Topics of Law Test 40

Quid pro quo is a Latin maxim literally meaning giving something of value for another. It refers to some valuable consideration in contract law and forms an essential element of a valid contract. Misrepresentation has been defined in Section 18 of the Indian Contract, 1872 as a representation made by one of the parties for inducing another to enter into the contract, believing the representation to be true. However, the information is wrong and causes loss to the other party. Section 19 further states that any agreement induced by misrepresentation is voidable at the option of the party suffering loss as consent is not considered free in this case. Section 10 requires the parties to have capacity to contract i.e. they must be major (above 18 years of age) and of sound mind. Consensus ad idem has been defined in Section 13 of the Indian Contract Act, 1872 as parties agreeing on the same thing in the same sense. In the absence of this, the contract becomes void.