...[THE INDIAN CONTRACT ACT,1872] December 8, 2010 Important MCQ’s on Contract act Q.1 When the consent to an agreement is obtained by undue influence, the agreement is voidable at the option of 1. either of the parties to the agreement 2. a party whose consent is obtained 3. a party who obtained the consent 4. none of the above Q.2 a Contingent Contract to do or not to do anything on the happening of an uncertain future event 1. is never enforceable 2. is enforceable since the time of making it 3. becomes enforceable in the immediate possibility of happening of that event 4. becomes enforceable only on the happening of that event. Q.3 No contract can arise, if the 1. offer is not made to an ascertained person 2. acceptance is made by an unascertained person 3. offer is made to an ascertained person 4. acceptance is made by an ascertained person. Q.4 Vindictive Damages have been awarded 1. for a breach of promise to marry; 2. for wrongful dishonour of a cheque by a banker possessing adequate funds of the customer. 3. Either (1) or (2) 4. Both (1) and (2) Q.5 Communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. 1. True 2. Partly True 3. False 4. None of the above. Q.6 Mere silence is not fraud unless 1. the silence is deceptive 2. there is a change in the circumstances to be brought to the notice of other party 3. there is a duty to speak 4. all the above. vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page...
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...PUNE Contract is an agreement in which two parties wilfully enters into which binds them in a civil obligation. Therefore in order to enter into a contract the parties must agree to the same fact in the same manner. Their decision should not be waivered by any factors like fraud, coercion, misinterpretation or mistake. If any of the previously mentioned factors affect the decision of the parties entering into a contract then consent is said to be not given freely. Free Consent is very important to our case as there is a scope of misrepresentation that is one of the parties did not have or was mistaken to the material fact of the contract. Mulla and Pollock commenting on this section have observed that the expression “the same thing” appearing in this section means the whole content of the agreement, whether it consists, wholly or in part, of delivery of material objects, or payment, or executed acts or promises. According to section 10 of The Indian Contract Act, 1872, 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, and are not hereby expressly declared to be void. Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.[1] According to sec 2(h) of the Indian Contract Act, 1872,” An agreement...
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...16(c) of the Contract Act provides answer t this problem. It mandates that Person to aver in the plaint and establish the fact by evidence aliunde that he has always been ready and willing to perform his part of the contract. Distinction between “readiness” and “willingness” is that the former refers to financial capacity and the latter to the conduct of the person wanting performance . Person’s readiness and willingness, which is a condition precedent, must be in accordance with the terms of the agreement. In a suit for specific performance, person is to approach Court with clean hands. Right from the date of the execution till date of the decree he must prove that he is ready and has always been willing to perform his part of the contract. 2. Section 55 of Indian Contract Act,1872 provides answer to this problem. When a party to a contract promises to do a certain thing at or before a specified time, or certain thins at or before a specified time and fails to do such thing at or before a specified time, and fails to do such thing at or before a specified time, the contract or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of essence of the contract. 3. Section 53 of Indian Contract Act,1872 provides answer to this problem - When a contract contains reciprocal promises and one party to the contract prevents the other from performing his promise, the contract becomes voidable...
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...ALL CONTRACTS ARE AGREEMENTS BUT ALL AGREEMENTS ARE NOT CONTRACTS 1 – INTRODUCTION A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties. Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”. Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`. "An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore (a) Agreement Contractual Obligation (b) Enforceability by Law. For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because...
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...The Law of Contract confines itself to the enforcement of voluntarily created civil obligations Abstract This assignment focuses to determine the relationship between the Law of Contract and voluntarily created civil obligations. It is intended to find out how contract law defines its scope within the enforcement of civil obligations. Civil obligations are raised from contracts, among several other sources of obligations. If the contracts are created voluntarily, the relevant obligations are thus voluntary. Since the contract law presumes that to create a contract there must be a common intention of the parties to enter into legal obligations, it is also assumed that the parties will enter into a contract voluntarily. When it comes to the discussion about civil obligations, contract law defines its boundary within the enforcement of civil obligations. This research paper was created with the motive to finding out how the contract law confines itself to the enforcement of civil obligations. Introduction We enter into contracts in our everyday general activities. Paying fare to the taxi driver amounts to entering into a contract. When you recharge your prepaid cell phone account, you have entered into a contract. You go to a restaurant and take snacks; you have entered into a contract. In such cases, we do not even realize that we are making a contract. In the case of people engaged in trade, commerce and industry, they carry on business by entering into contracts. But who ensures...
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...The Indian Contract Act, 1872 is the law relating to Contracts in India. It came into force on September 1, 1872 and is extended to the whole of India except to the state of Jammu and Kashmir. The Indian Contract Act, 1872 initially also dealt with Sale of Goods, Indemnity and Guarantee, Law of Bailment, Agency and Partnership. However, in 1930, a separate Act on the Sale of Goods was passed. The Indian Partnership Act was passed in 1932. Interpretation of The Indian Contract Act, 1872 1. 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; 2. When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise; 3. The person making the proposal is called the "promisor", and the person accepting the proposal is called the "promisee"; 4. When, at the desire of the promisor, 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; 5. Every promise and every set of promises, forming the consideration for each other, is an agreement; 6. Promises, which form the consideration or part, of the consideration for each other are called reciprocal promises; 7. An agreement...
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...relating to formation of a contract, particularly focusing on offer and acceptance. According to the section 2(h) of Indian Contract Act 1872, “An agreement enforceable by law is a contract.” There should be two items which are objected to make contract are (i) An Agreement and (ii) Legal Obligation. In section 2(e) defines that, “Every promise and every set of promises, forming the consideration for each others, is an agreement.” From that definition it is clearly stated ‘promise’ is an agreement. However in section 2(b) which defines the term “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise”. An agreement is the total combination of “Offer” and “Acceptance”. However in this case Mini gives a promise to pay TK20000 as a reward to whom who finds her each items of lost jewellery. An agreement to become a contract must be able to rise to a legal obligation, a duty enforceable by law. If an agreement is incapable of creating a duty enforceable by law it is not a contract. As all we know that “All contracts are agreement but all agreements are not contracts.” Section 2(h) according to the Indian Contract Act 1872, however provides some essential elements to create legal contracts between two parties. These ares- To make a contract the first and foremost things is that there must be legal offer and legal acceptance which are necessary to form a contract. It also should satisfy...
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...Affecting Bankers 1. RBI Act 1934 2. Banking Regulation Act 1949 3. Negotiable Instrument Act 1881 4. Indian Contract Act 1872 5. Indian Partnership Act 1932 6. The Companies Act 1956 7. Consumer Protection Act 1986 8. Banking Ombudsman Act 2006 9. Transfer of property Act 1882 10. Foreign Exchange Management Act 1999 11. Indian Stamp Act 1899 12. Code of Civil Procedure 1908 13. Banker’s book Evidence Act 1891 14. Information Technology Act 2000 15. Right to Information Act 2005 16. Recovery of Debt Due to Banks And Financial Institutions Act 1993 (DRT Act) 17. Securitisation & Reconstruction of Financial Assets and Enforcement of Security interest Act 2002 (SARFAESI Act 2002) Indian Contract Act 1872 Who is competent to contract – Sec 11 Every person is competent to contract who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is a Subject A minor is a person who has not attained majority. According to Sec 3 of Indian Majority Act 1875, a minor is a person who has not completed 18 years of age. Where a guardian has been appointed by court (for minor’s person or property or both) , the minor attains majority on completion of 21 years. A contract with a minor is void ab-initio (Right from inception) Contract with a minor is void but minor’s...
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...Law Of Contract Definition and Nature A Contract is an agreement between two parties that creates an obligation to perform (or not perform) a particular duty. According to Section 2(h) of the Indian Contact Act of 1872, A Contract is - “An Agreement enforceable by law” In other words, A contract is a binding legal agreement. Thus we can say: Agreement + Enforceability by law = Contract Formation of Contract PROPOSAL/OFFER [SECTION 2(a)]: A person is said to make a proposal when “he signifies to another his willingness to do or to abstain from doing anything with a view to obtaining assent (Agree) of that other to such act or abstinence” Example: 1. Rima offers to sell her Law books to Rony . Here, Rima is offering or giving a proposal to Rony. If Rony accepts a Contact is formed. Proposal & Promise Section 2(b) of the Contract Act 1872 states that, “A proposal (Offer) when accepted becomes a promise” The person making the proposal is called the “promisor” (Offeror), and the person accepting the proposal is called the “promisee” (Offeree). [section 2(c)]. When, at the desire of the promisor, 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. [section 2(d)]. Consideration is an important element of a Contact Agreement Thus...
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...business need to be invented and worked. Existence of e-contract in the market is accomplishing the need for innovativeness in the traditional business segments. Businesses, both existing and new are trying to create an online individuality and an e-contract stand keeping in view the needs of the modern times. E-contract is one of the divisions of e-business. It holds a similar meaning of traditional business wherein goods and services are switched for a particular amount of consideration. The only extra element it has is that the contract here takes place through a digital mode of communication like the internet. It provides an opportunity for the sellers to reach the end of consumer directly without the involvement of the middlemen. New models of business demands different organisational charters. E-contract demands an organizational charter which caters to its new marketing needs. This mode of business enables businesses to save time on product design and device products according to the individual customer requirement, track sales and get immediate feedback from the customer. Contracts have become so common in day-to-day life that most of the time we do not even recognize that we have entered into one. Right from buying a vegetable and hiring a Cab or to buying an airline ticket online, uncountable thing in our daily exists is governed by contracts. The Indian Contract Act, 1872 rules the way in which contracts are made and...
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...JudgmentMohori Bibee and another Vs. Dharmodas Ghose Mohori Bibee and another Vs. Dharmodas Ghose Options Dock |Print |PDF | |[pic] |[pic] | Court : Kolkata Reported in : (1903)30IndianAppeals114 Judge : Lord Macnaghten; Lord Davey; Lord Lindley; Sir Ford North; Sir Andrew Scoble; Sir Andrew Wilson, JJ. Decided On : Mar-04-1903 Acts : Indian Evidence Act, 1877 - Section 115; Indian Contract Act - Sections 41, 19, 64, 65 Appellant : Mohori Bibee and another Respondent : Dharmodas Ghose Advocate for Respondent : W.W. Box, Adv. Advocate for Appellant : Watkins; Lempriere, Advs. Judgment: SIR FORD NORTH, J. On July 20, 1895, the respondent, Dhurmodas Ghose, executed a mortgage in favour of Brahmo Dutt, a money-lender carrying on business at Calcutta and elsewhere, to secure the repayment of Rs. 20,000 at 12 per cent. interest on some houses belonging to the respondent. The amount actually advanced is in dispute. At that time the respondent was an infant; and he did not attain twenty-one until the month of September following. Throughout the transaction Brahmo Dutt was absent from Calcutta, and the whole business was carried through for him by his attorney, Kedar Nath Mitter, the money being found by Dedraj, the local manager of Brahmo Dutt. While considering the proposed advance, Kedar Nath received information that the respondent was still a minor; and on July 15, 1895, the following letter was written and...
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...The law of contract is the foundation upon which the superstructure of modern business is built. It is common knowledge that in business transactions quite often promises are made at one time and the performance follows later. Explaining the object of the law Sir William Anson observes:”the law of contract is intended to ensure that what a man has been promised to him shall be performed” DEFINITIONS • A contract is an agreement made between two or more parties which the law will enforce • Pollock: “Every agreement and promise enforceable at law is a contract.” • Salmond: “A contract is an agreement creating and defining obligations between the parties.” AGREEMENT • An agreement is defined as “every promise and every set of promises, forming consideration for each other.” • A proposal when accepted becomes a promise. Agreement = Offer + Acceptance INDIAN CONTRACT ACT 1872 The law of contract in India is contained in the Indian contract act, 1872. According to section 2(h) of Indian contract act: an agreement enforceable by law is a contract” ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. OFFER AND ACCEPTANCE: When one person signifies to another his willingness to do or 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. The first step towards creating a contract is that one person shall signify or make a proposal...
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...partnerships, contracts, companies, negotiable instruments, arbitration, carriage of goods etc. Mercantile laws in India is taken from the English law. So it follows the English laws to a considerable extent with some modifications and reservations to suite with the Indian conditions and practices. Following are the main source of the Indian mercantile laws: 1. English Mercantile Law: English laws which developed and come into existence through the customs and usage of traders and merchants in England is the main source of the Indian Mercantile laws. These customs and usages of controlled the merchants in their dealings with each other. It is also known as the Common Law. It is unwritten and are based on customs, precedents and usages. The law of contracts is a part of Common law in England. It is one of the most important part of Mercantile law. 2. Indian Statute Law: Another main source of Indian Mercantile law is the Acts passed by the Indian Legislature. Indian Contract Act 1872, The Sale of Goods Act 1930, The negotiable Instrument Act 1881, The companies Act 1953 are some of the Acts passed by the Indian Legislature. 3. Judicial Decisions: Another important source of mercantile laws are the Judicial decisions of the Courts. Disputes settled by the courts earlier have persuasive and guiding value. The judge has to decide the case, where there is the law is silent on a point, according to the principle of equity, justice and good conscience. For interpreting the Indian Statutes...
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...LAB PROJECT REPORT LAW OF TENDERS AND AUCTIONS PGPM 2010-12 TERM 1 TABLE OF CONTENTS 1. Auction and tender.……………………………………………………………………………………………………………….......3 2. Auction………………...……………………………………………………………………………………………………………….......3 2.1 Legal Aspect as per The Sale of Goods Act, 1930...............................................................3 2.1.1 Legal Rules Regarding Auction.............................................................................3 2.2 Legal Aspect as per The Indian Contract t, 1872................................................................4 2.3 Auction Terminologies…………………………………….................................................................6 3. Tender………………..………………………………………………………………………………………………………………….......6 3.1 Legal Aspect as per The Indian Contract t, 1872................................................................6 3.1.1 Acceptance and withdrawal of tenders...............................................................6 3.1.2 No Obligation to Accept Lowest Tender..............................................................7 3.2 Tenders Terminology……………….………….………..................................................................8 3. Judicial Pronouncements and Analysis………………………………...........................................................9 3.1 Auction…………..…………………………………..............................
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...goods. Issues The issue is that here the consignor is the bailor and the consignee is the bailee and according to the Section 161 of the Contract Act the Railways is responsible to the bailor that is the consignor for any loss, deterioration or destruction of the goods. But in this case the bailor has not filed the suit instead the suit has been filed by the consignee. Rules The rules governing this case are: Section 72 of the Indian Railways Act - “The responsibility of a railway administration for the loss, destruction or deterioration of animals or goods delivered to the administration to be carried by railway shall, subject to the other provisions of the Act, be that of a bailee under Sections 151, 152 and 161 Of the Indian Contract Act 1872 .“ Section 161 of the Indian Contract Act - “If by the default of the bailee, the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration "Of the goods from that time.” Application According to the Section 72 0f the Railways Act and Section 161 of the Contract Act it is difficult to hold that any person other than the bailor is entitled to sue. Also the consignee is not entitled as the owner of the goods in the case. Conclusion In view of Section 72 of the Railway Act and Section 161 of Contract Act , the Railways is responsible only to the bailor, that is the consignor and does...
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