Question 1 OR (a)

True or false: fraud; voidable contract and a stranger; quasi contracts

9 marks

Time to write
About 18 minutes

From an older CBCS paper

Question

Question 1 OR (a) · 9 marks

Giving brief reasons, State whether each statement below is True or False:

  1. Fraud is a wilful misrepresentation of facts.

  2. A stranger can enforce a voidable contract.

  3. Quasi contracts rest on the principle of unjust enrichment.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • State whether…A verdict for each (True or False), then the reason that decides it.

What the paper leaves open

The only copy of this paper found is cut off at the right edge of the page; the few words lost there are read from the sense and from the Hindi version of the question. The mark for this part is not legible on the copy; it is reckoned here at 9 marks, the paper's own split for its other questions.

Write it in this order

The parts stand alone: start with the one you are surest of.

A step that gives the answer away stays hidden: tap it to see it.

  1. Read each statement; find the word that decides it 1 min
  2. 1 (i) Fraud 3 marks 5 min
  3. 2 (ii) Voidable contract and a stranger 3 marks 5 min
  4. 3 (iii) Quasi contracts and unjust enrichment 3 marks 5 min
  5. Check: a verdict and a reason for every statement 2 min

Short on time? A few lines on every part beat a full answer to one: each part is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

(i)True Under section 17 of the Indian Contract Act, 1872, fraud includes “the suggestion as a fact of that which is not true by one who does not believe it to be true”, the active concealment of a fact, a promise made without intention of performing it, and any other act fitted to deceive, done by a party to the contract with intent to deceive the other or to induce him to enter into the contract. Fraud is thus a wilful, deliberate misrepresentation: the person making it knows it to be untrue and intends to deceive.

(ii)False As a rule only a party to a contract can sue on it; a stranger to the contract cannot (the doctrine of privity of contract), subject to exceptions such as a beneficiary under a trust. The option to avoid or affirm a voidable contract belongs to the party whose consent was not free; a stranger cannot exercise it, and none of the exceptions gives him that option.

(iii)True Quasi contracts are obligations resembling those created by contract, imposed by law though the parties never contracted; they rest on the principle that no one should be allowed to enrich himself unjustly at another's expense.

Where the 9 marks sit

#ComponentMarks
1(i) Fraud3
2(ii) Voidable contract and a stranger3
3(iii) Quasi contracts and unjust enrichment3
Total9
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