CERTIFICATE COURSE ON VALIDITY OF CONTRACTS IN

INDIA

ASSIGNMENT

Name- EESHANI MALHOTRA

Email ID :-eeshanimalhotra48355@gmail.com

Contact no. – 8958115146

Validity of Contracts in India (ASSIGNMENT)

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ONE WORD/ONE LINER QUESTIONS 2 Marks Each
1. When can an unsound mind enter into a Contract?

Answer 1 :- section 12 says when a person is usually of unsound mind but occasionally of sound
mind then he may make a contract when he is of sound mind.

2. Mistake of one party as to the terms of the Contract renders the contract to be Valid, Void
or Voidable?

Answer 2 :- voidable

3. If one minor contracts with another minor to give him Rs.500 if he burns his own house,
what kind of a Contract is this?

Answer 3 :-void

4. The only exception as to a wagering contract being valid in India is?

Answer 4 :-exception for unlawful subscription, contribution for prize, place, or value or amount
of five hundred rupees or upwards to be awarded to be winners of horse race.

5. A made a contract with B to beat up C. Is this contract valid, voidable or void?

Answer 5 :- void

SUBJECTIVE QUESTIONS [Within 100 Words]

5 Marks Each

1. Explain the difference between Fraud and Misrepresentation?

Answer 1 :- Fraud is defined in section 2 (17) of Indian contract act 1872 and misrepresentation
is defined in section 2(18) of the act

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Fraud is deceptive act done intentionally by one party in order to influence the other to enter
intro contract. But misrepresentation is representation of misstatement made innocently.

In fraud there is purpose to deceive a party but it is not so in misrepresentation.

2. Why is restraint of Marriage a ground for invalidity of a Contract?

Answer 2 :-Section 26 of Indian Contract Act , 1872 deals with this agreement. This type of
contract is invalid because we all have freedom to choose to marry or not. Interference with this
right is unlawful.

3. Explain in brief, Derry v. Peak?

Answer 3 :-In this case directors of company issued a prospectus containing a statement that the
company provided carriages which move with animal power and with consent of board of trade
by animal power and they had a right to use steam instead of horses. The plaintiff bought shares
on this statement but the board of trade refused to give consent. The plaintiff bought action of
deceit. It was held the defendants made a careless statement and malafied.

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 4. Give 5 examples of Voidable Contracts.

Answer 4 :- 1) contract through coercion

2) contract through fraud

3) contract through undue influence

4) contract through misrepresentation

5) contract where one party is drunk ,insane.

ANALYTICALQUESTIONS [Within 200 Words]

10 Marks Each

1. Even in today’s era, common people are reluctant to enter into a written contract in their
day to day dealings. What can be done to educate the mass about the importance of
written contracts?
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 Answer 1 :- written contracts have their own importance. They make the expectations of
the parties clear.
 It tells the solution to how the negative problems be solved.
 They are legally enforceable that can be used as safeguard tool.
 It provide security and peace of mind .
 It guarantees confidentiality .
 It serve as an official record of business.
 Prevent misunderstanding from arising.
 Proof of details.

2. If you had the power to remove a provision from the Indian Contract Act 1872 which one
would it be and why?

Answer 2 :- If I had the power to remove a provision then that would be section 11 which talks
about competency. I feel the time has changed now minors have developed a better way of
understanding. They are minor just by their age not by their understanding. Its high time that law
commission of india make such laws more stringent. There is lacuna in this law that minor takes
advantage and major comes under disadvantage.

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