All India Bar Examination (AIBE) 4-IV Previous Year Question Papers with Answers

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59.

Which of the following is correct of a standard form contract ?

A: It is a valid contract
B: One party has no choice but to accept and sign the contract
C: Both (i) and (ii)
D: The consent is not a free consent

The answer is: C

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Explanation

The correct option is C: Both (i) and (ii).

A standard form contract is a valid contract as long as it meets the essential elements of a contract, such as offer, acceptance, consideration, capacity, and intention. However, one party has no choice but to accept and sign the contract as it is, without any opportunity to negotiate the terms and conditions. This is because the contract is prepared by one party who has more bargaining power and influence over the other party, who is usually a consumer or a weaker party. The other party can either take it or leave it, but cannot change or modify it. This is why standard form contracts are also called adhesion contracts or boilerplate contracts.