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Questions and Answers
What does Section 2(h) of the Indian Contract Act, 1872 define as a contract?
What does Section 2(h) of the Indian Contract Act, 1872 define as a contract?
An agreement enforceable by law is a contract.
What is an agreement defined as under Section 2(e) of the Indian Contract Act, 1872?
What is an agreement defined as under Section 2(e) of the Indian Contract Act, 1872?
Every promise and every set of promises forming consideration for each other, is an agreement.
All agreements are contracts.
All agreements are contracts.
False
What are the essential elements of a contract stated in Section 10 of the Indian Contract Act, 1872?
What are the essential elements of a contract stated in Section 10 of the Indian Contract Act, 1872?
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What must exist for an agreement to be classified as a contract?
What must exist for an agreement to be classified as a contract?
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What is 'free consent' in the context of a contract?
What is 'free consent' in the context of a contract?
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A contract is voidable if consent has been obtained through coercion.
A contract is voidable if consent has been obtained through coercion.
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Who is considered incompetent to form a contract according to Section 11?
Who is considered incompetent to form a contract according to Section 11?
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What does lawful consideration in a contract mean?
What does lawful consideration in a contract mean?
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Which of the following are considered void agreements? (Select all that apply)
Which of the following are considered void agreements? (Select all that apply)
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What distinguishes an express contract from an implied contract?
What distinguishes an express contract from an implied contract?
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Study Notes
The Indian Contract Act, 1872
- Regulates conduct related to contracts and determines conditions for legal enforceability.
- Provides remedies for breaches of contract.
- Not exhaustive; relies on definitions and sections within the Act.
Contract Definition
- Defined in Section 2(h) as "an agreement enforceable by law."
- An agreement requires a legally binding obligation.
Agreement Definition
- Defined in Section 2(e) as promises forming consideration for one another.
- Requires acceptance of a proposal with consensus ad idem, or "identity of minds."
- Can be oral, written, or implied by conduct.
Legal Obligation
- Essential for an agreement to become a contract.
- Distinction between contracts (legal obligations from agreements) and social obligations.
Essential Elements of a Contract (Section 10)
- Agreement: Results from clear offer and absolute acceptance; conditional acceptance is invalid.
- Intention to create legal relations: Necessary for business transactions; social, moral, or domestic agreements do not qualify.
- Free consent: Must be obtained without coercion, misrepresentation, undue influence, or fraud; voidable contracts arise from impaired consent.
- Contractual capacity (Section 11): Minors and persons deemed incompetent are unable to contract.
- Lawful consideration: Requires compensation given by both parties; must be real and valuable.
- Lawful object (Section 23): Object of the contract must be legal.
- Not expressly declared void: Certain agreements are automatically void (e.g., restraint of marriage/trade, uncertain agreements).
- Certainty of Terms: Terms must be clear and specific.
- Possibility of Performance: Contract must be capable of being executed.
- Legal formalities: Any required formalities must be fulfilled for enforceability.
Types of Contracts
- Valid Contract: Enforceable by law and meets all essential characteristics.
- Voidable Contract: Becomes void at the aggrieved party's option if consent was obtained through misrepresentation, coercion, undue influence, or fraud.
Types of Agreements
-
Express Contracts:
- Terms explicitly stated orally or in writing; all elements clearly communicated.
- Example: Written employment agreement detailing job responsibilities.
-
Implied Contracts:
- Formed based on behavior or circumstances rather than explicit communication; terms inferred from actions.
- Example: A patient receiving medical care without formal agreement implies acceptance of treatment terms.
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Description
Test your understanding of Chapter 1 of the Indian Contract Act, 1872, which outlines the essential conditions for a valid contract. This quiz covers key concepts such as the definition of a contract and the legal implications of agreements. Enhance your knowledge of contract law through this engaging assessment.
