Q1.

ANS. A legitimate contract requires free consent, which implies that the agreement must be formed
willingly and without compulsion, undue influence, fraud, deception, or error. Free consent means that
both parties to the deal agreed to the conditions of the contract without being under any external or
internal coercion or duress.
Examples of how Free Consent in a contract would be affected are:

1. Coercion: Coercion occurs when one party is compelled or intimidated by the other side to engage
into an arrangement. For example, if A threatens to murder B if he does not sign a contract, then B's
consent is not free.

2. Undue Influence: Undue influence occurs when a single party is in a position to overpower the will of
the opposing party and exploits that position to gain an unfair advantage. For example, if a person took
advantage of another person's mental or emotional state to engage into an agreement, the second
party's consent is not free.

3. Fraud: Fraud occurs when one party knowingly hides or misrepresents key information. For example if
A buys a car to B while concealing the information that the car was involved in an accident, B's consent
is not free.

4. Misrepresentation: Misrepresentation occurs when one person makes an untrue claim, whether
intentionally or unintentionally. For example, if A sells an area of land to B while claiming that it was
never flooded, but it has, then B's assent is not free.

5. Mistake: A mistake occurs when one or both parties sign into an agreement based on an incorrect
understanding of the terms. For example, if A and B sign into a contract believing they are committing to
sell and purchase a vehicle but, in fact, they are committing to sell and buy a motorcycle, then their
assent is not free.

To summarise, free consent is an essential component of a legitimate contract, and it must be received
willingly and without force, undue influence, fraud, misrepresentation, or error. If any of these events
occur, the parties' consent is not deemed free, then the agreement is not legally enforceable.
Q2.
ANS. Here are two examples of judicial interventions in India to safeguard the environment or avoid
environmental degradation/pollution:

Vellore Citizens Welfare Forum vs. Union of India (1996): The Supreme Court of India intervened in this
case to safeguard the environment from pollution produced by tanneries in and around Vellore, Tamil
Nadu. The Court ordered that the tanneries establish effluent treatment plants to clean their
wastewater before discharging it into the rivers, and that tanneries that did not comply with the ruling
be closed. The Court's ruling in this case established a precedent for industrial pollution regulation in
India, and it has been cited in several following instances.

2. M.C. Mehta v. Union of India (1986): The Supreme Court of India intervened in this historic case to
safeguard the Taj Mahal, a World Heritage Site recognised by UNESCO, from pollution generated by
industry in and around Agra. The Court ordered the closure of nearly 200 companies located inside the
Taj Trapezium Zone (a 10,400-square-kilometer region around the Taj Mahal), as well as steps to limit
pollution from automobile traffic, generators, and other sources. The Court's ruling in this case not only
saved the Taj Mahal, but it also created the notion of "polluter pays" in India, this implies that
companies and individuals that damage the environment should incur the price of cleaning it up.
Q3(a).
ANS. We can explain the application of the programmes under Provident Fund, as well as how Provident
Fund is calculated and apportioned.
The Provident Fund (PF) is a type of social security system available to Indian employees. A portion of
the employee's pay is withdrawn as a contribution to the fund, which is handled through the Employees'
Provident Fund Organisation (EPFO) under the PF programme.

The PF plan applies to all firms with at least 20 staff members. In some situations, firms with less than 20
employees might be eligible for coverage under the system provided specific conditions are met.

Employee Provident Fund (EPF) along with Employee Pension system (EPS) are the two components of
the PF system.

Both the worker and the employer must pay 12% of the worker's starting salary and expense allowance
(if applicable) to the EPF fund. The employer contribution is split in two: 3.67% goes to the EPF and the
rest of the 8.33% goes to the EPS. The EPF receives the whole employee contribution.

Employees with a minimum of ten years of service are eligible for pension benefits under the EPS
component. The employer is the sole one who contributes to the EPS, at an average of 8.33% of the
worker's basic salary and expense allowance (if any).

The Provident Fund is calculated and allocated as follows:

- Both the employee and the employer contribute 12% of the employee's base wage and dearness
allowance if any are present.

- The employer contributes 8.33% of the worker's basic pay and dearness allowance if any are present to
EPS.

- The overall PF allocation is then divided into three components: EPF, EPS, and managerial expenses.

- Of an employer's allocation to EPF, 3.67% goes to EPF, while remaining 8.33% goes to EPS.

- Administrative fees are paid by an employer and are presently fixed at 0.5% of total compensation.

It is vital to note that both the employer and the employee must contribute to the PF plan, and
noncompliance with the PF requirements can result in penalties and legal action.
Q3 (b)
ANS. Gratuity is a retirement benefit given to employees who have worked for an organisation for at
least five years. It is a one-time payment provided by the company to the employee as a symbol of
gratitude for the employee's services rendered throughout their employment.

Any staff member who has served a minimum of five years of continuous employment with an
organisation is entitled to gratuity under the Provision of Gratuity Act of 1972. However, the Act
provides for some conditions in which an employee may be entitled for gratuity even though they did
not complete five years of duty, such as death or disablement.

The payment of gratuity is based on the method provided in the Act. The following is the method:

Gratuity = (last received pay * number of year served completed * 15) / 26

In this context, "last received salary" refers to an employee's base wage plus dearness allowance and
any additional fixed monthly payment that they were entitled to as part of their employment. The term
"a number of completed periods of duty" refers to the entire number of years and any portion of a year
during which the employee has worked continuously for the organisation. If an individual completed 5
years & 7 months of employment, it is considered 6 years of service.

The component "15" in the calculation reflects 15 days of pay for each year of service completed. The
element "26" denotes the number of workdays in a month.

It is vital to remember that the Settlement of Gratuity Act, 1972 currently limits the highest amount of
gratuity paid to an employee at Rs. 20 lakhs.