CLAT Common Law Admission Test Solved Paper 2011 – English, Aptitude Part 21

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Problem 7 (Q. Nos. 83 to 187) Rules

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property the age of majority is twenty-one.

B. A minor is not permitted by law to enter a contract. Hence, where a minor enters a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim based on the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit based on such representation.

Facts

Ajay convinces Bandita, a girl aged 18 that she should sell her land to him. Bandita’s mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lac, paid in full and final settlement of the price. Chaaru challenges this transaction claiming that Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus, Ajay is in a difficult situation and has no idea how to recover his money from Bandita.

183. Chaaru is justified in challenging the sale transaction because

(a) Bandita is of unsound mind and is not able to make rational decisions

(b) Though Bandita is eighteen years old she will be treated as a minor, as Chaaru is her guardian

(c) Though Bandita is eighteen years old, she cannot sell the land without the permission of her mother

(d) Though Bandita is eighteen years old she should not be treated like a person who has attained the age of majority

Ans: (b)

184. Ajay can be allowed to recover the money only if he can show that

(a) He was deceived by Bandita who misrepresented her age

(b) He honestly believed that Bandita was empowered under the law to sell the land

(c) He was an honest person who had paid the full price of the land to Bandita

(d) Both (a) and (b)

Ans: (a)

185. To defend the sale, Bandita will need to show that

(a) Bandita has attained the age of majority

(b) Bandita is mature enough to make rational decisions regarding her own affairs

(c) The sale transaction was beneficial to her interest and will enhance her financial status

(d) None of the above

Ans: (a)

186. Which of the following is correct?

(a) Ajay should be allowed to recover the money because even though there is no contract, Bandita and Chaaru should not be allowed to unjustly benefit from Ajay’s money

(b) Ajay should be allowed the possession of the land because Chaaru can always decide to approve the transaction between Ajay and Bandita

(c) Ajay should not be allowed to recover because he induced Bandita, a minor, to sell the land

(d) None of the above

Ans: (c)

187. Which of the following is correct?

(a) If Ajay can recover the money, which will defeat the law framed for protecting the minors against fraudulent persons

(b) If Ajay is not allowed to recover that will cause him injustice as he has not paid off the entire sale price

(c) If Ajay can recover, Chaaru will benefit from both the money and the land

(d) None of the above

Ans: (a)

Problem 8 (Q. Nos. 188 to 191) Rules

A. The act of using threats to force another person to enter a contract is called coercion.

B. The act of using influence on another and taking undue advantage of that person is called undue influence.

C. To prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by such contract.

D. To prove undue influence, there must be a pre-existing relationship between the parties to a contract. The relationship must be of such a nature that one is able to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligations under the contract.

Facts

Aadil and Baalu are best friends. Aadil is the son of multi-millionaire businessperson, Chulbul who owns Maakhan Pharmaceuticals. Baalu is the son of a bank employee, Dhanraj. One day, Aadil is abducted from his office by Baalu. Chulbul receives a phone call from Dhanraj telling him that if he does not make Baalu the CEO of Maakhan Pharmaceuticals, Aadil will be killed. Chulbul reluctantly agrees to do the same. Subsequently Chulbul and Baalu sign an employment contract. However, as soon as Aadil is released and safely returns home, Chulbul tells Baalu that he shall not enforce the employment contract. Baalu and Dhanraj are not sure as to what is to be done next.

188. As per the rules and the given facts, who coerces whom

(a) Aadil coerces Baalu

(b) Baalu coerces Chulbul

(c) Dhanraj coerces Chulbul

(d) None of the above

Ans: (c)

189. In the above fact situation

(a) there is undue influence exercised by Dhanraj on Baalu

(b) there is undue influence exercised by Aadil on Chulbul

(c) there is no undue influence

(d) None of the above

Ans: (c)

190. Chulbul is

(a) justified in refusing to enforce the employment contract as Chulbul was coerced by Dhanraj

(b) justified in refusing to enforce the employment contract as Baalu was complicit in the coercive act

(c) not justified in refusing to enforce the employment contract as Baalu was an innocent person and has not coerced Chulbul

(d) Both (a) and (b)

Ans: (d)