Business Laws
By – Kunal Mandhania Sir
,Chapter Name
Indian Contract Act
, Basics
Offer
Every promise or Set of
Agreement forming consideration
other Sec. 2(e)
Acceptance
Enforceable by law Not enforceable by la
Contract (Commercial Social / Agreement dom
agreement) [Sec. 2h] Religious (Not contr
because there is no int
to create legal relation
,
, Types of contract
Creation Validity Performance English l
1. Expressed 1. Valid
Contract 1. Executed 1. Forma
contract contract
Oral or 2. Void ab contra
initio
written contract/ 2. Executory a) Con
2. Implied void contract of R
agreement
Contract a) Unilateral b) Con
3. Void
Otherwise contract contract und
then sea
express 4. Voidable b) Bilateral
contract
Tacit or contract 2. Simpl
5. Illegal
quasi agreement contra
3. E-Contract 6. Unenforcea
Via Internet ble contract
, Question
State which of the following agreements are valid contract unde
Indian Contract Act, 1872?
(a) A, who owns two cars is selling red car to B. B thinks
purchasing the black car.
(b) A threatened to shoot B if he (B) does not lend him ₹2,00,000 a
agreed to it.
(c) A agrees to sell his house to B against 100 kgs of cocaine (drugs
(d) A ask B if he wants to buy his bike for ₹ 50,000. B agrees to
bike.
(e) Mr. X agrees to write a book with a publisher. But after few da
dies in an accident.
[RTP June 2
, Answer
(a) A, who owns two cars is selling red car to B. B thinks he
purchasing the black car. There is no consensus ad idem and hence n
a valid contract.
(b) A threatened to shoot B if he (B) does not lend him ₹2,00,0
and B agreed to it. Here the agreement is entered into under coerci
and hence not a valid contract.
(c) A agrees to sell his house to B against 100 kgs of cocaine (drug
Such agreement is illegal as the consideration is unlawful.
(d) A ask B if he wants to buy his bike for ₹ 50,000. B agrees to b
bike. It is agreement which is enforceable by law. Hence, it is a va
contract.
(e) Mr. X agrees to write a book with a publisher. But after few da
X dies in an accident. Here the contract becomes void due to t
impossibility of performance of the contract.
, Question
Distinguish between Void
Contract and Voidable
Contract according to the
Indian Contract Act, 1872.
[June 2023 (5 Marks)]
, Answer
The differences between void contract and voidable contract are as follo
S. Basis Void Contract Voidable Contract
No.
1 Meaning A Contract which ceases to be enforceable by law An agreement which is enforceable by law a
becomes void when it ceases to be enforceable. of one or more of the parties thereto, but
option of the other or others, is a voidable con
2 Enforceabilit A void contract cannot beenforced at all. It is enforceable only at the option of aggrieve
y not at the option of the other party.
3 Cause A contract becomes void due to change in law or A contract becomes a voidable contract if the
change in circumstances beyond the contemplation of party was not free.
parties.
4 Performance A void contract cannot beperformed. If the aggrieved party does not, within reaso
of contract exercise his right to avoid the contract, any pa
the other for claiming the performance of the
5 Rights A void contract does not grant any legal remedy to The party whose consent was not free has
any party. rescind the contract within a reasonable
rescinded it becomes a void contract. If
rescindedit becomes a valid contract.
, Question
29. Mr. Y is a devotee and wants to donate
elephant to the temple as a core part of rit
worship. He contacted Mr. X who wanted to sell
elephant. Mr. X contracted with Mr. Y to sell
elephant for ₹ 20 Lakhs. Both were unaware that t
elephant was dead a day before the agreeme
Referring to the provisions of the Indian Contract A
1872, explain whether it is a void, voidable or a va
contract.
[RTP Nov 20
By – Kunal Mandhania Sir
,Chapter Name
Indian Contract Act
, Basics
Offer
Every promise or Set of
Agreement forming consideration
other Sec. 2(e)
Acceptance
Enforceable by law Not enforceable by la
Contract (Commercial Social / Agreement dom
agreement) [Sec. 2h] Religious (Not contr
because there is no int
to create legal relation
,
, Types of contract
Creation Validity Performance English l
1. Expressed 1. Valid
Contract 1. Executed 1. Forma
contract contract
Oral or 2. Void ab contra
initio
written contract/ 2. Executory a) Con
2. Implied void contract of R
agreement
Contract a) Unilateral b) Con
3. Void
Otherwise contract contract und
then sea
express 4. Voidable b) Bilateral
contract
Tacit or contract 2. Simpl
5. Illegal
quasi agreement contra
3. E-Contract 6. Unenforcea
Via Internet ble contract
, Question
State which of the following agreements are valid contract unde
Indian Contract Act, 1872?
(a) A, who owns two cars is selling red car to B. B thinks
purchasing the black car.
(b) A threatened to shoot B if he (B) does not lend him ₹2,00,000 a
agreed to it.
(c) A agrees to sell his house to B against 100 kgs of cocaine (drugs
(d) A ask B if he wants to buy his bike for ₹ 50,000. B agrees to
bike.
(e) Mr. X agrees to write a book with a publisher. But after few da
dies in an accident.
[RTP June 2
, Answer
(a) A, who owns two cars is selling red car to B. B thinks he
purchasing the black car. There is no consensus ad idem and hence n
a valid contract.
(b) A threatened to shoot B if he (B) does not lend him ₹2,00,0
and B agreed to it. Here the agreement is entered into under coerci
and hence not a valid contract.
(c) A agrees to sell his house to B against 100 kgs of cocaine (drug
Such agreement is illegal as the consideration is unlawful.
(d) A ask B if he wants to buy his bike for ₹ 50,000. B agrees to b
bike. It is agreement which is enforceable by law. Hence, it is a va
contract.
(e) Mr. X agrees to write a book with a publisher. But after few da
X dies in an accident. Here the contract becomes void due to t
impossibility of performance of the contract.
, Question
Distinguish between Void
Contract and Voidable
Contract according to the
Indian Contract Act, 1872.
[June 2023 (5 Marks)]
, Answer
The differences between void contract and voidable contract are as follo
S. Basis Void Contract Voidable Contract
No.
1 Meaning A Contract which ceases to be enforceable by law An agreement which is enforceable by law a
becomes void when it ceases to be enforceable. of one or more of the parties thereto, but
option of the other or others, is a voidable con
2 Enforceabilit A void contract cannot beenforced at all. It is enforceable only at the option of aggrieve
y not at the option of the other party.
3 Cause A contract becomes void due to change in law or A contract becomes a voidable contract if the
change in circumstances beyond the contemplation of party was not free.
parties.
4 Performance A void contract cannot beperformed. If the aggrieved party does not, within reaso
of contract exercise his right to avoid the contract, any pa
the other for claiming the performance of the
5 Rights A void contract does not grant any legal remedy to The party whose consent was not free has
any party. rescind the contract within a reasonable
rescinded it becomes a void contract. If
rescindedit becomes a valid contract.
, Question
29. Mr. Y is a devotee and wants to donate
elephant to the temple as a core part of rit
worship. He contacted Mr. X who wanted to sell
elephant. Mr. X contracted with Mr. Y to sell
elephant for ₹ 20 Lakhs. Both were unaware that t
elephant was dead a day before the agreeme
Referring to the provisions of the Indian Contract A
1872, explain whether it is a void, voidable or a va
contract.
[RTP Nov 20
