INSTITUTION OF ESTATE MANAGER & APPRAISERS

Sub : Law
2 marks each
G R O U P A
1. Define :
(i) VICARIOUS LIABILITY : It is a species of a group of torts were liability
for wrongs committed by others. In general, a man is responsible for his own acts, but
there are exceptional cases in which the law imposes on him vicarious liability for
the acts of others though he had no part in those acts. The most important of such
cases is the liability of the master for wrongs committed by his servant.

(ii) ARBITRATION CLAUSE :

A clause inserted in a contract providing for compulsory arbitration in
case of dispute as to the rights and liabilities arising under it. In such cases, no suit lies
in case of any dispute between the parties save and except arbitration proceeding in
accordance with Law.

(iii) CONSIDERATION : is the materials clause of any contract without which it

will not generally be effectual or binding. It may take the form of a money payment, a
delivery of goods a promise of money payment. The defination of consideration in
Section 2(d) of the Indian Contract Act, 1872 shows that consideration means an act,
abstinence of promise made by the promisee or some other person at the desire of the
promisor. But consideration need not be adequate.

(iv) VOIDABLE CONTRACT : As per the Section 2(i) of the Indian Contract Act,
1872 an Agreement which is enforceable by law at the option of one or more of the
parties thereto, but not at the option of the other or others, is a voidable contract.

(v) SIMPLE MORTGAGE : As per the Section 58(b) of the Transfer of property
Act, 1882, two conditions are necessary for the creation of a simple mortgage (i) the
mortgagor must personally undertake to repay the mortgage money and (ii) the parties
must expressly or impliedly agree that in the event of the mortgagor failing to repay
according to his contract, the mortgagee shall have a right to cause the mortgaged
property to be sold.

Answer the following :

(vi) When does the communication of acceptance complete under the Indian Contract
Act, 1872.

As per the section 4 of the Indian Contract, 1872, the communication of a

proposal is complete when it becomes to the knowledge of the person to whom it is
made.

The communication of acceptance is complete as against the proposor, when

it is put in a course of transmission tom him as to be out of the power of the acceptor.

As against the acceptor when it comes to the knowledge of the proposer.

(vii) What does the preamble to the constitution of Indian contain?

It contains ideals and aspiration of constitution in short. It is key to open the

mind of the makers of constitution and shows the general purpose for which they
prepared the constitution.

(viii) Died intestate Explain.

According to Section 30 of the Indian Succession Act, a deceased person

is deemed to have died instestate in the following situations:

(a) When he has not left a Will in respect of his property.

(b) When he has left a Will in respect of his property, but the Will is snot
capable of taking effect.
(ix) Family under the Urban Land (Ceiling and Regulation ) Act, 1976.

The term has been defined in Section 2(f) of the Act. In relation to a person
(obiously natural person) it means the individual himself , his or her wife or husband
and their unmarried minor children. Property held by husband and wife should be
clubbed together for the purpose of filing the statement under the act.

(x) Whether protection under Article 14 of the Constitution of India is available to

a person who is not a citizen.

The protection under Article 14 is available not only to a citizen of India but
also to the persons, who are not citizens of India since the said Article
provides that the state shall not deny to any person equality before the Law
within the territory law whereas the other fundamental rights are meant for
only citizens of India save and except Article 21 of the Constitution of India.
1. What is Land appurtenant for non-residential Multi-Storeyed Buildings (5 Marks each)
as per the provision of Urban Land Ceiling and Regulation Act?

A non-residential building irrespective of its size is entitled to land appurtenant

equivalent to that fixed under the building regulations subject to a maximum of 500 sq.
metres only. This may present difficulties in the case of multi-storeyed buildings because it
may not provide adequate space for parking etc. This may result in real hardship. To remove
this hardship, it is necessary that each person holding such a building should apply for grant
of exemption under Section 20(1) (b)of the Act to the state Government for exempting the
required land as land appurtenant to the building held by him and the State Government may
grant exeption in such cases subject to such terms and conditions as may deem fit.

2. Write in brief essentials of an equitable mortgage.

As per the provisions of Section 58 (f) of the Transfer of property Act, 1882 a Debtor
can create mortgage by depositing of title deeds. When a debtor deposits the title deeds of his
immovable property, wherever situate, with the creditor or his duly authrorised agent with the
specific intention of creating a security for the debt. This act of deposit with the specified
intention creates a valid mortgage upon all properties comprised in the title deeds. So a
mortgage by deposit of title deeds is called equitable mortgage. So the three essentials of
equitable mortgage are (i) a debt; (ii) deposit of the title deeds; (iii) an intention that the deeds
shall be security for the debt.

3. What is sound mind for the purpose of contracting ?

As per Section 12 of the Indian Contract Act, 1872, a person is said to be of sound
mind for the purpose of making a contract of at the time when he makes it, he is capable of
understanding it and of forming a rational judgment as to its effect upon his interests.

A person, who is usually of unsound mind, but occasionally of sound mind, may
make a contract when he is of sound mind.

A person who is usually of sound mind, but occasionally of unsound mind, may not
make a contract when he is of unsound mind.

4. What are the choices available to the Testator for signing of his Will under the Indian
Succession Act?

As regards signing of the Will, Section 63 ( C ) gives the following choices :

(i) the Testator may himself put his signature :

(ii) he may affix his mark to the Will (instead of signing it).
(iii) he may direct some other person to sign the Will in his presence.

In any of three cases, the Will shall be deemed to have been signed duly.

5. Is there any scope for passing an Order by the Court as the interim measures under The
Arbitration and conciliation Act, 1996, discuss in brief.
 Section 9 of the Arbitration and Conciliation Act, 1996, deals with the interim
measure by the Court.

A partly may, before or during arbitral proceedings or at any time after making of the
arbitral award but before it is enforced in accordance with Section 36, apply to the Court for
an interim measure of protection in respect of any of the following matters-

(a) the preservation, interim custody or sale of any goods, which are the subject of the
arbitration proceeding.
(b) Securing the amount in dispute in the arbitration.
(c) the detention, preservation or inspection of any property or thing which is the subject
matter in arbitration for the purpose of obtaining full information or evidence.
(d) Interim injunction or the appointment of Receiver.
(e) Such other interim measure of protection as may to the Court to be just and
convenient.

6. (a) What is liquidated Damages ?

(b) What is the consequence of breach of contract as per the Indian Contract Act,
1872.

(a) Liquidated damages means where the sum consists of Liquidated damages for
breach of the agreement fixed and agreed upon between the parties that very sum is a
genuine pre-estimated damage. In view of that the Court is confined to that.

(b) The general principle which is embodied in section 73 of the Indian Contract
Act, 1872 is that when there is a breach of contract, the party who suffers by the
breach is entitled to recover compensation from the other party for the loss caused to
him by such breach. But this principle is not applicable where there is a void contract
for any reason.

7. Distinction between a Lease and a Licence.

The points of distinction between a lease and a licence are as follows :

(i) In a Lease, there sis a transfer of an interest in the property, in a licence there
is no such transfer.
(ii) A Lease can be assigned but a licence can not.
(iii) A Lease cans sue trespassers but a licensee can not.
(iv) A Lease can not be revoked but a licence is ordinarily revocable.
(v) A Lease can be determined only in any of the ways provided by Law but a
licnce is determined by death of either party or by the alienation of the
property in question.

8. State the reasons when the Court can set aside an award under the Arbitration and
Conciliation Act, 1995.

As per the Arbitration and Conciliation Act, 1996, the Court can set aside an award.

(1) for the reason mentioned din Section 34(2)(a)(i) to

(2) for the reason stated in section 28(1)(a).
 (3) for the reason stated in section 34(2)(b)(ii) on ground of conflict with the
public policy of India, that is to say, if it is contrary to

(a) fundamental policy of Indian Law or

(b) the interest of India or
(c) justice and morality, or
(d) if it is patently illegal

(4) for the reason stated in Section 13(5) and 16(6).

(10 Marks each)

1. State the classes of acquisition under the Land Acquisition Act, 1894.

i) For public purpose (Section 6).

ii) For industrial concern not being a company (Section 38A).
iii) For companies for erection of dwelling houses etc. for workmen. (Section 40(1)(a).
iv) For companies engaged in work likely for public purpose (Section 40 (1)( (a).
v) For companies for some work likely to prove useful to Public ( Section 40 (1) (b).
vi) For public purpose primarily and on behalf of a Company (Sections 6 and 40).
vii) For Railway or other Companies with which the appropriate Government is bound
by agreement to provide land (Section 43).

2. Explain the essential elements of valid sale of immovable property under the Transfer
of Property Act.

The following are the eight essentials of a valid sale.

(1) The seller must be a person competent to transfer (Sect. 6).
(2) The buyer must be a person competent to be a transferee.
(3) The subject matter must be transferable immovable property (Sec. 6).
(4) There must be a transfer of ownership.
(5) The Transfer must be in exchange for a price.
(6) The price must be paid or promised, or partly paid and partly promised.
(7) There must be a registered conveyance in the case of -
(i) tangible immovable property of the value of Rs. 100/- and upwards, or
(ii) a reversion of an intangible thing of any value.
(8) In case of tangible immovable property of a value less than Rs. 100/- must either be -
(i) a registered conveyance , or
(ii) delivery of property.

3. Define Tort which classes of wrongs are excluded form the defination of Tort.

Tort means a civil wrong for which an injury or a wrong is committed with or
without force to the person or property of another. But all wrongs are not torts.

There are from classes of wrongs which are excluded from the defination of Torts.

(a) Wrongs exclusively criminal

(b) civil wrongs which create no right of action for unliquidated, but give rise
to some other form of civil remedy exclusively;
(c ) Civil wrongs which are exclusively breaches of contract. .
 (d) Civil wrongs which are exclusively breaches of trust or some other
merely equitable obligation.

4. Agreement without consideration is void explain with three examples.

To render an agreement valid as a contract, it must be shown that there

was consideration. But as per Section 25 of the Indian Contract Act 1872 an
agreement made without consideration is void unless

(i) It is in writing and registered it is expressed in writing and registered under

the law for the time being in force for the registration of documents, and is
made on account of natural love and affection between parties standing in a
near relation be each others or unless.
(ii) Or is a promise to compensate for something done., it is a promise to
compensate, wholly or in part, a person who has already voluntarily done
something for the promisor, or something which the promisor was legally
compellable to do; or unless.
(iii) Or is a promise, to pay a debt barred by limitation law , - it is a promise, made
in wilting and signed by the person to be charged therewith, or by his agent
generally or specially authorised in that behalf, to pay wholly or in part a debt
of which the creditor might have enforced payment but for the limitation of
suits.

Example : (1) A promises, for no consideration, to give to B Rs. 1,000/- . This is void
agreement.

(2) As for natural love and affection, promises to give his son B
Rs. 1,000/-. A put his promise to B into writing and registers it. It is a
valid contract.

(3) A agrees to sell his horse worth Rs. 1,000/- for Rs. 10/- only. As
consent to the agreement was freely given. Them agreement is a
contract notwithstanding the inadequacy of the consideration.
 GROUPB
(2 Marks each)

1. Define ::

(a) ANNUAL VALUE :

The sum at which the property may reasonable be expected to let from year to year.

(b) REAL ESTATE :

The term real estate embraces not only lands, but all improvements of a
permanent character placed on real estate, that are regarded as a part of the land.

(c ) TRANSFER OF SALE :

Under the Transfer of Property Act :

The essentials are as follows :

(i) there must be a (valid) transfer;
(ii) the transfer must convey the entire interest of the owner in the property
concerned;
(iii) it must be exchanged for a price, irrespective of whether it be paid or promised
or part paid and part promised.

(d) VALUATION AND APPRAISEMENT :

An appraiser is my person who values or appraises any kind of property,

real or personal or any state or interest therein or any affects whatsoever for
reward.

(e) ACT OF GOD :

An act occasioned exclusively by forces of nature without the interference of any

human agency. A misadventure or casualty is said to be caused by act of God
when it happens by the direct, immediate and exclusive operation of the forces
of nature, uncontrolled and uninfluenced by the power of man and without
human interference and is such of a character that it could not have been
prevented or escaped from by any amount of foresight and prudence. It can be a
defence against a negligence is law of Torts.

(f) PUBLIC PURPOSE UNDER THE LAND ACQUISITION ACT :

The defination under Section 3(f) of the said Act, not compendious, in not useful in
ascertaining the ambit of the expression. However the public purpose include purpose
in which the general interest of the community is directly and vitally concerned.
Anything which is useful to the public in the sense of conferring some public benefit
or conducting to some public advantage is a public purpose. But the
 Legislature has left it to the Government to say what is a public purpose and
also to declare that need of a given land for public purpose.

(g) WHAT AGREEMENTS ARE CONTRACTS ?

Section 10 of the Indian contract Act 1872 speaks of essentials of a valid

contract. All agreements are contracts if they are made by the free consent of
parties competent to contract, for a lawful consideration and with lawful
object and are not expressly declared by the contract Act to be void.

(h) ARBITRATION AWARD :

An award is the judgement decision, pronounced by the arbitrators. It is a

judicial act. The 1996 Arbitration Act contemplates four types of award namely;
interim award, additional award, settlement or agreed award and final award. As
per the present position of Law, an Arbitral Tribunal must state reasons for its
award except;

(a) When the parties have agreed that no reasons be given, or

(b) when the award is on agreed terms under Section 30 of the said Act.

Thus, a reasoned award is computrory unless exempted by the parties.

(i) FORFEITURE OF LEASE :

A lease is determined by forfeiture of lease the following are the cases where a
lease can be forfeited:

(1) In case the Lessee breaks an express condition, which provides that
on breach thereof, the Lessor may re-inter.
(2) In case the lessee renounces his character as such by setting up a title in
a third person or by claiming title in himself.
(3) Where the lessee is adjudicated insolvent and the lease provides that
the Lease without the consent of the landlord.

(j) TENANCY AT SUFFERANCE :

A person assumes possession of the leased premises under a valid lease and
continues in possession even after the expiration of the Lease without the
consent of the landlord. However, it is a trespass and the possession has no
validity in Law.

In legal fiction, it is called a tenancy at sufferance.

 (5 Marks each)

1. When the compensation for loss or damage, caused by breach of contract

is awarded?

The General principle which is embodied in Section 73 pf the Indian Contract

act, 1872 is that when there is a breach of contract, the party who suffers by
the breach, is entitled to recover compensation from the other party for the
loss caused to him by such breach.

Example : When a building contract with the Government stipulated written

notice to the Contractor at the failure of the Government to give notice prior
to stopping of the work by the contractor is entitled to claim damages for
breach of contract.

2. DOCTRINE OF PRIVITY OF CONTRACT DISCUSS.

The doctrine have been stated as the general rule of Common Law is that no
one but the parties to contract can be bound by it, or entitled under it. This
principle is known as the privity of contract. A contract can not confer any
right on one who is not a party. The doctrine implies a mutuality of will and
is interaction of parties and their successors. This doctrine prevents a third
party to in force a contract.

3. Explain the legal position pursuant to the Urban Land Ceiling and
Regulation Act.

Vacant land held in excess of the ceiling limit by a person, vests in the state.

Section 3 of the said act prohibits any person from holding any vacant land in
excess of the ceiling limit, it must be deemed that with effect from the
appointed by the owner of such Land loses his title thereto and as such he can
not be allowed to make any construction thereon. But the vacant land so
constructed upon shall continue to be a vacant land for the purpose of the said
Act. Section 10(3) of Indian Act states that the excess Land shall vest
absolutely in the State Government only with effect from the date specified in
the declaration published under the said sub-section. And their title will be
extinguished only after the excess land is acquired by the state.

4. What is non performing asset under the Securitisation and Reconstruction

of Financial Assets & Enforcement of Security Interest Act., 2002?

Non performing asset is a substitute for bad debt about which there is no
reasonable expectation of recovery. The Reserve Bank of Indias Prudential
Norms on Asset classification defines a non performing asset (NPA) as a
credit facility in respect of which the interest and or installment of principle
has remained past due for a specified of time.

An asset including a Leased asset, becomes NPA when it ceases generate

income for a bank. Any amount due to bank under any credit facility, is
overdue if it is not paid in the due date fixed by the bank.
 5. Define Easement what is required to prove / establish an easement iright ?

An easement is a right which the owner or occupier of certain Land possesses,

as such, for the beneficial enjoyment of the Land to do and continue to do
something or to prevent and continue to prevent something being done, in or
upon, or in respect of certain other land not his own.

One must prove that he is the owner or Occupier of a land for the beneficial
enjoyment of which he has certain rights over the others land.

6. How a Lease is determined ?

(a) By a efflux of time.

(b) By happening of event on which the term depends.

(c) By termination of Lessors interest.

(d) By merger

(e) By express surrender

(f) By implied surrender.

(g) By forfeiture.

(h) On expiration of Notice to quit or to determine the lease.

7. What are easements of necessity ?

An easement of necessity is an easement without which the property can not be used
at all and not merely one for the reasonable enjoyment of the property and in
considering question of easements of necessity convenience is not the test but
absolute necessity.

8. Explain two types of Damages, which are available to a person in a case of Law of
Torts.

Damages are two kinds : (1) general and (ii) special.

General Damages are non-pecuniary losses, which can not be calculated in terms of
money. Such non pecuniary losses are as follows :-

(a) in respect of pain, suffering, stock suffered by the assult.

(b) Loss of the amenities of life example, a person suffers by reduced enjoyment
of life due to the damage, caused by assult.

(c) Loss of expectation of life.

(d) inconvenience and discomfort etc.

 But in case of Special damages, damages which can be laid and proved in
terms of figures. Example : Recovery of medical expenses as a result of injury.

(10 Marks each)

1. Define Award of Compensation as provided under Section 23 of Land Acquisition

Act, 1894.

The true meaning of Section 23(1) of the said Act is that the amount of compensation
to be awarded for the Land shall be consist of various components and one of the
components shall be the market value of the Land at the date of the notification under
Section 4 (1) of the said Act.

The General Principles relating to Compensation are as follows :-

(a) The value to be ascertained is the value to the Vendor, not its value to the
purchaser.

(b) In fixing the value to the Vendor all restrictions imposed on the user
and enjoyment of the land in his lands are to be taken into account.

(c) Market price is not a conclusive test of real value.

(d) Increase in value consequent on the execution of the undertaking for, or in

connection with which the purchase is made must be disregarded.

(e) The value to be ascertained is the price to be paid for the land will all its
potentialities in future.

2. What is the relief against forfeiture for non-payment of rent under the Transfer of
property Act?

Where a forfeiture is incurred by non-payment of rent and the Lessor elects to

determine Lease, he must, first give notice to that effect and the Lessee is bound to vacate the
Premises. If he does not do so, the Lessor must file a suit for ejectment. And the Lessor is
entitled to a decree Section 114 of the Act, provides for such relief. The term for such relief
are that the lessee must pay or tender rent to the Lessor. However, this section does not apply
to cases where the tenancy is form month to month with an option to the lessee to renew nor
where a tenancy is terminated by a notice to quit for non-payment of rent under Section
111(g) of the Act.

3. (a) State the ingredients of Mortgage.

(b) When does the Mortgage take effect?

(a) The ingredients of Mortgage are as follows :-

(i) There must be a transfer of an interest.

(ii) Such interest must be in regard to specific immovable property.

 (iii) The transfer must be made to secure the payment of a present and future loan
of money or existing or future debt or the performance of and engagement
resulting in a pecuniary liability.

(b) A mortgage is not complete and ready to take effect until the necessary formalities
for effecting it have been complied with. The presumption in case of every mortgage
effected by a registered instrument is that it effects from the date of execution of the
Deed although no consideration money has been paid. When the mortgage is effected
by delivery of possession of the mortgaged property, it takes effect from the date of
delivery under the parties have otherwise agreed.

4. How can easement be acquired under the Easement Act,

1982? An easement can be acquired by three methods

(i) by express or implied grant

(ii) by user as of right for 20 years

(iii) by immemorial user based on lost grant.

An easement can be acquired by an owner of a immovable property for beneficial

enjoyment of a right by any person in possession thereof, the incidence of easement
and of lost grant is almost the same. And easement is also created by grant which may
be presumed for long use or possession although the actual transaction of the grant
can not discovered.

A party using a particular land for a particular purpose from time immemorial can be
said to have earned that right consequent to a lost grant. No period is fixed for the
time of immemorial, it depends upon on fact of each case.