CLAT 2013

PRINCIPLE: If a person transfers movable or immovable property with its full ownership and without any consideration to some other person, then it is called a gift.

FACTS: S, who has no child of his own, makes a gift of his house worth ₹ 25 lacs to his nephew R. After completing all the legal formalities required for a valid gift, 5 says to R that in case of need R will provide that house to S for use without any questions. R does not react to it. After one year of this gift, S really needs that house and request R to make the house available to him, but R refuses to do so.

PRINCIPLE: An agreement to do an act impossible in itself cannot be enforced by a court of law.

FACTS: Ramesh agrees with his girl friend 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.

PRINCIPLE: An agreement may be oral or written. However, if a law specifically requires that an agreement must be in writing then the agreement must be in writing. A law specifically requires that the agreements relating to transfer of the copyright in novel between an author of a novel and the producer of a motion picture must be in writing.

FACTS: The author of a novel, Love at Lost Sight, had several rounds of discussion with a producer of motion picture regarding making of a motion picture based on Love at Lost Sight. During the discussion, they decided to make a motion picture on Love at Lost Sight. The producer made a motion picture on Love at Lost Sight after making a payment of ₹ 10,00,000 (Ten lacs only) in cash to the author who happily accepted this amount as full and final payment. Later on, on the advice of his lawyer, the author brought a case in a court of law against the producer on the ground that there is no written agreement between the producer and him.

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 judgment as to its effect upon his interest.

FACTS: X who is usually of sound mind, but occasionally of unsound mind enters into a contract with Y when he (X) is of unsound mind. Y came to know about this fact afterwards and now wants to file a suit against X.

PRINCIPLE: Whosoever commits any act forbidden by the Indian Penal Code with a view to obtain the consent of any person to enter into an agreement, he cannot get the agreement enforced by law but the person whose consent has been so obtained may get the agreement enforced by law. The Indian Penal Code defines various offences and prescribes punishments therefore.

FACTS: A obtains the consent of B to enter into an agreement by an act amounting to criminal intimidation under the Indian Penal Code. A brings a case against B for performance of agreement.

PRINCIPLE: A contract between the father and his son is a contract of utmost good faith. In such a type of contract law presumes that at the time of entering into the contract the father was in 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 only at the option of the party whose Will was so dominated.

FACTS: Ram had advanced a sum of ₹ 10,000 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 ₹ 30,000 in respect of the advance. Whether this agreement is enforceable?

PRINCIPLE: When at the desire of one person, any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the promise. Only a promise coupled with consideration is enforceable by law.

FACTS: X, the uncle of Y, made a promise to pay him an amount of ₹ 10,000 as reward if Y quits smoking and drinking within one year. X also deposited the above mentioned amount in a bank and informed Y that the said amount will be paid to him if he quits smoking and drinking within one year. Within a period of six months of making the promise X died. After the expiry of one year of making the promise by X, Y made a request to the legal heirs of X demanding the promised money. The legal heirs of X declined the request of Y.

PRINCIPLE: 'Work' means literary work, artistic work, dramatic work, musical work, cinematographic film and sound recording but does not include acting in a cinematographic film. Only the works, as enumerated above, can be protected under copyright law.

FACTS: A very famous actor acted in a cinematographic film. The actor was also the producer and director of cinematographic film.

PRINCIPLE: In case where the Government is a party, the Government, shall be the first owner of the copyright in the work unless there is an agreement to the contrary.

FACTS: The Government of the State of X entered into an agreement with a retired Professor of Botany. The Professor agreed to write a textbook on Botany. The Government agreed to pay a sum of ₹ 10,00,000 to the Professor for this work.

PRINCIPLE: Licence is an agreement whereby the owner of the copyright agrees to grant an interest in the copyright to the licence. Assignment is an agreement whereby the owner of the copyright transfers all the property rights to the assignee. Property right is a bundle of rights consisting of right to possess, right to use, right to alienate and the right to exclude others.

FACTS: A, an owner of copyright in a cinematographic film enters into an agreement with B, a film distributor. B agrees to distribute the film only in' Mumbai. A also enters into many such agreements with other distributors for distribution of his film in other cities.