Contract Law

Under Section 23 of the Indian Contract Act, any agreement where the object or consideration is unlawful is void. This includes agreements involving illegal acts, fraud, property damage, or anything against public policy. Such agreements have no legal effect from the outset. They are neither valid (enforceable), voidable (can be affirmed), nor contingent (conditional).

A contingent contract is a valid contract under the Indian Contract Act, 1872. It depends on the happening or non-happening of some uncertain future event collateral to the contract. The contract becomes enforceable only when the contingent event occurs.

When consent is obtained through coercion (defined under Section 15 of the Indian Contract Act as committing or threatening to commit any act forbidden by Indian Penal Code), the contract becomes voidable. It is not void ab initio - the aggrieved party (A in this case) can choose to affirm or avoid the contract.

A voidable contract is defined under Section 2(i) of the Indian Contract Act as an agreement that is enforceable by law at the option of one or more parties but not at the option of others. This typically arises from defects like coercion, undue influence, fraud, misrepresentation, or mistake.

Under Section 23 of the Indian Contract Act, agreements with objects that are immoral or opposed to public policy are void. Procuring a government job through payment involves corruption and is against public policy. The consideration (payment for employment) is unlawful, rendering the agreement void ab initio.

Section 29 of the Indian Contract Act states that agreements whose meaning is uncertain are void. Certainty of terms is essential for a valid contract - if the language is ambiguous or incapable of being understood, the agreement cannot be enforced.

A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives the aggrieved party only a right to claim damages. Unlike a condition (essential to the contract), a warranty deals with minor aspects of the contract.

Contracts to influence public officials are void under Section 23 of Indian Contract Act as opposed to public policy. G paid bribes for employment - this is illegal consideration. Courts will not enforce such contracts or assist in recovering money paid under them. G cannot recover the amount as courts leave parties where they find them for illegal contracts.

A promissory note is a written unconditional promise by one party (the maker) to pay another party (the payee) a specific sum on demand or at a specified time. Unlike bills of exchange which require acceptance by the drawee, promissory notes do not need acceptance because the maker is already primarily liable. Noting is required for dishonored bills, and discounting is optional - but acceptance is never needed for promissory notes.

A works for B under a contract. A’s right to get remuneration from B is right in personam. A's right in persom is a right 'directed towards a particular person'.

In order to create a valid contract, there must be a 'lawful offer' by one party and 'lawful acceptance' of the same by the other party.

A contract is a legally enforceable promise or undertaking that something will or will not occur.

Persons of unsound mind are not considered as capable to contract. This is an important factor because this may skew a person's ability to understand the scope of the contract.

Contracts classified on the basis of formation include all three types: express contracts (formed by words/written agreement), implied contracts (formed by conduct), and quasi-contracts (created by law to prevent unjust enrichment). Therefore, 'all of the above' is the correct answer as all represent valid formation modes.

When both parties validly perform their contractual obligations, the contract is discharged, meaning it comes to an end naturally. Discharge by performance is the most common way contracts terminate - the parties have done what they promised to do, so the contract's obligations are fulfilled and the contract ceases to exist.