Practice Law of Contracts Questions and Answers

• A tenant's LEASE expires, but the tenant continues in occupation (holds over) and the LESSOR accepts rent from him. Under Section 116 of the Transfer of Pr...
• X agrees to pay Y a sum of money on the understanding that Y will not file (and will not pursue) a criminal complaint against X for an offence. Under the I...
• Before the date fixed for performance, X unequivocally tells Y that X will NOT perform the contract at all. Under Section 39 of the Indian Contract Act, 18...
• Under Section 15 of the Indian Contract Act, 1872, COERCION is the committing or threatening to commit any act FORBIDDEN by the Indian Penal Code, or the u...
• The owner of a RARE, practically unique item (a one-off antique) refuses to deliver it to a party with a valid contract to buy it, and the unique article i...
• Where a breach of contract would be adequately compensated by MONEY DAMAGES, the court under the Specific Relief Act, 1963:
• A mercantile AGENT is, with the consent of the owner, in possession of goods or documents of title, and in the ordinary course of business sells the goods ...
• Goods are sold without the PRICE being fixed. Under Section 9 of the Sale of Goods Act, 1930, the buyer shall, in such a case, pay:
• Under Section 15 of the Airports Authority of India Act, 1994, all licences, permits, quotas, and exemptions granted to the erstwhile International Airport...
• Under Section 20 of the Airports Authority of India Act, 1994, the Authority shall be competent to enter into and perform any contract necessary for the di...
• Under Section 12 of the Bharatiya Vayuyan Adhiniyam, 2024, rules made by the Central Government for the investigation of aircraft accidents or incidents ma...
• Under section 2(d) of the Indian Contract Act, 1872, consideration is defined as an act, abstinence or promise done or suffered 'at the desire of the promi...
• A sixteen-year-old student enters into an agreement to purchase a motorcycle worth ₹1,20,000 on credit. Under the Indian Contract Act, 1872, this agreeme...
• Anil threatens to file a false criminal complaint against his neighbour Beena unless she executes a sale deed of her land in his favour. Beena, fearing arr...
• Ravi and Suresh agree that Ravi will pay Suresh ₹50,000 if a particular horse wins a race, and Suresh will pay Ravi a like amount if it does not. Neither...
• The rule in Hadley v Baxendale, as embodied in the Indian Contract Act, 1872, provides that damages for breach of contract are recoverable only for loss wh...
• Sunita stood surety under a continuing guarantee for a cash-credit facility that her friend's firm enjoys with a bank. She now wishes to bring her liabilit...
• J, a minor, borrows ₹2 lakh from a money-lender to buy a luxury mobile phone, and separately purchases essential food and clothing on credit from a shopk...
• Under Sections 3 to 5 of the Indian Contract Act, 1872, where an acceptance is sent by post, the communication of acceptance is complete as against the pro...
• Under Section 4 of the Indian Partnership Act, 1932, the essential test of a partnership is the existence of:
• Rahul, a minor, was admitted to the benefits of a partnership firm. On dissolution, the firm's assets are insufficient to pay its debts and the creditors s...
• Under Section 6 of the Specific Relief Act, 1963, a person dispossessed of immovable property otherwise than in due course of law may recover possession by...
• Ravi sells his house to Suresh by a registered sale deed but refuses to hand over possession. Suresh's effective remedy before the civil court is:
• Under Sections 18 and 19 of the Sale of Goods Act, 1930, where there is a contract for the sale of specific goods in a deliverable state, the property in t...
• A consigns his goods to a mercantile agent for sale. The agent, acting in the ordinary course of business, sells the goods to B, who buys in good faith wit...
• A, a minor, borrowed ₹2 lakh from a moneylender for a business venture and executed a promissory note. On default, the moneylender sues A and A's father ...
• As per Section 25 of the Indian Contract Act 1872, an agreement made without consideration is void, EXCEPT when it is -
• A minor aged 17 years agrees to purchase a house from B for ₹30 lakh and pays ₹5 lakh as earnest money. Before the sale deed is executed, the minor rep...
• Under Section 128 of the Indian Contract Act 1872, the liability of a surety is -
• A agreed to deliver a critical machine part to B's factory by 1 June. A, unaware that B had no spare part, delivered it on 10 June. B sued A for the loss o...
• The true test of partnership within the meaning of section 4 of the Indian Partnership Act, 1932 is -
• Under section 30(5) of the Indian Partnership Act, 1932, a minor who has been admitted to the benefits of partnership shall, on attaining majority, give pu...
• Under Section 10 of the Indian Contract Act, 1872, which of the following is NOT an essential element for a valid contract?
• Under Section 73 of the Indian Contract Act, when a contract has been broken, the party suffering the breach is entitled to receive compensation for: 
• A, by fraud, induces B to enter into a contract. B later discovers the fraud but continues to perform under the contract. Under the Indian Contract Act, wh...
• Under Section 56 of the Indian Contract Act, a contract becomes void when an act which was agreed to be performed becomes impossible or unlawful after the ...
• Under Section 148 of the Indian Contract Act, a 'bailment' is the delivery of goods by one person to another for some purpose. Which of the following is NO...
• Under Section 185 of the Indian Contract Act, no consideration is necessary to create an agency. In light of this, which statement is most accurate? 
• Under the Indian Contract Act, which of the following agreements is expressly declared void under Section 27? 
• Under Section 4 of the Indian Partnership Act, 1932, 'Partnership' is the relation between persons who have agreed to share the profits of a business carri...