India · 1st Year · Law of Contract
Consent, Void Agreements & Special Contracts
More sections from the Indian Contract Act.
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Show all 12 questions and answers in this book
1.ICA ss 2(a) and 2(b) — proposal and acceptance?
s 2(a): a proposal is made when one signifies willingness to do or abstain from doing anything, with a view to obtaining the other's assent. s 2(b): a proposal is accepted when the person to whom it is made signifies assent.
ICA 1872, s 2(a)–(b)
2.ICA s 4 — when is communication of acceptance complete?
As against the proposer, when it is put in course of transmission so as to be out of the acceptor's power; as against the acceptor, when it comes to the proposer's knowledge.
ICA 1872, s 4
3.Bhagwandas Goverdhandas Kedia v Girdharilal Parshottamdas (1966) — held?
A contract made by telephone is concluded where the acceptance is heard by the proposer, which determined the court's jurisdiction.
AIR 1966 SC 543
4.Harvey v Facey [1893] — principle?
A reply stating the lowest price is not an offer to sell; it is merely information.
[1893] AC 552 (PC)
5.Felthouse v Bindley (1862) — principle?
Silence cannot amount to acceptance; an offeror cannot impose acceptance by silence.
(1862) 11 CB (NS) 869
6.Define coercion (s 15) and undue influence (s 16).
Coercion: committing or threatening any act forbidden by the Indian Penal Code, or unlawfully detaining property, to cause a person to enter an agreement. Undue influence: a person in a position to dominate the other's will uses that position to obtain an unfair advantage.
ICA 1872, ss 15–16
7.Effect of mistake under ss 20 and 21?
s 20: where both parties are under a mistake as to a matter of fact essential to the agreement, the agreement is void. s 21: a mistake as to Indian law does not make a contract voidable.
ICA 1872, ss 20–21
8.ICA s 30?
Agreements by way of wager are void.
ICA 1872, s 30
9.Quasi-contracts under ss 68, 70 and 72?
s 68: necessaries supplied to a person incapable of contracting are reimbursable from their property. s 70: a person enjoying a non-gratuitous act must compensate. s 72: money paid or thing delivered by mistake or coercion must be repaid or returned.
ICA 1872, ss 68–72
10.Indemnity, guarantee, bailment and agency — defining sections?
Indemnity: s 124. Guarantee: s 126. Bailment: s 148. Agent and principal: s 182.
ICA 1872, ss 124, 126, 148, 182
11.Kailash Nath Associates v DDA (2015) — s 74?
Compensation under s 74 requires proof of legal injury; where no loss is caused or it cannot be proved, earnest money cannot be forfeited as reasonable compensation.
(2015) 4 SCC 136
12.What did the Specific Relief (Amendment) Act 2018 change?
Specific performance of contracts became the general rule rather than a discretionary remedy (s 10 as amended).
Specific Relief Act 1963, s 10 (as amended 2018)