Indian Contract Act - Study Mode
[#991] In case of a sub-agent lawfully appointed, which of the following is correct?
Correct Answer
(C) As regards third parties, the sub-agent binds the principal as an original agent can bind
[#992] When a contract is breached, the party who suffers such breach shall:
Correct Answer
(B) Receive compensation for any loss or damage caused to him
[#993] What is a continuing guarantee:
Correct Answer
(C) A guarantee which extends to a series of transaction
[#994] A trader supplied to a minor wheat and rice required for food. On the failure of the minor to pay, for it, the trader files a suit. The trader
Correct Answer
(D) Is entitled to be reimbursed out of the property of the minor, since the articles supplied constitute necessaries
Explanation
Solution: Minors and Contracts: Generally, agreements with minors (individuals under 18 in India) are considered void , meaning they are not enforceable by law. * Exception: Necessaries: However, there's an important exception to this rule. If a minor is supplied with "necessaries" suited to their condition in life, the supplier is entitled to be reimbursed from the minor's property. * What are "Necessaries"?: "Necessaries" aren't just bare essentials for survival. They include goods and services reasonably required for the minor's support, based on their standard of living. Food (wheat and rice) is a classic example of a necessary. * Why not the other options?: * Option A: While generally true that minor's agreements are void, the "necessaries" exception applies here. * Option B: The law implies a quasi-contractual obligation even if the minor didn't specifically ask for the goods. * Option C: There isn't an 'implied promise' in the usual contractual sense, but the legal obligation arises from the supply of necessaries. In Summary: The trader can't sue the minor personally to recover the money. However, because the trader supplied essential food items (necessaries), they have the right to be reimbursed from the minor's property.
[#995] Read Assertion (A) and Reason (R) and give correct answer with the help of given below: Assertion (A): The relations of partners inter se is that of principal and agent. Reason (R): The rules of the law of agency does not apply in case of their liability.
Correct Answer
(C) (A) is right but (R) is wrong