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Legal reasoning - Questions and answers CSEET Part 1

Questions in the Legal Reasoning may be asked mainly from the following areas:-

(A) Indian Constitution

(B) Indian Contract Act

(C) Law of Torts

(D) Element of Company Law

1. Legal Principle : All citizens shall have the right to freedom of speech and expression under Article 19 of the Constitution of India and it is a Fundamental Right.

Factual Situation : Mr Sinha a famous English writer and orator criticized another novelist,Mr. Rahul stating that: The novel of Mr. Rahul is irrational and indecent, his mind is impure, he is a loose character, he should write decent and good novel."


Can Mr. Rahul be sued for defamation?

(a) He is not liable because he has just expressed his personal views

(b) He is liable to be sued for defamation if his statement, was not true or said in malafide intention

(c) He cannot be liable because he has fundamental right to freedom of speech and Expression

(d) He cannot be sued, because both are writer and novelists and both can criticize each other.

Answer: B.

Explanation : No fundamental right is absolute, and if a statement is made with wrong intention to defame a person, he is liable to be prosecuted.

2. Legal Principle: Every citizen of India has a fundamental right to carry on any trade or business or profession of his choice subject to the imposition of reasonable restrictions by the State.

Factual Situation : In pursuance of an order passed by the Institute of Company Secretary of India (ICSI). prohibit a person from Practice the profession of Company Secretary unless such person passed the Company Secretary ship Course and hold a certificate of practice from the ICSI. Mr. Manoj, a Executive Programme passed student of Company Secretaryship Course challenges the ban as it violates his right to carry his profession.


(a) Institute of Company Secretary of India (ICSI) has a superior right to ban.

(b) The ban is justified. as the right of Mr. Manoj to carry his profession is not absolute

(c) The ban is not justified. as the Institute of Company Secretary of India (ICSI) cannot deprive any person of his right to carry on his profession

(d) None of the above.

Answer : B

Explanation : All fundamental rights are subject to reasonable restrictions, and ICSI have the right to stipulate the basic criteria for practicing. This right is given under ICSI Act, 1980.

3. Legal Principle :A contract is an agreement which the law will enforce. all agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object.

Factual Situation: Mr. Raja offered to buy Mr. Rams Car for Rs. S lakhs but Mr Ram refused.

Subsequently Mr. Raja threatened to kill Mr. Ram and Mr. Ram agreed to the sale. Mr. Ram

subsequently rescinded from the contract. Mr. Raja suit to enforce the contract-


(a) Will succeed because Mr. Raja was offering lawful consideration for the car

(b) will succeed because buying and selling of cars lawful

(c) Will succeed because both parties have capacity to contract

(d) Will fail because Mr. Ram was forced to agree to the contract.

Answer D

Explanation : Free consent is necessary to create a legal contract, and in this case the consent was not free.

4. Legal Principle :A contract is an agreement which the law will enforce. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object.

Factual Situation : Mr Joy a young boy of 27 years without any consideration agrees to give Ms. Jooly Rs. 10,000/. Mr. Joy fails to fulfil his promise. Ms. Jooly sues Mr. Joy for the amount.


(a) Ms. Jooly will succeed as Mr. Joy made the promise of his own free will

(b) Ms. Jooly will fail as the agreement is without consideration

(c) Ms. July will succeed as Mr. Joy has the capacity to make the contract

(d) Ms. Jooly will succeed as the money is not being paid for any illegal object.

Answer B

Explanation – An agreement without consideration is not a contract.

5 . Legal Principle : Constitution of India empowers the President of lndia to appoint the Judge of the High Courts and Supreme Court.

Factual Situation : There is a deadlock between the Council of Ministers including Prime Minister of India and the President of India. President of India appointed Mr. Adarsh as the Justice of Supreme Court of India and Mr. Gang appointed as Judge of Delhi High Court by the Prime Minister of India .


(a) Appointment of Mr. Gang is valid in the eyes of law

(b) Appointment of Mr. Adarsh is valid as per the Constitution of lndia

(c) Appointment of Mr. Adarsh and Mr. Gang void ab initio

(d) None of the above.

Answer B

Explanation: As per constitution, the President have the right to appoint Judges of Supreme court and High Courts, but if you go by the process the name usually will be recommended by the Prime Minister and Council of Ministers.

6. Legal Principle :A violation of a legal Right. with or without damage, gives rise to a tort.

Factual Situation : Mr. Ketan establishes a coaching class for Company Secretary Students of Executive Programme and charges Rs.10. 000/ per year as tuition fees. Mr. Ketan’s neighbor Mr. Kalia establishes another coaching class for Company Secretary Students of Executive Programme thereby heating a competition between them. This forces Mr. Ketan to reduce his tuition fees to Rs. 7000/ per year.


Can Mr. Ketan claim damages from Mr. Kalia for the loss caused to him"

(a) Yes. he can as Mr. Kalia has violated his Legal Right

(b) No. Mr. Ketan has reduced the fees on his own

(c) No. because though, there was damage there was no legal injury

(d) None of the above.

Answer C

Explanation - Gloucester Grammar School Case. Even if there is a damage but no legal injury, the case will not stand in the eyes of law.

7. Legal Principle : Company means a company incorporated under the Companies Act, 2013. or under any previous company law

Factual Situation : (i) ABC Limited is incorporated under the Companies Act. 1956: (ii) ABC LLP incorporated under Limited Liability Partnership Act. 2008:(iii) ABC a Co registeredunder Partnership Act, 1832 and (iv) ABC Charitable Trust established under Trust Act. 1882.


Which of the above entity as mentioned in factual situation is a company

(a) ABC Limited


(c) ABC&Co

(d) ABC Charitable Trust

Answer : A

Explanation – ABC Limited is registered under Companies Act 1956. All others are registered under different acts, not under companies act.

8. Legal Principle: A master shall be responsible for the wrongful acts of his servants in the course of his employment.

Factual Situation : ABC Limited is a Non Banking Financial Company (NBFC) is registered with Reserve Bank of lndia to accept deposit from public. Mr. Shyam appointed as authorised agent by ABC Limited to collect deposit money from several people on daily basis. Mr. Shyam, collecting deposits from people on daily basis. One day he disappeared. One Ms. Shyamlee who had been handing over her deposit money to Mr. Shyam found that nearly for a month before his disappearance, he was not depositing her money at all. Ms. Shyamlee when approached the ABC Limited. the NBFC took the stand that Mr. Shy am was not its employee. he is its agent and therefore, ABC Limited is not responsible for his misconduct. Ms. Shyamlee Files a suit against the ABC Limited.


Who is liable?

(a) ABC Limited

(b) Mr. Shyam

(c) Ms. Shyamlee

(d) None of the above.

Answer : A.

Explanation: Principal is liable for the mistakes of agent committed during employment.

9. Legal Principle: The members of both Lok Sabha and Rajya Sabha are eligible to be Ministers of the Union Government.

Factual Situation : Mr. Ram Sing is sitting member of Upper House of Parliament and as Recommendations of Prime Minister of lndia,President of lndia appointed Mr. Ram Singh as Minister for the Ministry of Education.


Appointment of Mr. Ram Singh as Minister for the Ministry of Education is valid?

(a) Yes

(b) No

(c) President of lndia cannot be appointed

(d) Prime Minister of lndia cannot be recommended

Answer A

Explanation : on the recommendations of the Prime Minister, formally President of India appoints ministers.

10. Legal Principle : Tort is a civil wrong for which the remedy is a common law action for unliquidated damages and which is not exclusively the breach of contract or the breach of a trust or other merely equitable obligation.

Factual Situation : Mr. Sunil has six pet dogs which are very ferocious and bark a lot. Mr. Surendra is his next door neighbor and feels that he is not able to enjoy his property due to the presence of large number of dogs in the adjacent house. He is contemplating initiating a legal action against Mr. Sunil. Mr. Surendra can:


(a) Initiate action for breach of contract against Mn Sunil as there is an implied contract between the neighbours.

(b) Initiate action for unliquidated damages under torts because there is no contract between the neighbours.

(c) Initiate criminal action against Mr. Sunil because having a large number of ferocious dogs is a criminal act.

(d) Not be successful as Mr. Sunil has an unrestricted right to enjoy his personal property and has no duty towards Mr. Surendra.

Answer : B

Explanation : No contract is necessary, it is an equitable obligation.

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