AILET (All India Law Entrance Test) 2018 MCQs Questions with Solutions and Explanations at Doorsteptutor. Com Part 10

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Question 78

Directions: Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:

(1) Consideration is something that moves from the promisor, to the promisor, at the implied or express request of the latter, in return for his promise. The Item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law.

(2) An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.

Factual Situation: Boumville ran a sales promotion whereby if persons sent in 3 chocolate bar wrappers and a postal order for ₹ 100 they would be sent a record. Big Beats owned the copyright in one of the records offered and disputed the right of Boumville to offer the records and sought an injunction to prevent the sale of the records which normally retailed at ₹ 1,000. Under the Copyright Act, retailers are protected from breach of copyright if they gave notice to the copyright holders of the ordinary retail selling price and paid them 6.25 % of this. Boumville gave notice stating the ordinary selling price was ₹ 100 and three chocolate bar wrappers. The issue is whether the chocolate bar wrappers formed part of the consideration?

A. The wrappers were a mere token or condition of sale and not consideration.

B. The wrappers did form part of the consideration for the sale of records despite the fact that they had no intrinsic economic value in themselves.

C. The wrappers did not form part of the consideration for the sale of records as they had no intrinsic economic value in themselves.

D. There was consideration for the sale of records in the form of postal order for ₹ 100.

Question 79

Directions: Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:

(1) Offer is a proposal made by one person to another to do an act or abstain from doing it. The person who makes the offer is known as the promise or offeror and the person to whom an offer is made is known as the promise or the offeree.

(2) A contract comes into being by the acceptance of an offer. When the person to whom the offer is made signifies his consent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.

Factual Situation: Tejas drove his car to a car park named Super Car Park (SCP) . Outside the car park, the prices were displayed and a notice stated cars were parked at the owner՚s risk. An automatic ticket vending machine provided a ticket, a barrier was raised and Tesas parked his car. In small print on the ticket, it was stated that the ticket is issued subject to conditions displayed on the premises. On a pillar opposite to the machine was a notice stating the owners would not be liable for any injuries occurring on their premises. Tejas met with an accident and sought damages from SCP. SCP denied any liability on the basis of the exclusion clause which was mentioned in the notice on the pillar. Whether there is an offer and acceptance of the exclusion clause?

A. There is a valid contract between Tejas and SCP as SCP had taken reasonable steps to bring exclusion clause to Tejas՚s attention at the time of making the contract.

B. The contract was made when Tejas received the ticket and parked his car. The ticket amounted to a contractual document which effectively referred to the terms which were clearly visible on the premises.

C. The machine itself constituted the offer. The acceptance was by putting the money into the machine. The ticket was dispensed after the acceptance took place and therefore the exclusion clause was not incorporated into the contract.

D. The machine itself constituted the offer. The acceptance was by putting the money into the machine and acceptance of the offer mean acceptance of all the terms of the offer and hence SCP is not liable.

Question 80

Directions: Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:

(1) Offer is a proposal made by one person to another to do an act or abstain from doing it. The person who makes the offer is known as the promise or offeror and the person to whom an offer is made is known as the promise or the offeree.

(2) A contract comes into being by the acceptance of an offer. When the person to whom the offer is made signifies his consent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.

Factual Situation: The plaintiffs offered to provide delivery of a machine tool for a price of ₹ 75,535. The delivery of the tool was set for 10 months, with the condition that orders only qualified as accepted once the terms in the quotation were met and prevailed over any of the buyer՚s terms. The buyer responded to the offer with their own terms and conditions, which did not include the ‘price variation clause’ listed in the seller՚s terms. This included a response section which required a signature and to be returned in order to accept the order. The sellers returned this response slip with a cover letter signaling that delivery would be in accordance with their original quotation. The tool was ready for delivery but the buyers could not accept delivery, for which the sellers increased the price which was in line with their initial terms. This was denied by the buyer and an action was brought by the seller to claim the cost of delay and interest. Was a contract made with or without a price variation clause?

A. The buyer՚s order was not an acceptance of the initial offer from the seller but a counter-offer which the sellers had accepted by returning the signature section of the buyer՚s letter and so the contract was completed without the price variation clause and therefore the seller could not increase the cost of the tool.

B. The buyer՚s order was an acceptance of the initial offer from the seller and so the contract was completed with the price variation clause and therefore the seller can increase the cost of the tool.

C. The contract was made with price variation clause due to the condition that orders only qualified as accepted once the terms in the quotation were met and prevailed over any of the buyers՚ terms.

D. The contract between the buyer and seller is not valid as both the parties are not agreeing to the same thing in the same sense.

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