Legal Reasoning Questions for CLAT | QB Set 48 [Valid Contract]

Under Section 2(h) of the Indian Contract Act, 1872, a contract is an agreement enforceable by law. For an agreement to become a valid contract, certain essentials must be fulfilled. There must be a lawful offer and lawful acceptance leading to consensus ad idem, meaning both parties agree upon the same thing in the same sense. The agreement must be supported by lawful consideration, unless it falls within statutory exceptions.

The parties must be competent to contract, i.e., they must have attained the age of majority, be of sound mind, and not be disqualified by law. Consent must be free and not caused by coercion, undue influence, fraud, misrepresentation, or mistake. The object and consideration must be lawful and not opposed to public policy. The agreement must not be expressly declared void under the Act. Further, there must be an intention to create legal relations. Only when these elements coexist does an agreement become legally binding and enforceable.

Q1.

Ritika offered to sell her “white sedan car” to Arjun for ₹6 lakhs. Arjun believed that Ritika was referring to her newly purchased luxury sedan, while Ritika actually intended to sell her older model sedan parked at her farmhouse. The agreement was reduced to writing but did not specify the registration number or model details. Upon delivery, Arjun refused to accept the older vehicle.

Which of the following best describes the legal position?

A. The contract is valid because the price was fixed.
B. The contract is valid because it was in writing.
C. The contract is void due to absence of consensus ad idem.
D. The contract is voidable at Arjun’s option.

Answer: C

Q2.

Kunal, aged 16 years and 10 months, entered into an agreement with Mr. Sethi to purchase a high-end laptop worth ₹1,20,000 for his gaming channel. He paid ₹20,000 as advance from his savings and promised to pay the remaining amount in installments. After two weeks, Kunal refused to proceed with the agreement, claiming minority.

What is the correct legal position?

A. The contract is valid because part payment was made.
B. The contract is enforceable if guardian ratifies it.
C. The contract is voidable at Kunal’s option.
D. The agreement is void ab initio.

Answer: D

Q3.

Mehak agreed to transfer her shares in a company to Zaid for ₹10 lakhs. However, Zaid threatened to falsely implicate Mehak in a criminal complaint if she refused to execute the transfer deed. Out of fear of reputational harm and legal harassment, Mehak signed the agreement.

What is the legal status of this contract?

A. It is voidable at the option of Mehak due to coercion.
B. It is void because transfer of shares requires registration.
C. It is valid since consideration exists.
D. It is automatically illegal.

Answer: A

Q4.

Priyansh promised to give his sister Rhea ₹2 lakhs as a token of affection when she secured admission to a reputed university. The promise was made verbally during a family dinner and was accepted by Rhea. No written document was executed, and no consideration moved from Rhea.

Which of the following is correct?

A. The agreement is valid because it was accepted.
B. The agreement is not enforceable due to absence of consideration.
C. The agreement is voidable at Priyansh’s option.
D. The agreement is valid as it is between relatives.

Answer: B

Q5.

Samar entered into an agreement with Vikram to transport prohibited wildlife products across state borders in exchange for ₹8 lakhs. Both parties voluntarily agreed to the terms and fixed the consideration. Before performance, a dispute arose and Samar approached the court seeking enforcement.

What is the correct legal position?

A. The contract is valid because consent was free.
B. The contract is voidable at Samar’s option.
C. The contract is void because its object is unlawful.
D. The contract is enforceable if partially performed.

Answer: C