Contract Law Flashcards

Under the Indian Contract Act, 1872, which section defines a 'contract'?

Answer: Section 2(h)

Section 2(h) of the Indian Contract Act, 1872 defines a contract as an agreement enforceable by law.

Which of the following is NOT an essential element of a valid contract under the Indian Contract Act, 1872?

Answer: Written form

A written form is not an essential element; most contracts can be oral unless a specific statute requires writing.

A contract made by a minor is:

Answer: Void ab initio

The Privy Council in Mohori Bibee v. Dharmodas Ghose (1903) held that a minor's contract is void ab initio.

Under Section 14 of the Indian Contract Act, consent is said to be free when it is not caused by all of the following EXCEPT:

Answer: Mutual mistake of both parties

Section 14 lists coercion, undue influence, fraud, misrepresentation, and mistake as vitiating elements; mutual mistake is covered under Sections 20-22, not Section 14.

Which of the following is a 'contingent contract' under the Indian Contract Act?

Answer: A contract to pay Rs. 10,000 if a particular ship arrives safely

A contingent contract is one to do or not do something upon the happening of a collateral uncertain event, such as a ship arriving safely.

The rule in 'Hadley v. Baxendale' (1854) relates to:

Answer: Remoteness of damages in breach of contract

Hadley v. Baxendale established that damages for breach of contract are limited to those that were reasonably foreseeable at the time the contract was made.

Under Section 56 of the Indian Contract Act, a contract becomes void when:

Answer: Its performance becomes impossible or unlawful after it is made

Section 56 embodies the doctrine of frustration — a contract is void if its performance becomes impossible or unlawful due to a subsequent event beyond the parties' control.