Contract Law

Indemnity contract includes two parties namely, indemnifier and indemnity holder. The person who is promising to pay compensation is called indemnifier and the person whose loss is compensated is called indemnity holder.

As per Section 68 of Indian Contract Act, if necessities are supplied to minor, it is a valid agreement. Minor can also be beneficiary.

When at the desire of the promisor, the promisee or any other person has done or abstained from doing something or does or abstains from doing something, such act or abstinence or promise is called a consideration for the promise. Thus, all are true. 

Correct Answer: None of the above

When two parties enter into an agreement, there are two distinct roles each play: the promisor and the promisee. The promisor is the party that makes the proposal/promise, while the promisee is on the receiving end of the promise/proposal.

Under Sale of Goods Act, 1930, a warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.

Under the Indian Contract Act, performance of contract includes actual performance or offer to perform. Offer of promise is when the promisor offers performance of his obligation under the contract at the proper time and place.

A contract implied by law is known as a quasi contract. A quasi contract is not an actual contract but is a legal substitute formed to impose equity between two parties. This contract is made when a court finds it appropriate to create an obligation upon a non-contracting party to avoid injustice and to ensure fairness.

A contract is deemed to be made where the letter of acceptance is transmitted by the acceptor.

When both parties of a contract (promisor and promisee) fulfil the legal obligations which are created under a contract, it is called performance of contract. These promises which form consideration or the part of the consideration for each other are called reciprocal promises. As per Section 2(f) of the Indian Contract Act, promises which form the consideration or the part of consideration for each other are called reciprocal promises.

All of the above are valid methods by which an offer can be revoked or cancelled.

A nudum pactum is a Latin phrase which means bare or naked promise. It refers to a promise that is not legally enforceable for want of consideration.

Keeping an agreement in a drawer is an evidence of the fact that the acceptor had mentally accepted but had not expressed his mental determination and retention of the agreement. Thus, it is not sufficient acceptance.

Acceptance should be made in a manner prescribed by the offeror in the contract. No such provision has been prescribed under the contract law that the acceptance in all cases should be through registered post.

According to Section 58 of the Indian Contract Act, in case of an alternative offer and acceptance (one branch of which is legal and the other illegal), the legal branch alone can be enforced. Illegal will be void. Thus, the contract is valid to deliver rice and void to deliver smuggled opium.