CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
OCTOBER15
ASSESSMENT_CODE BB0008_OCTOBER15
QUESTION_T
DESCRIPTIVE_QUESTION
YPE
QUESTION_ID 104166
QUESTION_T
Distinguish between Coercion and Undue Influence.
EXT
SCHEME OF
EVALUATION
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
104167
QUESTION_TEXT
Discuss the essentials of a Valid Contract.
SCHEME OF
EVALUATION
Section 10 lays down that ‘all the agreements are contracts if they are
made by the free consent of the parties competent to contract for a
lawful object and are not hereby expressly declared to be void’.
The following are the essentials:
a.
Agreement : An agreement which is preliminary to every
contract is the outcome of offer and acceptance. An offer to do or not
to do a particular act is made by one party and is accepted by the other
to whom the offer is made. Then we say that there is a meeting of the
minds of the parties. Such a position is known as consensus ad idem.
b.
Free consent : The parties should agree upon the same thing in
the same sense and their consent should be free from all sorts of
pressure. In other words it should not be caused by coercion, undue
influence, misrepresentation, fraud or mistake.
c.
Contractual capacity: The parties entering into an agreement
must have legal competence. In other words, they must have attained
the age of majority, should be of sound mind and should not be
disqualified under the law of the land. A contract entered into between
the parties having no legal capacity is nullity in the eyes of law.
d.
Lawful consideration: There must be consideration supporting
every contract. Consideration means something in return for
something. It is the price for the promise. An agreement not supported
by consideration becomes a ‘nudum pactum’ i.e., naked agreement.
The consideration should be lawful and adequate. However, there are
certain exceptions to this rule.
e.
Lawful object : The object or purpose of an agreement must be
lawful. It should not be forbidden by law, should not be fraudulent,
should not cause injury to the person or property of another, should not
be immoral or against public policy.
f.
Not expressly declared void: The statute should not declare an
agreement void. The Act itself has declared certain types of agreements
as void. E.g., agreements in restraint of marriage, trade, legal
proceedings. In such cases the aggrieved party can’t seek any relief
from the court of law.
g.
Possibility of performance: The agreement should be capable
of being performed. e.g., Mr. A agrees with Mr. B to discover treasure
by magic. Mr. B can’t seek redressal of the grievance if Mr. A fails to
perform the promise.
h.
Certainty of terms: The terms of the agreement should be
certain. E.g., Mr. A. agrees to sell 100 tons of oil. The agreement is
vague as it does not mention the types of oil agreed to be sold.
i.
Intention to create legal obligation: Though Sec. 10 is silent
about this, under English law this happens to be an important
ingredient. Therefore, Indian courts also recognise this ingredient. An
agreement creating social obligation can’t be enforced.
j.
Legal formalities: Indian Contract Act deals with a simple contract
supported by consideration. Agreements made in India may be oral or
written. However, Sec. 10 states that where the statute states that the
contract should be in writing and should be witnessed or should be
registered, the same must be observed. Otherwise, the agreement can’t
be enforced e.g., Under Indian Companies Act the Memorandum of
Association and Articles of Association must be registered.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
104169
QUESTION_TEXT
Write the modes of termination of agency.
a.
SCHEME OF
EVALUATION
By Revocation: (4 marks)
i.
Revocation of rates prospectively
ii.
Notice precedent to revocation
iii.
Liability to compensate
iv.
Agency creped with interest C where the appoint has
himself an interest in the properly which forms the subject matters of
the a agony, a agony cannot be terminated in the absence of an
express contract.
b.
By remuneration (1 Mark)
c.
Completion of business (1 Mark)
d.
death or Insanity of the principal or Agent (1 Mark)
e.
On expiry of time (1 Mark)
f.
Effects of termination (2 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
104171
QUESTION_TEXT
What is an indorsement? Explain different kinds of indorsement.
Sec 15 of Negotiable Instrument Act.
“When the maker or holder of a negotiable instrument signs the same,
otherwise than as such maker for the purpose of negotiation on the
back or face their or on a ship of paper annexed there to or so signs for
the same purpose a stamped paper intended to be completed as
negotiable instrument he is said to indorse the same and he is called
the endorser.
SCHEME OF
EVALUATION
Thus an endorsement consists of the signature of the holder usually
made on the back of the negotiable instrument with the object of
transferring the instrument. (5 Marks)
1.
Blank or general (1 Mark)
2.
Endorsement in fill or special endorsement (1
3.
Partial endorsement (1 Mark)
4.
Restrictive endorsement (1 Mark)
5.
Conditional endorsement (1 Mark)
Mark)