Contracts I Revision

Contract law is based on -

• the interest of the State

• the will of individuals

• the sanctity of promise and trust

• punishing individuals

Define Contract.

“X” a needy farmer has agreed to sell his golden ring worth Rs. 20,000/- for just Rs. 1,000/- to “Y”, a powerful land owner. Nature of Consent of “X” in this contract is unclear. Subsequently, “X” wants to set aside the contract on the ground that the consideration is not adequate. Advise “X”.

Anand and Bhaskar enter into an agreement that Anand shall pay Bhaskar Rs. 10, 000, if it rains on next Monday; and Bhaskar shall pay Anand the same amount if it does not rain. Can Bhaskar sue Anand to recover the amount?

• No. It is void according to Section 30

• Yes, this is a contingent contract and therefore valid.

Which of the following is a void agreement ?

• Agreements by or with persons incompetent to contract

• Agreements entered into through a mutual mistake of fact between the parties

• Agreement, the object or consideration of which is unlawful

• Agreement made without adequate consideration

• Agreement in restraint of marriage and trade

The Respondents (R)- owners of ‘Bumper Hall Pen’ (a plot of land). The Appellants (A) sent a telegram to the R which read, ‘Will you sell us Bumper Hall Pen? Telegraph lowest cash price’,

The R replied, ‘Lowest price for Bumper Hall Pen, £900.’ The A then telegraphed, ‘We agree to buy Bumper Hall Pen for £900 asked by you. Please send us your title deeds in order that we may get early possession.’ The A received no reply and thereupon brought an action for specific performance. Will they succeed?

An offer, by way of advertisement, of a reward for finding a missing Dog addressed to the public is not a valid offer.

• True

• False

When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a ___ contract .

A beats B and compels him to sell his scooter for Rs. 2,000. In this case the consent of B is induced by ___

When one party has made a promise or given an assurance and another person has acted to his prejudice (to his loss) on the faith of the same; the person making the promise or giving assurance becomes bound by the principle of-

• good faith

• promissory estoppel

• there is no binding contract