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What is NOT an essential element of a valid contract?

  • Mutual consent
  • Witness presence (correct)
  • Offer and acceptance
  • Consideration

    • Which type of contract requires performance to occur only when a specific event happens?

  • Unilateral contract
  • Quasi contract
  • Bilateral contract
  • Contingent contract (correct)

    • What determines the validity of an offer?

  • The payment terms included
  • The urgency of the response
  • Its communication to the offeree (correct)
  • Its complexity and length

    • Which of the following indicates a disqualification by insanity in contracts?

    <p>Mental incapacity</p> Signup and view all the answers

    Which of the following is NOT a mode of revocation of an offer?

    <p>Acceptance by a third party</p> Signup and view all the answers

    In which type of contract does one party provide goods and the other party provides payment contingent upon future events?

    <p>Indemnity contract</p> Signup and view all the answers

    What is a cross offer?

    <p>Two identical offers made by two parties</p> Signup and view all the answers

    Which statement regarding acceptance is FALSE?

    <p>Silence can constitute acceptance</p> Signup and view all the answers

    Which of the following is an essential element of consideration?

    <p>It must be voluntary and free from coercion</p> Signup and view all the answers

    Under which circumstance is no consideration necessary?

    <p>A promise is made for a charitable purpose</p> Signup and view all the answers

    How can coercion be distinguished from undue influence?

    <p>Coercion involves threats of harm, undue influence relies on a position of power</p> Signup and view all the answers

    Which type of agreement is considered void?

    <p>An agreement that requires one party to commit fraud</p> Signup and view all the answers

    What distinguishes a void contract from a void agreement?

    <p>Void contracts cannot be enforced by either party, void agreements can be enforced</p> Signup and view all the answers

    Which of the following agreements would not likely be enforceable?

    <p>An agreement formed under undue influence</p> Signup and view all the answers

    Which concept refers to promises that are not legally enforceable due to their nature?

    <p>Void agreements</p> Signup and view all the answers

    What is a key feature of free consent in contracts?

    <p>Consent should be free from misrepresentation or fraud</p> Signup and view all the answers

    Which of the following is NOT considered a necessity for a minor?

    <p>Pearl or diamond buttons</p> Signup and view all the answers

    What type of contracts are considered valid for a minor?

    <p>Contracts providing employment or instruction</p> Signup and view all the answers

    In the context of contract law, how is a minor treated in India?

    <p>All contracts made by minors are void</p> Signup and view all the answers

    What happens in a scenario where a minor fails to pay for necessities supplied to them?

    <p>Only the minor's property can be liable for the dues</p> Signup and view all the answers

    What is the principal's liability when a minor is appointed as an agent?

    <p>The principal assumes all responsibility for the minor's actions</p> Signup and view all the answers

    Which of the following accurately describes minors in relation to partnership?

    <p>Minors cannot be partners in a firm at all</p> Signup and view all the answers

    Expenses incurred while defending a minor in a legal suit concerning their property are categorized as?

    <p>Necessities of the minor</p> Signup and view all the answers

    What is the legal stance on contracts for the benefit of minors in English law?

    <p>Such contracts are enforceable</p> Signup and view all the answers

    What is the legal status of price tags on goods displayed for sale in a shop?

    <p>They are merely an invitation to make an offer.</p> Signup and view all the answers

    Which of the following statements is a correct understanding of mere statements of intention?

    <p>They do not amount to an offer.</p> Signup and view all the answers

    What must be present for an offer to be considered valid?

    <p>The offer must disclose an intention to create legal relations.</p> Signup and view all the answers

    Why was the promise made by T in the case of Weeks V. Tybald not enforceable?

    <p>T's words were deemed to be a mere statement of intention.</p> Signup and view all the answers

    What is required for the terms of an offer to be considered valid?

    <p>They must be clear, certain, and not ambiguous.</p> Signup and view all the answers

    In which scenario would an advertisement for a sale be considered a legally binding offer?

    <p>It generally cannot be considered a binding offer.</p> Signup and view all the answers

    Why can a father’s promise in Farina V. Fickus be considered a non-enforceable statement?

    <p>It does not involve any exchange of consideration.</p> Signup and view all the answers

    Which option reflects the characteristics necessary for an offer to be valid?

    <p>It must impose some legal duty and avoid ambiguity.</p> Signup and view all the answers

    What is required for the acceptor to be bound by the terms and conditions of a ticket?

    <p>The acceptor must know about the writing on the ticket.</p> Signup and view all the answers

    Which condition must NOT be met for terms of a contract to be enforceable?

    <p>The acceptor is unaware of the ticket conditions.</p> Signup and view all the answers

    In which case was the notice deemed ineffective due to its timing?

    <p>Chapleton V. Barry U.D.C.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a definite offer in terms of tenders?

    <p>It can be open for an indefinite period.</p> Signup and view all the answers

    What is essential for the offeror regarding the communication of conditions on a ticket?

    <p>Conditions should be clearly printed.</p> Signup and view all the answers

    What happens if the notice of conditions is provided after the contract has been formed?

    <p>The conditions will not be effective.</p> Signup and view all the answers

    What kind of offer is created when a tender is submitted for specific goods or services?

    <p>A definite or single offer.</p> Signup and view all the answers

    Which of the following statements is incorrect regarding conditions in a contract?

    <p>Conditions can be in a receipt for payment.</p> Signup and view all the answers

    What is the legal definition of consideration as per the Indian Contract Act?

    <p>An act or promise given for the promise of another</p> Signup and view all the answers

    According to Sir Frederick Pollock, what does consideration represent?

    <p>The price paid for mutual obligations</p> Signup and view all the answers

    What is meant by the term 'quid pro quo' in the context of consideration?

    <p>Something given in return for something else</p> Signup and view all the answers

    In the case of Curie v. Misa, how is valuable consideration defined?

    <p>As rights, interests, forbearance, or other detriments</p> Signup and view all the answers

    What happens if an act is performed at the request of a third party in terms of consideration?

    <p>It does not qualify as consideration</p> Signup and view all the answers

    If person A volunteers to help person B, whose house is on fire, how is this action viewed in terms of consideration?

    <p>It is a voluntary act without consideration</p> Signup and view all the answers

    What does the phrase 'exnudo pacto non aritio actio' translate to in the context of consideration?

    <p>A promise without consideration is unenforceable</p> Signup and view all the answers

    Study Notes

    Indian Contract Act, 1972

    • The Indian Contract Act, 1972, aims to ensure the fulfillment of promises and enforce contractual obligations.
    • It determines when promises become legally binding.
    • The Act is not retrospective or exhaustive, covering general contract principles.

    Discharge of Contracts and Remedies for Breach

    • Unit II covers discharge of contracts and remedies for breaches.
    • Also covers contingent contracts and quasi-contracts.

    Special Contracts

    • Unit III introduces special contracts.
    • Topics include indemnity, guarantee, bailment, pledge, and agency.

    Sale of Goods Act, 1930

    • Unit IV focuses on the Sale of Goods Act, 1930.
    • It includes transfer of property in contract sales.

    Limited Liability Partnership Act, 2008

    • Unit V deals with Limited Liability Partnerships (LLPs).
    • Topics include definition, partner relations, liabilities, financial disclosures, and winding-up processes.

    Contract Fundamentals

    • Meaning and Nature of Contract: Contracts involve promises that create legal obligations.
    • Essential Elements of a Valid Contract: A valid contract needs offer, acceptance, consideration, capacity, free consent, lawful object, and agreement.
    • Kinds of Contracts: Different types of contracts exist. Examples: unilateral, bilateral, express, implied.
    • Offer and Acceptance: An offer is a proposal to create legal relations, requiring acceptance to form a contract.
    • Offer (Tests): Shopkeeper displays goods, mere statement of intention.
    • Essential elements of a valid offer: Must have intention to create legal relations and clear, certain terms.
    • Acceptance: Unconditional agreement to the offer in its entirety.
    • Communication of Offer, Acceptance, and Revocation: How offers, acceptances, and withdrawal of offers are communicated.
    • Modes of Revocation or lapse of offer: How and when an offer can be withdrawn.

    Capacity of Parties

    • Infancy: Minors (under 18) typically lack capacity to contract. Exceptions apply for "necessaries".
    • Insanity: Mentally incapacitated individuals lack capacity.

    Consideration

    • Definition of Consideration: Something of value exchanged between parties to a contract.
    • Essential Elements of Consideration: Consideration must be at the promisor's desire; voluntary acts don't qualify.
    • Lawful Consideration or Objects: Contracts must not violate the law or public policy, and objects must be lawful.
    • Coercion: Using force or threat of force to induce consent.
    • Undue Influence: Taking advantage of a position of trust or power to induce consent.
    • Distinction between Coercion and Undue Influence: Key differences in how consent is obtained.

    Fraud and Misrepresentation

    • Fraud: Deliberate misrepresentation to induce consent.
    • Misrepresentation: Innocent but false statement about a material fact.
    • Distinction between Fraud and Misrepresentation: Key differences in intent and effect.

    Void Agreements

    • Void Agreement: An agreement that is not legally binding but not necessarily illegal.
    • Void Contract: A contract that lacks a necessary element and is not enforceable.
    • Illegal and Opposed to Public Policy Agreements: Contracts prohibited by law or against societal standards, are not enforceable.
    • Agreements under Mistake of Law: Mistakes relating to law usually do not affect contract validity.
    • Agreements by Way of Wager: Agreements based purely on chance.
    • Distinction of wager with a conditional promise and a guarantee, wager and collateral transaction, wager and a contingent contract, Distinction between a Wagering and a Contingent Contract: Difference between bets and contracts involving future events.

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