Indian Contract Law Fundamentals

Option (1) is correct: A counter-offer is an offer given in response to an offer.
Option (2) is incorrect: It is not a rejection of the original offer.
Option (3) is incorrect: It is not the same as tthe original offer.

Option (1) is incorrect: It is not a valid contract.
Option (2) is correct: The contract is voidable at the option of the party whose consent was so caused.
Option (3) is incorrect: It is not void, but voidable at the option of the party whose consent was so caused.
Option (4) is incorrect: It is not illegal, but voidable at the option of the party whose consent was so caused.

Option (1) is incorrect: An agreement not enforceable by law is not voidable.
Option (2) is correct: An agreement not enforceable by law is said to be void.
Option (3) is incorrect: An agreement not enforceable by law is not illegal, but void.

Option (1) is incorrect: Agreement is without consideration.
Option (2) is incorrect: Promise is against the public policy or provisions of law.
Option (3) is incorrect: Agreement is void as to uncertainty.
Option (4) is correct: It is a valid agreement.

Option (1) is incorrect: He is appointed by the original agent of the business.
Option (2) is correct: Subagent is an agent of original agent in the business of agency.
Option (3) is incorrect: He acts under the control of original agent.
Option (4) is incorrect: The agent is fully responsible to the principal for the acts of subagent.

Option (1) is incorrect: An offer is always by one party to another.
Option (2) is correct: Tender means a type of quotation offering lowest price for supply of some goods or services or job works. It is an invitation to offer.
Option (3) is incorrect: It is not a counter-offer. 
Option (4) is incorrect: An offer when accepted becomes a promise.

Option (1) is incorrect: The agreement is completely void for uncertainty of kind of oil.
Option (2) is correct: The agreement is void for uncertainty of kind of oil.
Option (3) is incorrect: The agreement is not enforceable in the court of law.

Option (1) is correct: A contract under the Indian Contract Act, 1872 is not frustrated by mere commercial impossibility.
Option (2) is incorrect: A contract stands frustrated by imposition of government restriction.
Option (3) is incorrect: A contract stands frustrated by destruction of subject matter.
Option (4) is incorrect: A contract stands frustrated by death or impossibility of party when contract is of the personal services.

Option (1) is incorrect: It is not a voidable agreement.
Option (2) is correct: Under Section 2 of the Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement. Hence, the given agreement is void from the beginning.
Option (3) is incorrect: It is not enforceable in the court of law. 
Option (4) is incorrect: Not enforceable at all, whether in writing or in oral.

Option (1) is incorrect: Past consideration is a valid consideration.
Option (2) is correct: Promise can be made for the past consideration, present consideration and future consideration.
Option (3) is incorrect: Consideration can be in the past, present and future.
Option (4) is incorrect: Consideration can be in the past, present and future.

Option (1) is incorrect: X can set aside the contract and can recover damages also.
Option (2) is incorrect: X can set aside the contract and can recover damages also.
Option (3) is correct: X has both remedies, i.e. he can repudiate the contract and can recover damages from Y.

Option (1) is incorrect: Valid contract in the eye of law
Option (2) is incorrect: Agreement became contract and completely valid in the eyes of law.
Option (3) is correct: Agreement becomes contract and consideration may be of any value. 
Option (4) is incorrect: It is a legal agreement and enforceable in the court of law.

Option (1) is incorrect: It is void from the very beginning.
Option (2) is incorrect: It is legal but void.
Option (3) is correct: Under Section 26 of the Indian Contract Act, 1872, every agreement in restraint of the marriage of any person, other than a minor, is void.
Option (4) is incorrect: It is not a valid agreement.

Option (1) is incorrect: An agent cannot be appointed by a minor.
Option (2) is correct: Under the Indian Contract Act, 1872, an agent can only be appointed by a person who is major and who is of sound mind.
Option (3) is incorrect: An agent can be appointed only by a major of sound mind.
Option (4) is incorrect: An agent can be appointed only by a major of sound mind.

Option (1) is incorrect: All illegal contracts are void, but all void contracts are not illegal.
Option (2) is correct: Illegal contracts are against the provisions of law whereas void contracts are legal, but not valid in the eye of law.
Option (3) is incorrect: All illegal contracts are void, but all void contracts are not illegal.
Option (4) is incorrect: All illegal contracts are void, but all void contracts are not illegal.

Option (1) is incorrect: B is bound to pay.
Option (2) is correct: B is liable for the goods and bound to pay.
Option (3) is incorrect: Doesn’t matter whether contract was made or not.

Option (1) is correct: Section 20 of the Indian Contract Act, 1872 states that agreement is void, where both the parties are under mistake as to matter of fact.
Option (2) is incorrect: Section 21 of the Indian Contract Act, 1872 provides effects of mistake as to law.
<span style="font-family:" arial;="" font-size:="" small;="">Option (3) is incorrect: Section 22 of the Indian Contract Act, 1872 provides contract caused by mistake of one party as to matter of fact.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: Section 23 <span style="font-family:" arial;="" font-size:="" small;="">of the Indian Contract Act, 1872<span style="font-family:" arial;="" font-size:="" small;=""> provides what consideration and objects are lawful. 

Option (1) is incorrect: No such time period is provided in the act.
Option (2) is incorrect: No such time period is provided in the act.
Option (3) is incorrect: No such time period is provided in the act.
Option (4) is correct: Agreement is to be performed within reasonable time where no specific provision is provided in the act for the performance of promise.

Option (1) is incorrect: Section 2(g) of the Indian Contract Act, 1872  defines, an agreement not enforceable by law is said to be void.
Option (2) is correct: When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise defined under Section 2(b) of the Indian Contract Act, 1872.
Option (3) is incorrect: Section 2(h) of the Indian Contract Act, 1872  defines, an agreement enforceable by law is a contract.
Option (4) is incorrect: Section 2(i) of the Indian Contract Act, 1872 defines,  an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract. 

Option (1) is incorrect: A is not liable for the loss.
Option (2) is correct: A is discharged from his suretyship by the variance made without his consent and so is not liable to make good this loss.
Option (3) is incorrect: A is not liable for the loss.
Option (4) is incorrect: A is not liable for the loss.