Contract Law

Supervening impossibility (also known as the doctrine of frustration) occurs when an unforeseen event makes contract performance impossible or illegal after the contract is formed. This is covered under Section 56 of the Indian Contract Act. The key distinction is that the impossibility was not contemplated by the parties at the time of contracting and is due to factors beyond their control.

Section 31 of the Indian Contract Act defines a contingent contract as a contract to do or not to do something if some event collateral to the contract does or does not happen. The key elements are: (1) performance is conditional, (2) the event is collateral to the contract, and (3) the contract binds parties based on the occurrence or non-occurrence of that event.

A wagering agreement is a promise where parties agree to give money or money's worth based on determining an uncertain future event. The key element is uncertainty - if the outcome is predetermined, it's not a wager. Such agreements are void under Section 30 of the Indian Contract Act.

Recission (revocation of offer) must follow the same communication rules as the proposal itself. It must be communicated to the other party and can be revoked in the same manner as the proposal was communicated. Both statements (1) and (2) correctly state these requirements.

When a party fraudulently misrepresents a material fact (like an encumbrance), the defrauded party has multiple remedies: avoiding (rescinding) the contract, insisting on performance with compensation, or having the defect rectified (mortgage redemption). All these remedies are available under contract law for fraud.

The Doctrine of Privity of Contract means only parties to a contract can enforce rights or obligations under it. A contract cannot benefit or bind strangers, even if the contract was intended to benefit them. This fundamental principle restricts contractual rights to actual signatories/parties.

A contract of guarantee involves three distinct contracts: the principal contract between creditor and principal debtor, the contract of guarantee between surety and creditor, and the indemnity contract between surety and principal debtor. Each party has separate rights and obligations under these three agreements.

Contracts classified by performance fall into three categories: executed contracts (fully performed by all parties), executory contracts (yet to be performed by any party), and partly executed/partly executory contracts (some obligations fulfilled, others pending). Option D encompasses all valid classifications.

An agent is a person appointed to act on behalf of another (the principal) and represent them in dealings with third parties. This is the definition under Section 182 of the Indian Contract Act. A principal is the person being represented, a servant is for domestic service, and a bailee handles goods.

An agreement to sell is an executory contract because neither party has fulfilled their obligations - the seller hasn't transferred ownership, and the buyer hasn't paid. It becomes a sale (executed contract) only when property actually transfers.

Novation is the substitution of a new contract or party for an old one, discharging the original contract. The key feature is that contracting parties may change - either by substituting a new debtor or replacing the original contract entirely with a new one.

Rescission means cancellation or abrogation of a contract, putting parties back in their original positions before the contract. It differs from noviation (substitution), alteration (modification), or remission (dispensing with performance). Option B correctly states it means cancellation.

In an agreement to sell (not a completed sale), ownership hasn't yet transferred. If either party breaches the agreement, the aggrieved party's primary remedy is to sue for damages - compensation for the loss suffered. The aggrieved party cannot sue for specific performance of the sale or for the price, as the contract is still executory. Damages compensate for the breach rather than forcing completion.

This is a textbook case of coercion under Section 15 of the Indian Contract Act. Coercion involves threatening or committing an act forbidden by the Indian Penal Code (like threatening to kill someone) to force a person into a contract. Contracts induced by coercion are voidable at the option of the coerced party (B), not the coercer (A). A's threat to kill B's life constitutes criminal coercion, making the agreement voidable at B's option.

A contingent contract has all three characteristics: its performance depends on a future event (collateral to the main contract), that event must be uncertain, and the contract is enforceable only if/when the event occurs. Examples include insurance contracts and contracts contingent on litigation outcomes.