Short.

1. What is an agreement?
An agreement is a mutual understanding or
arrangement between two or more parties about a
particular matter.

2. Are all agreements contracts?

No, all agreements are not contracts. An agreement
becomes a contract when it is enforceable by law and
creates legal obligations between the parties involved.

3. Define contract.
A contract is a legally binding agreement between two
or more parties that creates an obligation to perform
certain actions. It consists of an offer, acceptance,
consideration, and the intention to create legal relations.

4. What is voidable contract?

A voidable contract is a contract that is initially valid and
enforceable, but one or both parties have the option to
cancel or void the contract due to certain circumstances,
such as misrepresentation, fraud, undue influence, or
duress.

5. What is express contract?

An express contract is a contract in which the terms are
explicitly stated either verbally or in writing. The terms
are explicitly agreed upon by the parties involved, and
there is no ambiguity about what each party is obligated
to do.

6. What is quasi contract?

A quasi-contract is not a true contract, but rather a legal
remedy used by courts to prevent one party from being
unjustly enriched at the expense of another. It is a legal
fiction created by the courts to impose an obligation on
one party to pay for benefits received from another,
even if there was no formal agreement or contract
between the parties.
7. Who can demand performance of contract?
The parties to a contract can demand performance of
the contract. This means that each party has the right to
expect the other party to fulfill their obligations under
the contract.

8. Who will perform contract?

The parties to the contract are responsible for
performing the contract. Each party is obligated to fulfill
their obligations and duties as specified in the contract.

9. What is meant of performance of contract?

Performance of contract refers to the fulfillment of
the obligations and duties agreed upon by both
parties in a contract. It means that both parties have
met their respective obligations, and the contract has
been executed according to its terms and conditions.

10. What is assignment of contract?

Assignment of contract refers to the transfer of one
party's rights and obligations under a contract to
another party. The party that assigns the contract is
 known as the assignor, and the party that receives the
rights and obligations is known as the assignee.

11. What is novation?

Novation refers to the substitution of a new party for
an existing party in a contract. This occurs when all
parties agree to release one of the original parties
from their obligations and replace them with a new
party.

12. What is meant by alteration?

Alteration refers to a change made to a contract by
one or both parties after it has been signed. Any
alteration to a contract must be agreed upon by all
parties involved, and should be made in writing and
signed by all parties.

13. When does contract is terminated by operation of

law?
A contract is terminated by operation of law in certain
circumstances, such as when one of the parties dies or
becomes incapacitated, or when a law is passed that
makes the contract illegal.
14. What is subsequently impossibility?
Subsequently impossibility refers to a situation where
performance of a contract becomes impossible after
the contract has been formed due to an unforeseen
event or circumstance. In such cases, the party that is
unable to perform their obligations may be released
from their contractual obligations.

15. What is specific performance?

Specific performance is a legal remedy that requires a

party to fulfill their obligations under a contract as
agreed upon in the contract. It is typically used in
cases where monetary damages are not sufficient to
remedy a breach of contract, and the party that has
been harmed requires the specific performance of the
contract to be fulfilled.

16. What is meant by injunction?

An injunction is a court order that requires a party to
do or refrain from doing a particular act. It is a legal
remedy that is used to prevent irreparable harm or
injury, or to enforce a legal right.
17. When does right to sue on quantum meruit arise?
The right to sue on quantum meruit arises when one
party has provided goods or services to another party,
but no contract exists between them. In such cases,
the party that provided the goods or services may be
entitled to payment on the basis of the reasonable
value of their work.
18. What are ordinary damages?
Ordinary damages refer to the compensation
awarded to a party for losses or harm suffered as a
result of a breach of contract. These damages are
typically calculated based on the amount of loss or
harm suffered by the party.

19. What are exemplary damages?

Exemplary damages, also known as punitive damages,
are damages awarded to a party in a lawsuit as a
punishment for the defendant's wrongful conduct.
These damages are intended to deter others from
engaging in similar conduct in the future.

20. What is liquidated damages?

 Liquidated damages refer to a predetermined amount
of damages that are specified in a contract as
compensation in the event of a breach. These
damages are intended to provide a pre-determined
measure of compensation, rather than requiring the
party to prove the amount of loss or harm suffered.

21. What do you mean by free consent in the contract?

Free consent in a contract refers to a situation where
both parties enter into a contract voluntarily and
without any undue influence, coercion, or fraud. This
is an essential element of a valid contract.

22. What is consideration?

Consideration is something of value that is exchanged
between parties in a contract. It may be a promise, an
action, or a payment, and it is essential to the
formation of a legally binding contract.

23. What is capacity of parties?

Capacity of parties refers to the legal ability of
individuals or entities to enter into a contract. For
example, minors and individuals with mental
incapacities may not have the capacity to enter into a
legally binding contract.
24. What are the two elements of agreement?
The two elements of agreement are offer and
acceptance. An offer is a proposal made by one party
to another, and acceptance is the agreement of the
other party to the terms of the offer.

25. What are the kinds of agreement?

The kinds of agreements can be classified into various
categories based on their nature and purpose. For
example, there are agreements related to
employment, lease or rental, sale or purchase of
goods, service agreements, partnership agreements,
and many more.
 Long Questions?

1. What remedies are available to aggrieved party on

the breach of contract?
When a party breaches a contract, the other party is
entitled to certain remedies to compensate for the
losses suffered as a result of the breach. The following
are the remedies that are available to an aggrieved
party on the breach of contract:
1. Damages: The most common remedy for a breach of
contract is damages. Damages are a monetary
compensation paid to the aggrieved party to compensate
for any losses suffered as a result of the breach. Damages
may be compensatory, consequential, or nominal
depending on the nature and extent of the losses suffered.
2. Specific Performance: Specific performance is a court-
ordered remedy that requires the breaching party to fulfill
its obligations under the contract. It is an equitable
remedy that is granted when damages are not an
adequate remedy or when the subject matter of the
contract is unique.
3. Rescission: Rescission is a remedy that cancels the contract
and returns the parties to their pre-contractual positions.
This remedy is typically used when one party has been
fraudulently induced into entering into the contract.
 4. Restitution: Restitution is a remedy that is used to recover
property or funds that have been wrongfully taken by the
breaching party. This remedy is typically used when the
breach involves a breach of trust or breach of fiduciary
duty.
5. Injunction: An injunction is a court order that requires the
breaching party to stop performing certain actions or to
refrain from taking certain actions that would cause harm
to the aggrieved party.
In conclusion, the remedies available to an aggrieved party
on the breach of contract are designed to compensate for
the losses suffered as a result of the breach and to restore
the parties to their pre-contractual positions as much as
possible. The aggrieved party may seek one or more of
these remedies depending on the nature and extent of the
breach.

2. Explain the different kinds of damages?

Damages are a monetary compensation paid by the
breaching party to the aggrieved party to compensate
for any losses suffered as a result of the breach of
contract. There are different types of damages that
may be awarded depending on the nature and extent
of the breach.
I. Compensatory Damages: Compensatory damages are
designed to compensate the aggrieved party for the losses
 suffered as a result of the breach. These damages may be
awarded for direct losses such as loss of profits, loss of
use, and the cost of replacing or repairing damaged
property.
II. Consequential Damages: Consequential damages, also
known as special or indirect damages, are awarded to the
aggrieved party for losses that are not a direct result of the
breach but are a consequence of the breach. These
damages may include lost profits, lost opportunities, and
other indirect losses that are a result of the breach.
III. Nominal Damages: Nominal damages are awarded to the
aggrieved party when the breach of contract did not result
in any actual loss or damages. The purpose of nominal
damages is to establish the liability of the breaching party
for the breach.
IV. Liquidated Damages: Liquidated damages are damages
that are specified in the contract as a fixed amount of
damages that will be awarded in the event of a breach.
The purpose of liquidated damages is to provide a
predetermined amount of damages that will be paid in the
event of a breach, rather than having to prove actual
losses suffered as a result of the breach.
V. Punitive Damages: Punitive damages are damages that are
awarded to the aggrieved party to punish the breaching
party for their conduct. These damages are typically
awarded in cases where the breach was willful, malicious,
or grossly negligent.
 In conclusion, the type of damages that may be awarded
will depend on the nature and extent of the breach of
contract. The aim of damages is to compensate the
aggrieved party for the losses suffered as a result of the
breach, and to restore them to their pre-contractual
position as much as possible.

3. What are the various ways in which contract may be

discharged?
A contract is said to be discharged when the rights and
obligations arising from it come to an end. There are
several ways in which a contract may be discharged,
including:
1. Performance: The most common way in which a contract is
discharged is by performance. This occurs when both
parties fulfill their obligations under the contract and the
terms of the contract are satisfied.
2. Agreement: A contract may be discharged by mutual
agreement between the parties. This can occur in several
ways, such as when both parties agree to terminate the
contract, or when one party agrees to release the other
party from their obligations under the contract.
3. Breach: A contract may be discharged if one party
breaches the terms of the contract. In such cases, the non-
breaching party may choose to terminate the contract and
 seek damages for any losses suffered as a result of the
breach.
4. Frustration: A contract may be discharged due to
frustration, which occurs when an unforeseen event makes
it impossible to perform the contract. Examples of events
that may frustrate a contract include a natural disaster, a
war, or a change in the law that makes it illegal to perform
the contract.
5. Operation of law: A contract may be discharged by
operation of law. This can occur in several ways, such as
when the contract becomes illegal or impossible to
perform, or when one of the parties dies or becomes
bankrupt.
6. Rescission: A contract may be discharged by rescission,
which occurs when the parties agree to undo the contract
and restore the parties to their pre-contractual position.

4. What is tender? State the essentials of valid tender

Tender is an offer made by one party to another to do
something or provide goods or services, in exchange
for a specified price or compensation. In the context of
contracts, a tender is often used as a way for one party
to invite others to submit a proposal for a project or
job, with the goal of selecting the best proposal to
proceed with.
 In order for a tender to be considered valid, there are
several essential elements that must be met:
1. Proper communication: The tender must be properly
communicated to the party to whom it is intended. This
can be done through various means, such as in writing, by
phone, or in person.
2. Clarity: The terms of the tender must be clear and
unambiguous, so that both parties understand what is
being offered and what is expected in return.
3. Specificity: The tender must be specific and detailed,
including details such as the price, timeline, quality
standards, and any other relevant information.
4. Timeliness: The tender must be submitted within the
deadline specified by the party issuing the tender. Late
tenders may not be considered.
5. Validity: The tender must be valid and binding, with no
legal defects or flaws.
6. Compliance with requirements: The tender must comply
with all legal, technical, and administrative requirements
specified by the party issuing the tender.
7. Financial security: The tender must include adequate
financial security or guarantees, such as a performance
bond or a deposit, to ensure that the party issuing the
tender is protected against any potential losses.
Overall, a valid tender is an important part of the contract
formation process, as it sets out the terms and conditions
of the agreement between the parties. By meeting the
above essentials of a valid tender, parties can ensure that
their contractual obligations are clear and enforceable, and
that they are protected against any potential risks or losses

5. Discuss the law relating to discharge of contract by

agreement?
In contract law, a contract can be discharged by
agreement between the parties involved. This means
that the parties have come to a mutual agreement to
end the contract before the performance of the
contractual obligations is complete. The discharge of
contract by agreement can take place in several ways,
including:
1. Mutual rescission: This occurs when the parties agree to
cancel the contract and release each other from any
further obligations under the agreement. Mutual rescission
requires a new agreement between the parties that is
supported by valid consideration.
2. Accord and satisfaction: This occurs when the parties agree
to a new performance in place of the original performance,
and once the new performance is complete, the original
contract is discharged. For example, if a contractor agrees
to perform additional work in exchange for an extension of
the deadline, and both parties agree to the new terms, this
is considered an accord and satisfaction.
3. Novation: This occurs when the parties agree to substitute
a new party for one of the original parties to the contract.
This new party takes on all the rights and obligations of
the original party, effectively discharging the original party
from any further obligations under the contract.
4. Condition precedent: This occurs when a contract is made
subject to a condition, and the condition is satisfied, which
discharges the contract. For example, a contract for the
sale of a car may be subject to the condition that the
buyer secures financing for the purchase. Once the buyer
secures the financing, the condition precedent is satisfied
and the contract is discharged.

Overall, the law relating to discharge of contract by

agreement is based on the principle of mutual agreement
between the parties. As long as the parties agree to the
terms of the discharge and the agreement is supported by
valid consideration, the contract can be lawfully
discharged. However, it is important for parties to ensure
that they clearly document the terms of the agreement to
avoid any misunderstandings or disputes in the future.

6. Explain (a) Discharge by lapse of time (b) operation of

law.

(a) Discharge by lapse of time:

Discharge by lapse of time is a way in which a contract can

be terminated when a specific time period or event has
occurred. Contracts may specify an end date for the
performance of the obligations, after which the contract is
considered to be discharged. Alternatively, contracts may
specify that the obligations under the contract must be
performed within a certain time period, after which the
contract is considered to be discharged.

For example, a contract for the delivery of goods may

specify that the goods must be delivered within 30 days of
the contract's execution. If the goods are not delivered
within the specified time period, the contract is considered
to be discharged by lapse of time.

(b) Operation of law:

 Discharge by operation of law occurs when a contract is
terminated due to an event outside the control of the
parties. This means that the contract is not terminated by
the actions of either party, but rather by operation of law.

There are several ways in which a contract can be

discharged by operation of law, including:

1. Frustration: This occurs when an unforeseen event occurs

that makes it impossible to perform the obligations under
the contract. For example, if a contract is made for the sale
of a house, and the house is destroyed in a fire before the
sale is completed, the contract is considered to be
frustrated and is discharged by operation of law.
2. Illegality: This occurs when the subject matter of the
contract becomes illegal or impossible to perform. For
example, if a contract is made for the sale of illegal drugs,
the contract is considered to be illegal and is discharged
by operation of law.
3. Bankruptcy: This occurs when one of the parties to the
contract becomes bankrupt and is unable to perform their
obligations under the contract. In such cases, the contract
is considered to be discharged by operation of law.

In conclusion, discharge by lapse of time and operation of

law are two ways in which a contract can be terminated
without the need for mutual agreement between the
parties. While discharge by lapse of time occurs when a
 specific time period or event has occurred, discharge by
operation of law occurs due to an event outside the
control of the parties.

7.6What are the rules for demand of performance and

performance of contract?

When two or more parties enter into a contract, they are

obligated to perform their respective obligations under
the contract. Failure to perform the obligations may result
in a breach of contract, and the aggrieved party may seek
remedies for the breach. The rules for demand of
performance and performance of contract are as follows:

1. Demand for Performance: The party who is entitled to

receive the performance under the contract may demand
the other party to perform the obligation. The demand
must be made in writing, and the party should specify the
time frame for performance.
2. Time of Performance: The time for performance of the
obligation must be specified in the contract. If there is no
specific time mentioned in the contract, the obligation
must be performed within a reasonable time.
3. Tender of Performance: The party who is obligated to
perform the obligation may tender the performance to the
 other party. The tender must be made at the time and
place specified in the contract.
4. Acceptance of Performance: The party who receives the
tender of performance may either accept or reject the
performance. If the performance is not according to the
terms of the contract, the party may reject the
performance.
5. Excuse for Non-Performance: The non-performance of the
obligation may be excused if it is due to the occurrence of
an event that is beyond the control of the parties, such as
an act of God, war, or natural disasters.
6. Performance by Third Party: The parties may agree that the
obligation may be performed by a third party. The
performance by the third party must be acceptable to both
parties.
7. Breach of Contract: If one party fails to perform the
obligation under the contract, it will be considered as a
breach of contract. The aggrieved party may seek
remedies for the breach, such as damages or specific
performance.

In conclusion, the rules for demand of performance and

performance of contract are important to ensure that both
parties fulfill their obligations under the contract and to
provide remedies in case of a breach.
 8. Discuss the circumstances under which a contract need
not to be performed?
There are certain circumstances under which a contract
may not be performed. These circumstances may arise due
to the fault of either party or due to external factors. The
following are some of the circumstances under which a
contract need not to be performed:

1. Impossibility: If the performance of the contract becomes

impossible due to some unforeseeable event such as
natural disaster, death or incapacity of a party, or changes
in the law, then the contract may not be performed.
2. Illegality: If the subject matter of the contract becomes
illegal or the performance of the contract becomes illegal
due to changes in the law, then the contract may not be
performed.
3. Frustration of Purpose: If the purpose of the contract
becomes impossible to achieve due to some
unforeseeable event, then the contract may not be
performed. For example, if a party rents a venue for a
specific event and the event is cancelled due to
unforeseeable reasons, then the contract may be
frustrated.
4. Breach by the other party: If one party breaches the
contract by failing to perform their obligations, then the
other party may not be required to perform their
obligations under the contract.
5. Mutual Agreement: If both parties agree to cancel the
contract, then it may not be performed. The parties may
enter into a new contract or terminate the existing
contract.
6. Impracticability: If the performance of the contract
becomes impracticable or unreasonably difficult due to
some unforeseeable event, then the contract may not be
performed.
7. Force Majeure: If the contract contains a force majeure
clause, which excuses the parties from performance in the
event of unforeseeable circumstances such as acts of God,
war, or strikes, then the contract may not be performed.

In conclusion, there are various circumstances under which

a contract may not be performed. It is important for
parties to understand these circumstances and include
appropriate provisions in the contract to address them.

9.What is contract and what are the essentials of valid

contract?
A contract is a legally binding agreement between two or
more parties, which creates enforceable obligations.
Contracts can be in written or oral form, although it is
generally recommended to have written contracts for
clarity and evidence purposes.
 The following are the essential elements of a valid
contract:

1. Offer: An offer is a proposal made by one party to another,

indicating a willingness to enter into a contract on certain
terms.
2. Acceptance: Acceptance is the expression of agreement by
the offeree to the terms of the offer. It must be
communicated to the offeror, and must be in response to
the offer.
3. Consideration: Consideration is the exchange of
something of value between the parties. It is the price that
the promisee pays in exchange for the promise of the
promisor.
4. Intention to create legal relations: The parties to the
contract must have the intention to create a legally
binding agreement. If the parties do not intend for the
agreement to be legally binding, then it is not a valid
contract.
5. Capacity to contract: The parties to the contract must have
the legal capacity to enter into a contract. This means that
they must be of legal age and must not be under duress or
undue influence.
6. Free consent: The parties must have given their free
consent to the contract. This means that there must not be
any coercion, undue influence, misrepresentation, or
mistake.
7. Lawful object: The object of the contract must be lawful. If
the object of the contract is illegal or against public policy,
then the contract is not valid.

In conclusion, a contract is a legally binding agreement

between two or more parties. In order for a contract to be
valid, it must have the essential elements of offer,
acceptance, consideration, intention to create legal
relations, capacity to contract, free consent, and a lawful
object. It is important for parties to ensure that these
elements are present in any contract they enter into.

10.What are the kinds of contract according to enforceability

Contracts can be classified into different categories based
on their enforceability. The main kinds of contracts
according to enforceability are:

1. Valid Contracts: A valid contract is a binding agreement

between parties that meets all the legal requirements for
enforceability. It contains all the essential elements of a
contract, such as offer, acceptance, consideration, and the
intention to create legal relations.
2. Void Contracts: A void contract is one that is not
enforceable by law. It is a contract that is deemed to be
 null and void from the outset because it lacks one or more
of the essential elements required for a contract to be
valid. For example, a contract entered into by a minor is
voidable at the option of the minor.
3. Voidable Contracts: A voidable contract is one that is
initially valid but can be avoided or cancelled by one of the
parties because of some legal defect. The party who is
entitled to avoid the contract can choose to do so or waive
the defect and continue with the contract.
4. Unenforceable Contracts: An unenforceable contract is one
that cannot be enforced by a court of law because of some
legal technicality. For example, a contract that is not in
writing, but which is required by law to be in writing, is
unenforceable.
5. Express Contracts: An express contract is one in which the
parties explicitly state the terms of their agreement, either
in writing or orally. All the terms and conditions of the
contract are expressly agreed upon by the parties.
6. Implied Contracts: An implied contract is one in which the
terms of the agreement are not explicitly stated, but rather
inferred from the conduct of the parties. It arises from the
circumstances surrounding the transaction or from the
parties' previous dealings.
7. Executed Contracts: An executed contract is one in which
all the terms of the agreement have been fully performed
by both parties. The contract is executed when all the
obligations under the contract have been fulfilled.
8. Executory Contracts: An executory contract is one in which
one or both of the parties have not yet fulfilled their
obligations under the contract. It is a contract that is in
progress, and the parties are still in the process of
performing their obligations.