Q A Series 2025 - S No 14 - Legal Points - Part 6

 

The Banking Tutor

Question Answer Series 2025

S No 14                                                                    27-06-2025

Legal Points – Part 06 

126. What is a Tacit Contract ? 

A tacit contract is an agreement between two or more parties that is not explicitly stated, but rather implied by their actions or conduct. It's an unspoken understanding where the intent to create a contract is inferred from the parties' behavior, rather than through words or written document. 

127. What is an Express Contract? 

An express contract is a legally binding agreement where the terms are clearly stated, either orally or in writing. 

128. What is an Implied Contract ? 

An implied contract, on the other hand, is one where the agreement is inferred from the conduct, actions, or circumstances of the parties involved, rather than through explicit words. 

129. What is an Executed Contract ? 

An executed contract is one where both parties have fulfilled all their obligations, and the agreement is complete. 

130. What is an Executory Contract ? 

An executory contract is one where obligations are still outstanding and have not been fully performed. 

131. What is a Partly Executed Contract ? 

A "partly executed and partly executory contract" is a contract where one party has already fulfilled their obligations, while the other party still has obligations to perform. In essence, it's a contract where some parts of it have been completed (executed), while other parts are still outstanding (executory). 

132. What is a Unconscionable contract ? 

An unconscionable contract is one that is so unfair and one-sided that no reasonable person would agree to it. 

133. What is an Adhesion Contract ? 

An adhesion contract, also known as a standard form or boilerplate contract, is a pre-written agreement drafted by a party with greater bargaining power, offered on a "take it or leave it" basis to another party. Essentially, the weaker party has little to no ability to negotiate the terms and must either accept the contract as is or decline the deal. 

134. What is an Aleatory Contract ? 

An aleatory contract is a type of agreement where the obligations of one or both parties depend on an uncertain future event, often involving an element of chance or risk. 

135. What is an Option Contract ? 

An option contract is a financial agreement giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) within a specific timeframe. 

136. What is a General Offer ? 

General Offer is an offer to the whole world. 

137. What is a Specific Offer ? 

Specific  is an offer made to a particular person or group of persons. 

138. What is an Express Offer ? 

Express offer  is an offer which is made by words either oral or in writing. 

139. What is an Implied Offer ? 

Implied offer is an offer which is made by conduct or gesture of the parties. 

140. What is a Counter Offer ? 

Counter offer - When a person to whom the offer is made does not accept the offer [as it is] he counters the condition. This is called counter offer. 

141. What is Cross Offer ? 

Cross offer - When two offers of same terms and conditions cross each other at same time, it is called cross offer. 

142. What is a Standing Offer ? 

Standing offer - An offer is a standing offer if it is intended to remain open for a specified period. 

143. What is Doctrine of Privity ? 

Doctrine of privity of contract means stranger to contract cannot sue. 

144. What is the effect of Ignorance of Inland Law? 

Ignorance of Inland law is not an excuse at all. 

145. What is the effect of Ignorance of Foreign Law ? 

Ignorance of foreign law may be excused. 

146. What are wagering agreements ? 

Wagering agreements are nothing but ordinary betting agreements. 

147. What is meant by Rescission in the context of contracts ? 

Rescission means the cancellation of the contract. 

148. What is meant by Remission  in the context of contracts ? 

Remission means the acceptance of lesser fulfilment of the terms of the promise.

149. What are Liquidated damages  ? 

 Sometimes the parties to a contract will agree to the amount payable in case of a breach. This is known as liquidated damages. 

150. What are   Unliquidated Damages damage ? 

 If the amount payable due to the breach of contract is assessed by the courts or any appropriate authorities, such penalty is known as Unliquidated Damage. 

 

Next Issue  will be shared on 29^th    June 2025.

Sekhar Pariti

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