CERTIFICATE COURSE ON VALIDITY OF CONTRACTS IN

INDIA

ASSIGNMENT

Name : - Shivali Varshney

Email ID :- shivalivarshney257@gmail.com

Contact no. – 9457540500

Validity of Contracts in India (ASSIGNMENT)

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ONE WORD/ONE LINER QUESTIONS 2 Marks Each
1. When can an unsound mind enter into a Contract?

Answer 1 :- A person who is usually of an unsound mind, but occasionally of a sound

mind, can enter a contract when he is of sound mind.
2. Mistake of one party as to the terms of the Contract renders the contract to be Valid, Void
or Voidable?

Answer 2 :- Voidable contract

3. If one minor contracts with another minor to give him Rs.500 if he burns his own house,
what kind of a Contract is this?

Answer 3 :- It will be void ab initio.

4. The only exception as to a wagering contract being valid in India is?

Answer 4 :- Contract in favor of certain prizes for horse racing is an exception.

5. A made a contract with B to beat up C. Is this contract valid, voidable or void?

Answer 5 :- Void.

SUBJECTIVE QUESTIONS [Within 100 Words]

5 Marks Each

1. Explain the difference between Fraud and Misrepresentation?

Answer 1 :- The main difference between fraud and misrepresentation is that, fraud is done with
an aim of deceiving others, which is not in the case of misrepresentation. And, so
misrepresentation does not entitles the aggrieved party cannot sue the other party for damages

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but can avoid the contract. conversely, fraud entitles the aggrieved party to avoid the contract
and also file a suit against other party for damages. Fraud is a deliberate misstatement of a
material fact. Misrepresentation is a bonafide representation of misstatement believing it to be
true which turns out to be untrue..

2. Why is restraint of Marriage a ground for invalidity of a Contract?

Answer 2 :- Section 26 of the Indian Contract Act of 1872 states that every agreement in
restraint of marriage, except those in restraint of marriage of minors, is void. The fundamental
idea behind this provision was to ensure that the citizens did not lose their right to marry as per
their choice, which is an essential part of a civil society having both personal and social
significance, due to some contractual obligation entered into at any point of time.

3. Explain in brief, Derry v. Peak?

Answer 3 :- Brief Facts : Plaintiff brought suit after it bought shares in Defendant’s company,
under the belief that Defendant would have the right to use steam power, as opposed to other
companies, which would not.

Judgment : Misrepresentation, alone, is not sufficient to prove deceit. An action of deceit will
only stand in a court when a plaintiff can show not only misrepresentation, but also that
defendants knew they would be unable to follow through with their representations.

4. Give 5 examples of Voidable Contracts.

Answer 4 :- 1. Contract entered into by fraud is voidable.

2. A contract entered into with a minor (under 18 years) could be voidable.

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3. Contracts where one party was forced or tricked into entering it.

4. Contracts entered when one party was incapacitated (drunk, insane, delusional).

5. Contracts entered through misrepresentation.

ANALYTICALQUESTIONS [Within 200 Words]

10 Marks Each

1. Even in today’s era, common people are reluctant to enter into a written contract in their
day to day dealings. What can be done to educate the mass about the importance of
written contracts?

Answer 1 :- Written contracts are voluntary made and considered as a vital component,
especially if great risks are involved. The benefits of making the contracts in writing are :

1. Serve as an official record of the agreement.

2. Avoid expensive litigation proceedings.
3. It provides an opportunity to agree to confidentiality and non-disclosure provisions
protecting sensitive information.
4. a written contract can provide security and peace of mind to all of the parties involved in
the transaction.
5. The main purpose of this formal written agreement is to give each concerned party the
chance to read and have a clearer understanding of the terms or conditions, including the
personal expectations of each party and what they have come to terms after a thorough
discussion.
6. It can legally serve as proof of details on whatever you and the other party have mutually
agreed.

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 2. If you had the power to remove a provision from the Indian Contract Act 1872 which one
would it be and why?

Answer 2 :-

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