Questions 21 – 25 (Each Question Carries 4 Marks – Attempt All)
Q21. Explain Preventive Reliefs / Perpetual Injunctions.
Answer:
Preventive relief is a remedy granted by the court to prevent the commission of a wrongful act instead of compensating after the damage has been done. It is mainly granted in the form of injunctions.

An injunction is an order of the court restraining a person from doing a particular act. When such injunction is granted permanently, it is called a perpetual injunction.

According to Section 38 of the Specific Relief Act, 1963, a perpetual injunction may be granted to prevent the breach of an obligation existing in favor of the plaintiff.

Preventive relief is granted when:
• The defendant threatens to invade the plaintiff’s rights.
• Damages are not an adequate remedy.
• There is a continuing breach of obligation.

Example:
If A threatens to illegally construct on B’s land, B may obtain a perpetual injunction restraining A from doing so.

Section Related:
✔ Sections 36–42 – Specific Relief Act, 1963.
Simple Explanation: The court stops a wrong act before it causes damage.
Q22. Explain What is a Valid Contract.
Answer:
A valid contract is an agreement which is enforceable by law. It creates legal rights and obligations between the parties.

According to Section 10 of the Indian Contract Act, 1872, all agreements are contracts if they are made by free consent of parties competent to contract, for a lawful consideration and lawful object, and are not expressly declared to be void.

Essentials of a Valid Contract:
• Offer and acceptance.
• Intention to create legal relationship.
• Lawful consideration.
• Capacity of parties.
• Free consent.
• Lawful object.
• Certainty of terms.
• Possibility of performance.

Example:
A agrees to sell a car to B for ₹2 lakhs. Both agree freely and lawfully. This is a valid contract.

Section Related:
✔ Section 10 – Indian Contract Act, 1872.
Simple Explanation: A valid contract is a legal and enforceable agreement.
Q23. Explain Novation / Discharge by Novation.
Answer:
Novation means substitution of a new contract in place of an old one. It results in the discharge of the original contract and creation of a new contract.

According to Section 62 of the Indian Contract Act, 1872, if the parties agree to substitute a new contract, or rescind or alter it, the original contract need not be performed.

Novation may take place by:
• Change of parties.
• Change of terms.
• Substitution of a new agreement.

All parties must agree for novation to be valid.

Example:
A owes B ₹1,000. B agrees to accept C as debtor instead of A. The old contract is discharged by novation.

Section Related:
✔ Section 62 – Indian Contract Act, 1872.
Simple Explanation: Old contract ends and a new one replaces it.
Q24. Explain Doctrine of Privity of Contract.
Answer:
The doctrine of privity of contract means that only the parties to a contract can sue or be sued upon it. A stranger to the contract cannot enforce the rights under it.

The contract creates rights and obligations only between the contracting parties and not in favor of third persons.

According to this doctrine, consideration must move from the promisee and only he can enforce the contract.

Exceptions to Privity:
• Trusts.
• Family settlements.
• Acknowledgement by conduct.
• Assignment of contract.
• Charge on land.

Example:
A contracts with B to pay C. C cannot sue A as he is not a party to the contract.

Simple Explanation: Only the people who made the contract can enforce it.
Q25. Explain Standard Form of Contract.
Answer:
A standard form of contract is a pre-prepared contract where the terms are fixed by one party and the other party has little or no power to negotiate.

Such contracts are also called adhesion contracts or take-it-or-leave-it contracts.

They are commonly used in insurance, transport, banking and online services.

Features of Standard Form Contracts:
• Prepared by one party.
• No negotiation.
• Same terms for all users.
• Saves time and cost.

Courts protect weaker parties from unfair clauses in such contracts.

Example:
Railway tickets and insurance policies are standard form contracts.

Simple Explanation: One side fixes the terms, the other only accepts.
Questions 26 – 29 (Each Question Carries 4 Marks – Attempt All)
Q26. Explain Free Consent.
Answer:
Free consent means that the parties to a contract have agreed upon the same thing in the same sense without any pressure, mistake, fraud, coercion, undue influence or misrepresentation.

According to Section 13 of the Indian Contract Act, 1872, two or more persons are said to consent when they agree upon the same thing in the same sense (consensus ad idem).

Consent is said to be free when it is not caused by:
• Coercion (Section 15).
• Undue influence (Section 16).
• Fraud (Section 17).
• Misrepresentation (Section 18).
• Mistake (Sections 20–22).

If consent is not free, the contract becomes voidable at the option of the aggrieved party.

Example:
A forces B at gunpoint to sell land. B’s consent is not free and the contract is voidable.

Section Related:
✔ Sections 13–22 – Indian Contract Act, 1872.
Simple Explanation: Agreement must be made willingly, not by force or cheating.
Q27. Explain Immoral Agreements.
Answer:
An immoral agreement is an agreement whose object or consideration is opposed to morality and good conscience. Such agreements are not enforceable by law.

According to Section 23 of the Indian Contract Act, 1872, the consideration or object of an agreement is unlawful if it is immoral or opposed to public policy.

Courts refuse to enforce contracts that promote sexual immorality, corruption, or exploitation of others.

Examples of Immoral Agreements:
• Agreement for prostitution.
• Agreement for illegal cohabitation.
• Agreement to procure a woman for immoral purposes.

Such agreements are void and no legal remedy is available to the parties.

Section Related:
✔ Section 23 – Indian Contract Act, 1872.
Simple Explanation: Contracts against morality are illegal and unenforceable.
Q28. Explain Accord and Satisfaction.
Answer:
Accord and satisfaction is a mode of discharge of contract where the parties agree to accept something different from what was originally agreed and perform it accordingly.

Accord means the agreement to accept a different performance, and satisfaction means the actual performance of that agreement.

According to Section 63 of the Indian Contract Act, 1872, the promisee may dispense with or remit wholly or in part the performance of the promise made to him, or accept instead any satisfaction he thinks fit.

Once satisfaction is completed, the original contract stands discharged.

Example:
A owes B ₹1,000. B agrees to accept ₹800 in full settlement. On payment, the contract is discharged.

Section Related:
✔ Section 63 – Indian Contract Act, 1872.
Simple Explanation: Parties agree to settle the contract differently and complete it.
Q29. Explain Actual Breach of Contract.
Answer:
Actual breach of contract occurs when a party fails to perform his obligation on the due date of performance or during the performance of the contract.

It may take place in two ways:
• When a party refuses to perform on the due date.
• When a party has performed incompletely or improperly.

Actual breach gives the aggrieved party the right to sue for damages immediately.

Example:
A agrees to deliver goods to B on 10th June. A does not deliver on that date. This is actual breach.

Effect:
• Contract comes to an end.
• Injured party can claim damages.

Simple Explanation: When a party does not perform on time, it is actual breach.