CLAT Contract Law 3

Question 1

A contract entered into under coercion is:

Accepted Answer

Voidable at the option of the party whose consent was coerced

Answer

Under Section 19 of the Indian Contract Act, a contract induced by coercion is voidable — the aggrieved party may choose to affirm or rescind it.

Question 2

The doctrine of 'privity of contract' means:

Accepted Answer

Only parties to a contract can sue or be sued under it

Answer

Privity of contract means that only the parties who are privy to (part of) the contract can enforce rights or incur obligations under it.

Question 3

Which of the following is an example of 'quantum meruit'?

Accepted Answer

Payment for services actually rendered when a contract is subsequently found void

Answer

Quantum meruit ('as much as deserved') allows a party to recover the reasonable value of services rendered even when the contract is void or incomplete.

Question 4

Under the Indian Contract Act, which of the following constitutes 'fraud' under Section 17?

Accepted Answer

A suggestion of fact known to be false made by a party to deceive the other

Answer

Section 17 defines fraud as including a false suggestion of fact made knowingly or without belief in its truth, or recklessly, with intent to deceive the other party.

Question 5

In the case of 'Carlill v. Carbolic Smoke Ball Co.' (1893), the court held that:

Accepted Answer

A general advertisement can constitute a valid offer if sufficiently definite and intended as such

Answer

The court held that the advertisement was a valid offer — specific, unconditional, and accompanied by a deposit showing serious intent — and Mrs. Carlill's performance was acceptance.

(CLAT) Common Law Admission Test Practice Test

(CLAT) Common Law Admission Test Practice Test

CLAT Contract Law 3