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Questions and Answers
What does 'consensus ad idem' imply in a contractual context?
What does 'consensus ad idem' imply in a contractual context?
Which of the following is NOT a qualification for a person to be considered competent to contract?
Which of the following is NOT a qualification for a person to be considered competent to contract?
What is the legal term for 'something in return' in the context of consideration?
What is the legal term for 'something in return' in the context of consideration?
Which scenario exemplifies an agreement made under coercion?
Which scenario exemplifies an agreement made under coercion?
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Who among the following is generally disqualified from contracting?
Who among the following is generally disqualified from contracting?
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Which of the following individuals would be considered of sound mind in terms of capacity to contract?
Which of the following individuals would be considered of sound mind in terms of capacity to contract?
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What aspect of contracts does 'forbearance' refer to in terms of consideration?
What aspect of contracts does 'forbearance' refer to in terms of consideration?
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When is the communication of an offer considered complete when it is made by post?
When is the communication of an offer considered complete when it is made by post?
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Which statement correctly describes the moment of acceptance when communicated by post?
Which statement correctly describes the moment of acceptance when communicated by post?
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What does Section 4 of the Indian Contract Act, 1872 specify about the communication of offers?
What does Section 4 of the Indian Contract Act, 1872 specify about the communication of offers?
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What are the two modes of communication of acceptance specified in Section 3 of the Act?
What are the two modes of communication of acceptance specified in Section 3 of the Act?
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What challenge does distance communication present in the context of contracts?
What challenge does distance communication present in the context of contracts?
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In which situation does a contract become voidable at the option of one party?
In which situation does a contract become voidable at the option of one party?
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If a person is prevented from performing a contractual promise, what is the nature of the contract?
If a person is prevented from performing a contractual promise, what is the nature of the contract?
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What characterizes a void contract compared to a voidable contract?
What characterizes a void contract compared to a voidable contract?
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What happens if a promisee opts to rescind a voidable contract?
What happens if a promisee opts to rescind a voidable contract?
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In which of the following scenarios can a contract be voidable at the option of the promisee?
In which of the following scenarios can a contract be voidable at the option of the promisee?
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Which scenario cannot lead to a voidable contract?
Which scenario cannot lead to a voidable contract?
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When can a contract be voidable due to partial performance?
When can a contract be voidable due to partial performance?
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What legal recourse does an aggrieved party have if a contract is voidable?
What legal recourse does an aggrieved party have if a contract is voidable?
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Which factor does NOT contribute to the classification of a contract as voidable?
Which factor does NOT contribute to the classification of a contract as voidable?
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What is the primary distinction between an offer and an invitation to offer?
What is the primary distinction between an offer and an invitation to offer?
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Which of the following scenarios is an example of an invitation to offer?
Which of the following scenarios is an example of an invitation to offer?
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In the context of auctions, what is the role of the auctioneer?
In the context of auctions, what is the role of the auctioneer?
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What outcome occurs when a person accepts an invitation to offer?
What outcome occurs when a person accepts an invitation to offer?
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Which case illustrates that quoting a price does not constitute an offer?
Which case illustrates that quoting a price does not constitute an offer?
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Why is a prospectus considered an invitation to offer?
Why is a prospectus considered an invitation to offer?
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What does acceptance of an invitation to offer indicate?
What does acceptance of an invitation to offer indicate?
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What is the legal implication of stating a price for goods in an advertisement?
What is the legal implication of stating a price for goods in an advertisement?
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When does an invitation to offer transition into an offer?
When does an invitation to offer transition into an offer?
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What consequence follows from misinterpreting an invitation to offer as a binding offer?
What consequence follows from misinterpreting an invitation to offer as a binding offer?
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What is necessary for an acceptance to be valid in the case of the nephew and his uncle?
What is necessary for an acceptance to be valid in the case of the nephew and his uncle?
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In the case of A and the magazine subscription, what constitutes acceptance?
In the case of A and the magazine subscription, what constitutes acceptance?
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What does Section 8 of the Act state regarding acceptance by conduct?
What does Section 8 of the Act state regarding acceptance by conduct?
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What was the outcome for F in the case of Felthouse vs. Bindley?
What was the outcome for F in the case of Felthouse vs. Bindley?
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What action by a tradesman would indicate acceptance of an order?
What action by a tradesman would indicate acceptance of an order?
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What does mere silence indicate in the context of accepting an offer?
What does mere silence indicate in the context of accepting an offer?
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In the example of A selling his house, what is an essential factor for the validity of the contract?
In the example of A selling his house, what is an essential factor for the validity of the contract?
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Why could the auctioneer sell the horse in Felthouse vs. Bindley?
Why could the auctioneer sell the horse in Felthouse vs. Bindley?
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What is a common misconception regarding acceptance by silence?
What is a common misconception regarding acceptance by silence?
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What best describes implied acceptance?
What best describes implied acceptance?
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Study Notes
Indian Contract Act, 1872
- This act defines and amends certain parts of the law relating to contracts.
- It extends to the whole of India, including Jammu and Kashmir.
- Learning outcomes include understanding the meaning of terms "agreement" and "contract", the distinction between the two, essential elements of a contract, different types of contracts, the concept of offer and acceptance, and the rules of communication and revocation.
- Contract law before 1872 was based on various sources of Hindu law like Vedas, Dharam Shastras, Smritis etc.
- Mughal Law of Contract used the words 'Aqd' for contract, 'ljab' for proposal, and 'Qabul' for acceptance.
- Hindu law differed from English law, with rules for entering into contracts based on various factors like age, mental capacity, etc.
- Before 1872, the procedure for matters outside the Presidency Towns (Madras, Bombay, and Calcutta) was based on justice, equity, and good conscience.
- Contracts most important part of commercial law which affects trade and industry.
- The English law was used in the Presidency towns before the enactment of the Indian Contract Act.
- The law of contract was based on justice, equity and good conscience.
- The Indian Contract Act, 1872 codifies the legal principles that govern contracts.
What is a Contract?
- A contract is an agreement enforceable by law.
- It consists of an agreement and its enforceability by law
- An agreement is every promise and every set of promises, forming consideration for each other.
- A promise is when a person signifies his assent to a proposal being made.
- An agreement is the result of a proposal by one party and the acceptance of that proposal by the other party, with mutual consideration.
- A contract must give rise to a legal obligation.
Essentials of a Valid Contract
- Two parties
- Free consent
- Capacity of parties
- Lawful consideration
- Lawful object
- Not expressly declared to be void
- Legal formalities for certain contracts
- Certainty of meaning
- Possibility of performance
Types of Contracts
- Based on validity or enforceability: Valid, Void, Voidable, Illegal, Unenforceable
- Based on Formation: Express, Implied, Tacit, Quasi.
- Based on Performance: Executed, Executory, Unilateral, Bilateral.
Offer and Acceptance
- An offer (proposal) is a willingness to do or abstain from doing something, with the intention of obtaining assent to that act/abstinence.
- An offeror suggests something to an offeree
- Acceptance is the expression of agreement to the offer, resulting in a binding contract.
- Offer can be made to a specific person or to the general public
- An acceptance must be unconditional, unqualified, and with specific terms, in the mode specified, to be valid.
- Not merely expressing intention, but a willingness to create legal obligations.
- Communication of offer and acceptance is important.
- Various kinds of offers: General, Specific, Cross, Counter, Standing/Continuing.
Communication of Offer & Acceptance
- Offer's communication is complete when it's brought to the offeree's notice.
- Acceptance is complete: (i) when the acceptance is communicated to the offeror, and (ii) when the proposal is put into transmission to the offeror so that, it's out of power of the acceptor to change it.
- An offeror can revoke an offer before acceptance is communicated to them.
- An offeree can revoke their acceptance if the revocation is communicated to the offeror, before the communication of acceptance reaches them.
Revocation of offer and acceptance
- An offer can be revoked at any time before it is accepted.
- An acceptance can be revoked any time before it is communicated.
- Revocation of offer is complete when it reaches the offeree.
- Revocation of acceptance is complete when the revocation is communicated to the offeror.
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Description
Test your knowledge on the Indian Contract Act, 1872 with this quiz. It covers key concepts such as competency to contract, consideration, and the communication of offers and acceptances. Challenge yourself with questions that explore coercion and the principles of sound mind in contracts.
