REVISION QUESTION – UNIT ONE –

LAW OF CONTRACT & DISCHARGE

OF CONTRACT
1. Indian Contract Act was passed
in the year
1872
2. ----- is "an agreement
enforceable by law".
Contract
3. A ----- is defined as an accepted
proposal
Promise
4. An agreement becomes
enforceable only when it is
coupled with ----- obligation.
Legal
5. All ------ are agreements, but all
----- need not be contracts
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 Contracts, agreements
6. A position where there is
meeting of the minds of the parties
is known as,
Consensus ad idem
7. An agreement not supported by
consideration becomes ------
Naked agreement or Nadum
pactum
8. The consideration should be ----
and ----
Lawful and adequate
9. An agreement which has all the
essential elements of a contract is
called a ------
Valid contract
10. A ----is a contract which ceases to
be enforceable by law.
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 Void contract
11. An agreement void from the
beginning is known as, ----
Void ab initio
12. 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, is a -----
voidable contract

13. The party entitled to affirm or

reject a voidable contract is ------
Aggrieved Party
14. All illegal agreements are ----
Void

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15. Where a contract is good in
substance but because of some
technical defect cannot be
enforced by law is called ------
Unenforceable contract
16. An Offer may be ---- or ------
General, Specific
17. An Offer should be made with an
intention of creating ------
obligation
Legal
18. When the person to whom the
proposal is made signifies his
assent thereto, the proposal is said
to be ----
Accepted
19. An --------- turns the offer into a
binding obligation
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 Acceptance
20. The --- only has to accept the offer.
Offeree
21. Qualified or conditional acceptance
is nothing but a ------
Counter offer
22. If the acceptance is not in the
prescribed form it is, -----
Deviated acceptance
23. Acceptance must be provoked by
----
offer
24. The withdrawal of an offer by
the offeror is known as -----
Revocation
25. A person who has not attained
the age of majority.
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 Minor
26. A minor’s agreement is ----
Void-ab-initio
27. A minor can be compelled to
restore property or goods obtained
by misrepresenting the age so long
as the same is in traceable
position. This is known as,
Doctrine of restitution
28. Under Indian law an agreement
of a person of unsound mind is
------
Void
29. ----- is the committing, or
threatening to commit, any act
forbidden by the Indian Penal Code,
or the unlawful detaining, or
threatening to detain, any

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 property, to the prejudice of any
person whatever, with the intention
of causing any person to enter into
an agreement.
Coercion
30. ---- refers to “ the unconscious
use of power over another person,
such power being obtained by
virtue of a present or previously
existing dominating control arising
out of relationship between the
parties.
Undue influence
31. law presumes ----- in case of a
contract with pardanashin women
undue influence
32. Coercion involves -----force,
undue influence involves -----
force.
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 Physical, moral
33. A false statement made knowingly
or without belief in its truth or
recklessly careless whether it is
true or false.
Fraud
34. A promise made without any
intention of performing it is
included within the meaning of,
Fraud
35. There is no general duty cast
upon the party to a contract to
disclose to the other party material
facts within his knowledge, but are
unknown to the other party. This
principle is knows as
Caveat Emptor (let the buyer
beware)

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36. Duty to speak arises when the
parties to a contract are in a
fiduciary relationship, such type of
contracts are known as, ------
Uberrimae fide contracts
37. If the representation is false or
misleading it is known as,-----
Misrepresentation
38. ---- refers to mis-understanding or
wrong thinking or wrong belief.
Mistake
39. ---- is the mistake where there is no
real correspondence of offer and
acceptance.
Bilateral Mistake
40. Bilateral Mistake may be
regarding the ---- or ----- of the
contract
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 Subject matter, possibility of
performance
41. A -----is an incorrect belief of one
party that is not shared by the
other party.
Unilateral mistake
42. ------ does not render the
contract voidable
Mistake of law
43. ----- means compensation given
by the party contracting to the
other
Consideration
44. Should be furnished at the
desire of -----
Promisor
45. Consideration may be -----, ---- or
-------
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 past, present,future
46. Something done or not done at
the request of the promisor, before
making of the agreementis ----
Past Consideration
47. A person who is not a party to a
contract cannot claim any rights
under the contract even though the
contract is for his benefit, this is
known as,
Privity of contract
48. Every agreement of which the
object or consideration is unlawful
is -----
Void
49. ---- is that principle of law which
holds that no subject can lawfully
do that which has a tendency to be

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 injurious to public or against public
good.
Public policy
50. Consideration can move from
the third party, under ---- doctrine
Constructive consideration
51. When the rights and obligations
arising out of a contract are
extinguished, the contract is
said to be ------
Discharged or terminated
52. When each party to a contract
fulfills his obligation within the time
and in the manner prescribed it is,
Actual performance
53. When the promisor offers to
perform his obligation under the
contract, but he is unable to do so
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 because the promisee does not
accept the performance. It is,
Attempted performance or
tender
54. ----- Occurs when a new contract
is substituted for an existing
contract, either between the same
parties or between different
parties, the consideration mutually
being the discharge of the old
contract.
Novation
55. ---- means change in one or more
of the material terms of the
contract done by mutual consent.
Alteration
56. Non-performance of a contract
by both the parties for a long

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 period without complaint, amounts
to -----
Implied rescission
57. ----- is defined as the acceptance
of a lesser sum than what was
contracted for a lesser fulfillment of
the promise made.
Remission
58. ----- means deliberate
abandonment or giving up of a
right which a party is entitled to
under a contract, whereupon the
other party is released from his
obligation.
Waiver
59. ------ happens when there was
no impossibility of performance at
the time of making the contract but
later it becomes impossible on
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 happening of certain event which is
beyond the control of parties.
Supervening impossibility
60. ----- is a breach of contract
occurring before the time fixed for
performance has arrived
Anticipatory breach
61. ----- occurs when a party fails to
perform his obligation upon the
date fixed for performance by the
contract.
Actual breach
62. ---- are a monetary compensation
allowed to the injured party for the
loss or injury suffered by him as a
result of the breach of contract.
Damages

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63. The fundamental principle
underlying damages is not----- but
-----
Punishment, compensation
64. ------are those which arise on
account of the special or unusual
circumstances affecting the
plaintiff
Special Damages
65. -----are such damages which are
awarded with a view to punishing
the guilty party for the breach and
not by way of compensation for the
loss suffered by the aggrieved
party.
Exemplary or Vindictive Damages
66. ------are those which are awarded
only for the name sake

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 Nominal Damages
67. -----means a sum fixed up in
advance, which is a fair and
genuine pre-estimate of the
probable loss that is likely to result
from the breach
Liquidated Damages
68. ---- means a sum fixed up in
advance, which is extravagant and
unconscionable in amount in
comparison with the greatest loss
that could conceivably be proved
to have followed from the breach
Penalty
69. ---- is an order of a court
restraining a person from doing a
particular act. It is a mode of
securing the specific performance

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 of the negative terms Of the
contract.
tion
70. ------ means the actual carrying
out of the contract as agreed.
Specific performance

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