Elements of a Valid Contract Quiz

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

A bilateral contract

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.

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.

In the example, what is the significance of B paying ₹2,50,000 as earnest money to A?

It is a condition precedent to the sale. 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?

The agreement would be void for lack of consideration. 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?

A has sole ownership of the plot. 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?

Because both partners were considered buyers in the transaction. Signup and view all the answers

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

Parties involved in social agreements do not intend to create legal obligations. 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?

At least two parties, one being the seller and the other being the buyer. 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?

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

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

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

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

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

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

Performance of acts or forbearance by both parties Signup and view all the answers

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

Executory contract Signup and view all the answers

What characterizes a unilateral contract?

Only one party has performed an obligation Signup and view all the answers

What signifies the existence of an executed contract?

Performance of one party's obligation Signup and view all the answers

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

Reciprocal promise or obligation Signup and view all the answers

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

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