Contract-I One Liner Notes

THE INDIAN CONTRACT ACT, 1872

CHAPTER I
OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS
QUESTION	ANSWER
When the Indian Contract Act, 1872, came into force?	1st September, 1872
What is the Act No. of the Indian Contract Act, 1872?	ACT NO. 9 OF 1872
What the Preamble of the Indian Contract Act, 1872 states?	to define and amend certain parts of the law relating to contracts
Originally, the Indian Contract Act, 1872, consisted of?	Three parts – general principles, sale of goods, and partnership
Which parts of the original Indian Contract Act, 1872, have been repealed?	Contracts relating to sale of goods and partnership
The Indian Contract Act, 1872, extends to?	Whole of India
What is correct about the Indian Contract Act?	It is a general law of contracts. (The Act governs general principles of the law of contracts; it is not exhaustive of all contractual relations (e.g., employment contracts, statutory contracts).
The Indian Contract Act, 1872, is based on?	English common law principles with suitable modifications.
The Indian Contract Act is a part of which legislative category?	It is a part of civil law, specifically dealing with obligations arising out of agreements.
Which provision deal with “Interpretation-clause”?	Sec.2
Which provision deal with the term “Proposal”?	Sec.2(a)
Under Section 2(a) of the Indian Contract Act, 1872, how the term 'proposal' is defined?	A willingness to do or abstain from doing anything
What is an essential element of a proposal under Section 2(a)?	Willingness must be made with a view to obtaining the assent of the other
In which case was it held that an offer must be distinguished from an invitation to treat?	In Harvey v. Facey, the court held that a mere statement of the lowest price is not an offer.
Which case is a leading authority on general offer under Section 2(a)?	Carlill v. Carbolic Smoke Ball Co. (a general offer to the public is valid if acted upon.)
What are the examples of a valid offer under Section 2(a)?	Offering a reward to the public through a newspaper Expressing willingness to sell a car to a specific person for ₹5 lakhs Sending a written proposal to an individual
Whether Display of goods with price tags in a shop window is a valid offer under Section 2(a)?	No (Display of goods is an invitation to offer, not a proposal)
Under Section 2(a), a proposal can be made?	By words or conduct
When A proposal to do or abstain from doing anything becomes effective only?	It is communicated to the acceptor
What “With a view to obtain the assent of that other” in Section 2(a) indicates?	An intention to create legal relations
Which provision deal with the term “Promise”?	Sec.2(b)
What is the legal status of a proposal when it is accepted?	It becomes a promise
As per Section 2(b) of the Indian Contract Act, 1872, what is necessary for a proposal to convert into a promise?	Assent by the promisee
A proposal is said to be accepted when the person to whom it is made?	Signifies his assent thereto
If a person signifies assent without knowledge of the proposal, is it valid under Section 2(b)?	No
In the case of Harbhajan Lal v. Harcharan Lal, what principle related to Section 2(b) was upheld?	Acceptance by performance
The statement "A proposal, when accepted, becomes a promise" signifies which essential element of a valid contract?	Consensus ad idem
Which provision deal with the term “promisor”, and “promisee”?	Sec.2(c)
Under Section 2(c) of the Indian Contract Act, 1872, who is termed as the "promisor"?	The person making the proposal
Who is the "promisee" under Section 2(c)?	The person who accepts the proposal
When in a valid contract, the relationship of promisor and promisee arises?	Proposal is accepted
Which provision deal with the term “consideration”?	Sec.2(d)
What is essential for an act to be considered as “consideration” under Section 2(d) of the Indian Contract Act, 1872?	It must be at the desire of the promisor
In what case was it held that consideration may move from the promisee or any other person?	Chinnaya v. Ramayya (1882)
What are the types of Consideration under Indian law?	consideration may be past, present, or future.
In Indian law, a stranger to consideration can sue, but a stranger to the contract?	Dunlop Pneumatic Tyre Co. v. Selfridge & Co. — Stranger to contract cannot sue.
What is a valid example of "past consideration"?	A promises to pay B for services B rendered last week at A’s desire
A does something voluntarily for B. Later, B promises to pay A ₹1,000. This promise is?	Not enforceable as consideration was not at the desire of the promisor. (Durga Prasad v. Baldeo (1879))
What is the effect of absence of consideration under a contract?	the contract becomes void (Subject to exceptions under Section 25)
Which provision deal with the term “agreement”?	Sec.2(e)
When Under Section 2(e) of the Indian Contract Act, 1872, an agreement is formed?	Every promise and every set of promises form the consideration for each other
What best defines an agreement under Section 2(e) of the Indian Contract Act, 1872?	Mutual exchange of promises constituting consideration
What is the correct sequence of formation of a valid agreement?	Offer → Acceptance → Mutual Consideration → Agreement
How an agreement under Section 2(e) is distinguished from contract?	Agreement may or may not be legally enforceable
Which provision deal with “reciprocal promises”?	Sec.2(f)
Under Section 2(f) of the Indian Contract Act, 1872, what are reciprocal promises?	Promises which form the consideration or part of the consideration for each other
What best illustrates reciprocal promises under Section 2(f)?	A agrees to sell his house to B, and B agrees to pay ₹10 lakhs.
What Reciprocal promises involves?	Mutual obligations where each party's promise forms consideration for the other
Under the ICA, when reciprocal promises are to be performed simultaneously?	Both parties must be ready and willing to perform
If one party to reciprocal promises prevents the other from performing his promise, the contract?	Is voidable at the option of the party so prevented
Which provision deal with the term “"void agreement"?	Sec.2(g)
According to Section 2(g) of the Indian Contract Act, 1872, a "void agreement" means?	An agreement not enforceable by law
When a void agreement is void?	Ab initio (from the beginning)
What is an example of a void agreement?	Agreement with a minor
Which case law is associated with void agreements involving minors?	Mohori Bibee v. Dharmodas Ghose (1903)
Which provision deal with the term "Contract"?	Sec.2(h)
According to Section 2(h) of the Indian Contract Act, 1872, an agreement enforceable by law?	Contract
Which combinations results in a contract under Section 2(h) of the Indian Contract Act, 1872?	Offer + Acceptance + Consideration + Enforceability by law
In which of the following cases was it held that absence of intention to create legal obligation makes the agreement non-contractual?	Balfour v. Balfour (1919)
Which provision deal with the term “voidable contract”?	Sec.2(i)
What defines a "voidable contract" under Section 2(i) of the Indian Contract Act, 1872?	A contract enforceable at the option of one or more parties, but not the others
What happen in a voidable contract?	One party has the option to enforce or rescind the contract
What is a contract induced by coercion?	Voidable
A voidable contract remains enforceable until?	The aggrieved party chooses to rescind it
Which provision deal with a contract which ceases to be enforceable by law becomes void when it ceases to be enforceable?	Sec.2(j)
A valid contract between two parties becomes void due to subsequent illegality. This is an example of?	Void contract under Section 2(j)
Which case law is often cited to explain contracts becoming void due to frustration under Section 2(j)?	Satyabrata Ghose v. Mugneeram Bangur & Co.
A contract becomes void due to supervening impossibility. This principle is codified in?	Section 56 and Section 2(j)
Which provision deal with “Communication, acceptance and revocation of proposals”?	Sec.3
According to Section 3 of the Indian Contract Act, communication of a proposal is deemed to be made?	By any act or omission intended to communicate the proposal
Which principle is derived from Section 3 regarding communication of acceptance?	Acceptance must be expressed through a reasonable act or omission
Which judgment is associated with communication by conduct?	Carlill v. Carbolic Smoke Ball Co. (Conduct of using the smoke ball was treated as communication of acceptance.)
Which provision deal with “Communication when complete”?	Sec.4
When under section 4, communication of a proposal is complete?	When it comes to the knowledge of the person to whom it is made.
When Communication of acceptance is complete as against the proposer?	when it is put in a course of transmission to him, so as to be out of the power of the acceptor
When Communication of acceptance is complete as against the acceptor?	when it comes to the knowledge of the proposer
When Communication of revocation is complete as against the person who makes it?	when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it
When Communication of revocation is complete as against the person to whom it is made?	when it comes to his knowledge
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.
B accepts A’s proposal by a letter sent by post. The communication of the acceptance is complete?	as against A when the letter is posted; as against B, when the letter is received by A.
A revokes his proposal by telegram. The revocation is complete?	as against A when the telegram is despatched. as against B when B receives it.
B revokes his acceptance by telegram. B’s revocation is complete?	as against B when the telegram is despatched, and as against A when it reaches him.
In Bhagwan Das Goverdhan Das Kedia v. Girdharilal Parshottamdas & Co. AIR 1966 SC 543 the Supreme Court ruled?	Acceptance must reach proposer to be complete against acceptor
In Felthouse v. Bindley (1862), the rule clarified was?	Acceptance must be communicated
The “postal rule” is applicable primarily to?	Acceptance only
If A sends an offer to B and B posts acceptance on 1st June which A receives on 3rd June, communication of acceptance is complete?	On 1st June against proposer
A proposal is sent by post on 1st June and received by the offeree on 3rd June. On 2nd June, the proposer sends a revocation that reaches the offeree on 4th June. Is the revocation valid?	Yes, because revocation reached before acceptance
When the “postal rule” does not apply?	Parties have expressly agreed otherwise Communication is made by telephone Acceptance is instantaneous
Which provision deal with “Revocation of proposals and acceptances”?	Sec.5
As per Section 5 of the Indian Contract Act, when a proposal can be revoked?	At any time before the communication of acceptance is complete against the proposer but not afterwards.
As per Section 5 of the Indian Contract Act, when an acceptance may be revoked?	At any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.
A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post.	A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards. and B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards.
Which provision deal with “Revocation how made”?	Sec.6
As per Section 6 of the Indian Contract Act, a proposal is revoked?	In the modes specifically mentioned in the section
How a proposal is revoked?	by the communication of notice of revocation by the proposer to the other party
How a proposal is revoked?	by the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance
How a proposal is revoked?	by the failure of the acceptor to fulfil a condition precedent to acceptance;
How a proposal is revoked?	by the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance
A proposal lapses after a "reasonable time" in absence of a specified time. What determines “reasonable time”?	Court’s discretion based on facts
Which provision deal with “Acceptance must be absolute”?	Sec.7
According to Section 7, for a valid acceptance?	It must be absolute and unqualified
In order to convert a proposal into a promise, the acceptance must be?	be expressed in some usual and reasonable manner unless the proposal prescribes the manner in which it is to be accepted
What will be the consequences if the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner?	the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance.
If an acceptance modifies the original terms of the offer, it is?	Counter-offer
Which provision deal with “Acceptance by performing conditions, or receiving consideration”?	Sec.8
According to Section 8 of the Indian Contract Act, acceptance of a proposal can be made by?	Performing the conditions of the proposal
When the acceptance considered complete under Section 8?	When the performance of condition is completed
Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal.	is an acceptance of the proposal.
Under Section 8, which type of contracts is primarily covered?	Unilateral contracts (Because unilateral contracts are accepted by performance, e.g., reward cases.)
Which case emphasizes that mere performance without knowledge of the offer is not valid acceptance?	Lalman Shukla v. Gauri Dutt
In State of Bihar v. Bengal C. I. Co. (AIR 1954 SC 245), the Supreme Court held that?	Acceptance can be inferred by conduct and performance
A offers ₹10,000 reward for return of his lost dog. B finds and returns the dog without knowing the reward offer. Is there a contract?	No, as knowledge of offer is necessary (Based on Lalman Shukla v. Gauri Dutt.)
A publishes an advertisement promising ₹1,000 to anyone who uses his medicine and still gets flu. B uses it as directed and gets flu. Is A liable?	Yes, B accepted the offer by performance (Based on Carlill v. Carbolic Smoke Ball Co.)
A government contract is performed by a contractor who never formally accepted the terms. The department continues to pay him. Is there valid acceptance?	Yes, acceptance inferred by conduct (Based on State of Bihar v. Bengal C. I. Co.)
A agrees to sell a horse if B pays ₹5,000 and takes delivery. B does both without expressly accepting. Is it a contract?	Yes, acceptance by performance
When can performance be considered as acceptance?	When performer knows the offer
A rewards ₹1,000 for recovering his lost laptop. C recovers and informs A after the act. C had prior knowledge of the offer. Is there valid acceptance?	Yes, because performance with knowledge
Which provision deal with “Promises, express and implied”?	Sec.9
As per Section 9 of the Indian Contract Act, a promise made in words is called?	the promise is said to be express
As per Section 9 of the Indian Contract Act, proposal or acceptance is made otherwise than in words is called?	the promise is said to be implied
An implied promise arises from?	Conduct or circumstances
A send goods to B, who accepts and uses them without protest. What type of promise arises?	Implied promise
A books a cab using a mobile app. The driver arrives and completes the ride. Payment is expected. This is an example of?	Implied contract through conduct

CHAPTER-II
OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
Which provision deal with “What agreements are contracts”?	Sec.10
An agreement becomes a contract under Section 10 when it is?	Enforceable by law
What makes Agreement + Enforceability by law?	Contract
Section 10 does not apply to?	Contracts with minors Void contracts
When 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.
In Balfour v. Balfour (1919), the court held that?	Social/domestic agreements are not legally enforceable
Will section 10 affect any law in force in India and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents?	Nothing contained in sec 10 shall affect any law
Principle: An agreement without lawful consideration and lawful object is void. Fact: X promises to pay ₹10,000 to Y for beating Z. Is the agreement valid?	No, object is unlawful
Principle: An agreement made with free consent, lawful object, and consideration is valid. Fact: A enters into a contract with B by threatening to kill B’s brother. Is the contract enforceable?	No, because consent is not free
What is not a valid contract under Section 10?	A contract with minor
Legal enforceability of an agreement depends upon?	Intention to create legal obligation
"All contracts are agreements, but not all agreements are contracts" – This is because?	Only agreements with legal enforceability are contracts
Which provision deal with “Who are competent to contract”?	Sec 11
What are the essentials for a person to be competent to contract?	Majority of age Sound mind Not disqualified by law
The age of majority for contracting in India is generally?	18 years
What is the legal status of a minor’s contract?	Void ab initio
In Mohori Bibee v. Dharmodas Ghose (1903), the Privy Council held that?	Minor’s contract is void from the beginning
According to Nash v. Inman (1908), a minor is liable?	For necessaries supplied to him
In Srikakulam Subrahmanyam v. Kurra Subba Rao (1948), it was held that?	Guardian can enter into contracts on behalf of minor if beneficial
In Inder Singh v. Parmeshwardhari Singh (1957) held that?	Minor cannot be transferee of immovable property
Principle: A minor is not competent to contract. Fact: A, a 17-year-old, entered into a contract to buy a bike and took delivery but later refused payment. What is the legal position?	Contract is void and A is not liable
Assertion (A): A contract by a minor is void. Reason (R): Minor is not competent to contract under Section 11.	Both A and R are true
Which provision deal with “What is a sound mind for the purposes of contracting”?	Sec.12
According to Section 12, a person is said to be of sound mind if?	He can understand the contract and form rational judgment at the time of contract
A person who is usually of unsound mind, but occasionally of sound mind?	may make a contract when he is of sound mind.
A person who is usually of sound mind, but occasionally of unsound mind?	may not make a contract when he is of unsound mind.
What best describes ‘sound mind’ under Section 12?	Ability to understand the contract and consequences at the time of contracting
A contract made by a person of unsound mind is?	Void
A patient in a lunatic asylum, who is at intervals of sound mind?	may contract during those intervals.
What is an example of a person NOT having a sound mind for contracting?	A person suffering from temporary delirium at the time of contract
Can 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?	He cannot contract whilst such delirium or drunkenness lasts.
Principle: Sound mind means the ability to understand and judge the contract. Fact: X, suffering from chronic mental illness but lucid at contract time, entered into contract. What is the legal position?	Contract is valid
Which provision deal with the term “Consent”?	Sec.13
When two or more persons are said to consent?	When they agree upon the same thing in the same sense.
Which provision deal with “Free consent”?	Sec.14
Which elements affect the free consent as defined under Section 14?	Coercion section 15 undue influence section 16 fraud section 17 misrepresentation section 18 mistake sections 20, 21 and 22.
In which case did the court explain that free consent is fundamental to a valid contract?	Ranganayakamma v. Alwar Setti
The case of Derry v. Peek (1889) is primarily related to?	Fraud and its effect on free consent
Principle: Consent is not free when caused by coercion. Fact: A threatens to harm B’s family unless B sells his land. B agrees. Is consent free?	No, consent is caused by coercion
Principle: Consent obtained by fraud is not free consent. Fact: A tells B that a land is free from encumbrances when in fact it is mortgaged. B buys it.	B’s consent is not free
What is a valid defence for absence of free consent?	Pardanashin lady influenced by spiritual adviser
A spiritual guru persuades a wealthy devotee to donate all her property to him. Later, she challenges it. This is a case of?	Undue influence
Which provision defined the term “Coercion”?	Sec.15
A threatens to kill B’s son if B doesn’t transfer property. The transfer is done. This is?	Consent by coercion, voidable
What is the meaning of "coercion" under Section 15 of the Indian Contract Act, 1872?	Committing or threatening to commit an act forbidden by IPC or unlawfully detaining property
In Chikkam Ammiraju v. Chikkam Seshama, the threat of suicide was held to be?	Coercion, because attempt and abetment of suicide are offences
Which case stated that coercion makes the contract voidable and affects free consent?	Chikkam Ammiraju v. Chikkam Sitaramamma
In which case was it held that coercion can be exercised by or against a third party?	Ranganayakamma v. Alwar Setti
In Askari Mirza v. Bibi Jai Kishori, unlawful detention of a relative's property was considered?	Coercion
Is it material whether the Indian Penal Code (45 of 1860) or Bharatiya Nyaya Sanhita, 2023 (BNS) is or is not in force in the place where the coercion is employed?	No (It is immaterial)
Principle: Coercion is committing or threatening to commit an act forbidden by IPC. Facts: A threatens to burn B’s shop unless B signs a contract to sell goods at a lower price. B signs. Is it coercion?	Yes, coercion as per Section 15
A, on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Indian Penal Code (45 of 1860) or Bharatiya Nyaya Sanhita, 2023 (BNS). A afterwards sues B for breach of contract at Calcutta.	A has employed coercion, although his act is not an offence by the law of England, and although section 506 of the Indian Penal Code (45 of 1860) or section 351 (2), 351 (3) of Bharatiya Nyaya Sanhita, 2023 (BNS) was not in force at the time when or place where the act was done.
Coercion under Indian law differs from English law because?	English law includes economic duress
If A threatens to commit a theft unless B enters into a contract, the agreement is?	Voidable at the option of B
A kidnaps B’s child and forces B to sell his property. This is?	Coercion under Section 15
A holds B’s property unlawfully and agrees to release it only if B agrees to a fresh contract. This is?	Coercion due to unlawful detention
Which provision defines the term “Undue influence”?	Sec.16
What best defines “Undue Influence” under Section 16 of the Indian Contract Act, 1872?	Using one's position to dominate the will of another to gain an unfair advantage
A relationship where one party can dominate the will of another typically includes?	Master and servant Teacher and student Parent and child
When a person is deemed to be in a position to dominate the will of another?	where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other
When a person is deemed to be in a position to dominate the will of another?	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.
When a person is deemed to be in a position to dominate the will of another?	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.
Whether sec 16(3) of ICA affect the provisions of section 111 of the Indian Evidence Act, 1872 (1 of 1872) OR section 114 of the bharatiya sakshya adhiniyam, 2023?	Nothing in 16(3) of ICA shall affect.
A having advanced money to his son, B, during his minority, upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater amount than the sum due in respect of the advance.	A employs undue influence.
A, a man enfeebled by disease or age, is induced, by B’s influence over him as his medical attendant, to agree to pay B an unreasonable sum for his professional services.	B employs undue influence.
A, being in debt to B, the money-lender of his village, contracts a fresh loan on terms which appear to be unconscionable.	It lies on B to prove that the contract was not induced by undue influence.
A applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. A accepts the loan on these terms.	This is a transaction in the ordinary course of business, and the contract is not induced by undue influence.
In which landmark case was it held that undue influence occurs when a spiritual adviser dominates a devotee?	Mannu Singh v. Umadat Pandey
In Raghunath Prasad v. Sarju Prasad, it was held that?	Mere relationship does not prove undue influence
The case Allcard v. Skinner (1887) deals with?	Spiritual influence and undue influence
Principle: When a person is in a position to dominate the will of another and uses that position to gain an unfair advantage, the consent is said to be induced by undue influence. Facts: A sick and aged man, dependent on B, his caretaker, gifts all his property to B.	Yes, because B was in a position to dominate A’s will
Principle: The burden of proving that the contract was not induced by undue influence lies on the person who is in a position to dominate the will. Facts: A spiritual guru persuades his devotee to donate all his wealth to the ashram.	Guru must prove there was no undue influence
The contract obtained by undue influence is voidable at the option of the party whose consent was so caused?	True
Who is not a presumption of undue influence under Section 16(3)?	Landlord-tenant
When a party is unable to exercise free will due to mental weakness and the other party takes advantage, it is:	Undue Influence
Under Section 16, the relationship in which undue influence is presumed includes?	Doctor and patient Banker and account holder Teacher and student
Which provision defines the term “Fraud”?	Sec.17
Whether the suggestion, as a fact, of that which is not true, by one who does not believe it to be true constitutes fraud?	Yes
Whether the active concealment of a fact by one having knowledge or belief of the fact constitutes fraud?	Yes
What constitute “Fraud?	a promise made without any intention of performing it
What constitute “Fraud?	any such act or omission as the law specially declares to be fraudulent
What is not included under "fraud" as per Section 17?	A mere expression of opinion
Under Section 17 of the Indian Contract Act, fraud must be committed?	By a party to the contract or his agent
Will Silence as to a material fact where there is no duty to speak constitute "fraud"?	No
What is the essential element of fraud?	Intention to deceive
In Derry v. Peek (1889), the House of Lords held that?	A false statement made without honest belief amounts to fraud
In which case was it held that mere silence is not fraud, unless there is a duty to speak or unless his silence is, in itself, equivalent to speech?	Peek v. Gurney
Which case law laid down that a promise made without the intention of performing it is fraud under Indian law?	Ganga Singh v. Lekhraj Singh
B is A’s daughter and has just come of age.	Here, the relation between the parties would make it A’s duty to tell B if the horse is unsound.
B says to A—“If you do not deny it, I shall assume that the horse is sound.” A says nothing.	Here, A’s silence is equivalent to speech.
A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contract.	A is not bound to inform B.
Principle: Fraud includes suggesting a fact which is not true by a person who does not believe it to be true. Facts: A sells a horse to B stating it is healthy, knowing it is lame. B buys the horse.	There is fraud
Principle: Silence is fraud when there is a duty to speak. Facts: A proposes to sell a house to B. A knows that the house is structurally unsound but says nothing.	A is liable for fraud because he had a duty to disclose
Principle: A person making a promise without intending to perform it commits fraud. Facts: X promises to deliver 500 bags of cement to Y knowing he doesn't have any stock and doesn't intend to buy either.	X committed fraud
Which contracts is considered to be of uberrimae fidei (utmost good faith) where silence can amount to fraud?	Insurance contracts
Which provision defines the term “Misrepresentation”?	Sec.18
Under Section 18 of the Indian Contract Act, 1872, "misrepresentation" means?	A positive assertion made without due information, honestly believed to be true
Does it amount to misrepresentation where 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?	Yes
Does it amount to misrepresentation where any breach of duty which, without an intent to deceive, gains an advantage to 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?	Yes
Does it amount to misrepresentation where 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?	Yes
What is the effect of misrepresentation on a contract?	Contract is voidable at the option of the party misled
What best differentiates misrepresentation from fraud under the Indian Contract Act?	Misrepresentation is an honest assertion believed to be true, fraud involves knowledge of falsity
Which case held that a contract induced by misrepresentation is voidable but not void?	Redgrave v Hurd (1881)
According to Section 18, misrepresentation involves?	Assertion without due information, honestly believed true
Which provision deal with “Voidability of agreements without free consent”?	Sec.19
According to Section 19, if consent to an agreement is caused by coercion, fraud, misrepresentation, the agreement is?	a contract voidable at the option of the party whose consent was so caused
Which case laid down the principle that consent must be free to make a contract valid?	Chikkam Ammiraju v. Ramayya
What is the legal status where such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17?	The contract, nevertheless, is not voidable, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence.
Can a party render the contract voidable where a fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made?	Party does not render a contract voidable.
In which case did the Supreme Court explain the element of "undue influence" under free consent?	M.C. Chockalingam v. K.C. Basappa
A, intending to deceive B, falsely represents that five hundred maunds of indigo are made annually at A’s factory, and thereby induces B to buy the factory.	The contract is voidable at the option of B.
A, by a misrepresentation, leads B erroneously to believe that, five hundred maunds of indigo are made annually at A’s factory. B examines the accounts of the factory, which show that only four hundred maunds of indigo have been made. After this B buys the factory.	The contract is not voidable on account of A’s misrepresentation.
A fraudulently informs B that A’s estate is free from in cumbrance. B thereupon buys the estate. The estate is subject to a mortgage.	B may either avoid the contract, or may insist on its being carried out and the mortgage debt redeemed.
B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Through A’s ignorance B is enabled to buy the estate at an under-value.	The contract is voidable at the option of A.
A is entitled to succeed to an estate at the death of B; B dies: C, having received intelligence of B’s death, prevents the intelligence reaching A, and thus induces A to sell him his interest in the estate.	The sale is voidable at the option of A.
On whom the burden of proof lies in cases of undue influence?	On the party exercising undue influence
Which provision deal with “Power to set aside contract induced by undue influence”?	Sec.19A
Section 19A of the Indian Contract Act, 1872 empowers the court to?	Set aside contracts induced by undue influence
Under Section 19A, a contract is liable to be set aside if it was obtained by?	Undue influence
Which case laid down principles related to undue influence and the power of the court to set aside such contracts?	Allcard v. Skinner
A’s son has forged B’s name to a promissory note. B under threat of prosecuting A’s son, obtains a bond from A for the amount of the forged note.	If B sues on this bond, the Court may set the bond aside.
A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent per month.	The Court may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just
The concept of “undue influence” under Section 19A implies?	Influence exercised by one party over another to obtain an unfair advantage
Which relationships likely to presume undue influence under Section 19A?	Doctor and patient
In which case did the Supreme Court observe that a contract induced by undue influence can be set aside?	Manjusree Marketing Pvt. Ltd. v. Vinay Chhabra
What is the primary objective of Section 19A?	To provide remedy to parties whose consent was obtained by undue influence
The burden of proof in cases alleging undue influence lies on?	The party accused of undue influence
A contract induced by undue influence is?	Voidable at the option of the party influenced
The effect of setting aside a contract under Section 19A is?	The contract is rescinded and parties are restored to original position
Undue influence can be inferred when one party dominates the will of the other by?	Pressure or unfair advantage
Which provision deal with “Agreement void where both parties are under mistake as to matter of fact”?	Sec.20
When both parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is?	Void
Whether an erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is to be deemed a mistake as to a matter of fact?	No
Section 20 applies only when the mistake is?	Mutual or common to both parties
A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain, the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts.	The agreement is void.
A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact.	The agreement is void.
A, being entitled to an estate for the life of B, agrees to sell it to C. B was dead at the time of the agreement, but both parties were ignorant of the fact.	The agreement is void.
The legal effect of a contract under Section 20 where both parties are mistaken about an essential fact is?	Contract is void
The case of Bell v. Lever Brothers Ltd. (1932) is relevant to?	Mutual mistake of contract terms not affecting validity
Can a contract be void under Section 20 if only one party is mistaken about a fact?	No, Section 20 applies only when both parties are mistaken
Which doctrine supports Section 20 in declaring a contract void when both parties are under a mistake?	Doctrine of consensus ad idem (meeting of minds)
Which provision deal with “Effect of mistakes as to law”?	Sec.21
Section 21 of the Indian Contract Act, 1872 states that a contract is?	not voidable despite a mistake as to law
According to Section 21, a mistake of law?	Does not affect the validity of the contract
Which case held that ignorance of the law is no excuse and mistakes as to law do not void a contract?	Kedar Nath v. Gorie Mohammad
What is the rationale behind Section 21?	Every person is presumed to know the law
Under Section 21, a party cannot avoid a contract on the ground that?	They were unaware of the law applicable to the contract
Section 21 applies to mistakes of?	Both Indian and foreign law
The maxim “Ignorantia juris non excusat” supports which section of the Indian Contract Act?	Section 21
Which provision deal with “Contract caused by mistake of one party as to matter of fact”?	Sec.22
Section 22 of the Indian Contract Act, 1872 deals with?	Unilateral mistake of fact
Under Section 22, if only one party is under a mistake as to a matter of fact, the contract is?	Valid
When does in unilateral mistake, the mistaken party can avoid the contract?	The other party is aware and takes advantage of the mistake
The leading English case on unilateral mistake is?	Smith v. Hughes
What does the court held that In Smith v. Hughes?	Mistake of one party does not affect the contract if the other party is innocent
Which Indian case followed the ratio of Smith v. Hughes regarding unilateral mistake?	Tarsem Singh v. Sukhminder Singh
Tarsem Singh v. Sukhminder Singh dealt with?	Unilateral mistake in terms of the contract

VOID AGREEMENTS
Which provision deal with “What considerations and objects are lawful, and what not”?	Sec.23
Section 23 of the Indian Contract Act, 1872 deals with?	Lawful and unlawful considerations and objects
The consideration or object of an agreement under section 23 of the Indian Contract Act, 1872?	unlawful
Every agreement of which the object or consideration is unlawful?	Void
A consideration or object is unlawful under Section 23 if?	It is against the Indian Penal Code
When the consideration or object of an agreement is unlawful?	it is forbidden by law defeat the provisions of any law is fraudulent involves or implies injury to the person or property of another immoral, or opposed to public policy.
Which case is a leading authority on agreements opposed to public policy?	Gherulal Parakh v. Mahadeodas Maiya
An agreement to commit a crime is void because?	The object is unlawful under Section 23
When considerations would be lawful under Section 23?	Payment to perform a legal obligation
An agreement is void if its object is to?	Influence court proceedings through illegal means
An agreement whose consideration is forbidden by law is?	Void
What is meant by "object" under Section 23?	Purpose or design for which the agreement is entered into
A contract with an immoral object, such as promoting prostitution, is?	Void under Section 23
Why Agreement in restraint of legal proceedings is void under Section 23?	Opposed to public policy
A contract to sell liquor without license is?	Void as it is forbidden by law
In which case did the court observe that an agreement made for unlawful consideration is void even if only one part is illegal?	Curwen v. Milburn
What is the status of an agreement to share profits from smuggling goods?	Void under Section 23
Which principle is reflected in Section 23?	Ex turpi causa non oritur actio
If part of the consideration is unlawful under Section 23?	Entire agreement is void
An agreement with the object of defrauding a third party is?	Void under Section 23
A agrees to sell his house to B for 10,000 rupees. Here B’s promise to pay the sum of 10,000 rupees is the consideration for A’s promise to sell the house, and A’s promise to sell the house is the consideration for B’s promise to pay the 10,000 rupees.	These are lawful considerations.
A promises to pay B 1,000 rupees at the end of six months, if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly.	Here, the promise of each party is the consideration for the promise of the other party, and they are lawful considerations.
A promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certain voyage.	Here, A’s promise is the consideration for B’s payment and B’s payment is the consideration for A’s promise and these are lawful considerations.
A promises to maintain B’s child, and B promises to pay A 1,000 rupees yearly for the purpose.	Here, the promise of each party is the consideration for the promise of the other party. They are lawful considerations.
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.
A promises to obtain for B an employment in the public service and B promises to pay 1,000 rupees to A.	The agreement is void, as the consideration for it is unlawful.
A, being agent for a landed proprietor, agrees for money, without the knowledge of his principal, to obtain for B a lease of land belonging to his principal.	The agreement between A and B is void, as it implies a fraud by concealment, by A, on his principal.
A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken.	The agreement is void, as its object is unlawful.
A’s estate is sold for arrears of revenue under the provisions of an Act of the Legislature, by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser, and agrees to convey the estate to A upon receiving from him the price which B has paid.	The agreement is void, as it renders the transaction, in effect, a purchase by the defaulter, and would so defeat the object of the law.
A, who is B’s mukhtar, promises to exercise his influence, as such, with B in favour of C, and C promises to pay 1,000 rupees to A.	The agreement is void, because it is immoral.
A agrees to let her daughter to hire to B for concubinage.	The agreement is void, because it is immoral, though the letting may not be punishable under the Indian Penal Code (45 of 1860)
Which provision deal with “Agreements void, if considerations and objects unlawful in part”?	Sec.24
Section 24 of the Indian Contract Act, 1872 deals with:	Agreements where consideration or object is unlawful in part
When according to Section 24, an agreement is void?	Either the consideration or object is unlawful in part and the unlawful part cannot be separated
What happens when the lawful and unlawful parts of a contract are inseparable?	The entire contract is void
In Ram Sarup v. Bansi Mandar, the contract was held void under Section 24 because?	The consideration was unlawful and inseparable
If the legal and illegal parts of an agreement can be clearly separated, the court will?	Enforce the legal part
The principle of severability under Section 24 means?	Illegal portion is ignored only if not inseparable
A contract that contains two objects, one legal and the other illegal, and both are inseparable?	Void under Section 24
What happen if an agreement where part of the consideration is for lawful work and part for smuggling?	Void under Section 24
A promises to superintend, on behalf of B, a legal manufacture of indigo, and an illegal traffic in other articles. B promises to pay to A a salary of 10,000 rupees a year.	The agreement is void, the object of A’s promise, and the consideration for B’s promise, being in part unlawful.
What best describes the doctrine applicable under Section 24?	Doctrine of severability
What is true regarding contracts under Section 24?	Entire agreement is void only if illegality is inseparable
A promises to pay B ₹10,000 for publishing a book and ₹5,000 to include a defamatory chapter. The whole agreement is?	Void under Section 24
Which provision deal with “Agreement without consideration, void”?	Sec.25
Section 25 of the Indian Contract Act, 1872 deals with?	Agreement without consideration
According to Section 25, an agreement made without consideration?	Void unless it falls under specified exceptions
For a love and affection-based promise to be valid without consideration, it must be?	In writing and registered
When A promise to compensate someone for an act done voluntarily is valid under Section 25?	Made after the act is done
An oral promise to repay a debt barred by limitation is?	Void
For a promise to repay a time-barred debt to be valid under Section 25(3), it must be?	In writing and signed by the debtor
Which section provides exceptions to the rule that “no consideration, no contract”?	Section 25
In which case was it held that a promise made out of natural love and affection must be in writing and registered to be valid?	Venkata Chinnaya Rau v. Venkataramaya Garu (1881)
What is the legal status of a promise to pay ₹1,000 to a friend who helped in an emergency, made voluntarily and in writing?	Valid under Section 25(2)
In which case, the court held that Gratuitous promises without consideration are void?	Abdul Aziz v. Masum Ali, AIR 1914 ALL 22
Past voluntary services can be compensated by a valid promise if?	The promisor was capable of being benefitted by the act
The requirement for a promise under Section 25(3) to repay a barred debt is that?	It must be in writing and signed
A written promise to repay a debt barred by limitation is?	Valid and enforceable
Whether section 25 affect the validity, as between the donor and donee, of any gift actually made?	No
Will an agreement to which the consent of the promisor is freely given is void merely because the consideration is inadequate?	No
Will the inadequacy of the consideration be taken into account by the Court in determining the question whether the consent of the promisor was freely given?	Yes
The principle “ex nudo pacto non oritur actio” (no action arises from a bare promise) is qualified by?	Section 25
In which case did the court enforce a charitable promise due to change of position of the promisee?	Kedarnath v. Gorie Mohammad
A promise to give a gift to a relative, made orally and without consideration, is?	Void
A promises, for no consideration, to give to B Rs. 1,000.	This is a void agreement
A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing and registers it.	This is a contract.
A finds B’s purse and gives it to him. B promises to give A Rs. 50.	This is a contract
A supports B’s infant son. B promises to pay A’s expenses in so doing.	This is a contract.
A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on account of the debt.	This is a contract.
A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A’s consent to the agreement was freely given.	The agreement is a contract notwithstanding the inadequacy of the consideration.
A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that his consent to the agreement was freely given.	The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A’s consent was freely given.
Which provision deal with “Agreement in restraint of marriage, void”?	Sec.26
Section 26 of the Indian Contract Act, 1872 declares which type of agreements void?	Agreements in restraint of marriage
According to Section 26, what is the status of an agreement restraining the marriage of any person?	Void
Section 26 applies to?	All persons other than minors
In which leading case was it held that an agreement restraining marriage is void?	Lowe v. Peers (1768)
The rationale behind Section 26 is to uphold?	Personal liberty and right to marry
Section 26 applies to?	Partial restraints as well
An agreement restraining a person from marrying outside their religion?	Void under Section 26
In Lowe v. Peers, what was the agreement that was held void?	Not to marry anyone else
What will be the consequences in a case where A restraint on second marriage when first spouse is alive and marriage valid?	Legal due to monogamy
Section 26 does not apply to?	Restraint on minor's marriage
Can a contract restraining marriage be enforced under specific relief?	No, as it is void
Section 26 is based on the public policy principle that?	Free will and personal liberty should be upheld
Which provision deal with “Agreement in restraint of trade, void”?	Sec.27
Section 27 of the Indian Contract Act, 1872 deals with?	Restraint of trade
Whether every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void?	Yes
What is an exception to Section 27?	Agreement not to carry on business after sale of goodwill
What does the phrase “saving of agreement not to carry on business of which goodwill is sold” means?	Such restraint is valid to protect buyer’s interest
Which case is a leading Indian authority on Section 27?	Madhub Chander v. Raj Coomar
What was held in Madhub Chander v. Raj Coomar Dass, (1874)?	All agreements in restraint of trade are void
What will be the consequences if a clause in an agreement prohibiting a person from starting any similar business forever?	Void under Section 27
What will be the consequences if An agreement that restricts trade in one particular city only?	Void unless it falls within exception
What is valid under the exception to Section 27?	Restraint where goodwill of business is sold
What will be the consequences if A person sells his bakery and agrees not to open another bakery in the same town for 2 years?	Valid under exception of Section 27
Which provision deal with “Agreements in restraint of legal proceedings, void”?	Sec.28
Under Section 28, an agreement restricting a party from enforcing their legal rights through usual legal proceedings is?	Void
What is an exception to Section 28?	Agreement to refer dispute to arbitration
Which case is a landmark on the interpretation of agreements in restraint of legal proceedings under Section 28?	National Insurance Co. Ltd. v. Sujir Ganesh Nayak & Co.
In National Insurance Co. Ltd. v. Sujir Ganesh Nayak & Co., the Supreme Court held that:	Limitation clauses shortening the time to sue are void
A clause in a contract that restricts legal remedy to only 3 months instead of the statutory period is?	Void under Section 28
Arbitration agreements are considered?	Valid exception to Section 28
What does the second saving clause of Section 28 provide?	That parties may refer existing disputes to arbitration
A clause that says no legal action can be taken under any circumstance is?	Void under Section 28
The third saving clause added by the 1997 amendment refers to?	Bank guarantee and financial institution guarantee agreements
Agreements by which parties agree to waive their right to approach the court entirely are?	Void under Section 28
A clause in a loan agreement by a financial institution that limits the time to initiate legal action to 6 months is?	Protected under the third exception of Section 28
The saving clause in Section 28 that allows arbitration agreements includes?	Agreements to refer existing or future disputes
What is correct under Section 28?	Absolute restraints on legal proceedings are void
An agreement that legal disputes shall be referred to arbitration only and not to courts is?	Enforceable due to exception
Section 28 aims to protect?	Right to access legal remedy
Which provision deal with “Agreements void for uncertainty”?	Sec.29
When an agreement is void for uncertainty?	Its terms are not clear or capable of being made certain
What is the status of agreement if A agrees to sell to B “a hundred tons of oil”. There is nothing whatever to show what kind of oil was intended?	The agreement is void for uncertainty.
What is the status of agreement if A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce?	There is no uncertainty here to make the agreement void.
What is the legal status of agreement if A, who is a dealer in coconut-oil only, agrees to sell to B “one hundred tons of oil”?	The nature of A’s trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of cocoanut-oil.
What is the legal status of agreement if A agrees to sell to B “all the grain in my granary at Ramnagar”?	There is no uncertainty here to make the agreement void.
What is the legal status of agreement if A agrees to sell B “one thousand maunds of rice at a price to be fixed by C”?	As the price is capable of being made certain, there is no uncertainty here to make the agreement void.
A agrees to sell to B “my white horse for rupees five hundred or rupees one thousand”?	There is nothing to show which of the two prices was to be given. The agreement is void.
Which provision deal with “Agreements by way of wager void”?	Sec.30
Section 30 of the Indian Contract Act, 1872 deals with?	Wagering agreements
What is an essential element of a wagering agreement?	Future uncertain event
What is a legal status of a wagering agreement?	Void even if registered
Which case is a leading authority on wagering agreements in India?	Gherulal Parakh v. Mahadeodas Maiya
In which case the Supreme Court held that wagering agreements are Void but not forbidden by law?	Gherulal Parakh v. Mahadeodas Maiya
When does under Section 30, an agreement is a wager?	One party wins and the other loses
A contract where parties bet on the outcome of an election?	Void as it is a wagering agreement
What does the legal status of a wagering agreement?	Void, but illegal in some states like Gujarat and Maharashtra
What the exception to Section 30 allows?	Horse-racing competitions with prizes above ₹500
Which statute regulates the legality of lotteries and gambling?	Section 294A of IPC
What does Section 294A of the Indian Penal Code deal with?	Keeping lottery offices unlawfully
Horse race betting is valid under Section 30 only if?	Prize money is ₹500 or more
What will be the status if a person enters into an agreement to pay ₹10,000 if India wins the match?	Void as a wagering agreement
Can a collateral agreement to a wagering agreement be enforced?	No, if wagering is illegal in that state
What is the public policy behind Section 30?	Discourage betting and gambling
A horse race prize of ₹200 is offered. Is it enforceable?	No, it falls below the exception threshold

CHAPTER-III
OF CONTINGENT CONTRACTS
Which provision deal with “Contingent contract” defined?	Sec.31
On what a contingent contract depends upon?	The happening of an uncertain event
What are the essential features of a contingent contract?	Event must be uncertain Event must be collateral
In which case did the court hold that a contract dependent on an uncertain future event is a contingent contract?	Bashir Ahmad v. Govt. of Andhra Pradesh
Which type of a contract deal with where A promises to pay B Rs. 10,000 if B’s ship returns safely?	Contingent Contract
Example of a contract which is not a contingent contract?	A agrees to sell house to B after 3 months
In a contingent contract, the collateral event must be?	Independent of the contract
What is the basic difference between a wagering agreement and a contingent contract?	A contingent contract is a valid and enforceable agreement dependent on a future event, while a wagering agreement is void and unenforceable, as it involves a bet on the outcome of an uncertain event with no real interest in the event itself
A promises to deliver goods to B, if B secures a government tender. What kind of contract is this?	Contingent
A contract to pay B Rs. 10,000 if B’s house is burnt.	This is a contingent contract
Which provision deal with “Enforcement of contracts contingent on an event happening”?	Sec.32
Which section of the Indian Contract Act follows the definition of contingent contract and deals with enforcement?	Sec 32
A agrees to pay B Rs. 10,000 if India wins the World Cup. The contract is?	Contingent
In a contingent contract, when does the obligation to perform arise?	When the contingent event occurs
If the contingent event becomes impossible, the contract under Section 32?	Becomes void
When a contract to sell goods if a ship arrives safely is enforceable?	The ship arrives safely
In which case did the court explain that a contingent contract dependent on an uncertain event cannot be enforced unless the event happens?	Bashir Ahmad v. Govt. of A.P.
A makes a contract with B to buy B’s horse if A survives C.	This contract cannot be enforced by law unless and until C dies in A’s lifetime.
A makes a contract with B to sell a horse to B at a specified price, if C, to whom the horse has been offered, refuses to buy him.	The contract cannot be enforced by law unless and until C refuses to buy the horse.
A contracts to pay B a sum of money when B marries C. C dies without being married to B.	The contract becomes void.
In which case was it held that the doctrine of frustration under Section 56 cannot apply where parties have contemplated the happening of an event and provided for it under Section 32?	Satyabrata Ghose v. Mugneeram Bangur & Co.
What is the distinction between Section 32 and Section 56 of the Indian Contract Act?	Section 32 is for contingent contracts; Section 56 for frustrated contracts
A contract is made to build a house if the government grants a license. License is never granted. The contract is?	Void under Section 32
Which provision deal with “Enforcement of contracts contingent on an event not happening”?	Sec.33
Under Section 33, a contingent contract becomes enforceable?	The event becomes impossible to happen and not before
A agrees to pay B Rs. 10,000 if a certain ship does NOT return. The ship sinks. When can B enforce the contract?	When the ship sinks
A contract becomes void under Section 33 if?	The event happens
A promises to pay B Rs. 5,000 if C does not marry within a year. C marries after 6 months. The contract?	Is void
A promises to transfer property to B if X does not return from war. X is declared dead. The contract?	Becomes enforceable under Section 33
Section 33 applies to contracts that are?	Contingent on event not happening
A agrees to sell land to B if C does not return from England within six months. After two months, C dies. The contract?	Becomes enforceable under Section 33
Which case law is relevant to contracts contingent on the non-happening of an event?	Haridas v. Girdhar Das
The legal principle in Section 33 relates to?	Contingent contracts based on negative events
What distinguishes Section 33 from Section 32?	Section 33 deals with events not happening; Section 32 deals with happening
Which provision deal with “When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person”?	Sec.34
Section 34 deals with contingent contracts where the event is?	Future conduct of a living person
When according to Section 34, the contingent event is deemed impossible?	The person becomes incapacitated The person refuses to act The person does something that renders the act impossible
A agrees to pay B Rs. 10,000 if C marries D. C marries someone else. The contract?	Becomes void as per Section 34
What is the key idea behind Section 34?	Determining impossibility of conduct
A contract is contingent on X joining a company as CEO. X takes a binding 5-year contract with another company. The contract is?	Deemed impossible under Section 34
When can a contingent event depending on a person’s future action be deemed impossible under Section 34?	If the person refuses to act If the person acts in a contrary manner If the person takes a legal obligation preventing the act
Which provision deal with “When contracts become void which are contingent on happening of specified event within fixed time”?	Sec.35
A agrees to pay B Rs. 10,000 if a certain ship returns within 6 months. The ship returns after 7 months. The contract?	Becomes void under Section 35
A contract contingent on an event not happening within a fixed time can be enforced?	After time expires and event does not happen
A promises to pay B Rs. 5,000 if C does not marry within one year. C remains unmarried even after one year. The contract?	Is enforceable by B
When is a contract contingent on the happening of an event within fixed time deemed void before time ends?	When the event becomes impossible
A agrees to sell goods to B if a particular license is granted within 3 months. License is refused after 1 month. The contract?	Becomes void immediately
A agrees to pay B Rs. 10,000 if the sun rises in the west within a year. This contract?	Is void ab initio
When the rule of Section 35 regarding enforcement of contract contingent on non-happening applies?	Time expires without event happening The event becomes impossible before time
Which provision deal with “Agreement contingent on impossible events void”?	Sec.36
What does Section 36 of the Indian Contract Act, 1872 declare?	Voidness of agreements contingent on impossible events
If a contract is made conditional on an impossible event, such a contract is?	Void ab initio
A promises to pay B ₹10,000 if two straight lines enclose an area. The agreement is?	Void under Section 36
Which example best illustrates a void agreement under Section 36?	Promise to pay if the moon falls on earth
What is NOT an essential element for Section 36 to apply?	Impossibility must be known to both parties
A promises to pay B ₹1 lakh if B revives a dead man. This agreement is?	Void
Section 36 applies when the contingency?	Naturally impossible
A promises to pay B ₹50,000 if B can make a square circle. This is?	Void under Section 36

CHAPTER-IV
OF THE PERFORMACNCE OF CONTRACTS
CONTRACT WHICH MUST BE PERFRMED
Which provision deal with “Obligation of parties to contracts”?	Sec.37
Under Section 37, performance of promise may be excused under?	Provision of the Indian Contract Act or any other law
The performance under Section 37 includes?	Both performance and tender (offer) to perform
If a promisor dies before performance, who is bound to perform under Section 37?	The legal representatives
What is true regarding Section 37?	Offer to perform is treated as valid performance under certain conditions
When is a promisor not bound to perform under Section 37?	When the promisee waives performance
A contract that requires performance by a particular individual (e.g., a singer) becomes void on the death of the individual. This is due to?	Section 37 – contract of personal nature
Performance of a contract must be?	Absolute and unconditional unless otherwise agreed
A agrees to deliver goods to B on 10th July. B must be ready to accept delivery. This is based on?	Section 37
Tender of performance must be?	Valid and unconditional
A valid tender of performance by the promisor, if refused by the promisee, results in?	Discharge of promisor’s obligation
What is a valid excuse for non-performance under Section 37?	Commercial hardship
Where parties mutually agree not to perform the contract, the performance is?	Dispensable
Section 37 mandates performance by?	Promisor or his agent or legal representative, unless personal skills are involved
A promises to deliver goods to B on a certain day on payment of Rs. 1,000. A dies before that day.	A’s representatives are bound to deliver the goods to B, and B is bound to pay the Rs. 1,000 to A’s representatives.
A promises to paint a picture for B by a certain day, at a certain price. A dies before the day.	The contract cannot be enforced either by A’s representatives or by B.
Which provision deal with “Effect of refusal to accept offer of performance”?	Sec.38
What will be the consequences where a promisor has made an offer of performance to the promisee, and the offer has not been accepted?	the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract.
Where a promisor has made an offer of performance to the promisee then every such offer must fulfil which conditions?	it must be unconditional it must be made at a proper time and place and have a reasonable opportunity of ascertaining that the person by whom it is made is able and willing there and then to do the whole of what he is bound by his promise the promisee must have a reasonable opportunity of seeing that the thing offered is the thing which the promisor is bound by his promise to deliver.
A agrees to deliver rice to B on 1st June. He reaches B’s place with rice, but B refuses. Under Section 38?	A is discharged from performance
A contracts to deliver to B at his warehouse, on the 1st March, 1873, 100 bales of cotton of a particular quality. In order to make an offer of a performance with the effect stated in section 38.	A must bring the cotton to B’s warehouse, on the appointed day, under such circumstances that B may have a reasonable opportunity of satisfying himself that the thing offered is cotton of the quality contracted for, and that there are 100 bales.
Whether An offer to one of several joint promisees has the same legal consequences as an offer to all of them?	Yes
Under Section 38, who must the performance be offered to?	Proper person entitled to receive performance
If a valid tender is refused, who bears the consequences?	Promisee

BY WHOM CONTRACTS MUST BE PERFORMED
Which provision deal with “Effect of refusal of party to perform promise wholly”?	Sec.39
Under Section 39, if a party refuses to perform the contract wholly, the other party may?	Put an end to the contract
Refusal to perform a contract before the due date is called?	Anticipatory breach
If a party refuses to perform the contract, and the other party accepts the refusal and continues, this is known as?	Acquiescence
A enters into a contract with B to supply goods. Before the date of delivery, A writes to B refusing to deliver. Under Section 39, B can?	Put an end to the contract immediately
A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre two nights in every week during the next two months, and B engages to pay her 100 rupees for each night’s performance. On the sixth night A wilfully absents herself from the theatre.	B is at liberty to put an end to the contract.
A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre two night’s in every week during the next two months, and B engages to pay her at the rate of 100 rupees for each night. On the sixth night, A wilfully absents herself. With the assent of B, A sings on the seventh night.	B has signified his acquiescence in the continuance of the contract, and cannot now put an end to it, but is entitled to compensation for the damage sustained by him through A’s failure to sing on the sixth night.
Which case is associated with anticipatory breach under Section 39?	Frost v. Knight (1872)
Under Section 39, refusal to perform must be?	Total and either express or implied
If a party prevents himself from performing the contract wholly, it is considered as?	Anticipatory breach under Section 39
In case of a breach under Section 39, the remedy available to the promisee is?	Damages and rescission
Under Section 39, if the promisee continues with the contract after breach, they?	Are deemed to have acquiesced
Which provision deal with “Person by whom promise is to be performed”?	Sec.40
If a contract involves personal skill or confidence, who must perform it?	The promisor himself
If the nature of the contract does not demand personal performance, then it?	Can be performed by his representatives
A promises to pay B a sum of money. A may perform this promise?	either by personally paying the money to B or by causing it to be paid to B by another.
A promises to pay B a sum of money. A may perform this promise but if A dies before the time appointed for payment?	his representatives must perform the promise, or employ some proper person to do so
A promises to paint a picture for B.	A must perform this promise personally.
If the promisee accepts performance from a third party, the promisor?	Is discharged
The principle of Section 40 was applied in which of the following cases?	Robinson v. Davison
A agrees to deliver furniture to B. A sends his servant to deliver. The performance is?	Valid under Section 40
A agrees to dance at B’s function. On the day, A sends someone else to dance. This performance is?	Breach of contract
A agrees to write a book for B’s publishing house. A dies before completing. The contract?	Cannot be performed — void
Performance by third party is acceptable only if?	Promisee agrees
Which provision deal with “Effect of accepting performance from third person”?	Sec.41
If a promisee accepts performance from a third person?	He cannot enforce the contract against the promisor
What best describes the principle in Section 41?	Estoppel against the promisee
A contracts to deliver goods to B. C, a friend of A, delivers the goods with B’s consent. What is the legal effect?	B cannot sue A
In which case was the principle under Section 41 laid down that acceptance of performance from third party discharges the promisor?	Hirachand Punamchand v. Temple (1911)
A agrees to pay ₹10,000 to B. C pays B, and B accepts it in full satisfaction. Can B later sue A?	No, because A is discharged under Section 41
What is the legal basis of Section 41 regarding discharge of contract?	Estoppel
Which provision deal with “Devolution of joint liabilities”?	Sec.42
When a joint promisor dies, his liability?	Devolves upon his legal representatives jointly with surviving promisors
A, B, and C jointly promise to pay ₹30,000 to D. A dies. D can enforce the payment?	From B, C, and A’s legal representatives
What happens when all joint promisors die?	Legal representatives of all are liable jointly
Which section follows Section 42 and relates to the right of contribution between joint promisors?	Sec 43
Which provision deal with “Any one of joint promisors may be compelled to perform”?	Sec.43
The promisee can enforce joint liability from?	Any one or more jointly or severally under Section 43
In a joint promise, A dies. His legal heirs are minors. Who fulfills A’s part of the promise?	Surviving promisors and legal representatives of A
Under Section 43, the liability of joint promisors is?	Joint and several
The promisee can enforce the entire contract?	Against all or any one of the joint promisors
A, B, and C jointly promise to pay ₹90,000 to D. D can recover the whole amount?	From any one or all of A, B, and C
Whether section 43 shall prevent a surety from recovering from his principal, payments made by the surety on behalf of the principal, or entitle the principal to recover anything from the surety on account of payments made by the principal?	Nothing in this section shall prevent a surety.
A, B and C jointly promise to pay D the sum of 3,000 rupees. C is compelled to pay the whole.	A is insolvent, but his assets are sufficient to pay one-half of his debts. C is entitled to receive 500 rupees from A’s estate, and 1,250 rupees from B.
A, B and C are under a joint promise to pay D 3,000 rupees. C is unable to pay anything, and A is compelled to pay the whole.	A is entitled to receive 1,500 rupees from B.
A, B and C are under a joint promise to pay D 3,000 rupees, A and B being only sureties for C. C fails to pay. A and B are compelled to pay the whole sum.	They are entitled to recover it from C.
If one joint promisor is made to pay the entire amount, he can?	Sue the other joint promisors for their share
The principle of contribution among joint promisors arises?	When one promisor performs more than his share
When Section 43 does not apply?	There is an express agreement stating different liabilities
Which case law explains Section 43?	Lachhmi v. Durga Prasad
Under Section 43, if a joint promisor is insolvent, then?	Remaining joint promisors share his default equally
A contract mentions A will pay 60%, B 40%, and C nothing. Who can be sued under Section 43?	Only A and B as per the contract
In Lachhmi v. Durga Prasad, the Supreme Court held?	Joint promisors are liable to contribute equally
A and B are joint promisors. If A dies, who is liable?	Legal representatives of A and B jointly
In the absence of a contract to the contrary, each joint promisor?	Is Liable for the whole
Which provision deal with “Effect of release of one joint promisor”?	Sec.44
According to Section 44, when one joint promisor is released by the promisee?	Other joint promisors remain liable
The released joint promisor remains?	Liable to co-promisors for contribution
A, B, and C jointly promise to pay ₹90,000. The promisee releases A. Who remains liable to pay the debt to the promisee?	Only B and C
Release of one joint promisor by the promisee?	Does not discharge the other joint promisors
If the promisee releases A, a joint promisor, from a joint obligation with B and C, then?	A is still liable to B and C for contribution
Under Section 44, if a promisee releases one joint promisor without the consent of others?	It is valid and does not affect other promisors
The Indian approach in Section 44 aims to protect?	The promisee’s right to recover fully from remaining promisors
A, B, and C jointly owe ₹60,000 to D. D releases B. Can A and C still be sued for the full amount by D?	Yes, D can sue A and C for full amount
The principle in Section 44 reflects which maxim?	"Ut res magis valeat quam pereat" is a Latin legal maxim meaning "it is better for a thing to have effect than to be made void."
Which provision deal with “Devolution of joint rights”?	Sec.45
When a promise is made to two persons jointly, during their joint lives, who can claim performance?	Both jointly
After the death of one of the joint promisees, who is entitled to claim performance of the contract?	Surviving promisee(s)
Upon death of the last surviving promisee, the right to claim performance passes to?	Legal representatives of all joint promisees jointly
What is correct regarding joint promisees under Section 45?	Survivors have exclusive rights after one’s death
A promises to deliver goods to B and C jointly. B dies. The right to receive goods is now vested in?	C as surviving promisee
A, in consideration of 5,000 rupees, lent to him by B and C, promises B and C jointly to repay them that sum with interest on a day specified. B dies.	The right to claim performance rests with B’s representative jointly with C during C’s life, and after the death of C with the representatives of B and C jointly.
Which case law relates to devolution of joint rights?	Shrinivas Das v. Narayan Das
The legal maxim relevant to Section 45 is?	“Jus accrescendi”, in Roman law, is the right of survivorship
Can the legal representative of a deceased joint promisee sue alone for performance?	No
In case of joint rights, performance must be demanded by?	All surviving joint promisees jointly
If the contract is silent, the general rule of Section 45 applies?	Automatically
The doctrine under Section 45 applies unless?	A contrary intention appears from the contract
Section 45 of the Indian Contract Act is an exception to which general principle?	Individual rights in contract
A and B are joint promisees. If A dies, can B file a suit alone for performance?	Yes, as surviving promisee

TIME AND PLACE FOR PERFORMANCE
Which provision deal with “Time for performance of promise, when no application is to be made and no time is specified”?	Sec.46
According to Section 46, if no time is specified, the promisor must perform?	Within a reasonable time
What is considered a "reasonable time" for performance is?	A question of fact
A contract for supply of perishable goods without a specific date must be performed?	Within reasonable time depending on nature of goods
Section 46 implies that?	Where time is not fixed, performance is expected reasonably
In which case was it held that “reasonable time” depends on the facts and circumstances of each case?	State of Kerala v. T.M. Chacko
A contracts to deliver wheat to B without specifying any date. B does not have to demand performance. A must deliver?	Within a reasonable time
Which legal maxim is associated with Section 46?	Tempus est mensura negoti (Time is the measure of business)
A agrees to construct a house for B. No time for performance is fixed. Under Section 46, A must perform?	Within reasonable time considering industry norms
If A agrees to deliver goods to B and no time is fixed, but A delays delivery for 2 months without excuse. Under Section 46?	A is in breach if delay is beyond reasonable time
Which provision deal with “Time and place for performance of promise, where time is specified and no application to be made”?	Sec.47
When Section 47 applies?	The promisor has agreed to perform on a fixed day without any application
According to Section 47, when time and date are fixed and no application is required?	Promisor must perform at proper place and usual business hours
Under Section 47, what is meant by “usual hours of business”?	Hours commonly accepted in the relevant business or trade
If promisor fails to perform on the specified date without application, it results in?	Breach of contract
A promises to deliver goods at B’s warehouse on the first January. On that day A brings the goods to B’s warehouse, but after the usual hour for closing it, and they are not received.	A has not performed his promise.
If the promisor offers performance at midnight, is it valid under Section 47?	No, performance must be within usual business hours
The place of performance under Section 47?	As agreed or customary for such transactions
What is the legal status of a contract when promisor fails to perform on fixed date without application from promisee?	Breached
Which provision deal with “Application for performance on certain day to be at proper time and place”?	Sec.48
Under Section 48, who must apply for performance when time is fixed and promisor has not undertaken to perform without application?	Promisee
What is the effect if the promisee fails to apply at the proper time and place under Section 48?	The promisor is discharged from liability
The question “what is a proper time and place” is, in each particular case?	a question of fact.
Which is the correct statement regarding application under Section 48?	Application must be made during working hours at a proper location
If performance is due on 15th July and promisee applies at 10 PM, the application is?	Invalid – not within usual business hours
“Usual hours of business” under Section 48 are interpreted as?	Industry-standard hours relevant to the contract
In Behari Lal v. Ram Gopal, the court held that?	Promisee must apply for performance at usual hours and proper place
Under Section 48, what is the consequence if the promisee applies after usual business hours?	Promisor is not bound to perform
Which provision deal with “Place for performance of promise, where no application to be made and no place fixed for performance”?	Sec.49
Under Section 49, if no place is fixed for performance, who must initiate communication to fix the place?	Promisor
According to Section 49, the promisee is required to?	Wait for the promisor’s application to fix a reasonable place
When Section 49 applies?	Performance is without application and place is not fixed
In Harkishandas v. Bansidhar (1888), the principle under Section 49 was established to mean?	Promisor must seek reasonable place from promise
A undertakes to deliver a thousand maunds of jute to B on a fixed day.	A must apply to B to appoint a reasonable place for the purpose of receiving it, and must deliver it to him at such place.
What is meant by “reasonable place” under Section 49?	Any place mutually convenient or customary for such contracts
Which provision deal with “Performance in manner or at time prescribed or sanctioned by promisee”?	Sec.50
Under Section 50, a contract may be performed?	In any manner/time prescribed or sanctioned by the promise
In case the promisee sanctions a different time or method of performance?	Performance is valid if done as per such sanction
Which case law supports the principle of Section 50?	Hind Construction Contractors v. State of Maharashtra (1979)
Section 50 allows flexibility in?	Time and manner of performance
B owes A 2,000 rupees. A desires B to pay the amount to A’s account with C, a banker. B, who also banks with C, orders the amount to be transferred from his account to A’s credit, and this is done by C. Afterwards, and before A knows of the transfer, C fails.	There has been a good payment by B.
A and B are mutually indebted. A and B settle an account by setting off one item against another, and B pays A the balance found to be due from him upon such settlement.	This amounts to a payment by A and B, respectively, of the sums which they owed to each other.
A owes B 2,000 rupees. B accepts some of A’s goods in reduction of the debt.	The delivery of goods operates as a part payment.
A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post.	The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A.
In which case it was held that performance according to the modified direction of promisee is valid?	Hind Construction Contractors v. State of Maharashtra
Which party holds the discretion under Section 50 for altering manner/time of performance?	Promisee

PERFORMANCE OF RECIPROCAL PROMISS
Which provision deal with “Promisor not bound to perform, unless reciprocal promisee ready and willing to perform”?	Sec.51
Under Section 51, if the promisee is unwilling or unable to perform his promise, the promisor?	Is not bound to perform his promise
The key condition for enforcement of a promise under Section 51 is?	The promisee must be ready, willing, and able to perform his part
If the promisee is ready and willing but the promisor refuses to perform, then?	The promisor is in breach
In Bomanji Master v. Rawlinson (1882), the court held that?	Promisee’s readiness and willingness is essential for promisor’s obligation
A and B contract that A shall deliver goods to B to be paid for by B on delivery.	A need not deliver the goods, unless B is ready and willing to pay for the goods on delivery. B need not pay for the goods, unless A is ready and willing to deliver them on payment.
A and B contract that A shall deliver goods to B at a price to be paid by instalments, the first instalment to be paid on delivery.	A need not deliver, unless B is ready and willing to pay the first instalment on delivery. B need not pay the first instalment, unless A is ready and willing to deliver the goods on payment of the first instalment.
Which principle is illustrated by Section 51?	Mutuality of obligation
What happens if the promisee is ready and willing but fails to perform due to unavoidable circumstances?	Contract is frustrated
Section 51 applies primarily to?	Contracts involving reciprocal promises
In H. Anwar v. Union of India (AIR 1968 SC 649), the Supreme Court observed that?	Promisee’s readiness and willingness is a condition precedent to promisor’s performance
Which provision deal with “Order of performance of reciprocal promises”?	Sec.52
Under Section 52, when the order of performance of reciprocal promises is fixed by contract?	They must be performed in that order
If no express order is fixed in a contract, reciprocal promises must be performed?	In the order which the nature of transaction requires
In Kedarnath v. Gorie Mohammad (1887), the court held that?	The nature of transaction determines order of performance
A and B contract that A shall build a house for B at a fixed price.	A’s promise to build the house must be performed before B’s promise to pay for it.
A and B contract that A shall make over his stock-in-trade to B at a fixed price, and B promises to give security for the payment of the money.	A’s promise need not be performed until the security is given, for the nature of the transaction requires that A should have security before he delivers up his stock.
Where performance by one party is dependent upon prior performance by the other, the contract is?	Conditional reciprocal
In a contract to construct a building, the builder demands payment before starting work. Under Section 52?	Work must begin first if not expressly agreed
The expression “the nature of the transaction requires” refers to?	Common intention of parties
If A agrees to deliver goods to B, and B agrees to pay on delivery, which must be performed first?	Delivery
Which provision deal with “Liability of party preventing event on which the contract is to take effect”?	Sec.53
Under Section 53, when a party to a contract prevents the performance by the other?	The contract becomes voidable at the option of the party prevented
If A prevents B from fulfilling his contractual obligation, then?	B can rescind the contract and claim compensation
Section 53 deals with?	Prevention of performance by one party
In the case of Mohanlal v. Gunga Pershad (1881), the principle established was?	If one party prevents performance, the other is discharged
A and B contract that B shall execute certain work for A for a thousand rupees. B is ready and willing to execute the work accordingly, but A prevents him from doing so.	The contract is voidable at the option of B; and, if he elects to rescind it, he is entitled to recover from A compensation for any loss which he has incurred by its non-performance.
A contracts to supply raw materials to B, but then prevents B from taking delivery. What are B's rights under Section 53?	He can treat contract as voidable and claim damages
A contracts to let B enter his warehouse to pick goods, but locks it to prevent B. Under Section 53?	A is liable for compensation
What best reflects Section 53?	Prevention by one party allows the other to avoid the contract
The doctrine under Section 53 is based on?	Prevention principle in equity
Section 53 enshrines which legal maxim?	Nullus commodum capere potest de injuria sua propria (No one can take advantage of his own wrong)
The burden of proof to establish prevention under Section 53 lies on?	The party alleging prevention
A contract states A must provide a license to B to operate a business. A fails to get it deliberately. The contract is?	Voidable by B
Which provision deal with “Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises”?	Sec.54
Under Section 54, if the party required to perform first fails to do so?	The other party is discharged and can claim compensation
If A is to deliver goods before B pays the price, and A fails to deliver, then?	B can avoid the contract and sue A
What will be the consequences when a contract consists of reciprocal promises, such that one of them cannot be performed, or that its performance cannot be claimed till the other has been performed, and the promisor of the promise last mentioned fails to perform it?	such promisor cannot claim the performance of the reciprocal promise, and must make compensation to the other party to the contract for any loss which such other party may sustain by the non-performance of the contract.
A hires B’s ship to take in and convey, from Calcutta to the Mauritius, a cargo to be provided by A, B receiving a certain freight for its conveyance. A does not provide any cargo for the ship.	A cannot claim the performance of B’s promise, and must make compensation to B for the loss which B sustains by the non-performance of the contract.
A contracts with B to execute certain builder’s work for a fixed price, B supplying the scaffolding and timber necessary for the work. B refuses to furnish any scaffolding or timber, and the work cannot be executed.	A need not execute the work, and B is bound to make compensation to A for any loss caused to him by the non-performance of the contract.
A contracts with B to deliver to him, at a specified price, certain merchandise on board a ship which cannot arrive for a month, and B engages to pay for the merchandise within a week from the date of the contract.	B does not pay within the week. A’s promise to deliver need not be performed, and B must make compensation.
A promises B to sell him one hundred bales of merchandise, to be delivered next day, and B promises A to pay for them within a month. A does not deliver according to his promise.	B’s promise to pay need not be performed, and A must make compensation.
What is a correct statement under Section 54?	If the first promise is not performed, the second party need not perform and may sue for loss
Which doctrine is reflected in Section 54?	Discharge of reciprocal obligations due to breach
When Section 54 comes into play?	When there is a sequence of performance required, and the first party defaults
A was to construct a shed before B supplied machinery. A fails to construct. What can B do?	Refuse to perform and sue A
Section 54 applies to?	Contracts with dependent reciprocal promises
The promise which is to be performed first is?	A condition precedent to the other
Which case clearly established the principle of Section 54?	Rajasthan Co-op Dairy Federation Ltd. v. Maha Laxmi
Which provision deal with “Effect of failure to perform at fixed time, in contract in which time is essential”?	Sec.55
Under Section 55 of the Indian Contract Act, when time is of the essence of a contract and the promisor fails to perform on time, the contract becomes?	Voidable at the option of the promisee
If time is not essential, and promisor fails to perform the contract in time, the promisee?	Can claim compensation for loss caused by the delay
Acceptance of delayed performance without protest implies?	Waiver of right to claim compensation
When time is considered to be of the essence of the contract?	Parties expressly agree so The nature and circumstances require so Time is the foundation of the contract
In Behari Lal v. Ramcharan Lal, the court held that?	Time was not of the essence due to conduct of parties
In which case did the court rule that mere mentioning of a date does not make time the essence of contract?	Gomathinayagam Pillai v. Palaniswami Nadar
In K.S. Vidyanadam v. Vairavan, what did the Supreme Court hold?	Repeated extensions show time was not essence
A contracts to deliver goods to B on 1st June. A fails but B accepts delivery on 10th June without protest.	B waives right to compensation
A agrees to construct a building for B by 31st March, time being essential. A fails to complete it by that time. What are B's remedies?	Terminate the contract + claim compensation
In a contract of sale of perishable goods, time of delivery is agreed as 24 hours. Seller delivers after 36 hours. What is the legal consequence?	Buyer can reject and claim damages
Where time is not of the essence, and the contract is performed late, the remedy available is?	Only compensation for any loss caused
If a promisee accepts performance beyond the agreed time, and records a protest, he can?	Claim compensation
Which provision deal with “Agreement to do impossible act”?	Sec.56
Section 56 of the Indian Contract Act is based on which legal doctrine?	Doctrine of Frustration
A contract to do an act which is impossible in itself is?	Void
What is NOT a valid ground of supervening impossibility under Section 56?	Commercial unprofitability
Supervening impossibility results in?	Contract becoming void
If a party knows that the act he has promised to do is impossible or unlawful, he is liable to compensate the other for?	Any loss sustained
In which case did the Supreme Court of India lay down the principle that commercial hardship is not frustration?	Naihati Jute Mills Ltd. v. Hyaliram Jagannath
In Satyabrata Ghose v. Mugneeram Bangur, the court held?	Impossibility includes impracticability from a broad perspective
Krell v. Henry is a leading case on?	Frustration due to failure of purpose
In which Indian case did the court say that the performance of the contract becoming unlawful due to government policy amounts to frustration?	Boothalinga Agencies v. V.T.C. Poriaswami Nadar
What will be the consequences where one person has promised to do something which he knew, or, with reasonable diligence, might have known, and which the promisee did not B know, to be impossible or unlawful?	such promisor must make compensation to such promisee for any loss which such promisee sustains through the nonperformance of the promise.
A contracts to marry B, but before the marriage date, A dies. What is the legal position of the contract?	Contract becomes void due to supervening impossibility
A agrees with B to discover treasure by magic.	The agreement is void.
A and B contract to marry each other. Before the time fixed for the marriage, A goes mad.	The contract becomes void.
A contracts to marry B, being already married to C, and being forbidden by the law to which he is subject to practise polygamy.	A must make compensation to B for the loss caused to her by the non-performance of his promise.
A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the country in which the port is situated.	The contract becomes void when war is declared.
A contracts to act at a theatre for six months in consideration of a sum paid in advance by B. On several occasions A is too ill to act.	The contract to act on those occasions becomes void.
A contracts with B to supply goods from a foreign country. Before delivery, war breaks out and imports are banned. The contract?	Becomes void due to impossibility
A agrees to sell a specific painting to B, but it is destroyed by fire before delivery. The contract is?	Void due to impossibility
A contracts with B to deliver wheat. Later, wheat prices triple, making it uneconomical to supply. The contract?	Is not frustrated, must be performed
A agrees to perform in a concert. Before the date, he suffers a paralytic stroke and cannot sing. This is an example of?	Frustration due to incapacity
Which provision deal with “Reciprocal promise to do things legal, and also other things illegal”?	Sec.57
Under Section 57, a contract involving both legal and illegal reciprocal promises is?	Partially void (legal part enforceable, illegal part void)
When parties agree to perform both legal and illegal acts under a reciprocal promise, the legal part?	Remains enforceable
In a reciprocal promise, if the illegal part is inseparably linked to the legal part, then the contract is?	Entirely void
In Gherulal Parakh v. Mahadeodas Maiya, what did the Supreme Court hold?	A lawful part of a contract can be enforced if separable from the unlawful part
In Rajeev Kumar v. Pradeep Kumar, the court ruled?	Illegal portion of the contract can be severed if not central to the agreement
A agrees to supply medicines to B, and also to smuggle narcotics for B. Which part of the agreement is enforceable?	Supply of medicines only
A and B agree that A shall sell B a house for 10,000 rupees, but that, if B uses it as a gambling house, he shall pay A 50,000 rupees for it.	The first set of reciprocal promises, namely, to sell the house and to pay 10,000 rupees for it, is a contract. The second set is for an unlawful object, namely, that B may use the house as a gambling house, and is a void agreement.
A and B enter into an agreement where A agrees to sell legal software and also counterfeit CDs?	Part regarding legal software is enforceable
A and B enter into an agreement to lease a shop (legal), and also to use it for running an illegal betting business (illegal). What is the legal effect?	Leasing part is enforceable if severable
A promises to supply arms to B (legal), and to provide fake licenses (illegal). B sues for failure to supply arms. Is B entitled to remedy?	Yes, if supply of arms is separable from the illegal promise
Which provision deal with “Alternative promise, one branch being illegal”?	Sec.58
Under Section 58 of the Indian Contract Act, if one branch of an alternative promise is illegal, the contract is?	Enforceable as to the legal part only
An alternative promise includes?	Promise with two or more options of performance
What is the primary distinction between Section 57 and Section 58?	Section 57 applies to reciprocal promises, Section 58 to alternative promises
A promises to give ₹10,000 to B if B marries C or robs a bank. Which branch is enforceable?	Marrying C
Which case laid down that if one of the alternatives is legal, that part is enforceable even if the other part is illegal?	Beckett v. Hoppner
In Indian law, the principle of severability as applied in Section 58 is derived from?	Gherulal Parakh v. Mahadeodas Maiya
A promises to deliver a car or smuggle gold for B. What is the enforceable branch?	Delivery of car
A agrees to pay B ₹1,00,000 if B publishes a legal journal or defames X. Which branch is void?	Publishing legal journal
A enters a contract with B, promising to transport legal goods or counterfeit currency. B sues A for not transporting the legal goods. The court will?	Enforce only the legal branch
A and B agree that A shall pay B 1,000 rupees, for which B shall afterwards deliver to A either rice or smuggled opium.	This is a valid contract to deliver rice, and a void agreement as to the opium.

APPROPRIATION OF PAYMENTS
Which provision deal with “Application of payment where debt to be discharged is indicated”?	Sec.59
If a debtor makes payment and clearly specifies which debt it should be applied to, the creditor?	Must apply it as per debtor’s direction
In the absence of any indication from the debtor, application of payment is governed by?	Section 60
What is essential for Section 59 to apply?	Debtor must indicate the debt to which payment should be applied
Under Section 59, when does the creditor have no discretion in applying payment?	When debtor specifies which debt is to be discharged
In Seth Ramdayal v. Maji Devdiji, the Supreme Court held that?	Once debtor indicates the debt to be discharged, the creditor must follow
In Meka Venkatadri v. Raja Parthasarathi Bahadur, it was held that?	Payment must be applied to the debt indicated by the debtor
A owes B ₹5,000 under loan “X” and ₹3,000 under loan “Y”. A pays ₹3,000 and specifies it is for loan “Y”. B must?	Apply it to loan “Y”
A makes a payment of ₹10,000 and says it must go toward his “business loan.” What must B (the creditor) do?	Apply it to the business loan
A owes B ₹10,000 (time-barred) and ₹5,000 (due). A pays ₹5,000 stating it is for the due debt. Can B apply it to the time-barred debt?	No, because debtor has directed application
Assertion (A): If a debtor specifies the debt to be discharged at the time of payment, the creditor must apply it accordingly. Reason (R): Section 59 mandates that creditor’s discretion is subject to debtor’s express or implied direction.	A and R are true
A owes B, among other debts, 1,000 rupees upon a promissory note which falls due on the first June. He owes B no other debt of that amount. On the first June, A pays to B 1,000 rupees.	The payment is to be applied to the discharge of the promissory note.
A owes to B, among other debts, the sum of 567 rupees. B writes to A and demands payment of this sum. A sends to B 567 rupees.	This payment is to be applied to the discharge of the debt of which B had demanded payment.
Which provision deal with “Application of payment where debt to be discharged is not indicated”?	Sec.60
When Section 60 applies?	Debtor gives no direction and no circumstances imply any application
Under Section 60, if a debtor does not indicate the debt to be discharged, who has the right to appropriate the payment?	The creditor
If a debtor fails to specify which debt is to be paid, and multiple debts exist, creditor may apply the payment?	To any lawful debt, even if barred by limitation
In Section 60, what kind of debts can the creditor apply the payment to?	Any lawful debt actually due and payable
A owes B three debts. A makes a payment of ₹5,000 but does not specify which debt it is for. B applies it to a time-barred debt. Is this valid?	Yes
In which case did the court uphold the creditor’s right to apply payment to a time-barred debt under Section 60?	K. Sitaram v. Britcha Mistry
In Sundaram Finance Ltd. v. State of Kerala, the Supreme Court clarified that?	Appropriation to time-barred debts is permitted
Which case confirmed that creditor’s right of appropriation is valid even if the debt is not legally recoverable due to limitation?	K. Sitaram v. Britcha Mistry
What was the key legal issue in K. Sitaram v. Britcha Mistry?	Whether Section 60 allows creditor to appropriate towards time-barred debt
A debtor owes ₹10,000 on loan A (time-barred), ₹8,000 on loan B (due), and ₹6,000 on loan C (installment). He pays ₹8,000 with no direction. Can the creditor apply it to loan A?	Yes, under Section 60
A makes a payment without direction. B applies it to an older debt barred by limitation. Later, A objects. Is B's appropriation valid?	Yes, Section 60 allows such appropriation
A debtor pays ₹2,000 to a creditor without specifying any application. The creditor has two debts: one lawful and due, another unlawful. What should the creditor do?	Apply it to lawful debt
A payment made with no indication and no surrounding circumstances implies?	Creditor may apply it to any lawful debt, whether barred or not
Which provision deal with “Application of payment where neither party appropriates”?	Sec.61
When Section 61 applies?	Neither debtor nor creditor appropriates the payment
According to Section 61, when no party appropriates the payment, the payment is applied?	In order of time
Under Section 61, if multiple debts are of equal standing, the payment is applied?	Proportionately among them
If both debtor and creditor are silent on application of payment, how will the law apply the payment?	Chronologically by debt age
Which debts will be discharged first under Section 61?	The oldest debt
In State of Madras v. Gannon Dunkerley & Co. (1959), which principle relevant to appropriation was discussed?	Order of appropriation where no party appropriates
In which case did the court affirm that when neither party appropriates, appropriation will be made in order of time?	State of Madras v. Gannon Dunkerley & Co.
Which case law confirms the rule of proportional distribution under Section 61 when debts are of equal standing?	State of Madras v. Gannon Dunkerley & Co.
A owes B the following debts: ₹5,000 (2018), ₹3,000 (2020), ₹2,000 (2022). A pays ₹4,000 without any direction, and B does not appropriate either. As per Section 61, payment applies to?	₹4,000 of 2018 debt
A owes two debts of ₹10,000 each, both contracted on the same date. He pays ₹5,000 without indicating anything, and creditor also makes no appropriation. The amount will be applied?0	Equally between both debts
A makes a payment without directing its application. B, the creditor, also does not appropriate it. The court must apply it to?	The oldest debt
Assertion (A): When debts are of equal standing and no party appropriates, the payment is divided proportionately. Reason (R): Section 61 mandates that equal debts receive equal share if no intention is shown.	A and R are true

CONTRACT WHICH NEED NOT TO BE PERFORMED
Which provision deal with “Effect of novation, rescission, and alteration of contract”?	Sec.62
When can a contract be rescinded under Section 62?	By mutual agreement of parties
In novation, the new contract must be?	Valid and enforceable
When a new contract is substituted for an old one under Section 62?	Only the new contract needs performance
In which case was novation discussed by the Supreme Court of India?	Ganga Saran v. Firm Ram Charan Ram Gopal
In Scarf v. Jardine (1882), the principle established was?	Novation must be agreed by all parties
In Ganga Saran v. Firm Ram Charan Ram Gopal, the Supreme Court ruled that?	New contract must be enforceable for novation
A owes money to B under a contract. It is agreed between A, B and C that B shall thenceforth accept C as his debtor, instead of A.	The old debt of A to B is at an end, and a new debt from C to B has been contracted.
A owes B 10,000 rupees. A enters into an arrangement with B and gives B a mortgage of his (A’s) estate for 5,000 rupees in place of the debt of 10,000 rupees.	This is a new contract and extinguishes the old.
A owes B 1,000 rupees under a contract. B owes C 1,000 rupees B orders A to credit C with 1,000 rupees in his books, but C does not assent to the arrangement.	B still owes C 1,000 rupees, and no new contract has been entered into.
A owes B ₹50,000. Later, they agree that C will now owe B and A will be discharged. This is an example of?	Novation
A and B contract for sale of goods. Later, they agree to change the payment terms. This is?	Alteration
A contract between ‘A’ and ‘B’ is cancelled by mutual consent. This is?	Rescission
A contract between A and B is altered without B’s consent. The result is?	Breach of contract
Under Section 62, if a contract is novated but the new contract is void, then?	The original contract revives
Whether Novation may include substitution of new parties to the contract?	True
Whether Rescission discharges parties from future obligations?	True
Which provision deal with “Promisee may dispense with or remit performance of promise”?	Sec.63
Which party under Section 63 is empowered to dispense with performance of a promise?	Promisee
Section 63 of the Indian Contract Act allows the promisee to?	Waive or remit the whole or part of performance
What is not permissible under Section 63?	Imposing new obligations without consent
Acceptance of lesser performance by promisee under Section 63 is?	Valid even without consideration
Which case is a landmark for understanding Section 63?	Hirachand Punamchand v. Temple
In Hirachand Punamchand v. Temple (1911), the Privy Council held?	Creditor can accept lesser amount from third party as satisfaction
In Jagad Bandhu Chatterjee v. Nilima Rani, it was held that?	Time extension under Section 63 does not need consideration
Which case established that a creditor may accept satisfaction from a third party under Indian law?	Hirachand Punamchand v. Temple
A owes B ₹10,000. B agrees to accept ₹7,000 in full satisfaction. Is A discharged?	Yes, A is discharged if B accepts ₹7,000 in full settlement
A contracts to deliver goods to B by 1st July. B extends the deadline to 10th July. Is this permissible under Section 63?	Yes
A owes B ₹5,000. C (a third party) pays ₹3,000, which B accepts in full satisfaction. Can B recover the balance from A?	No, if B accepted the payment in satisfaction
Under Section 63, the promisee’s acceptance of an alternative satisfaction is?	Sufficient to discharge the contract
A promises to paint a picture for B. B afterwards forbids him to do so?	A is no longer bound to perform the promise.
A owes B 5,000 rupees. A pays to B, and B accepts, in satisfaction of the whole debt, 2,000 rupees paid at the time and place at which the 5,000 rupees were payable.	The whole debt is discharged.
A owes B 5,000 rupees. C pays to B 1,000 rupees, and B accepts them, in satisfaction of his claim on A.	This payment is a discharge of the whole claim.
A owes B, under. a contract, a sum of money, the amount of which has not been ascertained. A, without ascertaining the amount, gives to B, and B, in satisfaction thereof, accepts, the sum of 2,000 rupees.	This is a discharge of the whole debt, whatever may be its amount.
A owes B 2,000 rupees, and is also indebted to other creditors. A makes an arrangement with his creditors, including B, to pay them a composition of eight annas in the rupee upon their respective demands.	Payment to B of 1,000 rupees is a discharge of B’s demand.
Which provision deal with “Consequences of rescission of voidable contract”?	Sec.64
Section 64 of the Indian Contract Act deals with?	Rescission of a voidable contract
When a voidable contract is rescinded by the party entitled to avoid it?	The rescinding party must restore benefits received
Under Section 64, who is relieved from performance after rescission?	The promisor under the rescinded contract
The restoration of benefit under Section 64 is a principle derived from?	Unjust enrichment
A voidable contract once rescinded?	Ceases to have legal effect
In which case did the court affirm that benefits obtained under a rescinded contract must be returned?	Mohori Bibee v. Dharmodas Ghose
In Narasamma v. P. Chenna Reddy, what was highlighted regarding rescission?	Restitution under Section 64 is mandatory
A enters into a contract with B by coercion. Later, A rescinds it. What is B's obligation?	Restore any benefit received
A minor enters into a contract and receives ₹5,000. He later rescinds it. Under Section 64:	No restitution due to incapacity
A contract was entered into through fraud. The innocent party rescinds it. What must the rescinding party do under Section 64?	Return any benefits received
A, by misrepresentation, enters into a contract with B. B receives ₹10,000 benefit. Upon rescinding, B must?	Return the ₹10,000 to A
A contract becomes voidable due to undue influence. The influenced party cancels the contract. Is the other party discharged from their obligations?	Yes, under Section 64
Which provision deal with “Obligation of person who has received advantage under void agreement, or contract that becomes void”?	Sec.65
Section 65 of the Indian Contract Act deals with?	Quasi-contractual obligations
Under Section 65, when must the advantage be restored?	When the contract becomes void or is discovered to be void
What must the person receiving advantage under a void agreement do under Section 65?	Restore the benefit or compensate for it
Section 65 applies to?	Void agreements and contracts that become void
Which of the following does not attract Section 65?	Contract with a minor
A pays B 1,000 rupees in consideration of B’s promising to marry C, A’s daughter. C is dead at the time of the promise.	The agreement is void, but B must repay A the 1,000 rupees.
A contracts with B to deliver to him 250 maunds of rice before the first of May. A delivers 130 maunds only before that day, and none after. B retains the 130 maunds after the first of May.	He is bound to pay A for them.
A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her a hundred rupees for each night’s performance. On the sixth night, A wilfully absents herself from the theatre, and B, in consequence, rescinds the contract.	B must pay A for the five nights on which she had sung.
A contracts to sing for B at a concert for 1,000 rupees, which are paid in advance. A is too ill to sing.	A is not bound to make compensation to B for the loss of the profits which B would have made if A had been able to sing, but must refund to B the 1,000 rupees paid in advance.
A contracts with B to sell a parcel of land, but it later turns out the land legally belongs to C. A had already received ₹1,00,000. Under Section 65?	A must return the money
A pays B ₹50,000 under a contract that is later declared void by court. What is B’s obligation under Section 65?	Return ₹50,000 or compensate
A minor receives ₹10,000 in a contract. Can Section 65 be applied for restitution?	No
A and B enter into a contract that becomes void due to change in law. Who is bound under Section 65?	The party who benefited
A agrees to sell B opium, which is later declared illegal. Who bears obligation under Section 65?	No one, as it’s an illegal agreement
Which provision deal with “Mode of communicating or revoking rescission of voidable contract”?	Sec.66
Section 66 of the Indian Contract Act deals with?	Communication or revocation of rescission of voidable contract
According to Section 66, rescission of a voidable contract should be communicated?	As per the same rules as offer and revocation of offer
The rules for communication of rescission under Section 66 are based on?	Section 4 and 5
Rescission of a voidable contract under Section 66 becomes effective?	When it is communicated to the other party
A enters into a voidable contract with B. A communicates rescission via email. The email is read by B the next day. When is the rescission effective?	When B reads it
A voidable contract is rescinded by X but revoked before the rescission reaches Y. Is revocation valid?	Yes, as revocation reached before communication
In a voidable contract, if the rescission is not properly communicated, it is?	Invalid and ineffective
A contract is voidable at the option of party A. A sends notice of rescission but B never receives it. What is the status?	No effective rescission
In Bhupinder Singh v. Jarnail Singh, the court held that?	Communication of rescission must follow the rules of offer
Which case emphasized that rescission must be communicated effectively like revocation of offer?	Bhupinder Singh v. Jarnail Singh
Which provision deal with “Effect of neglect of promisee to afford promisor reasonable facilities for performance”?	Sec.67
Under Section 67, if the promisee neglects or refuses to provide reasonable facilities to the promisor for performance, then:	Promisor can claim compensation for loss caused by such neglect or refusal
What does the term “reasonable facilities” in Section 67 imply?	Facilities that are practicable and necessary to perform the contract
Section 67 protects?	Promisor only
A promises to deliver goods to B, but B refuses to allow A’s servant entry to the warehouse to load goods. What is the effect according to Section 67?	B is liable to compensate A for any loss due to refusal
A agrees to paint B’s house. B refuses to provide water and electricity which are reasonably necessary. What remedy is available to A?	A can claim compensation for loss caused by B’s refusal
A contracts with B to repair B’s house. B neglects or refuses to point out to A the places in which his house requires repair.	A is excused for the non-performance of the contract if it is caused by such neglector refusal.
B prevents A from accessing the land for contract performance causing delay. A completes late. Under Section 67, is A liable for delay?	No, if delay caused by B’s neglect
Assertion (A): The promisor is not responsible for non-performance if the promisee neglects to provide reasonable facilities. Reason (R): Section 67 excuses promisor from performance in such cases.	Both A and R true and R is correct explanation of A
In which case did the court hold that a promisor is entitled to compensation if the promisee obstructs or refuses reasonable facilities?	Gujarat Bottling Co. Ltd. v. Coca Cola Co.
The principle of Section 67 was applied in which judgment to award compensation for loss due to obstruction by promisee?	K.K. Verma v. Union of India

CHAPTER-V
OF CERTAIN RELATION RESEMBLING THOSE CREATED BY CONTRACT
Which provision deal with “Claim for necessaries supplied to person incapable of contracting, or on his account”?	Sec.68
Under Section 68, reimbursement for necessaries can be claimed?	From the incapable person’s property
The term "necessaries" under Section 68 refers to?	Things suitable to the condition in life
The supplier of necessaries is?	Entitled to reasonable reimbursement
A supplies B, a lunatic, with necessaries suitable to his condition in life.	A is entitled to be reimbursed from B’s property.
A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life.	A is entitled to be reimbursed from B’s property.
A, a minor, is supplied with food and medicines during illness by B. Can B claim reimbursement under Section 68?	Yes, from minor’s property
A supplies costly designer clothes to a wealthy minor. Can A claim reimbursement under Section 68?	No, clothes are not necessaries
What type of things will not be treated as “necessaries” under Section 68?	Expensive jewellery for fashion
B supplies a minor with legal textbooks needed for his law degree. The minor has ancestral property. Is B entitled to reimbursement?	Yes, under Section 68
Assertion (A): A minor’s estate is liable for necessaries supplied. Reason (R): Section 68 creates an equitable remedy for reimbursement from property.	Both A and R are true, and R is correct explanation
In which case did the court hold that a person supplying necessaries to a minor is entitled to reimbursement from the minor’s property?	Nash v. Inman
Which Indian case clarified that necessaries are to be judged based on lifestyle and social status?	Srikakulam Subrahmanyam v. Kurra Subba Rao
A minor cannot be held personally liable, but what can be made liable under Section 68?	His property
Which provision deal with “Reimbursement of person paying money due by another, in payment of which he is interested”?	Sec.69
When Section 69 applies?	A person pays money for another person in which he has an interest
Under Section 69, the person paying the money?	Must have an interest in the payment
When the Reimbursement under Section 69 is allowed?	The person is interested and the payment was legally due by another
What Section 69 creates?	Quasi-contract
B holds land in Bengal, on a lease granted by A, the zamindar. The revenue payable by A to the Government being in arrear, his land is advertised for sale by the Government. Under the revenue law, the consequence of such sale will be the annulment of B’s lease. B, to prevent the sale and the consequent annulment of his own lease, pays to the Government the sum due from A.	A is bound to make good to B the amount so paid.
A, a tenant, pays property tax which B, the landlord, was bound to pay. A did so to avoid attachment of property. Is A entitled to reimbursement?	Yes, A was interested in the payment
X insures a car in Y’s name. Y fails to pay road tax. X pays it to avoid seizure, being interested in the vehicle. Can X recover under Section 69?	Yes
B owes Rs. 10,000 to C. A pays C on B’s behalf to avoid legal proceedings where A is a guarantor. Is A entitled to reimbursement?	Yes, because he had interest as guarantor
In which case was it held that the payer must be “interested” in making the payment to claim reimbursement?	Rajkot Municipality v. Maneklal
In Rajkot Municipality v. Maneklal, it was held that?	Person must be legally interested in the payment
Which case confirmed that quasi-contracts under Section 69 are based on the principle of unjust enrichment?	State of West Bengal v. B.K. Mondal & Sons
Which provision deal with “Obligation of person enjoying benefit of non-gratuitous act”?	Sec.70
What is not an essential condition under Section 70?	Gratuitous intention
Section 70 is based on the principle of?	Quantum meruit
The obligation under Section 70 arises even in the absence of?	Contractual relationship
Under Section 70, a person is bound to compensate or restore the benefit if?	He voluntarily enjoys the benefit of a lawful, non-gratuitous act
A paints B’s house by mistake believing it to be C’s, without intention to do so gratuitously. B watches without objection. Is B liable to pay?	Yes, because B enjoyed the benefit
A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.	He is bound to pay A for them.
A saves B’s property from fire. Will A is entitled to compensation from B, if the circumstances show that he intended to act gratuitously?	A is not entitled to compensation from B
A delivers goods to B by mistake. B consumes the goods. Can A claim compensation?	Yes, because benefit was accepted
In which case the Supreme Court held that Benefit enjoyed without formal contract still attracts compensation?	State of West Bengal v. B.K. Mondal & Sons (AIR 1962 SC 779)
In which case it was held that Government can be liable under quasi-contract for benefit received?	Mulamchand v. State of Madhya Pradesh (AIR 1968 SC 1218)
In which case did the court affirm that acceptance of benefit under a non-gratuitous act creates legal obligation?	State of West Bengal v. B.K. Mondal & Sons
Section 70 is based on the doctrine of?	Quantum meruit / unjust enrichment
Who bears the burden of proving that the act was not gratuitous under Section 70?	The person doing the act
Which provision deal with “Responsibility of finder of goods”?	Sec.71
Under Section 71, the finder of goods is treated as?	A bailee
What is not a duty of a finder of goods under Section 71?	To convert the goods for personal use
Under Section 71, which right is conferred upon the finder of goods?	Right to claim reward or lien
The responsibility of the finder begins when?	He voluntarily takes custody
A finder of goods is bound to?	Take reasonable steps to trace the owner
Which provision deal with “Liability of person to whom money is paid, or thing delivered, by mistake or under coercion”?	Sec.72
What is the responsibility of a person to whom money has been paid, or anything delivered, by mistake or under coercion?	must repay or return it.
A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C.	C is bound to repay the amount to B.
A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods.	He is entitled to recover so much of the charge as was illegally excessive.
Which leading English case established the principle of finder’s title against the world except true owner?	Armory v. Delamirie
Section 72 imposes liability on a person who receives?	Money paid by mistake or coercion
What is not covered under Section 72 of the ICA?	Gratuitous gifts
Under Section 72, if A pays ₹10,000 to B believing he owes B, but later finds he does not, B?	Must repay the amount
Whether Section 72 applies to money and goods?	Yes
In which case the Supreme Court held Money paid under mistake of law can be recovered under Section 72?	Sales Tax Officer v. Kanhaiya Lal (1959 AIR 135)
In which case the Privy Council ruled that Payment made under mistake of law is recoverable under Section 72?	Shiba Prasad Singh v. Srish Chandra Nandi (1949)
In which case did the court recognize recovery of money paid under coercion by government authority as permissible under Section 72?	State of MP v. Bhailal Bhai
In which case it was held that Section 72 applies even when there’s no contract?	Mulamchand v. State of MP (AIR 1968 SC 1218),
A mistakenly transfers ₹5,000 to B’s account. B notices the mistake and spends the amount. Under Section 72, B?	Must return the amount
A pays income tax twice by mistake. The tax authority is?	Obligated to refund under Section 72
Goods delivered under threat of illegal detention fall under?	Coercion
A bribes a government official and later wants the bribe back. Under Section 72, Can he recover?	Cannot recover due to illegality

CHAPTER-VI
OF THE CONSEQUENCES OF BREACH OF CONTRACT
Which provision deal with “Compensation for loss or damage caused by breach of contract”?	Sec.73
Compensation under Section 73 is not allowed for?	Remote and indirect loss not foreseeable
What is required to claim compensation under Section 73?	Damage or loss suffered directly or foreseeably
In Section 73, what type of damages is generally awarded?	Compensatory damages
The second part of Section 73 also applies to?	Quasi-contractual obligations
In which case, it was held that only direct or foreseeable damages can be awarded?	Hadley v. Baxendale (1854)
The principle in Hadley v. Baxendale was incorporated in India through?	Section 73 of the ICA
In which case the Supreme Court observed Loss must be real, not speculative?	Murlidhar Chiranjilal v. Harishchandra Dwarkadas (1962 AIR 366),
In which case it was held that Section 73 applies to government contracts too?	Union of India v. Sugauli Sugar Works (1976)
A contract to sell and deliver 50 maunds of saltpetre to B, at a certain price to be paid on delivery. A breaks his promise?	B is entitled to receive from A, by way of compensation, the sum, if any, by which the contract price falls short of the price for which B might have obtained 50 maunds of saltpetre of like quality at the time when the saltpetre ought to have been delivered.
A hires B’s ship to go to Bombay, and there take on board, on the first of January, a cargo, which A is to provide, and to bring it to Calcutta, the freight to be paid when earned. B’s ship does not go to Bombay, but A has opportunities of procuring suitable conveyance for the cargo upon terms as advantageous as those on which he had chartered the ship. A avails himself of those opportunities, but is put to trouble and expense in doing so.	A is entitled to receive compensation from B in respect of such trouble and expense.
A contracts to buy of B, at a stated price, 50 maunds of rice, no time being fixed for delivery. A afterwards informs B that he will not accept the rice if tendered to him.	B is entitled to receive from A, by way of compensation, the amount, if any, by which the contract price exceeds that which B can obtain for the rice at the time when A informs B that he will not accept it.
A contracts to buy B’s ship for 60,000 rupees, but breaks his promise.	A must pay to B, by way of compensation, the excess, if any, of the contract price over the price which B can obtain for the ship at the time of the breach of promise.
A, the owner of a boat, contracts with B to take a cargo of jute to Mirzapur, for sale at that place, starting on a specified day. The boat, owing to some avoidable cause, does not start at the time appointed, whereby the arrival of the cargo at Mirzapur is delayed beyond the time when it would have arrived if the boat had sailed according to the contract. After that date, and before the arrival of the cargo, the price of jute falls.	The measure of the compensation payable to B by A is the difference between the price which B could have obtained for the cargo at Mirzapur at the time when it would have arrived if forwarded in due course, and its market price at the time when it actually arrived.
A contract to repair B’s house in a certain manner, and receives payment in advance. A repairs the house, but not according to contract.	B is entitled to recover from A the cost of making the repairs conform to the contract.
A contract to let his ship to B for a year, from the first of January, for a certain price. Freights rise, and, on the first of January, the hire obtainable for the ship is higher than the contract price. A breaks his promise.	He must pay to B, by way of compensation, a sum equal to the difference between the contract price and the price for which B could hire a similar ship for a year on and from the first of January.
A contract to supply B with a certain quantity of iron at a fixed price, being a higher price than that for which A could procure and deliver the iron. B wrongfully refuses to receive the iron.	B must pay to A, by way of compensation, the difference between the contract price of the iron and the sum for which A could have obtained and delivered it.
A delivers to B, a common carrier, a machine, to be conveyed, without delay, to A’s mill informing B that his mill is stopped for want of the machine. B unreasonably delays the delivery of the machine, and A, in consequence, loses a profitable contract with the Government.	A is entitled to receive from B, by way of compensation, the average amount of profit which would have been made by the working of the mill during the time that delivery of it was delayed, but not the loss sustained through the loss of the Government contract.
A, having contracted with B to supply B with 1,000 tons of iron at 100 rupees a ton, to be delivered at a stated time, contracts with C for the purchase of 1,000 tons of iron at 80 rupees a ton, telling C that he does so for the purpose of performing his contract with B. C fails to perform his contract with A, who cannot procure other iron, and B, in consequence, rescinds the contract.	C must pay to A 20,000 rupees, being the profit which A would have made by the performance of his contract with B.
A contract with B to make and deliver to B, by a fixed day, for a specified price, a certain piece of machinery. A does not deliver the piece of machinery at the time specified, and in consequence of this, B is obliged to procure another at a higher price than that which he was to have paid to A, and is prevented from performing a contract which B had made with a third person at the time of his contract with A (but which had not been then communicated to A), and is compelled to make compensation for breach of that contract.	A must pay to B, by way of compensation, the difference between the contract price of the piece of machinery and the sum paid by B for another, but not the sum paid by B to the third person by way of compensation.
A, a builder, contracts to erect and finish a house by the first of January, in order that B may give possession of it at that time to C, to whom B has contracted to let it. A is informed of the contract between B and C. A builds the house so badly that, before the first of January, it falls down and has to be re-built by B, who, in consequence, loses the rent which he was to have received from C, and is obliged to make compensation to C for the breach of his contract.	A must make compensation to B for the cost of rebuilding the house, for the rent lost, and for the compensation made to C.
A sells certain merchandise to B, warranting it to be of a particular quality, and B, in reliance upon this warranty, sells it to C with a similar warranty. The goods prove to be not according to the warranty, and B becomes liable to pay C a sum of money by way of compensation.	B is entitled to be reimbursed this sum by A.
A contracts to pay a sum of money to B on a day specified. A does not pay the money on that day, B, in consequence of not receiving the money on that day, is unable to pay his debts, and is totally ruined.	A is not liable to make good to B anything except the principal sum he contracted to pay, together with interest up to the day of payment.
A contracts to deliver 50 maunds of saltpetre to B on the first of January, at a certain price. B afterwards, before the first of January, contracts to sell the saltpetre to C at a price higher than the market price of the first of January. A breaks his promise.	In estimating the compensation payable by A to B, the market price of the first of January, and not the profit which would have arisen to B from the sale to C, is to be taken into account.
A contracts to sell and deliver 500 bales of cotton to B on a fixed day. A knows nothing of B’s mode of conducting his business. A breaks his promise, and B, having no cotton, is obliged to close his mill.	A is not responsible to B for the loss caused to B by the closing of the mill.
A contracts to sell and deliver to B, on the first of January, certain cloth which B intends to manufacture into caps of a particular kind, for which there is no demand, except at that season. The cloth is not delivered till after the appointed time, and too late to be used that year in making caps.	B is entitled to receive from A, by way of compensation, the difference between the contract price of the cloth and its market price at the time of delivery, but not the profits which he expected to obtain by making caps, nor the expenses which he has been put to in making preparation for the manufacture.
A, a ship-owner, contracts with B to convey him from Calcutta to Sydney in A’s ship, sailing on the first of January, and B pays to A, by way of deposit, one-half of his passage-money. The ship does not sail on the first of January, and B, after being in consequence detained in Calcutta for some time and thereby put to some expense, proceeds to Sydney in another vessel, and, in consequence, arriving too late in Sydney, loses a sum of money.	A is liable to repay to B his deposit, with interest, and the expense to which he is put by his detention in Calcutta, and the excess, if any, of the passage-money paid for the second ship over that agreed upon for the first, but not the sum of money which B lost by arriving in Sydney too late.
A contracts to deliver 100 quintals of wheat to B on 1st June. A does not deliver. B buys wheat at higher price. What is he entitled to?	Difference in market price and contract price
Which provision deal with “Compensation for breach of contract where penalty stipulated for”?	Sec.74
Under Section 74, What is the stipulated amount in case of breach?	Payable as reasonable compensation, not exceeding the amount stated
What is required to claim compensation under Section 74?	Breach and stipulation of sum/penalty
Section 74 applies to?	Both penalty and liquidated damages
The compensation awarded under Section 74?	Shall not exceed the amount stipulated
Under Section 74, whether the court has discretion to award reasonable compensation?	Yes
In which case the Supreme Court held that Reasonable compensation may be awarded, not exceeding penalty amount?	Fateh Chand v. Balkishan Das (AIR 1963 SC 1405)
In which case the Supreme Court clarified that Compensation can be granted even without actual proof of loss?	ONGC v. Saw Pipes Ltd. (2003)
In which case it was held that Even stipulated amounts can be awarded only if breach is proved?	Kailash Nath Associates v. DDA (2015)
Whether a stipulation for increased interest from the date of default may be a stipulation by way of penalty?	Yes
What will be the consequences 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.
Whether a person who enters into a contract with Government does necessarily thereby undertake any public duty, or promise to do an act in which the public are interested?	No
A contract with B to pay B Rs. 1,000, if he fails to pay B Rs. 500 on a given day. A fails to pay B Rs. 500 on that day.	B is entitled to recover from A such compensation, not exceeding Rs. 1,000, as the Court considers reasonable.
A contract with B that, if A practices as a surgeon within Calcutta, he will pay B Rs. 5,000. A practice as a surgeon in Calcutta.	B is entitled to such compensation; not exceeding Rs. 5,000, as the Court considers reasonable.
A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance.	He is liable to pay the whole penalty.
A gives B a bond for the repayment of Rs. 1,000 with interest at 12 per cent at the end of six months, with a stipulation that, in case of default, interest shall be payable at the rate of 75 per cent from the date of default.	This is a stipulation by way of penalty, and B is only entitled to recover from A such compensation as the Court considers reasonable.
A, who owes money to B a money-lender, undertakes to repay him by delivering to him 10 maunds of grain on a certain date, and stipulates that, in the event of his not delivering the stipulated amount by the stipulated date, he shall be liable to deliver 20 maunds.	This is a stipulation by way of penalty, and B is only entitled to reasonable compensation in case of breach.
A undertakes to repay B a loan of Rs. 1,000 by five equal monthly instalments, with a stipulation that in default of payment of any instalment, the whole shall become due.	This stipulation is not by way of penalty, and the contract may be enforced according to its terms.
A borrows Rs. 100 from B and gives him a bond for Rs. 200 payable by five yearly instalments of Rs. 40, with a stipulation that, in default of payment of any instalment, the whole shall become due.	This is a stipulation by way of penalty.
A contracts to build a house for B and agrees to pay ₹5,00,000 if delayed. Work is delayed. B sues under Section 74. The court may award?	Reasonable compensation not exceeding ₹5,00,000
A agrees to sell goods to B. Contract provides ₹2 lakh as penalty on breach. A breaches. B claims entire sum without proving loss. Is he entitled?	Yes, but only reasonable compensation
A deposits ₹1 lakh with railway for lease, refundable on compliance. A violates lease conditions. Railway forfeits entire deposit. Is this justified?	Yes, if reasonable compensation is involved
Which provision deal with “Party rightfully rescinding contract, entitled to compensation”?	Sec.75
The right to claim compensation under Section 75 arises?	When contract is rescinded rightfully due to other party’s fault
Under Section 75, the damages claimed must be?	Direct and consequential to the breach
What is not a requirement under Section 75?	Mutual termination of contract
In State of Kerala v. United Shippers Ltd. (AIR 1979 Ker 8), the Court ruled?	Section 75 allows claim of compensation where rescission is lawful
In Union of India v. Rampur Distillery (AIR 1973 SC 1098), it was held that?	Rescinding party under Section 75 can claim compensation for loss incurred
In M.L. Brothers v. Union of India (AIR 1975 Del 198), it was emphasized that?	Loss due to delay after rescission is recoverable
A contracts with B to supply goods. B fails to pay an advance. A rescinds the contract. Can A claim compensation?	Yes, under Section 75
A hires B to paint a house. B delays repeatedly. A cancels the contract after warnings. A suffers loss due to delay. Can A recover?	Yes, A can claim under Section 75
Section 75 applies only when rescission is done in accordance with law.	True
A buyer enters into a contract with a seller to deliver machines. Seller delivers defective machines. Buyer rescinds and incurs repair losses. Under Section 75?	Buyer can claim compensation for repair losses
A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her 100 rupees for each night’s performance. On the sixth night, A wilfully absents herself from the theatre, and B, in consequence, rescinds the contract.	B is entitled to claim compensation for the damage which he has sustained through the non-fulfilment of the contract.

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