INDIAN CONTRACT ACT, 1872 PRELIMINARY [Sections 1-2] 420 The law of contract essentially determines the ‘The interpretation clause of the | Indian Contract 7. ‘ inwhich Act 1872 has been provided it circumstances in which- (@) Section 1 (8) Section? (@) Acontmerisa tor and cirme © Section3 (@) none of the above (b) A promise may aot be made ‘Ans. (b) (UP. cj2012] (© Apromise may be made The Indian Contract Act came into force on- @ Apromise shallbe egally binding.on the prong (tO 172 A aaetanagnenea a he stat int of an agreement is- (b) 15th October, 1872 7 ee 7 “nt (a) Offer () Invitation offer (© 1stSeptember, 1872 ts Aiwcheee @) A 2 (© Advertisement (dl). Acceptance (@ 19th Apsil, 1872 a ‘Ans.(¢) [ways 2018] ce AES) 9. articles in a showroom with prices "The Indian Contract Act was enacted in the prsunsetn: year: (a) Offerto sell articles at prices mentioned Oe (108 (b) Counter offer © 1045 iG ee (© Invitation to offer Ans. (4) (HLP.JS 2007-1] (@) Mere advertisement ‘Offer or Proposal is defined in Indian Contract ‘Ans. (c) [1JS.2013, OJS 2013, wHyS2018, Actin BJS 2012, Bihar APO 2013, (@) Section 2(a) (b) Section 2(b) M.P. CJ 2016, 2018 ()] © Section2@) (@ Section 2¢¢) is ssthathe has stockofbooks ‘Ans. (a) Cy 2019] ‘A proposal as defined under Section 2(a) of the ) neha, {b) sninviaiontoofle Indian Contract Act, 1872, is: (© aspecial offer (d)_ astanding offer (@) Communication from one person to another Ans. (0) [UPSC C28} (&) Suggestion by one person to another 11, When goods are displayed ina shop window with ss price tags attached to them, the offer comes from © Willingness to do something the: @)_ Willingness to do or abstain from doing an act (@) offesee (8) shop owner in order to obtain the assent of other thereto a ron ee (© general public (@) customer en GLP. JS 2007-11] Ans. (d) [Mp APO 208) \e juristic concept of contract consists of: 42 Which of the following is an offer? oF ceeaere ae (@)_ Abid aran auction sale 7) Beran soorpinnce (b) Banker’ caralogue of charges © consideration and undue influence (© Menucard ata restaurant (@) agreement and obligation (@ Allof the above Ans. (b) {UPSC Cs 2009} Ans. (a) poys20ttl Pariksha Manthanaca 5 16. 1”. Indian Contract Adt, 1872 sTenderis: ( anoffer __-(b) aninvitation to offer @ acounterofier (8) apromise [M.P. CJ 2006, 2010, 2013, BJS 2016, CJs 2008] ‘An advertisement of auction is ‘Ans. (D) (b) mere statement @ proposal {© invitation to offer (4) standing offer ‘Ans. (©) [RJ 201) ‘Anoffer can be made to- (@ Apatticular person () Particular class of person © World atlarge (@ Allof the above ‘Ans. (d) [ways 2017) ‘An offer made to the public at large is called. (@ Valid offer (b) Specificoffer (©. General offer @ None of the above Ans. (€) [0JS 2013} ‘A general offer open for world at large can be accepted @_ Bysendinga communication of acceptance (&) By complying with the conditions of offer ©. By tendering himself to comply the conditions of offer (@ None of the above Ans. (b) (Js 2013) In case of General Offer, a contract is entered into- (@_ Theworld at large (&) The person who gives a reciprocal general offer © The friend of the offeror {@) The person who performs the conditions of the general offer Ans. (d) [0JS 2011] Acalls up B and asks “Will you sell me your house? SMS me the lowest cash price.” B's reply by SMS was “Lowest cash price for my house is rupees 1 crore.” A, immediately sent another SMS to B stating “I agree to buy your house for rupees 1 crore, as asked by you.” B did not respond and subsequently sold the house to C. B’s SMS to A was” @ Anoffer () Anacceptance 9 Aninvitaion to receive offer (@ None of the above. Ans. (¢) [Rys 2011 What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as? @ Anofter (©) An obligation to sell book © Aninvitation to offer @ A promise to make available the books at the listed place Ans. (e) Atenderinanewspaperis : [UPSC Cs 2005] @) invitation to offer (b)_ promise © offer (@) invitation foracceptance Ans. (a) [HHJS 2013, JJS 2014] {L? is sent to search for G’s nephew in the meantime ‘G’ by advertisement offers a reward of Rs. 501 to anyone who finds has nephew. L? traces the boy and subsequently knowing about the reward claims it. To the reward Lis : (@) Entitled (0) Notentided as the offeris general (© Notentitled as the consideration is inadequate (@ Is not entitled as the offer was not communicated to him Ans. (d) IMP, CJ 1996, 2013] X applied for the post of Principal of a local college and the governing body passed a resolution appointing him. After the meeting, one of the members of the governing body privately informed him of the resolution. Subsequently, the resolution was rescinded. X claims damages. In this context, which one of the following propositions is correct? rs 421 Pariksha ManthanIndian Contract Ac, 1872 (@_°X’ cannot claim damages as there was 0 “communication ©) °X can claim damages as there was private communication of resolution © *X’ is not qualified for the post, so he cannot claim damages @ the governing body cannot rescind che resolution once passed, so *X’ can claim damages Ans. (a) [UPSC Cs 2009] Lending money to a borrower at high rate of interest, when money market is tight, renders the agreement of loan (@) valid (®) void © voidable © egal Ans. (a) [LP Js 2015] Who said that “An offer need not be made toan ascertained person, but no contract can arise until it has been accepted by an ascertained person”? (Lord Atkin (b) Lord Goddard © Chashteand Fifoot (d) Anson Ans. (d) (UP. cj 2015] In cases of general offer, for a valid contract @)_ the acceptor need not have the knowledge of the offer (b) the acceptor must have the knowledge of the offer before acceptance by performance © theacceptor may acquire the knowledge of the offer after the performance of the condition for acceptance (@ knowledge does not matter so long as the condition is performed with or without knowledge Ans. (b) Which one of the following statements about general offer is correct? (@) The general offer should be made to the specified persons (®) The general offer does not require any consideration (0 The general offer prescribes some condition to be fulfilled 3h. (@) The general offer does not work wiy support of public at lange Ans. (6) TUPSC 68 2095) Consider the following statements : thous 1 Anauetioncer'sannouncement to sellan aig through auction ona ceraiin day is notan off but only an invitation to offer. 2 ‘The highest id in an auctions merely an off which an auctioneer may or may notaccepe Which ofthe statements given aboveis/are correct? @ only (&) 2only © Both 1 and2 @ Neither 1 nor2 Ans. (6) [UPSC CS 2009) What is the terminology used to describe a situation when two parties make identical offers to each other in ignorance of each others offer? (@) Offer (6) Cross offer © Counter offer (@ Conditional offer Ans. (b) [M.P. HS 2008) Which of the following statements is/ are correct? 1. Counter offer puts an end to the original offer, the previous offer can be 2. In counter offer, revive Acceptance must be absolute and unqualified 4. Acceptance with new terms is valid, Select the correct answer using the code given below: Codes: @ only (b) Land 3 © 2and3 @ 3and4 Ans. (b) [UPSC CS 2010} An offer was sent by post, the acceptor wrote ‘accepted on the letter, put it in his drawer and forgot about it. The transactionis a: @ Valid contract () Avoidable contract © Avoid contract (@) No agreement as the acceptance was never communicated to the proposer Ans. (d) [TJs 2013, HJS 2044] ene rare er nae, Pariksha Manthan=~ Indian Contract Act, 1872 ich one of the following constitutes an offer? . je. Whichont ‘constitutes an offer? 38, Which of the statements as to consideration is 3. 4 3 3. {@)_ Display of goods with price tagsin a self-service shop 0) ‘Advertisement announcing a reward of Rs. 5000 toany person who would find the missing dog of the advertiser (@ When a man advertises that he has a stock of books to sell ata flat rate of Rs. 100 per book. @ ‘An auctioneer's announcement that specified goods will be sold by auction on a certain day ‘Ans. (b) [UPSC Cs 2010) Which one of the following is explicitly stated in Section 2(b) of the Indian Contract Act 1872? (@ Aproposal, when accepted becomes a promise (©) Aproposal, when accepted become a contract © A proposal, when accepted becomes an agreement (@ Aproposal, when accepted becomes assurance Ans. (a) [wB]s 2015] Aproposal when accepted becomes : (@ Promise (b) Agreement © Contract (@ Acceptance Ans. (a) [M.P. CJ 2001, 2015, U.P. CJ 2003, AJS 2012, OJS 2011} Which of the following Sections of the Indian Contract Act, 1872 defines ‘Consideration’? : @) Section 2(a). (b) Section 2(b) © Section 2(¢) (@ Section 2@) Ans. (d) [WBJS 2017, JJS 2014] Under the Indian Contract Act consideration- @ may proceed from the promise (&) may proceed from any other person {9 both (a) and () (@ neither (a) nor &) Ans. (¢) [1J82015] ‘The following rules as to consideration is true: (@) It must be adequate _ (>) Must move at the desire of the promisor © lemust be present or future (d)_Itmust move at the desire of the promise Ans. (b) [HADA 2016] 39. 40. a. 2. 4B. not correct : @ _Temay be past also (b) Itneed not be adequate ©. Stranger toit cannot sue “(@) Temustbe real Ans. (¢) [MP CJ1996] Consideration means: ® » © @ ‘Ans. () IMP. APO 2008] Which of the following is correct? ‘must have some value in the eyes of law must be real must not be illusory allare correct (@)_ Pastconsideration is no consideration (b) Consideration can be past, present of future © Consideration can only be present (@) Consideration can only be future ‘Ans. (b) [M.P. CJ 2006, 2010] Which one of the following pairs is correctly matched? (@) In India, Consideration must follow from Promisee only (b) In India, Consideration must follow from only Promisor of only Promise (© In India Consideration must follow from. Promisor or any other person (@ InIndia Consideration must follow Promisee ‘or any other person Ans. (4) LP. Js 2015] Which of the following statements regarding consideration is not correct? (@)_Temust be given at the desire of the promisor (b) Temay be past also © _Tenced not be adequate to the promise (@ Stranger to it cannot sue Ans. (4) {UP. cj 2012} ‘Which one of the following is not essential fora consideration? (@ Temust be given at the desire of the promisor (©) Valuable FSS Pariksha Manthan 42345. 47. a Indian Contract Act, 1872 © Lawful (@) Adequate ~ Ans. (d) Consider the following statements- 1. Performance of a legal duty is no consideration fora promise, 2. Forbearance to suc has always been regarded as valuable consideration 3. Itis not necessary that consideration should be adequate to the promise Which of the above statement/s is/are correct? ys2014] @ ‘only () 2and3 © 1,2and3 (@) tand2 Ans. (c) (U.P. CJ 2018] ‘An agreement entered into with fee consent and Jawful but with inadequate consideration is @ unlawful (&) lawful © void (@) voidable Ans. (b) IMP. CJ 2019 1] Consider the following statements: 1. According to Justice Patterson, consideration may be some benefit to the plaintiff or some detriment to the defendant. 2 According to Section 2(d) of the Indian Contract Act, the definition of consideration requires that the act or abstinence should be done by promisee only. Which of the statements given above is/are correct? @ only (b) 2only © Both tand2 (@) Neither 1 nor2 Ans. (a) [UPSC Cs 2008] ‘A? promises to provide maintenance allowance to her maternal uncle in consideration of certain properties gifted to her by her mother. ‘A’ refuses to pay maintenance amount and maternal uncle institutes suit against ‘A’ to enforce the promise. Which one of the following is the 49. @ will not succeed as he being a stranger 4g consideration can not sue upon the contract will succeed because according to the Indian Contract Act consideration may be given by the promisee of any other person ) will succeed because he is near telative and iq such eases consideration is not necessary © (@ will succeed because consideration given by a near relation may be treated as consideration given by the promisee ‘Ans. (b) [UPSC Cs 2006] A, without the request of anybody, extinguishes the fire of B’s godown. A suffers injury thereby, If B promises to compensate A for the whole amount he has spent for his treatment, then the contractis: G@)_Unenforceable because itis immoral (©). Void for want of consideration © Voidable (@ Enforceable Ans. (d) IMP. HYS 2013} set of promises forming the consideration for each others (b) anacceptance (@) anagreement © anoffer (€)_ acontract Ans. (a) [BJS 2016, JJS 2014, DJs 2014, HIPJS 2013] An agreement not enforceable by law is said to be: (b) voidable contract @ void © illegal contract (@)quasi-contract Ans. (a) [JCJ 2019, M.P. APO 2008, UP. HJS 2016] Choose the correct statement: (@) am agreement not enforceable by law is said to be void (b) anagreement enforceable at the option of one party and not at the option of the other is said to be void © anagreement which is legal may be void (@)_anagreement enforceable at the option of one party is void Ans. (a) [M.P. APO 2008] Pariksha Manthan correct statement? Maternal uncle : 424 etYr 58. 5. Indian Contract Ac, 1872 sppetndian Contact Act, IB72defines ‘Contract 59, jn Section? ) ©) 20) @ 2 @ 20) Ans. (d) (JS 2014, M.P. APO 2009) sphich one of the following ingredients is not necessary ‘for contract (9) Proposal () Acceptance @ Consideration (@) Property Ans. (@) IMP. HJS 2015, M.P.CJ 2007] 60, Which of the following is correct? A contract @ maybeorl () must be in writing {@ must be made in the presence of witnesses (@) must be written on a stamp paper. ‘Ans. (@) In the formation of a Contract which is not among the three essentials : As) Damages (b) Consideration a. (© Offer (@) Acceptance ‘Ans. (a), [M.P. Cj 2010} According to Section 2(h) of the Indian Contract Act, a “Contract” is (9 anagreement berween two or more pasties () apromise to do something, A contract which is valid initially, however, ceases to be enforceable subsequently, the contract. @ remains valid. (®) becomes voidable when it ceases to be enforceable. © _ becomes void when it ceases to be enforceable. ~ (@)_ becomes void since inception, Ans. (c) (UP. Hys 2012] Which one of the following statements correct? Avoidable contractis an agreement which is: (@) Enforceable with the permission of the court. (b) Enforceable by the parties thereto. © Enforceable by aw atthe option of one or more of the parties thereto, but not at the option of the other or others. (@) Notenforceable by any of the parties thereto. Ans. (c) [DJs 2010] Pri y of Contract is that the + (8) partes to the contract can suc each other (b)_ beneficiary to the contract can sue the pasties (Q parties to the contract can ste the thied party (@ both @) and Ans. (a) [PJS 2012, WBYS 2014) 62. Assertion (A) # A stranger to a contract cannot © ahacceptance of an order pee (@) anagreement enforceable by law Reason (R): He is notparty to contractand can not ‘Ans. (d) [WBYJS 2018, CJS 2016, HJS 2010] take benefit An agreement not enforceable by law is said to G@ (A) and @®) both ate true and (R) is correct bevoid under ‘explanation of (A) @ Section 2(@) (b) Section 2(¢) (&) (A) and ®) both are true, but (R) is not the © Section 2(6) (@ Section 2(@) ‘correct explanation of (A) Ans. (a) [AJS 2015] © (jis true, but ®) is false Anagreement enforceable by law at the instance (@ (A)is false, but ) is true of one or more of the parties and not of other oF ‘Ans. (a) [wP.cy 2013) ee Section 2() ofthe Indian Contract. agcuine of privity of contract means that : @ Avalidcontmct (bp) Anillegal conteact (@ acontractisa private affair between the parties. © Avoidcontract _ (d)_A voidable contract ) Se oO See ae a aa (© thecontacteanbe enforced onlybyacland DJS 2014, PJS 2015, AP. & N. JS 2017] (pee Pariksha Manthan 4256 Indian Contract Act, 1872 (@) only patties to contract can sue and be sued 69. ‘upon the contract. Ans. (d) [DJS 2014, UP. CJ 2006) Which of the following is an exception to the tule or doctrine of privity of contract that a stranger to a contract cannot sue? () Mortgage (@) Both @) and (©) [MP HS 2008} (@) Family setdement © Agency Ans. (a) Exceptions to the doctrine of privity of contract? do not include: @ beneficiaries undera charge () equitable mortgage © estoppel (@ marriage setlement Ans. (b) ‘The acceptance given by A on B's invitation for lunch over phone is not a contract because of which one of the following? a. 2. (@)_ The acceptance was given orally (b) ‘The parties did not talk face-to-face 0” Thereis no intention to create a legal obligation (@) Invitation cannot be proved in the court of law Ans. (6) [UPSC Cs 2009] Which one of the following is essential for a valid contract under the Indian Contract Act, 1872 (@ Meeting of minds of the parties (b)_ Meeting of the patties for searching legality of rights © Meeting of the parties to discuss consideration (@) Meeting of parties to discuss proposal and acceptance Ans. (a) Which is correct? @ Proposal + acceptance = promise (b)_ Promise + consideration = agreement (UP. CJ 2016] © agreement + enforceabilit (@) allof the above Ans. (d) mB. [UP HYs2023] 2B. 74, Which one of the following essentials of contract does not find place in the Indian Contract Act, 1872? @ Competency of Parties () Realconsidersion aC) @ Lawfil object 0) DLP. Js 2011) Difference between a contract and social Intention of contract agreement is that of: (@ consideration () intention to create legal relationship © consensus ad idem (@ certainty of performance Ans. (b) [wR c) 2013) The test of intention to contract is- (b)_ Subjective © (@) None of the above Ans. (a) [OJs 2016] ‘The correct sequence in formation of contract @ Objective Depends on case @) offer, consideration, acceptance, agreement (©) agreement, consideration, offer, acceptance © offer,acceptance, agreement, consideration (@) offer, acceptance, consideration, agreement Ans. (c) [Bihar APO 2013] Aunilateral contract in which only one party is bound, is also known as a: @ Faciteontrct © Ans. (¢) (©) Implied contract Executed contract (d) Executory contract [M.P. HJs 2010] ‘The words not defined in the Specific Relief Act shall be understood according to: @ The Indian Contract Act (©) The Indian Succession Act © Transfer of Property Act (@ None of the above Ans. (a) [HYs 2012] Astandard form of contract is one in which- @ the terms are fixed by the government of the State to which the contracting parry belongs 424 Pariksha ManthanYr 16. Indian Contract Act, 1872 (gy The tems ae predetermined by the custom 77 of the trade to which the contracting parties belong fg. Theternson which mercandletasactons of common occurrence ate to be castied out (@) The terms are fixed by one of the partes in advance and open to acceptance by any one ‘Ans. (8) [OJs 2016) standard form of contract is also known (@ contract of adhesion () wnilateral contract © specificconteact (@ both (a) and () ‘Ans. (4) {PJs 2012] Contracts of Adhesion are- @ Unfsir contracts (©) Unlawful contracts © Contracts of adults (@) Standard form of contracts Ans. (d) [o]s 2011] Which contractis specifically enforceable? @ Contract by 'B to deliver a lecture of law at Jabalpur University. (b) Contract of Marriage © Contract by B' with ‘A’ to supply goods as of when'A’ requires (@)_ None of these Ans. (@) IMP. CJ 2018 (] COMMUNICATION, ACCEPTANCE & REVOCATION OF PROPOSALS [Sections 3-9] Which one of the following is not provided in 4. Section 4 of the Contract Act, 1872? @ Communication of a proposal (b) Communication of acceptance © Communication of revocation (@ Revocation of proposals and acceptance Ans. (d) [U.P. CJ 2006) Which one of the following is not provided in Sections 4 and 5 of the Contract Act? (@) Communication of offer 5 (6) Communication of acceptance © Revocation of proposal and acceptance (@ Revocation of contract Ans. (d) (Cy 2000] A proposes, by a letter sent by post, to sell his house to B. When is the last point oftimewhen & ‘Acan revoke the proposal? (@) Before the date/time when A posts theletter. (©) Before teh date/time when B seceives the letter © Before the date/time when B posts his lerter accepting the proposal (@ Before the date/time when A receives the leer ofacceptance, sent by B [ys 2018] In which of the following cases a proposal can be revoked when it is made by post? (@) Before the promisee posts his letter of acoeprance (b) Tillthe leter of acceptance reaches the promisor (©. Tillthe promisee receives the acknowledgement that the letter of acceptance has been delivered to the promisor (@ Proposal once made cannot be revoked Ans. (a) IMP. C2011] ‘A revokes his proposal made to B by telegram. Under Section 4 of the Indian Contract Act, 1872, the revocation is complete as against A when the telegramis: (@). Received by B (b) Despatched by A. (© Both (a) and) —_(@)_ None of the above Ans. (b) [PJs 2015] In case of acceptance by post, at what point the acceptance is complete as against the proposer? {@) When the eter ofacceptance is putin the course of transmission so as to be out of power of theacceptor. (©) When the leer of acceptance has been written. (© When theletter of acceptance has been received. (@ When the letter of acceptance has been read by the proposer. Ans. (a) [DJS 2014, RJS 2016] 427 ‘Pariksha Manthan al10. Indian Contract Act, 1872 Acceptance sent through post : (@_cannotbe revoked atall (b) can be revoked at any time (© can be revoked only if it does not reach the offerer (@) canbe revoked beforeit comes to the knowledge of the offerer Ans. (@) [Bihar APO 2013, HS 2010] ‘A? proposes by letter to sell a house to ‘B? at a certain price, The communication of proposal is complete when: (@) ‘A posts the letter (©) ‘Whas completed the writing of lercer © {X gets information about the posting of the letter @) Brreceives the letter Ans. (@) [U-P. CJ 2012, M.P. CJ 2009] Communication of acceptance is complete as against the acceptor only: (@ when itis put in the cousse of transmission (b) when it comes to the knowledge of the proposer © when itis communicated to the acceptor that, the acceptance has reached the proposer (@) all of the above Ans. (b) [KCJ 2012, RJ 2014, TIS 2013, UPSC CS 2005, BJS 2016, MP. CJ 2019 (1)] X duly posts aletter of acceptance to Y. But the letter is lost in transit by the negligence of the postoffice. (@ There is no contract concluded, because the acceptance has not reached the proposer. (b) There is no contract concluded, because the proposer had not received the letter. _ © Thecontractis concluded, because the acceptance is complete, from the date of dispatch, notwithstanding any delay or miscastiage in its arrival from causes not within the acceptor’s control (@ None of the above. ‘Ans. (c) [DJs 2010, 2019] u 2 4, When the acceptance is made by telephone then the contract is deemed tobe made at such place: (@)_ whereacceptanceis heard or received (b) where the acceptance is given (© where the acceptor resides (@) None of the above Ans. (a) Consider the following statements : ‘The communication of an acceptance is IMP. APO 2009} complete 4. asagainst the acceptor when it comes to the Imowledge of the proposer. 2, as against the proposer, when it is put ina course of transmission to him, s0 as to be out of the power of the acceptor. ‘Which of the statements given above is/are correct? @ lonly (b) 2only (© Both 1 and2 (@) Neither 1 nor Ans. (c) [UPSC Cs 2008] Accontract by post is concluded at the place (@) from where the offer had been made (b). from where the acceptance had been posted (© where the acceptance had been received (@ where the goods are to be delivered Ans. (b) [WBys 2014] ‘The communication of an offer or proposal is complete: @)_ when it comes to the knowledge of the person “to whom it is made (©) when the letter containing the proposal is put in the course of transmission (© when the communication received the person to whom the proposal is made (when the proposal is communicated reads the letter to the person to whom it is made Ans. (a) DJS 2019, M.P. APO 2008] In case of conflict of jurisdiction of the Courts, the incident of a contract shall be governed by the law of the place where the : @) Contractis made (b) Contractis performed ee 428 sha Manthane Indian Contract Act, 1872 fg. Acceptorsesies (@ Proposer resides IMP. HJs 2010, Djs 2006, UP. HJS 2016) Ans. (a) proposal cannot be revoked : 16 (a) by flute of the acceptor to fulfil a condition precedentto acceptance (b)_bylapse ofthe time prescribed in the proposal foritsacceptance @ by insanity of the proposer, if the fact of insanity comes to the knowledge of the acceptor before acceptance (@ after the communication of its acceptance is complete Ans. (d) [CJs 2016] 17, Revocation of offer by letter or telegram can be complete: (9 whenicis dispatched _() when itis received by the offerce (© whenitreaches the offerce (@ both (a) and (©) ‘Ans. (b) [PJs 2011] 18 Revocation of acceptance under the Contract Actis provided under: (@) Section 4 (b) Section © Section 6 (@ Section? Ans. (b) [HPS 2019] 19, Which of the following is correct under the Indian Contract Act, 1872? Ae Anacceptance may be revoked atany ime before “~~ the communication of the acceptance is complete as against the acceptor, but not afterwards (b) Allagreements are contracts but all contracts axe not agreements (© A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of sound mind (@ The communication of a revocation is complete, as against the person to whom it is made, when it is put into a course of transmission to the person to whomitis made, 80 as to be out of the power of the person [HP Js 2012] 20, A proposes, by letersentby post, osell his house ig B. The proposal of A is accepted by B by letter sent by post. When can A revoke his Proposal? (@) A may revoke proposal after B sent letter of acceptance by post (0) A can revoke proposal at any time before B sent letter of acceptance © Both @) and () are correct (@ None of the above Ans. (b) 21 Aproposalis revoked : [APs 2011] @ Only by the death or insanity of the proposer itself (©) By the death or insanity ifthe fact of the death or insanity comes to the knowledge of the acceptor (© By the death or insanity of the proposer if the fact of his death o insanity comes to the knowledge of the acceptor before acceptance (@ None of the aboveis correct Ans. (c) Which statement is not truc? [UP. CJ 2006), (@ A proposal is revoked by the communication of notice of revocation by the proposer to the other party A proposal is revoked by the lapse of time prescribed in such proposal forits acceptance (© Aproposalis revoked by the lapse of reasonable time, ifno time is prescribed A proposal is revoked by not meeting at the time prescribed Ans. (d) Cj 2019) 23, Which one of the following statements is not correct? @ fa) Acceptance must bein writing (&) Acceptance mustbe communicated (© Acceptance must be in prescribed manner (@ Onalacceptanceis valid acceptance Ans. (a) [PJS 2019, Bihar APO 2013] To convert a proposal into a promise the acceptance must be: (@) Qualified (©) Unqualified Pariksha Manthan 429| Indian Contract Ac, 1872 © General (@) Absolute and unqualified Ans. (d) DJS 2019, CJs 2019, H.P.JS 2016, BJS 2016, OJS 2017] 25. Which of the following is a valid acceptance of proposal? @) Whenan acceptance is made in ignorance of the proposal (b) When an acceptance is made in usual and reasonable manner but not in a manner prescribed by the proposer AX When an acceptance is made in a manner prescribed by the proposer (© None of the above Ans. (c) [UP Cj 2003] 26. Where no application is made and no time ig specified for performance of promise, there the agreement be performed within: (@ Threeyears (b) Two years © Oneyear {8 Reasonable time Ans. (d) [CJS 2004) Which one of the following statements is not correct? (@ Onlacceptanceis valid acceptance (@) Acceptance must be in writing © Acceptance must be communicated (@ Acceptance must be in the prescribed manner Ans. (b) [M.P. APO 2008] CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS [Sections 10-30] All agreements are contract if: (@) They are made by the free consent of parties competent to contract (©) For a lawful consideration and with a lawful object © _Notexpressly declared to be void @ Allof the above ‘Ans. (d) [Js 2012] Section 10 of Indian Contract Act requires __ conditions foran agreement to become a contract. @ 3 by 5 © 6 @7 Ans. (b) [oJs 2016] Which one of the following is correct? (@_Allagreements are contracts once they have been made between the parties fora consideration (b)_Allagreements are contracts once they have been made between the parties with their free consent © _Allagreements are contracts once they have been made between the competent parties (@) Allagreements are contracts if they are made by the free consent of parties competent to contract for lawful consideration and lawful object and not expressly declared by law to be void ‘Ans. (d) [BJs 2016) 4 6 Under Indian Contract Act, when does an agreement becomes a contract? @)_Itisenforceable by law (b) Itis between parties competent to contract © _Itis by the free consent of parties @) Allof the above Ans. (d) IMP. CJ 2013-1, 2018} Which one of the following is an essential component of a valid contract? (@ Social and economic pressures, the parties are Pi Ps exposed to (©) Dominance of one party over the other © Legalinfluence of the parties (@) Competence and the contractual capacities of the parties Ans. (d) [UPSC Cs 2008] Asa general principle of Law of Contract, which fone of the following is not an essential for 2 valid contract? (@) Weiting (©) Competency to contract © Lawful consideration and lawful object @ Freeconsent Ans. (a) [UPSC Cs 2010] _—— Pariksha Manthane Indian Cores 1872 * sstowing is/are essential(s) of valid contract ( t indian Contract Act, 1872; eontract Gi Panes to contract should have legal mind, (Gi) Panties to contract should be intelligent. {je Invitation to offer should be accepted, Find correct answer: oy oly and () ae correct ~p Only @)is correct (@ Allofabove are correct (&) Only Gi) is correct (© None of these ‘Ans. (b) [PJs 2017] ‘According to Section 10 of the Contract Act which ofthe following is not essential to convert anagreement into a contract? (@ Freeconsent (6) Competence to contract (Lawful consideration with lawful object (@) Certainty of terms of the agreement Ans. (d) IMP. APO 2009] 9, Every person is competent to contract- (@) whois of the age of majority according to the law to which he is subject. () who is of sound mind, (© whoisnot disqualified from contracting by law to which he is subject, Ad) allthe above, Ans. (@) [KTS 2016] 10. Whois competent to contract? @) Person of unsound mind (©) Person who has not attained majority © Person who has been disqualified from contract- ing by the Court Ad) Person who has been debarred from contesting any elections Ans. (@) IL Competency to contract relates to: (© Age of the parties (®) Soundness of mind of the parties Both age & soundness of mind (@) Intelligence of the parties Ans. (e) cy2019] [Hys 2013] {2 4. A minor enters into agreement representing ritmselé to be major. Consider the following statements: 1. Minor commits fraud if the other party does not have personal knowledge of his age 2 Such agreementis enforceable 3. The doctrine of estoppel does not apply in minor's case 4. Other party is entitled to get back the benefit passed to minor, ifinnocent about his age Which of the statements given above are correct? @ 13and4 (®) 2and3 © 12and4 (@ 2and4 Ans. (a) [UPSC CS 2005} In the Contract Act, 1872, the provision about minor's agreement is provided under the following : (@) Section? (b) Section 10 Section 11 (@) Section 12 ‘ns. (c) [HLP.JS 2019] Assertion (A): ‘N’ supplies necessary necessities to “BY, a minor. ‘A’ can recover the payment from the estate of ‘B Reason (R): An agreement with a minors void ab initio Codes: Both (A) and (R) are true and (Ris the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) © (A)is ue but ®) is false (@) (A)is false bur (R) is true Ans. (b) [HLP.Js 2011] ‘Assertion (A) : Minor’s contracts void. 6 a) ) Reason (R): Mortgage executed favour ofa minor is enforceable by him. Code: (@ Both (A) and (R) are true and (R) is the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) © Ais true but Ris false (@ (Adis false bur ) is true Ans. (0) &) [UP.C} 2003} Se Pariksha Manthan 43116. 7. 18. 19. “a Indian Contract Act, 1872 21. An agreement with minor is void, hence: (@ Minor is never allowed to enforce such agreement (©). Minors allowed to enforce such agreement, if it was made for his benefit © Minor is always allowed to enforce such agreement (@)_ Minoris allowed to enforce such contract when other party makes no objection (© None of these Ans. (b) [ys 2017] A conteact with or by a minor is a: (@ Valid contract (©) Void contract © Voidable contract @ Voidable atthe option of either party Ans. (b) [M-P. CJ 2006, 2010, 2017, ‘M.P. APO 2008 HJS 2012, UP. CJ 2015, TJS 2013] On attaining the age of Majority, the minor's agreement @ Canbe ratified (b) Becomes automatically valid © Cannot be ratified (@ Becomes void Ans. (c) [PJs 2019] The age of majority for the purpose of the Contract Actis @ 18 years (®) 21 years © 16 years for gicls and 18 years for boys (@) 18years forgirls and 21 yeass for boys Ans. (a) [BJS 2013, OJs 2011, AJS 2015] The principle “Restitution stops where repayment begins” can be applied against (@ Analien enemy only (®) Any incapable person © Lunatics and idiots only (@) Minors only Ans. (d) DJS 2016] According to Section 11 of the Con poet pam ea (@ minor > (b) person of unsound mind @ person disqualified from contacting (@ Allof the above Y any lay, Ans. (2) BME.APO apg Apatient in a lunatic asylum who is atin z of sound min¢ tervals (@ Maynot contract (b) May contract during intervals © Maycontracton Medical certificate (@_ May contract after complete sound ming Ans. (b) (CYS 2005, WP. 209 Consider the following statements ; A person is said to be of sound mind fort purpose of making a contract if ; atthe time o making ithe i : 1. of the age of majority capable of understanding the contrict though tunable to form a rational judgment as tots effect upon his interest. 3. capable of understanding it and of forming a rational judgement as to its effect upon his Which of the statements given above is/are correct? (@ tonly () 1,2and3 © 2and3,only (A) 3only Ans. (d) [UPSC CS 2005] Consensus ad idem under a contract means: (@ Common intention (b) Meeting of minds (Q Theme of contract (d) None of the above Ans. (b) [Pys 2015] The term “consensus ad idem” means: @ noagreement can have more than one meatig (b) toagree the same way (© toagree on the same thing with same s (@) toagree for different objects in the same se" uP. cj 2006, 2016,}52014) nse ee eee Pariksha Manthan 432 __ etyr Indian Contract Act, 1872 qo ormore persons are said to consent when Bb @ wbevaeee (4) hes ages upon the same thing (they ae wpon the same ting in the ame sense (@ hey agree upon the same thing inthe same sense at the given location ino cy 2019, zp, Fora binding contract both the parties to the ‘contract mu (@)_Agzee within each other @) Stipulate their individual offer and consideration (@ Agree upon the same thing in the same sense (@ Putclear offer and counter offers ‘Ans. (c) [BHYS 2015] 28 Consent will be said to be free, when it is not caused by coercion, undue influence, fraud, misrepresentation and mistake. The term ‘free consent’ has been defined in which Section of the Contract Act? (Section 14 (©) Section 15 @ Section 16 (@ Section 17 ‘Ans. (a) [BJS 2016, CJS 2014] 2B. Aconsentis said to be free whenit is not caused by: @ Coercion (b) Undue influence © Fraud @ Allof these Ans. (d) [H.PJS2007-1] 30. The consent obtained by threatening to commit ‘suicide amounts to consent by : @ Coercion (b) Undue influence © Fraud (@) None of these Ans. (a) [BJS 2009] 31 “Coercion” under English Lawis also known as @ Duress ©) Voidable agreement © Void Agreement (@) Both @) and (&) Ans. (a) [PJs 2012] 32, 38. 37. Under the Indian Contract Act, 1872, coercion ‘means () Committing of any act forbidden by TPC (b) Threatening to commit any act forbidden by IPC © Unlawful detention or threatening to detain any property to the prejudice of any person @ Allof the above Ans. () (Pys 2019] A threat to commit suicide in performance of the contract amounts to: (@ undueinfluence —(b) fraud © misappropriation () coercion Ans.(@) [Bihar APO 2013, AP. & N. JS 2016] ‘Unlawful detaining or threatening to detain any property with the intention of causing any person to enter into an agreement would amount to which one of the, following? (@ Unlawful detention (b) Duress (@ Coercion TaJs 2015) © Undue influence Ans. (4) When consent to an agreement is caused by coercion, the agreementis, (©) voidable contract © void contract (@) invalid contract Ans. (b) (Cy 2019} ‘Under Indian Contract Act, 1872 “an agreement not enforceable by law is said to be void”, which one of the following agreements, is not void? @ ® (© Agreementunder coercion (@)_ Agreement in restraint of marriage Ans. (6) [UP. cj 2016) ‘What is committing or threatening to commit any act forbidden by the IPC, or the unlawful detaining or threatening to detain any property to the prejudice of any person with the intention of causing any person to enter into an agreement called? (@)_ valid contract, Agreement in restraint of legal proceedings ‘Agreement in restraint of trade (@ Undueinfluence (b) Fraud © Coercion (@) Intimidation Ans. (c) [UPSC Cs 2008] eee Pariksha ManthanIndian Contract Ads 38. Threatto strike is 2. 40. 4 (&) mistake (@ aocoercion Ans. (4) pa.p.J82015] ‘Undue influence has been defined under Section of the Indian Contract Act, 1872: @ 16 © 3B © 6 (@ None of the above Ans. (a) [PJs 2015] In which of the following statement “undue influence” does not exist? (@) When dominating party hol authority (&) When a person’s mental capacity i affe because of bodily distress (© When a party threatens another to commit @_undue-influence © coercion \ds real or apparent cred suicide (@ When the pasty holds fiduciary relationship Ans. (©) [H.P.JS 2016] ‘A Guru (Spiritual Advisor) induced the Chela (his devotee) to gift him the whole of his property to secure benefit to his soul in the next world. The gift shall be: (&) voidable (@ immoral [HLP.JS 2011] @ void © valid Ans. (b) 42. Ahaving advanced money to his son, B, during 43. his minority, upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater influence, a bond from B for a greater amount than the sum due in respect of the advance. A employs @ coercion (0) feaud © undueinfluence (4) mistepresentation Ans. (c) [UPC] 2015] ‘A master asks his servant to sell his bike to him ata price less than the matket price. This contract ‘can be avoided by the servant on the ground of : (b) fraud (@ undue influence (@) coercion © mistake a 47. 1872 g? applies to a banker for aloan at atime wh, there is stringency in the money market, ea banker declines to make the loan except at fe unusually high rate of interest. ‘A’ accepts a Joan on these terms. In this case the contract ig (@) vitiated by undue influence. (b) valid because this is a transaction in the oni cause of business. (© void because the banker took unfair advantage of stringency in the money market. @ voidable atthe option of 'X'who was deesved by the banker Ans. (b) [DJs2014) “Acontract which is vitiated by undue influence js declared as which one of the following by the Indian Contact Act? (@) Invalid (b) Void © Mega @ Voidable Ans. (d) TUPSC CS 2008] Which among the following elements is not required in case of undue influence? (@ The parties stand in near relation to each other (&) One party shall have the position of dominance over the other (© The party standing in a dominating position actually dominates the will of the other (@ Partiesare not necessarily related atall, they can be strangers meeting for the first time Ans. (a) [UPSC CS 2005] Which one of the following agreements is induced by undue influence? (@) Acapplies to a banker for loan ata time when there is stringency in the money market. ‘The banker declines to make the loan except at an unusually high rate of interest. A accepts Joan on these terms (©) A,enfeebled by disease orage,isinduced byBS influence over him as his medical aendaat © agree to pay B an unreasonable sum for bi professional services © Avatthe age of sixty-five years, executes adeed of gift in favour of his only grandson gifts him all his properties to the exclusion of ‘Ans. (d) [OJS 2006, MP. APO 2008) wife, sons and daughters 434 Patiksha’ Manthan ee49. 51. Indian Contract Act, 1872 (@_B,a rich man, donates all his properties toa 53, charitable trust leaving nothing for himself and his family members Ans. (b) [UPSC Cs 2010) Which one of the following relation does not ‘come within the undue influence relationship? (@) Doctorand Patient (b) Customer and Shopkeeper (© Lawyerand Client (@ Masterand Servant Ans. (b) [UP cj 2013] A contract is voidable if it is caused by concealment of a material fact by someone who is under duty to speak because itis : (@_ misrepresentation (b) fraud © underinfluence 55. (@) none of the above ‘Ans. (b) [DJs 2007] A knows that his horse had a damaged hoof which he filled up in such a way as to defy defect and sold it to B. This defect was subsequently discovered by B. The act of A will amount to: @ A false suggestion (b) Active concealment of fact © Misrepresentation @ Mistake Ans. (b) IMP.Hys 2011] Which one of the following does not amount to fraud? @)_ Suggestion asa fact of that which is not true by fone who does not believe it to be true (b) Entire concealment of fact © A representation made without knowing it to bbe false, honestly believing it to be true (@ A promise made without intention of 57. performing it Ans. (c) [UP CJ 2006, JC} 2000] Active concealment of fact is associated with : @ Coercion (b) Froud © Mistepresentation (4) Mistake Ans. (b) [M.P. Cj 2019 )] © $B’ says to ‘AIF you do not deny it, I shall assume that the horseis sound”. ‘A? says nothing. Here ‘A’s silence is equivalent to speech. ‘This illustration is based on (@_ Section 17 (b) Section 18 © Section 19 (@ Section20 Ans. (a) [LP CJ 2006, MAP. CJ 1998, Bihar APO 2013] Asells, by auction, to B, ahorse which A knows to be unsound, A says nothing to B about the hhorse’s unsoundness: (@ This is not fraud with A () A plays fraud with B © A did not tll the truth to B (@ Aid not follow the ethies Ans. (a) [CJs 2003] Which one of the following does not amount to fraud? (@ Active concealment of fact (©) A promise made without any intention of performingit (© Suggestion as to a fact, which is not true, by one who does not believe it to be true (@ A representation made without knowing it to bbe false, honestly believing it to be true Ans. (d) [ELP.JS 2007-11, UPSC.Cs 2008, DJS 2010, PJs 2011, MJS 2011] sells, by auction, to his daughter, a horse which ‘A’ knows to be unsound and ‘A? says nothing about the horse’s unsoundness : (@ this fraud (©) this nota fraud © thisis misrepresentation (@) none of these Ans. (a) ‘Mere silence is not fraud unless (LP. Js 2015) (@) There is duty to speak (b) The silenceis deceptive There is a change in the circumstance to be brought to the notice of other party @ Allof these Ans. (4) (MP. Hys 2015, AJS 2011] Pariksha Manthan 4357 Indian Contract Act, 1872 58. In which case fraud is committed by silence? @ A did not disclose B at the time of selling his ‘car that he had stolen the car (&) A did not tell B at the time of selling wheat about its quality © A did not let B known that price of Silver is likely to fall at the time of selling Silver to him (@ A did not reveal B at the time of sale that the new Edition of the Book has been published Ans. (a) [MP. CJ2011] 59. Consider the following: 1. Active concealment of fact. 2. Promise made without any intention of performing it. 3. Breach of duty which gains and advantage to the person committing it. 4, Inducing mistake as to subject matter. Which of the above amount to fraud? @ and 2 (b) 2and3 © 3and4 (d) land4 Ans. (a) [UPSC Cs 2005} 60. Whenis the inadequacy of consideration taken into account by a court of law? (@)_ When the promisor performs his promise (b) Always at the discretion of the coure (© When the promisor expresses his desire to get maximum return for his promise (@) When fraud, coercion or undue influence in the formation of the contract is pleaded Ans. (A) [UPSC CS 2006] ‘Aaagrees to sell a horse worth Rs. 1,000 for Rs. 10 ‘As consent to the agreement was freely given. ‘The agreement is : (@ Voidable (&) Void © Contract @) Megal Ans. (0) IMP. CJ2007] 62. Atakes an insurance policy on his life making a false statement about his health and does not close the fact that he has been treated for 2 In this case, which of the @ Thecontractis void (b) Thecontractis unenforceable © Contractis voidable (@ The contractis unlawful Ans. (6) MEAS a Which one of the following is the essen ) misrepresentation? al of (@)_ The statement made by the defendant sh relate to the material fact a (©) The person making statement should negligent — (© The person making statement shoul believe it to be true a (@ The statement should directly be made tothe phintiff himself and no other Ans. (a) [UPSC C8 2009 When the agreement is eaused by coercion, frad or misrepresentation the agreement (@) illegal (b)_ unenfore © void (@)_voidable Ans. (d) [wBJs 2011) Under the Indian Contract Act, 1872, which of the following agreements is not void? (@) Contract in which consent has been obtained (b) A contract in which both parties are undera tion as toa matter of fact essential to the agreement. (© Aconteactin restraint of trade. ‘one of the above, ie. all the above contrac are void. Ans. (a) [ys 2018) Under Section 19 of the Indian Contract Ath 1872, the consent caused by coercion is: @ {a)--Voidable (b) Valid © Mega (@ None of these Ans. (a) [HyS 2014, HP. js2007h, Bys 2012), and With reference to ‘fraud by ‘misrepresentation’, which of the statement is/are correct? 1. Both render the contract voidable. 2 Fraud renders a cause faction in wort for-(@) voidable Indian Contract Adi, 1872 3. Simple misrepresentation is also a tort Select the correct answer using the code given below: Code: (@ and2 () 2and3 © tand3 @ 1,2and3 Ans. (a) [UP.cj2018] A contract, which is formed without the free consent of the parties, is (@)_ void ab initio & void © illegal (@) Voidable at the instance of the party whose consent was not free. Ans. (d) [M.P. APO 2008, HJS 2011, DJs 2015] When the consent to the contract is caused by coercion, the contract is: (b) void © valid (@) illegal Ans. (a) [H.P Js 2013] Under Indian Contract Act, an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is : (@) anillegalagreement (b) avoid agreement © avalidagreement —(d) avoidable contract Ans. (d) [BJS 2013, M.P. C2015] Aaagrees to sell his scooter worth Rs, 10,000 to B for Rs. 5000 only and as consent was obtained by coercion. Here the agreement is (@ Void (&) Valid © Voidable @ Unlawful Ans. (c) [BJS 2009] X enters into a contract with Y, for which ¥ is guilty of fraud. X can: (® set aside the contract but cannot recover damages (b) only recover damages (9 setaside the contract and can recover damages also (@ none of the above Ans. (c) PMLP.CJ 2005] Pariksha Manthan B. 74, 7B. ‘Acenters into contract with B. In this, Bis guilty offraud. A can now (@® rescind the contract but cannot get compensation ()_getcompensation only (Q rescind the contract and get compensation ~ @ None ofthe above Ans. (€) [BJS 2013] ‘Ay intending to deceive ‘B’ falsely represents that five hundred tonnes of indigo are made annually at A's factory, and thereby induces ‘B” to buy the factory. The contracts: @ Void (©) Voidable at B's option © Voidable at A's option @ Unhwfal Ans. (b) [CJS.2008] Match List-I with List-II and select the correct answer by using the codes given below the lists: List List-II (@ Undueinfluence (Contracts uberrima fides (b) Froud (i) Fiduciary relation (© Misrepresentation (i) Unlawfully detaining of property (@) Coercion Gv) Positive assertion not warranted by the information of the person making it Codes 9200 @ o @ @ & w ®% 0 @ @w& 0 M0 Ow @@ ama Ans. (2)Indian Contract Act, 1872 76. When both der to render a contract voi | oth the parties to agreement are at 80. Tnordes i ict void on the | is correct? () ifitis berween father and son (@_Bisliable because the agreement is not nudum. © ifitis between husband and wife pactum (@ ifitis berween by way of love and affection () Disability arises in quas-contract Ace (@) [M.P. HS 2009] (©. Bisnotliable as theres no contract 130. =o the statements given below is/are (@ Beliabiinyis saratory se [Bihar APO 201 1. An agreement, without consideration, in Ans. (3) [Bihar APO 2013] writing and registered, made on account of 434, Statement: An agreement to which the consent natural love and affection between parties of the promisoris freely givenis not void merely standing in a near relation, is a valid because the consideration is inadequate. aac Statement II: Inadequacy of the consideration 2. Ifany part ofa single consideration for one may be taken into account by the court in P y ormore objects, is unlawful, the agreement determining the question whether the consent is avoidable contract. of the promisor was freely given. @ lonly (®) 2only Choose the correct option: © both 1 and 2 (@)_ neither 1 nor2 (@ Only Lis true Ans. (a) (MP. HS 2011] () Only His true Consider the followis i Spee (© Both the statements are tue : (d) Both thi 1. An Agreement made without consideration is (@ Both the statements are false void. Ans. (¢) [ELP.Js 2019] Pariksha Manthan