Law of Contract - Position in India
8 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following accurately describes a person who is usually of unsound mind but occasionally of sound mind?

  • They cannot make a contract at any time.
  • They can make contracts regardless of their mental state.
  • They cannot enter into any binding contracts.
  • They may make a contract only when they are of sound mind. (correct)

    • What is the legal status of a contract made by a person deemed a congenital idiot in India?

  • The contract is enforceable by either party.
  • The contract is absolutely void. (correct)
  • The contract is voidable at the discretion of the vendor.
  • The contract is valid if the other party was aware of the vendor's mental state.

    • Which situation illustrates a legally valid contract despite intoxication?

  • Someone who was intoxicated at the time but became sober immediately after.
  • A person who signs a contract while delirious from a fever.
  • An individual who is intoxicated but understands the contract terms. (correct)
  • A person so drunk that they cannot comprehend the terms of the contract.

    • Under what circumstances can a sale deed executed while drunk be set aside in India?

    <p>If the transferor was suffering from alcoholic psychosis.</p> Signup and view all the answers

    Which of the following individuals is disqualified from contracting according to the laws of India?

    <p>A person declared as insolvent.</p> Signup and view all the answers

    What distinguishes Indian law regarding contracts with the unsound mind from English law?

    <p>Indian law considers such contracts absolutely void.</p> Signup and view all the answers

    Which case illustrates the consequences of a vendor being mentally unsound during a sales transaction?

    <p>Inder Singh's Case with a significant undervalue sale.</p> Signup and view all the answers

    What is one condition under which a contract with an alien enemy is considered void?

    <p>If the contract is made during wartime.</p> Signup and view all the answers

    Study Notes

    Law of Contract - Position in India

    • A person of unsound mind is incompetent to contract, unless they are briefly lucid.
    • Sound mind for contractual purposes means a person capable of understanding the contract and its implications at the time of agreement.
    • Persons who are usually of unsound mind can make contacts only when of sound mind.
    • A contract by a person who is delirious or heavily intoxicated at the time is void if they can't rationally understand the effects.
    • Mere drunkenness doesn't automatically invalidate a contract provided there is sound judgment.

    Case Law Examples

    • Inder Singh's case: A property sale to a person deemed incapable of understanding the transaction was declared void.
    • Jyotirindra's case: A vendor's mental state was questioned due to prolonged absence from the family home and their altered disposition during significant periods. The contract was called into question.
    • Sale by a Drunken Person: A sale deed executed during alcoholic psychosis was successfully challenged in Supreme Court, invalidating an expensive property sale at a grossly undervalued price.

    Persons Disqualified from Contracting

    • Certain laws may disqualify certain people from contracting, such as those declared as alien enemies or insolvents.
    • Contracts with alien enemies are void.
    • Insolvents are restricted in contracting under relevant insolvency laws.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Explore the legal framework surrounding the competency to contract in India. This quiz covers crucial aspects, including the implications of mental state and intoxication on contract validity, supported by relevant case laws. Test your understanding of these important legal principles.

    More Like This

    Contract Law: Mutual Assent Flashcards
    13 questions

    Contract Law: Mutual Assent Flashcards

    ColorfulTaylor avatar
    ColorfulTaylor
    Contract Law Quiz
    22 questions

    Contract Law Quiz

    ColorfulTaylor avatar
    ColorfulTaylor
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser