Principle: Sale of liquor is illegal. All agreements relating to prohibit ed items do not exist in
the eyes of law.
Facts: 'A' entered into an agreement with 'B' for the sale of liquor. 'A' failed to supply the agreed quantity of liquor to 'B'.

• B' can bring a legal action against 'B'.

• 'A' can bring a legal action against 'B'.

• 'B' cannot bring any legal action against 'A'.

• 'B' cannot bring any legal action against 'A'.

Principle: Defamation is the publication of a statement which tends to lower reputation of a person in the estimation of other members of the society generally.
Facts: 'A' writes a highly offensive and derogatory letter about 'B', and sends it directly to 'B' in a sealed cover.

• 'A' is liable to 'B' for defamation, as the letter is highly offensive and derogatory and is directly sent to 'B'.

• A' is not liable to 'B' for defamation, since there is no publication to any other person in whose estimation the reputation of 'B' could be brought down.

• 'A' is liable to 'B' for defamation, as the letter is highly offensive and derogatory.

• 'A' is liable to 'B' for defamation, as the letter is highly offensive and derogatory.

Principle: Mere silence as to facts lakely to affect the decision of a person to enter into a contract is not fraud.
Facts: 'A' sells to 'B' (A's daughter who is minor) a horse which 'A' knows to be unsound. 'A' says nothing to 'B' about the unsoundness of the horse.

• 'B' can take plea of fraud because she is minor.

• There can not be a contract between a father and daughter.

• 'A' has not committed fraud.

• 'A' has not committed fraud.

Principle: Acceptance of proposal must be the exact mirror image of the proposal.
Facts: 'A' made a proposal to 'B' to sell a chair for Rs. 500. 'B' expressed his desire to buy the said chair for Rs. 400.

• It is not clear whether A made a proposal to 'B'.

• 'B' has accepted the proposal of 'A'.

• 'B' has not accepted the proposal of 'A'.

• 'B' has not accepted the proposal of 'A'.

Principle: An agreement without free consent can be enforces only at the option of the party whose consent was not free.
Facts: A obtains the consent of 'B' to enter into an agreement by put ting a gun on the head of B's girl friend.

• 'B' can enforce the agreement.

• 'B' cannot enforce the agreement.

• Neither 'A' nor 'B' can enforce the aggrement.

• Neither 'A' nor 'B' can enforce the aggrement.

Principle: Existence of all the alleged facts is relevant, whether they occurred at the same time and place or at different times and places.
Facts: 'A', a citizen of England, is accused of committing murder of 'B' in India by taking part in a conspiracy hatched in England.

• Only the fact that 'A' citizen of England is accused of committing murder of 'B' in India is relevant.

• 'A' citizen of England cannot be tried in India.

• Only the fact that 'A' is accused of conspiracy hatched in England is relevant.

• Only the fact that 'A' is accused of conspiracy hatched in England is relevant.

Principle: A person, who is usually of unsound mind, but occasionally normal, may make a contract when he is not of unsound mind.Facts: 'A' generally remains in the state of unsound mind and rarely becomes capable of understanding the things.

• 'A' can make a contract when normal.

• 'A' can make a contract only for his own benefit.

• 'A' can never make a contract.

• 'A' can never make a contract.

Principle: Nothing is an offence which is done by a child under twelve years of age, who has not attained sufficient maturity of understanding to judge the nature and consequences of his conduct on that occasion.
Facts: Himesh, 11 years old boy, picks up a gold ring worth Rs 5000/-lying on a table in his friend's house and immediately sells it for Rs 2000/-, and misappropriates the money.

• Himesh would not be protected under the principle stated above because, irrespective of the age, stealing is an offence.

• Himesh would be protected under the principle stated above because he is below 12 years of age.

• Himesh would be protected under the principle stated above because his acts show that he was not sufficiently mature to understand the nature and consequences of his conduct.

• Himesh would be protected under the principle stated above because his acts show that he was not sufficiently mature to understand the nature and consequences of his conduct.

Principle: Letters or words not describing quality of things can be registered as a trade mark.
Facts: Ram made an application for registration of alphabet 'B' written in a fancy style as trade mark to be applied on packets and cartons of shoes manufactured by him.

• The alphabet 'B' can be registered as trade mark because it describes the quality of things.

• The alphabet 'B' cannot be registered as trade mark because it is an English letter.

• The alphabet 'B' can be registered as trade mark.

• The alphabet 'B' can be registered as trade mark.

Principle: One who dishonestly misappropriates or converts to his own use or sells any
movable property belonging to another, is guilty of the offence of misappropriation.
Facts: 'A' takes property belonging to 'Z' out of Z's possession, in good faith, believing when he takes it, that the property belongs to himself. Subsequently, 'A', on discovering his mistake, without
disclosing the actual facts, dishonestly sells the property to a stranger.

• 'A' may be guilty of theft but not for misappropriation.

• 'A' is guilty of an offence of misappropriation.

• 'A' is not guilty because when he took the property, he believed in good faith that it belonged to him.

• 'A' is not guilty because when he took the property, he believed in good faith that it belonged to him.