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Elements of a Valid Contract Quiz
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Elements of a Valid Contract Quiz

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Questions and Answers

Which of the following best describes the type of contract between A and B in the example?

  • A social agreement
  • A void contract
  • A unilateral contract
  • A bilateral contract (correct)
  • According to the definition in the text, what is the key element that distinguishes an 'offer' or 'proposal' from other types of statements?

  • The offer must be made with the view to obtaining the assent of the other party. (correct)
  • The offer must be made with the intention to create legal relations.
  • The offer must be made in writing.
  • The offer must be made for the transfer of property.
  • Based on the information provided, which of the following would NOT be considered a valid 'offer' or 'proposal'?

  • A invites B to his house for dinner. (correct)
  • A promises to give B ₹1,000 if B scores 90% in the exam.
  • A offers to mow B's lawn for ₹500.
  • A promises to sell his plot to B for ₹10 lakhs cash down.
  • In the example, what is the significance of B paying ₹2,50,000 as earnest money to A?

    <p>It is a condition precedent to the sale.</p> Signup and view all the answers

    If A and B had a social agreement for A to mow B's lawn every week for free, which of the following would be true?

    <p>The agreement would be void for lack of consideration.</p> Signup and view all the answers

    In the example, what is the legal relationship between A and B with respect to the plot of land?

    <p>A has sole ownership of the plot.</p> Signup and view all the answers

    In the case of State of Gujarat vs. Ramanlal S & Co., why did the sales tax officer want to tax the transaction of dividing the assets among the partners?

    <p>Because both partners were considered buyers in the transaction.</p> Signup and view all the answers

    Why are social or domestic agreements not enforceable in a court of law as per the text?

    <p>Parties involved in social agreements do not intend to create legal obligations.</p> Signup and view all the answers

    What is essential in a contract of sale to ensure the validity of the agreement as per the text?

    <p>At least two parties, one being the seller and the other being the buyer.</p> Signup and view all the answers

    In a partnership dissolution, why couldn't the partners be considered both buyer and seller of the firm's assets as per the text?

    <p>Because joint ownership prohibits one partner from buying from another partner.</p> Signup and view all the answers

    Why was the transaction in State of Gujarat vs. Ramanlal S & Co. not considered a sale?

    <p>The partners were joint owners of the assets and could not act as both buyer and seller.</p> Signup and view all the answers

    What is crucial for any agreement to result in a contract as per the text?

    <p>Both parties must have an intention to create legal obligations.</p> Signup and view all the answers

    In an executed contract, what marks the completion of the contract?

    <p>Performance of acts or forbearance by both parties</p> Signup and view all the answers

    Which type of contract involves reciprocal promises or obligations to be performed in the future?

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

    What characterizes a unilateral contract?

    <p>Only one party has performed an obligation</p> Signup and view all the answers

    What signifies the existence of an executed contract?

    <p>Performance of one party's obligation</p> Signup and view all the answers

    In an executory contract, what type of consideration is typically involved?

    <p>Reciprocal promise or obligation</p> Signup and view all the answers

    Which scenario indicates a unilateral contract turning into an executed contract?

    <p>` 50,000 reward for finding a missing boy</p> Signup and view all the answers

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