Legal Aptitude Questions for CLAT 2021 | Law of Contract Quiz with PDF at Smartkeeda

Directions: Read the questions carefully and choose one of the  options as your answer.
Important for :
Legal Principle : A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the pro¬posal be accepted, but also that the acceptance is notified to the proposer.
Factual Situation : Diu offered to purchase a home owned by Pawan for 20,00,000. He wrote to Pawan's agent ask¬ing whether his offer was accepted. He also added that he was ready to accept any higher price if found reasonable. The agent of pawan Shyam sunder replied, 'would not accept less than 30,00,000'. Diu accepted this and brought a suit in a local court for specific performance.
Issue : Is Pawan liable for specific performance? 
» Explain it
Pawan is not liable because there is only and invitation to offer from Pawan’s agent. There is no meeting of the minds, hence no valid contract can be formed. 
Hence option B is correct.

Legal Principle : A counter offer doesn't give rise to contractual binding.
Factual Situation : Aman offered to sell a Rolls Royce for $1,500 to Xiaomi  who said he would give $800. Aman refused and Xiaomi who then said he would give $1,500. Aman declined to adhere to his original offer and Xiaomi tried to obtain specific performance in the court. Decide as a judge?
Issue : Is there a valid contract between Aman and Xiaomi?
» Explain it
The original offer was not accepted by Xiaomi and thus his claim for specific performance will fail in the court. 
Hence option B is the correct answer.

Legal Principle : '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 to abstain from doing, something, such act or abstinence or promise, is called a consideration for the promise'.
Factual Situation : A doctor gave up his lucrative practice in the city and served as manager of an ashram at the Ashram’s request in lieu of which the manager of the ashram subsequently promised a monthly remuneration.
Issue : What is the nature of contract?
Decision :
» Explain it
Consent of the doctor is not taken by misrepresentation or fraud or undue influence. Contract is valid. 
Hence option A is the right answer.

Legal Principle : Communication of offer and acceptance is must for a valid contract.
Factual Situation :  A proposes by speed post, to sell a watch to B at a definite price. A revokes his proposal by email after 6 hours to B.
Issue :  Whether the revocation of an offer is valid? 
Decision :
» Explain it
Revocation must be done before B has accepted the proposal. A has revoked before post reached B.

Hence option A is the right answer.
Legal Principle : An agreement, the meaning of which is not certain, or capable of being made certain, is void.
Factual Situation : Mohan offered to sell land to Nimrat at 80 lakhs. Nimrat replied accepting the offer and enclosing 30 lakhs and promising to pay the balance amount by monthly installments of 50000 each. Since Nimrat accepted the offer subject to making full payments in installments, decide as a judge whether there is a valid contract?
» Explain it
Invalid as the offer was for full 80 lakhs and not in instalments.
Hence option B is the right answer.

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