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Judiciary Exams Exam  >  Judiciary Exams Tests  >  Civil Law for Judiciary Exams  >  Test: Who are Competent to Contract - Judiciary Exams MCQ

Test: Who are Competent to Contract - Judiciary Exams MCQ


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20 Questions MCQ Test Civil Law for Judiciary Exams - Test: Who are Competent to Contract

Test: Who are Competent to Contract for Judiciary Exams 2024 is part of Civil Law for Judiciary Exams preparation. The Test: Who are Competent to Contract questions and answers have been prepared according to the Judiciary Exams exam syllabus.The Test: Who are Competent to Contract MCQs are made for Judiciary Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Who are Competent to Contract below.
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Test: Who are Competent to Contract - Question 1
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What does competency to contract refer to in legal terms?

Detailed Solution for Test: Who are Competent to Contract - Question 1
Competency to contract in legal terms refers to the legal capacity that individuals must possess to enter into a valid contract. This includes being of the age of majority, having soundness of mind, and not being disqualified by law. It is crucial for ensuring that contracts are entered into voluntarily by parties who understand the implications of their agreements.
Test: Who are Competent to Contract - Question 2
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According to the Indian Contract Act, what is the age requirement for individuals to be considered competent to contract?

Detailed Solution for Test: Who are Competent to Contract - Question 2
As per Section 11 of the Indian Contract Act, individuals who have reached 18 years of age are considered competent to contract. This age requirement is based on the assumption that by the age of 18, individuals have attained the necessary maturity and understanding to enter into legally binding contracts.
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Test: Who are Competent to Contract - Question 3
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According to the Indian Contract Act, what is the age at which an individual is considered competent to contract?

Detailed Solution for Test: Who are Competent to Contract - Question 3
As per the Indian Contract Act, an individual who has reached 18 years of age is considered competent to contract. This ensures that parties involved possess the necessary legal capacity to enter into a contract, preventing agreements from being void or unenforceable due to incapacity issues.
Test: Who are Competent to Contract - Question 4
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Who is classified as a minor according to the Indian Majority Act, 1875?
Detailed Solution for Test: Who are Competent to Contract - Question 4
According to the Indian Majority Act, 1875, a minor is defined as an individual under 18 years of age, unless a court-appointed guardian oversees their affairs, in which case they remain a minor until 21 years. Competency to contract is crucial to ensure that minors have the legal capacity to enter into agreements, avoiding issues of void contracts due to incapacity.
Test: Who are Competent to Contract - Question 5
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What legal concept determines that an individual suffering from a mental illness affecting their judgment may not be competent to enter into a contract?
Detailed Solution for Test: Who are Competent to Contract - Question 5
The legal concept that dictates an individual suffering from a mental illness that impairs their judgment may not be considered competent to enter into a contract is referred to as "Soundness of Mind." This principle ensures that individuals entering into contracts possess the mental capacity to understand the terms and implications of the agreement.
Test: Who are Competent to Contract - Question 6
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In the case of Mohiri Bibi v. Dharmodas Ghosh, what ruling did the Privy Council make regarding a minor's agreement?
Detailed Solution for Test: Who are Competent to Contract - Question 6
In the case of Mohiri Bibi v. Dharmodas Ghosh, the Privy Council ruled that a minor's agreement is completely null and void from its inception. This means that any contract entered into by a minor is considered invalid and unenforceable, as a minor lacks the legal capacity to enter into binding agreements.
Test: Who are Competent to Contract - Question 7
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What did the Privy Council ruling in the case of Mohiri Bibi v. Dharmodas Ghosh establish regarding agreements made by minors?
Detailed Solution for Test: Who are Competent to Contract - Question 7
The Privy Council ruling in the case of Mohiri Bibi v. Dharmodas Ghosh decreed that agreements made by minors are completely null and void from their inception. This means that minors lack the capacity to contract or provide any form of consideration in such agreements.
Test: Who are Competent to Contract - Question 8
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Why did the court, in the Mohiri Bibi v. Dharmodas Ghosh case, decide against awarding compensation to the plaintiff?
Detailed Solution for Test: Who are Competent to Contract - Question 8
The court refrained from awarding compensation in this case because it was established that the plaintiff was fully aware of the minor's legal status at the time of entering into the agreement. This awareness of the minor's legal incapacity influenced the court's decision not to grant compensation, as it was deemed justifiable under the circumstances.
Test: Who are Competent to Contract - Question 9
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In contract law, why can estoppel not be invoked against a minor?
Detailed Solution for Test: Who are Competent to Contract - Question 9
Estoppel cannot be invoked against a minor because minors can use their age as a defense to avoid liability in agreements, making the agreement void from the beginning. This legal protection is essential to safeguard minors from being unfairly bound by contracts due to their age and lack of legal capacity to fully understand the implications of their actions.
Test: Who are Competent to Contract - Question 10
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When can a minor be held liable in tort arising out of a contract according to general principles in contract law?
Detailed Solution for Test: Who are Competent to Contract - Question 10
In general, a minor can be held liable in tort arising out of a contract if the tort is closely related to the contract and forms part of the same transaction. This means that if the wrongful act in tort is directly connected to the contractual agreement, the minor may be held responsible for the damages caused. However, if the tort is entirely separate from the contract, merely involving a contract does not release the minor from liability. This nuanced approach ensures a balance between protecting minors and upholding legal responsibilities in contractual relationships.
Test: Who are Competent to Contract - Question 11
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What legal concept relates to the liability of a minor in tort cases closely associated with a contract?
Detailed Solution for Test: Who are Competent to Contract - Question 11
The Doctrine of Restitution pertains to the compensation and benefits received by a minor in legal actions involving contracts. It addresses the court's discretion in requiring a minor to compensate for benefits received when invalidating a document or returning benefits received under a contested contract due to minority status.
Test: Who are Competent to Contract - Question 12
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In what scenario might a minor be found not liable for a tort related to a contract?
Detailed Solution for Test: Who are Competent to Contract - Question 12
A minor may not be held liable for a tort related to a contract if the tort is closely interlinked with the contract and part of the same transaction. Legal cases such as Burnard v. Haggis and Ballet v. Mingay demonstrate instances where minors were found liable for torts associated with contracts, while in cases like Jennings v. Rundall, the minor was not held responsible as the claim was primarily contractual, not tortious.
Test: Who are Competent to Contract - Question 13
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When a contract involving a minor is considered null and void, which of the following reasons could lead to such a determination?
Detailed Solution for Test: Who are Competent to Contract - Question 13
The nullity of a contract involving a minor is primarily due to the minor's legal incapacity to enter into a contract. Minors are considered to lack the full legal capacity to understand the implications of a contract and thus are protected by laws that render such agreements voidable at the minor's discretion. This protection is in place to safeguard minors from potentially exploitative or unfair contractual arrangements that they may not fully comprehend or be equipped to handle.
Test: Who are Competent to Contract - Question 14
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Based on the case of Raj Pani v. Prem Adib in England, why was the contract between the film producer and the minor plaintiff considered null and void?
Detailed Solution for Test: Who are Competent to Contract - Question 14
The contract between the film producer and the minor plaintiff was deemed null and void due to the absence of consideration. In legal terms, consideration refers to something of value exchanged between parties to a contract. In this case, the promise of a minor girl to provide services was deemed insufficient consideration for the producer's promise to pay her a salary. Therefore, the contract was unenforceable due to this lack of consideration, as explained by the court ruling in the case of Raj Pani v. Prem Adib.
Test: Who are Competent to Contract - Question 15
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What was the outcome in the case of Suraj Narayan v. Sukhu Ahir, ILR (1928) 51 All 164, regarding the bond executed by the minor after attaining majority?
Detailed Solution for Test: Who are Competent to Contract - Question 15
In the case of Suraj Narayan v. Sukhu Ahir, ILR (1928) 51 All 164, the court determined that the suit based on the second bond was not maintainable. This decision was reached because the second bond lacked consideration and did not meet the requirements outlined in Section 25(2) of the Indian Contract Act. The absence of proper consideration rendered the second bond unenforceable, highlighting the legal principles surrounding contract validity and the significance of fulfilling contractual obligations under Indian contract law.
Test: Who are Competent to Contract - Question 16
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According to Section 68 of the Indian Contract Act, under what circumstances can individuals who supply necessaries to a minor seek reimbursement?
Detailed Solution for Test: Who are Competent to Contract - Question 16
According to Section 68 of the Indian Contract Act, individuals who supply necessaries to a minor can seek reimbursement under specific conditions. The goods supplied must be necessary for the minor's station in life, and the minor must not already possess an adequate supply of these necessities. This provision ensures that minors receive essential items crucial for their well-being and development, even if they cannot enter into enforceable contracts. This legal mechanism aims to protect minors by allowing suppliers to seek reimbursement for providing necessary goods and services.
Test: Who are Competent to Contract - Question 17
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According to the Indian Contract Act, what criteria must be met for a minor's estate to be held liable for necessaries?
Detailed Solution for Test: Who are Competent to Contract - Question 17
As per the Indian Contract Act, for a minor's estate to be held liable for necessaries, the goods must be reasonably essential for the minor's support considering their social standing. This means that the items provided should be crucial for the minor's existence and well-being, such as food, clothing, shelter, education, and training. It is essential to ensure that the goods supplied are in line with the minor's social status and necessities.
Test: Who are Competent to Contract - Question 18
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According to Section 12 of the Indian Contract Act, what defines a person of sound mind in India when entering into a contract?
Detailed Solution for Test: Who are Competent to Contract - Question 18
In accordance with Section 12 of the Indian Contract Act, a person of sound mind in India is defined as someone who is capable of understanding the contract and making a rational judgment about its implications on their interests at the time of contract formation. This criterion ensures that individuals entering into contracts have the mental capacity to comprehend the terms and consequences of their agreements.
Test: Who are Competent to Contract - Question 19
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What distinguishes the ability to enter into a contract for a person usually of unsound mind according to the Indian Contract Act?
Detailed Solution for Test: Who are Competent to Contract - Question 19
The Indian Contract Act specifies that a person usually of unsound mind can actually enter into contracts during periods of soundness. This provision allows individuals who may experience intermittent periods of lucidity to engage in contractual agreements during those specific periods when they are considered to be of sound mind. It acknowledges that mental capacity can vary over time for some individuals, and contracts made during periods of soundness are legally valid under certain conditions.
Test: Who are Competent to Contract - Question 20
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What does Section 12 of the Indian Contract Act define as a person of sound mind in relation to contract formation?
Detailed Solution for Test: Who are Competent to Contract - Question 20
Section 12 of the Indian Contract Act defines a person of sound mind as someone who is capable of understanding the contract and making rational judgments about its implications on their interests at the time of contract formation. This requirement ensures that individuals entering into contracts have the mental capacity to comprehend the terms and implications of the agreements they are making.
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