Indian Contract Act, 1872 Overview
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Indian Contract Act, 1872 Overview

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Questions and Answers

What distinguishes an agreement from a contract?

  • An agreement must involve multiple parties whereas a contract can involve one.
  • An agreement is not enforceable by law while a contract is. (correct)
  • An agreement requires a written document whereas a contract does not.
  • An agreement can be verbal, but a contract must be in writing.

    • Which of the following is NOT an essential element of a valid contract?

  • Acceptance
  • Legal enforceability
  • Offer
  • Breach of contract (correct)

    • Which type of contract is characterized by mutual obligations between parties?

  • Void contract
  • Bilateral contract (correct)
  • Unilateral contract
  • Implied contract

    • What is the significance of 'Ijab' in contract law during the Mughal era?

    <p>It is the Arabic term for proposal.</p> Signup and view all the answers

    What role does 'offer' play in the formation of a contract?

    <p>It serves as the first step in communication.</p> Signup and view all the answers

    During which period were contracts based on free consent in India?

    <p>Maurya period</p> Signup and view all the answers

    Which term refers to the mutual consent required for forming a contract during the Mughal era?

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

    What kind of offer does not require the acceptance of a performance to create a contract?

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

    What distinguishes an offer from an invitation to offer?

    <p>An offer is made with the intention to be bound by its terms.</p> Signup and view all the answers

    Which of the following is an example of an invitation to offer?

    <p>A request for quotation on pricing.</p> Signup and view all the answers

    According to the definition of acceptance, what does it mean when a proposal is accepted?

    <p>The offeree agrees to the proposal without modifications.</p> Signup and view all the answers

    What is the legal standing of an advertisement for auction sales?

    <p>It is an invitation to offer.</p> Signup and view all the answers

    In the context of invitations to offer, what scenario reflects intent to negotiate?

    <p>Showing goods in a store.</p> Signup and view all the answers

    What is true regarding the sequence of offers and invitations to offer?

    <p>An offer can follow an invitation to offer.</p> Signup and view all the answers

    What does it indicate when a person expresses an intent to negotiate?

    <p>They are inviting the other to create a counter-offer.</p> Signup and view all the answers

    Which of the following best represents the nature of acceptance?

    <p>It can include non-verbal gestures.</p> Signup and view all the answers

    What is necessary for the communication of acceptance to be complete as against the proposer?

    <p>The acceptance must be put in the course of transmission</p> Signup and view all the answers

    When does the communication of acceptance become complete for the acceptor?

    <p>When the letter of acceptance reaches the proposer</p> Signup and view all the answers

    Which of the following best describes an act of conduct that conveys acceptance?

    <p>Usage of a service offered by a company</p> Signup and view all the answers

    What happens if a proposal is accepted but the acceptance is not communicated?

    <p>There is no communication and hence no contract</p> Signup and view all the answers

    What is the significance of properly addressing and stamping the letter of acceptance?

    <p>It is necessary for the contract’s enforceability</p> Signup and view all the answers

    In the context of communication, what does 'mere mental unilateral assent' refer to?

    <p>An uncommunicated acceptance of an offer</p> Signup and view all the answers

    According to the rules of communication, when is a proposer bound by the contract after acceptance is sent by post?

    <p>When the letter is posted</p> Signup and view all the answers

    What is the outcome if the letter of acceptance is delayed or lost in transit?

    <p>The contract remains valid</p> Signup and view all the answers

    What is a contract that is unenforceable by law called?

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

    Which of the following statements about voidable contracts is true?

    <p>They are enforceable at the option of one party only.</p> Signup and view all the answers

    What constitutes a valid acceptance of an offer?

    <p>Acceptance that is absolute and unqualified.</p> Signup and view all the answers

    Under what condition is communication of an offer considered complete?

    <p>When it comes to the knowledge of the offeree.</p> Signup and view all the answers

    Which statement about a general offer is correct?

    <p>It can be accepted by anyone.</p> Signup and view all the answers

    When is communication of acceptance complete against the offeror?

    <p>When it is put in the course of transmission.</p> Signup and view all the answers

    How does revocation of an offer become complete against the person making it?

    <p>When it is put into a course of transmission.</p> Signup and view all the answers

    What is needed for an offer to create legal relations?

    <p>The offer must have the intention to create legal relations.</p> Signup and view all the answers

    Under Indian law, when can B revoke his acceptance of an offer?

    <p>Any time before the acceptance letter reaches A.</p> Signup and view all the answers

    What is the main difference between English law and Indian law regarding acceptance of an offer?

    <p>Revocation of acceptance is possible in Indian law until it reaches the offeror.</p> Signup and view all the answers

    How is a contract typically formed over the telephone under Indian law?

    <p>The contract is formed upon acceptance, provided it is confirmed received.</p> Signup and view all the answers

    What happens if B accepts an offer in a letter and A revokes it before the letter arrives?

    <p>The revocation is effective and the contract does not exist.</p> Signup and view all the answers

    What occurs when a contract proposal lapses due to the passage of time?

    <p>The offer is no longer valid for acceptance.</p> Signup and view all the answers

    Which of the following best describes the revocation method through direct communication?

    <p>The proposer can communicate the revocation via phone or in writing.</p> Signup and view all the answers

    What should the acceptor do if the telephone unexpectedly disconnects during a conversation?

    <p>Confirm with the proposer that acceptance was heard.</p> Signup and view all the answers

    What does an offeror do if they receive a better bid after making an offer to another party?

    <p>The offer can be revoked before acceptance is communicated.</p> Signup and view all the answers

    Study Notes

    Indian Contract Act, 1872

    • The Indian Contract Act, 1872, governs contracts in India.

    Nature of Contracts

    • An agreement is a promise or set of promises forming the basis of a contract.
    • A contract is an agreement enforceable by law.

    Essential Elements of a Contract

    • Offer: A clear and definite proposal by the offeror to the offeree.
    • Acceptance: Unqualified and absolute agreement to the terms of the offer by the offeree.
    • Consideration: Something of value exchanged between the parties.
    • Capacity: Parties should be legally competent to enter into a contract.
    • Legality: The contract's purpose must be lawful and not against public policy.
    • Free consent: Agreement should be voluntary and without undue influence, coercion, misrepresentation, or fraud.

    Types of Contracts

    • Express contracts: Explicitly stated in words, oral or written.
    • Implied contracts: Arising from the conduct of the parties.
    • Void contracts: Not enforceable by law.
    • Voidable contracts: Enforceable at the option of one party.
    • Unilateral contracts: One party makes a promise in exchange for an act.
    • Bilateral contracts: Mutual promises exchanged between parties.

    Offer

    • An offer is a final expression of willingness by the offeror to be bound by the offer if the other party accepts.
    • An offer differs from an invitation to offer, which is a mere willingness to negotiate further.
    • Examples of invitation to offer include:
      • Prospectus issued by a company seeking subscriptions for its shares.
      • Display of goods for sale in shop windows.
      • Advertising auction sales.
      • Quotation of prices sent in reply to a query regarding price.

    Communication and Revocation of Offer

    • Communication of an offer is complete when it comes to the knowledge of the offeree.
    • Revocation of an offer can be done by:
      • Notice of revocation: Communicating the intent to withdraw the offer.
      • Lapse of time: When the offer is not accepted within the specified time or a reasonable time.

    Acceptance

    • Acceptance is the offeree's unqualified assent to the terms of the offer.
    • Communication of acceptance is complete:
      • As against the offeror, when it's put in the course of transmission.
      • As against the acceptor, when it comes to the knowledge of the offeror.
    • Revocation of acceptance can be done by the acceptor any time before the letter of acceptance reaches the offeror.

    Contract Through Post

    • In India, a contract is complete through post when the letter of acceptance is posted, even if it gets lost in transit.
    • The acceptor can revoke their acceptance before the letter of acceptance reaches the offeror.

    Contract over Telephone

    • A contract can be made over the phone with the same rules as in a face-to-face setting.
    • Communication of acceptance is crucial.

    Contract Law before Indian Contract Act, 1872

    • Ancient and medieval times relied on sources like Vedas, Dharam Shastras, Smritis, and Shrutis for contract law.
    • During the Mauryas, contracts were "bilateral transactions" based on free consent.
    • During the Mughal rule, contracts were governed by Mohammedan Law, using Arabic terms like ‘Aqd’ (contract), ‘Ijab’ (proposal), and ‘Qabul’ (acceptance).

    This text discusses some basic concepts of the Indian Contract Act, 1872, including the definition of contracts, essential elements, offer, acceptance, and different types.

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    Indian Contract Act, 1872 PDF

    Description

    Explore the key concepts and essential elements of the Indian Contract Act of 1872. Understanding agreements, contracts, and their types provides a solid foundation for legal studies in India. This quiz will test your knowledge of the nature and legality of contracts.

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