TODAY'S DAILY QUIZ-LEGAL REASONING

Capacity to contract refers to the legal competence of parties to enter into a binding agreement. Under Indian contract law, every person is competent to contract who is of the age of majority, of sound mind, and not disqualified from contracting by any law to which they are subject. A minor’s agreement is void ab initio, meaning it has no legal effect from the beginning. Consequently, a minor cannot be compelled to perform obligations arising from such agreements. However, contracts entered into for the supply of necessities suited to the minor’s condition in life may give rise to reimbursement from the minor’s property. A person is considered of sound mind if, at the time of making the contract, they are capable of understanding it and forming a rational judgment regarding its effect upon their interests. Certain persons may be disqualified from contracting by law, including alien enemies, convicts during imprisonment, and insolvents under specific circumstances.

QUESTIONS GIVEN BELOW:

1. A 17-year-old minor purchases a motorcycle on credit from a dealer after falsely representing himself as an adult. Later, he refuses to pay the price. The dealer sues for payment.

A. The dealer will succeed because of the minor’s misrepresentation
B. The contract is voidable at the dealer’s option
C. The contract is void and unenforceable against the minor
D. The dealer can recover the price as damages

2. A tailor supplies expensive clothing to a minor who already possesses sufficient clothing appropriate to his social status. The tailor later demands payment.

A. The minor must pay because clothing is always a necessity
B. Payment can be recovered from the minor personally
C. The contract is valid because consideration exists
D. Recovery is not allowed as the goods are not necessities in these circumstances

3. K, who usually suffers from mental illness, enters into a contract during a period when he fully understands the nature and consequences of the agreement. Later, he seeks to avoid the contract claiming unsoundness of mind.

A. The contract is void because K is generally of unsound mind
B. The contract is valid if K was of sound mind at the time of agreement
C. The contract is voidable at K’s option
D. The contract is unenforceable without medical evidence

4. A person imprisoned for a criminal offence attempts to enter into a commercial contract while serving the sentence.

A. The contract is valid because imprisonment does not affect capacity
B. The contract is void because prisoners are permanently incompetent
C. The contract may be restricted because certain persons are disqualified by law
D. The contract becomes valid after release automatically

5. A minor borrows money to buy food and medicine necessary for survival. The lender seeks recovery.

A. The lender cannot recover anything
B. The lender may recover the amount from the minor personally
C. The lender may recover from the minor’s property for necessities supplied
D. The contract becomes valid once the minor attains majority

1. Global discussions on artificial intelligence governance have highlighted the need to balance innovation with regulation. In forums such as the India AI Impact Summit 2026, policymakers emphasised that regulation should primarily aim to:

A. Completely replace human decision-making with AI systems
B. Encourage innovation while ensuring safeguards against misuse and harm
C. Prohibit the use of AI in economic sectors
D. Allow private companies unrestricted freedom in AI deploymen

2. Artificial intelligence systems rely heavily on large datasets for training. Which of the following legal concerns most directly arises from such reliance?
A. The inability of AI to process complex information
B. The absence of international technology companies
C. The elimination of human involvement in technological development
D. The risk of violation of privacy and misuse of personal data

3. Many experts argue that AI governance frameworks should include accountability mechanisms. In this context, accountability primarily means:

A. AI systems must operate without any human oversight
B. Governments must assume complete responsibility for all AI outcomes
C. Developers and deployers of AI systems should be answerable for the consequences of their technologies
D. Artificial intelligence systems must be owned by public institutions only

4. One objective highlighted in discussions on inclusive AI is the development of systems capable of supporting multiple languages and cultural contexts. The primary benefit of such an approach is that it:

A. Expands access to digital technologies for diverse populations
B. Prevents global companies from developing AI systems
C. Eliminates the need for digital literacy programmes
D. Restricts technological innovation to specific regions

5. Which of the following best explains why international cooperation is considered important in the governance of artificial intelligence?

A. AI technologies can only be developed through international organisations
B. The cross-border nature of technology and data requires coordinated global standards and norms
C. Governments aim to abolish private sector participation in technological research
D. Countries seek to replace national laws with a single global constitution