Facts that Matter: Contract Law | Legal Reasoning for CLAT PDF Download

1. Introduction to Contract Law

 Fact 1: Which section of the Indian Contract Act, 1872, provides the definition of a contract? 
 Ans:  Section 2(h)

 Fact 2: What does Section 2(h) of the Indian Contract Act, 1872, define a contract as? 
 Ans:  An agreement enforceable by law

 Fact 3: Which act governs the law of contracts in India? 
 Ans:  Indian Contract Act, 1872

 Fact 4: What is the purpose of the Indian Contract Act, 1872? 
 Ans:  To regulate agreements creating legally binding obligations between parties

 Fact 5: What type of agreements does the Indian Contract Act, 1872, focus on regulating? 
 Ans:  Agreements creating legally binding obligations

2. Essentials of a Valid Contract (Section 10)

 Fact 1: Which section of the Indian Contract Act, 1872, specifies the essentials of a valid contract? 
 Ans:  Section 10

 Fact 2: Under which sections of the Indian Contract Act, 1872, are a lawful offer and acceptance defined? 
 Ans:  Sections 2(a) and 2(b)

 Fact 3: Under which section of the Indian Contract Act, 1872, is lawful consideration defined? 
 Ans:  Section 2(d)

 Fact 4: Under which section are parties required to be of the age of majority, sound mind, and not disqualified by law to be competent to contract? 
 Ans:  Section 11

 Fact 5: Under which sections of the Indian Contract Act, 1872, is free consent defined? 
 Ans:  Sections 13-22

3. Key Concepts

 Fact 1: Under which section of the Indian Contract Act, 1872, is an offer defined as a proposal? 
 Ans:  Section 2(a)

 Fact 2: What are the three requirements for a valid offer under the Indian Contract Act, 1872? 
 Ans:  Must be definite, communicated, and capable of acceptance

 Fact 3: What are two examples of an invitation to offer? 
 Ans:  Price tags and advertisements

 Fact 4: Under which section of the Indian Contract Act, 1872, is acceptance defined as an absolute and unqualified agreement? 
 Ans:  Section 2(b)

 Fact 5: Under which section of the Indian Contract Act, 1872, is an agreement without consideration considered void, except for specific exceptions? 
 Ans:  Section 25

4. Types of Contracts

 Fact 1: Under which section of the Indian Contract Act, 1872, are express and implied contracts defined? 
 Ans:  Section 9

 Fact 2: What type of contract is described as fully performed? 
 Ans:  Executed contract

 Fact 3: What type of contract involves a one-sided obligation, such as a reward offer? 
 Ans:  Unilateral contract

 Fact 4: Under which section of the Indian Contract Act, 1872, are contingent contracts defined? 
 Ans:  Section 31

 Fact 5: What type of contract involves mutual obligations between parties? 
 Ans:  Bilateral contract

5. Vitiating Factors (Invalidating Consent)

 Fact 1: Under which section of the Indian Contract Act, 1872, is coercion defined as committing or threatening an act forbidden by the IPC? 
 Ans:  Section 15

 Fact 2: Under which section of the Indian Contract Act, 1872, is undue influence defined? 
 Ans:  Section 16

 Fact 3: Under which section of the Indian Contract Act, 1872, is fraud defined as intentional misrepresentation? 
 Ans:  Section 17

 Fact 4: Under which section of the Indian Contract Act, 1872, is misrepresentation defined as an innocent or negligent false statement? 
 Ans:  Section 18

 Fact 5: Under which sections of the Indian Contract Act, 1872, are mutual and unilateral mistakes addressed? 
 Ans:  Sections 20-22

6. Void and Illegal Agreements

 Fact 1: Under which sections of the Indian Contract Act, 1872, are void agreements addressed? 
 Ans:  Sections 24-30

 Fact 2: What is one example of a void agreement under the Indian Contract Act, 1872? 
 Ans:  Agreements without lawful consideration or object

 Fact 3: What is another example of a void agreement under Sections 24-30 of the Indian Contract Act, 1872? 
 Ans:  Agreements in restraint of marriage

 Fact 4: What type of agreements are considered uncertain under the Indian Contract Act, 1872? 
 Ans:  Uncertain or wagering agreements

 Fact 5: What is an example of an illegal agreement under the Indian Contract Act, 1872? 
 Ans:  Contracts to commit a crime

7. Performance and Discharge of Contracts

 Fact 1: Under which sections of the Indian Contract Act, 1872, is the performance of contracts? 
 Ans:  Sections 37-55

 Fact 2: What is one method of discharging a contract under the Indian Contract Act, 1872? 
 Ans:  By performance

 Fact 3: Under which section of the Indian Contract Act, 1872, is impossibility of performance? 
 Ans:  Section 56

 Fact 4: What is one example of discharge by operation of law under the Indian Contract Act, 1872? 
 Ans:  Insolvency

 Fact 5: What is another example of discharge by operation of law under the Indian Contract Act, 1872? 
 Ans:  Death

8. Breach and Remedies (Sections 73-75)

 Fact 1: Under which sections of the Indian Contract Act, 1872, are breach and remedies addressed? 
 Ans:  Sections 73-75

 Fact 2: Under which section of the Indian Contract Act, 1872, are damages for breach of contract provided? 
 Ans:  Section 73

 Fact 3: What type of damages are described as direct and natural consequences under the Indian Contract Act, 1872? 
 Ans:  Ordinary damages

 Fact 4: What type of damages are awarded when there is no actual loss under the Indian Contract Act, 1872? 
 Ans:  Nominal damages

 Fact 5: What is an example of a contract where specific performance might be ordered under the Indian Contract Act, 1872? 
 Ans:  Property contracts

9. Quasi-Contracts (Sections 68-72)

 Fact 1: Under which sections of the Indian Contract Act, 1872, are quasi-contracts covered? 
 Ans:  Sections 68-72

 Fact 2: What is the purpose of quasi-contracts under the Indian Contract Act, 1872? 
 Ans:  To prevent unjust enrichment

 Fact 3: Under which section of the Indian Contract Act, 1872, is the supply of necessaries to a minor considered a quasi-contract? 
 Ans:  Section 68

 Fact 4: Under which section of the Indian Contract Act, 1872, is payment by an interested person considered a quasi-contract? 
 Ans:  Section 69

 Fact 5: Under which section of the Indian Contract Act, 1872, is the finder of goods considered a quasi-contract? 
 Ans:  Section 71

10. Key Legal Maxims

 Fact 1: What is the Latin term for the maxim meaning "Agreements must be honored"? 
 Ans:  Pacta Sunt Servanda

 Fact 2: What is the Latin term for the maxim meaning "No one can give what they do not have"? 
 Ans:  Nemo Dat Quod Non Habet

 Fact 3: What is the Latin term for the maxim meaning "No action arises from an illegal cause"? 
 Ans:  Ex Turpi Causa Non Oritur Actio

 Fact 4: Which legal maxim means "Agreements must be honored"? 
 Ans:  Pacta Sunt Servanda

 Fact 5: Which legal maxim means "No action arises from an illegal cause"? 
 Ans:  Ex Turpi Causa Non Oritur Actio

11. Landmark Case Laws

 Fact 1: In which year was the case Balfour v. Balfour decided? 
 Ans:  1919

 Fact 2: In which year was the case Mohori Bibee v. Dharmodas Ghose decided? 
 Ans:  1903

 Fact 3: In which year was the case Hadley v. Baxendale decided? 
 Ans:  1854

 Fact 4: In which year was the case Carlill v. Carbolic Smoke Ball Co. decided? 
 Ans:  1893

 Fact 5: Which case established that a minor’s contract is void? 
 Ans:  Mohori Bibee v. Dharmodas Ghose (1903)