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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 opens 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 essential for validity of a contract. What are the Characteristics / Rules / Essential Factors of consideration? The following rules may be laid down regarding consideration: i. The consideration must not be illegal. When. In case of void agreement the party is not bound to refund the benefit received to the other party. if the agreement becomes void later on. or opposed to public policy vii. Q6. Until it is avoided. or promises to do or to abstain from doing. But in case of voidable agreement the effected party needs to call the agreement void. Q7. The consideration must be real iii. something. A void agreement is void from the beginning. immoral. set aside by some of the parties to it. 2. But there are exceptional cases where a contract is enforceable even though there is no consideration. Completed gift. illegal objectives. A void agreement originates by an agreement made by a minor. . But in case of voidable agreement the party may refund the benefit to the other party. 3. or does or abstains from doing.e. or future viii. 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. Time bared debt iv. it is a good contract. No consideration no contract. Something which receives and gives by each party to an agreement is called consideration. 1.Consideration is an essential element in a contract. certain agreements against public policy. 5. Public duty iv. for this reason it cannot be called as a contract. Natural love and affection ii. 4. Desire (request) ii.exceptions to the rule? / Can a contract be made without consideration? Briefly explain with examples. which can be avoided. The consideration may be present.. Distinguish between void and voidable contract. such act or abstinence or promise is called a consideration for the promise. past. Q8. A void able agreement is one. A promise without consideration is a gratuitous undertaking and cannot create a legal obligation. Agency v. Voluntary compensation iii. at the desire of the promissory. the promisee or any other person has done or abstained from doing. Consideration may move from promisee or from any other person. i. They are as follows: i. As a void agreement is void from the beginning it is not necessary for the effected party to declare the agreement void. Consideration need not be adequate vi. agreements without consideration. Promise to a stranger v.

v. The rights of Bailee: i. Bailment by several joint owners. g. Specific performance of the contract. Unlawful consideration or object. 6.A voidable agreement originates by contracts brought about by coercion. ii. Agreements by way of wager. In case of voidable agreement. unless the effected party declared the agreement to be void. i. the third party does not. ii. c. Impossible acts. under any circumstances obtains a legal title. Bailee not responsible on re-delivery to bailor without title. b. Bailee’s general lien. f. Consideration or object partly unlawful. What is void or voidable agreement? . iii. Suit for damages. Suit upon Quantum Meruit iv. if transferred to a third party. In which cases a contract can be void? An agreement is said to be void because of mistake. Bailee’s particular lien. b) Act inconsistent with the terms. Agreement is restraint of trade Q10. e. if he acts upon good faith. Mutual mistake of fact. d. A list of void agreements is given below: a. j. want of capacity etc. undue influence. c) Restoration of goods lent gratuitously. Reciprocal promises where there are void promises. What are the rights of a bailor and bailee under the contract act? The rights of Bailor: a) Enforcement of rights. Uncertain Agreement. iv. l. Q11. What are the remedies for breach of contract? i. lack of consideration. k. Agreements without consideration. The rights obtained by void agreement. Enforcement of rights. Q9. iii. Agreements in restraint of trade. Lack of capacity. the third party gains legal title for the rights transferred. m. v. Agreements contingent on impossible event. and misrepresentation. Agreements in restraint of legal proceedings. h. Injunction. Rescission of the contract. Q12.

the promisee or any other person has done or abstained from doing. What do you mean by consideration? Consideration is an essential element in a contract.An agreement. such act or abstinence or promise is called a consideration for the promise. which does not satisfy the essential elements of a contract. An agreement not enforceable by law is said to be void. or does or abstains from doing. or promises to do or to abstain from doing. If confers no right on any person and creates no obligations. . A void agreement has no legal effect. is void. Q13. When. at the desire of the promissory. something. Something which receives and gives by each party to an agreement is called consideration.