NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Nature and type of contracts (Old & New)

Father promised to pay his son a sum of ₹ one lakh if the son passed C.A. examination in the first attempt. The son passed the examination in the first attempt, but father failed to pay the amount as promised. Son files a suit for recovery of the amount. State along with reasons whether son can recover the amount under the Indian Contract Act, 1872. Whether promise by a father to pay ₹ 1 Lakh if the son passes CA Exams in first attempt is a valid contract?



Ans.
There is no intention to create legal relations as it is a domestic or social agreement. Father does not receive any consideration. The son cannot sue the father for recovering ₹ 1 lakh as there is no contract between the father and the son.

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Notes of The Indian Contract Act, 1872 - Nature and type of contracts (Old & New)



  1. Explain in brief the rules relating to ‘acceptance’ of an offer under the provisions of the Indian Contract Act, 1872
    see in detail

  2. What are the essential elements of a valid contract? State in brief.
    see in detail

  3. “All contracts are agreements, but all agreements are not contracts”. Comment.
    see in detail

  4. Father promised to pay his son a sum of ₹ one lakh if the son passed C.A. examination in the first attempt. The son passed the examination in the first attempt, but father failed to pay the amount as promised. Son files a suit for recovery of the amount. State along with reasons whether son can recover the amount under the Indian Contract Act, 1872. Whether promise by a father to pay ₹ 1 Lakh if the son passes CA Exams in first attempt is a valid contract?
    see in detail

  5. State the points of differences between illegal agreements and void agreements.
    see in detail


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