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Topics of Law Test 57

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Topics of Law Test 57
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  • Question 1
    1 / -0
    A applies to a banker for a loan at a time when there is stringency in the money market, the banker declines to make the loan except at an unusually high rate of interest. A accepts the loan on these terms. There is____.
  • Question 2
    1 / -0
    When consent to an agreement is caused by undue influence, the contract is _____________.
    Solution
    A contract is said to be induced by undue influence where the relations between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other. Such a contract is voidable at the option of the promisee through whom such an consent was obtained.
  • Question 3
    1 / -0
    Unlawful detaining, or threatening to detain, any property with the intention of causing any person to enter into an agreement is called_____.
    Solution
    Section 15 states "Coercion’ is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement."
  • Question 4
    1 / -0
    Contracts classified on the basis of performance are____.
    Solution
    According to the execution of contracts, the contracts are classified into :
    1.Executed Contracts - The contract is said to be executed when both the parties have performed their share of obligation.
  • Question 5
    1 / -0
    Any act fitted to deceive is called_____.
    Solution
    Section 17 states: ‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:—
    (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
    (2) the active concealment of a fact by one having knowledge or belief of the fact;
    (3) a promise made without any intention of performing it;
    (4) any other act fitted to deceive;
    (5) any such act or omission as the law specially declares to be fraudulent.
  • Question 6
    1 / -0
    The active concealment of a fact by one having knowledge or belief of the fact is called_____.
    Solution
    Section 17 states: ‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:—
    (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
    (2) the active concealment of a fact by one having knowledge or belief of the fact;
    (3) a promise made without any intention of performing it;
    (4) any other act fitted to deceive;
    (5) any such act or omission as the law specially declares to be fraudulent.
  • Question 7
    1 / -0
    Undue influence is not presumed when the relationship between the parties is______.
    Solution
    The Exposure of goods by a shopkeeper does not amount to an offer to sell. On picking the goods, it is an offer by the customer to buy, and sale is not effected until the buyer’s offer price is accepted by the shopkeeper. Hence, undue influence is not presumed.
  • Question 8
    1 / -0
    ______Misrepresentation is known as fraud.
    Solution
    Section 18 states “Misrepresentation” means and includes— 
    (1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;
    (2) any breach of duty which, without an intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him;
    (3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.
  • Question 9
    1 / -0
    Which one of the following is not a contract?
    Solution
    There was no intention to create legal relationship when A invites B to dinner.
    According to Section-10 of the Indian Contract Act,1872 a contract to be valid must be made with an intention to create legal relationship.
  • Question 10
    1 / -0
    Contract contingent upon the non-happening of an uncertain future event can be enforced
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