works and he complained to the police. Police traced David and initiated legal proceedings. Is David guilty of any offence?

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Forgery requires proof of intent to deceive; physical alteration of the main object is not always necessary if a signature or representation is falsified to mislead.
Updated On: Aug 14, 2025
  • David is guilty of forgery as the addition of the signature was with an intention to make people believe that those were the paintings of the great artists.
  • There is no point in taking legal action against David as the signature has not done any alteration to the art work.
  • David is not guilty of any offence as he was selling the art pieces for his living.
  • Those who buy the art pieces from David ought to have been careful in checking it and ensuring that they were originals before purchasing it.
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the principle. The legal definition of forgery here focuses on falsification done with the intent to deceive. This includes adding signatures or markings that make the work appear to be from a different, genuine source. It does not require that the physical artwork itself be altered beyond the falsifying act; the deception is sufficient.
Step 2: Applying the facts. David sold paintings while claiming they were made by great artists. The paintings bore the signatures of these artists, which created a false representation of authenticity. Even if David did not paint them himself, selling them with these forged signatures amounts to knowingly using falsified material.
Step 3: Evaluating the intent. The presence of the false signatures and David’s act of selling them as originals show clear intent to deceive buyers into believing they were purchasing works of famous artists. This matches the core element of forgery—intentional deception.
Step 4: Addressing incorrect options.
- Option (b) is wrong because the act of adding a false signature is itself material alteration for purposes of forgery law.
- Option (c) is wrong because the fact that David was earning a living from it does not excuse criminal conduct.
- Option (d) is wrong because buyer negligence does not remove criminal liability from the seller in a case of intentional forgery.
Step 5: Conclusion. Since David knowingly used falsified signatures to pass off paintings as works of famous artists, he committed forgery under the principle given.
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Question: 5

Principle: A contract would be invalid and unlawful, if the contract is for an immoral or illegal purpose.
Facts: P was a young and helpless widow, living on the pavement. R, a neighbour, gave her a house, registered in her name, on the condition that she should allow R to keep his smuggled goods and drugs in her house. After the registration was done, according to the condition in the contract, R’s agents went to keep some packets in her house, she refused. R told her the condition under which the house was given to her. She still refused. Is P justified in her action?

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Contracts with illegal or immoral objects are void and cannot be enforced in law, regardless of the consent of the parties.
Updated On: Aug 14, 2025
  • P is not justified as she did not have the right to deny R's request.
  • R can take back the house by cancelling the transfer deed.
  • P is right as she did not like smuggled goods to be kept in her house.
  • As R was making the contract for illegal activities, P’s stand is valid in law.
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The Correct Option is D

Solution and Explanation

Step 1: Understanding the principle. A valid contract must have a lawful object and purpose. If the contract’s object or consideration is illegal or immoral, it becomes void and unenforceable in law.
Step 2: Applying the facts. R gave P a house on the condition that she would allow smuggled goods and drugs to be stored in it. The act of smuggling and storing illegal drugs is a criminal offence and is clearly an unlawful purpose.
Step 3: Legal consequence. Since the purpose of the contract was illegal, the contract is void ab initio (invalid from the very beginning). Any promise or condition based on such an illegal object cannot be enforced in court.
Step 4: Justification for P’s refusal. Even though P initially accepted the house, she is under no legal obligation to fulfill an illegal term of the contract. The law will not compel performance of a condition that promotes illegal activity.
Step 5: Conclusion. P’s stand is valid in law because the underlying agreement was for an unlawful purpose, making the contract void.
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Question: 6

Principle: Negligence is actionable in law. In simple terms, negligence is the failure to take proper care over something.
Facts: A doctor conducted a hysterectomy sincerely on B and left a small cotton swab inside the abdomen. As a consequence of which B developed medical problems and had to undergo another surgery. Is A liable?

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In medical negligence cases, even sincere effort does not excuse failure to meet the standard of care expected from a professional.
Updated On: Aug 14, 2025
  • Liability for negligence does not arise here as A performed the operation sincerely.
  • A is liable for the negligence as he failed to take proper care during the surgery.
  • A is not liable as he did not foresee any consequence at the time of surgery.
  • As only a small swab was left in the abdomen, there was no negligence.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding negligence in law. Negligence occurs when a person fails to exercise the care that a reasonably prudent person would take under similar circumstances, leading to harm or injury to another. In professional contexts, such as medicine, the standard of care is judged by the skill and diligence expected from an average practitioner in that field.
Step 2: Applying the facts. Here, the doctor left a cotton swab inside the patient’s abdomen during surgery. This is a clear case of not exercising due care and attention. Such an oversight is considered a breach of the duty of care owed to the patient.
Step 3: Foreseeability and standard of care. A reasonably competent surgeon is expected to ensure that no surgical instruments or materials are left inside a patient’s body after an operation. This is a basic precaution in post-operative protocols.
Step 4: Causation. The cotton swab caused medical problems for the patient, requiring another surgery. There is a direct causal link between the doctor’s negligent act and the harm suffered.
Step 5: Conclusion. Since the injury resulted from a preventable error, A is liable in negligence for failing to take proper care during the surgery.
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Question: 7

Principle: In criminal law, misappropriation is the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose. Embezzlement is misappropriation when the funds involved have been lawfully entrusted to the embezzler. Theft is the illegal taking of another person's property or services without that person's permission or consent, with the intent to deprive the rightful owner of it.
Facts: A went for swimming at the Municipal Swimming Pool. A handed over all his valuables, including some cash, to X, the guard on duty for safe custody, as notified by the Municipality. After swimming for an hour, A came out and searched for X. He found another guard on duty and that guard informed A that X had gone home after completing his shift and did not hand over anything to be given to A. A registered a complaint with the police. X was traced but he told the police that he sold all the valuables and the entire cash was used for drinking liquor. What offence, if any, was/ were committed by X?

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If property is lawfully entrusted and then dishonestly converted for personal use, it is embezzlement, which is a form of criminal misappropriation—not theft.
Updated On: Aug 14, 2025
  • If at all X is liable, it is for criminal misappropriation only.
  • X is liable for criminal misappropriation and embezzlement.
  • X is not guilty of criminal misappropriation as he did not make any personal gain out of those items with him.
  • X is liable for theft as he took A’s property without X’s permission.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the principle. Criminal misappropriation occurs when someone uses another person’s property dishonestly for their own purposes without authorization. Embezzlement is a form of criminal misappropriation in which the property has been lawfully entrusted to the person, but the person then dishonestly converts it to their own use. Theft, by contrast, involves taking property without permission at the outset.
Step 2: Applying the facts. A lawfully entrusted his valuables to X, the guard, for safekeeping. This means that X had legal possession at the beginning. However, instead of returning them, X sold the valuables and used the money for his own purposes.
Step 3: Why this is embezzlement. Because X had lawful possession of the property but dishonestly misused it for his own benefit, the offence fits the definition of embezzlement.
Step 4: Why this is also criminal misappropriation. The act of selling and using the proceeds for personal consumption (drinking liquor) shows dishonest conversion of another’s property, which is criminal misappropriation.
Step 5: Why it is not theft. Theft requires that the initial taking be without consent. Here, the initial handing over of the property was voluntary for safekeeping, so the essential element of theft is missing.
Step 6: Conclusion. X is liable both for criminal misappropriation and for embezzlement because he was entrusted with the valuables and used them dishonestly for his own benefit.
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Question: 8

Principle: An offer made by one party when accepted by another makes it a contract.
Transactions: 1. P offered to sell his house for Rs. 20 lakhs to R; R told P that he was interested to buy a house for 15 lakhs only.
2. C was looking for a house for not more than 25 lakhs; P informed C that his house was available for 20 lakhs.
3. K wanted to buy some old furniture; L told K that he would sell his furniture for Rs. 10,000.
4. R advertised to sell his old car for a price of Rs. 3 lakhs; S found the advertisement and offered to buy it for Rs. 2 lakhs 50 thousand; R agrees to sell it to S.
Which among the above is actually a contract?

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Remember: A valid contract requires offer + absolute acceptance. Any counter-offer cancels the original offer.
Updated On: Aug 14, 2025
  • Situation 4 only is a contract
  • Situations 2 and 4 are contracts
  • Situations 1 and 2 are contracts
  • Situation 3 only is a contract
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the principle. For a contract to exist, there must be an offer and an absolute acceptance of that offer. Conditional acceptance or negotiation does not create a binding contract.
Step 2: Analyse each situation.
- Situation 1: R’s reply changes the price from Rs. 20 lakhs to Rs. 15 lakhs. This is a counter-offer, not an acceptance, so no contract is formed.
- Situation 2: P’s statement that his house is available for 20 lakhs is merely an invitation to offer, not a concluded contract. No acceptance is shown from C.
- Situation 3: L’s statement about selling furniture is only an offer, but the facts do not mention any acceptance by K. No contract is formed.
- Situation 4: R advertised his car for Rs. 3 lakhs. S offered Rs. 2.5 lakhs and R accepted. This acceptance concludes the agreement, forming a valid contract.
Step 3: Conclusion. Only Situation 4 meets the principle’s requirement for offer and acceptance, so it is the only valid contract.
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Question: 9

Principle: When a person consented to an act to be done by another, he cannot claim any damages resulting from doing that act, provided the act done is the same for which consent is given.
Facts: 'P' submitted a written consent to a surgeon 'S' for undergoing a surgical operation for removal of appendicitis. The surgeon while doing surgery also removed the gall bladder of 'P'.

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In medical law, consent is procedure-specific. Performing additional operations without explicit consent can lead to liability.
Updated On: Aug 14, 2025
  • 'P' is required to pay expenses for surgery for Appendicitis but not for Gall Bladder
  • 'P' can claim damages from 'S'
  • 'P' is not bound to pay expenses of the surgery
  • 'P' cannot claim damages from 'S'
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the principle. Consent in law protects the actor from liability only if the act performed is the same act for which consent was given. Any act beyond the scope of that consent can attract liability.
Step 2: Applying the facts. P gave written consent for removal of appendicitis. This was the only act authorized. The removal of the gall bladder was not part of the consent and constitutes a separate medical procedure.
Step 3: Legal effect. Since the removal of the gall bladder was done without consent, it falls outside the scope of protection provided by the consent principle. This makes S liable for damages for the unauthorized procedure, regardless of his intention or medical reasoning.
Step 4: Conclusion. P can claim damages from S for the removal of the gall bladder because consent was not given for this act. The principle protects only the act for which consent was given, and nothing beyond that.
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Question: 10

Principle: A master shall be liable for the fraudulent acts of his servants committed in the course of employment. However, the master and other third parties must exercise reasonable care in this regard.
Facts: Rahul was a door-to-door salesman with United Manufacturing Company (the Company). The Company was manufacturing water purifiers. Rahul, along with the Company’s products, used to carry water purifiers manufactured by his cousin in a local industrial estate. He used to sell the local product at a lower rate giving the impression to buyers that he was offering a discount on the Company’s product. The Company management detected the fraudulent activity of Rahul and dismissed him from service. Rahul still continued to carry on with his activity of selling the local product pretending that he was still a salesman of the Company. Several customers got cheated in this process. The fraud was noticed by the Company when the customers began to complain about the product. The customers demanded the Company to compensate their loss.

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Employers should promptly inform the public when an employee with customer contact is dismissed for misconduct to avoid continued liability.
Updated On: Aug 14, 2025
  • The Company is not liable as Rahul was dismissed by the Company.
  • The Company is liable to the customers who purchased the local product from Rahul only till he remained as a salesman of the Company.
  • The liability rests with the local manufacturer as it was a defective product.
  • The Company is liable to compensate all the customers as it did not inform the public about Rahul’s fraudulent conduct and the subsequent dismissal.
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The Correct Option is D

Solution and Explanation

Step 1: Understanding the principle. An employer (master) is liable for wrongful acts committed by employees (servants) if those acts occur in the course of employment. Additionally, the master must take reasonable steps to prevent foreseeable harm to third parties, even after employment ends, if the risk of deception continues.
Step 2: Applying the facts. Rahul was dismissed for fraudulent activities, but the Company failed to inform the public that he was no longer their salesman. This omission allowed Rahul to continue misrepresenting himself as a Company employee and deceiving customers.
Step 3: Reasonable care obligation. The Company’s failure to issue a public notice created a situation where customers could reasonably believe Rahul was still an authorized salesman. This breach of duty made the fraud foreseeable even after dismissal.
Step 4: Conclusion. Because the Company’s negligence in warning the public contributed to the harm, it is liable to compensate all customers who suffered losses, even though Rahul was no longer employed.
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Question: 11

Principle: Ownership in property consists of the right to possess, right to use, right to alienate and right to exclude others. Sale is complete when property gets transferred from the seller to the buyer on sale.
Facts: 'A' sold his car to 'B'. After this, 'B' requested 'A' to keep the car in his care on behalf of 'B' for one month. 'A' agreed.

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Ownership transfer is the key moment in sale completion; possession can remain with the seller by mutual agreement without affecting ownership rights.
Updated On: Aug 14, 2025
  • Sale will be completed when 'B' will take the delivery of the car.
  • Sale of car is complete.
  • Sale of car is not complete.
  • Sale will be automatically completed after the expiry of one month.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the principle. The sale of goods is complete when ownership (title) passes from the seller to the buyer, regardless of whether the physical possession has been transferred immediately.
Step 2: Applying the facts. 'A' sold the car to 'B'. This means the ownership rights passed to 'B' at the time of sale. The fact that 'B' requested 'A' to keep the car for a month is only an arrangement for custody, not a delay in transfer of ownership.
Step 3: Distinguishing ownership and possession. Possession is the physical control over the object, while ownership is the legal right over it. Here, ownership passed immediately upon the sale, while possession remained temporarily with 'A' at 'B’s' request.
Step 4: Conclusion. Since ownership was transferred at the moment of sale, the sale was complete even though possession remained with 'A'.
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Question: 12

Principle: An agreement, the terms of which are not certain, or capable of being made certain, is void.
Facts: Sunder agreed to take Bhola’s penthouse on rent for three years at the rate of rupees 12,00,000/- per annum provided the house was to be as to thorough repairs and the living rooms were decorated according to contemporary style.

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Contracts must avoid subjective or ambiguous terms; if needed, use measurable standards or attach detailed specifications.
Updated On: Aug 14, 2025
  • There is a valid contract because all the terms of contract are certain and not vague as the rents fixed by both of them and the term ‘present style’ only can be interpreted to mean the latest style.
  • There is no valid contract because it has vague and uncertain terms, as the term ‘present style’ may mean one thing to Sunder and another to Bhola.
  • It is voidable contract at the option of Bhola.
  • There is a valid contract because there is an offer from Sunder and acceptance from Bhola.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the principle. For a contract to be valid, all essential terms must be clear and definite, or at least capable of being made certain without ambiguity. If any term is vague or subjective without an objective standard, the agreement becomes void.
Step 2: Applying the facts. In this case, the rent amount and duration are certain. However, the term “decorated according to contemporary style” is vague because “contemporary style” is open to interpretation and may differ from person to person.
Step 3: Legal consequence. Since the style requirement cannot be objectively determined without further clarification, this creates uncertainty about the performance obligations under the contract. As per the principle, such uncertainty renders the contract void.
Step 4: Conclusion. The contract is void due to uncertainty in the decoration clause, making it impossible to ensure mutual understanding and enforceability.
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Question: 13

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 workmen 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’?

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Only disputes directly related to employment or conditions of labour fall under the Industrial Disputes Act definition. Personal or unrelated matters are excluded.
Updated On: Aug 14, 2025
  • Yes, because there is some difference of opinion it would be an industrial dispute.
  • No, as declaring holidays is a prerogative of the employer. So no industrial dispute.
  • As the difference of opinion between the employees and employer is on declaration of holiday it amounts to an issue connected with employment or with the terms of employment and hence, an industrial dispute.
  • No, as Lunar eclipse is unconnected with employment.
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The Correct Option is D

Solution and Explanation

Step 1: Understanding the principle. An industrial dispute must be directly connected with employment, non-employment, the terms of employment, or the conditions of labour. Matters unrelated to work or employment terms do not qualify.
Step 2: Applying the facts. Here, employees requested half a day leave for celebrating a lunar eclipse — a personal and cultural activity unrelated to the nature of their employment or working conditions.
Step 3: Legal consequence. Since the request is not about wages, working hours, job security, workplace safety, or any other employment-related term, it falls outside the scope of an “industrial dispute” as defined in the Act.
Step 4: Conclusion. The refusal to grant leave for a lunar eclipse celebration is not an industrial dispute because it has no connection with employment or the conditions of labour.
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Question: 14

Principle: According to law, a person who finds goods belonging to another and then takes them into his custody, is subject to the same responsibility as a bailee. A bailee is a person or party to whom goods are delivered for a purpose, such as custody or repair, without transfer of ownership. The finder of the goods legally can sell the goods found by him under certain circumstances including the situation that the owner refuses to pay the lawful charges of the finder.
Facts: P, a college student, while coming out of a cricket stadium found a necklace, studded with apparently precious diamonds. P kept it for two days thinking that the owner would notify it in a local newspaper. Since he did not notice any such notification, P published a small classified advertisement in a local newspaper. In two days’ time, P was contacted by a film actor claiming that it was her necklace and requested P to return it to her. P told her that she should compensate him for the advertisement charges then only he would return it otherwise he will sell it and make good his expenses. The film star told P that she had advertised in a national newspaper about her lost necklace which was lost somewhere in the cricket stadium. The advertisement was published for three consecutive days incurring a large expenditure for her. Mentioning all this, she refuses to pay P and claims the necklace back. Which among the following is the most appropriate answer in this?

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A finder of goods has the right to recover reasonable expenses for preserving the goods or locating the owner before returning them.
Updated On: Aug 14, 2025
  • The film star was right in refusing P, as she did not offer any reward for anyone who would return the necklace.
  • As the film star had notified in the newspaper, P ought to have read it and contacted her instead of publishing another notification. So he cannot claim any compensation.
  • As it was wrong on the part of P to bargain over a property belonging to a celebrity and he should have accepted some gift which might have been given by the film star and returned the necklace instead of threatening her that he would sell it.
  • P was requesting the film star for the actual expenditure incurred by him before returning the necklace. This request is legally sustainable.
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The Correct Option is D

Solution and Explanation

Step 1: Understanding the principle. A finder of goods is treated as a bailee, which means he has certain duties (such as taking reasonable care of the goods) and rights (including the right to be compensated for expenses incurred in protecting or preserving the goods). If the owner refuses to pay lawful charges, the finder can even sell the goods under specific legal provisions.
Step 2: Applying the facts. P took custody of the necklace and attempted to trace the owner by publishing an advertisement in a local newspaper. This was a reasonable action as per the duties of a bailee to locate the true owner. The expense of publishing this advertisement is a legitimate charge incurred while discharging his legal duty.
Step 3: Right to compensation. The principle entitles P to recover such reasonable expenses from the owner before handing over the goods. The refusal of the film star to pay these charges does not remove P’s legal right to be compensated for them.
Step 4: Conclusion. Since P’s demand is limited to actual, reasonable expenses for finding the owner, his request is legally valid. The refusal of the owner to pay makes P’s stance sustainable under the law relating to the rights of a finder of goods.
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Question: 15

Principle: When a person makes such a statement which lowers the other person's reputation in the estimation of other persons, he is liable for committing defamation.
Facts: 'A' writes a letter to 'B' in which he uses abusive language against 'B' and also states that 'B' is a dishonest person. 'A' put the letter in a sealed envelope and delivered it to 'B'.

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In defamation law, communication to a third party is a key requirement — telling the person directly, without others knowing, does not amount to defamation.
Updated On: Aug 14, 2025
  • 'A' has not committed defamation
  • 'A' has committed a moral wrong
  • 'A' has not committed moral wrong
  • 'A' has committed defamation
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The Correct Option is A

Solution and Explanation

Defamation requires that the defamatory statement must be communicated to someone other than the person defamed.
The principle states that a statement must lower a person’s reputation in the estimation of "other persons."
If the statement is only communicated privately to the person concerned, without being shared with any third party, it does not damage reputation in the eyes of others.
In this case, 'A' delivered the letter in a sealed envelope directly to 'B', meaning no other person was made aware of its contents.
Since there is no publication to a third party, the essential element of defamation is missing.
However, while 'A' has not committed defamation, the act could still be morally wrong due to abusive language, but that is outside the scope of the given principle.
Thus, applying only the principle provided, 'A' has not committed defamation.
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Question: 16

Principle: Penal laws provide that whoever voluntarily has carnal intercourse against the order of nature with any man or woman, shall be punished for rape.
Facts: A Police Officer found a man engaged in carnal intercourse with an animal. The Police Officer arrested the man and produced him before the Court.

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When solving principle–fact questions, apply the principle strictly without adding outside knowledge. If the facts fall outside the given definition, the offence under that principle is not made out.
Updated On: Aug 14, 2025
  • Court will not punish the man for rape.
  • Court will punish the police officer.
  • Court will not punish the police officer.
  • Court will punish the man for rape.
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The Correct Option is A

Solution and Explanation

The given principle states that rape, as per the provided rule, is defined as carnal intercourse against the order of nature with any man or woman.
Here, the act involved a man and an animal — which means the other party was not a human being (neither man nor woman).
Since the principle strictly limits the scope to acts involving humans, the situation described does not fall within the provided definition of rape.
Although such an act may constitute a separate offence under laws dealing with bestiality or cruelty to animals, it is outside the definition provided in this question.
The role of the Police Officer in arresting the man is lawful as part of maintaining law and order, and there is no provision in the given principle to punish the police officer.
Therefore, the Court, applying only the given principle, will not punish the man for rape, since one essential requirement — involvement of a human — is missing.
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Question: 17

Principle: If a party to a contract agrees to it under undue influence of any other party then the party under the undue influence may refuse to perform in accordance with the agreement.
Facts: A, a rich youngster became a member of a religious group and soon he was appointed by P, the head of the group, as his personal secretary. As per the rules of the group, all officials and staff of the group were supposed to stay in the group’s official premises itself. Some days later, A was asked by P to execute a Gift deed in favour of P, in which it was mentioned that all immovable properties in his name are being gifted to P. A was unwilling to execute the deed, but he was forcefully restrained by P and his bodyguards in P’s office and made A sign the gift deed. Soon after this A left the group and refused to hand over the property as agreed to in the gift deed. Is A’s action valid?

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Whenever consent is not given freely due to pressure, threat, or dominance of position, the agreement is voidable for undue influence. Always check if a real choice existed for the influenced party.
Updated On: Aug 14, 2025
  • It is illegal for religious groups acquire property from its members.
  • As Gift is also a contract, the consent of A was not obtained by P while executing the deed.
  • As the gift deed was executed by A, he cannot refuse.
  • A executed the deed, under compulsion and undue influence, and was right in withdrawing from the contract.
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The Correct Option is D

Solution and Explanation

Undue influence occurs when one party uses a position of power over the other to obtain an unfair advantage in a contract.
According to the principle, if an agreement is made under undue influence, the influenced party has the right to refuse to perform the contract.
In the facts given, A was in a subordinate position to P within the religious group, which already created a relationship where influence could be exercised.
The demand to gift away all immovable property to P was highly unreasonable and unfair, which raises suspicion of improper pressure.
Moreover, A was not only influenced but was physically restrained and coerced into signing the deed — making the lack of free consent very clear.
Consent is a fundamental requirement for the validity of a contract, and when it is obtained through undue influence or force, the contract becomes voidable at the option of the influenced party.
Therefore, A is fully within his rights to refuse performance and withdraw from the contract.
Option (d) correctly applies the principle to the facts, making it the right answer.
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Question: 18

Principle: Nothing is an offence which is done in the exercise of the right of private defence.
Facts: 'A', under the influence of madness, attempts to kill 'B'. 'B' to save his life kills 'A'.

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Private defence protects you from criminal liability if your actions are necessary and proportionate to avert immediate danger, regardless of the attacker's mental condition.
Updated On: Aug 14, 2025
  • 'B' has not committed any offence.
  • 'B' has committed an offence.
  • 'A' has not committed an offence because he was mad.
  • 'A' has committed the offence of attempt to murder.
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The Correct Option is A

Solution and Explanation

The principle clearly states that any act done in the exercise of the right of private defence is not an offence.
Private defence allows a person to protect their body and life from immediate harm, even if it requires causing harm to the aggressor.
In this case, B was facing a life-threatening attack from A, who was attempting to kill him.
The fact that A was acting under madness does not remove the threat to B’s life — the danger was real and immediate.
Criminal law focuses on the right to protect oneself in the moment, not on the mental state of the attacker, when assessing the victim’s right of defence.
Therefore, B’s act of killing A was justified under the principle of private defence and is not considered a criminal offence.
The focus is on the necessity of the action to prevent death or grievous injury, and here that necessity clearly existed.
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Question: 19

Principle: When a person falsifies something with the intent to deceive another person or entity it is forgery and is a criminal act. Changing or adding the signature on a document, deleting it, using or possessing the false writing is also considered forgery. In the case of writing to fall under the definition, the material included must have been fabricated or altered significantly in order to represent something it is actually not.
Facts: John was a publisher of ancient books and papers. In one of his books on the World Wars, he gave photographs of some letters written by famous historical personalities. A researcher in history noted that in the pictures of some of the letters printed in the book, John had added some words or sentences in his own handwriting to give completeness to the sentences, so that the readers would get a clear picture of the writer’s intention. The researcher challenges the originality of those pictures and claims that the book containing the forged letters should be banned. Examine the validity of the researcher’s demand.

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In forgery questions, always check whether there is (1) a significant alteration, and (2) an intent to deceive. Both must be present for forgery to exist.
Updated On: Aug 14, 2025
  • As forgery amounts to adding or deleting anything from an original document, the demand of the researcher is valid.
  • The additions were made to give clarity to the original document and did not in any sense change the contents of the documents and hence there is no forgery as alleged by the researcher.
  • The additions in the letters were made by the publisher in his own handwriting would have made material alteration to the original meaning and hence amounted to forgery.
  • Allowing forged publications to be circulated among the public is as good as committing fraud on the public, so the publication should be banned.
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The Correct Option is B

Solution and Explanation

Forgery, as per the given principle, requires a significant alteration or fabrication of a document in such a way that it misrepresents the original truth with the intent to deceive.
Minor additions or clarifications that do not alter the essential meaning of the content do not qualify as forgery under this definition.
In the facts, John added certain words or sentences in his own handwriting to make incomplete sentences clearer for readers.
The additions were not made to change historical facts or mislead readers about the real meaning of the letters but simply to enhance understanding.
The intent behind the act is crucial in forgery — here, the intent was not to deceive but to provide clarity.
Since there was no fabrication of facts, no significant misrepresentation, and no intention to commit fraud, this does not meet the legal threshold for forgery.
Thus, the researcher’s claim does not hold merit and banning the book is not justified under the given principle.
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Question: 20

Principle: When a person who has made a promise to another person to do something does not fulfill his promise, the other person becomes entitled to receive, from the person who did not fulfill his promise, compensation in the form of money.
Facts: ‘X’ made a promise to ‘Y’ to repair his car engine. ‘Y’ made the payment for repair. After the repair, ‘Y’ went for a drive in the same car. While driving the car, ‘Y’ met with an accident due to bursting of a tyre.

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For contractual compensation, always check two things: (1) Was there a breach of the promised work? (2) Did the damage directly result from that breach? If either is missing, compensation is not payable.
Updated On: Aug 14, 2025
  • ‘X’ will be entitled to receive compensation from ‘Y’ in the form of money.
  • ‘X’ will not be entitled to receive compensation.
  • ‘Y’ will be entitled to receive compensation from ‘X’ in the form of money.
  • ‘Y’ will not be entitled to receive compensation from ‘X’.
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The Correct Option is D

Solution and Explanation

The principle makes it clear that compensation is payable only if there is a breach of promise or contract.
In this case, X promised to repair Y’s car engine, and the facts do not state that X failed to do so — the repair of the engine was completed.
The accident occurred because of the bursting of a tyre, which has no connection to the work X agreed to perform.
Since the accident was unrelated to the engine repair, there is no causal link between X’s actions and the harm suffered by Y.
For compensation to be granted, the damage must be the direct result of the breach of promise.
Here, there was no breach, as X fulfilled his contractual obligation.
Therefore, under the given principle, Y has no legal right to claim compensation from X for the accident.
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Question: 21

Principle: Section 34 of Indian Penal Code provides that “When a criminal act is done by several persons in furtherance of the common intention of all, each of such persons is liable for that act in the same manner as if it were done by him alone.”
Facts: Three vagabonds, Sanju, Dilbag and Sushil decided to commit burglary. In the night, Sushil opened the lock and they broke into a rich man’s house when the entire family was on a pilgrimage. Sanju had gone to that house earlier in connection with some cleaning job. There was only a servant lady in the house. Hearing some sounds from the master bedroom, the servant switched on the lights and went up to the room from where she heard the sound. Noticing that the servant was going to cry for help, Sanju grabbed her and covered her mouth with his hands and dragged her into the nearby room. The other two were collecting whatever they could from the room. When they were ready to go out of the house, they looked for Sanju and found him committing rape on the servant. They all left the house and the servant reported the matter to the police and identified Sanju. Subsequently, all three were arrested in connection with the offences of housebreaking, burglary and rape. Identify the legal liability of the three.

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Section 34 IPC applies only when the crime is committed in furtherance of the *common intention* of all participants. If a participant commits an independent offence outside the agreed plan, others are not liable for that separate act.
Updated On: Aug 14, 2025
  • All three are liable for all the offences as there was common intention to commit the crimes.
  • Only Dilbag and Sushil are liable for burglary in looting the house, and all three will be liable for housebreaking and rape as they did not stop Sanju from committing the offence and hence were accomplice to the offence.
  • Only Sanju will be liable for rape as he was the one who actually committed the offence.
  • Sanju will be liable only for housebreaking and rape as he did not participate in the burglary.
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The Correct Option is C

Solution and Explanation

Section 34 IPC makes all participants liable for a criminal act if it is done in furtherance of the *common intention* of all.
Here, the common intention among Sanju, Dilbag, and Sushil was to commit burglary and housebreaking — not rape.
The offence of rape committed by Sanju was not part of the original plan and had no connection to the common intention shared by all three.
For Section 34 to apply to rape, it must be shown that the other two either shared the intention to commit rape or assisted/encouraged it in some way, but the facts show no such participation or encouragement.
Therefore:
- All three are liable for burglary and housebreaking, because those crimes were committed together as per their plan.
- Only Sanju will be liable for rape, because it was a separate, independent criminal act outside the agreed plan.
- Dilbag and Sushil cannot be held vicariously liable for rape under Section 34 since they neither participated in nor intended that crime.
Thus, option (c) correctly reflects the legal liability in this case.
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Question: 22

Principle: According to law, a person is deemed to have attained the age of majority when he completes the age of 18 years, except in the case of a person where a guardian of a minor’s person or property has been appointed under the Guardians and Wards Act, 1890 or where the superintendence of a minor’s property is assumed by a Court of Wards. Indian law expressly forbids a minor from entering into a contract. Hence, any contract entered into by a minor is void-ab-initio regardless of whether the other party was aware of his minority or not. Further, although a minor is not competent to contract, nothing in the Contract Act prevents him from making the other party bound to the minor.
Facts: Lal executed a promissory note in favour of Gurudutt, aged 16 years, stating that he would pay Gurudutt a sum of Rs. 2 Lakhs when he attains the age of majority. On attaining the age of 18, Gurudutt demanded the amount from Lal, who refused to pay. Gurudutt wants to take legal action against Lal. Identify the most appropriate legal position from the following:

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A minor cannot be bound by contractual obligations, but can always enforce a legal benefit conferred upon him — especially in cases of gifts, settlements, or promissory notes.
Updated On: Aug 14, 2025
  • Lal was not aware of the fact that Gurudutt was a minor.
  • Gurudutt should not have entered into a contract with Lal when he was a minor.
  • Lal argues that as per the Guardians and Wards Act, 1890, Gurudutt can claim the money only after he attains the age of 21.
  • A promissory note duly executed in favour of a minor is not void and can be sued upon by him, because he though incompetent to contract, may yet accept a benefit.
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The Correct Option is D

Solution and Explanation

The principle makes it clear that a minor is not competent to enter into a binding contract — any such agreement is void-ab-initio.
However, the law also states that nothing prevents a minor from enforcing a benefit conferred upon him by the other party.
This means that while a minor cannot be bound by obligations under a contract, he is legally entitled to claim benefits arising from a validly executed agreement in his favour.
In the facts, Lal executed a promissory note promising to pay Rs. 2 lakhs to Gurudutt once he reached the age of majority.
Here, the note is a unilateral promise made by Lal — there is no reciprocal obligation on Gurudutt’s part that would make it a contract requiring his competence.
Thus, even though Gurudutt was a minor at the time, the promissory note stands valid in his favour, and he can legally sue Lal to recover the amount.
The argument under option (c) about the Guardians and Wards Act does not apply here because there is no evidence that Gurudutt had a court-appointed guardian or that his property was under the Court of Wards.
Therefore, Gurudutt’s claim is valid under the principle that a minor can accept and enforce a legal benefit.
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Question: 23

Principle: Whoever takes away with him any minor less than sixteen years of age if a male, or less than eighteen years of age if a female, out of the custody of parents of such minor without the consent of such parents, is said to commit no offence.
Facts: ‘A’, a man, took away a girl below sixteen years to Mumbai without informing the parents of the girl.

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Always check the exact age limits and conditions under a principle — minor changes in wording can completely change whether an act falls within an offence.
Updated On: Aug 14, 2025
  • ‘A’ committed no offence against the parents of the girl.
  • ‘A’ committed an offence against the girl.
  • ‘A’ committed no offence against the girl as well as her parents.
  • ‘A’ committed an offence against the girl as well as her parents.
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The Correct Option is C

Solution and Explanation

According to the principle, taking away a minor without parental consent constitutes an offence only if the minor is below the stated age limits: under 16 years for males and under 18 years for females.
However, the principle also makes it clear that if the parents’ consent is not obtained but the act is otherwise permitted under law, no offence occurs.
Here, the facts state that ‘A’ took away a girl who was below sixteen years — but the principle, as worded, applies only to situations where taking away constitutes an offence.
Given the way the principle is drafted in the question, the correct interpretation here is that ‘A’ has not committed an offence against either the girl or her parents under the scope of this principle.
Therefore, option (c) is correct — both the girl and her parents are outside the ambit of offence as defined here.
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Question: 24

Principle: Every agreement, of which the object or consideration is opposed to public policy, is void. An agreement which has the tendency to injure public interest or public welfare is one against public policy. What constitutes an injury to public interest or public welfare would depend upon the times and the circumstances.
Facts: ‘A’ promises to obtain for ‘B’ an employment in the public service, and ‘B’ promises to pay rupees 5,00,000/- to ‘A’.

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Agreements to secure public jobs for payment are always void under public policy — the legality is judged by the nature of the object, not the amount of payment.
Updated On: Aug 14, 2025
  • The agreement is void because rupees 5,00,000/- is excessive.
  • The agreement is void, as the object and consideration for it is opposed to public policy.
  • The agreement is valid, as it is a contract between two parties with their free consent.
  • The agreement is valid, as it is with consideration for public service.
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The Correct Option is B

Solution and Explanation

Under the principle, any agreement that tends to harm public interest or public welfare is void as being opposed to public policy.
One example of such agreements is the sale or purchase of public offices or influence over public appointments.
In this case, A promises to obtain public service employment for B in exchange for money.
This directly involves using influence or other means to secure a government job, which undermines the integrity and fairness of public service recruitment.
Such arrangements encourage corruption, nepotism, and unfair practices — all of which are harmful to the public interest.
Therefore, regardless of whether the amount is considered excessive or reasonable, the very object and consideration of this agreement are illegal under public policy principles.
Hence, the agreement is void from the outset, and neither party can enforce it in a court of law.
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Question: 25

Principle: There are legal provisions to give authority to a person to use necessary force against an assailant or wrong-doer for the purpose of protecting one’s own body and property as also another’s body and property when immediate aid from the state machinery is not readily available; and in so doing he is not answerable in law for his deeds.
Facts: X, a rich man was taking his morning walk. Due to the threat of robbers in the locality, he was carrying his pistol also. From the opposite direction, another person was coming with a ferocious looking dog. All of a sudden, the dog which was on a chain held by the owner, started barking at X. The owner of the dog called the dog to be calm. They crossed each other without any problem. But suddenly, the dog started barking again from a distance. X immediately took out his pistol. By seeing the pistol the dog stopped barking and started walking with the owner. However, X shot at the dog which died instantly. The owner of the dog files a complaint against X, which in due course reached the Magistrate Court. X pleads the right of private defence. Decide.

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The right of private defence is strictly limited to situations of imminent danger and must be proportionate to the threat. Once the danger passes, any force used becomes unlawful.
Updated On: Aug 14, 2025
  • The right of private defence is available to persons against assailants or wrong-doers only and a dog does not fall in this category.
  • Shooting a fierce dog is not to be brought under the criminal law. So the case should be dismissed.
  • As there was no guarantee that the dog would not bark again, shooting it was a precautionary measure and hence within the right available to X under law.
  • There was no imminent danger to X as the dog stopped barking and was walking with the owner. Hence, shooting it amounted to excess use of the right of private defence and hence liable for killing the dog.
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The Correct Option is D

Solution and Explanation

The right of private defence can only be exercised when there is a real, immediate threat to one’s body or property, and the defensive act must be proportionate to the danger faced.
In this case, the dog initially barked at X but then calmed down when commanded by its owner.
After the first encounter, the dog barked again from a distance but soon stopped and walked with its owner upon seeing X draw his pistol.
At this point, there was no imminent or continuing threat to X’s safety — the perceived danger had already passed.
Using lethal force after the threat had subsided amounts to exceeding the scope of the right of private defence.
The law does not protect an act of retaliation or punishment after the danger has ended; it only protects necessary actions taken to prevent harm in the moment.
Therefore, X’s shooting of the dog was excessive and outside the boundaries of lawful private defence, making him liable for killing the dog.
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Question: 26

Principle: Where one of the parties to a contract was in a position to dominate the decision of the other party, the contract is enforceable only at the option of the party who was in a position to dominate the decision of the other party.
Facts: A doctor asked his patient to make a payment of rupees Ten Lakh for treatment of his fever. The patient paid an amount of rupees Five Lakh and promised to pay the remaining amount after the treatment. After treatment, the patient recovered from fever. The doctor demanded the remaining amount from the patient. The patient refused to pay.

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Being in a dominating position does not void a contract; it only gives the dominant party the discretion to enforce it. Always check who has that option before deciding enforceability.
Updated On: Aug 14, 2025
  • The contract is enforceable against the doctor.
  • The contract is not enforceable as doctor was in dominating position.
  • The contract is not enforceable without the consent of the patient.
  • The contract is enforceable against the patient by the doctor.
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The Correct Option is D

Solution and Explanation

The principle states that when one party is in a position to dominate the will of the other party, the contract is enforceable only at the option of the party who was in such a dominating position.
A dominating position can arise from relationships of trust, dependency, or authority — for example, a doctor–patient relationship, where the patient may rely heavily on the doctor’s advice.
However, this provision does not automatically make every agreement between such parties void or unenforceable.
It simply gives the party in the dominant position the choice to enforce or not enforce the agreement.
In this case, the doctor treated the patient for fever, and the patient agreed to pay a total of ten lakh rupees, part of which (five lakh) was already paid.
After the treatment was completed and the patient recovered, the doctor was entitled to demand the remaining amount as per the original agreement.
The doctor, being the party in the dominant position, has the right to enforce the agreement against the patient if he chooses to do so.
Therefore, the contract is enforceable against the patient, and option (d) is correct.
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Question: 27

Principle: A violation of a legal right of someone, whether results in a legal injury or not, gives rise to an action in tort for compensation. At the same time, an action by someone, which results in some loss or damage to somebody else is not actionable, if there is no violation of a right of that somebody.
Facts: AB Coaching Centre was a popular CLAT coaching academy with several good trainers. A lot of aspirants used to attend its coaching classes from all over and it was making good profit. This was going on for the past several years. During a session, T, one of the very good and popular trainers of ABCC, had some difference of opinion with the owner of ABCC and left the coaching centre. In August 2016, T started another Entrance Coaching Centre close to ABCC which resulted in a substantial drop in its students and huge financial loss. The owner of ABCC wants to file a case against T for the loss sustained by ABCC. What do you think is the right legal position?

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In tort law, financial loss alone is not enough — there must be a violation of a legal right. Lawful competition is not actionable even if it causes loss to another’s business.
Updated On: Aug 14, 2025
  • T should have consulted ABCC before starting his coaching centre.
  • T started the new coaching centre near ABCC intentionally, and shall be liable to compensate the loss of ABCC.
  • T has not violated any of ABCC’s legal right though they sustain some financial loss, and not legally bound to compensate ABCC.
  • T will be liable to compensate the loss to ABCC.
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The Correct Option is C

Solution and Explanation

The principle clearly distinguishes between actual legal rights and mere economic interests.
For an action in tort to succeed, there must be a violation of a legal right of the claimant — this is true even if there is no measurable financial damage.
Conversely, if a person suffers financial loss without a violation of any of their legal rights, they cannot claim compensation.
In the present case, ABCC had no legal right preventing T from starting another coaching centre, even if it was near ABCC’s location.
Competition in business, as long as it is fair and lawful, does not amount to a violation of legal rights, even if it causes a rival to lose customers and profits.
T was simply exercising his freedom to carry on a lawful trade or profession, which is recognized and protected under law.
While ABCC did suffer economic loss, this was not due to any infringement of their legal rights, but due to lawful competition.
Hence, under the given principle, T is not legally bound to compensate ABCC for the losses.
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Question: 28

Principle: According to the law of trade unions in India, no suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer or member thereof in respect of any act done in contemplation or in furtherance of a trade dispute.
Facts: Soloman, the Secretary of a registered Trade Union took a loan from a Bank for the higher education of his daughter. Soon after completing the course she was married to an NRI Engineer. Soloman did not repay the loan. The Bank demanded the payments from Soloman and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.

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Trade union immunity applies only for actions connected with union activities or disputes — personal acts are outside its scope.
Updated On: Aug 14, 2025
  • As Soloman did not use the loan amount for his use and hence, no action can be initiated against him.
  • The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case no immunity will work.
  • The Bank can recover the loan amount from the Trade Union as Soloman is the Secretary of the Union.
  • The Bank cannot initiate any action against Soloman as he is the Secretary of a Registered Trade Union.
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The Correct Option is B

Solution and Explanation

The principle protects registered trade unions, their officers, and members from civil suits for acts done in contemplation or furtherance of a trade dispute.
However, this immunity applies only to actions connected with trade union activities, not personal matters.
Here, Soloman borrowed the money for his daughter’s higher education — a purely personal purpose, unrelated to the trade union’s functions or disputes.
Since the act was not done in contemplation or furtherance of a trade dispute, the statutory immunity under trade union law does not apply.
Therefore, the Bank is fully entitled to sue Soloman in his personal capacity to recover the loan.
The fact that he is the Secretary of the union is irrelevant in this context.
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Question: 29

Principle: Every agreement, by which any party is restricted absolutely from enforcing his right in respect of any contract, by the usual legal proceedings in the ordinary Tribunals, is void to that extent. The law also provides that nobody can confer jurisdiction to a civil court by an agreement between parties.
Facts: A and B entered into a valid contract for rendering certain services. A clause in the contract was that in case of any dispute arising out of the contract, it shall be referred to for Arbitration only. Is the contract valid?

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An arbitration clause does not violate the principle against restricting legal proceedings — it is a lawful alternative recognized and supported by law.
Updated On: Aug 14, 2025
  • The parties were trying to confer jurisdiction to some authority to decide a dispute and hence the clause would be invalid.
  • Arbitrator cannot be termed as an ordinary Tribunal. Hence, the agreement is void and would be unenforceable.
  • The contract is valid but the clause regarding Arbitration is void.
  • Arbitration is also a valid dispute settlement machinery recognized by law and hence the entire contract is valid.
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The Correct Option is D

Solution and Explanation

The principle invalidates agreements that absolutely restrict a party from approaching ordinary courts, unless the restriction is through a lawful alternative dispute resolution process recognized by law.
Arbitration is a legally recognized method of resolving disputes, governed by the Arbitration and Conciliation Act, 1996 in India.
It allows parties to settle disputes outside the regular court system while still ensuring enforceability of awards through the courts.
In this case, the clause stipulating that disputes will be referred only to arbitration is valid because arbitration is not an illegal restriction — it is an accepted and lawful dispute resolution process.
The rest of the contract remains valid, and the arbitration clause itself is enforceable.
Therefore, the entire agreement, including the arbitration clause, is valid under law.
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Question: 30

Principle: Contract is a written or spoken agreement, with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. Such an agreement is intended to be enforceable by law. A unilateral contract is one in which there is a promise to pay or give other consideration in return for actual performance.
Facts: A Toilet Soap Manufacturing Company in India in order to promote the sale of their product, published an advertisement in all the Newspapers on January 1, 2017 that the Company has kept a model ignition key of an Audi A3 Car. The advertisement also stated that whoever gets the said key before December 31, 2017 from a soap bar will be gifted with the Audi A3 Car. Mr. Martin, a foreigner who came to India as a tourist who was staying in a Hotel found a Key similar to same Car Ignition Key. Mr. Martin brought this matter to the notice of the Hotel Manager. The Manager informed Mr. Martin about the Company’s advertisement on January 1, 2017. Mr. Martin wants to claim the Car. Will he succeed?

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Unilateral offers can be accepted by anyone who performs the stipulated condition, even if they were unaware of the offer initially but learn of it before completing the act.
Updated On: Aug 14, 2025
  • The Hotel Manager who could legally claim the Car as he was the one actually purchased the soap for the use in the Hotel.
  • Mr. Martin obtained the Key before the stipulated date from the Soap Bar. So he is covered by the offer of the Soap Company and can claim the car.
  • No. Actual intention of the Company was to promote the sale of the Soap.
  • No. The Soap Company has not entered into a contract with Mr. Martin as he was not in India on January 1, 2017 when the advertisement was published.
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The Correct Option is B

Solution and Explanation

The advertisement by the Soap Company is an offer to the public at large — specifically a unilateral contract.
In a unilateral contract, the offeror promises to give a reward or benefit in exchange for the performance of a specified act.
Here, the specified act is finding the ignition key in the soap bar before December 31, 2017.
Mr. Martin, although a tourist, found the key within the stipulated time period.
The principle of contract law states that acceptance of such an offer occurs through performance, not by prior communication of intent.
Therefore, Mr. Martin has fulfilled the condition laid down in the offer and is entitled to the reward — the Audi A3 Car — regardless of whether he was in India when the offer was published.
The fact that the hotel purchased the soap does not negate Martin’s performance of the condition.
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Question: 31

Principle: A person is said to do a thing fraudulently, if he does that thing with intent to defraud, but not otherwise.
Facts: ‘A’ occasionally hands over his ATM card to ‘B’ to withdraw money for ‘A’. On one occasion ‘B’ without the knowledge of ‘A’, uses ‘A’s ATM card to find out the balance in ‘A’s account, but does not withdraw any money.

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For fraud to be established, there must be both an act and an intent to deceive for wrongful gain or loss — mere unauthorized access without harm does not amount to fraud.
Updated On: Aug 14, 2025
  • ‘B’ has committed misappropriation.
  • ‘B’ has not committed the act fraudulently.
  • ‘B’ has committed the act fraudulently.
  • ‘B’ has committed breach of faith.
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The Correct Option is B

Solution and Explanation

Fraud requires both an act and the intent to defraud — that is, the intention to cause wrongful loss to another or wrongful gain to oneself.
In this case, B used A’s ATM card without permission to check the account balance.
While this action was unauthorized, it did not involve any withdrawal of funds or attempt to cause financial harm to A.
Since there was no intent to defraud — no plan to gain unfairly or cause loss — the action does not meet the legal definition of fraud.
It may be a breach of trust or a wrongful act in another legal sense, but under the given principle, it is not “fraudulent” conduct.
Therefore, option (b) is correct because the intent element required for fraud is missing.
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Question: 32

Principle: The Constitution of India guarantees certain fundamental rights to its citizens. The Constitution also provides that these rights cannot be taken away by the state even by a law. For violation of this, the person adversely affected by the law may approach the High Court or the Supreme Court for the issuance of an appropriate writ. One of these rights includes the freedom to form associations that implies the right to join an association or not to join such an association.
Facts: Owing to some industrial disturbances created by XATU, one of the several trade unions in AB Chemicals (Pvt) Ltd, the Company issued a circular to all its employees that as far as possible the employees may disassociate with XATU. Navin is an employee of AB Chemicals and the current General Secretary of XATU. Aggrieved by this circular, which affected the fundamental rights of his and other members of the Union, Navin approaches the High Court of the state for a relief. Identify the most reasonable legal position.

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Fundamental rights are generally enforceable against the state — private disputes must be resolved under other branches of law like contract, labour, or tort law.
Updated On: Aug 14, 2025
  • The Company’s circular is illegal and has to be quashed by the Court.
  • Circular issued by a Company amounts to law in the constitutional sense and hence the High Court can issue a writ as pleaded for by Navin.
  • The prohibition against any imposition of restriction against a fundamental right is not applicable to anybody other than the state and hence Navin will not get any relief from the High Court.
  • The circular interferes with the freedom guaranteed by the Constitution and hence the High Court can issue an appropriate writ.
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The Correct Option is C

Solution and Explanation

Fundamental rights, as guaranteed under Part III of the Constitution of India, are enforceable primarily against the state and its instrumentalities, not against private individuals or private entities.
Article 19(1)(c) guarantees the right to form associations or unions, and restrictions on this right can only be imposed by the state under Article 19(4) for specific reasons such as sovereignty, morality, and public order.
In the present case, the circular was issued by a private company, AB Chemicals (Pvt) Ltd., which is not the state or an instrumentality of the state.
Since fundamental rights are not directly enforceable against purely private entities, Navin cannot claim violation of his constitutional right in this context.
Any remedy he seeks would have to be under employment laws or contractual obligations, not under the Constitution’s fundamental rights framework.
Therefore, the High Court cannot issue a writ against the private company on the basis of fundamental rights violation, making option (c) correct.
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Question: 33

Principle: It is a case of fraud where a party to a contract knows or believes a fact to be true, but conceals it actively from the other party with a view to induce that person to enter into the contract.
Facts: While taking a life insurance policy, in reply to questions by the insurance company during the inquiry into his proposal, Zameer deliberately concealed the fact of his medical treatment for a serious ailment, which he had undergone only a few weeks ago.

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In insurance contracts, any material fact affecting risk assessment must be disclosed. Concealment of such facts — even without direct false statements — can amount to fraud.
Updated On: Aug 14, 2025
  • The act of Zameer amounted to innocent misrepresentation.
  • The act of Zameer did not amount to fraud, as disclosing the fact would have resulted in exposure of his privacy.
  • The act of Zameer did not amount to any misrepresentation.
  • The concealment of fact by Zameer amounted to fraud.
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The Correct Option is D

Solution and Explanation

The principle clearly states that if a person knows a fact or believes it to be true but actively hides it from the other party, with the intention of inducing the other party to enter into a contract, it amounts to fraud.
Insurance contracts are contracts of *uberrimae fidei* (utmost good faith), where the proposer is bound to disclose all material facts that could affect the insurer’s decision.
In this case, Zameer had undergone recent medical treatment for a serious ailment, which is undoubtedly a material fact for a life insurance policy.
By deliberately concealing this fact, Zameer misled the insurance company about his actual health condition.
This concealment was not accidental — it was intentional and aimed at ensuring the insurer would proceed with issuing the policy.
Such conduct satisfies the requirement of “active concealment” with the intent to induce the other party, thereby fulfilling the definition of fraud under the principle.
Therefore, Zameer’s act is fraudulent, and the insurer could avoid the contract on this basis.
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Question: 34

Principle: The concept of natural justice is against bias and for the right to a fair hearing. While the term natural justice is often retained as a general concept, it has largely been replaced and extended by the general ‘duty to act fairly’.
Facts: ‘X’, a male employee of a company was dismissed by the employer just on the basis of a complaint by ‘Y’, a female employee of the company that ‘X’ was trying to be too friendly with her and often requested her to accompany him to the canteen.
Is the dismissal of ‘X’ valid?

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Natural justice ensures decisions are made fairly — always check whether the affected party was given a genuine opportunity to be heard before action was taken.
Updated On: Aug 14, 2025
  • Yes, because men are not supposed to behave improperly with women and hence there is no violation of any principles of law.
  • No, because in the modern times this type of behaviour is common.
  • No, because the employer did not give a chance to ‘X’ to explain his side, thereby violated the principles of natural justice.
  • Yes, moral law is antique and therefore, not applicable in modern times, therefore the termination is valid and no violations of the principles of natural justice occurred.
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The Correct Option is C

Solution and Explanation

The principle of natural justice includes two key rules: (1) *Nemo judex in causa sua* — no one should be a judge in their own cause (rule against bias), and (2) *Audi alteram partem* — hear the other side before deciding.
The second rule requires that before any adverse decision such as dismissal is taken, the person affected must be given a reasonable opportunity to present their case.
In this case, the employer dismissed X solely on the basis of a complaint from Y without giving X any chance to explain or defend himself.
This action clearly violates the right to a fair hearing, which is central to the principles of natural justice.
Even if the complaint was serious, the employer was bound to conduct an impartial inquiry and hear X’s version before taking disciplinary action.
Since this was not done, the dismissal is invalid due to breach of natural justice.
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Question: 35

Principle: Under the Employees Compensation Act, 1923, an employer is liable to pay compensation to his workmen for injuries sustained by them by an accident arising out of and in the course of employment.
Facts: M, the Manager of SRK Industries, asked his secretary S to submit a report at the Government Labour Office. S submitted the report as directed. On his way back, S met one of his classmates. The men decided to have a cup of tea together at a roadside restaurant. Some time later, S got a message from his office to report back as it was a long time since he left the office. S rushed back to his office on his motor cycle. On his way back, a truck coming from a side road hit S. He was admitted to a nearby hospital with multiple injuries. He claims compensation under the Employees Compensation Act from his employer. Identify the most appropriate legal position.

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In Employees Compensation cases, always check if the accident has a clear connection with the employment duties and occurred during the employment period. Even small personal breaks may not break this link if the main journey is still work-related.
Updated On: Aug 14, 2025
  • The Employer is not liable as the truck driver was negligent.
  • The Employer is liable to pay compensation as the accident took place arising out of and in the course of employment.
  • The Employer is not liable as he was admitted in a private hospital and not a Government Hospital.
  • The Employer is liable as S had to rush back to the office, because of the message from the office.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Principle
The Employees Compensation Act, 1923, provides that an employer is bound to pay compensation for injuries to a workman if two key conditions are satisfied:
- The injury must have been caused by an accident arising out of the employment.
- The accident must have occurred in the course of employment.
Here, the phrase “arising out of” means that the work or duties assigned to the employee must be a contributing cause to the accident.
The phrase “in the course of” means that the accident must have occurred during the period of employment while the employee was engaged in his work duties or anything incidental to them.
Step 2: Applying the Principle to Facts
In this case, S was given a specific work-related instruction by his employer M — to submit a report to the Government Labour Office.
S carried out this task and was on his way back when he met a friend and took a short tea break.
While this short detour might seem like a deviation, the main journey was still within the framework of his employment duty — he was returning to the office after completing the assigned work.
After receiving the message from his office, S immediately resumed his work-related journey back to the office.
Step 3: Determining Liability
The accident occurred while S was on his way back to the office in direct response to his employer’s message, meaning that his journey was connected to his employment duties.
Under the principle of “notional extension” of employment, even small breaks during official journeys do not break the chain of employment if the employee is still in the course of carrying out employer’s instructions.
Thus, the accident clearly arose out of and was in the course of S’s employment.
Step 4: Eliminating Wrong Options
Option 1 is wrong — the negligence of the truck driver does not remove the employer’s liability under the Act if the accident was employment-related.
Option 3 is irrelevant — the type of hospital (private or government) does not affect liability.
Option 4 is partly true in reasoning but incomplete — the liability arises not just because of the message but because the journey itself was part of employment.
\[ \boxed{\text{Therefore, the employer is liable to pay compensation to S under the Act.}} \]
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