Contract Law: Consent and Consideration

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which circumstance does NOT lead to the discharge of a contract?

One party becomes willing to perform (correct)

New legislation prevents performance

The subject matter ceases to exist

The act becomes unlawful

What is a valid reason for a contract to be discharged due to impossibility?

The parties reach an agreement to modify the contract

The performance timeline becomes extended

The logistics of performance are inconvenient

The subject matter is destroyed (correct)

Which of the following is an example of waiver in contract discharge?

A party willingly relinquishing a right to perform (correct)

A party failing to perform due to incapacitation

A party's death before contract fulfillment

A new law forbidding contract execution

Which situation would NOT result in the discharge of a contract?

A party's success in fulfilling their obligations Signup and view all the answers

Which action could lead to the discharge of a contract through novation?

Signing a new contract that replaces the old one Signup and view all the answers

What is required for an act to be considered fraudulent?

Active concealment of a fact. Signup and view all the answers

In the context of contracts, what is a bilateral mistake?

Both parties are mistaken about essential facts. Signup and view all the answers

Which statement best describes the role of an absurdly low price in a contract?

It is classified as a mistake in the agreement. Signup and view all the answers

What is a characteristic of voidable contracts?

They are enforceable unless declared void. Signup and view all the answers

Which type of contracts exists when terms are clearly stated and accepted?

Express contracts. Signup and view all the answers

What is a remedy for breach of contract where the promisee can end the contract?

Damages Signup and view all the answers

What is the time limit for bringing an action for breach of contract under the Indian Limitation Act?

3 years Signup and view all the answers

Which remedy involves the court ordering a party to fulfill their contractual obligations?

Specific Performance Signup and view all the answers

What type of breach occurs when a party refuses to perform any part of their promise?

Total Breach Signup and view all the answers

What type of remedy allows for the correction of an error in a contract?

Rectification Signup and view all the answers

What is the validity of a non-compete clause that restricts a seller from carrying on the same business anywhere in the world?

Void regardless of territory Signup and view all the answers

How does the Law view restraining parties from taking legal recourse?

Void and unenforceable Signup and view all the answers

In which situation does a contract become frustrated due to impossibility without default by either party?

When the subject matter of the contract is destroyed Signup and view all the answers

What type of arbitration clause allows parties to select a court for dispute resolution?

Free selection of competent courts Signup and view all the answers

What happens to a contract if a change in government policies makes its performance unlawful?

The contract becomes void Signup and view all the answers

Which of the following scenarios does NOT lead to a justified termination of a contract?

An event could have been foreseen Signup and view all the answers

What is the legal standing of a clause limiting the time period for legal recourse without adhering to the Limitation Act?

Void as it contravenes legal provisions Signup and view all the answers

Which of the following statements about restraining competition is true?

Limited to the same territory is valid Signup and view all the answers

Which of the following is NOT a condition for consent to be considered free?

Consideration should be optional Signup and view all the answers

What is a characteristic of coercion in contract law?

Threatening to harm a person if they do not comply Signup and view all the answers

What is an example of undue influence?

A lender forcing a borrower into unfavorable terms due to power imbalance Signup and view all the answers

Which element is required for an object of a contract to be valid?

The object must be identifiable Signup and view all the answers

What does the burden of proof lie on if a contract is deemed prima facie unconscionable?

The borrower to prove undue influence Signup and view all the answers

In what scenario can consent in a contract be considered voidable?

When consent is induced by fraud Signup and view all the answers

What is the implication of a mistake in contract law?

It can be about either fact or law Signup and view all the answers

Which of the following factors is NOT associated with coercion?

Offering a fair contract in a timely manner Signup and view all the answers

Study Notes

Consent is voidable when it is not free, granting the affected party the option to rescind.
Essential criteria for valid consent include identifiable act/product, measurable consideration, and identifiable parties.
Contract performance must have identifiable place, time, and object.

Coercion involves threats, unlawful acts, or detainment to force entry into a contract.
Undue influence occurs when one party uses authority or unfair advantage, often affecting mental capacity.
Fraud includes actions meant to deceive, such as active concealment, false promises, and misrepresentation.
Mistakes, whether bilateral or unilateral, in fact or law can render a contract voidable.

Types of Contracts

Valid, void, and voidable contracts are defined, with distinctions in enforceability.
Contracts formed online must still adhere to traditional contract law principles, where terms must be clear.
Restraint of legal proceedings clauses are void if they restrict legal recourse unreasonably.

Frustration of Contracts

Contracts may become void if the subject matter is destroyed or if performance is rendered impossible without party default.
Changes in government policies can make contracts unlawful and void.

Discharge of Contracts

Contracts can be discharged through various means: performance, death, impossibility, waiver, or mutual agreement.
Unlawful acts or legislative changes can prevent performance leading to discharge.

Breach of Contract and Remedies

Breach occurs when a promisor fails to fulfill their promise, allowing the promisee to end the contract.
Remedies for breach include:
- Damages: monetary compensation for losses.
- Specific performance: enforcement of the contract's terms.
- Injunctions: court orders restricting certain actions.
The Indian Limitation Act sets a period of three years from the date of breach to initiate legal action.

Case References

The case of Chwee Kin Keong & ors v. Digilandmall.com Pte Ltd discusses contractual mistakes regarding absurdly low prices.
McDermott International Inc. v. Burn Standard Co. highlights breach of contract implications and remedies.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the fundamental concepts of contract law, focusing on the conditions under which consent is deemed free. It covers significant aspects such as the identification of acts, products, parties, and performance locations, as well as factors that may affect consent such as coercion.