Indian Contract Act - Study Mode
[#751] The case Frost v. Knight, (1872) LR 7 Ex 111, related to:
Correct Answer
(A) Anticipatory breach of contract
[#752] Acceptance to be valid must
Correct Answer
(C) Both be absolute & unqualified
[#753] Who said that 'Acceptance is to offer what a lighted match is to gun powder. Both do something which cannot be undone'?
Correct Answer
(A) Anson
[#754] Which of the following is not an agreement in restraint of trade? 1. A sells the goodwill of his business with an agreement not to carry on a similar business within specified local limits, so long as the buyer carries on a similar business. 2. A sells the goodwill of his business with an agreement not to carry on a similar business within India, so long as the buyer carries on a similar business. 3. A sells the goodwill of his business with an agreement not to practice the same trade for 25 years. 4. A sells the goodwill of his business with an agreement not to engage in any business competing or liable to compete in any way with the business for the time being carried on by the buyer.
Correct Answer
(D) 1 and 3
Explanation
Solution: As per Section 27 of the Indian Contract Act, 1872 , any agreement that restrains a person from exercising a lawful profession, trade, or business is void, except for the sale of goodwill under reasonable restrictions. Statement 1 is not an agreement in restraint of trade because a seller can agree not to carry on a similar business within specified local limits, as long as the restriction is reasonable. Statement 3 is also not an agreement in restraint of trade since the restriction is based on a voluntary goodwill sale agreement, making it enforceable under reasonable limits. Statement 2 and 4 are agreements in restraint of trade because imposing a nationwide or unlimited restriction is excessive and void under Indian law.
[#755] Which type of loss are not covered by a contract of indemnity
Correct Answer
(A) Loss arising from accidents like fire or perils of the sea