Contract Management: Introduction and Indian Contract Act, 1872

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In estimating loss arising from a breach of contract, which factor must be considered?

The length of the contract

The weather conditions at the time of breach

The means available to remedy the inconvenience caused by non-performance (correct)

The number of parties involved in the contract

What is the entitlement of the party affected by a breach of contract if a sum is specified in the contract as penalty for such a breach?

Entitled to compensation double the specified sum

Not entitled to any compensation

Entitled to reasonable compensation not exceeding the specified sum (correct)

Entitled to receive only the specified sum as compensation

Under what circumstances is a party rightfully rescinding a contract entitled to compensation?

If the party has sustained damage due to the non-fulfillment of the contract (correct)

If the contract was notarized

If the contract was signed on a Tuesday

If the party decides to rescind after 6 months of signing the contract

Which Act emphasizes arbitration as a method to settle commercial disputes quickly and enforce contracts effectively?

The Arbitration & Conciliation Act, 1996 Signup and view all the answers

When did the Arbitration & Conciliation Act, 1996, come into effect?

25.01.1996 Signup and view all the answers

What does the Indian Contract Act of 1872 provide for concerning breaches of contract?

Entitlement to reasonable compensation for breaches even if no actual damage is proven Signup and view all the answers

What is the definition of a contract according to Section 2(h) of the Indian Contract Act, 1872?

A set of promises enforceable by law Signup and view all the answers

Which of the following is NOT an essential requirement for a valid contract?

Public registration of the contract Signup and view all the answers

What is the significance of the parties being competent to enter into a contract?

It confirms that the parties have the legal capacity to enter into a contract Signup and view all the answers

In the context of contracts, what does 'free consent' between parties refer to?

Consent given voluntarily without any undue influence Signup and view all the answers

Why is it essential for a contract to have certainty and possibility of performance?

To guarantee that the obligations can be fulfilled as agreed Signup and view all the answers

Which type of agreements are excluded from being considered as contracts?

Agreements made between close family members Signup and view all the answers

What is the primary focus of a public procurement professional in relation to legal aspects?

Understanding the implications of key laws affecting procurement of works Signup and view all the answers

Which act governs arbitration related to public procurement contracts in India?

Arbitration and Conciliation Act, 1996 Signup and view all the answers

In the context of public procurement, what does the Central Vigilance Commission Act, 2003 primarily deal with?

Dealing with corruption issues Signup and view all the answers

Which law regulates the use of electronic methods for procurement like e-procurement and e-auction?

Information Technology Act, 2000 Signup and view all the answers

What is the relevance of the Indian Contracts Act, 1872 in public procurement?

It lays down the laws governing contracts in India Signup and view all the answers

Why is it important for a public procurement professional to be aware of the Competition Act, 2002?

To ensure a fair and competitive bidding process Signup and view all the answers

What is the significance of both parties needing to be competent to enter into a contract?

It establishes the legal capacity of the parties to make decisions. Signup and view all the answers

Which factor is NOT an essential requirement for a valid contract?

The contract must be in writing Signup and view all the answers

Why is it important for an agreement to have certainty and possibility of performance?

To prevent disputes and provide clarity on expectations Signup and view all the answers

What is the primary focus of the Indian Contract Act, 1872 in relation to contracts?

Ensuring contracts are enforceable by law Signup and view all the answers

In the context of contracts, what does 'free consent' between parties refer to?

Consent given voluntarily without coercion or undue influence Signup and view all the answers

Why is a public procurement professional expected to be generally aware of the Indian Contracts Act, 1872?

To understand the implications of breach of contract in public procurement transactions Signup and view all the answers

Which law primarily governs the resolution of commercial disputes and enforcement of contracts quickly in India?

Arbitration and Conciliation Act, 1996 Signup and view all the answers

What is the main focus of a public procurement professional regarding the Competition Act, 2002 in India?

Promoting fair and healthy competition in public procurement contracts Signup and view all the answers

Why is it essential for a public procurement professional to be aware of the Prevention of Corruption Act, 1988?

To prevent corruption in public procurement transactions Signup and view all the answers

In the context of public procurement contracts, what does the Right to Information (RTI) Act, 2005 primarily focus on?

Promoting transparency and accountability in the public procurement process Signup and view all the answers

What is the time restriction for arbitral tribunals to make their award in international commercial arbitrations, as per the amended Act 33 of 2019?

12 months Signup and view all the answers

Under the Arbitration & Conciliation Act, an arbitration agreement must be:

In writing Signup and view all the answers

If there is an arbitration agreement between parties and an action is brought before a judicial authority, what action should the judicial authority take?

Refer the parties to arbitration Signup and view all the answers

Which section of the Arbitration & Conciliation Act deals with the power to refer parties to arbitration when there is an arbitration agreement?

Section 8 Signup and view all the answers

What kind of disputes can be submitted to arbitration according to the definition in the Indian Contract Act of 1872?

Certain disputes that have arisen or may arise Signup and view all the answers

According to the Indian Contract Act of 1872, what is the term used for the person making a proposal?

Promisor Signup and view all the answers

What is the term for a proposal that, when accepted, becomes a promise under the Indian Contract Act of 1872?

Promise Signup and view all the answers

In the context of the Indian Contract Act of 1872, what is the term used for the person accepting the proposal?

Promisee Signup and view all the answers

Under the Indian Contract Act of 1872, what is defined as the act or promise done at the desire of the promisor?

Consideration Signup and view all the answers

In the context of contracts, what is an agreement under the Indian Contract Act of 1872?

A set of promises forming consideration for each other Signup and view all the answers

What must be taken into account when estimating the loss or damage from a breach of contract?

The available means of remedying the inconvenience Signup and view all the answers

Under Section 74 of the Indian Contract Act, what compensation is a party entitled to if a sum is named in the contract as an amount to be paid in case of a breach?

Reasonable compensation not exceeding the sum named Signup and view all the answers

What is the entitlement of a party who rightfully rescinds a contract according to Section 75 of the Indian Contract Act?

Compensation for any damage sustained Signup and view all the answers

What does the Arbitration and Conciliation Act, 1996, aim to provide for in terms of resolving commercial disputes?

Quick enforcement of contracts globally Signup and view all the answers

When did the Arbitration and Conciliation Act, 1996, come into effect?

25.01.1996 Signup and view all the answers

According to the Indian Contract Act, 1872, an agreement is void if the consideration involves or implies:

Injury to the person or property of another Signup and view all the answers

Under what circumstance is an agreement without consideration void unless expressed in writing and registered under the law?

It is made on account of natural love and affection between parties standing in near relation to each other Signup and view all the answers

What renders an agreement void under Section 29 of the Indian Contract Act, 1872?

Uncertainty in the meaning of the agreement Signup and view all the answers

When are parties required to perform their contractual promises according to the Indian Contract Act, 1872?

Unless performance is excused under this Act or any other law Signup and view all the answers

What will make an agreement void under the Indian Contract Act, 1872?

Involvement of illegal objects or considerations Signup and view all the answers

What role does the conciliator play in the conciliation process according to Section 67?

Assisting parties to reach an agreement Signup and view all the answers

When can the conciliator make proposals for a settlement of the dispute?

At any stage of the conciliation proceedings Signup and view all the answers

What happens when parties sign a settlement agreement?

It becomes final and binding on the parties Signup and view all the answers

What is the status and effect of a settlement agreement according to Section 74?

It is equivalent to an arbitral award Signup and view all the answers

What is the impact of drawing up and signing a written settlement agreement?

Makes the agreement legally enforceable Signup and view all the answers

How are proposals for a settlement of a dispute presented according to Section 67?

In writing without reasons Signup and view all the answers

What effect does the authentication of a settlement agreement by the conciliator have?

Makes it legally valid Signup and view all the answers

What does Section 66 specify regarding the conciliator's obligation during conciliation?

The conciliator is not bound by Indian Evidence Act or Code of Civil Procedure Signup and view all the answers

What is required for a settlement agreement to be considered final and binding according to Section 73?

Authentication by the conciliator and signatures from all parties involved Signup and view all the answers

According to Section 74 of the Indian Contract Act, what compensation is a party entitled to if a sum is named in the contract as an amount to be paid in case of a breach?

Reasonable compensation not exceeding the amount named Signup and view all the answers

What entitlement does a person have when rightfully rescinding a contract according to the Indian Contract Act?

Entitled to compensation for any damage sustained Signup and view all the answers

What must be taken into account when estimating loss or damage arising from a breach of contract?

Means of remedying the inconvenience caused by non-performance Signup and view all the answers

In case of a breach, why is reasonable compensation allowed under Section 74 even if no actual damage is proven?

To provide fairness and discourage breaches Signup and view all the answers

What is the primary purpose of arbitration in resolving commercial disputes under the Arbitration and Conciliation Act, 1996?

Quick enforcement of contracts Signup and view all the answers

Which type of compensation is a party entitled to under Section 75 when rightfully rescinding a contract?

$1 million or the loss incurred through non-fulfillment, whichever is higher Signup and view all the answers

What is the primary purpose of resorting to arbitral or judicial proceedings in the context of public procurement contracts?

To quickly resolve commercial disputes and enforce contracts effectively Signup and view all the answers

In the Indian Contract Act, 1872, what is considered essential for a contract to be legally valid?

Certainty and possibility of performance Signup and view all the answers

What is the consequence of communication through contracts in public procurement?

Ensuring a smooth and clear transaction process Signup and view all the answers

Under the Indian Contract Act, 1872, what renders an agreement void?

Uncertainty or impossibility of performance Signup and view all the answers

What is the significance of a settlement agreement in resolving disputes related to public procurement contracts?

To provide a final and binding resolution Signup and view all the answers

What is the main focus of public procurement professionals regarding arbitration and conciliation in resolving contract disputes?

To ensure quick and effective resolution of disputes outside courts Signup and view all the answers

What is the primary focus of the Indian Contract Act, 1872 in relation to contracts?

Establishing the legality and enforceability of agreements between parties Signup and view all the answers

When a contract is deemed void under the Indian Contract Act, 1872, which factor is typically involved?

A promise that is not enforceable by law Signup and view all the answers

Which essential requirement for a valid contract emphasizes that both parties must be legally capable of entering into an agreement?

Parties should be competent to enter into contracts Signup and view all the answers

If an agreement is void due to being expressly declared so under the Contract Act or another law, what does this signify about its legal standing?

It has no legal standing and cannot be enforced Signup and view all the answers

In terms of resorting to arbitral or judicial proceedings, what is the significance of free consent in a contract?

It ensures that parties have agreed without any external pressure Signup and view all the answers

How does the Indian Contract Act, 1872 contribute to resorting to arbitral or judicial proceedings?

By establishing the legal framework for enforcing contracts through courts Signup and view all the answers

Contract Management: Introduction and Indian Contract Act, 1872

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Questions and Answers

In estimating loss arising from a breach of contract, which factor must be considered?

What is the entitlement of the party affected by a breach of contract if a sum is specified in the contract as penalty for such a breach?

Under what circumstances is a party rightfully rescinding a contract entitled to compensation?

Which Act emphasizes arbitration as a method to settle commercial disputes quickly and enforce contracts effectively?

When did the Arbitration & Conciliation Act, 1996, come into effect?

What does the Indian Contract Act of 1872 provide for concerning breaches of contract?

What is the definition of a contract according to Section 2(h) of the Indian Contract Act, 1872?

Which of the following is NOT an essential requirement for a valid contract?

What is the significance of the parties being competent to enter into a contract?

In the context of contracts, what does 'free consent' between parties refer to?

Why is it essential for a contract to have certainty and possibility of performance?

Which type of agreements are excluded from being considered as contracts?

What is the primary focus of a public procurement professional in relation to legal aspects?

Which act governs arbitration related to public procurement contracts in India?

In the context of public procurement, what does the Central Vigilance Commission Act, 2003 primarily deal with?

Which law regulates the use of electronic methods for procurement like e-procurement and e-auction?

What is the relevance of the Indian Contracts Act, 1872 in public procurement?

Why is it important for a public procurement professional to be aware of the Competition Act, 2002?

What is the significance of both parties needing to be competent to enter into a contract?

Which factor is NOT an essential requirement for a valid contract?

Why is it important for an agreement to have certainty and possibility of performance?

What is the primary focus of the Indian Contract Act, 1872 in relation to contracts?

In the context of contracts, what does 'free consent' between parties refer to?

Why is a public procurement professional expected to be generally aware of the Indian Contracts Act, 1872?

Which law primarily governs the resolution of commercial disputes and enforcement of contracts quickly in India?

What is the main focus of a public procurement professional regarding the Competition Act, 2002 in India?

Why is it essential for a public procurement professional to be aware of the Prevention of Corruption Act, 1988?

In the context of public procurement contracts, what does the Right to Information (RTI) Act, 2005 primarily focus on?

What is the time restriction for arbitral tribunals to make their award in international commercial arbitrations, as per the amended Act 33 of 2019?

Under the Arbitration & Conciliation Act, an arbitration agreement must be:

If there is an arbitration agreement between parties and an action is brought before a judicial authority, what action should the judicial authority take?

Which section of the Arbitration & Conciliation Act deals with the power to refer parties to arbitration when there is an arbitration agreement?

What kind of disputes can be submitted to arbitration according to the definition in the Indian Contract Act of 1872?

According to the Indian Contract Act of 1872, what is the term used for the person making a proposal?

What is the term for a proposal that, when accepted, becomes a promise under the Indian Contract Act of 1872?

In the context of the Indian Contract Act of 1872, what is the term used for the person accepting the proposal?

Under the Indian Contract Act of 1872, what is defined as the act or promise done at the desire of the promisor?

In the context of contracts, what is an agreement under the Indian Contract Act of 1872?

What must be taken into account when estimating the loss or damage from a breach of contract?

Under Section 74 of the Indian Contract Act, what compensation is a party entitled to if a sum is named in the contract as an amount to be paid in case of a breach?

What is the entitlement of a party who rightfully rescinds a contract according to Section 75 of the Indian Contract Act?

What does the Arbitration and Conciliation Act, 1996, aim to provide for in terms of resolving commercial disputes?

When did the Arbitration and Conciliation Act, 1996, come into effect?

According to the Indian Contract Act, 1872, an agreement is void if the consideration involves or implies:

Under what circumstance is an agreement without consideration void unless expressed in writing and registered under the law?

What renders an agreement void under Section 29 of the Indian Contract Act, 1872?

When are parties required to perform their contractual promises according to the Indian Contract Act, 1872?

What will make an agreement void under the Indian Contract Act, 1872?

What role does the conciliator play in the conciliation process according to Section 67?

When can the conciliator make proposals for a settlement of the dispute?

What happens when parties sign a settlement agreement?

What is the status and effect of a settlement agreement according to Section 74?

What is the impact of drawing up and signing a written settlement agreement?

How are proposals for a settlement of a dispute presented according to Section 67?

What effect does the authentication of a settlement agreement by the conciliator have?

What does Section 66 specify regarding the conciliator's obligation during conciliation?

What is required for a settlement agreement to be considered final and binding according to Section 73?

According to Section 74 of the Indian Contract Act, what compensation is a party entitled to if a sum is named in the contract as an amount to be paid in case of a breach?

What entitlement does a person have when rightfully rescinding a contract according to the Indian Contract Act?

What must be taken into account when estimating loss or damage arising from a breach of contract?

In case of a breach, why is reasonable compensation allowed under Section 74 even if no actual damage is proven?

What is the primary purpose of arbitration in resolving commercial disputes under the Arbitration and Conciliation Act, 1996?

Which type of compensation is a party entitled to under Section 75 when rightfully rescinding a contract?

What is the primary purpose of resorting to arbitral or judicial proceedings in the context of public procurement contracts?

In the Indian Contract Act, 1872, what is considered essential for a contract to be legally valid?

What is the consequence of communication through contracts in public procurement?

Under the Indian Contract Act, 1872, what renders an agreement void?

What is the significance of a settlement agreement in resolving disputes related to public procurement contracts?

What is the main focus of public procurement professionals regarding arbitration and conciliation in resolving contract disputes?

What is the primary focus of the Indian Contract Act, 1872 in relation to contracts?

When a contract is deemed void under the Indian Contract Act, 1872, which factor is typically involved?

Which essential requirement for a valid contract emphasizes that both parties must be legally capable of entering into an agreement?

If an agreement is void due to being expressly declared so under the Contract Act or another law, what does this signify about its legal standing?

In terms of resorting to arbitral or judicial proceedings, what is the significance of free consent in a contract?

How does the Indian Contract Act, 1872 contribute to resorting to arbitral or judicial proceedings?

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