CLAT Legal-Aptitude: Questions 10 - 11 of 1064

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Question number: 10

» Contract Law

Appeared in Year: 2014

MCQ▾

Question

PRINCIPLE: A contract which is duly supported by real and lawful consideration is valid notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract, and not for the courts (to decide) when the contract is sought to be enforced. 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.

FACTS: `1’ agrees to sell his mobile phone worth Rs. 20, 000/- for Rs. 100/- only to ‘2’. A’s consent is freely given.

Which of the following derivations is CORRECT?

Choices

Choice (4) Response

a.

There is no contract between `1’ and `2’ because consideration is not adequate

b.

There is no contract between `1’ and `2’ because a mobile phone worth Rs. 20, 000/- cannot be

sold for just Rs. 100/-

c.

There is a contract between `1’ and `2’

d.

None of the above

Question number: 11

» Contract Law

MCQ▾

Question

Which of the following does not render a contract void?

Choices

Choice (4) Response

a.

Mistake as to any law in force in India

b.

The fact that one of the parties is occasionally of sound mind but generally of unsound mind

c.

Mistake of one of the parties to a contract as to the matter of fact essential to the ensuing agreement

d.

All a. , b. and c. are correct

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