13-12-2021

LIVE COACHING CLASSES

BOARD OF STUDIES(A), ICAI

CA FOUNDATION
TOPIC NAME - INDIAN CONTRACT ACT, 1872
TOPIC NAME – TEST DAY 1
PAPER 2: SEC-A BUSINESS LAWS
Faculty Name: CA Sudeep Kumar Jain

Let’s Revise
CONTRACT Promise = Offer (Proposal) + Acceptance Sec.2(b) = Sec.2(a) + Sec.2(b)
V/S Agreement = Promise + Consideration Sec.2(e) = Sec.2(b) + Sec.2(d)
AGREEMENT Contract=Agreement+ enforceability by law Sec.2(h) = Sec.2(e) + enforceability by law

ESSENTIAL 1. Offer and Acceptance;

ELEMENTS 2. Intention to create legal relationship;
3. Legal Formalities;
4. Certainty of meaning: Sec.29;
5. Possibility of performance: Sec.56;
6. Free Consent: Sec.13,14,15,16,17,18,19,19A,20,21,22;
7. Competent parties: Sec.11 & 12;
8. Lawful object & Consideration: Sec.23;
9. The agreement not expressly declared void,

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Let’s Revise
CLASSIFICATION On the basis of Validity
OF CONTRACTS 1. Valid Contract: Contains all the essential elements of a valid contract.
2. Voidable Contract: Sec. 2(i): An agreement which is enforceable by law at the option of one or
more of the parties thereto, but not at the option of other or others.
3. Void Contract: Sec. 2(j): A contract, which ceases to be enforceable by law.
4. Illegal Contracts: A contract which is forbidden by law.
5. Unenforceable Contract: Some technical defect i.e. absence in writing, barred by limitation etc.
On the basis of Formation
1. Express Contract: By words spoken or written
2. Implied Contract or tacit contract: Where the proposal or acceptance is otherwise than in words.
3. Quasi-Contract: Created by law under certain circumstances.
On the basis of Performance
1. Executed Contracts: Both the parties have performed their respective obligations.
2. Executory Contract: Both the parties have yet to perform their obligations.
a. Unilateral or one-sided contract: Only one party has fulfilled his obligation.
b. Bilateral contract: Both the parties have to perform.

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Nature of Contract – Day 1

Self Assessment Test

Answer Sheet
Ques. No. 1 2 3 4 5 6 7 8 9 10
Answer By Student

Correct Answer

Marks Obtained

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Nature of Contract – Day 1

Hello Everyone!
I am Damodar Bhai

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Nature of Contract – Day 1

[1] The Indian Contract Act came into force on

(a) 1st September, 1872
(b) 15th September, 1872
(c) 1st October, 1872 a
(d) 15th October, 1872

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Nature of Contract – Day 1

[2] The term ‘Contract’ defined in which of the

following sections of the Indian Contract Act?
(a) Section 2(a)
(b) Section 2(b)
(c) Section 2(e) d
(d) Section 2(h)

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Nature of Contract – Day 1

[3] A promise is
(a) Offer + enforceability
(b) Offer + Legal Obligation
(c) Offer + acceptance
c
(d) Offer only

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Nature of Contract – Day 1

[4] A Contract is an agreements

(a) enforceability by law
(b) to indulge in litigation
(c) With malafide Intention
a
(d) for social obligation

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Nature of Contract – Day 1

[5] Which of the following is not an essential elements

of a valid contracts?
(a) registration of agreement
(b) free consents of parties a
(c) competency of parties
(d) lawful consideration and objects

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Nature of Contract – Day 1

[6] A contract in which, under the terms of a contract,

nothing remains to be done by either party is known as
(a) executed contract

a
(b) executory contract
(c) unilateral contract
(d) none of these.

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Nature of Contract – Day 1

[7] An agreement with a party who is not competent to

contracts, is
(a) Void
(b) Voidable a
(c) Valid
(d) Illegal

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Nature of Contract – Day 1

[8] A agrees to sale his white car to B for Rs.

50000/-or Rs. 70000/-. It is a valid not

c
agreement as it is ____
(a) Forbidden by law
(b) for unlawful consideration
(c) not certain
(d) Impossible

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Nature of Contract – Day 1

[9] An agreement enforceable by law, under

the Indian Contract Act, may be
(a) in writing only.
(b) oral only. d
(c) registered only
(d) either (a) or (b)

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Nature of Contract – Day 1

[10] A invites B for his son’s wedding. B accepts the

invitation. In this case, there is a/an -
(a) Agreement
(b) Contract a
(c) Acceptance
(d) Offer

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THANK YOU

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