Indian Contract Act - Study Mode

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[#936] X' on 1 st July, 2018 agrees to sell his house to 'Y' for a price of Rs. 1 crore, if the entire price is paid on or before 31 st July, 2018 and for the price of Rs. 1,25,00,000/- after 31 st July, 2018 but before 30 th September, 2018. It was further agreed that if the entire price is not paid by 30 th September, 2018, 'Y' shall not be entitled to purchase the house and the earnest money paid by 'Y' to 'X' shall stand forfeited. Such an agreement:

(A) Is void for uncertainty

(B) Is void because the meaning of it is not certain on account of being by way of wager

(C) Is enforceable in law

(D) None of the above

Correct Answer

(C) Is enforceable in law

[#937] Which one of the following is not provided in Section 4 of the Contract Act, 1872?

(A) Communication of a proposal

(B) Communication of acceptance

(C) Communication of revocation

(D) Revocation of proposals and acceptance

Correct Answer

(D) Revocation of proposals and acceptance

[#938] Section 62 of Contract Act relates to the

(A) Agency

(B) Novation

(C) Breach

(D) Compensation

Correct Answer

(B) Novation

[#939] In the formation of a Contract which is not among the three essentials:-

(A) Damages

(B) Consideration

(C) Offer

(D) Acceptance

Correct Answer

(A) Damages

[#940] When the parties to a contract agree to substitute the existing contract with a new contract, it is known as

(A) Substitution

(B) Novation

(C) Frustration

(D) Breach

Correct Answer

(B) Novation