Organization and Management for Banking Diploma: Part-1 (1)

Category: Bank
Posted on: Monday, September 18, 2017

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Q.1 Define Contract.

Ans.: “An agreement enforceable by Law is a Contract.” [Section 2(h)]

 Q.2 What is implied contract?

Ans.: An agreement which is not made by written or spoken words of parties but it is evidenced from the acts or conduct of the parties or according to prevailing conditions.

 Q.3 What is quasi contract?

Ans.: The contract which is not created by proposal and acceptance but imposed by law based on the principle of equity.
Q.4 Distinguish between void and voidable contract.
 
Ans.: A void contract is ab-initio void hence, cannot be enforced by law on the other hand enforceability of a voidable contract, depends upon the will of the aggrieved party.

 Q.5 What is the difference between void Agreement and Void contract?

Ans.: Void agreement is void from beginning (ab-initio) whereas void contract becomes void when aggrieved party chooses to rescind it.

 Q.6 What is general and standing offer?

Ans.: The offer made to the public in general and any one can receive, it is general offer, whereas standing offer is an offer made as tender to supply goods as and when required amounts to a standing offer.

 Q.7 What is cross offer and counter offer?

Ans.: When two parties exchange identical offers in ignorance at the time of each other’s offer, it is called cross offer, on the other hand when offeree offers variations in the original offer, it is called as counter offer.

 Q.8 What is executed and executory contract?

Ans.: A contract in which all the parties to the contract have performed their respective obligation is known as executed contract, whereas Executory contracts is one in which all or something still remain to be fulfilled or performed by the parties.

Q.9 What is Bilateral and Unilateral contract?

Ans.: Bilateral contract is one in which both the parties exchange a promise to each other, which is to be performed in future, but still outstanding hence, it is called bilateral contract and similar to executory contract. On the other hand, Unilateral contract is one in it a promisor promises to do something. In such a contract, promisor binds himself to perform his promise but the offerer does not do so. Therefore, it is called Unilateral Contract.

 Q.10 Explain capacity to contract.

Ans.: The term capacity to contract means competence to legally enter into a contract that is legally binding to the parties.

 Q.11 Who is a Minor?

Ans.: A minor is a person who has not completed eighteen years of age. Who has not completed the age of 21 years in case the court has appointed guardian or superintendence of court of wards of minor’s property.

 Q.12 What is Consent?

Ans.: According to Section 13 “Two or more persons are said to consent when they agree upon the same thing in the same sense.” It is Unison or meeting of mind or consensus ad idem.
 Q.13 What is Coercion?

Ans.: According to Section 15 of Indian Contract Act, 1872, “Committing any act forbidden by Indian Penal Code or detaining or threatening to detain property of another for getting consent is coercion.”

 Q.14 Explain undue influence.

Ans.: When a dominating party misuses his influence to dominate the will of the weaker party to get undue or unfair advantage in a contract, then it is called undue influence (Section 16).

 Q.15 What do you mean by fraud?

Ans.: According to Section17, “The term fraud is the intentional misrepresentation or concealment of material facts of an agreement by a party to or by his agent with an intention to deceive and induce the other party to enter into an agreement.

 Q.16 What do you mean by misrepresentation?

Ans.: It is defined under section 18. It means any innocent or without intentional false statement or positive assertion of fact made by one party to the other during the course of negotiation of a contract is known as misrepresentation.

 Q.17 What is mistake?

Ans.: It is defined under Section20 to 22, “It is an erroneous belief about something.When the consent of one or both the parties to a contract is caused by misconception or erroneous belief, the contract is said to be induced by mistake. It is mistake of law and mistake of fact. The mistake of Indian Law is enforceable, not void but mistake of foreign law is void. When mistake made by a person it is unilateral mistake and mistake is made by both the parties, it is bilateral mistake.

 Q.18 What is consideration?

Ans.: It is quid-pro-quo means something in return. Hence, consideration is the price paid by promise for the obligation of the promise.

 Q.19 What is doctrine of privity of contract?

Ans.: A person who is not a party to the contract cannot sue upon it. Only the party to the contract can enforce the same.

Q.20 What is Ex-Nudo-Pacto Nor-Oritur actio mean?
Ans.: It means from bare promise, no right of action can arise.