Contract, Guarantee & Bailment
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What are the essential elements of a valid contract under the Indian Contract Act, 1872?
A valid contract requires offer, acceptance, consideration, competent parties, free consent, lawful object, and certainty of terms. All these elements must be present simultaneously for the contract to be enforceable.
What is an offer under the Indian Contract Act, 1872?
A proposal by one party to another to do or abstain.
Who is considered a 'competent party' to enter into a contract under the Indian Contract Act?
A person is competent to contract if they have attained the age of majority (18 years), are of sound mind, and are not disqualified by any law. Contracts with minors are void ab initio.
What makes an acceptance legally valid under contract law?
Acceptance must be absolute, unqualified, and communicated to offeror.
What is the difference between a void contract and a voidable contract?
A void contract is one that is not enforceable by law from the very beginning, whereas a voidable contract is enforceable at the option of one party but can be repudiated by the aggrieved party due to coercion, fraud, or misrepresentation.
What is the meaning of 'consensus ad idem' in contract law?
Meeting of minds — both parties agree on the same thing.
What constitutes 'free consent' under the Indian Contract Act, 1872?
Free consent means consent not caused by coercion, undue influence, fraud, misrepresentation, or mistake. If consent is obtained by any of these vitiating factors, the contract becomes voidable at the option of the aggrieved party.
What is a contingent contract under the Indian Contract Act?
Contract dependent on occurrence of a future uncertain event.
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