PRINCIPLE: A contract is an agreement enforceable by law. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object.
FACT: A, a 40-year-old businessman of sound mind, agrees to sell his bungalow worth 40 lakhs for 1 lakh. The agreement is:
(1) Invalid due to inadequate consideration
(2) Valid as there is lawful consideration
(3) Valid as A entered into it with free consent
(4) Valid because A has capacity to contract.

Indian Contract Act:- Gods displayed in showcase of a shop with price tag is -

A. Invitation to offer

B. Counteroffer

C. Communication

D. None of these

X' in consideration of Rs. 10,000 lent by Y & Z, provides Y & Z jointly to repay them that sum with interest on a specified day. Y dies. The right to claim the performance

A. Is available to Y's representatives alone

B. Is available to Z alone

C. Is available to Y's representatives & Z both

D. Is available to Y's representatives & after the death of Z, his representatives

Moses v. Macferlan (1555-1774) is a case relating to

A. Theory of unjust enrichment

B. The right of lien

C. Test of agency

D. Doctrine of frustration

Which of the following act will not amount to 'fraud' within the meaning of Section 17 of The Indian Contract Act?

A. The active concealment of a fact by one having knowledge or belief of the fact

B. A promise made without any intention of performing it

C. The suggestion, as a fact, of that which is true, by one who does believe it to be true

D. None above