Contracts are essential for establishing the rights and obligations of parties involved in a transaction. True or False?

True

A contract, according to the Indian Contract Act, 1872, is an agreement that can be ___ by law.

Enforced

True or False: All agreements are contracts.

False. Not all agreements are contracts; they must meet specific criteria such as lawful consideration and free consent.

The case Balfour v. Balfour established that agreements without intention to create a legal relationship are ___ binding.

Not legally

True or False: In contract law, consideration refers to the legal capacity of parties to enter into a contract.

False. Consideration refers to 'something in return' for the offer, not the legal capacity of parties.

What does the term 'general offer' refer to in contract law?

A general offer is an offer made to the public at large, where acceptance does not need to be communicated directly.

Fill in the blank: For a contract to be valid, both the offer and acceptance must be ___ and ___ .

Clear and certain

True or False: An offer can be revoked after acceptance has occurred.

False. An offer can be revoked before acceptance, but not after.

An agreement without consideration is generally ___ and ___ by law.

Void and unenforceable

True or False: A promise made out of natural love and affection can be valid without consideration if it is in writing and registered.

True
A promise made out of natural love and affection can be valid without consideration if it is in writing and registered, as per Section 25(1) of the Indian Contract Act, 1872.

What is required for mutual consideration in a contract?

Each party must give and take something of value.

True or False: A minor is legally competent to enter into any contract under Indian law.

False. A minor is not legally competent to enter into a contract as they are below 18 years of age.

The Indian Majority Act sets the age of majority at ___ years.

18 years.

A contract becomes voidable when ___ is not freely given.

Consent