Page 30 - DMGT407Corporate and Business Laws

Unit 1: Laws of the Contract

Express Contract: It is that contract the terms of which are expressly agreed upon (whether by Notes
words spoken or written) at the time of its formation.
General Offer: It is that offer which is made to the public at large.

Implied Contract: It is that contract which is inferred from the acts or conduct of the parties or
the course of dealing between them.
Ownership: It is described as a bundle of rights in rem, having certain characteristics, namely the
right of unspecified duration, and use, and generally being inheritable and transferable.
Specific Offer: It is that offer which is made to a definite person or a group of persons.
Voidable Contract: It is that contract which may be repudiated at the will of one or more of the
parties, but not by others.

1.11 Review Questions

1. Analyse the practical importance of the Indian Contract Act to business persons.

2. “All agreements are not contracts but all contracts are agreements”. Comment.
3. “There are some contracts and documents which are required to be not only in writing and
signed by the parties, but in addition, required to be registered with some competent
authority or the other”. Do you agree? Justify.
4. Suppose A gives a promise to B to give a sum of ` 250/- every month for the tuition of
English. In case, A refuses to give the promised amount, B has no remedy against A. Do
you agree? Justify.
5. “A contract is a contract from the time it is made and not from the time its performance is
due.” Justify.
6. “Every illegal agreement is void but every void agreement may not amount to illegal
agreement.” Justify.
7. Do you agree with the statement: “Ignorance of law is no excuse”? Justify giving the
repercussion which the person may has to face if he is ignorant about the laws.

8. X promises Y to obtain for Y an employment in the public service for a consideration, say
` 10,000. Is the agreement legal? Justify.
9. “A minor’s estate is liable for necessaries of life supplied”. Comment.

10. “Insufficiency of consideration is immaterial but an agreement without consideration is
void”. Do you agree? Justify.
11. Consideration may be present, past or future. Illustrate.

12. “A stranger to a contract cannot maintain a suit but a stranger to consideration can do so”.
Discuss the importance of this statement with reference to the Indian Contract Act, 1857.
13. The term consideration is used in the sense of ‘quid pro quo’ or ‘something in return’. What
does this ‘something’ relates to? Illustrate your answer.
14. Ram’s son absconded from the home. He sent his servant in search of the boy. When the
servant has left ram, by handbills offered to pay ` 500 to anybody discovering the boy.
The servant cam to know of this offer only when he had already traced the missing child.
He however brought an action to recover the reward. Will he succeed in his attempt?
Justify.

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