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New Profit Sharing Ratio

Solve :X cont...

Question

Solve :
X contracts to sell and deliver 500 bales of cotton to V on a fixed day. X knows nothing of Y's mode of conducting business. X breaks his promise and V, having no cotton is obliged to close his mill. Is X responsible to Y ?

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Solution

Solution: Section to which the given problem relates: Section 73.
Decision and Reason: X is not responsible to Y for the loss caused to Y by the closure of the mill because it is an indirect consequence of the breach of the contract.

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A mill where seeds are removed from cotton bolls and the cotton is pressed into bales is called

Q. In which of the following cases there is NOT partnership ?uy
(I) A & B buy 100 bales of cotton agreeing to divide these between them.
(II) (I) A & B buy 100 bales of cotton,which they agree to sell for their joint account and to share the profit or loss.
(III) A & B are joint owner of a house. They rent it out to C and divide the net rent equally.
(IV) A is a publisher. He agrees to publish at his own expense a book written by B, and to pay Y half the net profits.

Q. Solve :
X contracts to pay a sum of money to Y on a day specified. X does not pay the money on that day. Y in consequence of not receiving the money on that day, is unable to pay his debt and is totally ruined. Discuss the legal position.

Q. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, to that extent is void.

Factual Situation: A contracts to sell to B the goodwill of a business. A then sets up a similar business close by B's shop and solicits his customers. This is contrary to the contract.
Issue: Can B obtain an injunction to restrain A from soliciting customers?

Q. Legal Principle: Mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not a fraud, unless the circumstances of the case are such that, on close examination it is found to be the duty of the person keeping silent to speak, or unless his silence is, in itself, equivalent to speech.
Facts : X sells by auction to Y, a horse which X knows to be of unsound state of mind. X says nothing to Y about the horse's unsound state of mind. Give the correct answer.

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