Contract Law (CLAT Legal-Aptitude): Questions 6 - 7 of 97
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Question number: 6
» Contract Law
Appeared in Year: 2014
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?
There is no contract between `1’ and `2’ because consideration is not adequate
There is no contract between `1’ and `2’ because a mobile phone worth Rs. 20, 000/- cannot be
sold for just Rs. 100/-
There is a contract between `1’ and `2’
|d.||None of the above|
Question number: 7
» Contract Law
Which of the following does not render a contract void?
Mistake as to any law in force in India
The fact that one of the parties is occasionally of sound mind but generally of unsound mind
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|