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Practice questions- Indian Contract Act
By:- Arjita Chaturvedi
An alternative promise one branch of which is legal and the other is illegal
A. whole alternative promise can be enforced
B. whole alternative promise cannot be enforced
C. only legal branch of alternative forms can be in force
D. None of these
Explanation:- C
A and B enter into a contract where under A agrees to pay B a sum of money against
delivery of either furniture or Ivory. Trade in Ivory is prohibited by law. The agreement is

A. void and therefore unforeseeable

B. the agreement is valid for delivery of furniture and void for delivery of ivory
C. the agreement is entirely valid
D. valid at the option of A and not B
Explanation:-B
Under Indian Contract Act 1872 A promises B to drop prosecution which he has instituted against B
for robbery and B promises to restore the value of the things taken. the agreement is
A. valid
B. invalid
C. void
D. voidable
Explanation:-C
Section 62 of the Contract Act is related to the
A. agency
B. novation
C. breach
D. compensation
Explanation:-B
If the parties to a contract agree to substitute a new contract for it or to rescind or alter it, the
original contract
A. has to be performed
B. may or may not be performed
C. need not be performed
D. should be performed in the case of recession and alteration but not in the case of innovation
Explanation:-C
A party rescinding a contract
A. is not entitled to damages
B. can sue for declaration and specific performance
C. cannot sue but only defend
D. can sue for damages
Explanation:-D
A owes B rupess 5000/- . A pays to B rupees 2,000 and B accepted in satisfaction of whole claim on
A. Here
A. whole debt discharged
B. No debt is discharged
C. a part of debt is discharged
D. none of the above
Explanation:-A
No one is allowed to enrich himself at the expense of another this principle is known as

A. Quantum Meruit
B. Quasi contract
C. Quantum valeat
D. Nudum Pactum
Explanation:-B
Doctrine of unjust enrichment was laid down by the supreme court in which one of the following
cases
A. Sarla Mudgal vs Union of India
B. Mafatal Industries Limited versus Union of India
C. SR Bommai vs Union of India
D. Unnikrishnan vs State of AP
Explanation:-B
Change of the nature of the obligation in a contract is known as

A. recession
B. novation
C. renovation
D. alteration
Explanation:-B
When a minor is supplied with necessaries of life, the supplier:
(a) Cannot recover the price
(b) Can recover the price
(c)Can recover the price from the property of minor
(d)Can file a criminal case
Explanation:-C
A minor having lost his parents, is maintained by his neighbour. Whether the neighbour can seek
recovery of expenses?
(a) Yes, in certain condition
(b) No
(c) Yes, if minor's guardianship is granted by court
(d)None of the above
Explanation:-A
A, a tradesman, leaves goods at B's house by mistake. B treats the goods as his own. He is bound to
pay A for them
(a) Under Section 69 of Indian Contract Act
(b) Under Section 70 of Indian Contract Act
(c)Under Section 72 of Indian Contract Act
(d) Under Section 68 of Indian Contract Act
Explanation:-B
Finder of lost goods under Indian Contract Act,1872 is a :
(a) bailor
(b)surety
(c) bailee
(d)none of the above
Explanation:-C
Damages allowed under Section 73 of the Indian Contract Act, are
(a) liquidated damages
(b) compensatory damages
(c) penal damages
(d) none of the above
Explanation:-B
Where there is a breach of contract, special damages are awarded
(a)in all cases
(b) only when there are special circumstances
(c)only when there is a special loss
(d)only when there is a notice of the likely special loss
Explanation:-D
The principle of assessment of damages for breach is given in :
(a) Hadley v. Baxendale
(b) Scarf v. Zodine
(c) Kings v. Horr
(d) Hyde v. Wrench
Explanation:-A
When the damages cannot be assessed, the party may be awarded by the court
(a) actual damages
(b) liquidated damages
(c) exemplary damages
(d) nominal damages
Explanation:-D
If the compensation to be paid on breach of contract is the genuine pre-estimate of the
prospective damages, it is known as :
(a) special damages
(b)penalty
(c)unliquidated damages
(d) liquidated damages
Explanation:-D
"A’ contracts to sell and deliver 500 bales of cotton to B' on a fixed day. 'A' knows nothing
of B’s mode of conducting his business. 'A' breaks his promise and 'B', having no cotton is
obliged to close his mill. Is 'A' responsible for the loss caused to B' by the closing of Mill?
(a) Yes
(b) No
(c)To the extent of the loss caused
(d) None of these
Explanation:-B
Under Section 74 of the Indian Contract Act,1872 the Court cannot award damages
(a)more than the amount stated in the contract
(b) less than the amount stated in the contract
(c)equal to the amount stated in the contract
(d)none of the above
Explanation:-A
"Contract of Indemnity" is defined in which section of Indian Contract Act?
(a) Section 124
(b) Section 125
(c) Section 126
(d)Section 127
Explanation:-A
A contract between an insurance company and vehicle owner to save the later from
consequences of a vehicular accident is a contract of
(a) guarantee
(b)surety
(c) bailment
(d)indemnity
Explanation:-D
"A’ and“ B’ go into a shop . "B’ says to the shopkeeper "let 'A' have the goods. I will see that you
are paid". This is a contract of
(a)Guarantee
(b) Bailment
(c)Indemnity
(d) Pledge
Explanation:-A