Test: Law of Contract - 2 - CUET Humanities MCQ

Following are the requirements for an acceptance:

• Must necessarily be by the person to whom the offer was made
• Must be in the form prescribed by the offeror
• Must be a conscious response to the offer
• Must be unqualified (It must be a complete and unequivocal assent to every element of the offer)

The display of articles in a showroom, indicating their prices, amounts to invitation to an offer. The purpose of displaying the articles is to invite people to make an offer. An invitation to offer is not an offer but an indication of a person's willingness to negotiate a contract.

Explanation to Section 17 of the Indian Contract Act clearly states that mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, is, in itself, equivalent to speech.
Thus, option 3 is the answer.

Consideration is a benefit to each party that has entered into a contract. A nudum pactum may be in verbal or written form. These agreements have no legal action, since they are naked contracts, i.e. without consideration. This means that the agreements do not fall within the specific categories of agreements that can provoke legal action. However, an agreement may create a modification of or exception to an obligation already in effect.

In the given situation, Robert has misrepresented the mileage of the car to induce Daniel into buying the car. Thus, the contract is voidable at the option of Daniel due to misrepresentation of Robert. Section 18 of the Indian Contract Act, 1872 deals with this situation. The valid contracts are all those contracts when all parties agree to the agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged, such as cash, services or goods (or a promise to exchange such an item) for something else of value.

The agreement with a minor during his period of minority is void ab initio. Also, a promise by a minor to bind himself, on a contract entered during his minority, on attaining majority does not hold good as a minor's agreement cannot be ratified by him on attaining majority.
Therefore, a person aged 17 years and 11 months who made an agreement to take a loan from some other person and promises to bind himself on attaining the age of 18 years is void ab initio.
Hence, option 3 is correct.

In the present case, the contract is void as the consideration of the same i.e. kidnapping of child is unlawful. No obligations arise out of a void contract. Section 24 of the Indian Contract Act, 1872 states that a contract, whose object or consideration is unlawful, is void. The valid contracts are all those contracts when all parties must be in agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged - such as cash, services or goods (or a promise to exchange such an item) - for something else of value.

Novation means substitution of new contract in place of an old one.
Alteration means changing one or more terms of the contract.

Fiduciary relationship is a relationship in which one party places in special trust, confidence, and reliance and is influenced by another who has a fiduciary duty to act for the benefit of the party.
A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.

Promise can be made for the past consideration, present consideration and future consideration.

A void agreement implies an agreement that cannot be enforceable by law, and it is void as it lacks enforceability and impossibility of performance. Void agreements are void ab-initio, thus, no provision under the Indian Contract Act 1872 can ever enforce a void agreement as under the act, an agreement becomes enforceable only when it fulfills all the essential conditions for a valid contract.

Section 38 of the Contract Act, 1872, deals with the effect of refusal to accept offer of performance. It says that where a promisor has made an offer of performance to the promisee, and the offer has not been accepted, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract.

'C' was dead at the time when the contract was made. The contract cannot be formed and therefore it is void ab initio. The term 'void ab initio' means to be treated as invalid from the outset.

As the insolvent or dead persons cannot continue the contract, the contract is discharged due to impossibility of performance.

Option (1) is incorrect: It is not valid.
Option (2) is incorrect: An agreement is not voidable, it is completely void.
Option (3) is correct: Under Section 24 of the Indian Contract Act, 1872, if any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.
Option (4) is incorrect: The agreement is not illegal, but void.