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What is the legal status of a promise made without consideration?
What is the legal status of a promise made without consideration?
In which situation can a promise be deemed valid even if it lacks consideration?
In which situation can a promise be deemed valid even if it lacks consideration?
What must be proven for a promise related to natural love and affection to be enforceable?
What must be proven for a promise related to natural love and affection to be enforceable?
Why is the promise made to pay an additional amount to a lawyer for a successful lawsuit considered void?
Why is the promise made to pay an additional amount to a lawyer for a successful lawsuit considered void?
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What is required for consideration to be deemed enforceable?
What is required for consideration to be deemed enforceable?
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Which of the following obligations can be enforceable even without consideration?
Which of the following obligations can be enforceable even without consideration?
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What principle governs the enforceability of an agreement made without consideration?
What principle governs the enforceability of an agreement made without consideration?
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What characterizes consideration that is 'uncertain' in a legal context?
What characterizes consideration that is 'uncertain' in a legal context?
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What happens to an offer if the specified time for acceptance has expired?
What happens to an offer if the specified time for acceptance has expired?
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Which condition does not cause an offer to lapse?
Which condition does not cause an offer to lapse?
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If a counter offer is made, what happens to the original offer?
If a counter offer is made, what happens to the original offer?
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What is required for 'Acceptance' to be considered valid?
What is required for 'Acceptance' to be considered valid?
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Acceptance of an offer cannot be considered valid if:
Acceptance of an offer cannot be considered valid if:
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Which of the following is NOT a mode through which an offer can lapse?
Which of the following is NOT a mode through which an offer can lapse?
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What defines a 'Tender' in the context of an invitation to offer?
What defines a 'Tender' in the context of an invitation to offer?
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Under which circumstance does an offer not lapse due to the acceptance process?
Under which circumstance does an offer not lapse due to the acceptance process?
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Which of the following scenarios best illustrates past consideration?
Which of the following scenarios best illustrates past consideration?
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In the case of Chinnaiya V/s Rammaiya, who was considered to have provided consideration?
In the case of Chinnaiya V/s Rammaiya, who was considered to have provided consideration?
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Which statement accurately describes future consideration?
Which statement accurately describes future consideration?
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What does it mean when consideration is said to be adequate?
What does it mean when consideration is said to be adequate?
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Which of the following would NOT be considered real consideration?
Which of the following would NOT be considered real consideration?
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Which type of consideration occurs simultaneously with a promise?
Which type of consideration occurs simultaneously with a promise?
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What is a key requirement for consideration in a contract?
What is a key requirement for consideration in a contract?
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In legal terms, consideration that is based on a promise made for something that happened in the past is known as:
In legal terms, consideration that is based on a promise made for something that happened in the past is known as:
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What happens to a debt that remains unpaid for a period of 3 years?
What happens to a debt that remains unpaid for a period of 3 years?
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Under which condition can an agent's appointment be valid according to the Indian Contract Act?
Under which condition can an agent's appointment be valid according to the Indian Contract Act?
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What is a valid characteristic of gifts made under the Indian Contract Act?
What is a valid characteristic of gifts made under the Indian Contract Act?
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What does 'Privity of Contract' imply?
What does 'Privity of Contract' imply?
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What is an exception to the doctrine of 'Privity of Contract'?
What is an exception to the doctrine of 'Privity of Contract'?
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In the case of a debt owed by A to B, if A sells property to C who promises to pay A's debt, what is the outcome if C defaults?
In the case of a debt owed by A to B, if A sells property to C who promises to pay A's debt, what is the outcome if C defaults?
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What section of the Indian Contract Act discusses the necessity of consideration in creating an agency?
What section of the Indian Contract Act discusses the necessity of consideration in creating an agency?
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Why might it be important to have consideration in a contract according to traditional contract law?
Why might it be important to have consideration in a contract according to traditional contract law?
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What happens if one party wrongfully refuses to accept the performance of a contract?
What happens if one party wrongfully refuses to accept the performance of a contract?
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Which of the following is NOT a mode of dissolving a contract by mutual consent?
Which of the following is NOT a mode of dissolving a contract by mutual consent?
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In the context of contract discharge by remission, what does it mean?
In the context of contract discharge by remission, what does it mean?
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What is meant by 'waiver' in the context of contracts?
What is meant by 'waiver' in the context of contracts?
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Which of the following causes a contract to be discharged due to impossibility?
Which of the following causes a contract to be discharged due to impossibility?
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What does 'accord and satisfaction' imply in contract law?
What does 'accord and satisfaction' imply in contract law?
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Under what circumstance is a contract automatically discharged?
Under what circumstance is a contract automatically discharged?
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Which mode of dissolving a contract involves creating an entirely new contract?
Which mode of dissolving a contract involves creating an entirely new contract?
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What occurs when one party to a contract becomes physically or mentally incapable of performing their duties?
What occurs when one party to a contract becomes physically or mentally incapable of performing their duties?
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Which event does NOT result in the discharge of a contract according to the specified principles?
Which event does NOT result in the discharge of a contract according to the specified principles?
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If war is declared between two countries whose citizens are parties to a contract, what happens to the contract?
If war is declared between two countries whose citizens are parties to a contract, what happens to the contract?
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What happens to a contract if one party is declared insolvent before its performance?
What happens to a contract if one party is declared insolvent before its performance?
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What type of breach occurs when a promisor informs the promisee that they will not keep their promise before the performance date?
What type of breach occurs when a promisor informs the promisee that they will not keep their promise before the performance date?
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Which event does NOT typically lead to the discharge of a contract?
Which event does NOT typically lead to the discharge of a contract?
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In the event of an actual breach of contract, what is the right of the non-breaching party?
In the event of an actual breach of contract, what is the right of the non-breaching party?
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What is the consequence if the subject matter of a contract is destroyed before performance?
What is the consequence if the subject matter of a contract is destroyed before performance?
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Study Notes
Indian Contract Act 1872
- A contract is an agreement enforceable by law
- Agreement = Offer + Acceptance
- Contracts need agreement and enforceability at law
- Social agreements aren't contracts
- Domestic agreements aren't contracts unless there's intent to form a legal relationship
Essential Elements of a Valid Contract
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Offer and acceptance: A definite offer and absolute acceptance
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Intention to create legal relations: Social or domestic agreements aren't contracts
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Lawful consideration: Something in return for a promise
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Capacity of parties: Must be major, of sound mind, not disqualified by law
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Free consent: Agreement must be given freely
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Lawful object: The object of the agreement must not be illegal, immoral, or against public policy
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Certainty and possibility of performance: Terms must be certain and achievable
Offer and Proposal
- Offer: A proposal from one party to another, intending to create a binding agreement.
- Types of offer: Express (oral/written), implied (conduct), general (to public), specific (to one person)
- Essentials of a valid offer: Clear, definite terms; intention to create a legal relation; and communication to the offeree
Acceptance
- Acceptance: Manifestation of agreement to the exact terms of an offer.
- Essentials of a valid acceptance: Unconditional; communicated to the offeror; must be absolute; and in proper form.
- Acceptance must be done before the offer lapses or is revoked and communicated
Consideration
- Consideration: Something of value given in exchange for a promise or an act.
- Consideration must move at the desire of the promisor
- Consideration need not be adequate
- Consideration must be real, not fictitious or impossible
- Past Consideration: not valid
- Exceptions: Natural love and affection
- Illegal consideration
- Gratuitous promise or gift
- Promise to pay time barred debt
- Exceptions: Contracts not enforceable unless registered
Revocation of Offer
- Revocation: Withdrawal of an offer before acceptance.
- Lapse of offer
- Time Limit: Offer lapses if no acceptance within stipulated time
- Failure to fulfill a condition: Offer lapses if the condition in the offer is not met.
- Death or insanity: Offer lapses with death or insanity of the offeror or offeree
Stranger to a Contract
- Privity of contract: Principle that only parties to a contract can enforce it or be bound by it.
- Exceptions: Trust or Charge, Family arrangements
- Acknowledgement
Discharge of Contract
- Discharge of contract: Termination of a contract's obligations
- Performance of contract: The parties fulfil their obligations
- Agreement: Both parties agree to cancel the contract
- Impossibility of performance: If performance becomes impossible, the contract ends.
- Breach of contract: One party fails to fulfil contractual obligations
Quantum Meruit
- Quantum Meruit: "as much as earned"
- A claim for payment for work already done, even if the original agreement is not valid
- Claim can only be made when the original contract is broken
Capacity of Parties
- Competency: Legal ability to enter into a contract
- Minors: Contracts with minors (under 18) are voidable
- Unsound mind: Those with unsound mind aren't competent
- Others disqualified: Illegal aliens and convicts, or those disqualified by law
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Description
Test your knowledge on the Indian Contract Act 1872, focusing on the essential elements of a valid contract including offer and acceptance, legal relations, and lawful consideration. Dive deep into the nuances of contracts, distinguishing between social agreements and enforceable contracts.
