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AIBE (Bar Exam) Formation of Contract — practice questions

Explore 9 free Formation of Contract questions in AIBE (Bar Exam) Law. Open each question or exercise to read its content, reference answers and available explanation.

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Formation of Contract questions and exercises with answers

Showing questions 1–9 of 9.

An acceptance under Section 7 must beRead the answer and worked solution →Section 14 lists which of these as an element that vitiates free consent?Read the answer and worked solution →A contract made under coercion, fraud or misrepresentation is under Section 19Read the answer and worked solution →Under Section 26, an agreement in restraint of the marriage of a person, other than a minor, isRead the answer and worked solution →Under Section 27, an agreement in restraint of trade isRead the answer and worked solution →Agreements the meaning of which is not certain, or capable of being made certain, are under Section 29Read the answer and worked solution →An agreement by way of wager is under Section 30Read the answer and worked solution →Under Section 15, "coercion" includesRead the answer and worked solution →Under Section 17, fraud in a contract does NOT includeRead the answer and worked solution →

Worked practice questions

An acceptance under Section 7 must be

  1. Silent and inferred
  2. Made by a stranger to the offer
  3. Absolute, unqualified and in the prescribed mode
  4. Conditional on further negotiation of price
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Correct answer: C. Absolute, unqualified and in the prescribed mode

1. Section 7 spells out the essential requirements of an acceptance. 2. It must be absolute and unqualified with no counter conditions. 3. It must be expressed in a usual or prescribed manner. 4. A qualified or conditional acceptance is treated as a counter-offer, not a binding acceptance. _Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 7_

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Section 14 lists which of these as an element that vitiates free consent?

  1. Consideration
  2. Coercion
  3. Notice
  4. Consent
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Correct answer: B. Coercion

1. Section 14 defines "free consent" negatively. 2. Consent is not free if caused by coercion, undue influence, fraud, misrepresentation or mistake. 3. Coercion is defined further in Section 15 as committing or threatening an act forbidden by IPC. 4. Consideration and notice are not vitiating factors under Section 14. _Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 14_

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A contract made under coercion, fraud or misrepresentation is under Section 19

  1. Void ab initio
  2. Enforceable only in criminal court
  3. Voidable at the option of the aggrieved party
  4. Illegal and punishable
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Correct answer: C. Voidable at the option of the aggrieved party

1. Section 19 governs the status of contracts where consent is caused by coercion, fraud or misrepresentation. 2. Such contracts are voidable at the option of the party whose consent was so caused. 3. That aggrieved party may either avoid the contract or insist on its performance. 4. Voidable is not the same as void: the contract stands until the aggrieved party rescinds it. _Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 19_

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