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Questions and Answers
What are the essential elements of a valid contract?
What are the essential elements of a valid contract?
Offer, acceptance, consideration, capacity, lawful object.
What are the classifications of contracts?
What are the classifications of contracts?
Bilateral, unilateral, executory, executed, expressed, implied.
What are the provisions of capacity to contract?
What are the provisions of capacity to contract?
Age, sound mind, not disqualified by law.
What are the rules regarding valid acceptance?
What are the rules regarding valid acceptance?
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What is the discharge of a contract due to impossibility of performance?
What is the discharge of a contract due to impossibility of performance?
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What are the different types of agreements declared void?
What are the different types of agreements declared void?
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What is the difference between undue influence and coercion?
What is the difference between undue influence and coercion?
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What are the rules of a contingent contract?
What are the rules of a contingent contract?
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What are the essential elements of a contract of guarantee?
What are the essential elements of a contract of guarantee?
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What is the difference between a contract of guarantee and a contract of indemnity?
What is the difference between a contract of guarantee and a contract of indemnity?
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What are the different types of agents?
What are the different types of agents?
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What are the essential elements of a contract of bailment?
What are the essential elements of a contract of bailment?
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What are the essential elements of a contract of sale?
What are the essential elements of a contract of sale?
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What is the doctrine of Caveat Emptor?
What is the doctrine of Caveat Emptor?
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What are the implied conditions under the Sale of Goods Act?
What are the implied conditions under the Sale of Goods Act?
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What is the difference between a sale and a hire-purchase agreement?
What is the difference between a sale and a hire-purchase agreement?
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What is the difference between a promissory note and a bill of exchange?
What is the difference between a promissory note and a bill of exchange?
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What are the essential elements of a promissory note?
What are the essential elements of a promissory note?
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What are the characteristics of negotiable instruments?
What are the characteristics of negotiable instruments?
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What are the different types of cheques?
What are the different types of cheques?
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Study Notes
Essential Elements of a Valid Contract
- Agreement: Offer and Acceptance
- Consideration: Something of value exchanged
- Capacity: Legal ability to contract
- Legality: Contract must be legal
- Intention to create legal relations: Parties must intend to be bound
Classification of Contracts
- Bilateral and Unilateral Contracts
- Express and Implied Contracts
- Void, Voidable, and Valid Contracts
- Executed and Executory Contracts
Provisions of Capacity to Contract
- Minors: Generally lack capacity to contract
- Persons of unsound mind: Lack capacity if unable to understand contract
- Corporations: Have capacity to contract within their objects
Rules Regarding Valid Acceptance
- Must be absolute and unqualified
- Must be communicated to the offeror
- Must conform to the offer's terms
- Must be made within a reasonable time
Discharge of a Contract Due to Impossibility of Performance
- Supervening impossibility: Event makes performance impossible
- Frustration of contract: Purpose of contract becomes impossible
- Doctrine of frustration: Law excuses performance due to impossibility
Different Types of Agreements Declared Void
- Agreements without consideration
- Agreements in restraint of trade
- Agreements in restraint of marriage
- Agreements by way of wager
- Agreements against public policy
Difference Between Undue Influence and Coercion
- Undue influence: Unfair advantage taken of a weaker party
- Coercion: Use of force or threat to induce contract
- Both can render a contract voidable
Rules of A Contingent Contract
- Dependent on a future event
- Performance is conditional
- Contract may be discharged if the event does not occur
Essential Elements of a Contract of Guarantee
- Principal debtor: Person primarily liable
- Creditor: Person owed money
- Guarantor: Person guaranteeing payment
- Consideration: Guarantor must receive something in return
Difference Between a Contract of Guarantee and a Contract of Indemnity
- Guarantee: Guarantor promises to be liable if the debtor fails to pay
- Indemnity: Indemnifier promises to protect the indemnitee from loss
- Guarantee is secondary liability, indemnity is primary liability
Different Types of Agents
- Universal agent: Power to act on behalf of principal in all matters
- General agent: Authority to act within a specific area of business
- Special agent: Authority to act in a specific transaction
Essential Elements of a Contract of Bailment
- Bailor: Person delivering goods
- Bailee: Person receiving goods
- Delivery of goods: Bailor must deliver goods to bailee
- Contractual terms: Agreement on terms of bailment
Essential Elements of a Contract of Sale
- Agreement: Buyer and seller agree on price and terms
- Subject matter: Goods are identified and specific
- Consideration: Payment of price by buyer
- Transfer of ownership: Title to goods passes from seller to buyer
Doctrine of Caveat Emptor
- Buyer beware
- Buyer is responsible for inspecting goods before purchase
- Seller is not liable for defects unless disclosed
Implied Conditions Under the Sale of Goods Act
- Title: Seller has good title to goods
- Description: Goods correspond to description
- Quality: Goods are of merchantable quality
- Fitness for purpose: Goods are fit for intended purpose
Difference Between a Sale and a Hire-Purchase Agreement
- Sale: Transfer of ownership immediately upon payment
- Hire-purchase: Ownership remains with seller until final payment
- Hire-purchase agreement creates a debt and allows for repossession
Difference Between a Promissory Note and a Bill of Exchange
- Promissory Note: Written promise to pay a certain sum
- Bill of Exchange: Written order to pay a certain sum
- Both are negotiable instruments and can be transferred
Essential Elements of a Promissory Note
- Unconditional promise to pay
- Fixed sum of money
- Payable at a certain time
- Must be signed by the maker
Characteristics of Negotiable Instruments
- Must be in writing
- Must be signed by the maker
- Must contain a promise or order to pay
- Must be payable on demand or at a fixed time
Different Types of Cheques
- Bearer cheque: Payable to anyone presenting it
- Order cheque: Payable to a specific person
- Crossed cheque: Can only be paid into a bank account
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Description
This quiz covers the essential elements of a valid contract, including agreement, consideration, and capacity. Additionally, it explores the classification of contracts and rules regarding valid acceptance. Test your knowledge of contract law principles and their applications.
