Essentials of a Contract Quiz
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Questions and Answers

What is the essential requirement for a valid contract?

  • Performance of the contract
  • Offer and its acceptance (correct)
  • Existence of social or domestic nature
  • Free consent of one party
  • What constitutes a 'promise' in the context of a contract?

  • Existence of social or domestic nature
  • Communication of agreement
  • Acceptance of an offer (correct)
  • Performance of the contract
  • Which factor determines whether an agreement can be considered as a contract?

  • Mutual and lawful consideration for agreement
  • Competency of the parties to contract
  • Existence of social or domestic nature
  • Agreement declared void under any law (correct)
  • What term is used interchangeably with 'proposal' in the context of an agreement?

    <p>'Offer'</p> Signup and view all the answers

    What is the meaning of a 'proposal' in the context of a contract?

    <p>A proposal is a willingness to do or abstain from doing something, with the intention of obtaining the assent of the other party.</p> Signup and view all the answers

    What happens when a proposal is accepted in the context of a contract?

    <p>The proposal becomes a mutual promise.</p> Signup and view all the answers

    How does the Indian Contract Act define a 'promise'?

    <p>A promise is made when the person to whom the proposal is made signifies his assent thereto.</p> Signup and view all the answers

    What is the essential requirement for a valid contract related to promises?

    <p>The promise should have mutual and lawful consideration.</p> Signup and view all the answers

    What is the meaning of 'proposal' as per the Indian Contract Act?

    <p>A willingness to do or abstain from doing something with the intention of obtaining assent from another party</p> Signup and view all the answers

    In the context of contracts, what does the term 'promise' refer to?

    <p>A proposal that has been accepted by the other party</p> Signup and view all the answers

    What is the key characteristic of a 'proposal' as defined in the Indian Contract Act?

    <p>It can be a positive act or an abstention from an act</p> Signup and view all the answers

    What distinguishes a 'proposal' from a 'promise' in the context of contracts?

    <p>A proposal is the willingness to act, while a promise is the acceptance of that willingness by the other party</p> Signup and view all the answers

    Study Notes

    Essential Requirements for a Valid Contract

    • A valid contract requires a lawful consideration, competent parties, free consent, and a lawful object.
    • The Indian Contract Act, 1872, defines the essential elements of a valid contract.

    Proposals and Promises

    • A 'promise' is an undertaking to do or not to do something, made by one party to another.
    • In the context of contracts, a 'promise' refers to an assurance or commitment made by one party to another.
    • The Indian Contract Act, 1872, defines a 'promise' as an assurance by one person to another, in order to bind him.

    Proposals and Acceptances

    • A 'proposal' is an offer or suggestion made by one party to another, with the intention of forming an agreement.
    • When a proposal is accepted, it forms a promise and creates a contractual obligation.
    • The key characteristic of a 'proposal' is that it is communicated to the other party, with the intention of forming a contract.
    • The term 'offer' is used interchangeably with 'proposal' in the context of an agreement.

    Key Differences

    • A 'proposal' is an initial offer or suggestion, whereas a 'promise' is an acceptance of that offer, creating a contractual obligation.
    • A proposal is made with the intention of forming an agreement, whereas a promise is the outcome of an accepted proposal.

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    Description

    Test your knowledge on the meaning and essential requirements of a valid contract, including acceptance, mutual consent, consideration, and enforceability by law. Explore the key elements that differentiate mere agreements from legally binding contracts.

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