Law of Contract - Chapter 1: Important Questions & Answers
1. What is a contract under the Indian Contract Act, 1872?
A: A contract is an agreement enforceable by law (Sec. 2(h)). It must fulfill the conditions of Section 10.
2. What is an agreement? How is it different from a contract?
A: Agreement = Offer + Acceptance (Sec. 2(e)). Contract = Agreement + Legal enforceability.
3. State the essentials of a valid contract.
A: Offer and acceptance, lawful consideration, legal relationship, capacity, free consent, lawful object,
certainty, and possibility of performance.
4. Explain the difference between void, voidable, and illegal contracts.
A: Void - not enforceable, Voidable - enforceable at the option of one party, Illegal - forbidden by law.
5. What is the importance of intention to create legal relations?
A: Legal intent distinguishes contracts from social/domestic agreements. No contract without intent.
6. Explain the terms express, implied, and quasi contracts.
A: Express - stated clearly, Implied - inferred from conduct, Quasi - created by law to prevent unjust gain.
7. Distinguish between executed and executory contracts.
A: Executed - fully performed, Executory - obligations yet to be performed.
8. What does "All contracts are agreements, but not all agreements are contracts" mean?
A: Only agreements that are legally enforceable become contracts.
9. What is the difference between bilateral and unilateral contracts?
A: Bilateral - mutual obligations, Unilateral - one-sided promise accepted by performance.
10. Classify contracts based on enforceability.
A: Valid, Void, Voidable, Illegal, Unenforceable.
1. What is a contract under the Indian Contract Act, 1872?
A: A contract is an agreement enforceable by law (Sec. 2(h)). It must fulfill the conditions of Section 10.
2. What is an agreement? How is it different from a contract?
A: Agreement = Offer + Acceptance (Sec. 2(e)). Contract = Agreement + Legal enforceability.
3. State the essentials of a valid contract.
A: Offer and acceptance, lawful consideration, legal relationship, capacity, free consent, lawful object,
certainty, and possibility of performance.
4. Explain the difference between void, voidable, and illegal contracts.
A: Void - not enforceable, Voidable - enforceable at the option of one party, Illegal - forbidden by law.
5. What is the importance of intention to create legal relations?
A: Legal intent distinguishes contracts from social/domestic agreements. No contract without intent.
6. Explain the terms express, implied, and quasi contracts.
A: Express - stated clearly, Implied - inferred from conduct, Quasi - created by law to prevent unjust gain.
7. Distinguish between executed and executory contracts.
A: Executed - fully performed, Executory - obligations yet to be performed.
8. What does "All contracts are agreements, but not all agreements are contracts" mean?
A: Only agreements that are legally enforceable become contracts.
9. What is the difference between bilateral and unilateral contracts?
A: Bilateral - mutual obligations, Unilateral - one-sided promise accepted by performance.
10. Classify contracts based on enforceability.
A: Valid, Void, Voidable, Illegal, Unenforceable.
