Law Of Contract: Nature And Kinds! Quiz

A contract is a legally binding agreement between two or more parties. It means that the terms and conditions agreed upon by the parties involved can be enforced by law. This implies that if any party fails to fulfill their obligations as stated in the contract, the other party can seek legal remedies to enforce the agreement. The phrase "enforceable by law" emphasizes the legal validity and enforceability of a contract.

The correct answer is True. In order for an agreement to be valid, there must be two parties involved. One party must make an offer, and the other party must accept that offer. This is a fundamental requirement for a legally binding agreement.

A contract is a legally binding agreement between two or more parties that is enforceable by law. It involves an offer, acceptance, consideration, and an intention to create legal relations. Once a contract is formed, the parties involved are obligated to fulfill their respective promises and can seek legal remedies if any party breaches the contract. Therefore, a contract is the correct answer as it refers to an agreement that is enforceable by law.

The statement "All contracts are agreements but all agreements are not contracts" is true because it reflects the legal position. In legal terms, a contract is a specific type of agreement that is enforceable by law. Therefore, every contract is an agreement, but not every agreement meets the requirements to be considered a contract. This means that while all contracts are agreements, there are some agreements that do not qualify as contracts.

An agreement that is enforceable by law means that it is legally binding and can be enforced in a court of law if any party fails to fulfill their obligations. This implies that the agreement has met all the necessary legal requirements and is valid under the law. Therefore, it is a stronger and more secure form of agreement compared to others such as those made by parties, made by a minor, or beneficial to both parties, which may not necessarily have legal consequences.

The competency or capacity of the parties involved is an essential element of a valid contract. Minors, who are individuals under the age of majority, and persons of unsound mind, who are not mentally capable of understanding the terms and consequences of a contract, lack the legal capacity to enter into enforceable agreements. Therefore, agreements with both minors and persons of unsound mind are not enforceable in a court of law.

An implied contract refers to an agreement between parties that is not explicitly stated in writing or through express words. However, it is still considered valid if certain conditions are met. This means that an implied contract holds the same legal effect as an express contract, which is a contract that is explicitly stated in writing or through verbal communication. Therefore, the statement "True, as an implied contract has the same effect as an express" is correct.

All of these conditions must be met for an agreement to be considered a contract. Firstly, the agreement must be made by the free consent of both parties, meaning that there is no coercion or undue influence involved. Secondly, there must be a lawful consideration, which refers to something of value being exchanged between the parties. Lastly, the agreement must have a lawful object, meaning that it must not involve any illegal activities or go against public policy. Thus, all three conditions mentioned in the answer - free consent, lawful consideration, and lawful object - are necessary for an agreement to be considered a contract.

An agreement enforceable by law, under the Indian Contract Act, may be either in writing or oral. This means that a contract can be valid and legally binding even if it is not written down and can be based solely on verbal communication between the parties involved. This is because the Indian Contract Act recognizes both written and oral agreements as enforceable, as long as they meet the necessary legal requirements. Therefore, the correct answer is either (a) or (b).

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The correct answer is "All of these". This is because free consent is a crucial requirement for a valid contract, and it is considered to be lacking when it is obtained through fraud, coercion, or undue influence. Fraud refers to intentionally deceiving someone to gain their consent, coercion involves the use of force or threat to obtain consent, and undue influence occurs when one party takes advantage of their dominant position to influence the other party's decision-making. Therefore, if any of these factors are present, the consent is not considered to be free, and the contract may be deemed invalid.

When B dies, the contract of marriage between A and B automatically becomes void. This is because marriage is a contract that requires the consent and participation of both parties, and if one party is deceased, the contract cannot be fulfilled. Therefore, the contract becomes void and A is no longer obligated to marry B.

Both equations (a) and (b) are correct. The equation "Contract = agreement + enforceability" is a general definition of a contract, stating that a contract is formed when there is an agreement between parties and it is legally enforceable. The equation "Agreement = offer + acceptance" is a specific definition of an agreement, stating that an agreement is formed when one party makes an offer and the other party accepts it. Therefore, both equations are correct and provide different levels of specificity in defining the concept of a contract.

A valid contract under the Indian Contract Act can be in writing only or implied only. This means that a contract can be legally binding if it is documented in writing or if it is inferred from the conduct and actions of the parties involved. The Act does not require a contract to be registered in order to be valid. Therefore, the correct answer is either (a) or (b).

An implied contract is a contract that is not explicitly stated or written down but is inferred from the actions or behavior of the parties involved. In this case, the correct answer is "act or conduct of the parties" because an implied contract is created based on the actions, behavior, or conduct of the parties involved, rather than being explicitly stated in written or verbal form. This means that the parties may not have formally agreed to the contract, but their actions and conduct imply that they have entered into a contractual agreement.

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Registration of agreement is not an essential element of a valid contract. While registration can provide evidence of the contract's existence, it is not necessary for the contract to be legally binding. The essential elements of a valid contract include free consent of parties, competency of parties, and lawful consideration and object. These elements ensure that the contract is entered into willingly, by parties who are legally capable, and for a lawful purpose.

An agreement with a party who is not competent to contract is considered void because it lacks the legal capacity to be enforceable. When one of the parties involved in a contract is not competent, such as a minor or a mentally incapacitated person, the agreement is deemed invalid from the beginning. It is as if the contract never existed, and neither party can be held legally bound by its terms.

In this case, there is an implied contract that A will pay for the cup of tea. This means that although there was no explicit agreement or verbal contract, it is understood that when someone enters a restaurant and orders a cup of tea, they are expected to pay for it. This is a common practice in most restaurants and establishments where customers are expected to pay for the goods or services they receive.

An executory contract refers to a contract where one or both parties still have obligations to fulfill in the future. This means that the terms of the contract have been agreed upon, but the performance or completion of those terms is yet to occur. In contrast, an executed contract is one where all parties have fulfilled their obligations and the contract is considered complete. A unilateral contract involves one party making a promise in exchange for a specific action from the other party. Therefore, the correct answer is executory contract.

The given answer is true because section 1 to 75 of the law of contract lay down the general principles that are applicable to all kinds of contracts, regardless of their nature. These principles provide a foundation for understanding and interpreting the law of contract and are applicable in various situations. Therefore, it can be concluded that the general principles of the law of contract apply to all kinds of contracts.

"Jus in personam" refers to a legal right or claim that is enforceable against a specific person. It is a Latin term commonly used in legal systems to indicate a personal right that can be enforced through legal action against an individual. This term is often contrasted with "jus in rem," which refers to rights that are enforceable against the world at large or against specific property. Therefore, the correct answer is a specific person.

The agreement is not certain because there are two alternative prices mentioned for the sale of the car. The terms of the agreement should be clear and definite, but in this case, it is ambiguous whether the car will be sold for Rs.50,000 or Rs.70,000. This lack of certainty makes the agreement invalid.

The correct answer is The Indian Contract Act, 1872. This act is a legislation in India that governs contracts and agreements between parties. It provides rules and regulations regarding the formation, performance, and enforcement of contracts. The act defines important concepts like offer, acceptance, consideration, and breach of contract. It also outlines the rights and obligations of the parties involved in a contract. The Indian Contract Act, 1872 is the relevant law in India for all contractual matters.

The Indian Contract Act came into force on 1st Sep, 1872.

The correct answer is Section 1 to 75 because these sections contain the general principles of the law of contract. These sections outline the essential elements of a contract, such as offer and acceptance, consideration, capacity of parties, and legality of the contract. They also cover topics like the interpretation of contracts, discharge of contracts, and remedies for breach of contract. Therefore, Section 1 to 75 is the appropriate section to refer to when studying the general principles of the law of contract.

An agreement must be supported by a lawful consideration, which means that the consideration should not be forbidden by law, immoral, or opposed to public policy. In other words, for an agreement to be valid, the consideration involved must be legal, ethical, and in line with public interest. If any of these conditions are not met, the agreement would not be enforceable.

The statement "Every agreement is a contract" is incorrect. While it is true that an agreement enforceable by law is a contract, not every agreement qualifies as a contract. For an agreement to be considered a contract, it must fulfill certain legal requirements such as offer, acceptance, consideration, and intention to create legal relations. Therefore, it is incorrect to say that every agreement is a contract as there are agreements that do not meet these requirements and are not legally binding.

An agreement is considered a contract if it creates a legal obligation. This means that the parties involved in the agreement are legally bound to fulfill their obligations as stated in the contract. Moral and social obligations may influence a person's behavior, but they do not have the same legal enforceability as a contract. Therefore, the correct answer is legal obligation.

An agreement the meaning of which is uncertain is considered void. This means that the agreement is not legally binding and has no legal effect. The uncertainty in the meaning of the agreement makes it impossible to determine the rights and obligations of the parties involved. Therefore, the agreement is considered void and cannot be enforced in a court of law.

An agreement to do an impossible act is considered void because it lacks the essential element of feasibility. In contract law, an agreement must be capable of being performed by the parties involved. If the act is impossible to accomplish, the agreement is deemed invalid and unenforceable.

A valid contract is one that satisfies the conditions of enforceability laid down in Section 10. This means that the contract must meet certain requirements such as having free consent, lawful consideration, lawful object, and being entered into by parties who are competent to contract. If a contract does not meet these conditions, it may not be considered valid and enforceable in a court of law.

The correct answer is "All agreements are contracts [Section 10]." This statement is incorrect because not all agreements are contracts. In order for an agreement to be considered a contract, it must fulfill certain legal requirements such as the presence of lawful consideration, free consent of the parties, and a lawful object. Section 10 of the Indian Contract Act states that all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object. However, this statement is incorrect as it fails to consider the other requirements for a valid contract.

In this case, no agreement came into existence because there was no consensus ad idem, which means that both parties did not have a mutual understanding or agreement on the subject matter of the contract. A offered to sell one horse to B, but while making the offer, A had the white horse in mind. B accepted the offer thinking it was made for the brown horse. Since both parties had different understandings of the offer, there was no consensus ad idem, and therefore no valid agreement was formed.

A void contract is one that ceases to be enforceable by law. This means that the contract becomes invalid and cannot be enforced by either party involved. There may be various reasons for a contract to become void, such as if it is illegal, against public policy, or if one of the parties lacks the legal capacity to enter into a contract. Once a contract is void, it is as if it never existed in the eyes of the law, and the parties are not bound by its terms.

A voidable agreement is one that can be enforced or canceled at the option of one party. This means that the party who has the option can choose to either enforce the agreement or declare it void. This flexibility allows for the agreement to be legally binding but also provides an escape route if one party decides they no longer want to be bound by its terms.

A promise is a commitment made by one party to another to perform a certain action or fulfill a certain obligation. In the context of a contract, a promise is an essential element. It is an expression of intent to enter into a legally binding agreement. Without a promise, there can be no contract. Therefore, the correct answer is "Promise".

Consideration is the correct answer because it refers to the exchange of something of value between parties in a contract. In order for an agreement to be legally binding, there must be consideration, meaning both parties must give or promise something of value to each other. This exchange of promises or acts is what makes a promise or set of promises legally enforceable and transforms it into a binding agreement.

An express contract can be made either in writing or by words of mouth. This means that the terms and conditions of the contract can be communicated and agreed upon through written documents or through verbal communication. The important aspect of an express contract is that the parties involved clearly express their intentions and come to a mutual agreement, regardless of the method of communication used. The contract does not necessarily have to be on a stamp paper or be exclusively in writing or by words of mouth.

The correct answer is "All of these" because contracts can be classified into different categories based on their enforceability. Valid contracts are legally binding and enforceable, meaning both parties are obligated to fulfill their obligations. Void contracts, on the other hand, lack legal validity from the beginning, often due to illegal or impossible terms. Voidable contracts are initially enforceable but can be canceled or voided by one party due to certain circumstances or legal reasons. Therefore, "All of these" options cover the various classifications of contracts based on their enforceability.

The agreement between A and B is not valid because it is an agreement in restraint of marriage. According to the Indian Contract Act, any agreement that restricts a person's freedom to marry is considered void. Therefore, the correct answer is "Is expressly declared to be void."

B is liable to pay for the goods because he treated and used the goods as his own, even though they were left at his house by mistake. This can be considered as conversion, which is the unauthorized assumption and exercise of the right of ownership over another person's goods. B's actions can be seen as a breach of A's property rights, and therefore he is responsible for compensating A for the value of the goods.

Section 2(h) of the Indian Contract Act defines the term 'contract'. This section specifically states that a contract is an agreement that is enforceable by law. It lays down the essential elements that must be present for an agreement to be considered a valid contract. These elements include offer and acceptance, lawful consideration, lawful object, capacity to contract, free consent, and legality of the agreement. Therefore, Section 2(h) is the correct section that defines the term 'contract' in the Indian Contract Act.

A voidable contract is a contract that is valid and enforceable, but has the option for the aggrieved party to choose whether or not to enforce it. This means that the party who has been harmed or disadvantaged by the contract can decide whether they want to proceed with enforcing it or not. It gives the aggrieved party the power to either uphold the contract or declare it void and seek legal remedies.

A unilateral contract is a contract in which only one party is required to perform their obligation. In this type of contract, one party makes a promise or offer and the other party can accept the offer by performing the requested action. Once the action is performed, the contract is considered executed or completed. This is different from a bilateral contract where both parties have obligations to fulfill.

The correct answer is "whole of India excluding Jammu & Kashmir." According to the Indian Contract Act, this act applies to the entire country of India, with the exception of Jammu & Kashmir. This means that the provisions and regulations outlined in the Indian Contract Act are applicable and enforceable in all states and union territories of India, except for Jammu & Kashmir.

An executed contract refers to a contract where both parties have fulfilled their obligations and nothing remains to be done. In other words, all the terms and conditions of the contract have been completed or performed. This means that both parties have carried out their responsibilities and the contract is considered fully executed or completed.

Consensus ad idem refers to the mutual understanding and agreement between the parties involved in a contract. It means that both parties must agree upon the same thing in the same sense. This ensures that there is a meeting of minds and a clear understanding of the terms and conditions of the agreement. Without consensus ad idem, there would be no valid contract as there would be a lack of agreement and understanding between the parties. Therefore, this is the correct answer as it accurately describes the requirement for parties to an agreement.

A bilateral contract is a type of contract where both parties are obligated to perform their respective obligations. In this type of contract, there is a mutual exchange of promises between the parties involved. This means that both parties have agreed to perform certain actions or provide certain goods or services. Unlike a unilateral contract where one party makes a promise in exchange for an action from the other party, a bilateral contract requires both parties to fulfill their obligations. Therefore, the correct answer is bilateral contract.

According to section 10, an agreement must not be certain in its meaning for it to be enforceable. This means that the terms and conditions of the agreement should be clear and unambiguous so that both parties can understand their rights and obligations. If the meaning of the agreement is uncertain, it may lead to misunderstandings and disputes, making it difficult to enforce. Therefore, certainty in the meaning of an agreement is not a condition for its enforceability.