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Questions and Answers
What is the essential requirement for a valid contract?
What constitutes a 'promise' in the context of a contract?
Which factor determines whether an agreement can be considered as a contract?
What term is used interchangeably with 'proposal' in the context of an agreement?
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What is the meaning of a 'proposal' in the context of a contract?
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What happens when a proposal is accepted in the context of a contract?
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How does the Indian Contract Act define a 'promise'?
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What is the essential requirement for a valid contract related to promises?
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What is the meaning of 'proposal' as per the Indian Contract Act?
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In the context of contracts, what does the term 'promise' refer to?
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What is the key characteristic of a 'proposal' as defined in the Indian Contract Act?
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What distinguishes a 'proposal' from a 'promise' in the context of contracts?
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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.
