MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Important Laws

A contract is...

Question

A contract is termed valid and binding if _______ exists.

A

offer, acceptance, consideration and intention to create legal relation

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

offer, acceptance, certainty, practically and intention to create legal relations

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

offer,acceptance, certainty, consideration and reasonableness

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

offer, acceptance, certainty, consideration, free consent and intention to create legal relations

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is C offer, acceptance, certainty, consideration, free consent and intention to create legal relations
According to the India Contract Act, 1872 offer, acceptance, consideration, certainty, free consent and intention to create legal relations.
Essentials of a contract are given under Section 10 of Indian Contract Act, 1872.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Principle: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for the determination of such intention of the parties is to be ascertained from the terms of the agreement and the surrounding circumstances under which such an agreement is entered into.
As a general rule, in the case of arrangements regulating social relations, it follows as a matter of course that the parties do not intend legal consequences to follow. On the contrary, as a general rule, in the case of arrangements regulating business affairs, it follows as a matter of course that the parties intend legal consequences to follow. However, the above rules are just presumptive in nature and hence can be rebutted.
Facts: One morning while having breakfast, 'X', the father, says to 'Y' (X's son), in a casual manner, 'I shall buy a motorbike for you, if you get through the CLAT.'
Which of the following derivations is correct?

Q. Given below is a statement of legal principle followed by factual situation. Apply the principle to the facts and select the most appropriate answer.
Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer.
A sent a letter to B stating that he was willing to sell to B,

10

bags of rice at

R s . 20 / -

each. B made a telephone call to A to inform him that he had accepted the offer. Just as he was stating his acceptance, a very noisy aircraft few over B's house. A was not able to heat the acceptance.

Q. Legal Principle: The acceptance to an offer should be given only in the mode prescribed by the proposer, for a contract to become enforceable.

Factual Situation: A offered to buy a horse from B requesting that the acceptance should be sent through A's agent. B sent his acceptance through his servant, who reached A's office a day after A's agent reached.

Is A bound by B's acceptance?

Q. Legal Principle: A contract requires a proposal and an acceptance of the proposal. To make a binding contract it is necessary not only that the proposal be accepted, but also that the acceptance is notified to the proposer.

Factual Situation: Harvey sent a telegram to Facie stating 'will you sell us the estate of Bumber Hall pen for

$

4,900. Harvey sent another telegram to Facie stating 'We agree to buy Bumper Hall pen for a sum of

$

4,900 asked by you. Please send us your title deeds in order that we may get early of possession.' But Facie did not sent any reply to the last telegram sent by Harvey.Hence, Harvey filed a case against facie claiming the Bumber Hall Pen estate.
Issue: Is there valid contract between Harvey and Facie?

Q. Legal Principle: An agreement made with the intention of entering into legal relationship gives rise to a contract.
Factual Situation: Two firms entered into a written contract for the sale and purchase of tissue paper. The agreement contained a clause to the effect that 'this agreement is not entered into, nor is this memorandum written, as a formal or a legal document, and shall not be subject to legal jurisdiction in the law courts'. Since the goods were not delivered, the buyers brought an action for non-delivery.
Issue: Are the sellers liable?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Legal Protection of Consumers

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Standard XII Business Studies

Join BYJU'S Learning Program

CrossIcon