Voidable Contracts And Void Agreements MCQ Quiz in मराठी - Objective Question with Answer for Voidable Contracts And Void Agreements - मोफत PDF डाउनलोड करा

Explanation - The contract cannot be rendered void if it is without consideration.

(Section 25)

The exceptions are:

When the contract is in writing and registered

• When it is for compensating someone for his voluntary services for the promisor in the past.
• When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation.
• An agreement made between two individuals who are directly related to each other through blood or are near relations of one another, where the deal is in writing and has been registered formally, will be enforceable under law

The correct answer is Valid Contract

Key Points INDIAN CONTRACT ACT 1872

Section 10 of Indian Contract Act 1872:

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 11 of Indian Contract Act 1872:

Every person is competent to contract who is of the age of majority according to the law to which he is subject1, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.

Important Points Section 10 of Indian Contract Act 1872 says that the parties should enter into contract with free consent.  

• In the above question, without any pressure, B takes a joint undertaking for consent, then it is a valid contract.

Section 11 of Indian Contract Act 1872 says a minor who has not obtained the age of 18, cannot enter into contract. Any contract with minor is void.

• In the above question, at the time of giving consent to "B", 'A' is not a minor. At the time of giving consent, he has obtained majority. Hence, this contract is valid.

 ​'A' Minor takes a loan of Rs. 4,000/- from 'B' during his minority, on attaining majority, he applies to 'B' for a further loan of Rs. 3,000/- 'B' gives this loan and obtains from 'A' a combined promissory note of Rs. 7,000/- for the two loans. This is considered as Valid contract.

The correct answer is Valid Contract

Key Points INDIAN CONTRACT ACT 1872

Section 10 of Indian Contract Act 1872:

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 11 of Indian Contract Act 1872:

Every person is competent to contract who is of the age of majority according to the law to which he is subject1, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.

Important Points Section 10 of Indian Contract Act 1872 says that the parties should enter into contract with free consent.  

• In the above question, without any pressure, B takes a joint undertaking for consent, then it is a valid contract.

Section 11 of Indian Contract Act 1872 says a minor who has not obtained the age of 18, cannot enter into contract. Any contract with minor is void.

• In the above question, at the time of giving consent to "B", 'A' is not a minor. At the time of giving consent, he has obtained majority. Hence, this contract is valid.

 ​'A' Minor takes a loan of Rs. 4,000/- from 'B' during his minority, on attaining majority, he applies to 'B' for a further loan of Rs. 3,000/- 'B' gives this loan and obtains from 'A' a combined promissory note of Rs. 7,000/- for the two loans. This is considered as Valid contract.

The correct answer is option 3.Key Points

• If a promise is made with the intention of fulfilling it, it shall never be considered Fraud. 
• Section 17 of Indian Contract Act 1872 deals with “Fraud” defined.
• “Fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:
  • (1) The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
  • (2) The active concealment of a fact by one having knowledge or belief of the fact;
  • (3) A promise made without any intention of performing it;
  • (4) Any other act fitted to deceive;
  • (5) Any such act or omission as the law specially declares to be fraudulent.
• Explanation.—Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.

The correct answer is A-2, B-1, C-4, D-3

Key PointsSection 18 of the Indian Contract Act, 1872 defines "Misrepresentation". It states that : 
"Misrepresentation" means and includes—
(1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;
(2) any breach of duty which, without an intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him;
(3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.

Section 17 of the Indian Contract Act, 1872 defines "Fraud'". It states that :
'Fraud' means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent', with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:—(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(2) the active concealment of a fact by one having knowledge or belief of the fact;
(3) a promise made without any intention of performing it;
(4) any other act fitted to deceive;
(5) any such act or omission as the law specially declares to be fraudulent.
Explanation.—
Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speaks, or unless his silence, is, in itself, equivalent to speech.

Section 16 of the Indian Contract Act, 1872 defines "Undue influence". It states that :  
(1) A contract is said to be induced by 'undue influence' where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.
(2) In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another—
(a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or
(b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress.
(3) Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall be upon the person in a position to dominate the will of the other.
Nothing in the sub-section shall affect the provisions of section 111 of the Indian Evidence Act, 1872 (1 of 1872).

Section 14 of the Indian Contract Act, 1872 defines "Free Consent". It states that : 
Consent is said to be free when it is not caused by—
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16, or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21 and 22. Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.

The correct answer is Void

Key Points A, B and C enter into an agreement for the division among them of gains acquired or to be acquired, by them by fraud. The agreement is void, as its object is unlawful.

Section 23 of the Indian Contract Act, 1872 relates to what consideration and objects are lawful, and what not.

It states that : The consideration or object of an agreement is lawful, unless—

• it is forbidden by law; or
• is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or
• involves or implies, injury to the person or property of another; or
• the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

The correct answer is Property

Key Points Under the Indian Contract Act, 1872, for a contract to be valid, certain essential elements, or ingredients, must be present. These elements ensure that the contract is legally enforceable. The key ingredients necessary for a contract under the Indian Contract Act, 1872, are as follows:

1. Offer and Acceptance (Proposal and Acceptance): There must be a valid offer made by one party (the offeror) to another party (the offeree), which is accepted by the offeree. The acceptance must be absolute and unconditional, mirroring the terms of the offer. This exchange of offer and acceptance is also known as a "meeting of minds" or consensus ad idem.

2. Lawful Consideration: Consideration refers to something of value exchanged between the parties as part of the contract. It can be in the form of money, goods, services, or even a promise to do or refrain from doing something. For a contract to be valid, there must be lawful consideration exchanged between the parties. Consideration is essential to make the contract legally enforceable.

3. Competent Parties (Parties Capable of Contracting): The parties entering into the contract must be competent to contract. This means they must be of sound mind, of legal age (not minors), and not disqualified by law from entering into contracts. Parties lacking competence, such as minors or individuals of unsound mind, cannot form a valid contract under the law.

4. Free Consent: Consent refers to the parties' agreement to enter into the contract without any undue influence, coercion, fraud, misrepresentation, or mistake. For a contract to be valid, the consent of both parties must be freely given and not obtained through any improper means.

5. Lawful Object: The object, or purpose, of the contract must be lawful. It should not involve any illegal activities or activities prohibited by law. Contracts with unlawful objects are void ab initio (from the beginning) and are not enforceable by law.

6. Certainty and Possibility of Performance: The terms of the contract must be clear and certain so that the parties understand their rights and obligations. Additionally, the performance of the contract must be possible and not dependent on uncertain events or impossible conditions.

These essential ingredients are fundamental to the validity and enforceability of contracts under the Indian Contract Act, 1872. If any of these elements are missing or defective, the contract may be void or voidable, and the parties may not be legally bound by its terms.

The correct answer is option 3.Key Points

• Section 27 of Indian Contract Act 1872 deals with agreement in restraint of trade, void.
• Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
• Exception 1.—Saving of agreement not to carry on business of which good-will is sold.
• One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.

Additional Information

• ​ Exception 2 and 3 of section 26 repealed by Act 9 of 1932, s. 73 and the Second Schedule.

The correct option is Three.

Key Points

• Misrepresentation:- 
• Section 18 of the Indian Contract Act, misrepresent misrepresentation into three types– 
  1. When a statement of fact is made which is false but is believed to be true.
  2. When the person making the false statement performs a breach of a duty, and by doing so gains an unjust advantage even though such was not the intention of the party.
  3. When one contracting party behaves innocently it leads the other party to commit mistakes about the treatments of the contract. 
• The common point between the three types is that misrepresentation is understood to be an innocent mistake made without the intention to do so.
• The burden of proof lies on the party alleging misrepresentation to avoid the contract to prove that misrepresentation was used to obtain consent. 
• The consent is obtained through misrepresentation, and it becomes voidable at the option of the aggrieved party.
• Illustration:
  • Deepak said that his computer was in good condition and Ankit bought the computer from him because of the trust he had in Deepak. After the computer did not work properly Ankit thought she was misled but Deepak believed that his computer was in good condition and had no intent to cheat.

The correct answer is option 4.Key Points

• Section 17 of Indian Contract Act 1872 deals with “Fraud” defined.
• “Fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:—
  • The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
  • The active concealment of a fact by one having knowledge or belief of the fact;
  • A promise made without any intention of performing it;
  • Any other act fitted to deceive;
  • Any such act or omission as the law specially declares to be fraudulent.
• Explanation.—Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.