UPHJS Exam, 2019 (Pre)— 50 One-liners on Indian Contract Act, 1872
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| Sl. | Contents |
| (1) PRELIMINARY | |
| 1.1 | The Preamble of the Indian Contract Act, 1872 (hereinafter to as “the ICA”) is – to define and amend certain parts of the law relating to contracts |
| 1.2 | The ICA came into force on—1st September, 1872 [Section 1] |
| 1.3 | The Indian Contract Act, 1872 consist of total Chapters—XI Chapter |
| 1.4 | The ICA extends to the whole of India except— the State of Jammu and Kashmir [Section 1] |
| 1.5 | Every promise and every set of promises, forming the consideration for each other, is called—Agreement [Section 2(e)] |
| 1.6 | The terms contract has been defined under Section –Section 2(h) |
| 1.7 | An agreement enforceable by law is called—Contract [Section 2(h)] |
| (2) COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS | |
| 2.1 | The communication of a proposal is complete when it comes to the knowledge of the person—to whom it is made [Section 4] |
| 2.2 | A proposes, by letter, to sell a house to B at a certain price. The communication of the proposal is complete when— B receives the letter [Illustration to Section 4] |
| 2.3 | B accepts A‟s proposal by a letter sent by post. The communication of the acceptance is complete, against A and B respectively when— as against A when the letter is post; as against B, when the letter is received by A. [Illustration to Section 4] |
| 2.4 | In order to convert a proposal into a promise, the acceptance must be absolute and unqualified. It is so provided under Section—Section 7 |
| (3) VOIDABLE CONTRACTS AND VOID AGREEMENTS | |
| 3.1 | Which Section of the ICA provides that all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void?—Section 10 |
| 3.2 | Every person is competent to contract who is— of the age of majority according to the law to which he is subject2, and who is of sound mind and is not disqualified from contracting by any law to which he is subject [Section 11] |
| 3.3 | A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it—he is capable of understanding it and of forming a rational judgment as to its effect upon his interests [Section 12] |
| 3.4 | A person who is usually of unsound mind, but occasionally of sound mind, may make a contract—when he is of sound mind [Section 12] |
| 3.5 | A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when—he is of unsound mind [Section 12] |
| 3.6 | True/ False: A patient in a lunatic asylum, who is at intervals of sound mind, may contract during those intervals—True |
| 3.7 | True/ False : A sane man, who is delirious from fever or who is so drunk that he cannot understand the terms of a contract, or form a rational judgment as to its effect on his interests, cannot contract whilst such delirium or drunkenness lasts—True |
| 3.8 | Agreement without consideration is—Void [Section 25] |
| (4) CONTINGENT CONTRACTS | |
| 4.1 | A contract to do or not to do something, if some event, collateral to such contract, does or does not happen is called—Contingent Contract [Section 31] |
| 4.2 | A contracts to pay B Rs. 10,000 if B‟s house is burnt. This is a—Contingent contract [Section 31] |
| 4.3 | Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes—impossible [Section 35]. |
| 4.4 | True/ False: Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made—True [Section 36]. |
| (5) PERFORMANCE OF CONTRACTS | |
| 5.1 | True/ False: The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law—True [Section 37]
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| 5.2 | Whether representative of the parties to contract are bound by the performance of contract?—Yes [As per Section 37, the promises between parties bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract. |
| 5.3 | A promises to deliver goods to B on a certain day on payment of Rs. 1,000. A dies before that day. Whether A‟s representatives are bound to deliver the goods to B—Yes, and and B is bound to pay the Rs. 1,000 to A‟s representatives [Section 37] |
| 5.4 | A promises to paint a picture for B by a certain day, at a certain price. A dies before the day. Whether contract can be enforced—No, the contract cannot be enforced either by A‟s representatives or by B.[Section 37] |
| (6) CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT | |
| 6.1 | Which Chapter of ICA deals with certain relations resembling those created by contract (i.e. quasi contract)—Chapter V |
| 6.2 | Quasi-contracts are based upon the maxim that –“no one should have unjust benefit at the cost of other”. |
| 6.3 | Quasi-contract is a kind of—constrictive contract |
| 6.4 | In which case Lord Mansfield explained in detail the nature of the quasi-contract— Mossage vs. Mc. Ferlan (1760) |
| 6.5 | A supplies B, a lunatic, with necessaries suitable to his condition in life. Here A is— entitled to be reimbursed from B‟s property [Illustration to Section 68] |
| (7) CONSEQUENCES OF BREACH OF CONTRACT | |
| 7.1 | True/ False: Compensation for breach of contract is not to be given for any remote and indirect loss or damage sustained—True [Section 73] |
| 7.2 | A contracts to repair B‟s house in a certain manner, and receives payment in advance. A repairs the house, but not according to contract. Here, B is—entitled to recover from A the cost of making the repairs conform to the contract [Illustration to Section 73] |
| 7.3 | A stipulation for increased interest from the date of default may be a stipulation by way of—Penalty [Explanation I to Section 74] |
| 7.4 | When any person enters into any bail-bond, recognizance or other instrument of the same nature, or, under the provisions of any law, or under the orders of the Central Government or of any State Government, gives any bond for the performance of any public duty or act in which the public are interested, he shall be liable, upon breach of the condition of any such instrument, to pay—the whole sum mentioned therein [Exception to Section 74] |
| (8) SALE OF GOODS | |
| 8.1 | Chapter 8 (Sections 76- 123) relating to sale of goods was originally part of ICA but was repealed by—Indian Sale of Goods Act, 1930 (3 of 1930) |
| (9) INDEMNITY AND GUARANTEE | |
| 9.1 | A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person, is called— “contract of indemnity” [Section 124] |
| 9.2 | A “contract of indemnity” is defined under Section—Section 124 |
| 9.3 | A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of –Indemnity |
| 9.4 | A contract to perform the promise, or discharge the liability, of a third person in case of his default is called a contract of—Guarantee [Section 126] |
| (10) BAILMENT | |
| 10.1 | Any transaction involving the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them is known as –Bailment [Section 148] |
| 10.2 | A lends a horse, which he knows to be vicious, to B. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is—responsible to B for damage sustained [Illustration to Section 150] |
| 10.3 | A gratuitous bailment is terminated by—the death either of the bailor or of the bailee [Section 162] |
| 10.4 | A leaves a cow in the custody of B to be taken care of. The cow has a calf. Whether B is bound to deliver the cow as well as the calf to A?—Yes, B is bound to deliver the calf as well as the cow to A because in terms of Section 163, the bailor entitled to increase or profit from goods bailed. |
| 10.5 | The bailment of goods as security for payment of a debt or performance of a promise is called—Pledge [Section 172]. |
| (11) AGENCY | |
| 11.1 | A person employed to do any act for another, or to represent another in dealings with third persons is called—Agent [Section 182] |
| 11.2 | No consideration is necessary to create an agency. It is so provided under Section—Section 185 |
| 11.3 | Sub-agent is defined under Section—Section 191 |
| A consigns goods to B, a merchant, for sale. B, in due course, employs an auctioneer in good credit to sell the goods of A, and allows the auctioneer to receive the proceeds of the sale. The auctioneer afterwards becomes insolvent without having accounted for the proceeds. In the given situation what is B’s responsibility?—B is not responsible to A for the proceeds [Illustration to Section 195] | |
| (12) PARTNERSHIP | |
| 12.1 | Chapter 11 (Sections 239- 246) relating to partnership was originally part of ICA but was repealed by— Indian Partnership Act, 1932 |
| Prepared by team LegalMines. Typographical error, if any, is inadvertent | |
