Indian Contract Act - Study Mode

[#546] A contract which is vitiated by undue influenceis declared as which one of the following by the Indian Contact Act?
Correct Answer

(D) Voidable

[#547] In which one among the following cases, a surety is not discharged?
Correct Answer

(C) Contract between the creditor and a third person to give time to the principal debtor

[#548] A for natural love and affection promises to give his son B Rs. 1,00,000. A puts his promise to 'B' in to writing and register it. This is a . . . . . . . . ?
Correct Answer

(A) Contract

[#549] A clause in a loan agreement permitting the financier to seize the financed vehicle in the event of default in payment would amount to
Correct Answer

(A) Void agreement due to unequal bargaining power

[#550] If a proposal has been accepted subject to certain conditions, then:
Correct Answer

(A) The Contract is valid and conditions are binding

Explanation

Solution: In the context of the Indian Contract Act , when a proposal (offer) is accepted subject to certain conditions, the legal implications are as follows:

Option A is correct: A. The Contract is valid and conditions are binding When a proposal is accepted with conditions, it forms a valid contract, and the conditions become an integral part of that contract. Both parties are legally bound to fulfill the terms and conditions agreed upon at the time of acceptance. Options B , C , and D are incorrect: B. The contract is voidable - A contract is considered voidable when one party has the option to either enforce or reject the contract due to certain specific circumstances or deficiencies in the agreement. However, the scenario in the question does not imply voidability. C. The contract is valid but conditions are not binding - As explained earlier, the conditions are binding on both parties, making this option incorrect. D. The contract is not constituted at all - The acceptance of the proposal subject to conditions constitutes a valid contract, so this option is not applicable. Therefore, the correct answer is: A. The Contract is valid and conditions are binding