Contract Law (CLAT Legal-Aptitude): Questions 20 - 22 of 97

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Question number: 20

» Contract Law

Assertion-Reason▾

Assertion (Ꭺ)

All agreements may not be contracts as they may not be enforceable by law.

Reason (Ꭱ)

Enforceability depends on legality of other essential contractual elements.

Choices

Choice (4) Response
a. Ꭺ is false but Ꭱ is true
b. Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ
c. Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ
d. Both Ꭺ and Ꭱ are false

Question number: 21

» Contract Law

MCQ▾

Question

PRINCIPLE: Proposal (communication) + Acceptance (communication) + Consideration = Contract. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

FACTS: X’s nephew absconded from home. He sent his servant in search of the boy. After the servant had left, X by handbills offered to pay Rs. 501 to anybody finding his nephew. The servant came to know of this offer only after he had already traced the missing child. He, therefore, brought an action to recover the reward.

Choices

Choice (4) Response
a.

His action would fail because he was not aware of the offer

b.

His action would not fail because it was a general offer

c.

The fact that he was not aware of the offer does not make any difference and hence it was a valid contract. It is a mere formality

d. None of the above

Question number: 22

» Contract Law

Appeared in Year: 2014

MCQ▾

Question

PRINCIPLE: Acceptance should be made while the offer is still subsisting. The offeror is free to retract his offer at any time before his offer gets accepted by the offeree. Once the offer is withdrawn or is lapsed, it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which the offer is to be accepted, then, the offer must be accepted within the prescribed time.

And, if no time is prescribed, then, the acceptance must be made within a reasonable time. ‘What is a reasonable time’, is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances.

FACTS: `X’ makes an offer to `Y’ to sell his equipment for Rs. 1, 000.00. No time is specified for the acceptance. `Y’ sends his reply two years after receiving the offer.

Which of the following derivations is CORRECT?

Choices

Choice (4) Response
a.

There arises a contract between `X’ and `Y’ to sell/buy the equipment in question for Rs. 1, 000.00

b.

There arises a promise by `Y’ to buy the equipment

c.

`X’ is bound by his offer, and hence, cannot reject the acceptance made by `Y’

d.

There does not arise any contract between `X’ and `Y’ to sell/buy the equipment in question for

Rs. 1, 000.00

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