Implied Contracts in Law
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Questions and Answers

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?

  • 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?

  • 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?

    <p>An oral agreement for arbitration.</p> Signup and view all the answers

    How can an unenforceable contract be made enforceable?

    <p>By removing the technical defects involved.</p> Signup and view all the answers

    What is true regarding void agreements?

    <p>They do not involve any unlawful object.</p> Signup and view all the answers

    If an agreement to sell personal property is made with a minor, what is the status of that agreement?

    <p>It is a void agreement.</p> Signup and view all the answers

    What effect does a technical defect have on a valid contract?

    <p>It makes the contract unenforceable.</p> Signup and view all the answers

    What type of agreement is considered void due to restraint of marriage?

    <p>An agreement to pay a sum if one does not marry</p> Signup and view all the answers

    Which of the following is a reason an agreement would be deemed void?

    <p>The object of the agreement is unlawful</p> Signup and view all the answers

    What kind of contract comes into existence when A allows a coolie to carry his luggage without explicitly agreeing to it?

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

    Which section of the Contract Act addresses agreements that lack certainty of meaning?

    <p>Section 29</p> Signup and view all the answers

    What is true about a quasi-contract?

    <p>It arises from operation of law rather than an agreement.</p> Signup and view all the answers

    What must be ensured about the terms of an agreement for it to be valid?

    <p>They must be clear and capable of performance</p> Signup and view all the answers

    What is an example of an impossible act that would render an agreement void?

    <p>An agreement to run at a speed of 200 km/h</p> Signup and view all the answers

    In which scenario is the contract classified as executed?

    <p>A delivers a service and B makes payment immediately.</p> Signup and view all the answers

    If an agreement has all essential elements of a valid contract but is expressly declared void, what is its status?

    <p>It remains void under all circumstances</p> Signup and view all the answers

    Which statement is correct about executory contracts?

    <p>They involve pending performance from both parties.</p> Signup and view all the answers

    What distinguishes a unilateral contract from a bilateral contract?

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

    In what circumstance could an otherwise vague agreement be treated as valid?

    <p>If additional context clarifies the agreement</p> Signup and view all the answers

    Which category does an agreement in restraint of legal proceedings fall under according to the Contract Act?

    <p>Void agreement</p> Signup and view all the answers

    When can a contract be considered partly executed and partly executory?

    <p>When one party has fulfilled their obligation and the other has not.</p> Signup and view all the answers

    What is the implication when A accidentally leaves goods at B's house and B uses them?

    <p>B is bound to pay for the goods used.</p> Signup and view all the answers

    Which of the following is an example of an implied contract in a public transportation context?

    <p>A buying a ticket and traveling on a bus.</p> Signup and view all the answers

    Which type of agreement must be in writing to be enforceable by law?

    <p>Promise to pay a time barred debt</p> Signup and view all the answers

    What is synonymous with the term 'offer' in the context of contract law?

    <p>Proposal</p> Signup and view all the answers

    Which of the following is NOT a requirement for a valid offer?

    <p>Must imply an element of negotiation</p> Signup and view all the answers

    In contract law, what term describes the person who makes an offer?

    <p>Promisor</p> Signup and view all the answers

    Which statement would constitute a valid offer?

    <p>I will sell my book for Rs. 30.</p> Signup and view all the answers

    An offer must be made to whom?

    <p>A specific person only</p> Signup and view all the answers

    Which element is essential for an offer to be legally valid?

    <p>It must indicate both willingness and intent to act</p> Signup and view all the answers

    What happens if legal formalities for a contract are not complied with?

    <p>The contract may not be enforceable by law</p> Signup and view all the answers

    What does the term 'novation' primarily signify in a contractual context?

    <p>Substitution of a new contract for an old contract.</p> Signup and view all the answers

    How is 'rescission' different from 'novation'?

    <p>Rescission cancels a contract without creating a new one.</p> Signup and view all the answers

    What does 'alteration' imply in a contract?

    <p>Modification of terms with unanimous consent.</p> Signup and view all the answers

    What does 'remission' involve in terms of fulfilling contractual obligations?

    <p>Acceptance of less than the owed amount.</p> Signup and view all the answers

    Which of the following best describes a 'waiver' in contract law?

    <p>Voluntary relinquishment of a right under the contract.</p> Signup and view all the answers

    Under which condition can a contract be rescinded?

    <p>In the case of mutual agreement prior to performance.</p> Signup and view all the answers

    What does the term 'discharge by lapse of time' refer to?

    <p>Enforcement of rights within a legally prescribed period.</p> Signup and view all the answers

    What is the prescribed period of limitation to recover a debt?

    <p>Three years.</p> Signup and view all the answers

    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.
    • 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.

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