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Adjustments Incase of Death of a Partner

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Question

Choose the correct answers from the following alternatives given
Mr. X contracts with Mr. V buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. Mr. V knew that Mr. X is mistaken and takes no steps to correct the error. Now Mr. X wants to cancel the contract on the basis of fraud. Which of-the following statement is correct?

A

Mr. X can cancel the contract alleging fraud

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B

Mr. X cannot cancel the contract

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C

Mr. X can cancel the contract alleging undue influence

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D

Mr. X can claim damages

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Solution

The correct option is B Mr. X cannot cancel the contract
Mr. X cannot cancel the contract. An erroneous opinion as to the value of the thing which forms the subject matter of the agreement is not treated as mistake relating to a matter of fact. Here, X will have to blame himself for ignorance of the true value of the necklace.
Hence, B is the correct option.

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Similar questions

Q. Choose the correct answers from the following alternatives given
Mr. X purchased a used computer from Mr. V thinking it as a computer imported from England, Mr. V failed to disclose the fact to Mr. X. On knowing the fact Mr. X wants to repudiate the contract. Which of the following statement (s) is correct?

Q. Principle: When there is breach of contract, the resulting damages will have to be paid by the party breaching the contract to the aggrieved party. However, the parties are free to agree as to damages payable in advance in case there is breach of contract.
Facts: Mr. Ramesh entered into a contract with Mr. Ramakrishna for selling his green Alto Car for

R s . 3

lakhs. Mr. Ramakrishna was to pay

R s . 3

lakhs on or before

25^{t h}

2005

and take possession of the car. The party failing to honour the contract has to pay

R s . 40, 000 / -

as damages to the other party. Mr. Ramakrishna has not performed his apart of the contract. Mr. Ramesh is claiming

R s . 40, 000 / -

.

Q. Legal principle :when there is breach of contract, the resulting damages will have to be paid by the party breaching the contract to the aggrieved party. However, the parties are free to agree as to damages payable n advance in case three is breach of contract.

Factual Situation: Mr. Ramesh entered into a contract with Mr. Ramakrishna for selling his green Alto Car for Rs. 3 Lakhs. Mr. Ramakrishan was to pay Rs. 3 lakhs on or before 25 April, 2005 and take possession of the car. The party failing to honor the contract has to pay Rs. 40,000 as damages to the other party. Mr. Ramakrishna has not performed his part of the contract . Mr. Ramesh is claiming Rs.40,000.

Q. Choose the best option for the following statement:
The distinction between fraud and misrepresentation:
1. Fraud is more less intentional wrong, whereas misrepresentation may be quite innocent.
2. In addition to rendering the contract voidable, is a cause of action in tort for damages. Simple misrepresentation is not a tort but a person who rightfully rescinds a contract is entitles to compensation for any damages which he has sustained through the non-fulfilment of the contract.
3 . A person complaining of misrepresentation can be met with the defence that he had "the means of discovering the truth with ordinary diligence". But excepting fraud by silence in other cases of fraud it is no defence that "the plaintiff had the means of discovering the truth by ordinary diligence".
4. None of the above.

Q. Choose the correct answer from the alternatives given.
Mr. X lends Rs. 10,000 to. Mr Y. He later tells Y that he need not repay the amount, the contract is discharged by ________.

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