27 February 2024

Daily practice questions for CLAT - (27 February 2024)



To call a contract valid, the parties must consent to it freely and voluntarily. The principle of consensus-ad-idem is followed meaning the contracting parties must mean something in the same sense. The contracting parties must have an identical understanding in regards to the contents of the contract. In contract law in India, the meaning of consent is given in Section 13, which states that “it is when two or more persons agree upon the same thing and in the same sense”. So the two people must agree to the same thing in the same sense as well. Just giving consent is not enough for a contract to be enforceable. The consent given must be free and voluntary. The definition of free consent provided under Section 14 of the Indian Contract Act is Consent that is free from Coercion, Undue Influence, Fraud, Misrepresentation, or Mistake. Consent is said to be so caused when it would have been given in the absence of such factors. The aim of this concept is to make sure that decision of the contracting parties was clear since the contract’s inception. Therefore consent given under coercion, undue influence, fraud, misrepresentation, or a mistake has the potential to invalidate the contract. Actual consent may be expressed through words or actions, or silence or inaction when the situation is so that the silence or inaction is intended to give consent; it is not always essential to communicate actual consent to the contracting party. Apparent consent exists when a person’s actions or words, silence or inaction, would be understood by a reasonable person as intended to give consent. However, a genuine but irrational belief that the other person is consenting to a contract does not constitute apparent consent. If consent is given under any of the above circumstances, the contract is considered voidable at the will of the aggrieved party, as in accordance with section 19 of the Indian Contract Act, 1872. Thus to constitute a contract that is valid in nature, the important element is free consent.

Question1:- Pluto asks his servant Neptune to sell his piece of land at a lower price than the market price. Newton sells the plot at a half rate. Newton can avoid the contract on the ground of-
  • A. Undue influence
  • B. Mistake
  • C. Fraud
  • D. Coercion
Answer is A is correct. Undue influence is an equitable doctrine that involves one person taking advantage of a position of power over another person. This inequity in power between the parties can vitiate one party's consent as they are unable to freely exercise their independent will. Here, since Newton is the servant of Pluto, there is an implied understanding that undue influence is present. Hence, A is the correct option.
Question2:- Consider the following statement(s) with respect to Undue Influence:
Statement I: Undue influence is considered a subtle species of fraud.
Statement II: Undue influence is an equitable doctrine that involves one person taking advantage of a position of power over another person.
  • A. Statement I is correct and Statement II is incorrect
  • B. Statement I is incorrect and Statement II is correct
  • C. Both the statements are correct
  • D. Both the statements are incorrect
Answer is C is correct. Undue influence is said to be subtle species of fraud due to which a party controls the mind of the victim by his clever skills and with gradual proceedings but with very harmful effects. Sometimes the contract is signed due to fear, coercion, importunity, or other domination. Both the statements are factually correct. Hence, C is the correct option.
Question3:- Read the passage carefully and choose the incorrect statement from the following options.
  • A. Consent is an essential part of a valid contract
  • B. Fraud results in an illegal contract.
  • C. Consensus ad idem means agreeing in the same sense.
  • D. Voluntary consent is as important as a free consent
Answer is B is correct. Fraud results in a contract voidable at the option of the aggrieved party and not in an illegal contract. Hence, B is the correct option.
Question4:- X owns a cow and a calf which he further sells to Y. X knows that the calf has a damaged foot but he hid the fact about the foot and placed the calf in a manner to avoid detection while selling. However, Y subsequently discovers the defect in the foot. The act of X in the given case would amount to-
  • A. False suggestion
  • B. Active concealment of fact
  • C. Misrepresentation
  • D. Mistake of fact
Answer is B is correct. X had prior knowledge of the defect in the calf’s foot even then he actively concealed the material fact. Therefore he would be liable for active concealment of fact which is one of the essential elements of fraud as defined under Section 17 of the Indian Contract Act, 1872. Hence, B is the correct option.
Question5:- If consent is given under any of the factors such as Coercion, Undue Influence, Fraud, Misrepresentation, or Mistake, then the contract is-
  • A. Void agreement
  • B. Illegal
  • C. Voidable
  • D. Irregular
Answer is C is correct. If consent is given under any of the above circumstances, the contract is considered voidable at the will of the aggrieved party, as in accordance with section 19 of the Indian Contract Act, 1872. Hence, C is the correct option.

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