1, What is an Acceptance?
Ans: Acceptance is the act of assenting by the offeree to an offer.
2. How is Acceptance is defined under Indian Contract Act?
Ans: Under Section 2(b) of the Contract Act when a person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise.
3. What are the rules for Governing Acceptance? (Just read)
Ans: (a) Acceptance may be express i.e. by words spoken or written or implied from the conduct of the parties.
(b) If a particular method of acceptance is prescribed, the offer must be accepted in the prescribed manner.
(c) Acceptance must be unqualified and absolute and must correspond with all the terms of the offer.
(d) A counter offer or conditional acceptance operates as a rejection of the offer and causes it to lapse,
(e) Acceptance must be communicated to the offeror, for acceptance is complete the moment it is communicated. Where the offeree merely intended to accept but does not communicate his intention to the offeror, there is no contract. Mere mental acceptance is not enough.
(f) Mere silence on the part of the offeree does not amount to acceptance.
(g) If the offer is one which is to be accepted by being acted upon, no communication of acceptance to the offeror is necessary, unless communication is stipulated for in the offer itself.
(h) Acceptance must be given within a reasonable time and before the offer lapses or is revoked. An offer becomes irrevocable by acceptance.
4. When did contracts over Phone is Regarded?
Ans: Contracts over the telephone are regarded the same in principle as those negotiated by the parties in the actual presence of each other. In both cases an oral offer is made and an oral acceptance is expected.
5. Who emerges the Acceptance of an offer?
Ans: A contract emerges from the acceptance of an offer.
6. What are the important things we should kept in mind while doing Contract over Telephone?
Ans: . It is important that the acceptance must be audible, heard and understood by the offeror. If during the conversation the telephone lines go “dead” and the offeror does not hear the offeree’s word of acceptance, there is no contract at the moment. If the whole conversation is repeated and the offeror hears and understands the words of acceptance, the contract is complete.
7. Which is the second essential element of a valid contract?
Ans: The second essential element of a valid contract is that there must be an intention among the parties that the agreement should be attached by legal consequences and create legal obligations. If there is no such intention on the part of the parties, there is no contract between them.
8. What is the most essential element of a valid contract?
9. What is consideration as per Fredrick Pollock
Ans: Sir Fredrick Pollock has defined consideration “as an act or forbearance of one party, or the promise thereof is the price for which the promise of the other is bought”.
10. What is consideration as per Indian Contract act?
Ans: Section 2(d) of the Indian Contract Act, 1872 defines consideration thus: “when at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains fromdoing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise”.
11. What are the two system of consideration?
Ans: (a) Consideration at the desire of the promisor
(b) Consideration may move from the promisee or any other person.
12. Which section of the Act begins with the statement that consideration must move at the desire or request of the promisor.
Ans: Section 2(d).
13. what is Privity of Contract.
Ans: A stranger to a contract cannot sue both under the English and Indian law for want of privity of contract.
14. What are the kinds of Consideration. Ans: Consideration may be:
(a) Executory or future which means that it makes the form of promise to be performed in the future, e.g., an engagement to marry someone; or
(b) Executed or present in which it is an act or forbearance made or suffered for a promise. In other words, the act constituting consideration is wholly or completely performed.
(c) Past which means a past act or forbearance, that is to say, an act constituting consideration which took place and is complete (wholly executed) before the promise is made.
15. What are the Rules for Governing Consideration. (Just Read)
Ans: (a) Every simple contact must be supported by valuable consideration otherwise it is formally void subject to some exceptions.
(b) Consideration may be an act of abstinence or promise.
(c) There must be mutuality i.e., each party must do or agree to do something. A gratuitous promise as in the case of subscription for charity, is not enforceable.
(d) Consideration must be real, and not vague, indefinite, or illusory, e.g., a son’s promise to “stop being a nuisance” to his father, being vague, is no consideration.
(e) Although consideration must have some value, it need not be adequate i.e., a full return for the promise.
(f) Consideration must be lawful, e.g., it must not be some illegal act such as paying someone to commit a crime. If the consideration is unlawful, the agreement is void.
(g) Consideration must be something more than the promisee is already bound to do for the promisor.
16. When Consideration not Necessary.
Ans: The general rule is that an agreement made without consideration is void. But Section 25 of the Indian Contract Act lays down certain exceptions which make a promise without consideration valid and binding. Thus, an agreement without consideration is valid.
a. If it is expressed in writing and registered and is made out of natural love and affection between parties standing near relation to each other, or
b. If it is made to compensate a person who has already done something voluntarily for the promisor, or done something which the promisor was legally compellable to do; or
c. If it is a promise in writing and signed by the person to be charged therewith, or by his agent, to pay a debt barred by the law of limitation.
d. Besides, according to section 185 of the Indian Contract act, Consideration is not required to create an agency
e. In the case of gift actually made, no consideration is necessary. There need not be nearness of relation and even if it is, there need not be any natural love and affection between them
17. What are The requirements in the above exceptions are noteworthy. Ans: a. The first one requires written and registered promise.
b. The second may be oral or in writing and
c. The third must be in writing
18. Under which circumstances a contract is made.
Ans: A contract made under these rules may still be bad, because there is a flaw, vice or error somewhere.
19. What are following remedies where there is no real agreement. Ans:
Firstly : The agreement may be treated as of no effect and it will then be known as void agreement.
Secondly : The law may give the party aggrieved the option of getting out of his bargain, and the contract is then known as voidable.
Thirdly : The party at fault may be compelled to pay damages to the other party.
20. What is a Void Agreement.
Ans: A void agreement is one which is destitute of all legal effects. It cannot be enforced and confers no rights on either party. It is really not a contract at all, it is non-existent.
21. What is Void Agreement as per Indian Contract Act.
Ans: According to Section 2 (j) of the Indian Contract Act, a contract which ceases to be enforceable by law becomes void when it ceases to be enforceable. Void means a lack of existence or a nullity.
22. What is a Voidable Contract?
Ans: A voidable contract is one which a party can put to an end. He can exercise his option, if his consent was not free.
23. What is an Illegal Agreement?
Ans: An illegal agreement is one which, like the void agreement has no legal effects as between the immediate parties.
24. What are the chief flaws in a Contract?
Ans: Incapacity ,Mistake ,Misrepresentation, Fraud.
25. What is the nature of a person.
Ans: persons are either natural or artificial.