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Test Highlights:
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Directions: Read the following passage carefully:
Agreement without consideration is void, unless it is in writing and registered, or it is a promise to compensate for something done, or is a promise to pay a debt barred by limitation.
In India, contractual relationships between two or more parties are mainly dealt with by the Indian Contract Act, 1872, enacted by the British imperial government which exercised control over the country at that time. Section 26 of the Indian Contract Act of 1872 states that every agreement in restraint of marriage, except those in restraint of marriage of minors, is void.
The Contract Act was the first law to be placed in India which expressly made any such agreement, which in its effect would result in restraining the liberty of either of the parties to marry as per their wish, void. The fundamental idea behind this provision was to ensure that the citizens did not lose their right to marry as per their choice, which is an essential part of a civil society having both personal and social significance, due to some contractual obligation entered into at any point of time.
Any agreement between the two parties that debars either or both of them from going to a court of law in case of non-compliance of the contract, is a void agreement. Section 28 of the Indian Contract Act says that any agreement that restricts an aggrieved party from enforcing his rights to approach a relevant court or tribunal in case of a breach of contract, or limits the time within which he may do so, is a void agreement. There are two exceptions to Section 28, i.e. a future dispute or a past dispute can be referred to arbitration and an agreement stating the limit of time as per the Limitation Act, 1963.
An agreement may be uncertain either because the terms in it are ambiguous or vague or because it is incomplete. The general rule is that if the terms of an agreement are vague or indefinite which cannot be ascertained with reasonable certainty of the intention of the parties, then there is no contract enforceable by law.
The Indian Contract Act, 1872 does not define wager or a wagering agreement. It only states that agreements by way of the wager will be void and no action can lie to contracting parties to recover anything or claim performance of the wagering agreements. A wagering agreement has the characteristic of a contingent contract but is not enforceable by Section 30.
[Extracted, with edits and revisions, from Agreements without Consideration, blog by lawtimesjournal]
Q. A coach and a student come to an agreement whereby the coach will pay the student Rs. 5000 if the student wins his national finals and Rs. 10,000 if he is unsuccessful. Decide.
Detailed Solution: Question 1
Directions: Read the following passage carefully:
Agreement without consideration is void, unless it is in writing and registered, or it is a promise to compensate for something done, or is a promise to pay a debt barred by limitation.
In India, contractual relationships between two or more parties are mainly dealt with by the Indian Contract Act, 1872, enacted by the British imperial government which exercised control over the country at that time. Section 26 of the Indian Contract Act of 1872 states that every agreement in restraint of marriage, except those in restraint of marriage of minors, is void.
The Contract Act was the first law to be placed in India which expressly made any such agreement, which in its effect would result in restraining the liberty of either of the parties to marry as per their wish, void. The fundamental idea behind this provision was to ensure that the citizens did not lose their right to marry as per their choice, which is an essential part of a civil society having both personal and social significance, due to some contractual obligation entered into at any point of time.
Any agreement between the two parties that debars either or both of them from going to a court of law in case of non-compliance of the contract, is a void agreement. Section 28 of the Indian Contract Act says that any agreement that restricts an aggrieved party from enforcing his rights to approach a relevant court or tribunal in case of a breach of contract, or limits the time within which he may do so, is a void agreement. There are two exceptions to Section 28, i.e. a future dispute or a past dispute can be referred to arbitration and an agreement stating the limit of time as per the Limitation Act, 1963.
An agreement may be uncertain either because the terms in it are ambiguous or vague or because it is incomplete. The general rule is that if the terms of an agreement are vague or indefinite which cannot be ascertained with reasonable certainty of the intention of the parties, then there is no contract enforceable by law.
The Indian Contract Act, 1872 does not define wager or a wagering agreement. It only states that agreements by way of the wager will be void and no action can lie to contracting parties to recover anything or claim performance of the wagering agreements. A wagering agreement has the characteristic of a contingent contract but is not enforceable by Section 30.
[Extracted, with edits and revisions, from Agreements without Consideration, blog by lawtimesjournal]
Q. A and B entered into a contract for the processing of 200 kg of cotton fiber of the highest quality, which would be used in B's plant to make yarn. The contract stated that in the event of a default, the dispute would be resolved through arbitration rather than going to court. By processing cotton of poorer quality, A made a mistake. B sued, claiming that his legal rights had been violated. Decide.
Detailed Solution: Question 2
Directions: Read the following passage carefully:
Agreement without consideration is void, unless it is in writing and registered, or it is a promise to compensate for something done, or is a promise to pay a debt barred by limitation.
In India, contractual relationships between two or more parties are mainly dealt with by the Indian Contract Act, 1872, enacted by the British imperial government which exercised control over the country at that time. Section 26 of the Indian Contract Act of 1872 states that every agreement in restraint of marriage, except those in restraint of marriage of minors, is void.
The Contract Act was the first law to be placed in India which expressly made any such agreement, which in its effect would result in restraining the liberty of either of the parties to marry as per their wish, void. The fundamental idea behind this provision was to ensure that the citizens did not lose their right to marry as per their choice, which is an essential part of a civil society having both personal and social significance, due to some contractual obligation entered into at any point of time.
Any agreement between the two parties that debars either or both of them from going to a court of law in case of non-compliance of the contract, is a void agreement. Section 28 of the Indian Contract Act says that any agreement that restricts an aggrieved party from enforcing his rights to approach a relevant court or tribunal in case of a breach of contract, or limits the time within which he may do so, is a void agreement. There are two exceptions to Section 28, i.e. a future dispute or a past dispute can be referred to arbitration and an agreement stating the limit of time as per the Limitation Act, 1963.
An agreement may be uncertain either because the terms in it are ambiguous or vague or because it is incomplete. The general rule is that if the terms of an agreement are vague or indefinite which cannot be ascertained with reasonable certainty of the intention of the parties, then there is no contract enforceable by law.
The Indian Contract Act, 1872 does not define wager or a wagering agreement. It only states that agreements by way of the wager will be void and no action can lie to contracting parties to recover anything or claim performance of the wagering agreements. A wagering agreement has the characteristic of a contingent contract but is not enforceable by Section 30.
[Extracted, with edits and revisions, from Agreements without Consideration, blog by lawtimesjournal]
Q. Riya's wallet is located by Amir, who gives it to her. Riya pledges to reward Amir with 500 rupees. Decide.
Detailed Solution: Question 3
Directions: Read the following passage carefully:
Agreement without consideration is void, unless it is in writing and registered, or it is a promise to compensate for something done, or is a promise to pay a debt barred by limitation.
In India, contractual relationships between two or more parties are mainly dealt with by the Indian Contract Act, 1872, enacted by the British imperial government which exercised control over the country at that time. Section 26 of the Indian Contract Act of 1872 states that every agreement in restraint of marriage, except those in restraint of marriage of minors, is void.
The Contract Act was the first law to be placed in India which expressly made any such agreement, which in its effect would result in restraining the liberty of either of the parties to marry as per their wish, void. The fundamental idea behind this provision was to ensure that the citizens did not lose their right to marry as per their choice, which is an essential part of a civil society having both personal and social significance, due to some contractual obligation entered into at any point of time.
Any agreement between the two parties that debars either or both of them from going to a court of law in case of non-compliance of the contract, is a void agreement. Section 28 of the Indian Contract Act says that any agreement that restricts an aggrieved party from enforcing his rights to approach a relevant court or tribunal in case of a breach of contract, or limits the time within which he may do so, is a void agreement. There are two exceptions to Section 28, i.e. a future dispute or a past dispute can be referred to arbitration and an agreement stating the limit of time as per the Limitation Act, 1963.
An agreement may be uncertain either because the terms in it are ambiguous or vague or because it is incomplete. The general rule is that if the terms of an agreement are vague or indefinite which cannot be ascertained with reasonable certainty of the intention of the parties, then there is no contract enforceable by law.
The Indian Contract Act, 1872 does not define wager or a wagering agreement. It only states that agreements by way of the wager will be void and no action can lie to contracting parties to recover anything or claim performance of the wagering agreements. A wagering agreement has the characteristic of a contingent contract but is not enforceable by Section 30.
[Extracted, with edits and revisions, from Agreements without Consideration, blog by lawtimesjournal]
Q. According to Section 26 of the Indian Contract Act of 1872, which of the following statements regarding agreements in restraint of marriage is true?
Detailed Solution: Question 4
Directions: Read the following passage carefully:
Agreement without consideration is void, unless it is in writing and registered, or it is a promise to compensate for something done, or is a promise to pay a debt barred by limitation.
In India, contractual relationships between two or more parties are mainly dealt with by the Indian Contract Act, 1872, enacted by the British imperial government which exercised control over the country at that time. Section 26 of the Indian Contract Act of 1872 states that every agreement in restraint of marriage, except those in restraint of marriage of minors, is void.
The Contract Act was the first law to be placed in India which expressly made any such agreement, which in its effect would result in restraining the liberty of either of the parties to marry as per their wish, void. The fundamental idea behind this provision was to ensure that the citizens did not lose their right to marry as per their choice, which is an essential part of a civil society having both personal and social significance, due to some contractual obligation entered into at any point of time.
Any agreement between the two parties that debars either or both of them from going to a court of law in case of non-compliance of the contract, is a void agreement. Section 28 of the Indian Contract Act says that any agreement that restricts an aggrieved party from enforcing his rights to approach a relevant court or tribunal in case of a breach of contract, or limits the time within which he may do so, is a void agreement. There are two exceptions to Section 28, i.e. a future dispute or a past dispute can be referred to arbitration and an agreement stating the limit of time as per the Limitation Act, 1963.
An agreement may be uncertain either because the terms in it are ambiguous or vague or because it is incomplete. The general rule is that if the terms of an agreement are vague or indefinite which cannot be ascertained with reasonable certainty of the intention of the parties, then there is no contract enforceable by law.
The Indian Contract Act, 1872 does not define wager or a wagering agreement. It only states that agreements by way of the wager will be void and no action can lie to contracting parties to recover anything or claim performance of the wagering agreements. A wagering agreement has the characteristic of a contingent contract but is not enforceable by Section 30.
[Extracted, with edits and revisions, from Agreements without Consideration, blog by lawtimesjournal]
Q. What does Section 28 of the Indian Contract Act state regarding agreements that restrict a party from approaching a court or tribunal in case of a breach of contract?
Detailed Solution: Question 5