Contract Law

 Underwriting is an agreement where by the underwriters ensure the company that in case the shares and debentures offered to the public, are not subscribed by the public to the extent, the balance of shares and debentures will be taken up by the underwriters.

Option (1) is incorrect: Under Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is void from the beginning and can never become voidable. Option (2) is correct: Under Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is said to be void. Option (3) is incorrect: An agreement not enforceable by law is not illegal. Option (4) is incorrect: Under Section 2(g) of the Indian Contract Act, 1872, an agreement when enforceable by law becomes contract.

Option (1) is incorrect: For a valid agreement, there must be a proposal from one person. When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that either to such act or abstinence, he is said to make a proposal. Option (2) is incorrect: When the person to whom the proposal is made, gives his assent, the proposal is said to be accepted. A proposal, when accepted, becomes a promise. An unaccepted proposal can never become a promise. Option (3) is incorrect: When, at the desire of the person who made the proposal, the person to whom the proposal is made or any other person promises to do or to abstain from doing something, such act or promise is called a consideration for the promise. Hence, every promise and every set of promises, forming the consideration for each other, is an agreement. Option (4) is correct: Immovable property is not required to make a valid agreement under the Indian Contract Act, 1872. Contract is not confined to immovable property.

(3) In every contract there must be an offer containing a promise and every promise must have a consideration which is accepted or agreed upon.

Option (1) is incorrect: Yes, A is entitled for reimbursement from the property of B. Option (2) is incorrect: No such provision Option (3) is correct: Under Section 68 of the Indian Contract Act, 1872, if a person incapable of entering into a contract is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such an incapable person.

(2) Fire and marine insurance contract, in general, are contracts of indemnity, that is, they provide for compensating the insured for loss or damage sustained. A contract of life insurance forms an exception to the general rule. A life insurance contract does not resemble a contract of indemnity because the insurer does not undertake to indemnify the assured for any loss on maturity or death of the assured but promises to pay sum assured in that event.

Option (1) is incorrect: Section 9 of Specific Relief Act provides for defense respecting suits for relief based on contract. Option (2) is correct: Section 14 of Specific Relief Act deals with 'contracts not specifically enforceable'. Option (3) is incorrect: Section 11 of Specific Relief Act deals with cases in which specific performance of contracts is connected with trust enforceable. Option (4) is incorrect: Section 10 of Specific Relief Act deals with cases in which specific performance of contract is enforceable.

It is a suit where the plaintiff holds the property in which he has pecuniary interest. There are many defenders pleading against each other. Section 88 says that such a person can claim against all the claimants. It further says if any suit is pending in which rights of all parties can be properly decided, no such interpleader suit shall be instituted. Thus (4) is the correct option.

The presumption under section 137 of the Negotiable Instruments Act, 1881 is the law of any foreign  country regarding promissory notes, bills of exchange and cheque is same as that of India.

The seller is entitled to get the contractual price in such case.

If the contract is consistent with the public documents, the person contracting will not be prejudiced by irregularities that may set the indoor working of the company.

Whether the acceptance is expressed or implied, the main point is that it must be absolute (final) and unqualified in order to be effective.

According to Explanation 2 to Section 25 of the Indian Contract Act, an agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given. 

Where a law promulgated after the contract is made makes the performance of the agreement impossible, the agreement becomes void.

Section 21 says that a contract is not voidable if it was caused by mistake as to law in India. However, mistake as to law outside India has the same effect as mistake of fact. Parties entering into a contract are not legally obliged to know the law relating to the contract.