Nature and Classification of Contracts Questions and Answers

Q: "A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law is someway recognises as a duty." This statement made in :

The definition is from the American Restatement of the Law of Contracts.Section 1 of the Restatement (issued by the American Law Institute in 1932, and kept in the Second Restatement) defines a contract as a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognises as a duty. The definition is built on enforceable promises rather than on agreement.Halsbury's Laws of England and Chitty on Contracts describe a contract in terms of an agreement giving rise to obligations, so the quoted wording is not theirs, and 'Either (A) or (B) or (C)' fails for the same reason.

Q: Which of the following are the examples of 'standard form of contracts' under the Contract Act, 1872 ?

The answer is All of the above.Standard form contracts are printed contracts drafted in advance by one party, usually a large enterprise, and offered on a take-it-or-leave-it basis. The other party can only accept or reject the terms as they stand. Common examples are insurance policies for life, fire and marine risks, railway tickets for passengers and goods, and bills of lading issued by carriers.All three listed documents are of this kind, so choosing any one alone is incomplete. Courts protect the weaker party through rules such as reasonable notice of terms and strict construction against the drafter.

Q: "No customer in a thousand ever read the conditions. If he had stopped to do so, he would have missed the train or the boat." This expression made in Thornton V. Lone Parking Ltd. (1971) by :

The remark was made by Lord Denning (Master of the Rolls, printed 'H.R.').In Thornton v. Shoe Lane Parking Ltd. (1971), on a ticket issued by an automatic machine at a car park, Lord Denning M.R. observed that no customer in a thousand ever read the conditions printed on such tickets, and held that onerous exemption terms must be brought fairly to the customer's notice before the contract is made.Mellish L.J. gave the classic ticket-case judgment in Parker v. South Eastern Railway (1877). Scrutton L.J. decided L'Estrange v. Graucob (1934) on signed documents, and Lord Wilberforce is not linked with this quotation.

"A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law is someway recognises as a duty." This statement made in :

A.Halsbury's Laws of England
B.American Restatement of the Law of Contracts
C.Chitty on contracts
D.Either (A) or (B) or (C)

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

The definition is from the American Restatement of the Law of Contracts.

Section 1 of the Restatement (issued by the American Law Institute in 1932, and kept in the Second Restatement) defines a contract as a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognises as a duty. The definition is built on enforceable promises rather than on agreement.

Halsbury's Laws of England and Chitty on Contracts describe a contract in terms of an agreement giving rise to obligations, so the quoted wording is not theirs, and 'Either (A) or (B) or (C)' fails for the same reason.

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Which of the following are the examples of 'standard form of contracts' under the Contract Act, 1872 ?

A.Insurance policies for life, fire and marine
B.Tickets of railways for passengers and carriage of goods
C.Bill of lading
D.All of the above

Exam Year(s)

MH SET - 2021, SET Exam - 2021,

Answer: D

The answer is All of the above.

Standard form contracts are printed contracts drafted in advance by one party, usually a large enterprise, and offered on a take-it-or-leave-it basis. The other party can only accept or reject the terms as they stand. Common examples are insurance policies for life, fire and marine risks, railway tickets for passengers and goods, and bills of lading issued by carriers.

All three listed documents are of this kind, so choosing any one alone is incomplete. Courts protect the weaker party through rules such as reasonable notice of terms and strict construction against the drafter.

Discuss in Forum

"No customer in a thousand ever read the conditions. If he had stopped to do so, he would have missed the train or the boat." This expression made in Thornton V. Lone Parking Ltd. (1971) by :

A.Lord Denning H.R.
B.Scrutton L.J.
C.Mellish L.J.
D.Lord Wilberforce

Exam Year(s)

MH SET - 2024, SET Exam - 2024,

Answer: A

The remark was made by Lord Denning (Master of the Rolls, printed 'H.R.').

In Thornton v. Shoe Lane Parking Ltd. (1971), on a ticket issued by an automatic machine at a car park, Lord Denning M.R. observed that no customer in a thousand ever read the conditions printed on such tickets, and held that onerous exemption terms must be brought fairly to the customer's notice before the contract is made.

Mellish L.J. gave the classic ticket-case judgment in Parker v. South Eastern Railway (1877). Scrutton L.J. decided L'Estrange v. Graucob (1934) on signed documents, and Lord Wilberforce is not linked with this quotation.

Discuss in Forum

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Nature and Classification of Contracts Questions and Answers

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