Podcast
Questions and Answers
What distinguishes an illegal agreement from a void agreement?
What distinguishes an illegal agreement from a void agreement?
- Both illegal and void agreements have the same legal consequences.
- All illegal agreements are void but not all void agreements are illegal. (correct)
- All void agreements are also illegal agreements.
- Illegal agreements can be enforced while void agreements cannot.
What is an example of an illegal agreement?
What is an example of an illegal agreement?
- A contract to sell a scooter to a minor.
- A contract to pay someone for committing a crime. (correct)
- A person agrees to provide a service under false pretenses.
- A borrower takes a loan to pay off a debt.
What happens to collateral agreements in the case of illegal agreements?
What happens to collateral agreements in the case of illegal agreements?
- They also become void. (correct)
- They can be enforced if the main agreement is void.
- They remain valid regardless of the main agreement.
- They depend on the understanding between parties.
Which of the following is an example of an unenforceable contract?
Which of the following is an example of an unenforceable contract?
How can an unenforceable contract be made enforceable?
How can an unenforceable contract be made enforceable?
What is true regarding void agreements?
What is true regarding void agreements?
If an agreement to sell personal property is made with a minor, what is the status of that agreement?
If an agreement to sell personal property is made with a minor, what is the status of that agreement?
What effect does a technical defect have on a valid contract?
What effect does a technical defect have on a valid contract?
What type of agreement is considered void due to restraint of marriage?
What type of agreement is considered void due to restraint of marriage?
Which of the following is a reason an agreement would be deemed void?
Which of the following is a reason an agreement would be deemed void?
What kind of contract comes into existence when A allows a coolie to carry his luggage without explicitly agreeing to it?
What kind of contract comes into existence when A allows a coolie to carry his luggage without explicitly agreeing to it?
Which section of the Contract Act addresses agreements that lack certainty of meaning?
Which section of the Contract Act addresses agreements that lack certainty of meaning?
What is true about a quasi-contract?
What is true about a quasi-contract?
What must be ensured about the terms of an agreement for it to be valid?
What must be ensured about the terms of an agreement for it to be valid?
What is an example of an impossible act that would render an agreement void?
What is an example of an impossible act that would render an agreement void?
In which scenario is the contract classified as executed?
In which scenario is the contract classified as executed?
If an agreement has all essential elements of a valid contract but is expressly declared void, what is its status?
If an agreement has all essential elements of a valid contract but is expressly declared void, what is its status?
Which statement is correct about executory contracts?
Which statement is correct about executory contracts?
What distinguishes a unilateral contract from a bilateral contract?
What distinguishes a unilateral contract from a bilateral contract?
In what circumstance could an otherwise vague agreement be treated as valid?
In what circumstance could an otherwise vague agreement be treated as valid?
Which category does an agreement in restraint of legal proceedings fall under according to the Contract Act?
Which category does an agreement in restraint of legal proceedings fall under according to the Contract Act?
When can a contract be considered partly executed and partly executory?
When can a contract be considered partly executed and partly executory?
What is the implication when A accidentally leaves goods at B's house and B uses them?
What is the implication when A accidentally leaves goods at B's house and B uses them?
Which of the following is an example of an implied contract in a public transportation context?
Which of the following is an example of an implied contract in a public transportation context?
Which type of agreement must be in writing to be enforceable by law?
Which type of agreement must be in writing to be enforceable by law?
What is synonymous with the term 'offer' in the context of contract law?
What is synonymous with the term 'offer' in the context of contract law?
Which of the following is NOT a requirement for a valid offer?
Which of the following is NOT a requirement for a valid offer?
In contract law, what term describes the person who makes an offer?
In contract law, what term describes the person who makes an offer?
Which statement would constitute a valid offer?
Which statement would constitute a valid offer?
An offer must be made to whom?
An offer must be made to whom?
Which element is essential for an offer to be legally valid?
Which element is essential for an offer to be legally valid?
What happens if legal formalities for a contract are not complied with?
What happens if legal formalities for a contract are not complied with?
What does the term 'novation' primarily signify in a contractual context?
What does the term 'novation' primarily signify in a contractual context?
How is 'rescission' different from 'novation'?
How is 'rescission' different from 'novation'?
What does 'alteration' imply in a contract?
What does 'alteration' imply in a contract?
What does 'remission' involve in terms of fulfilling contractual obligations?
What does 'remission' involve in terms of fulfilling contractual obligations?
Which of the following best describes a 'waiver' in contract law?
Which of the following best describes a 'waiver' in contract law?
Under which condition can a contract be rescinded?
Under which condition can a contract be rescinded?
What does the term 'discharge by lapse of time' refer to?
What does the term 'discharge by lapse of time' refer to?
What is the prescribed period of limitation to recover a debt?
What is the prescribed period of limitation to recover a debt?
Study Notes
Implied Contracts
- Implied contracts arise from the conduct of the parties involved; no explicit agreement is necessary.
- Example: A coolie carrying A's luggage without request implies A's agreement to pay for the service.
- Example: Boarding a public bus creates an implied contract obligating A to pay the fare.
Quasi-Contracts
- Quasi-contracts are recognized under Sections 68 to 72 of the Contract Act; they resemble contracts but are not actual contracts.
- Obligations arise by operation of law, not by agreement.
- Example: If A mistakenly leaves goods with B and B consumes them, B is obligated to pay for the goods.
Classification Based on Execution
- Executed Contracts: Both parties have fulfilled obligations. Example: A sells a book to B, and payment is made.
- Executory Contracts: Obligations remain unfulfilled. Example: A agrees to sell a book, but B hasn't yet paid.
- Contracts can also be partly executed (only one party has performed).
Unilateral and Bilateral Contracts
- Unilateral Contracts: Only one party performs an obligation. Example: Buying a bus ticket creates a contract for service provision.
- Bilateral Contracts: Both parties have mutual obligations.
Illegal and Void Agreements
- Illegal agreements are declared unlawful and cannot be enforced. Example: An agreement to pay for a murder.
- Void agreements hold no legal effect; all illegal agreements are void, but not all void agreements are illegal.
- Collateral agreements related to illegal agreements are also void, but collateral agreements to void agreements remain valid.
Unenforceable Contracts
- Unenforceable contracts are valid but cannot be enforced due to technical defects (e.g., non-registration or not being in writing).
- Most unenforceable contracts can become valid if defects are remedied.
Essential Elements of Valid Contracts
- Agreements must have lawful considerations and must not be expressly declared void under the Contract Act.
- Types of agreements declared void include those in restraint of marriage, legal proceedings, or trade.
Certainty of Meaning
- Contract terms must be clear and definite to avoid being void due to uncertainty.
- Example: An agreement to sell 100 tonnes of unspecified oil lacks clarity and is invalid unless specified.
Possibility of Performance
- Agreements must involve actions that are physically or legally possible; impossible agreements are void.
- Example: Promising to retrieve gold from the sun is an impossible agreement.
Legal Formalities
- While most contracts can be oral, some must adhere to written documentation (e.g., agreements involving immovable property).
Offer and Proposal
- A lawful contract requires a valid offer and acceptance, defined as a willingness by one party to obtain assent from another.
- Offers must involve readiness to act either positively or negatively and must be directed to another person.
Discharge of Contracts
- Contracts can be discharged by novation (creation of a new contract), rescission (cancellation), alteration (changing terms), remission (accepting less), or waiver (abandonment of rights).
Time Limitations
- Rights under contracts are enforceable within a specified period, as determined by the Limitation Act (e.g., 12 years for immovable property, 3 years for debts).
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Description
Explore the concept of implied contracts through practical examples. This quiz covers various scenarios, such as the interaction between parties in everyday situations like hiring a coolie or boarding public transport. Test your understanding of how these agreements are formed without explicit consent.
