LEGAL ASPECTS OF BUSINESS AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL
LEGAL ASPECTS OF BUSINESS Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] www.afterschool.tk www.afterschoool.tk
A & B are engaged by their parents. They are minors. The parents of both decide to get them married when they become major. On attaining majority, B refuses to marry A. A files a suit against it. What will happen?
A will be granted damages. Althrough they were minors, but their parents were majors, so they can enforce the agreement and get damages for breach. ( rose Fernandes V/s Joseph Gonsalves 1925)
A & B are brothers, they divide property. B was to look after their mother also. However, B didn’t take care of mother. What is the remedy?
The mother can sue B for specific performance. She is entitled to her share in the property, if B does not fulfill his promise.
(Veeramma V/s Appayya 1957)
Ramu sold his house to Ali and asked Ali to make the payment to Rene. Ramu died. Ali didn’t make the payment to Rene. Actually Ramu was debtor to Rene. Can Rene recover money from Ali?
Yes – he can recover the money from Ali (Deveraja V/s Ram Krishniah 1952)
A found a Necklace of B (worth Rs. 10 Lakh). B promises to give A Rs. 100. Later B does not give that amount also. Can A recover this amount?
Ali, Only son of Rafik fell into river and was saved by Hari. Rafik promised to give Hari Rs. 1 Lakh in reward, but he died next day. There was no witness. Can Hari claim this amount from Ali now?
Yes (Sec. 25(2))
Bajaj sold Hari some bikes on condition that he will not sell them below list price. Hari sold them to Ali with the same conditions. Ali sold bikes at below list price. Bajaj wants damages. Will it succeed?
No (there was no agreement between Bajaj and Ali). (Dunlop V.s Selfridge 1915)
Hari gives a loan to Ali. 40 years later Hari asks Ali to return the amount. Ali acknowledges the facts. Will Hari be able to recover the money?
No (it is a time barred debt).
Hari gives a loan to Ali. 40 years later Hari asks Ali to return the amount. Ali promises to pay the money. Will Hari be able to recover the money?
Yes (an express promises makes the contract and now this amount can be recovered).
A had to pay B Rs. 50000. He paid only 40000 and B accedpted as discharge of the total mount. Later B demands remaining Rs. 10000 also. Will B succeed?
Sonu makes a promise to sing in the party organised by Rishabh, however, he falls ill and Rishabh’s entire arrangement was spoiled. Will Rishabh be able to recover damages?
No (Sec. 37 – when contract is impossible due to circumstances beyond control).
Sunidhi makes promise to sing daily at Nidhi’s theatre. However, she wilfully absents herself for 2 days. Nidhi rescinds the contract. Sunidhi now wants to sing again. Can she succeed?
Rishabh gives a loan to a minor on guarantee by Ankit. On due date Rishabh cannot get the money. Ankit also does not make the payment. What should Rishabh do?
Rishabh can recover the money from Ankit.
A has a stolen Rifle, which he gives to B to keep it safe. Police takes away the Rifle from B and charges Rs. 10000 also. B demands Rs. 10000 from A, A demands rifle back. Who will succeed?
B will succeed.
I hire Ankit’s horse for training Afterschoolians in horse riding. The horse eats a lot and I have to spend Rs. 12000 on its feed only. Further, the horse was suffering from some disease, for which I had to pay Rs. 500 on medical treatment. Can I recover these 12500 from Ankit?
I can recover Rs. 500 only (extraordinary item), I cant recover 12000 (every horse requires food, and therefore I cannot ask for payment of food).
Goutam deals in diesel. He puts 1000 liters of Diesel with Ramu and asks that Ramu has to give these to Rishabh. Ramu changes 200 liters of diesel by kerosene and gives it to Rishabh. Rishabh discovers it after 1 month & asks Goutam to pay Rs. 1000 as penalty. What should Goutam do?
Goutam can recover this penalty from Ramu (section 137).
I hire Ankit’s horse for training Afterschoolians in horse riding. Goutam, an afterschoolian, gives the horse to his friend Mohan, who rides the horse. Horse gets injured in normal course. Ankit claims damages for the injury. Will he succeed?
Yes (because, the horse was used by unauthorised users).
Rishabh sells some goods to Ankit at prices to be fixed by Goutam. Ankit asks Goutam not to fix the price. After one month Ankit says the contract is void because there is no price fixed yet. He now wants to return the goods. Will he succeed?
Refer to sec. 10(2) sale of goods act. Here Rishabh will succeed, he can demand damanges also for preventing Goutam from fixing prices.
Rishabh wants to look like Amitabh Bachhan and goes to market to buy white colour dye. He buys a standard colour dye. The dye created allergy and defaced him. Will he get any damages – if yes from whom?
Read the case of Ingham V/s Emes (1955), he will not succeed, as it was a standard product and he didn’t disclose that he had allergy from a particular product.
Nidhi pledges her Car with Sapna. Sapna sells this car to Jayati claiming as her own car. Later Jayati comes to know abour reality. She wants to claim Rs. 1 Lakh as damages. Will she succeed?
Jayati will succeed (the amount may be decided by court), because she has been cheated. Read Sec. 14(2) of sale of goods Act.
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