Chapter 4 Free Consent and Void Agreements (Vol - 2)

Business Law – The Practice Book Chapter 4: Free consent and void agreements
CHAPTER 4
FREE CONSENT AND VOID
AGREEMENTS
QUESTIONS
MULTIPLE CHOICE QUESTIONS
0. A mistake of law:
(a) has same effect as mistake of fact if it relates to mistake of Pakistani law
(b) has same effect as mistake of fact if it relates to mistake of foreign law
(c) has same effect as mistake of fact whether it relates to mistake of Pakistani law or foreign law
(d) is never treated as a mistake of fact
[Ans. b]
1. Graham threatened to kill Tony if Tony would refuse to sell his car to Graham. The contract has been induced through:
(a) Coercion
(b) Undue influence
(c) Fraud
(d) Mistake
2. The committing or threatening to commit, any act, forbidden by the Pakistan Penal Code, or the unlawful detaining or
threatening to detain, any property with the intention of causing any person to enter into an agreement is called:
(a) Fraud
(b) Undue influence
(c) Coercion
(d) Mistake
3. A contract under coercion becomes voidable at the option of the party whose:
(a) Consent was not free
(b) Consent was free
(c) At the option of both the parties
4. In a case of coercion the burden of proof lies on that party:

(a) Who does not want to set aside the contract
(b) Who wants to set aside the contract
(c) None of the above
5. Where one of the parties to the contract is in a position to dominate the will of the other and it utilises its position to make
that other person enter into a contract. The contract is said to be induced by:
(a) Coercion
(b) Undue influence
(c) Fraud
(d) Misrepresentation
6. It is one of the essentials of the undue influence:

(a) Misrepresentation is done
(b) Active concealment of facts
(c) A particular relationship between the parties
(d) None of the above
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7. One of the parties in the contract of undue influence must be in a position:

(a) To request the other party
(b) To dominate the will of the other party
8. In the contracts induced through undue influence, the burden of proof is on:
(a) The person who was the dominant party
(b) The person whose will was dominated
(c) None of these
9. The unjustified statement given innocently about the subject-matter of the contract, is known as:
(a) Misrepresentation
(b) Fraud
(c) Mistake
(d) None of these
10. The misrepresentation:

(a) Should not be made to deceive the other party
(b) Should be made to deceive the other party
11. One of the following shows that fraud has been made in order to make the other party enter into contract:
(a) Active concealment of the facts
(b) Physical threat to the other patty
(c) Mental or moral threat to the other party
(d) Innocent wrong statement
12. A promise made without any intention of performing it, is called:

(a) Misrepresentation
(b) Mistake
(c) Fraud
(d) Coercion
13. Which one of the following combinations is correct:

(a) Coercion/mental threat
(b) Undue influence/physical threat
(c) Misrepresentation/deliberately deceived
(d) Fraud/false representation
14. Under a contract induced through fraud, the aggrieved party may:
(a) Sue for damages
(b) Not sue for damages
(c) Only avoid the contract
15. Mere Silence as to facts likely to effect the willingness of a person to enter into a contract is equal to fraud where:
(a) It is not essential to speak
(b) It is the duty of the person keeping silence to speak
(c) His silence amounts to have no value
16. Allan says to Michel that if you do not deny it, I shall assume that this horse is sound. Allan says nothing. Here:
(a) Allan's silence has no effect on contract
(b) Allan's silence, is "equivalent to speech"
17. One of the following contracts have no consensus-ad-idem:

(a) Coercion
(b) Mistake
(c) Fraud
(d) Undue influence
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18. Where both the parties to an agreement are under a mistake as to the matter of fact essential to the agreement, there is:
(a) Unilateral mistake
(b) Mistake of law
(c) Bilateral mistake
(d) None of these
19. Unilateral mistake is that in which:

(a) The mistake of foreign law has done
(b) The mistake of local law has done
(c) One of the parties to the contract has committed mistake
20. When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is:
(a) Valid
(b) Void
(c) Voidable at the option of a party whose consent was so caused
(d) Partially void
(e) None of these
21. The following contract is not voidable:

(a) Which is induced through undue influence
(b) Which is induced through coercion
(c) Which is done due to mistake of Pakistani law
22. In one of the following contracts, one party is to win and the other to lose upon a future event which at the time of the
contract is of an uncertain nature.
(a) Quasi contract
(b) Contingent contract
(c) Wagering contract
(d) None of these
23. An agreement by way of wager is:

(a) Valid
(b) Void
(c) Voidable
(d) Unenforceable
24. X makes a bet with Y, and loses. X goes to Z for taking some loan in order to give money to Y. In this case one of the following
combinations makes a valid contract:
(a) A contract between X and Y
(b) A contract between Y and Z
(c) A contract between X and Z
(d) A contract between X, Y and Z
25. Robins made a contract with Peter to discover treasure by magic. This is a void agreement because:
(a) It lacks uncertainty
(b) It has impossibility 0f performance
(c) It has no consideration
26. A void as well as an illegal contract is:

(a) Similar in effect
(b) Not similar in effect
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27. ** To constitute a wager, which of the following elements should NOT be present in the agreement?
(a) Uncertain event
(b) Each party must be in a win or lose situation
(c) Neither party should have any control over the event
(d) There should be a promise to pay money only
28. ** The consent is said to be free when:

(a) Two or more persons agree upon same thing in the same sense.
(b) All parties to the contract benefit from the contract.
(c) It is not the result of coercion or undue influence or fraud or misrepresentation or mistake.
(d) All of the above.
29. ** A positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though
he believes it to be true is said to be a:
(a) Fraud
(b) Misrepresentation
(c) Mistake
(d) Misinterpretation
30. ** The consent is said to be free when:

(a) Two or more persons agree upon same thing in the same sense.
(b) All parties to the contract benefit from the contract.
(c) It is not the result of coercion or undue influence or fraud or misrepresentation or mistake.
(d) All of the above.
31. ** A positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though
he believes it to be true is said to be a:
(a) Fraud
(b) Misrepresentation
(c) Mistake
(d) Misinterpretation
32. ** Which of the following is NOT a bilateral mistake? A mistake regarding:

(a) A fact subsidiary to the contract.
(b) Existence of subject matter.
(c) Title to subject matter.
(d) Price of subject matter.
33. ** If the seller makes use of pretended bidding to raise the price during an auction, the sale is:
(a) Void.
(b) Voidable at the option of buyer.
(c) Not voidable.
(d) None of the above.
34. ** Fraud means:

(a) The suggestion, as a fact of that which is not true, by one who believes it to be true.
(b) Silence of a person as to facts likely to affect the willingness of another to enter into a contract.
(c) A promise made without any intention of performing it.
(d) Any act fitted to deceive where aggrieved party had the means of discovering the truth with ordinary diligence.
35. ** Consensus-ad-idem is:

(a) When consent is free.
(b) When consideration is adequate.
(c) When one party promises to do an act at the desire of another party.
(d) When both the parties agree to the same thing in the same sense.
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36. Jalil is indebted to Kamran but due to financial crisis, he is not able to pay him. At Jalil’s request, Kamran agreed to sell
further goods to Jalil on very stringent terms. Subsequently, Jalil approaches the Court demanding relief from contractual
obligations on grounds of undue influence.
Which of the following statements is true?
(a) Kamran will have to prove that he did not exercise any undue influence
(b) Jalil will have to prove that the contract was induced by undue influence
(c) Both Jalil and Kamran will have to prove the presence or absence of undue influence respectively
(d) The contract entered into between Kamran and Jalil is void ab-initio
37. Saad agreed to pay Rs. 500,000 to Hafsa if she delivered a judgement in his favour in a suit. Hafsa gives the judgement in
Saad’s favour but he later refuses to pay any money. In this situation, can Hafsa claim the amount?
(a) No, because the agreement was voidable at the option of Saad only
(b) Yes, because the agreement was valid and enforceable
(c) Yes, because the agreement was voidable at the option of Hafsa only
(d) No, because the agreement was void due to unlawful activity
38. Haris has two horses, one of the horse is purebred. He agrees to sell one horse to Abdullah who gives his consent believing
that he will receive a purebred horse whereas Haris thinks that he would sell the other horse. What is the status of the
contract between Haris and Abdullah?
(a) Void on account of unilateral mistake regarding material fact
(b) Voidable on account of unilateral mistake regarding material fact
(c) Void on account of bilateral mistake regarding material fact
(d) Voidable on account of bilateral mistake regarding material fact
CONCEPT REVIEW QUESTIONS
Q.1 Under the provisions of the Contract Act, 1872 list any three circumstances in which a party whose consent was obtained
by misrepresentation cannot rescind the contract. (03)
(ICAP, CAF 03 Level – Autumn 2020)
Q.2 In view of the provisions of Contract Act, 1872 explain the general rule “Agreement in restraint of legal proceedings is void”.
State the exceptions to the above rule. (03)
Q.3 “An agreement in restraint of trade is void”. State the exceptions to this rule as given in the Partnership Act, 1932. (06)
(ICAP, CAF 03 Level – Spring 2013)
Q.4 In the light of Contract Act, 1872, explain the difference between coercion and undue influence. (06)
CASE STUDIES
Q.1 Qadeer and Javed sold their confectionery business along with goodwill, to Asad Sweets. They also agreed not to carry on
similar business for a period of three years. After one year of the sale, Qadeer started a similar business on the ground that
agreements in restraint of trade are void. Describe the relevant provisions of Partnership Act, 1932 and explain whether
Qadeer is justified in his contention. (03)
Q.2 Shahid agreed to buy used printing machinery from Amir who confirmed that the machine was in a good condition. After
taking possession, Shahid complained that there were defects in the machine. Amir and Shahid agreed to have it repaired
and to share the repair charges equally. Few days after the repairing, the machine again started malfunctioning. Shahid now
wants to rescind the contract. Can he do so? Discuss. (04)
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Q.3 Tariq was seriously ill and needed money for his operation. Murad agreed to lend him Rs. 100,000 at 15% per annum. The
rate of interest prevalent in the market was 10% per annum. Later, Tariq refused to pay interest in excess of 10% claiming
that he entered into the agreement under undue influence of Murad. Do you agree with Tariq? Explain with appropriate
reasons. (05)
Q.4 A leads B to believe that 500 tons of steel is made every year at his factory. B examines the accounts of the factory which
show that only 400 tons of steel is made. B thereafter buys the factory. Can B now avoid the contract? (05)
Q.5 Briefly explain whether there is valid agreement in following cases:

(i) A and B entered into an agreement whereby they agreed that neither of them would appeal against the trial court’s
decision in respect of dispute between them.
(ii) A promised to buy a horse from B for Rs. 2,000 if the horse proved lucky.
(iii) Two co-widows made an agreement that if any of them remarried, she should forfeit her right to her share in the
deceased husband’s property. (06)
Q.6 Ali, a minor, obtains a loan of Rs.10,000 from Bilal by fraudulently representing that he is of full age, can Bilal recover his
amount from Ali in any from of action. (04)
Q.7 Karim bought a textile mill from Laeeq on his assurance and a certificate from Registrar that the mill and its assets were
free from any encumbrance. Later, Karim received a notice for payment of mortgage dues and found that the certificate of
Registrar was forged by Laeeq. What rights are available to Karim under the Contract Act, 1872? (04)
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SUGGESTED SOLUTIONS
MULTIPLE CHOICE QUESTIONS
SUGGESTED SOLUTIONS
MCQ # Correct Option MCQ # Correct Option MCQ # Correct Option
1 a 14 A 27 D
2 c 15 B 28 C
3 a 16 B 29 B
4 B 17 B 30 C
5 b 18 C 31 B
6 c 19 C 32 A
7 b 20 c 33 B
8 a 21 c 34 C
9 a 22 c 35 D
10 a 23 b 36 B
11 a 24 c 37 D
12 c 25 b 38 C
13 D 26 b
CONCEPT REVIEW QUESTIONS
Q.1 In following cases, aggrieved party cannot rescind the contract:

1. If aggrieved party had the means of discovering the truth with ordinary diligence;
2. If aggrieved party’s consent was not on the basis of misrepresentation;
3. If aggrieved party takes a benefit under the contract after becoming aware of the misrepresentation,
4. If an innocent third party acquires some interest in the property passing under the contract in good faith and for
consideration;
5. If the parties cannot be restored to their original position.
Q.2 Following are the exceptions to this general rule:

1. Parties can agree to refer dispute between them to Arbitration.
2. Parties can agree that they will not file an appeal in upper court of law.
3. Parties can choose any one court of law (between equally competent courts) to file suit.
Q.3 Sale of Goodwill:

If a person sells goodwill of his business, he can be stopped from carrying on similar business for specified period or for
specified local limits.
Specified period and local limits must be reasonable (having regard to the nature of the business).
Agreements between partners:

1. Existing partners may agree that they shall not carry on any other business.
2. An outgoing partner may agree that he shall not carry similar business for specified period or for specified local
limits.
3. On dissolution of the firm, partners may agree that they shall not carry similar business for specified period or for
Service Agreements:
1. An employee may agree that he will serve employer for a specific period.
2. An employee may agree that he will not start any other job during his employment.
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3. An employee may agree that he will not start similar job after his employment for specified period or for specified
local limits, provided purpose of such restriction is to protect the interest, goodwill or trade secret of employer.
Trade Combinations:
Trade combinations which have been formed to regulate the business or to fix prices are valid. However, trade
combinations to create monopoly and which are against public interest are void.
Q.4
Coercion Undue Influence
Parties to a contract may or may not be related Parties to a contract are related to each
Relationship
to each other. other under some sort of relationship.
Consent is obtained by giving a threat of an
Consent obtained by Consent is obtained by dominating the will.
offence or committing an offence
Nature of Pressure It involves physical pressure. It involves mental pressure.
It can be exercised even by a stranger to the It can be exercised only by a party to a
Who can exercise
contract. contract and not by a stranger.
Burden of proof on party rescinding the
Assumption It may be assumed by the law in some cases.
contract.
The party committing the crime may be
Nature of liability It doesn't involve any criminal liability
punishable under Penal Code.
Objective is to compel a person to enter into a
Reason Objective is to obtain an unfair advantage.
contract.
Restoration of The aggrieved party has to restore the benefit The party avoiding the contract may or may
benefit received. not restore benefit.
CASE STUDIES
Q.1 Relevant legal Provision:

On sale of the goodwill and business, partners may agree that they will not carry similar business for specified period or for
Decision and Basis of Decision:

Qadeer is not justified in his contention because:
 Qadeer and Javed have sold goodwill.
 Restriction of three years is reasonable.
Therefore, Asad Sweets may stop Qadeer from carrying on similar business.

In case of misrepresentation/fraud, aggrieved party loses right of rescission if he takes a benefit under the contract after
becoming aware of the misrepresentation.

Shahid cannot rescind the contract now because after becoming aware of misrepresentation, he did not rescind the contract.
Rather he obtained benefit by sharing the repair charges with Amir.

If consent is not free, Contract is voidable at the option of aggrieved party.
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Agreement to pay interest @ 15% is voidable at the option of Tariq if his consent was not free and was caused by Undue
Influence.
However, law does not presume undue influence in the case of creditor and debtor , therefore, it is Tariq who will have to
prove that undue influence was exercised.
If Tariq fails to prove undue influence, agreement will remain valid and he will have to pay interest @ 15%..

In case of misrepresentation/fraud, aggrieved party loses right of rescission if his consent was not on the basis of
misrepresentation.

B cannot avoid the contract because B became aware of the fact that factory make only 400 tons of steel before making
contract, it shows that his subsequent consent was not based on misrepresentation/fraud.
Q.5 (i)
Relevant legal Provision:
An agreement is not in restraint of legal proceedings if parties agree that they will not file an appeal in upper court of law.

This agreement is valid as A and B both have agreed not to file appeal against trial court’s decision.
(ii)
Relevant Legal Provision:
Terms of the offer must be definite and certain, and not loose or vague.

This agreement is void, because it terms are loose and vague.
(iii)
Relevant legal Provision:
Agreements in restraint of marriage are void.

This agreement is void because this is in nature of restricting someone from marriage.

Agreement by a minor cannot be enforced against him. A minor can only be liable to pay if a person supplies necessities of
life to a minor.

Bilal cannot enforce this agreement against Ali because Ali is a minor (concept of estoppel does not apply to minor).
However, he can take back (i.e. restore/restitution) his money if it is still in the hands of Ali.

If consent is not free, Contract is voidable at the option of aggrieved party.

This contract is voidable the option of Karim, because Consent of Karim was not free as it was caused by fraud. However,
contract will not be voidable if Karim could have discovered the truth with ordinary diligence.
Karim can claim damages from Laeeq if he rescinds the contract, or even if he insists on performance.
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APX 1: OBJECTIVE BASED QUESTIONS AND ANSWERS:

Select the most appropriate answer from the options available for each of the following Multiple Choice Questions. Each
MCQ carries ONE mark. These questions are adapted from ICAP’s Study Text.
8.* When party standing in fiduciary relationship make an agreement, legally it will be presumed that the party in a dominating
position, must have caused the consent of other through undue influence which includes
(a) Father and son
(b) Doctor and patient
(c) Teacher and student
(d) All of the above
11.* Mr. A has two horses, one is black and another is white. He makes an agreement to sell one horse to Mr. B. Mr. A believes
that he is making an agreement for selling white one, whereas Mr. B thinks that he is buying black horse. Is there any
contract between Mr. A and Mr. B
(a) contract is void on account of unilateral mistake regarding material fact.
(b) contract is void on account of unilateral mistake of foreign law.
(c) contract is void on account of bilateral mistake regarding material fact.
(d) contract is void on account of unilateral mistake of Pakistan law.
15.* Which one is not a fraud

(a) Non-disclosure of material facts, known to the party
(b) Silence maintained by the party where silence is equivalent to his speech
(c) Active concealment of facts having knowledge
(d) A promise made without any intention or performing it
16. The aggrieved party in case of _____________ cannot rescind the contract, if he had the means of discovering the truth by
ordinary diligence.
17. Two or more persons are said to consent when they agree upon the same thing in the same sense. In law, this is called
_______________.
18. The fraud must be committed by a party to a contract or by anyone with his _________ or by his agent.
19. The term unilateral mistake means where only one party to the agreement is under a mistake and a contract is not voidable
but according to the exception the agreement is void where a unilateral mistake relates to the ____________ and ____________.
20. A promise made without the intention of performing it amounts to _________.
26.* Which one of the following agreements is restraint to legal proceedings

(a) Agreement for curtailing period of limitation prescribed by Limitation Act
(b) Agreement to select one court from two courts having jurisdiction on that matter
(c) Agreement whereby neither party shall appeal against the decision of trial court
(d) Agreement to settle dispute out of the court
31.* Which of the following arrangement is void in relation to trade combination

(a) Firms voluntarily reducing competition by dividing market
(b) To regulate the market of their product
(c) To create monopoly in the market
(d) Fixing prices and standardizing goods
32.* In anticipation of huge sale of sweets during Eid festival all sweet makers of Islamabad make an agreement that they will
not sell sweets below Rs.1000/- per Kg. State the legal position of this agreement
(a) This agreement is a valid agreement
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(b) This agreement is not creating monopoly in the market thus it is valid
(c) This agreement tends to create monopoly in the market thus it is void
(d) This agreement is voidable at the option of one party
33.* Mr. Bilal agreed to work with Dr. Abdullah at ABC Hospital for a period of six months to treat the patients of coronavirus.
The contract provided that during the term of agreement Mr. Bilal will not practice in any other hospital. However after one
month of service, Mr. Bilal left the hospital and joined another hospital. State the legal position.
(a) Mr. Bilal can join any other hospital of his own choice any time
(b) Mr. Bilal cannot join any other hospital of his own choice even after the end of agreement
(c) Mr. Bilal can join any other hospital of his own choice before the end of agreement
(d) Mr. Bilal cannot join any other hospital of his own choice before the end of agreement
34.* Which of the following is the essential of wagering agreement.

(a) Mutual gain or loss
(b) Uncertain event
(c) No control of the parties, on the happening of the event.
(d) All of the above
36. Rahul and Kumar are two rival shopkeepers in Ramswami colony of Karachi. They make an agreement that if Rahul closes
his shop from the colony, Kumar will pay him Rs.20000/-. Later on Kumar refuse to pay. Now Rahul wants to file a suit
against Kumar in a court of law. Rahul cannot recover this amount from Kumar as the agreement is __________________.
37. Mr. Rehman was appointed as an agent for selling the goods produced by Mr. Raheem. On a condition that Mr. Rehman will
not deal in goods of any other manufacturer. This restraint is ______________.
38. Every agreement in restraint of the ____________ of any person other than a minor is void.
39. Ms. Sofia agreed to sing at the theatre of Mr. Andrew for three months and will not sing elsewhere. It was held that she can
be ___________.
40. To enforce an agreement in the court its meaning must be certain or capable of being made certain. Any uncertainty in the
meaning of agreement will create uncertainty regarding rights and obligations. Such uncertain rights and obligations cannot
be claimed in the
_____________.
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SUGGESTED SOLUTIONS
1. (b) Parties to a contract are related to each other under some sort of relationship
2. (a) Undue influence implies unfair use of dominating position and some kind of mental and moral
pressure.
3. (c) Coercion may be exercised from any person and may be directed against any person, even a stranger
4. (d) If an act is done, with an intention to deceive because fraud is an intentional misrepresentation of
the facts.
5. (b) There is no presumption that a person is in position to dominate the will of another person in case
of creditor and debtor.
6. (d)
7. (a) The threat to commit a suicide is an offence under Pakistan Penal Code.
8. (d) The person who is in a dominating position is presumed to obtain unfair advantage over the other.
9. (d) Will not amount to fraud because it is a mere expression of opinion for making self- praise of his
own goods.
10. (d) A contract is set to be caused by coercion when it is obtained by unlawful detaining or threatening
to detain the property
11. (c) Yes, but the contract is void on account of bilateral mistake regarding material fact
i.e. identity of the subject matter (horse).
12. (d) Yes because the adoption deed was made by coercion because coercion implies use of physical force
or threat to cause consent.
13. (a) A contract is said to be caused by coercion when it is obtained by committing or threatening to
commit any act which is forbidden by Pakistan Penal Code
14. (d) Unsoundness of mind comes within the ambit of contractual capacity and not in free consent of
parties.
15. (a)
16. Fraud or misrepresentation.
17. Consensus-ad-idem
18. Connivance
19. Nature of contract, identity of a person.
20. Fraud.
21. (d) One who sells the goodwill of the business may agree with the buyer to refrain from carrying on a
similar business, provided that such restrictions are reasonable
22. (a) A promise to marry a particular person does not imply restraint of marriage.
23. (a) Agreement to sell all produce to a certain party with a stipulation that buyer is bound to accept
whole quantity
24. (b) Provided the restriction is reasonable, restriction can be made with the consent of both the parties.
25. (a) Jurisdiction of court of law cannot be restricted by any agreement.
26. (a) Any agreement which limits time period within which one can enforce his rights is void.
27. (c) Agreement, meaning of which seems to be uncertain but is capable of being made certain.
28. (a) They simply look at the possibility of happening of the event for their gain or loss.
29. (a) Agreement to buy ticket of lottery sponsored by the Government. A lottery is a game of chance. An
agreement to buy a lottery ticket is void.
30. (c) Agreement in restraint of marriage of a minor. Agreement, which prevents a minor from getting
married, is valid.
31. (c) It is because monopolistic practices in the market may lead to exploitation of customers.
32. (a) or (b) This is an agreement to regulator prices, hence valid.
33. (d) Mr. Bilal cannot join any other hospital of his own choice before the end of agreement because the
agreement was valid and Dr. Abdullah can restraint Mr. Bilal from practicing at any other hospital.
34. (d) Mutual gain or lose, uncertain event and no control over the event are considered essential
elements of a wagering agreement.
35. (c) Transaction of real and genuine sale and purchase of share and other securities in a stock exchange
is not of a wagering nature.
36. Void ab initio
37. Valid.
38. Marriage
39. Restrained.
40. Court of law.
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Business Law – The Practice Book Chapter 4: Free consent and void agreements

MULTIPLE CHOICE QUESTIONS

4. In a case of coercion the burden of proof lies on that party:

6. It is one of the essentials of the undue influence:

7. One of the parties in the contract of undue influence must be in a position:

10. The misrepresentation:

12. A promise made without any intention of performing it, is called:

13. Which one of the following combinations is correct:

17. One of the following contracts have no consensus-ad-idem:

19. Unilateral mistake is that in which:

21. The following contract is not voidable:

23. An agreement by way of wager is:

26. A void as well as an illegal contract is:

28. ** The consent is said to be free when:

30. ** The consent is said to be free when:

32. ** Which of the following is NOT a bilateral mistake? A mistake regarding:

34. ** Fraud means:

35. ** Consensus-ad-idem is:

CONCEPT REVIEW QUESTIONS

Q.5 Briefly explain whether there is valid agreement in following cases:

MULTIPLE CHOICE QUESTIONS

CONCEPT REVIEW QUESTIONS

Q.1 In following cases, aggrieved party cannot rescind the contract:

Q.2 Following are the exceptions to this general rule:

Q.3 Sale of Goodwill:

Agreements between partners:

Q.1 Relevant legal Provision:

Decision and Basis of Decision:

Q.2 Relevant legal Provision:

Decision and Basis of Decision:

Q.3 Relevant legal Provision:

Decision and Basis of Decision:

Q.4 Relevant legal Provision:

Decision and Basis of Decision:

Decision and Basis of Decision:

Decision and Basis of Decision:

Decision and Basis of Decision:

Q.6 Relevant legal Provision:

Decision and Basis of Decision:

Q.7 Relevant legal Provision:

Decision and Basis of Decision:

APX 1: OBJECTIVE BASED QUESTIONS AND ANSWERS:

15.* Which one is not a fraud

20. A promise made without the intention of performing it amounts to _________.

26.* Which one of the following agreements is restraint to legal proceedings

31.* Which of the following arrangement is void in relation to trade combination

34.* Which of the following is the essential of wagering agreement.

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