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Don Anselmo sold his land but he didn’t sell his Trees.

The old man shook hands of all, put on his ragged gloves, took his stick and walked out with the boy behind him, when he left the place with money.

The children of the village laughed and talked back in Spanish.

(a) Earthquake focus

b) overrunning

b. Don Anselmo was a man of principles.

His gloves were ragged.

(a) Epicenter

c)  flowers on the tree

(a)  twelve hundred dollars

(d) Earthquake

Cyclones, flood, excess rain, drought, snowfall etc. are included in seasonal disasters.

Those disasters which originate due to change in the season are called seasonal disasters. Flood, drought, thunderstorm, lightning are some examples of seasonal disasters.

(a) Topographical disaster

(d) raise the topic.

(b) more than eight acres

(c) Earthquake

(d) good people

1. Bank rate:

• Bank rate is the rate of interest which Reserve Bank of India charges on the loans and advances that it gives to the commercial banks for long term.
• At times, the commercial banks have shortage of funds and due to this reason, they borrow money which has to be repaid back with interest within the stipulated time period.
• If the bank rate is increased, commercial banks will borrow less money as it is expensive to borrow. Also, they will offer less amount of loan that too at higher rate of interest to their customers. The customers will then not be willing to take loans. Hence demand of goods and services will come down and inflation will be controlled.
• Thus, bank rate acts as a quantitative measure to control inflation in the economy.

2. Repo rate and reverse repo rate:

• RBI has stopped using bank rate as an instrument to regulate money supply. It now uses repo rate and reverse repo rate.
• When banks need money they approach RBI. The rate at which banks borrow money from the RBI by selling their surplus government securities to RBI is known as “Repo Rate.”
• Banks enter into an agreement with the RBI to repurchase the same pledged government securities at a future date at a pre-determined price.
• ‘Repo rate’ is short form of ‘Repurchase Rate’. Generally, these loans are for short durations up to 2 weeks. This means a bank may even take up loan for as low as 1 day.
• Thus, we can say that the Banks sell government securities to RBI in order to raise money for a very short term with a condition to repurchase them at some discount. Such a discounting rate is repurchase rate/repo rate.

Repo rate as a measure to control inflation:

• In case of inflation in the economy the RBI increases repo rate.
• Increasing repo rate discourages commercial banks to take loans as they would have to pay more interest to the RBI.
• Increase in repo rate forces commercial banks to increase interest rate of the loans it provides to the customer. Customers then borrow less money due to increased rates.
• This in turn reduces the purchasing power of the people thereby, reducing supply of money in the economy. Thus, increase in repo rate helps to curb inflation in the economy

Reverse repo rate:

• Reverse Repo rate is a short term borrowing rate at which RBI borrows money from commercial banks.
• Here, the RBI sells certain government securities to the commercial banks with an agreement of purchasing them back at a discounted rate at the end of short term period.
• RBI borrows money from commercial banks in two conditions:
  1. when they require additional funds and
  2. when they feel, there is too much money floating in the economy.
• Increase in reverse repo rate leads to increase in the incentives or interest that the commercial banks receive from RBI.
• Thus, the commercial banks will prefer giving loan to RBI instead of people. This will in turn reduce the supply of money in the market and thus, help in controlling inflation in the economy.
• It is a vice versa situation if the reverse repo rate is reduced i.e. it helps in controlling the deflation.

A person is said to have made a proposal/offer when he signifies to another, his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence. In other words, an offer is a proposal by one party to another to enter into a legally-binding agreement with him.

The interest on Rs 5000 after 4 years is Rs 1200. 

Let us suppose the interest on Rs 15000 at the same rate after 4 years is Rs x. 

Taking the ratio of interest and principal, we get 

∴ x/1500 = 1200/5000

∴ x = (1200 x 15000)/5000 

= Rs 3600 

∴ The interest received on Rs 15000 is Rs 3600.

1. When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true. 

2. When there is a breach of duty by a person which brings an advantage to the person committing it by misleading another to his prejudice.

The agreements are enforceable even though they are made without consideration, (according to Sec. 25).

Such cases are : 

1. A promise to pay for a past voluntary service is binding. 

2. Promise to pay a time-bound debt. 

3. No consideration is necessary to create an agency. 

4. When there is contract of donation, or completed gift, no consideration is required. 

5. A written and registered agreement based on natural love and affection between near relatives.

Special rights available to a minor under Indian Contract Act are as follows: 

(i) An agreement with or by a minor is void and inoperative. The privy council affirmed this view most emphatically in Mohri Bibi V/s Dharmodas Ghosh (1903) case. If in any agreement, a minor has taken the responsibility on his own or he has gained any property or money, then other party can’t enforce him to complete the responsibility or to pay back the money, whether other party knows about the minority of person or not. In the same way minor can reap the profit of the agreement, but can’t he held responsible for any loss.

(ii) A minor generally can’t enter into contract for taking loans or buying any current or fixed assets for profits, but can take loans to obtain necessities for life. Necessary goods are not restricted to those articles which are required to maintain a bare existence, but also include those articles which are reasonably necessary to the minor having regard to his standard in life. For e.g., food, cloth, travelling expenses, etc. are held to be necessities for a minor.

(iii) He can’t enter into a contract of partnership, but he may be admitted to the benefits of an already existing partnership with the consent of other partners.

(iv) He cannot be adjudged insolvent. This is because he is incapable of contracting debts.

(v) A minor can be an agent. A minor binds the principal by his acts without incurring any personal liability.

(vi) If he has received any benefit under a void agreement, he cannot be asked to compensate or pay for it according to Section 65, which provides for restriction in case of agreements discovered to be void and it does not apply to a minor.

(vii) He can always plead minority. Even if he has, by misrepresenting his age, induced the other party to contract with him, he cannot be sued either in contract or for fraud.

No, insurance is not a wagering agreement, it is a valid agreement.

Any agreement not enforeceable by law is called void agreement. Such agreements do not create any legal obligation between the parties, and are void ab initio. The Contract Act specifically declares certain agreements to be void, which are as follows :

1. Agreements between incompetent parties – minor, lunatic, idiots, persons disqualified by law, etc. (Sec. 11) 

2. Agreements made under a mutual mistake of fact. (Sec. 20) 

3. Agreements, the consideration or object of which in unlawful in part. (Sec. 24) 

4. Agreements, the consideration or object of which is unlawful. (Sec. 23) 

5. Agreements, made without consideration. (Sec. 25) 

6. Agreements is restaint of marriage. (Sec. 26) 

7. Agreements in restraint of trade. (Sec. 27) 

8. In restraints of legal proceedings. (Sec. 28) 

9. Agreements, the meaning of which is uncertain. (Sec. 29) 10.Agreements by way of wager. (Sec. 30)

Coercion is the committing or threatening to commit any act forbidden by the IPC or the unlawful detaining or threatening to detain any property, to the prejudice of any per-son, whatsoever, with the intention of causing any person to enter into an agreement.

(d) All of these

Yes, this is a coercion as this is against the Indian law.

Coercion is the committing or threatening to commit any act forbidden by the Indian Penal Code or the unlawful detaining or threatening to detain any property, to the prejudice of any person whatsoever, with the intention of causing any person to enter into an agreement.

Contractual capacity means competence of the parties to enter into a valid contract. 

According to Sec. 11, every person is competent to contract : 

1. Who has attained the age of maturity. 

2. Who is of sound mind. 3. Who is not disqualified by any law.

(a) Acceptance.

Fraud means an act committed by a party to a contract or with his connivance or by his agent with the intent to deceive or to induce a person to enter into a contract.

Agreements, the meaning of which is not certain or capable of being made certain, are void (Sec. 29). 

Example : ‘A’ agrees to pledge ‘B’ all the grain stored in his granary at Ramnagar. There is no certainty about what the quantity or kind or quality they are.

‘Consent’ for a valid contract must be free. 

Mistakes may be defined as an erroneous belief about something. It is in fact, an incorrect belief, which leads one party to misunderstand other.

(c) Both (a) & (b)

Consent is said to be free when it is not caused by : 

1. Coercion 

2. Undue influence 

3. Fraud 

4. Misrepresentation 

5. Mistake

(d) All of these

An absolute contract is one in which the promisor binds himself for performance in any event without any condition.

Consent is said to be free and two or more persons are said to consent when they agree upon the same thing in the same sense (Sec. 13).

The consent of the parties is said to be free when they are of the same mind on all the material terms of the contract. The parties are said to be of the same mind when they agree about the subject matter of the contract in the same sense and at the same time.

According to Section 11 : 

all the agreements are contracts if they are made by free consent of parties. Consent is said to be free and two or more persons are said to consent when they agree upon the same thing in the same sense (Sec. 13).

According to Section 14, consent is said to be free when it is not caused by :

1. Coercion, 

2. undue influence, 

3. fraud, 

4. misrepresentation, 

5. mistake.

Example: 

Ajay is forced to sell his Maruti car for ₹ 25,000 to Vijay at the point of pistol. In this case, Ajay sells the car but his consent is not free. Under coercion, Vijay got Ajay’s consent.

Importance of Free Consent for Contracts : 

For a contract to be valid, the free consent of the parties is most important. If any of the party’s consent is not free, then that agreement is not valid on his part. Importance of free consent can be explained by following:

1.If by fraud or misrepresentation, one party has given the property to other, then the first party has the right to take it back.

1. Alien enemy 

2. Foreign sovereign 

3. Convict 

4. Corporation & company 

5. Insolvent.

Wagering agreement is one, by which one promises to pay money or money’s worth on the happening of some uncertain event in consideration of the other party’s promise to pay if the event does not happen.

1. These are created by law. 

2. An obligation is imposed by a law upon a person for the benefit of another, even in the absence of contract. 

3. There is no express contract between the parties. 

4. Quasi contracts are also known as law of restitution.

Lunatics, idiots, drunken or intoxicated persons are known as persons of unsound mind.

Discharge of a contract or end of a contract means the termination of the contractual relationship between the parties.

1. Quotations 

2. Catalogues.

A contingent contract is a contract to do or not to do something if some event, collateral to such contract, does or does not happen (Sec. 31). Where, For example : goods are sent on approval, the contract is a contingent one, depending on the acts of the buyer to accept or reject the goods. 

Example : 

Ram contracts to pay ₹ 10,000 if Ramesh’s house is burnt. This is a contingent contract. Therefore, contingent contracts depend on the happening of an uncertain future event and cannot be enforced till the event has happened. If the event becomes impossible, such contracts become void.

Sec. 23 declares that the ‘object’ or the ‘consideration’ of an agreement needs to be lawful. The word ‘object’ means purpose or design and ‘consideration’ means something in return, as such both object and consideration of an agreement must be lawful, otherwise the agreement is considered to be void.