Contract Law: Bilateral Mistakes

Questions and Answers

What is the general duration of a patent from the date of filing the application?

15 years

10 years

20 years (correct)

25 years

What criteria must an invention generally meet to be eligible for a patent?

It must be inexpensive and widely used

It must be new, inventive, and useful (correct)

It must be easily replicated and complex

It must be old, effective, and free of cost

What is the minimum period for which industrial design rights can be conferred?

1 year

15 years

5 years

10 years (correct)

What happens if the promise is to be performed without application by the promisee and no time is specified?

It should be performed within a reasonable time. Signup and view all the answers

If a promise is made to deliver goods on a specified day during business hours, what is required for proper performance?

The promise must occur during the usual business hours at the specified place. Signup and view all the answers

Which factor does NOT contribute to the assignment of industrial design rights?

Market price Signup and view all the answers

When a promise is to be performed on a certain day requiring an application by the promisee, what must the promisee do?

Apply for performance at a proper place and within usual hours. Signup and view all the answers

What is a trade secret?

Information used to gain competitive advantage Signup and view all the answers

What does a geographical indication signify?

The geographical origin of a product Signup and view all the answers

In the absence of a fixed place for performance, who is responsible for proposing a location?

It is the duty of the promisor to apply to the promisee for a reasonable place. Signup and view all the answers

How long does the holder of an industrial design right have exclusive rights?

Up to 25 years Signup and view all the answers

What is the outcome if a promisor delivers goods after business hours on a specified day?

The promise is not performed. Signup and view all the answers

Which of the following is true regarding the time for performance when no application is required?

It must be performed within a reasonable time determined by the court if disputed. Signup and view all the answers

What is required for obtaining industrial design rights?

National or EU registration Signup and view all the answers

What is required for a promise that states it is to be performed on a fixed day without application?

It must occur within business hours on the specified day. Signup and view all the answers

What is the consequence of a bilateral mistake regarding the existence of the subject matter in a contract?

The agreement is void. Signup and view all the answers

If a promise involves making an application for performance on a certain day, what is the role of the promisor?

The promisor must ensure the application is made at the right time and place. Signup and view all the answers

Which type of bilateral mistake renders a contract void due to differing perceptions of the subject?

Mistake as to identity of subject matter. Signup and view all the answers

What happens when there is a mutual mistake regarding the quality of the subject matter?

The contract is void. Signup and view all the answers

Under which condition would a unilateral mistake allow a party to void a contract?

If the mistake was induced by another party's fraud or misrepresentation. Signup and view all the answers

What makes the object of an agreement unlawful under Section 23 of the Indian Contract Act, 1872?

If it involves deception or is fraudulent. Signup and view all the answers

Which of the following best describes a legal impossibility in the context of contract performance?

When legal restrictions prevent the performance from being executed. Signup and view all the answers

What is the effect of a mutual mistake regarding the price of the subject matter in a contract?

The agreement is void due to the bilateral mistake. Signup and view all the answers

Which type of mistake would not allow a party to void a contract based solely on their misunderstanding?

Unilateral mistake as to fact. Signup and view all the answers

What is the duration of a patent in WTO member countries?

Twenty years from the date of filing Signup and view all the answers

What rights does a patent grant to its holder?

The right to exclude others from using the invention Signup and view all the answers

What happens if the prescribed maintenance fee for a patent is not paid?

The patent lapses and becomes public property Signup and view all the answers

Which of the following is NOT included in the definition of 'invention' as per the Patents Act, 1970?

A new marketing strategy Signup and view all the answers

Which of the following is NOT a condition of patentability?

Commercial viability Signup and view all the answers

Which criteria must an invention meet to qualify for a patent in India?

It must be novel and capable of industrial application Signup and view all the answers

What is meant by 'prior art' in the context of patent novelty?

Published information disclosed to the public before the patent application Signup and view all the answers

What happens if an invention has been disclosed to the public prior to the patent application filing date?

A patent cannot be granted for the invention Signup and view all the answers

What is the consequence of losing the novelty of an invention?

The invention can no longer be patented again Signup and view all the answers

Which of the following sources could constitute prior knowledge of an invention?

An article published in a technical journal Signup and view all the answers

What is the legal basis for the term of every patent granted in India after 2002?

Patents (Amendment) Act, 2002 Signup and view all the answers

What is the main purpose of a patent?

To provide a temporary monopoly for commercial use of the invention Signup and view all the answers

Which of the following best defines 'industrial applicability' in the context of patents?

The invention must have practical utility or use Signup and view all the answers

Which of the following statements is true regarding the invention process?

A patent can be obtained for improvements on existing inventions Signup and view all the answers

What is the requirement for an invention to be considered non-obvious?

It should not be readily apparent to someone skilled in the field Signup and view all the answers

What constitutes a manufacturing substance in the context of patenting?

A substance that does not exist in nature Signup and view all the answers

Study Notes

Types of Mistakes in Contracts

Bilateral Mistakes can lead to contracts being void due to misunderstandings between parties.
Existence: If both parties are mistaken about the existence of the subject matter, the agreement is void.
Identity: A mutual misidentification of the subject matter renders the contract void.
Quality: When the subject matter is fundamentally different from what was believed, the agreement is void.
Quantity: Incorrect understanding of the quantity of subject matter results in a void contract.
Title: Bilateral mistakes regarding the title of the subject matter lead to the agreement being void.
Price: A mutual error about the price makes the agreement void.
Possibility of Performance:
- Physical Impossibility: Contracts are void if they are not feasible due to physical constraints (time, distance).
- Legal Impossibility: Contracts are void if they require actions that are legally prohibited.

Unilateral Mistake

Contracts are not voidable solely because one party harbors a mistake regarding a fact.
A unilateral mistake may only be a valid defense if caused by another party’s fraud or misrepresentation.

Legality of Object (Section 23)

An agreement's object or consideration is unlawful if:
- Forbidden by law.
- Designed to defeat legal provisions.
- Fraudulent or injurious to another’s person or property.
- Considered immoral or against public policy.

Time and Place for Performance of Promise

Section 46: If no application is needed and no time specified, performance must occur within a reasonable time, as determined by the court in case of disputes.
Section 47: If a fixed date is specified, performance should occur during business hours on that date at the specified location.
Section 48: If attendance is necessary for performance, the promisee must apply at a proper time and place.
Section 49: If no application and no fixed location exist, the promisor must propose a reasonable place for performance.

Patent Rights and Protections

Invention Definition: Includes any new and useful process, machine, or article, adhering to novelty and industrial applicability.
Patent Duration: Generally lasts 20 years from the application date.
Industrial Design Rights: Protects the visual design of objects, with rights assigned for 10 to 25 years, requiring registration.
Trade Secrets: Rights over confidential business information providing a competitive edge.
Geographical Indications: Signs indicating a product's origin with attributes tied to that location.
Patentability Conditions:
- Must be novel and not disclosed in prior art.
- Should involve an inventive step that is not obvious.
- Must have industrial applicability or practical utility.
Maintenance of Patents: Requires the payment of annual fees to prevent lapse, after which a fresh application is not possible due to loss of novelty.

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Description

Explore the various types of bilateral mistakes in contract law, where both parties possess misconceptions about the subject matter. This quiz will cover the implications of mistakes regarding the existence and identity of the subject matter, leading to void agreements.