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Topics of Law Test 13

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Topics of Law Test 13
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Weekly Quiz Competition
  • Question 1
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    Who is person of unsound mind?
  • Question 2
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    An agreement not enforceable by law is said to be ___________.
  • Question 3
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    Who is competent to make a valid contract?
  • Question 4
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    In which of these situations a contract becomes void?
    Solution
    Any contract depending upon the possibility of the event prescribed is valid unless the event is impossible or if the contract is contingent on happening of an uncertain event which is wagering contract void under section 30 of the Contract Act, 1872. In the aforementioned both the cases the contract becomes void in nature. 
  • Question 5
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    Which of the following agreements is/are an agreement expressly declared void by the Indian Contract Act?
    Solution
    • As per section 29 of the Indian Contract Act, 1872, agreements, the meaning of which is not certain, or capable of being made certain, or any uncertain event are void. 
    • As per section 26 of the act, every agreement in restraint of the marriage of any person, other than a minor, is void.
    • Under Section 30 of the Act, agreements by way of wager are void and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to a person to abide the result of any game or other uncertain event on which any wager is made. 
    Hence all the above mentioned agreements are void in nature.
  • Question 6
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    ________ has not been expressly declared void by the Indian Contract Act?
    Solution
    Under the Contract Act, 1872 there are certain agreements which are expressly declared void in the eyes of law  which includes:
    • Section 25 of the act which says that all those agreement which are without consideration are void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.
    • Section 11 prescribes people who can enter into a valid contract which includes person who is of the age of majority according to the law to which he is subject, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.
    • Section 23 provides that those agreements, considerations and objects of which are unlawful i.e. forbidden by law; or are of such nature that, if permitted it would defeat the provision of any law or is fraudulent; or involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy, are void in nature.
    • On the other hand Section 26 of the act considers agreements in restraint of marriage void unless the marriage is of a minor and hence it has not been expressly declared void. 

  • Question 7
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    When a contract is not enforceable at the option of one party is a __________.
  • Question 8
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    Consider the following statements :
    1.A quasi-contract is a real or true contract and it is an obligation imposed by law.
    2.A quasi-contract arises from a duty of a party and not by promise of any party.
    3.A quasi-contract always gives rise to right to personam not in rem.
    Which of the above statement/s is/are not correct ?
  • Question 9
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    A void agreement is Void _________.
    Solution
    A contract that cannot be legally enforced by either party is considered void. Characteristics of a void contract include:
    • Not legally enforceable
    • Does not create legal rights or obligations for either party
    • May be against the law or public policy
    • Does not require compensation to be paid to either party
    • May occur if either party signed under duress
    A void contract is void as soon as it is created or also known as Void Ab-Initio i.e. void from the beginning and this type of agreement can never be void because it was never a legal contract to begin with.
  • Question 10
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    X promises to pay Y Rs. 1,00,000 on his promising to never get married in life. This agreement is not enforceable due to __________________.
    Solution
    As per section 26 of the Contract Act,  any contract in restraint of the marriage of any person, other than a minor, is void. In the present case, X has promised Y a sum of money only if he never marries in his life which is a restraint of marriage of Y and hence is void in nature.
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