CLAT PG Law of Contracts Syllabus

Law of Contracts syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Law of Contracts in CLAT PG, not a summary of it.

1. 1

   General Principles of Contract

   4 topics

   • Formation
     • Offer and Acceptance
   • Consideration
     • Definition and Requirements
   • Capacity
     • Minors
     • Persons of Unsound Mind
   • Free Consent
     • Coercion
     • Undue Influence
     • Misrepresentation
     • Fraud
     • Mistake
2. 2

   Specific Contracts

   3 topics

   • Indemnity and Guarantee
     • Nature and Scope
   • Bailment and Pledge
     • Rights and Duties
   • Agency
     • Creation and Termination

Law of Contracts flashcards for CLAT PG

19 of 59 cards from the Law of Contracts deck — real questions with worked answers.

1. Under Section 2(h) of the Indian Contract Act, 1872, how is a 'contract' defined?

   A contract is an agreement enforceable by law. (Contract = Agreement + Enforceability by law)

2. What is the formula for a contract under the Indian Contract Act, 1872?

   Contract = Agreement + Enforceability by law; and Agreement = Offer (Proposal) + Acceptance.

3. How is a 'proposal' defined under Section 2(a) of the Indian Contract Act?

   When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

4. What is the difference between an offer and an invitation to offer (invitation to treat)?

   An offer is a definite expression of willingness to contract on stated terms, capable of acceptance. An invitation to offer merely invites others to make offers (e.g., display of goods, auction catalogues, advertisements, tenders).

5. According to the Indian Contract Act, when is communication of a proposal complete?

   The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made (Section 4).

6. As per Section 4, when is communication of acceptance complete against the proposer and against the acceptor?

   Against the proposer: when the acceptance is put in a course of transmission so as to be out of the acceptor's power. Against the acceptor: when it comes to the knowledge of the proposer.

7. What are the essential elements of a valid contract under Section 10 of the Indian Contract Act?

   Free consent of parties competent to contract, lawful consideration, lawful object, and not expressly declared void.

8. What rule on acceptance was laid down in Carlill v. Carbolic Smoke Ball Co.?

   A general offer made to the world at large can be accepted by anyone who performs the conditions; in a unilateral offer, performance is acceptance and prior communication is not required.

9. What rule was established in Lalman Shukla v. Gauri Datt regarding acceptance?

   There can be no acceptance without knowledge of the offer; a person who performs an act without knowledge of the reward offer cannot claim the reward.

10. State the rules regarding a valid acceptance under the Indian Contract Act.

    Acceptance must be absolute and unqualified (Section 7), communicated, in a usual/reasonable manner, given while the offer is alive, and by the person to whom the offer was made. Silence is not acceptance.

11. How may a proposal be revoked, and when must revocation occur (Section 5)?

    A proposal may be revoked any time before the communication of its acceptance is complete as against the proposer, but not afterwards.

12. What is a 'counter-offer' and its effect on the original offer?

    A counter-offer is a reply that varies the terms of the original offer; it rejects and destroys the original offer (Hyde v. Wrench), and operates as a new offer.

13. How is 'consideration' defined under Section 2(d) of the Indian Contract Act?

    When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing, something, such act, abstinence or promise is called the consideration.

14. What are the three kinds of consideration based on time?

    Past consideration (act done before the promise), present/executed consideration (act done simultaneously with the promise), and future/executory consideration (promise to do something later).

15. Is past consideration valid under Indian law? How does this differ from English law?

    Under Indian law, past consideration is valid (the definition includes 'has done or abstained'). Under English law, past consideration is generally no consideration.

16. What is the doctrine of 'privity of consideration' and India's position on it?

    Privity of consideration means consideration must move from the promisee. In India, consideration may move from the promisee 'or any other person' (Chinnaya v. Ramayya), so a stranger to consideration can sue, unlike strict English law.

17. State the general rule and exceptions to the doctrine of privity of contract.

    General rule: only a party to a contract can sue on it (Tweddle v. Atkinson; Dunlop v. Selfridge). Exceptions: beneficiary under a trust/charge, marriage settlement/family arrangement, acknowledgment/estoppel, agency, and covenants running with land.

18. What is the general rule under Section 25 regarding agreements without consideration?

    An agreement made without consideration is void (Nudum pactum), unless it falls within the stated exceptions.

19. List the exceptions where an agreement without consideration is valid (Section 25).

    (1) Natural love and affection between near relations, in writing and registered; (2) Promise to compensate for past voluntary services; (3) Promise to pay a time-barred debt, in writing and signed. Also: completed gifts and agency (Section 185).

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