Q1. What is contract?
An agreement enforceable by law is a contract. Therefore in a contract there must be –
i). an agreement
ii). the agreement must be enforceable by law.
There some agreements like an agreement to play cards or to go to a cinema, which cannot be enforced through the courts of law, are not contract. So an agreement, which can be enforced through the courts of law, is called a contract
Q2. What are the elements of a contract?
An agreement becomes enforceable by law when it fulfills certain conditions. These conditions, which may be called the essential elements of a contract, are explained hereunder:-
i). Offer and acceptance
ii). Intention to create legal relationship
iii). Lawful consideration
iv). Capacity of the parties
v). Free consent
vi). Legality of the object
vii). Certainty
viii). Possibility of performance
ix). Void agreement
x). Writing, registration and legal formalities.
Q3. Definition of acceptance & proposal.
Proposal: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
Offer: A proposal is also called an offer. The promisor or the person making the offer is called offeror. The person to whom the offer is made is called the offeree.
Q4. When is the communication of proposal and acceptance complete? How and when can they be revoked?
Completion of proposal:
The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Revocation/Lapse of proposal :
A proposal comes to an end, and no longer open to acceptance under the following circumstances:
i). By notice
ii). By lapse of time
iii). After expiry of reasonable time
iv). By failure of reasonable time
v). By failure of a condition precedent
vi). By death of insanity
vii). Counter offer
viii). By refusal
Revocation of Acceptance
An acceptance can be revoked any time before the acceptance comes to the knowledge of the proposer but not afterwards.
Q5. What do you mean by consideration?
Consideration is an essential element in a contract. Something which receives and gives by each party to an agreement is called consideration.
When, at the desire of the promissory, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
Q6. What are the Characteristics / Rules / Essential Factors of consideration?
The following rules may be laid down regarding consideration:
i). Desire (request)
ii). The consideration must be real
iii). Public duty
iv). Promise to a stranger
v). Consideration need not be adequate
vi). The consideration must not be illegal, immoral, or opposed to public policy
vii). The consideration may be present, past, or future
viii). Consideration may move from promisee or from any other person.
Q7. No consideration no contract- exceptions to the rule Or, Can a contract be made without consideration? Briefly explain with examples.
Consideration is essential for validity of a contract. A promise without consideration is a gratuitous undertaking and cannot create a legal obligation. But there are exceptional cases where a contract is enforceable even though thee is no consideration. They are as follows:
i). Natural love and affection
ii). Voluntary compensation
iii). Time bared debt
iv). Agency
v). Completed gift.
Q8. Distinguish between void and voidable contract.
Void contract
Voidable contract
1.
A void agreement is void from the beginning; for this reason it can not be called as a contract.
A void able agreement is one, which can be avoided, i.e., set aside by some of the parties to it. Until it is avoided, it is a good contract.
2.
A void agreement confers no right on any person and creates no obligations
But in case of voidable agreement the rights and obligations of the parties concerned are present unless it becomes void.
3.
As a void agreement is void from the beginning it is not necessary for the effected party to declare the agreement void.
But in case of voidable agreement the effected party needs to call the agreement void.
4
In case of void agreement the party is not bound to refund the benefit received to the other party.
But in case of voidable agreement the party may refund the benefit to the other party, if the agreement becomes void later on.
5
A void agreement originates by an agreement made by a minor, agreements without consideration, certain agreements against public policy, illegal objectives.
A voidable agreement originates by contracts brought about by coercion, undue influence, and misrepresentation.
6
The rights obtained by void agreement, if transferred to a third party, the third party does not, under any circumstances obtains a legal title.
In case of voidable agreement, unless the effected party declared the agreement to be void, the third party gains legal title for the rights transferred, if he acts upon good faith.
Q9. In which cases a contract can be void?
An agreement is said to be void because of mistake, lack of consideration, want of capacity etc. A list of void agreements is given below:
1. Lack of capacity.
2. Mutual mistake of fact.
3. Unlawful consideration or object.
4. Consideration or object partly unlawful.
5. Agreements without consideration.
6. Agreements in restraint of trade.
7. Agreements in restraint of legal proceedings.
8. Uncertain Agreement.
9. Agreements by way of wager.
10. Impossible acts.
11. Agreements contingent on impossible event.
12. Reciprocal promises where there are void promises.
13. Agreement is restraint of trade
Q10. What are the remedies for breach of contract ?
1. Rescission of the contract.
2. Suit for damages.
3. Suit upon Quantum Meruit
4. Specific performance of the contract.
5. Injunction.
Q11. What are the rights of a bailor and bailee under the contract act?
The rights of Bailor?
The rights of Bailor are enumerated hereunder:
1. Enforcement of rights.
2. Act inconsistent with the terms.
3. Restoration of goods lent gratuitously.
The rights of Bailee?
The rights of Bailee are enumerated hereunder:
1. Enforcement of rights.
2. Bailment by several joint owners.
3. Bailee not responsible on re-delivery to bailor with out title.
4. Bailee’s particular lien.
5. Bailee’s general lien.
Q12. What is void or voidable agreement?
An agreement, which does not satisfy the essential elements of a contract, is void. An agreement not enforceable by law is said to be void. A void agreement has no legal effect. If confers no right on any person and creates no obligations.
Q13. What do you mean by consideration?
Consideration is an essential element in a contract. Something which receives and gives by each party to an agreement is called consideration.
When, at the desire of the promissory, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
An agreement enforceable by law is a contract. Therefore in a contract there must be –
i). an agreement
ii). the agreement must be enforceable by law.
There some agreements like an agreement to play cards or to go to a cinema, which cannot be enforced through the courts of law, are not contract. So an agreement, which can be enforced through the courts of law, is called a contract
Q2. What are the elements of a contract?
An agreement becomes enforceable by law when it fulfills certain conditions. These conditions, which may be called the essential elements of a contract, are explained hereunder:-
i). Offer and acceptance
ii). Intention to create legal relationship
iii). Lawful consideration
iv). Capacity of the parties
v). Free consent
vi). Legality of the object
vii). Certainty
viii). Possibility of performance
ix). Void agreement
x). Writing, registration and legal formalities.
Q3. Definition of acceptance & proposal.
Proposal: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
Offer: A proposal is also called an offer. The promisor or the person making the offer is called offeror. The person to whom the offer is made is called the offeree.
Q4. When is the communication of proposal and acceptance complete? How and when can they be revoked?
Completion of proposal:
The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Revocation/Lapse of proposal :
A proposal comes to an end, and no longer open to acceptance under the following circumstances:
i). By notice
ii). By lapse of time
iii). After expiry of reasonable time
iv). By failure of reasonable time
v). By failure of a condition precedent
vi). By death of insanity
vii). Counter offer
viii). By refusal
Revocation of Acceptance
An acceptance can be revoked any time before the acceptance comes to the knowledge of the proposer but not afterwards.
Q5. What do you mean by consideration?
Consideration is an essential element in a contract. Something which receives and gives by each party to an agreement is called consideration.
When, at the desire of the promissory, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
Q6. What are the Characteristics / Rules / Essential Factors of consideration?
The following rules may be laid down regarding consideration:
i). Desire (request)
ii). The consideration must be real
iii). Public duty
iv). Promise to a stranger
v). Consideration need not be adequate
vi). The consideration must not be illegal, immoral, or opposed to public policy
vii). The consideration may be present, past, or future
viii). Consideration may move from promisee or from any other person.
Q7. No consideration no contract- exceptions to the rule Or, Can a contract be made without consideration? Briefly explain with examples.
Consideration is essential for validity of a contract. A promise without consideration is a gratuitous undertaking and cannot create a legal obligation. But there are exceptional cases where a contract is enforceable even though thee is no consideration. They are as follows:
i). Natural love and affection
ii). Voluntary compensation
iii). Time bared debt
iv). Agency
v). Completed gift.
Q8. Distinguish between void and voidable contract.
Void contract
Voidable contract
1.
A void agreement is void from the beginning; for this reason it can not be called as a contract.
A void able agreement is one, which can be avoided, i.e., set aside by some of the parties to it. Until it is avoided, it is a good contract.
2.
A void agreement confers no right on any person and creates no obligations
But in case of voidable agreement the rights and obligations of the parties concerned are present unless it becomes void.
3.
As a void agreement is void from the beginning it is not necessary for the effected party to declare the agreement void.
But in case of voidable agreement the effected party needs to call the agreement void.
4
In case of void agreement the party is not bound to refund the benefit received to the other party.
But in case of voidable agreement the party may refund the benefit to the other party, if the agreement becomes void later on.
5
A void agreement originates by an agreement made by a minor, agreements without consideration, certain agreements against public policy, illegal objectives.
A voidable agreement originates by contracts brought about by coercion, undue influence, and misrepresentation.
6
The rights obtained by void agreement, if transferred to a third party, the third party does not, under any circumstances obtains a legal title.
In case of voidable agreement, unless the effected party declared the agreement to be void, the third party gains legal title for the rights transferred, if he acts upon good faith.
Q9. In which cases a contract can be void?
An agreement is said to be void because of mistake, lack of consideration, want of capacity etc. A list of void agreements is given below:
1. Lack of capacity.
2. Mutual mistake of fact.
3. Unlawful consideration or object.
4. Consideration or object partly unlawful.
5. Agreements without consideration.
6. Agreements in restraint of trade.
7. Agreements in restraint of legal proceedings.
8. Uncertain Agreement.
9. Agreements by way of wager.
10. Impossible acts.
11. Agreements contingent on impossible event.
12. Reciprocal promises where there are void promises.
13. Agreement is restraint of trade
Q10. What are the remedies for breach of contract ?
1. Rescission of the contract.
2. Suit for damages.
3. Suit upon Quantum Meruit
4. Specific performance of the contract.
5. Injunction.
Q11. What are the rights of a bailor and bailee under the contract act?
The rights of Bailor?
The rights of Bailor are enumerated hereunder:
1. Enforcement of rights.
2. Act inconsistent with the terms.
3. Restoration of goods lent gratuitously.
The rights of Bailee?
The rights of Bailee are enumerated hereunder:
1. Enforcement of rights.
2. Bailment by several joint owners.
3. Bailee not responsible on re-delivery to bailor with out title.
4. Bailee’s particular lien.
5. Bailee’s general lien.
Q12. What is void or voidable agreement?
An agreement, which does not satisfy the essential elements of a contract, is void. An agreement not enforceable by law is said to be void. A void agreement has no legal effect. If confers no right on any person and creates no obligations.
Q13. What do you mean by consideration?
Consideration is an essential element in a contract. Something which receives and gives by each party to an agreement is called consideration.
When, at the desire of the promissory, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
Good work sir
ReplyDeleteThanks dear reader.
Delete