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'J', the owner of a car and wants to sell it.For this purpose, he hands over the car to 'P', a mercantile agent for sale

  1. 'J', the owner of a car and wants to sell it.For this purpose, he hands over the car to 'P', a mercantile agent for sale at a price not less than Rs. 90,000.The agent sells the car for Rs. 80,000 to 'A', who buys the car in good faith and without notice of any limitation on P's misappropriated the money also.'J' sues 'A' to recover the car.Decide giving reasons whether 'J' would succeed in doing so.
  2. 'A' is travelling to Mumbai from Delhi. At the Delhi airport he uses a vending machine to buy a can of Pepsi. The currency note gets accepted by the machine however product is not released. Is there any legal remedy available for A under force majeure? Explain.
  3. 'A' agrees to buy B's land. However, both of them are mistaken as to the actual size of the plot of land: they think the plot is 10 acres in size, whereas it is actually 15 acres in size. Explain valid, void, voidable and illegal agreements with the help of this case.
  4. The company, Jon Beauforte Ltd., a public listed company was authorized by its memorandum of association to carry on business of ready-made garments, gowns, robes, dress and mantle makers, tailors and other activities of allied nature. But later the directors of the company decided to carry on the business of manufacturing veneered panels. For this purpose, the company founded a factory. The resolution approving the allocation of funds for factory construction was passed in the Board of Directors meeting.A firm of builders who constructed the factory had brought an action claiming Rs 10,00,000 and another firm that supplied veneer to the company had a claim of Rs 10,00,00. The company committed a default of payment to the contractors alleging that contract was ultra vires of the company. The matter went into dispute, following which share price of the company fell by 50% within a week.

  • Will doctrine of ultra vires be applicable in this case? Explain.
  • Can the contractors press claims under doctrine of indoor management against the company? Explain.
  • Can the doctrine of lifting of Corporate Veil be applicable in this case? Explain.

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