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Indian Contract Act (Law)

Which one of the following facts constitutes a Contingent Contract?

ZamamAshraf No Comments

A.A contracts to pay B Rs. 10,000 if B’s house is burnt

B.Where a salt lake was offered by way of lease on deposit of a sum of money within a specified period

C.Acceptance of a tender for up to 1000 tons of coal to be supplied as and when any order is placed during the financial year

D.When a bank offers a locker to its customer subject to the condition that the customer makes a fixed deposit of rupees one lac with the bank before the end of the month

Whether consideration under a contract, for the contract to be valid, can only be exchanged between the parties to the contract, and not by or between third persons who are not parties to the contract?

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A.Consideration can be paid even by third party to a contract

B.Consideration to a contract cannot be paid by third party to a contract, except when payment is by a negotiable instrument

C.Consideration can be exchanged even between third parties to a contract but only when third parties are legal heirs of the original parties to the contract

D.Consideration can be exchanged between persons who are not parties to the contract if at least some part of the consideration is received between the parties to the contract

X hands over her expensive saree for cleaning to a dry cleaner who loses the same. X claims the total value of the saree. The dry cleaner refers to a clause printed in the contract receipt which states that the dry cleaner can be held liable for Rs. 50 or 10% of the original value of the cloth only, whichever is less. Which one of the following propositions holds good to explain the correct position of law on the point?

ZamamAshraf No Comments

A.The Court generally does not entertain such frivolous cases

B.The Court will rely upon the clause in contract receipt and award only 10% of the cost of the saree (or Rs. 50 if it is less)

C.The Court will award reasonable damages, ignoring the clause as unreasonable

D.None of the above

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