Indian Contract Act, 1872 Quiz

A contract that becomes legally enforceable only when a specific future event happens.

When the event that makes a contingent contract enforceable becomes impossible, the contract cannot be enforced.

A contingent contract can be enforced when the event it's tied to doesn't happen, but that event becomes impossible.

If a contract depends on a person's future actions at an unspecified time, it becomes impossible if that person makes it impossible for those actions to happen within a reasonable time.

A contract contingent on an event happening within a specific time becomes void if the event doesn't happen within that time.

Contracts enforceable under Indian Contract Act, 1872: Section 32, 33, 34, 35

A shareholder has the right to transfer their shares according to the company's articles of association and the Companies Act.

Shareholders have the right to inspect the company's register of members and debenture holders, including obtaining extracts from these records.

Shareholders have the right to attend general meetings, obtain minutes of proceedings, and inspect the minutes.

Shareholders have the right to apply to the Tribunal to challenge any changes that affect their rights.

Shareholders can participate in the removal of directors through an ordinary resolution.

The management team's ethical practices and values create a strong foundation for business success.

Ethical leadership sets a positive example for employees, fostering trust, stability, and better decision-making.

Ethical behavior leads to improved productivity, employee morale, and loyalty, benefiting the whole organization.

An application for gratuity must be filed within 30 days of the gratuity becoming payable, unless the employee is a legal heir, in which case the application must be filed within one year.

A debenture is a type of debt security issued by a company to raise capital. It typically involves a promise to pay back the principal amount, along with interest payments, at a specified future date. Debentures can be secured (backed by collateral) or unsecured.

If an application for gratuity is filed late, the employer can accept it if the applicant provides a valid reason for the delay.

A charge is a legal right that allows a creditor (e.g., a debenture holder) to claim ownership of a specific asset (like property or equipment) owned by a company if the company defaults on its debt obligations. It acts as a security for the loan.

The controlling authority will decide any dispute about a late application for gratuity.

Secured debentures can be issued by companies, and the maximum redemption period is 10 years.

A debenture trustee is a third-party appointed to protect the interests of debenture holders and ensure the company complies with the terms of the debenture agreement. They act as a watchdog for the debt holders.

A debenture deed is a legal document that outlines the terms and conditions of the debentures (e.g., interest rates, repayment terms, rights of debenture holders). It lays the groundwork for the relationship between the company and the debt holders.

Companies engaged in infrastructure projects, Infrastructure Finance Companies, and Infrastructure Debt Fund Non-Banking Financial Companies are allowed to issue secured debentures with a redemption period longer than 10 years, but not exceeding 30 years.

The Companies (Share Capital and Debentures) Rules, 2014 set out the conditions for issuing secured debentures.

Section 164 of the 2013 Companies Act lists specific reasons why a person may not be eligible to serve as a director on a company's board. These disqualifications could be due to financial issues, criminal convictions, or other factors deemed to be detrimental to the company's interests.

The conditions for issuing secured debentures include the redemption date, the type of company issuing the debenture, and other factors.

The auditor's report must explicitly state whether the company maintains adequate internal financial control systems related to financial statements and how effective these controls are.

The report should outline any reservations, qualifications, or negative comments regarding the accuracy of accounts maintained by the company.

The auditors must confirm that the financial statements, like the balance sheet and profit & loss account, align accurately with the company's books and records.

The auditor's role is to ensure the company follows accounting standards; the report needs to state their opinion on whether these standards are adhered to.

Shareholders possess the right to call for an extraordinary general meeting (EGM) of the company.

One of the rights of shareholders is to receive official notification of any general meetings.

Shareholders have the right to appoint a representative to attend a general meeting if they are a corporate body.

Shareholders have the right to propose resolutions for the company to consider.

A contingent contract is void if the uncertain event does not occur within the fixed time. The contract is void even if the event becomes impossible before the fixed time.

A contingent contract can be enforced if the uncertain event does not happen within the fixed time, or if it becomes certain that the event will not happen before the time expires.

A bailor is responsible for disclosing any faults in the goods that could harm the bailee. Failure to do so can result in the bailor being held accountable for damages caused by those faults.

If the bailor fails to disclose faults in the goods, and these faults lead to loss or damage for the bailee, the bailor is responsible for the loss or damage.

A bailor is responsible for damages caused by faults in the goods, even if they were not aware of the faults, if the goods are rented for a fee.

A bailee must take reasonable care of the goods as if they were their own, considering the size, quality, and value of the goods.

If a bailee fails to meet the standard of care required by law and the goods are lost, the bailee is still liable, even if the goods belonged to the bailee themselves.

The case of Nagalinga Chettiyar v. Kayarohana Chettiyar established that a bailee cannot escape liability simply because their own goods were lost along with the bailed goods.