M.law >> meaning and nature of contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 which of the following is correct ?
a) imlplied contract is intentionally made by the parties though not through words.
b)quasi- contract is intentionally made by the parties
c)bilateral contract is one which is made by both the parties to the contract personally
d)none of the above

CA Vijeta Verma

CA Vijeta Verma (Expert)
Follow

07 October 2013 (C) Bilateral contract is one where both parties agrees to fulfill/act for the promise of other ,once one party performs /fulfills his promise

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 whynot (a) ?....
according to the defination of implied contract?

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

03 August 2024 Let's clarify the concepts and definitions related to implied contracts, quasi-contracts, and bilateral contracts to determine the correct statement and understand why option (a) is not correct.

### **1. **Implied Contract**

**Definition:**
An **implied contract** is not explicitly stated but is understood from the actions, conduct, or circumstances of the parties involved. It arises from the behavior of the parties and is inferred by law rather than being intentionally created through specific verbal or written communication.

- **Key Point**: An implied contract is not intentionally made by the parties through words but is inferred from their actions or conduct.

### **2. **Quasi-Contract**

**Definition:**
A **quasi-contract** is a legal construct created by a court to prevent unjust enrichment where no actual contract exists. It is not based on an agreement between parties but is imposed by law to ensure fairness and justice.

- **Key Point**: A quasi-contract is not intentionally made by the parties but is created by law to address situations where one party would otherwise be unjustly enriched at the expense of another.

### **3. **Bilateral Contract**

**Definition:**
A **bilateral contract** involves mutual promises between two parties where each party agrees to perform certain obligations. It is not limited to being made personally; it simply requires both parties to make mutual promises.

- **Key Point**: A bilateral contract involves promises made by both parties to each other, but this does not mean that the contract must be made personally.

### **Analysis of Statements**

**a) Implied contract is intentionally made by the parties though not through words.**
- **Why not (a)?**: This statement is incorrect because an implied contract is not intentionally made; it arises from the conduct of the parties and the circumstances surrounding their actions. The parties do not explicitly agree on the terms; instead, the contract is implied based on their behavior.

**b) Quasi-contract is intentionally made by the parties.**
- **Why not (b)?**: This statement is incorrect because a quasi-contract is not intentionally made by the parties. It is a legal construct imposed by a court to prevent unjust enrichment when no actual agreement exists between the parties.

**c) Bilateral contract is one which is made by both the parties to the contract personally.**
- **Why not (c)?**: This statement is incorrect because a bilateral contract is not defined by whether the parties made it personally. It is defined by the mutual promises exchanged between the parties. Personal interaction is not a requirement for a bilateral contract.

**d) None of the above.**
- **Why (d)?**: This is the correct answer. None of the provided statements accurately describes the nature of implied contracts, quasi-contracts, or bilateral contracts.

### **Summary**

- **Implied Contracts** arise from the actions or conduct of the parties and are not intentionally made through explicit terms.
- **Quasi-Contracts** are imposed by law to prevent unjust enrichment, not intentionally created by parties.
- **Bilateral Contracts** involve mutual promises but do not require personal interaction.

Therefore, the correct answer is **(d) none of the above**, as none of the statements correctly describes the nature of the contracts mentioned.

Manish

Manish (Expert)
Follow

03 August 2024 The correct answer is:
a) Implied contract is intentionally made by the parties though not through words.

Quasi-contract is not intentionally made by the parties; it is imposed by law to prevent unjust enrichment.
Bilateral contract involves mutual promises, not necessarily made personally by the parties; agents can also form them.

Online classes for CA CS CMA