True or False: Free consent is essential for a valid contract.

True

What are the essential elements required for a valid contract?

Essential elements of a valid contract.

• Offer and acceptance needed.

• Intention to create obligations.

• Lawful consideration must exist.

Fill in the blank: A unilateral offer is a promise in exchange for ___ .

An act

List the vitiating factors that affect free consent.

Coercion, undue influence, fraud, misrepresentation, and mistake.

True or False: A voidable contract is valid until the aggrieved party chooses to void it.

True

What does the doctrine of privity of contract state?

Only parties to a contract can sue or be sued under that contract.

Fill in the blank: Contingent contracts depend on the occurrence of an ___ event.

Uncertain

What is the significance of Section 73 of the Indian Contract Act, 1872 in relation to breach of contract?

It allows the aggrieved party to claim damages for losses that are a direct and natural result of the breach.

What remedies are available to an aggrieved party in case of breach of contract?

Damages, specific performance, injunction, and restitution.

How does the Indian Contract Act, 1872 define consideration?

Something given in return for a promise, which must be real and lawful.

What is the key distinction between liquidated damages and penalties in Indian law?

Liquidated damages are a genuine pre-estimate of loss, whereas penalties are disproportionate sums stipulated to deter breach.

Fill in the blank: A contract is discharged by performance when both parties fulfill their ___ as per the terms.

Obligations