Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: andldquo;The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.andrdquo;The law relating to contract defines it as andlsquo;An agreement which is enforceable by law is a Contractandrsquo;. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective andlsquo;lawfulandrsquo; implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- andldquo;consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer?

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Passage - 2

The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”
The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.
Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.
Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.
Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.

Q. Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.

a)
Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.
b)
Kestle will not be liable since six wrappers could not amount to any kind of consideration.
c)
Kestle will not be liable since it was only a promotional offer and not a binding offer.
d)
Kestle will be liable since Ronny had acted on the offer given by it.

Correct answer is option 'A'. Can you explain this answer?

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Passage - 2The law of contract lays down the legal rules relating to p...

The question asks you to apply the idea of the passage to a given situation with the given principle of law. You have to assimilate the inference and look at the facts of the case and evaluate the answer choices.
Correct Answer is (a)
The correct answer is option (a). In this case, Ronny has shown consideration by bringing six wrappers of chocolate bars. It acts as a token even if they are useless and of no value. The wrappers amount to a valid consideration and Kestle Company will be bound by its offer and would have to give the video game to Ronny.
None of the other options sets out views that are consistent with those of the author in the passage above.

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Passage - 2The law of contract lays down the legal rules relating to p...

Understanding the Case
In the scenario involving Ronny and Kestle Company, the principles of contract law come into play. The promotional scheme offered by Kestle constitutes an offer that invites acceptance from consumers.
Consideration in Contracts
- Consideration refers to something of value exchanged between parties in a contract.
- In this case, Kestle proposed that six chocolate wrappers would be exchanged for a video game, indicating a clear offer with consideration involved.
Acceptance and Intention
- Ronny's action of collecting the wrappers and attempting to claim the video game demonstrates acceptance of the offer.
- The promotional nature of the offer does not negate its binding effect, as long as the intention to create a legal relationship can be established.
Company's Liability
- The company cannot escape liability simply because the shopkeeper was unaware of the promotional scheme.
- The essential elements of a contract—offer, acceptance, and consideration—are present in this scenario.
Conclusion
- Given that Kestle made a valid offer, and Ronny accepted it by performing the required action, Kestle is indeed liable for fulfilling the promise made in the promotional scheme.
- Therefore, option 'A' is correct: Kestle will be liable since it has shown consideration by offering a video game in exchange for wrappers.
This situation underscores the importance of clear communication and the binding nature of contractual agreements, even in promotional contexts.

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The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other.There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q. Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.

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Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.A contract made by a person so intoxicated as not to know the consequences of his act is not binding on him if his condition is known to the other party. Jai and Veeru decide to go to a pub to celebrate Jai’s marriage to Basanti. At the bar, both of them drink a lot and Jai gets drunk. While they were on their way back home, Jai agrees to sell his Bike to Veeru for Rs. 5,000. Next day morning, when Jai wakes up, he does not remember anything. However, when Veeru comes in the evening to take the Bike, Jai does not say anything and gives the Bike to Veeru for Rs. 5,000. Sometime later, he files a case on the ground that he was intoxicated at the time of contract.

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Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Where both parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. In the month of June, 2006 Pak Cotton Mills of Lahore asked its supplier Surat Cotton Company to “send 100 Quintals on the Peerless.” Surat Cotton Company replied - “Consignment would be sent by Peerless.” The consignment was sent in September, but as the Cotton Mills was expecting the consignment in July itself, it suffered genuine losses. It was found that there were two ships named Peerless sailing from Surat, one in July and the other in September. Pak Cotton Mills claims compensation for its losses due to delayed delivery from Surat Cotton Company. Will it succeed?

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Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Keeping silence as to facts which can affect the will of a contracting party is not fraud unless it is the duty of the person to speak the facts in the given circumstances. A and B are traders in food grains. B wants to buy a thousand tonnes of wheat from A. A has private information that the prices of wheat will fall heavily next week. He did not tell this to B because he fears B will not enter into the agreement. After making the purchase, B suffers a huge loss the next week, and he comes to know that A, despite knowing the facts of the market, sold him such a huge quantity of wheat. He files a suit against A alleging fraud on his part and prayed to the court that the contract be declared voidable at his option. Decide.

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The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other.There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q. A contract made by a person so intoxicated as not to know the consequences of his act is not binding on him if his condition is known to the other party.Jai and Veeru decide to go to a pub to celebrate Jai’s marriage to Basanti. At the bar, both of them drink a lot and Jai gets drunk. While they were on their way back home, Jai agrees to sell his Bike to Veeru for Rs. 5,000. Next day morning, when Jai wakes up, he does not remember anything. However, when Veeru comes in the evening to take the Bike, Jai does not say anything and gives the Bike to Veeru for Rs. 5,000. Sometime later, he files a case on the ground that he was intoxicated at the time of contract.

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Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer?

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Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer?.

Solutions for Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage - 2The law of contract lays down the legal rules relating to promises: their formation, their performance, and their enforceability. Explaining the object of contract, Sir William Anson observes: “The law of contract is intended to ensure that what a man has led to expect shall come to pass; that what has been promised to him shall be performed.”The law relating to contract defines it as ‘An agreement which is enforceable by law is a Contract’. An agreement is a promise and a promise is an accepted proposal. Thus every agreement is made up of a proposal or offer from one side and its acceptance by the other. There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto.Another important essential of a contract is Intention to create a legal relationship. There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation. Lawful Consideration and competent parties are other important essential ingredients of contract.Free consent is one of the most important essential ingredients of a contract. Section 14 of the Act defined the term free consent as follows- “consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.Contracts play a very important role in the day-to-day life of every person. Contracts or agreements between various parties are framed and validate by the Contract Act. So for the formation of a contract, the above-given conditions must be fulfilled by the parties.Q.Consideration is the value paid for the promise. Consideration must sufficient but not adequate. Kestle, a famous chocolate manufacturer came out with a promotional scheme for improving the sale of its chocolates. According to the scheme, any person would get a video game in exchange of six wrappers of Kestle chocolate bars. When Ronny found out about this offer, he got very excited. He finished six chocolate bars in one hour and went to the shop to exchange it for a video game. The shopkeeper was not aware of the scheme as there was no intimation from the Company. Ronny then filed a case against the Company on the ground of breach of contract and claimed the video game. Kestle Company asserted that there were not bound by the contract. Decide.a)Kestle will be liable since it has shown consideration by offering video game in exchange of wrappers.b)Kestle will not be liable since six wrappers could not amount to any kind of consideration.c)Kestle will not be liable since it was only a promotional offer and not a binding offer.d)Kestle will be liable since Ronny had acted on the offer given by it.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.

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