Podcast
Questions and Answers
Which of the following scenarios allows a stranger to sue on a contract?
Which of the following scenarios allows a stranger to sue on a contract?
- A trust arrangement (correct)
- A promise made in passing
- A stranger wishing to benefit from a gift
- An informal handshake agreement
A person who is not a party to a contract can sue upon it if the contract was made for their benefit.
A person who is not a party to a contract can sue upon it if the contract was made for their benefit.
False (B)
What is the doctrine of privity of contract?
What is the doctrine of privity of contract?
A legal principle stating that only the parties to a contract can sue or be sued on it.
An agreement with an unlawful _______ cannot be enforced by law.
An agreement with an unlawful _______ cannot be enforced by law.
Match the types of unlawful consideration or objects with their descriptions:
Match the types of unlawful consideration or objects with their descriptions:
What is one of the consequences of the doctrine of privity of contract?
What is one of the consequences of the doctrine of privity of contract?
All agreements, regardless of their object or consideration, are enforceable by law.
All agreements, regardless of their object or consideration, are enforceable by law.
Which of the following is NOT a ground to rebut a case of undue influence?
Which of the following is NOT a ground to rebut a case of undue influence?
List one exception where a stranger can sue in relation to a contract.
List one exception where a stranger can sue in relation to a contract.
A parda-nishin woman must wear a burga to be classified as such.
A parda-nishin woman must wear a burga to be classified as such.
What is the key distinction between coercion and undue influence?
What is the key distinction between coercion and undue influence?
A woman who observes complete seclusion due to community customs is called a ________.
A woman who observes complete seclusion due to community customs is called a ________.
Match the terms to their definitions:
Match the terms to their definitions:
What does the Privy Council emphasize in transactions with parda-nishin women?
What does the Privy Council emphasize in transactions with parda-nishin women?
A stranger can exercise undue influence over a contracting party.
A stranger can exercise undue influence over a contracting party.
List two requirements for proving the validity of a contract with a parda-nishin woman.
List two requirements for proving the validity of a contract with a parda-nishin woman.
What type of agreement involves a stranger assisting someone in litigation without any legal interest in the case?
What type of agreement involves a stranger assisting someone in litigation without any legal interest in the case?
Champerty agreements are illegal and unenforceable in India.
Champerty agreements are illegal and unenforceable in India.
What must be considered to judge the fairness of an agreement in champerty?
What must be considered to judge the fairness of an agreement in champerty?
According to English Law, agreements for maintenance and ____ are illegal.
According to English Law, agreements for maintenance and ____ are illegal.
Which of the following scenarios is considered extortionate and inequitable?
Which of the following scenarios is considered extortionate and inequitable?
An agreement in India can be considered valid if it is made with a bona fide intention to assist a claim believed to be just.
An agreement in India can be considered valid if it is made with a bona fide intention to assist a claim believed to be just.
Match the following terms with their definitions:
Match the following terms with their definitions:
Agreements that are made for improper objects, such as ____ in litigation, can be void.
Agreements that are made for improper objects, such as ____ in litigation, can be void.
What is the status of collateral transactions related to wagering agreements in India, excluding Maharashtra?
What is the status of collateral transactions related to wagering agreements in India, excluding Maharashtra?
In the state of Maharashtra, wagering transactions are generally considered legal and enforceable.
In the state of Maharashtra, wagering transactions are generally considered legal and enforceable.
What can a person do in recovery of a loan to pay a gambling debt?
What can a person do in recovery of a loan to pay a gambling debt?
An agreement by way of wager is _____ but not forbidden by law.
An agreement by way of wager is _____ but not forbidden by law.
Which act has declared wagering transactions as illegal?
Which act has declared wagering transactions as illegal?
Match the following cases with their outcomes regarding wagering agreements:
Match the following cases with their outcomes regarding wagering agreements:
Collateral transactions related to wagers have been declared void in all jurisdiction across India.
Collateral transactions related to wagers have been declared void in all jurisdiction across India.
What differentiates a contingent contract from a wager?
What differentiates a contingent contract from a wager?
What happens if the offeree fails to accept the offer within the specified time period?
What happens if the offeree fails to accept the offer within the specified time period?
An offer can still be accepted if it is not within a reasonable time frame.
An offer can still be accepted if it is not within a reasonable time frame.
What is revocation in the context of an offer?
What is revocation in the context of an offer?
Revocation is effective when the revocation is actually received by the ______.
Revocation is effective when the revocation is actually received by the ______.
Match the following situations with their outcomes regarding an offer:
Match the following situations with their outcomes regarding an offer:
Which of the following is NOT a condition that could void an offer?
Which of the following is NOT a condition that could void an offer?
Revocation of an offer can be communicated in any manner.
Revocation of an offer can be communicated in any manner.
What factors do courts consider when determining what constitutes a 'reasonable time' for offer acceptance?
What factors do courts consider when determining what constitutes a 'reasonable time' for offer acceptance?
For ongoing contracts, when is a minor liable under the contract as if they were an adult?
For ongoing contracts, when is a minor liable under the contract as if they were an adult?
All void contracts are agreements enforceable by law.
All void contracts are agreements enforceable by law.
What must a minor do to ratify a contract for it to be enforceable once they reach adulthood?
What must a minor do to ratify a contract for it to be enforceable once they reach adulthood?
Contracts that are prejudicial and unfair to minors are ______.
Contracts that are prejudicial and unfair to minors are ______.
Match the type of contract with its definition:
Match the type of contract with its definition:
Which of the following statements is true regarding voidable contracts?
Which of the following statements is true regarding voidable contracts?
A minor is always bound by a contract for a single transaction.
A minor is always bound by a contract for a single transaction.
What is the primary characteristic of void contracts?
What is the primary characteristic of void contracts?
Flashcards
Undue Influence in Relationships
Undue Influence in Relationships
Certain relationships, like mother-daughter, husband-wife, and landlord-tenant, are presumed to have potential for undue influence.
Rebutting Undue Influence
Rebutting Undue Influence
To argue against undue influence, one must demonstrate full disclosure, fair consideration, and independent legal advice.
Parda-Nishin Woman
Parda-Nishin Woman
A woman living in seclusion according to cultural customs, unable to act independently.
Parda-Nishin Contract Concerns
Parda-Nishin Contract Concerns
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Coercion vs. Undue Influence
Coercion vs. Undue Influence
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Coercion Definition
Coercion Definition
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Independent Legal Advice
Independent Legal Advice
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Full Disclosure
Full Disclosure
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Stranger to Contract
Stranger to Contract
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Privity of Contract
Privity of Contract
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Unlawful Consideration/Object
Unlawful Consideration/Object
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Exceptions to Stranger Suitability
Exceptions to Stranger Suitability
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Void Agreement
Void Agreement
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Assignment of Rights (Contract)
Assignment of Rights (Contract)
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Lawful Consideration
Lawful Consideration
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Validity of Gift
Validity of Gift
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Maintenance
Maintenance
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Champerty
Champerty
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Illegal Maintenance/Champerty (English Law)
Illegal Maintenance/Champerty (English Law)
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Valid Maintenance/Champerty (Indian Law)
Valid Maintenance/Champerty (Indian Law)
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Extortionate Agreement
Extortionate Agreement
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Unconscionable Agreement
Unconscionable Agreement
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Public Policy
Public Policy
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Fair agreement to fund a suit
Fair agreement to fund a suit
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Collateral Transaction
Collateral Transaction
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Wagering Agreement
Wagering Agreement
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Enforceable Collateral Transaction (most of India)
Enforceable Collateral Transaction (most of India)
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Contingent Contract
Contingent Contract
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Void Contract
Void Contract
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Unlawful Contract (Maharashtra)
Unlawful Contract (Maharashtra)
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Bombay Act of 1865
Bombay Act of 1865
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Contingent Contract vs Wager
Contingent Contract vs Wager
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Offer Termination: Time Lapse
Offer Termination: Time Lapse
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Offer Termination: Death or Incapacity
Offer Termination: Death or Incapacity
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Offer Revocation
Offer Revocation
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When is Revocation Effective?
When is Revocation Effective?
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Offer Rejection
Offer Rejection
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What is an Offer?
What is an Offer?
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Acceptance
Acceptance
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Contract Formation
Contract Formation
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Minor's Ongoing Contracts
Minor's Ongoing Contracts
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Minor's Single Transaction Contracts
Minor's Single Transaction Contracts
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Minor's Unfair Contracts
Minor's Unfair Contracts
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Voidable Contract
Voidable Contract
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What makes a contract voidable?
What makes a contract voidable?
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How does a minor ratify a contract?
How does a minor ratify a contract?
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Study Notes
Business Law Study Notes
- Business law encompasses regulations governing commercial transactions in a specific jurisdiction.
- Specific laws, acts and regulations apply in different jurisdictions.
- Essential elements of a valid contract must be present in all jurisdictions.
Unit 1: Essentials of Contract
- The Indian Contract Act 1872 governs contracts in India (excluding Jammu & Kashmir).
- A contract is a legally enforceable agreement between two or more parties.
- Essential elements of a valid contract:
- Offer and acceptance
- Intention to create legal relationship
- Lawful consideration
- Capacity of the parties
- Free consent
- Lawful object
- Certainty of meaning
- Possibility of performance (physical and legal)
- Not expressly declared void or illegal
- Legal formalities (where required)
Unit 2: Offer and Acceptance
- A valid offer requires clear intent.
- An offer must be communicated to the offeree.
- Acceptance must mirror the terms of the offer.
- An invitation to treat is not an offer.
- Communication of acceptance is essential.
Unit 3: Capacity of Parties
- Minors (individuals under the age of majority) generally lack the capacity to contract (but there are exceptions for necessaries).
- Persons of unsound mind generally lack the capacity to contract.
- Any legal disabilities may affect a person's contract ability.
Unit 4: Free Consent
- Free consent is essential for a valid contract.
- Consent is vitiated by:
- Coercion
- Undue influence
- Fraud
- Misrepresentation
- Mistake
- Contracts induced by coercion, undue influence, fraud, misrepresentation, or mistake can be voidable.
Unit 5: Consideration and Legality of Object
- Consideration is the price paid for a promise.
- It must be sufficient and lawful.
- A contract without consideration is void.
- An unlawful object or consideration will render a contract void.
Unit 6: Void Agreements
- Void agreements are those agreements that are unenforceable by a court of law under Indian Law.
- Void agreements lack one or more of the essential elements of a valid contract.
Unit 7: Various Specific Types of Contracts
- A discussion of various specific types of contracts, such as contract for sale of goods, insurance contracts (including marine, fire and life) and indemnity contracts will be covered in detail
Unit 8: Remedies for Breach of Contract and Quasi Contracts
- Damages, specific performance, injunction, and rescission are remedies for breach of contract.
- Quasi-contracts are obligations imposed by law when no contract exists.
Unit 9: Indemnity and Guarantee
- Indemnity is a promise to save another from loss.
- Guarantee is a promise to perform the liability of another.
Unit 10: Bailment and Pledge
- Bailment is the temporary delivery of goods for a purpose.
- Pledge is a bailment of goods as security.
Unit 11: Contract of Agency
- Agency is a contract where one person (agent) acts on behalf of another (principal).
- Agency may be express (explicitly agreed upon) or implied (inferred from circumstances).
- Agents have duties to act in good faith.
Unit 12: Partnership
- Partnership is an agreement between two or more persons to share profits of a business.
- Key aspects of partnership include mutual agency, shared liability, and dissolution arrangements
Unit 13: Sale of Goods
- Key concepts in sale of goods contracts include goods, price, the transfer of property/ownership,
- conditions, and warranties.
Unit 14: Rights, Duties and Liabilities of Partners
- Explanation of the rights and responsibilities of partners towards each other and third parties.
Unit 15: Limited Liability Partnership (LLP)
- LLPs are a hybrid legal structure incorporating features of companies and partnerships.
- Key characteristics, formation and differences from other business structures.
Unit 16: Dissolution of Firm
- Procedures and circumstances surrounding the ending of partnerships
Unit 17-20: Additional Contracts (Sale and Purchase, Transfer of Ownership, etc)
- Further in-depth details on contract types involving goods, ownership/transfer and other specific cases.
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Description
Test your understanding of contract law and the doctrine of privity. This quiz covers key concepts including unlawful consideration, undue influence, and exceptions for strangers to sue. Challenge your legal knowledge with various scenarios and definitions integral to understanding contracts.