AILET 2019 BA LLB Question Paper with answer key for online practice
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Directions (Q. 79 - Q. 81) : Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles :
1. A contract comes into being from the acceptance of an offer. When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.
2. Consideration is something that moves from the promisee 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.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contract like agency, trust, assignment and third-party beneficiary.
5. A quasi contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he does not deserve to do so.
Legal Principles :
1. A contract comes into being from the acceptance of an offer. When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.
2. Consideration is something that moves from the promisee 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.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contract like agency, trust, assignment and third-party beneficiary.
5. A quasi contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he does not deserve to do so.
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Question : 79 of 150
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Facts : Goodtyre is a tyre manufacturer who agreed with their dealer to not sell the tyres below a recommended retail price (RRP). As part of the agreement, Goodtyre also required their dealers to gain the same agreement with their retailers, who in this instance was Bestmotors. The agreement held that if tyres were sold below the RRP, they would be required to pay ? 500 per tyre in damages to Goodtyre. This was agreed between the dealer and Bestmotors, which effectively made Goodtyre a third-party to that agreement. Sometime after this, Bestmotor sold the tyres below the agreed price and Goodtyre sued for damages and an injunction to prevent them from continuing this activity. Bestmotor is arguing that Goodtyre could not enforce the contract as it was not part of the contract between the dealer and the Bestmotor. The court decided that Goodtyre had no right to access damages. Which of the following are correct reasons?
I. Goodtyre could not claim for damages as only a party to a contract can claim damages under it.
II. Goodtyre had not given any consideration to Bestmotor and therefore there could be no binding contract between the parties.
III. Goodtyre was not listed as an agent within the contract and could therefore not be included as a valid third-party who had rights to claim on the contract.
I. Goodtyre could not claim for damages as only a party to a contract can claim damages under it.
II. Goodtyre had not given any consideration to Bestmotor and therefore there could be no binding contract between the parties.
III. Goodtyre was not listed as an agent within the contract and could therefore not be included as a valid third-party who had rights to claim on the contract.
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