SIKKIM MANIPAL UNIVERSITY-DE Vernacular Programs Assignment format

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1. Distinguish between fraud and misrepresentation.
Answer-











2. Explain all the heads of public policy.
Answer- Public policy is that principle of law, which holds that no person can lawfully act in
such a way which has a tendency to be injurious to the public or which is against the public
interest or against the public good or public warfare.
SIKKIM MANIPAL UNIVERSITY-DE Vernacular Programs Assignment format

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There are certain heads of public policy; if any one enters into any contract which is
opposed to the public policy such contracts are void. The idea is that no can do harm to the
public welfare or public good.
Heads or examples of public policy
a. Agreement for Trading with enemy: trading with an alien enemy during the war is illegal
on the basis of public policy
b. Trafficking in public office: if the money is given to induce government officials to do
something or other which will affect the normal working of the government like
procurement of a public recognition like Param Veer Chakra or getting medical seat for
money.
c. Interference with administration of Justice: any act which will mislead the court like giving
false evidence in court, trying to bribe court officials, showing some rewards for favors etc.
d. Stifling prosecution: stifling means oppressive or overpowering. It is in the public interest
that criminals must be prosecuted and punished. If someone promises to drop the case for
money or any other favor it is opposed to public policy.
e. Maintenance and Champerty: Maintenance here means instigation of litigation by giving
money and getting bigger share in the property mentioned in the litigation. Champerty
refers to bargain in which a stranger promises to give assistance in the form of money or
otherwise to another person in recovering property and get a share of it.
f. Marriage brokerage contracts: an agreement to arrange marriage for money is opposed to
public policy
g. Agreement to do something opposed to duty: Government officials must discharge their
duty honestly. An agreement to make secret profit is opposed to public policy.
Example: In the recent Common Wealth Games, some officials made secret profit. Hence,
they are facing legal charges.
h. Agreement in restraint of parental rights: Parents cannot give up their rights for money.
i. Agreement restricting personal Liberty : agreement to restrict personal liberty is void
J. Agreement to commit a crime: No one can enter into an agreement to commit a crime.
Such agreements are void.
k. Agreement in restraint of legal proceedings


3. What are the rights and obligations of the finder of the goods?
Answer- Finder of goods (Sec 71)
A person who finds goods belonging to another, and takes them into his custody,
is subject to the same responsibility as a bailee.
Whenever a person takes some goods found on the road, belonging to another person who
has accidently left or lost them, an implied agreement is established by law. Although there
is no agreement entered into by finder of the goods and the owner of the goods who lost
the goods, the finder has certain obligations and law deems it that he has to take care of the
goods like any ordinary person who takes care of his own goods. This comes under quasi
contract. The finder of the goods is expected to take all necessary measures to find out the
true owner in order to restore the goods found by him.
Example:
hands it over to Sham to keep it until the true owner is found. No one claims in spite of the
wide advertisements in the newspapers. Ram finally claims back the diamond ring from
Sham. Sham refuses to return the same.
SIKKIM MANIPAL UNIVERSITY-DE Vernacular Programs Assignment format

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When the matter went to court and the court observed: Sham has to return the diamond
ring to Ram, because Ram was the original finder of the goods. He has the right to keep it as
against the whole world except the true owner.
The finder of the goods can sell the goods found under the following circumstances

found in spite of reasonable diligence on the part of the finder
to find the owner.

rds
of the value of the thing found.
Liability of person to whom money is paid, or thing delivered, by mistake or
under coercion (Sec 72)
A person to whom money has been paid, or anything has been delivered, by mistake or
under coercion, must repay or return it.
Illustrations
fact, pays 100 rupees over again to C. C is bound to repay the amount to B.
ee, except upon the
payment of an illegal charge for carriage. The consignee pays the sum charged in order to
obtain the goods. He is entitled to recover that much of the charge as was illegally
excessive.


4. Explain the function, duties and power of competition commission of India.
Answer- Duties, powers and functions of commission
Duties
1. The main duty is to eliminate practices having adverse effect on completion
2. Promote and sustain competition
3. Protection of interest of consumers
4. To ensure freedom of trade carried on by other people in the market in
India
5. Entering into any agreement with any agencies in the country or with foreign agencies
etc with the prior approval of the central govt.
6. Powers and functions
The commission will investigate whether an agreement entered into by persons and
enterprises has any adverse effect on the competition.
o whether it will create any barriers to the new entrants
o whether it will drive out the competition from the market
o customer benefits
o improvements in production, distribution, service
It will enquire whether there is any dominant position or not having due
regards to




l advantages

SIKKIM MANIPAL UNIVERSITY-DE Vernacular Programs Assignment format

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5. Identify the remedies available for the breach of contract.
Answer- Remedies for breach of contract
When one person committees breach of contract, the other person will suffer from
something or other and such things must be compensated for or some relief must be given
to such parties who suffer.
Remedies mean relief that the court will award in case of breach of contract.
The following are the remedies available in case of breach of contract.





Recession: Recession means the setting aside of the contract. The aggrieved party may be
allowed by the court to treat the contract at the end and thereby terminate all his liabilities
under the contract.
The court will not allow recession of the contract in the following cases:
the contract has expressly or impliedly ratified the
contract
separated from the rest of the contract.
rcumstances since the
making of the contract, on account of which the parties cant be substantially restored to
the position in which they were before the contract was made.
s in the
subject matter of the contract in good faith and for value
Damages: It means monetary compensation payable by the defaulting party to the
aggrieved party in the event of the breach of a contract. Damages which arise in the
ordinary course of events from the breach of contract are called ordinary damages. These
damages constitute the direct loss suffered by the aggrieved party.
Special: These damages result from breach of the contract under special circumstances.
They constitute the indirect loss suffered by the aggrieved party on account of breach of the
contract.
Exemplary Or Vindictive Damages: They are quite heavy in amount and are awarded by
way of punishment only in the following cases:
Breach of a contract to marry, dishonor of a customers cheque by the bank without any
proper reason.
Nominal: These damages are quite small in amount. They are never granted by way of
compensation for the loss. In such cases usually the actual the loss is very negligible. They
are awarded simply to recognize the right of party to claim damages for the breach of the
contract.
Quantum meruit: This means as much as earned. This is one of the remedies available
to the aggrieved party. A right to file a suit on quantum meruit arises where a contract
SIKKIM MANIPAL UNIVERSITY-DE Vernacular Programs Assignment format

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partly performed by one party has become discharged by the breach of the contract by the
other party.


6. Try to identify the reliefs that can be granted by a Consumer Court.
Answer- Relief that can be granted under the act
The consumer courts namely District Forum, State Commission and the National
Commission are established to take care of the consumer interest and welfare.
The following are the various reliefs that the consumer courts can grant:
a) eliminate the defect from the goods in question as pointed out by the appropriate
laboratory
b) replace the goods with new goods of similar description which shall be free from any
defect;
c) return to the complainant the price, or, as the case may be, the charges paid by the
complainant;
d) pay such amount as may be awarded by it as compensation to the consumer for any loss
or injury suffered by the consumer due to the negligence of the opposite party.
e) Provided that the District Forum shall have the power to grant punitive damages in such
circumstances as it deems fit;
f) get the defects in goods or deficiencies in the services in question
removed;
g) to see that unfair trade practice or the restrictive trade practice are discontinued or warn
the parties not to repeat it;
h) to ensure that the hazardous goods are not offered for sale;
i) to see that the hazardous goods are withdrawn from being offered for sale;
j. to ensure that manufacture of hazardous goods are stopped and the party concerned
desists from offering services which are hazardous in nature.