PRINCIPLE: A contract between the father and his son is a contract of utmost good faith. Such a type of contract law presumes that at the time of entering into the contract father was in a position to dominate the will of his son. Where one of the parties was in a position to dominate the will of the other party, the contract is enforceable at the option of the party whose will was so dominated.
FACTS: Ram had advanced a sum of ₹ to his minor son Shyam. When Shyam became major, his father Ram misused his parental position and entered into an agreement with Shyam and obtained a bond from him for a sum of ₹ in respect of the advance. Whether this agreement is enforceable?
Important Questions on Contract Law
Principle Mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not fraud unless the circumstances of the case are such that, on close examination, it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.
Facts X sells by auction to Y, a horse which $X$ knows to be of unsound state of mind. says nothing to $\ mathrm {Y}$ about the horse's unsound state of mind. Give the correct answer.
Principle A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interests.
Facts Mr X who is usually of sound state of mind, but occasionally of unsound state of mind, enters into a contract with Mr Y when he was of unsound state of mind. Mr Y having come to know about this fact afterwards, wants to file a suit against X
Principle Agreements, the meaning of which is not certain, or not capable of being made certain, are void.
Facts: A horse was bought for a certain price coupled with a promise to give more if the horse is proved lucky.
Assertion (A) A void contract is not necessarily illegal.
Reason (R) Every illegal contract is void.
Principle Every person, who is of the age of majority, is competent to contract according to the law to which he is subject.
Facts A minor mortgaged his house in favour of Thakur Das, a money lender, to secure a loan of. A part of this i.e. was advanced to him. While considering the proposed advance the attorney who was acting for the moneylender, received information that plaintiff was still a minor. Subsequently, the minor commenced an action stating that he was underage when he executed the mortgage and the same should, therefore, be canceled. He prayed for setting aside the mortgage. The mortgage moneylender prayed for the refund of ₹ 10500 from the minor.
This question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion.
Principle: An agreement to do an act impossible in itself cannot be enforced by a court of law.
Facts: Ramesh agrees with his girlfriend Shilpa to pluck stars from the sky through his extraordinary will power and bring them down on Earth for her within a week. After the expiry of one week, Shilpa filed a suit for damages against Ramesh for the breach of contract as Ramesh failed to perform his promise.
