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FAQs on NCERT Textbook: Law of Contracts - Legal Studies for Class 12 - Humanities/Arts

1. What is a contract under the Indian Contract Act?
Ans. A contract is an agreement enforceable by law, according to the Indian Contract Act. It involves two or more parties who agree to perform or refrain from performing certain actions, with the intention to create legal obligations. The agreement must have all the essential elements of a valid contract, such as offer, acceptance, consideration, competency of parties, free consent, etc.
2. Can a minor enter into a valid contract in India?
Ans. As per the Indian Contract Act, a minor is a person who has not attained the age of majority (18 years). Generally, a minor's contract is void ab initio, meaning it is not enforceable by law. However, there are exceptions to this rule, such as contracts for necessaries and agreements beneficial to the minor, which can be enforced against the minor.
3. What are the remedies available for breach of contract?
Ans. In case of a breach of contract, the injured party has certain remedies available under the Indian Contract Act. These remedies include: - Damages: The party suffering from the breach can claim monetary compensation for the loss suffered due to the breach. - Specific Performance: In certain cases, the court may order the defaulting party to perform the contract as agreed. - Rescission: The innocent party can cancel the contract and seek restitution of any benefits given. - Quantum Meruit: If one party has partially performed the contract, they can claim reasonable compensation for the work done.
4. What is the difference between a void contract and a voidable contract?
Ans. A void contract is one that is not enforceable by law from the beginning. It is considered as if it never existed, and neither party can claim any rights or obligations under it. On the other hand, a voidable contract is initially valid but can be voided at the option of one or more parties due to some legal defect, such as misrepresentation, fraud, coercion, etc. The innocent party has the choice to either affirm or rescind the contract.
5. Can an oral contract be enforceable in India?
Ans. Yes, an oral contract can be enforceable in India, subject to certain conditions. According to the Indian Contract Act, oral contracts are valid and legally enforceable, unless they fall within the ambit of specific laws requiring written agreements, such as contracts for the sale of immovable property, contracts of guarantee, etc. However, it is always advisable to have written contracts to avoid any disputes or difficulties in proving the terms of the agreement.
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