Legal Relationships in Family Agreements

Questions and Answers

What must be true for an agreement to be enforceable under the principle of certainty of meaning?

The terms must be certain and unambiguous. (correct)

The intention to create a legal relationship must be apparent.

The terms must be vague and open to interpretation.

The agreement must be written and notarized.

Which of the following statements about agreements lacking certainty of meaning is correct?

They can be enforced by the courts after a period of negotiation.

They are valid if both parties agree on the intent.

They are void under Section 29 of the Act. (correct)

They can be made certain through verbal clarification.

In what scenario would a contract regarding the sale of a car likely be considered void due to uncertainty?

If A agrees to sell a car but has not decided which car it is. (correct)

If the condition of the car is not specified.

If B refuses to pay for the car after agreeing on a price.

If the car is already sold to someone else.

Which of the following best describes a valid contract?

An agreement that meets all legal requirements. Signup and view all the answers

Which of the following is NOT a basis upon which contracts can be classified?

Type of medium used Signup and view all the answers

What would be the consequence of an agreement that cannot be made certain?

It will be void and unenforceable by law. Signup and view all the answers

Which legal formality is essential for a contract to be enforceable?

It must comply with writing and registration requirements. Signup and view all the answers

In an agreement where A offers to sell one of his five cars to B without indicating which car, this agreement is deemed:

Void for lack of certainty. Signup and view all the answers

What is the status of a contract when it becomes unenforceable due to technical defects?

It is valid but unenforceable. Signup and view all the answers

Which circumstance can render a contract void under Section 56?

Supervening impossibility or illegality. Signup and view all the answers

What defines a voidable contract according to Section 2 (i)?

It is enforceable at the option of one party. Signup and view all the answers

What happens to a contingent contract when the specified event becomes impossible?

It becomes void. Signup and view all the answers

What occurs when a party to a voidable contract repudiates it?

The contract becomes void. Signup and view all the answers

Under which condition does a contract become void due to the death of a party?

When the terms of the contract cannot be fulfilled. Signup and view all the answers

What happens to a contract if it is under stamped?

It becomes unenforceable. Signup and view all the answers

Which of the following does not constitute a reason for a contract to be void?

Mutual consent of both parties. Signup and view all the answers

What does certainty of meaning in a contract imply?

There must be a clear understanding of the terms by both parties. Signup and view all the answers

Which of the following is NOT a requirement of certainty of meaning in contracts?

Terms can include ambiguous clauses. Signup and view all the answers

How does certainty of meaning affect the enforceability of a contract?

It enhances the likelihood of the contract being upheld in court. Signup and view all the answers

What may happen if a contract lacks certainty of meaning?

The agreement may be declared void for vagueness. Signup and view all the answers

Which scenario indicates a violation of certainty of meaning in a contract?

The price of goods is listed as 'approximately $100'. Signup and view all the answers

Which of the following enhances certainty of meaning in a contract?

Including precise definitions for all key terms. Signup and view all the answers

What role do written contracts play in ensuring certainty of meaning?

They provide a permanent record that can clarify terms. Signup and view all the answers

If a contract states that goods will be delivered 'at a convenient time', what issue does this present?

It can create disputes due to lack of specificity. Signup and view all the answers

Study Notes

Presumption of Legal Relationship

Courts presume no intention to create legal relationships in familial agreements; highlighted by a mother seeking possession from her daughter who refused to comply.

Agreements Between Friends

Case: Coward v Motor Insurance Bureau (1963) involves Mr. Coward, a passenger on a friend's motorcycle who contributed to petrol costs.
Court ruled no enforceable contract existed due to lack of intention to create a legal relationship; thus, Mr. Coward's injury claim was invalid as no contract of hire for carriage existed.

Certainty of Meaning

Agreements must be certain and unambiguous; vague terms render them void.
Example: An intention to sell a specific car without identifying which among several results in an uncertain agreement, thus void.

Legal Formalities

Contracts must comply with specific legal formalities (writing, registration, stamping) to be enforceable.

Classification of Contracts

Contracts can be classified by enforceability, mode of creation, and execution.

Valid Contract Essentials (Indian Contract Act, 1872)

Must demonstrate intention to create a legal relationship, lawful consideration, and capacity of parties.
Requires legal formalities, not declared void, and must be possible and certain with a lawful object.
Free consent and clear offer and acceptance are also essential.

Offer and Acceptance

Agreements result from lawful offers and acceptances, indicating mutual consent.

Consensus ad Idem

Valid agreements require complete mutual understanding (identity of minds) concerning the subject matter.

Consent must be given freely, without coercion, undue influence, fraud, misrepresentation, or mistakes.

Capacity of Parties

Contracting parties must possess the mental and intellectual capacity to comprehend and agree to the terms.
Incompetent individuals (minors, intoxicated, mentally incapacitated) create legally null agreements.

Lawful Consideration

Contracts need lawful consideration; agreements not supported by consideration are termed nudum pactum.
Both parties must give and receive something for enforcement to apply.

Lawful Object

The purpose of the agreement must comply with legal standards; agreements deemed illegal, immoral, or fraudulent are void.

Non-void Declaration

Agreements must not be expressly declared void by existing laws in India for them to be enforceable.

Void Contracts

Defined as those ceasing to be enforceable by law upon specific conditions (e.g., supervening impossibility, illegality).
Example: A promise to pay B after a set period becomes void upon A’s death before the term.

Voidable Contracts

Enforceable at the discretion of one party, while the other may nullify it if consent is not free.

Unenforceable Contracts

Valid but unenforceable contracts due to technical issues (e.g., lack of proof, expired enforceability).
Example: Contracts requiring essential documentation (like stamps) become enforceable upon rectification if permissible.

Studying That Suits You

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

Description

This quiz explores important legal principles surrounding familial agreements and their enforceability, focusing on key cases such as the mother-daughter dispute over possession and Coward v Motor Insurance Bureau. Understand the implications of intention in legal relationships through illustrative examples.