CSEET Legal Aptitude and Logical Reasoning Syllabus

What is a One Person Company (OPC) under the Companies Act, 2013?

An OPC (Section 2(62)) is a company with only one person as its member. It is a private company concept introduced by the 2013 Act, requiring a nominee to be named.

Differentiate between a company limited by shares and a company limited by guarantee.

In a company limited by shares, members' liability is limited to the unpaid amount on their shares. In a company limited by guarantee, members' liability is limited to the amount they undertake to contribute to the assets in the event of winding up.

What is the minimum and maximum number of directors for a public and private company?

Public company: minimum 3 directors; Private company: minimum 2 directors; OPC: minimum 1 director. Maximum for any company: 15 directors (can be exceeded by passing a special resolution).

What are the key documents required to be filed for the formation/incorporation of a company?

Memorandum of Association (MOA), Articles of Association (AOA), declaration of compliance, details of registered office, and consent of directors — filed with the Registrar of Companies (ROC) to obtain the Certificate of Incorporation.

What is a 'Certificate of Incorporation' and what is its effect?

It is the document issued by the Registrar of Companies certifying that a company is registered. It is conclusive evidence that the company is duly incorporated and brings the company into legal existence as a separate entity.

What is the Memorandum of Association (MOA) and what are its clauses?

The MOA is the charter/constitution of the company defining its scope. Its clauses are: Name Clause, Registered Office (Situation) Clause, Object Clause, Liability Clause, Capital Clause, and Subscription/Association Clause.

What is the doctrine of 'ultra vires' in relation to the MOA?

Any act done by a company beyond the powers/objects stated in its Memorandum is 'ultra vires' (beyond powers) and is void and not binding on the company. Established in Ashbury Railway Carriage Co. v. Riche (1875).

What are the Articles of Association (AOA) and how do they differ from the MOA?

The AOA contains the rules and regulations for internal management of the company. The MOA defines the company's relationship with the outside world and its objects (supreme document); the AOA is subordinate to the MOA and governs internal affairs.

What is the doctrine of 'constructive notice' regarding MOA and AOA?

Since MOA and AOA are public documents registered with ROC, every person dealing with the company is deemed to have knowledge of their contents, whether or not they actually read them.

What is the doctrine of 'indoor management' (Turquand Rule)?

Outsiders dealing with a company are entitled to assume that the internal procedures/formalities have been duly complied with. They are not bound to inquire into internal proceedings. Established in Royal British Bank v. Turquand (1856).

How is a 'contract' defined under the Indian Contract Act, 1872?

Under Section 2(h), a contract is 'an agreement enforceable by law'. Thus, Contract = Agreement + Enforceability by law.

What are the essential elements of a valid contract under Section 10?

Offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free consent, lawful object, certainty, possibility of performance, and not expressly declared void.

Distinguish between a void agreement and a voidable contract.

A void agreement [Sec 2(g)] is not enforceable by law from the beginning. A voidable contract [Sec 2(i)] is enforceable at the option of one party (the aggrieved party) but not at the option of the other — valid until rescinded.

What is the difference between an offer (proposal) and an invitation to offer?

An offer [Sec 2(a)] is a final willingness to enter a contract that, when accepted, forms an agreement. An invitation to offer (e.g., goods displayed in a shop, advertisements, tenders) merely invites others to make offers; it cannot be accepted to form a contract.

State the essentials of a valid acceptance.

Acceptance must be absolute and unqualified, communicated to the offeror, in the prescribed/reasonable manner, given within a reasonable time, and made while the offer is still alive (before lapse/revocation).

When is communication of offer and acceptance complete (Section 4)?

Communication of an offer is complete when it comes to the knowledge of the offeree. Communication of acceptance is complete: as against the proposer when it is put in course of transmission; as against the acceptor when it comes to the knowledge of the proposer.

How is 'consideration' defined under the Indian Contract Act, 1872?

Under Section 2(d), consideration is when, at the desire of the promisor, the promisee or any other person does or abstains from doing, or promises to do or abstain from doing, something. It is the price for the promise ('quid pro quo').

State the general rule and key exceptions to 'no consideration, no contract' (Section 25).

General rule: an agreement without consideration is void. Exceptions: (1) natural love and affection (written & registered, between near relations), (2) compensation for past voluntary services, (3) promise to pay a time-barred debt (in writing & signed).

Can consideration move from a person who is not the promisee under Indian law?

Yes. Under Indian law, consideration may move from the promisee 'or any other person' (a stranger to consideration can sue). This differs from English law where consideration must move from the promisee.

Who is competent to contract under Section 11 of the Indian Contract Act?

A person who (1) is of the age of majority (18 years), (2) is of sound mind, and (3) is not disqualified from contracting by any law to which they are subject.

What is the legal status of an agreement entered into by a minor?

An agreement with a minor is void ab initio (void from the beginning). A minor cannot ratify it on attaining majority. This was established in Mohori Bibee v. Dharmodas Ghose (1903).

Is a minor liable for 'necessaries' supplied to him?

A minor is not personally liable, but the person who supplies necessaries (suited to the minor's condition in life) is entitled to be reimbursed from the property/estate of the minor (Section 68 — quasi-contract).

What is 'free consent' under Section 14 of the Indian Contract Act?

Consent is free when it is not caused by coercion (Sec 15), undue influence (Sec 16), fraud (Sec 17), misrepresentation (Sec 18), or mistake (Sec 20-22). Consent means 'consensus ad idem' — agreeing upon the same thing in the same sense (Sec 13).

Distinguish between coercion and undue influence.

Coercion (Sec 15) involves physical force or threat (committing/threatening acts forbidden by IPC). Undue influence (Sec 16) involves mental/moral pressure where one party dominates the will of another due to a relationship. Both make the contract voidable.

What is the next number in the series: 2, 6, 12, 20, 30, ...?

42. The differences increase by 2 each time (4, 6, 8, 10, 12); 30 + 12 = 42. (Pattern: n(n+1) → 1x2, 2x3, 3x4, 4x5, 5x6, 6x7=42.)

Find the next term: 3, 6, 12, 24, 48, ...?

96. Each term is multiplied by 2 (geometric progression with common ratio 2); 48 x 2 = 96.

In a certain code, if 'CAT' is written as 'DBU', how is 'DOG' written?

'EPH'. Each letter is shifted forward by one position (+1): D→E, O→P, G→H.

In a coding system, if 'A=1, B=2, ... Z=26', what is the code for the word 'CAB'?

3-1-2. C=3, A=1, B=2.

Syllogism: All cats are animals. All animals are living things. What necessarily follows?

All cats are living things. (Valid conclusion through transitivity of the universal premises.)

Blood Relations: Pointing to a man, a woman said, 'His mother is the only daughter of my mother.' How is the woman related to the man?

She is his mother. (The only daughter of the woman's mother is the woman herself; so the man's mother is the woman.)

Seating Arrangement: Five friends A, B, C, D, E sit in a row facing north. C is in the middle. A is to the immediate left of C and B is to the immediate right of C. D is at the extreme left end. Who sits at the extreme right end?

E. Order from left to right: D, A, C, B, E. So E is at the extreme right end.