Contract Act 1872 Multiple Choice Questions

1. An agreement becomes a contract when

1. These is some consideration for it
2. Parties are competent to contract
3. Their consent is free and their object is lawful
4. All of the above
2. An agreement enforceable at law is a
1. enforceable acceptance
2. accepted offer
3. approved promise
4. contract under section 2(h)
3. Offer as defined under section 2(a) is
1. communication from one person to another
2. suggestion by one person to another
3. willingness to do or abstain from doing an act in order to obtain the assent of other thereto
4. none of the above.
4. Every promise and every set of promises, forming the consideration for each other, is an
1. agreement as per section 2(e)
2. contract
3. offer
4. acceptance
5. Which among the following is an offer
1. Fixation of reserve price in an invitation for submission of tenders
2. A Development Authority’s announcement for making an allotment of plots on first come first served basis on payment of full
consideration
3. A banker’s catalogue of charges
4. A railway time table
6. Which is correct
1. proposal + acceptance = promise
2. promise + consideration = agreement
3. agreement + enforceability = contract
4. all the above
7. Proposal may be
1. Implied or express
2. Specific
3. Generic
4. Any of the above
8. An offer made without any words spoken or written is
1. Counter offer
2. Implied offer
3. Cross offer
4. Special offer
9. Goods displayed in a shop with a price tag is an
1. offer
2. invitation to offer
3. counter offer
4. none of the above.
10. Find out the incorrect statement
1. Every contract is an agreement, but every agreement is not a contract
2. The test of contractual intention is objective, not subjective
3. Acceptance is complete only when communicated to the offeror
4. The party inviting tenders is bound to accept the lowest tender
11. The communication of acceptance is complete as against the offeror
1. None of the above
2. When acceptance is reached to offeror
3. When it is put into transmission and leaves his power to reject / when it comes to the knowledge of proposer.
4. When acceptance comes to the knowledge of the offeror
12. Under what provision of the constitution of India the state acts in its executive power in entering in contracts with individ ual parties
1. Article 299
2. Article 298
3. Article 297
4. none of the above
13. All Government contracts made in exercise of the executive power of the union shall be expressed to be made by the president under
1. Article 297 of the constitution of India
2. Article 280 of the constitution of India
3. Article 299 of the constitution of India
4. none of the above
14. Which among the following is enforceable
1. If A saves B from drowning and B later promises A a reward
2. A finds B’s purse and gives it to him. B promises to give A Rs.50
3. A supports B’s infant son. B promises to pay A’s expenses in so doing
4. All of the above
15. Find out the void agreement among the following
 1. A for natural love and affection, promises to give his son, B. Rs.10,00,000. A puts his promise to pay B in writing and register it.
2. A owes B Rs.1,00,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs.50,000 on account of debt.
3. A promises, for no consideration, to give to B Rs.1,000
4. none of the above
16. A lunatic person means
1. Alien enemy
2. Person disqualified by law
3. Person of unsound mind
4. Insolvent person
17. A contract with or by a minor is a
1. valid contract
2. void contract
3. voidable contract
4. voidable at the option of either party
18. Find out the unenforceable contract among the following
1. A housing society agreed to sell land before it became a legal person by registration
2. A supplies B, a lunatic, with necessaries suitable to his life and wants to be reimbursed from B’s property
3. money advanced to save a minor’s estate from execution
4. none of the above
19. Consent is set to be free when it is not caused by
1. Coercion
2. undue influence
3. fraud or misrepresentation
4. All of the above
20. _______ does not affect the free consent of the parties.
1. Undue-influence
2. Incompetency of parties
3. Coercion
4. Fraud
21. Misrepresentation under section 18 means
1. a positive assertion, in a manner not warranted by the information of the
person making it, not true but he believes it to be true
2. any breach of duty, which gains an advantage to the person committing it, by
misleading another to his prejudice
3. causing a party to make an agreement to make a mistake as to the subject
matter of contract
4. all the above
22. Under section 2(c) promisor is the
1. person who makes the proposal
2. person who accepts the proposal
3. person who makes the promise
4. person to whom the proposal is made
23. An agreement enforceable by law at the instance of one party & not of other party under section 2(i) is called
1. Void contract
2. Voidable contract
3. Neither (a) or (b)
4. None of the above
24. Which of the following is valid?
1. Compensation for past voluntary services
2. A promise to pay time barred debt
3. Agreement made out of natural love and affection
4. All of the above
25. If the agreement consists of legal and illegal parts, and legal part is separable from illegal part, then legal part is
1. None
2. Voidable
3. Void
4. Valid
26. Amount withdrawn from ATM is
1. None of the above
2. Tacit contract
3. Express contract
4. Quasi contract
27. Which contract depends upon happening or non-happening of future uncertain event?
1. Voidable contract
2. Void agreement
3. Wagering agreement
4. Contingent contract
28. __________ Contract is made without any intention of parties.
1. Executory contract
2. Quasi contract
3. Implied contract
4. Express contract
29. A promises to pay B, a sum of Rs. 10000/- if it rains and in return B promises to pay Rs. 10000/- to A, if it does not rain. It is a/an
__________
1. Valid agreement
 2. Contingent contract
3. Wagering agreement
4. Uncertain agreement
30. PWD refused to release the payment to a contractor unless he gave up his claim for extra rate, amounted to
1. fraud
2. undue influence
3. coercion
4. None of the above
31. The term quid pro quo is applied in relation to
1. Legality of object
2. Capacity of parties
3. Free consent
4. Consideration
32. In a mediclaim insurance policy, the insured was forced and pressurized for consent to exclusion of cover for cardiac ailments. The consent
being
1. not lawful, it had binding effect
2. not unlawful, it had no binding effect
3. not lawful, it had no binding effect
4. none of the above
33. A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect B’s willing ness to
proceed with the contract
1. A is bound to inform B
2. A is not bound to inform B
3. Neither (a) nor (b)
4. none of the above
34. When a person at whose option a contract is voidable rescinds it, the consequence would be:
1. The party seeking recession need not perform and promise
2. the party seeking recession must restore the benefits that he has
obtained under the contract
3. Neither (a) nor (b)
4. Both (a) and (b)
35. ‘Consensus ad idem’, means
1. contract caused by mistake of one party as to matter of fact
2. Both the parties to an agreement are under a mistake
3. An agreement upon the same thing in the same sense
4. none of the above
36. Rescission of contract means
1. All of the above
2. Minor changes
3. Alteration of terms
4. Cancellation of contract with the consent of both parties
37. Which is the correct statement among the following
1. Both the parties to an agreement are under mistake as to a matter of fact is void
2. An agreement to lease equipment instead of selling it to avoid sales tax is voidable
3. Surrender of right to maintenance is a good contract
4. An agreement to induce a public servant is void
38. Where one of the parties is under a mistake as to matter of fact the contract is
1. valid
2. void
3. voidable
4. illegal
39. A contract may be discharged
1. by performance
2. By impossibility of performance
3. By Breach
4. All of the above
40. A, B and C jointly promise to pay D a sum of Rs.3000/-. C is compelled to pay the whole. A is insolvent, but his assets are sufficient to pay
one-half of his debts. D is entitled to receive
1. Rs.3000 from C alone
2. A,B,C to pay equally Rs.1000 each
3. Rs.500 from A’s estate, Rs.1250 from B and Rs.1250 from C
4. none of the above
41. In a delayed PWD work where the time is the essence of the contract, the PWD authority does not have the option of
1. rendering the contract voidable at the option of PWD
2. allowing extension of time when the contractor asks for
3. unilaterally extend the time without contractor’s consent
4. none of the above
42. If it was not the intention of the parties that time should be of the essence of the contract, the effect of delay would be
1. the contract does not become voidable
2. The affected party does not have the right to reject
3. The affected party may sue the other party for any loss caused
by the delay
4. All of the above
43. A contract is made for the import of goods and the import is thereafter forbidden by a Government order. It is
1. an agreement to do an act impossible in itself
 2. an agreement which is impossible by subsequent event
3. contract of novation
4. none of the above
44. X owes Rs. 15,000/- to Y and Y accepts Rs. 12,000/- in full and final settlement of the outstanding due. This is called
1. Cancellation
2. Remission
3. Alteration
4. Novation
45. The doctrine of frustration come in the play
1. where the performance is physically cut off
2. where the object of the contract is failed
3. either (a) or (b)
4. none of the above
46. Mr. ‘X’ contracted to sell a specified quantity of potatoes to be grown, but failed to supply them as the crop was destroyed by a disease,
identify the specific ground of frustration
1. Destruction of subject matter
2. change of circumstances
3. non-occurrence of contemplated event
4. none of the above
47. The effect of frustration of a contract is
1. none of the above
2. Performance or
dissolution depends on the intention of the parties
3. the dissolution of the contract occurs automatically
4. the parties may perform the contract
48. The parties to the contract agree to substitute the existing contract with new contract. This is
1. alteration
2. recession
3. novation
4. None of the above
49. After novation
1. the parties can fall back upon the old contract
2. Damages were to be awarded on the terms of the old contract
3. The original is discharged and need not be performed
4. none of the above
50. A breach of contract occurs when a party to a contract
1. renounces his liability under it
2. makes it impossible that he should perform his obligation under it
3. totally or partially fails to perform the obligations
4. (a) or (b) or (c)
51. A, a builder, contracts to erect and finish a house by the first of January, in order that B may give possession of it at tha t time to C, to
whom B has contracted to let it. A builds the house so badly necessitating B to rebuild it. A must make compensation to B
1. the cost of rebuilding the house
2. for the rent lost
3. and for the compensation made to C
4. all of the above
52. A sum fixed representing a genuine pre-estimate of the probable damage that is likely to result from the breach is
1. Unliquidated damages
2. Penalty
3. liquidated damages
4. none of the above
53. B holds land in Tanjore, on a lease granted by A, the landlord. The revenue payable by ‘A’ to Government being in arrear, his land is
advertised for sale by Government B pays to the Government the sum due from A
1. A is bound to make good to B the amount so paid
2. A is not bound to make good to B the amount so paid
3. Neither (a) or (b)
4. none of the above
54. Find out the incorrect statement special contracts with respect to a contract of indemnity
1. The party to be indemnified shall never be called upon to pay
2. All insurance contracts are contracts of indemnity
3. The promise of indemnity may be express or implied
4. none of the above
55. Which among the following is incorrect with respect to a contract of guarantee
1. A liability which is incurred independently of a ‘default’ is not within the scope of guarantee
2. The existence of a recoverable debt is necessary
3. A guarantee without consideration is not void
4. none of the above
56. An agreement to remain unmarried is
1. Unenforceable
2. Void
3. Voidable
4. Valid
57. Which among the following is a correct statement
1. past consideration is no consideration for a contract of guarantee
 2. forbearance to sue on the part of the creditor is a good
consideration for a guarantee
3. A contract of guarantee is a contract of absolute good faith
4. none of the above
58. Which among the following is incorrect
1. The liability of the surety is co-extensive with that of the principal debtor
2. A suit against the surety without even impending the principal debtor is maintainable
3. It is not open to the surety to place a limit upon his liability
4. none of the above
59. Finder of lost goods should _________.
1. Not mix with his own goods
2. Take care of the goods
3. Trace the true owner
4. All of the above
60. Which among the following is not a bailment
1. Hiring of a bank’s locker and storing things in it
2. Delivery of a railway receipt for the delivery of goods
3. A car involved in an accident delivered under the policy of the insurer
to the nearest garage for repair
4. none of the above
61. It is the duty of finder to return the goods to true owner. Otherwise the finder is guilty of __________.
1. None of the above
2. Extortion
3. Theft
4. Criminal misappropriation of goods
62. Which among the following is incorrect
1. Any kind of personal property which is movable and saleable can be the subject matter of pledge
2. Delivery of possession actual or constructive is necessary for a pledge
3. Any kind of personal property either movable or immovable can be the subject matter of pledge
4. none of the above
63. The relationship of principal and agent may be created by
1. Express appointment
2. the conduct or situation of the parties
3. necessity of the case
4. (a) or (b) or(c)
64. A quantity of butter consigned with the railway company was delayed in transit owing to a strike. The goods being perishable
1. Railway Company can sell the goods on getting instructions from the owner
2. Railway Company can sell the goods without getting instruction from the owner
3. Railway Company has no authority to sell the goods
4. none of the above
65. Find out the right the principal has against an agent who fails in his duty
1. to ask for account and also demand payment of secret profits earned by agent
2. to seek damages for disregard of the terms of agency as also for want of skill and case
3. to resist the claim of the agent for commission and indemnity by the plea that the agent had acted for himself
4. all of the above
66. Which among the following is incorrect
1. Black-listing a contractor involves giving him an opportunity of hearing
2. the power of the Government to call for limited tenders confined to existing contractors is not ex-facie arbitrary
3. Government contractor has both pre-contract as well as post contractual rights
4. none of the above
67. A sold goods to B at a price of Rs. 12,000/-. Towards payment, B gave a post-dated cheque for Rs. 12,000/-.
1. None
2. A is bound to accept the cheque at the request of B
3. A is not bound to accept the cheque
4. Here A is bound by the payment
68. Which among the following is incorrect
1. The legal implication of the bank guarantee and letter of credit are the same
2. Bank guarantee can also take the shape of performance bond
3. certification of breach is not enough in terms of bank guarantee
4. none of the above
69. Quantum meruit literally means
1. As much as no work done
2. As much as is credited
3. As much as is merited
4. None of the above
70. When the aggrieved party does not face any loss _______ damages can be claimed.
1. Vindictive
2. Nominal
3. Special
4. General

Q.1:- Where neither party any appropriation, the payment shall be applied:
a. If the debts are of equal standing, the payment shall be applied in discharge of each proportion ably.
 b. In discharge of the debts in order of time.
c. Whether they are or are not barred by the law in force for the time being in as to the limitations of suits.
d. All of the above.

Correct Option: D
Q.2:- What are the obligation of person enjoying benefit of non-gratuitous act:
a. The person enjoyed the benefits is bound to make compensation to the provider of the goods/services.
b. The person enjoyed the benefits is not bound to make compensation to the provider of the goods/services.
c. The person enjoyed the benefits has not asked for providing the goods/services hence not bound.
d. None of the above.

Correct Option: A
Q.3:- What is the meaning of ‘Quantum Meruit ’:
a. As much as saved
b. As much as paid
c. As much as retained
d. As much as earned

Correct Option: D
Q.4:- What are the consequences when a person who finds goods belonging to another and takes then into his custody:
a. He is subject to the same responsibility as a bailee.
b. He is bound to take as much care of the goods as a man of ordinary prudence would do.
c. He must also take all measures to trace its owner.
d. All of the above.

Correct Option: D
Q.5:- The Doctrine of Restitution may mean:
a. The position in which he would have been had there been performance not breach of the contract.
b. To put the injured party in the same position
c. To compensate for the pecuniary loss which naturally flows from the breach.
d. All of the above.

Correct Option: D
Q.6:- Vindictive damages are:
a. These damages are in the nature of the punishment.
b. These damages are indicative in nature only.
c. These are simple damages
d. None of the above.

Correct Option: A
Q.7:- When a contract is broken, what remedy is available before the party who has suffered:
a. He may sue for the specific performance of the contract.
b. He may rescind the contract.
c. He may sue for damages
d. All of the above.

Correct Option: D
Q.8:- The case titled as Hadley v. Baxendale, which the foundation of the modem law of damages states that:
a. Compensation is not to be given for any remote or indirect loss or damages sustained by reason of the breach.
b. The injured party is entitled to ordinary damages which naturally arose in the usual course of things from such breach.
c. Both A and B are correct.
d. None of the above.

Correct Option: C
Q.9:- Injunction is a mode of:
a. Securing the specific performance of the negative terms of a contract.
b. Securing the performance of the contract in positive terms of a contract.
c. Securing the performance of the contract.
d. None of the above.

Correct Option: A
Q.10:- The person who promises to make good the loss is called the:
a. Creditor
b. Surety
c. Indemnified
d. Indemnifier

Correct Option: D
Q.11:- A contract of indemnity may be called as:
a. Quasi contracts
b. Contingent contracts
c. Good contracts
d. None of the above.

Correct Option: B
Q.12:- A contract to perform the promise, or discharge the liability of a third person in case of his default is called as:
a. Contract of guarantee
b. Contract of agency
c. Contract of bailment
d. Contract of indemnity

Correct Option: A
Q.13:- In a contract of indemnity there are:
a. Two parties
b. Three parties
c. Four parties
d. None of the above

Correct Option: A
Q.14:- In a contract of guarantee there are:
a. Two parties
b. Three parties
c. Four parties
d. None of the above

Correct Option: B
Q.15:- The person in respect of whose default the guarantee is given is called:
a. The creditor
b. The surety
c. The principal debtor
d. None of the above

Correct Option: C
Q.16:- On whose request the surety should give the guarantee:
a. At the request of the principal
b. At the request of the banker
c. At the request of the debtor
d. At the request of the creditor

Correct Option: C
Q.17:- The person who given the guarantee is called:
a. Surety
b. Creditor
c. Principal Debtor
d. None of the above

Correct Option: A
Q.18:- A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or b y the conduct
of any other person, is called as:
a. Contract of guarantee
b. Contract of agency
c. Contract of bailment
d. Contract of indemnity

Correct Option: D
Q.19:- The person whose loss is to be made good is called the:
a. Surety
b. Indemnifier
c. Creditor
d. Indemnified/Indemnity holder

Correct Option: D
Q.20:- In the contract of indemnity there is/ are:
a. One contract
b. Two contract
c. Three contract
d. Four contract

Correct Option: A
Q.21:- In the contract of guarantee there is/ are:
a. One contract
b. Two contract
c. Three contract
d. Four contract

Correct Option: C
Q.22:- The person to whom the guarantee is given is called:
a. The creditor
b. The principal debtor
c. The surety
 d. None of the above

Correct Option: A
Q.23:- A guarantee which extend to a series of transactions is called:
a. Guarantee in series
b. Continuing guarantee
c. Serial guarantee
d. Step by step guarantee

Correct Option: B
Q.24:- Anything done or any promise made for the benefit of the principal may be to the surety for giving guarantee:
a. Small consideration
b. Sufficient consideration
c. No consideration
d. Consideration

Correct Option: B
Q.25:- A surety on discharging the debt due by the principal debtor steps into the shoes of the:
a. Agent
b. Bankers
c. Creditor
d. Principal

Correct Option: C
Q.26:- The liability of the surety is co-extensive with that of................ , unless it is otherwise provided by the contract:
a. The principal worker
b. The principal creditor
c. The principal debtor
d. The principal banker

Correct Option: C
Q.27:- A surety has the rights against the:
a. The co-sureties
b. The principal debtor
c. The creditor
d. All of the above

Correct Option: D
Q.28:- What will be the position where by a contract between the creditor and the principal debtor by which the creditor makes a composition
with or promises to give time to or not sue the principal debtor:
a. It will not affect the surety’s liability.
b. It will not discharge the surety, provided the surety has assented to such transactions.
c. It will discharge the surety.
d. Both B and C are correct.

Correct Option: D
Q.29:- When can a continuing guarantee may be revoked by the surety:
a. It can be revoked by the surely after the lapse of certain time period.
b. It can be revoked by the surety after the happening of a certain predefined event.
c. It can be revoked by the surety at any time as to future transactions by notice to the creditor.
d. None of the above.

Correct Option: C
Q.30:- Where the terms of the contract between the principal debtor and the creditor are changed/ varied, without the consent of the surety:
a. It will discharge the surety as to transactions subsequent to the variance.
b. It will not discharge the surety for all the transactions subsequent to the variance.
c. It will not discharge the surety for all the transactions done previously.
d. It will discharge the surety for all the transactions done previously.

Correct Option: A
Q.31:- The surety is discharged if:
a. By any act or omission of the creditor, the legal consequence of which is the discharge of the principal debtor.
b. There is a contract between the creditor and the principal debtor to release the principal debtor.
c. Both A and B are correct.
d. None of the above.

Correct Option: C
Q.32:- What is correct about the Factor:
a. A factor has the authority to receive the price and given a good discharge to the purchaser.
b. A factor has a general lien on the goods of his principal for a general balance of account between his and the principal.
c. A factor is a mercantile agent entrusted with the possession of goods for the purpose of selling them.
d. All of the above.

Correct Option: D
Q.33:- What is duty of Principal:
 a. Compensation to agent for injury caused by principal’s neglect.
b. Agent to be indemnified against consequences of acts done in good faith.
c. Agent to be indemnified against consequences of lawful acts.
d. All of the above.

Correct Option: D
Q.34:- How the agency can be created:
a. By ratification
b. By express or implied agreement
c. Be operation of law
d. All of the above.

Correct Option: D
Q.35:- Ratification of unauthorised act of a person can be ratified by the Principal:
a. In part
b. In full
c. Substantial portion
d. Only some portion

Correct Option: B
Q.36:- Who may employ agent:
a. Unsound mind
b. Minor
c. Lunatic
d. Major

Correct Option: D
Q.37:- A person employed to do any act for another, or to represent another in dealings with third persons is called:
a. Agent
b. Bailee
c. Bailor
d. Principal

Correct Option: A
Q.38:- Contract of Agency requires:
a. Adequate consideration is required
b. Consideration
c. Some consideration is required
d. No consideration is required

Correct Option: D
Q.39:- In an emergency, an agent has authority to do:
a. All such acts which a person of ordinary prudence, in his own case do under similar circumstances.
b. All such acts for the purpose of protecting his principal form loss.
c. All such acts for the purpose of earning his own interest.
d. Only A and B are correct.

Correct Option: D
Q.40:- An agency cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform........... ...... :
a. Personally
b. Officially
c. Arbitrarily
d. None of the above.

Correct Option: A
Q.41:- An agent having an authority to do an act has authority to do:
a. Everything which is at the discretion of the agent.
b. Everything which is profitable in his opinion.
c. An agent having an authority to do an act has authority to do:
d. Everything in which has its own interest.

Correct Option: C
Q.42:- Where acts are done by one person on behalf of another, but without his knowledge or authority:
a. After ratification, he will be liable for all the acts done by such person(agent)
b. He may elect to ratify.
c. He may disown such acts
d. All of the above.

Correct Option: D
Q.43:- A sub-agent is a person employed bf and acting under the control of:
a. The Principal
b. The employee of the Original Agent
c. The employee of the Principal
d. The Original Agent
Correct Option: D
Q.44:- An agency may be terminated:
a. By the business of the agency being completed.
b. By the Agency renouncing the business of the agency
c. By the Principal revoking his authority.
d. All of the above.

Correct Option: D
Q.45:- When an agent, holding and express or implied authority to name another person to act for the principal in the business of the agency, has
named another person accordingly, such person is:
a. An agent of the principal for such part of the business of the agency as in entrusted to him.
b. A sub-agent of the original agent.
c. A sub-agent of the principal.
d. Peer agent of the original agent.

Correct Option: A
Q.46:- Whatever a person can do personally, he can do through:
a. An employee
b. An agent
c. A servant
d. A labour

Correct Option: B
Q.47:- As between the principal and third persons who may be an agent:
a. Any person may become an agent.
b. Only the person having sound mind can become the agent.
c. Only the person of the age of majority can become the agent.
d. Both B and C are correct.

Correct Option: A
Q.48:- An agent who in consideration of an extra commission, guarantees his principal that the persons with whom he enters into cont ract on
behalf of the principal, shall perform their obligations:
a. Del credere agent
b. Broker
c. Mercantile agent
d. Special agent

Correct Option: A
Q.49:- What is the position where one person employs another to do an act which is criminal:
a. The employer is not liable
b. The employer is not liable nor indemnify him against the consequences of such criminal act.
c. The employer should indemnify
d. The employer is liable

Correct Option: B
Q.50:- What are the duties of an agent:
a. To use all reasonable diligence in communicating with his principal and in seeking to obtain his instructions.
b. To pay the sums received for principal
c. To render proper accounts to his principal on demand.
d. All of the above.

Correct Option: D

MCQs on The Indian Contract Act, 1872 Part 1

48799 Views

Q.1:- The person making the proposal is called the and the person accepting the proposal is called :

a. Proposor/ Proposee

b. Promisee/ Promisor

c. Promisor/Promisee

d. Proposee/ Proposor
Correct Option: C

Q.2:- Every promise and every set of promises, forming the consideration for each other, is called as:

a. A voidable contract

b. A contract

c. A void contract

d. An agreement

Correct Option: D

Q.3:- An agreement enforceable by law is:

a. A voidable contract

b. Void

c. A contract

d. A void contract

Correct Option: C

Q.4:- An agreement which is enforceable by law at the option of other or others is:

a. A contract

b. A voidable contract

c. Void

d. A void contract

Correct Option: B

Q.5:- The Indian Contract Act, 1872 extends to:

a. The State of Jammu and Kashmir.

b. The Union Territories of India

c. The whole of India except the State of Jammu and Kashmir.

d. The whole of India.

Correct Option: C

Q.6:- The Act which deals with the matters relating to the contract is titled as:

a. The Contract Act, 1872

b. The Indian Contract Act, 1872

c. The Indian Contract Act, 1882

d. The Indian Contract Act, 1972

Check Answer

Q.7:- An agreement not enforceable by law is said to be:

a. A contract

b. Void

c. A voidable contract

d. A void contract

Correct Option: B

Q.8:- When the communication of a proposal is complete:

a. When it do not comes to the knowledge of the person to whom it is made.

b. When it comes to the knowledge of another person that some communication was made to the
concerned person.

c. When it comes to the knowledge of the person to whom it is not made.

d. When it comes to the knowledge of the person to whom it is made.

Correct Option: D

Q.9:- When an acceptance may be revoked:

a. An acceptance may be revoked at any time before the communication of the acceptance is
complete as against the proposer, but not afterwards.

b. An acceptance may be revoked at any time before the communication of the acceptance is
complete as against the acceptor, but not afterwards.
 c. An acceptance may be revoked at any time before the communication of the acceptance is
incomplete as against the acceptor, but not afterwards.

d. An acceptance may be revoked at any time after the communication of the acceptance is
complete as against the acceptor, but not afterwards.

Correct Option: B

Q.10:- In order to convert a proposal into a promise, the acceptance must:

a. Be absolute and qualified.

b. Be expressed in some usual and reasonable manner, unless the proposal prescribes the manner
in which it is to be accepted.

c. Be absolute and unqualified

d. Both B and C only.

Correct Option: D

Q.11:- When a proposal may be revoked:

a. A proposal may be revoked at any time when the communication of its acceptance is complete
as against the proposer, but not afterwards.

b. A proposal may be revoked at any time before the communication of its acceptance is
incomplete as against the proposer, but not afterwards.

c. A proposal may be revoked at any time before the communication of its acceptance is complete
as against the proposer, but not afterwards.

d. A proposal may be revoked at any time after the communication of its acceptance is complete
as against the proposer, but not afterwards.

Correct Option: C

Q.12:- A contract which ceases to be enforceable by law becomes void when it ceases to be:

a. Void

b. Voidable

c. Enforceable

d. Unenforceable
Correct Option: A

Q.13:- The Indian Contract Act,1872 which was enacted on 25 April, 1872 came into force with effect
from:

a. 1st May, 1872

b. 1st September, 1872

c. 1st October, 1872

d. 1st November, 1872

Correct Option: B

Q.14:- A ‘proposal’ is defined as:

a. When one person signifies to another his willingness to do or to abstain from doing anything,
with a view to obtaining the assent of that other to such act or abstinence, he is said to make a
proposal.

b. When one person signifies to another his willingness to do, with a view to obtaining the assent
of that other to such act or abstinence, he is said to make a proposal.

c. When one person signifies to another his willingness to do or to abstain from doing anything, he
is said to make a proposal.

d. When one person signifies to many persons his willingness to do or to abstain from doing
anything, with a view to obtaining the assent of that other to such act or abstinence, he is said
to make a proposal.

Correct Option: A

Q.15:- An agreement was entered into with the minor. This is agreement is:

a. Void

b. Voidable

c. Bad

d. Illegal

Correct Option: A

Q.16:- Where a minor has entered into a contract for purchase of necessary items. In such cases:

a. The minor is not personally liable.

 b. Minor’s estates are liable to make good.

c. Minor’s guardian is liable.

d. The minor is personally liable

Correct Option: A

Q.17:- 6. Consent is defined as:

a. Two or more persons are said to consent when they agree.

b. Two or more persons are said to consent when they agree upon the same thing in the same
sense.

c. Two or more persons are said to consent when they understand the same thing.

d. Two or more persons are said to consent when they agree upon the same thing.

Correct Option: B

Q.18:- Consent is said to be free when it is not caused by:

a. Very much influence

b. Undue influence

c. Slightly influence

d. Influence

Correct Option: B

Q.19:- A, being in debt to B, the money lender of his village, contracts a fresh loan on terms which
appear to be unconscionable. This will be termed as:

a. Fraud

b. Coercion

c. Undue influence

d. Misrepresentation

Correct Option: C
Q.20:- When consent to an agreement is caused by coercion, fraud or misrepresentation, the
agreement is a contract :

a. Voidable at the option of the party whose consent was so cause.

b. Illegal

c. Depends upon the circumstances of the case.

d. Void

Correct Option: A

Q.21:- If the consent was caused by misrepresentation or by silence, fraudulent within the meaning of
section 17, the contract, nevertheless, if the party whose consent was so caused had the means of
discovering the truth with ordinary diligence:

a. may be voidable

b. may not be not voidable

c. is voidable

d. is not voidable

Correct Option: D

Q.22:- A fraud or misrepresentation which did not cause the consent to a contract of the party on
whom such fraud was practised, or to whom such misrepresentation was made, does not render a
contract:

a. Void

b. Voidable

c. Bad

d. Illegal

Correct Option: B

Q.23:- Where both the parties to any agreement are under a mistake as to a matter of fact essential to
the agreement,

a. The agreement is voidable.

b. The agreement can’t be enforceable at law.

 c. The agreement is void.

d. The agreement is not void.

Correct Option: C

Q.24:- When consent to an agreement is caused by undue influence, the agreement is a contract

a. Bad

b. Void

c. Illegal

d. Voidable at the option of the party whose consent was so cause

Correct Option: D

Q.25:- What is a sound mind for the purposes of contracting:

a. A person is said to be of sound mind for the purposes of making a contract, if, at the time when
he makes it, he is capable of understanding it and of forming a rational judgement as to its
effect upon his interest.

b. A person is said to be of sound mind for the purposes of making a contract, if, at the time when
he makes it, he is capable of understanding it.

c. A person is said to be of sound mind for the purposes of making a contract, if, he is capable of
understanding it and of forming a rational judgement as to its effect upon his interest.

d. A person is said to be of sound mind for the purposes of making a contract, if, at any time when
he makes it, he is capable of understanding it and of forming a rational judgement as to its
effect upon his interest.

Correct Option: A

Q.26:- Who are competent to contract:

a. Every person is competent to contract who is of the age of majority according to the law to
which he is subject, and who is of sound mind and is not disqualified from contracting by any
law to which he is subject.

b. Every person is competent to contract who is of the any age and who is of sound mind and is not
disqualified from contracting by any law to which he is subject.

c. Every person is competent to contract who is of the age of majority according to the law to
which he is subject.
 d. Every person is competent to contract who is of the age of majority according to the law to
which he is subject, and who is of sound mind.

Correct Option: A

Q.27:- What agreements are contracts:

a. All agreements are contracts if they are made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object, and are not hereby expressly
declared to be void.

b. All agreements are contracts if they are made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object, and may or may not be expressly
declared to be void.

c. All agreements are contracts if they are made by the consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not hereby expressly declared to be
void.

d. All agreements are contracts if they are made by the free consent of parties competent to
contract, for any object, and are not hereby expressly declared to be void.

Correct Option: A

Q.28:- Every agreement by which any party thereto is restricted absolutely from enforcing his rights
under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which
limits the time within which he may thus enforce his rights:

a. Is valid.

b. Is voidable

c. Is void.

d. Is illegal

Correct Option: A

Q.29:- The agreements which are in restraint of trade are;

a. Valid

b. Illegal

c. Void
 d. Voidable

Correct Option: C

Q.30:- The consideration must be:

a. Adequate

b. Must be adequate

c. Need not be adequate

d. Substantially adequate

Correct Option: C

Q.31:- An agreement in restraint of the marriage of a major persons is:

a. Legal

b. Illegal

c. Void

d. Voidable

Correct Option: C

Q.32:- If any part of a single consideration for one or more objects, or any one or any part of any one
of several considerations for a single object, is unlawful:

a. The agreement is void.

b. The agreement is voidable.

c. The agreement is enforceable.

d. The agreement is unenforceable.

Correct Option: A

Q.33:- A contract is not voidable because it was caused by a mistake as to any law in force in India; but
mistake as to a law not in force in India has the same effect as:

a. A mistake of case
 b. A mistake of fact

c. A mistake of law

d. A mistake of understanding

Correct Option: B

Q.34:- A contract is not voidable merely because it was caused by one of the parties to it being under
a mistake as to:

a. A mistake of fact

b. A mistake of law

c. A mistake of case

d. A mistake of understanding

Correct Option: A

Q.35:- The consideration or object of an agreement is lawful, unless:

a. The Court regards it as immoral, or opposed to public policy.

b. It is forbidden by law or Is of such a nature that, if permitted, it would defeat the provisions of
any law.

c. Is fraudulent or involves or implies injury to the person or property of another.

d. All of the above

Correct Option: D

Q.36:- An erroneous opinion as to the value of the things which forms the subject-matter of the
agreement, is not to be deemed:

a. A mistake as to a matter of law

b. A mistake as to a matter of fact.

c. A mistake of circumstances

d. A mistake of nature of transactions

Correct Option: B
Q.37:- A and B make a contract grounded on the erroneous belief that a particular debt is barred by
the Indian Law of Limitation:

a. The contract illegal.

b. The contract is not voidable.

c. The contract is voidable.

d. The contract is void.

Correct Option: B

Q.38:- The consideration may be:

a. Past

b. Present

c. Future

d. All the options are correct.

Correct Option: D

Q.39:- A ‘contingent contract’ is a contract to do or not to do something, if some event collateral to

such contract:

a. Happened or will not happen

b. Does or does not happen

c. May or may not happen

d. None of the above.

Correct Option: B

Q.40:- If the event becomes impossible, such contracts becomes:

a. Illegal

b. Bad

c. Void

d. Voidable
Correct Option: C

Q.41:- A wagering contract is .................. whereas a contingent contract is........................ :

a. Void/valid

b. Valid/void

c. Valid/voidable

d. Voidable/valid

Correct Option: A

Q.42:- A agrees to pay B Rs 10000, if two straight lines should enclose a space. The agreement
is.....................:

a. Void

b. Voidable

c. Valid

d. Illegal

Correct Option: A

Q.43:- Contingent contracts to do nor not to do anything, if a specified uncertain event happened
within a fixed time, become .............., if, at the expiration of the time fixed, such event has not
happened, or if, before the time fixed, such event becomes impossible:

a. Bad

b. Valid

c. Void

d. Voidable

Correct Option: C

Q.44:- Where a promisor has made an offer of performance to promisee and the offer has been
accepted, such offer must fulfil the condition:
 a. If the offer is an offer to deliver anything to the promise, the promise must have a reasonable
opportunity of seeing that the thing offered is the thing which the promisor is bound by his
promise to deliver.

b. It must be unconditional

c. It must be made at a proper time and place

d. All of the above.

Correct Option: D

Q.45:- Where two or more persons have made a joint promise, the promisee may in the absence of
the express agreement to the contrary, compel to perform the whole contract:

a. Severally

b. Jointly

c. Jointly and severally

d. Jointly or severally as per the desire of the promise

Correct Option: D

Q.46:- An agreement to do impossible act in itself is:

a. Bad

b. Void

c. Valid

d. Voidable

Correct Option: B

Q.47:- Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly,
under specified circumstances, to do certain other things which are illegal, the first set of promise is a
............... , but the second is a ................ :

a. Void agreements/ contract

b. void contract/agreement

c. Contract/void agreement

d. Contract/voidable contract
Correct Option: C

Q.48:- Where there are several amounts due to recover from the debtor then how a creditor can
appropriate the money deposited by the debtor towards the time barred debts:

a. Where there are no other circumstances indicating to which debt the payment is to be applied.

b. Where the debtor has omitted to intimate.

c. The creditor can’t appropriate the amount so credited towards the time barred debts.

d. Option A and B both are correct.

Correct Option: D

Q.49:- When an agreement is discovered to be void, or when a contract becomes void, any person
who has received any advantage under such agreement or contract is:

a. To make compensation for it, to the person from whom he received it.

b. Bound to restore it.

c. Need not to do anything in this regard.

d. Options A and B are correct.

Correct Option: D

Q.50:- In which circumstances the original contract need not be performed:

a. If the parties to a contract agree to alter it.

b. If the parties to a contract agree to substitute a new contract.

c. If the parties to a contract agree to rescind it.

d. All of the above.

Correct Option: D