Indian Contract Act, 1872. PRELIMINARY [Sections 1.2) ; a L The interpretation clause of the Indian Contract Act 1872 has been provided in ; (@) Section 1 oe Son 2 (Q Section 3 (@) none of thie above Ans. (b) (U.P. Cj 2012) The Indian Contract Act came into force on- (@)_1stOctober, 1872 (b) 15th October, 1872 9 4Siptember, 1872 (@) 19th April, 1872 Ans. (<) [ELP. JS 2020, WBS 2018] ‘The Indian Contract Act was enacted in the year: (a) 1950 (b) 1938 ( 1945 d) Ans. (d) [HLP. Js 2007-1] ‘The juristic concept of contract consists of : (2) free consent and capacity (b and acceptance (© consideration and undue influence (d) agreement and obligation Ans. (b) [UPsc Cs 2009] ‘The law of contract essentially determines the circumstances in which- (2) Acontractis atort and cirme (b) A promise may not be made (@ Apromise may be made (d exis sal be gly binding the Promsor [wys 2014] ‘Ans. (4) Samarth Agrawal Books 1 ‘Offer’ or ‘Proposal’ is defined in Indian Contract Actin tion 2(a) (b) Section 2(6) (©) Section 2(4) (4) Section 2(e) ‘Ans. (a) DG 2019} ‘A proposal as defined under Section 2(a) of the Indian Contract/Act, 1872, is: (@) Communication from one person to another (b) Suggestion by one person to another (6. Willingness to do something Allingness to do or abstain from doing an act in order to obtain the assent of other thereto ‘Ans. (4) [HLP-JS 2007-11] ‘The starting point of an agreement is- fer (b) Invitation to offer (Advertisement (4). Acceptance Ans. (a) [aJs 2015] ‘The display of articles in a showroom with prices amounts to: (a) Offer to sell articles at prices mentioned (b) Coupter offer oie to offer (4) Mere advertisement ‘Ans.(c) __[1JS2013, OJS 2013, WBJS 2018, BJS 2012, Bihar APO 2013, MP.) 2016, 2018 (1)] “When a man advertises that he has stock of books to sell, he is making : (@) anoffer \ or Ratton oie (©) aspecial offer (€) astanding offer ‘Ans. (b) [UPSCCS 2010] sat6 ‘When goods ae displayed in shop window with price tags attached to them, the offer comes from the: (@ offerer (b) shop gwner © genera public o-ciae An [M.P. APO 2008] ‘Which of the following is an offer? (@ Abid at an auction sale (©). Banker's catalogue of charges (©. Menuccard at a restaurant (@) All of the above hae (DJs 2011] Tender is : (@) anoffer \Y-Bivitaion to offer ( scounteroffer (4) apromise a 0) IMP. CJ 2006, 2010, 2013, BJS 2016, CJS 2008] ‘An advertisement of auction is : (@) proposal (b) mere statement \\9 ‘tation to offer (4) standing offer ‘Ans. (c) [RIS 2011] An offer can be made to- (@) A particular person (©) Particular class of person (Q World at large \(Q ASF the above Aas. (d) [wBys 2017] An offer made to the public at large is called. 2) Valig offer (b). Specific offer e . offer —_(d)_ None of the above s. (c) [0s 2013] dees cases which case relates to (@) Lalman Shukla, Gauri Datt (©) Cayite. Corbi (Both (a)and oe (d)_ None of the above Ans. (c) (wP.c32015] v. cgeneral offer”? Lark v, Carbolic Smoke Ball Co. (b), Baur. Balfour (0) Taylor v. Portington (d)_ Spencor . Harding ‘Ans. (0) IMP. HJS 2008} {A general offer open for world at large can be accepted : (a) Bysending a communication of acceptance (by complying with the conditions of offer (0) Bytendering himself to comply the conditions of offer (d) None of the above Ans. (b) (Js 2013} In Carlill v. Carbolic Smoke Ball Co., (1892)2 QB 484, the court ruled : (@) that an offer made to public at large is ¢ nudum pactum (b) that a general offer is no offer. (©) that an offer can be made only to a particular pers (af offer need not be made to an ascertained person Ans. (4) [HLP. Js 2009] In case of General Offer, a contract is entered into- (2) Theworld at large (b) The person who gives a reciprocal general offer (©) The friend of the offeror (d)The person who performs the conditions of the general offer Ans, (d) [oys 2011] Which one is the famous case related with the Beneral offer? (@) Lalman Shukla v. Gauri Dutt acer Dharmodas Ghose ill. Carbolic Smoke Ball Co, (8) Mac Pherson 0. Appanna AAO) IBIS 2016118 A gives an offer to give Rs. 1,000 19, 20. a 2 his lost dog. This is (2) aspecific offer eral offer. © notoersin (4) anamount to acceptance Ans. () 18)S, 2020) In case of general offer/there is no need to communicate the acceptance if not required the proposer. This has been held a ” (a 1% Carolic Sake Bail Ca ) Bhawani (© Labmon Sbuka . Gani Dutt (@)_Kamyji Deyennala and Sons Investment Import Ans. (a) [UP.C) 2012} Accalls 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 id not respond and subsequently sold the house to C. B’s SMS to A was” (2) Anoffer @) Aa: (9 invitation to receive offer (@) None of the above. Ans. (c) [RJS 2011] ‘What can a catalogue of books, listing price of cach book and specifying the place where the listed books are available be termed as? () Anoffer (b) An obligation to sell book (0) Aninvitation to offer (4) A promise to make available the books a the listed place Indian Contract Act, 1872 towhoever finds 23, ‘L’ is sent to search for G's mephew 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 L is + (0). Etithed {b) Not entitled asthe offer is general (6) Notgntitled asthe consideration is inadequate yoatoo entitled as the offer was not communicated to him ‘Ans. (d) [M.P. Cj 1996, 2013] X applied for the post of Principal of a local college and the governing body passed 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? (a) A cannot claim damages as there was no ‘communication (b) °X can claim damages as there was private ‘communication of resolution (©) ‘is not qualified for the post, so he cannot claim damages (@) the governing body cannot rescind the 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 t of loan (Maid (b) void (0 voidable (A) egal Ans, (a) [HLP:Js 2015] ‘Ans. () [UPSC CS 2005} 26, Who said that “An offer need not be made to an ‘Atendey in a newspaper is + ascertained person, but no contract can arise ioptnin el until ns been accepted by an ascertained person’ (b) promise (@) Lord Atkin (b) Lord Goddard © of - (© Chashre and Fifoot n @ ee ce gs 013,98 2014) Ans. (d) [uP.cj 2015) ‘Samarth Agrawal Books 543Indian Contract Ad, 1872 27. _ In cases of general offer, for a valid contract (@) the acceptor need not have the knowledge of theofier Oi acceptor must have the knowledge of the offer before acceptance by performance (© the acceptor 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 knowicdge 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 fof” The general offer prescribes some condition to be fulfilled (@) The general offer does not work without support of public at large Ans. (c) [UPSC Cs 2005] Consider the following statements : 1. An auctioneer’s announcement to sell an artifact ‘hrough auction on a certain day is not an offer but only an invitation to offer. 2 The highest bid in an auction is merely an offer which an auctioneer may of may not accept. ‘Which of the statements given above is/are ‘correct? @1 (b) 2only oon and2—(d)_ Neither 1 nor 2 few fe) [UPsc cs 2009) ‘What is the terminology used to describe a situation when two parties make identical offers to each other in ignorance of, other’s offer? (0) Ofer een (© Counteroffsr (4) Conditional offer Aac'(b) [M.P. Hs 2008) aL. ‘Which of the following cases is related to cross offer? (2) Adams v. Lindsell Finn v. Hofmann © Co. 4 () Howebold Fire Accident Insurance Co. Grant (d) Duenlop 1. Higgins ‘Ans. (b) (HP Js200) Which of the following statements is/ are correct? L- Counter offer puts an end to the original offer, q 2. In counter offer, the previous offer can be revived. 3¢ Acceptance must be absolute and unqualified, 4, Acceptance with new terms is valid. Select the correct answer using the code given below: Codes : (@) Lonly was (9 2and3 (@) 3and4 ‘Ans. (b) [UPSC Cs 2010] Match List-I with List II and select the correct answer using the code given below the lists: List ~ (@) Counter Proposal (b) Damages for breach (©) Acceptance by conduct (@) Commercial Hardship List-It () AKAS Jamal Moola Dawood $ (2) Hindustan Coop. Insurance Societies v. Shyam Sunder e Q) Hydew Wrench «@ Geng Saran us Ram Chardn Ram Gopal &) Codes : @ © @ ® @ 0) ® @ (>) @) @) @ @) © @ ®& @ A (1) @ Samarth Agrawal Books‘Indian Contract Ads, 1872 34, Which one of the following constitutes an offer? (@)_ Display of goods with price tagsin a selfservice shop O paincmen announcing a reward of Rs, 5000 to any person who would find the miss of the advertiser oe (@ When a man advertises that he has a stock of books to sell ata flat rate of Rs. 100 per book (@) An auctioncer’s announcement that specified goods will be sold by auction on a certain day Ans. (b) {UPSC Cs 2010) Union of India v. Maddala Thathaiah is an illustration, where the tender was ip the form of (a) Public offer Winget © Specificoffer (@) General offer Ans. (b) JS 2016) ‘An offer was sent by post, the acceptor wrote ‘accepted on the letter, put it in his drawer and forgot about it. The transaction is a: (@) Valid contract (b) Avoidable contract (9 Avoid contract (d) Jioagreement as the acceptance was never ‘communicated to the proposer Ans. (d) {1S 2013, HS 2014] Which one of the following is explicitly stated in Section 2(b) of the Indian Contract Act 18722 9K proposal, when acepted becomes a promise (b) A proposal, when accepted become a contract (9 A proposal, when accepted becomes an agreement (4) Approposal, when accepted becomes assurance Ans. (a) [ways 2015] ‘A proposal when accepted becomes : (b) Agreement (4) Acceptance [MP.Cj2001, 2015, UP. C) 2003, ‘AYS 2012, OJS2011] Samarth Agrawal Books Which of the following Sections of the Indian Contract Act, 1872 defines’ ‘Consideration’? : (®). Section 26), (@) Section 2(b) (9 Section 2(e) W)eion 214) ‘Ans. (d) [weJs 2017, JS 2014) Under the Indian Contract Act consideration- (4) may proceed from the promisee (b) may proceed from any other person (th (a) and (b) (d) neither (a) nor (b) Ans. () [19s 2015}, ‘The following rules as to consideration is true: (@) Ie must be adequate fust move at the desire ofthe promisor (Q. Hemust be present or future (€) Te must move at the desire of the promise Ans. (b) [HADA 2016] Which of the statements as to consideration is not correct : (@)_Temay be past also (b) enced not be adequate (9--Séranger to it cannot sue (4) Termust be real Ans. (€) IMP. CJ 1996] Consideration means (@) must have some value in the eyes of aw (b)_maustbe real (Q must not be illusory (a) Afar comet Ans. (4) IMP. APO 2008} Which of the following is correct? (@)_ Past consideration is no consideration Consideration canbe pas, present or future (9, Consideration can only be present (4), Consideration can only be future ‘Ans: (b) [M>P.C}2006, 2010]IL 546 Indian Contract Adt, 1872 Following is a case on Promissory Estoppel + (a) Kedar Nath. Gorie Mohammed (©) Dfbi Cloth and General Mills Ltd. Union of india (goth (a) and (0) (d) None of the above ‘Ans. (¢) Which one of the following pairs is correctly matched? (a) In India, Consideration must follow from [u.r. cj 2018) Promisce only (b) In India, Consideration must follow from only Promisor or only Promisee (In India Consideration must follow from Promisor or any other person on India Consideration must follow Promise or any other person Ans. (d) [HLP. Js 2015] Which of the following statements regarding consideration is not correct? (2). Temust be given at the desire of the promisor (b) Irmay be past also (0) Jenced not be adequate to the promise Stranger to it cannot sue Ans. (4) [uP.cj2012] Which one of the following is not essential for a consideration? (2) Itmust be given at the desire of the promisor (b) Valuable © Yéwfal ‘Adequate Ans. (d) Consider the following statements- 1 0ys2014) Performance ofa legal duty is no consideration for a promise. 2, Forbearance to sue 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? B. 4 (a) Lonly (b) 2and 3 C2 and 3 (@) tand2 Ani: (6) _ {UP.C) 2018) ‘An agreement entered into with free consent and lawful but with inadequate consideration is Tawful (a) unlawful (© void (d) voidable Ans. (b) [M.P. CJ 2019 (I1)] Consider the following statements: 1 According to Justice consideration may be some benefit to the plaintiff or some detriment to the defendant. Patterson, 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 promise only. Which of the statements given above is/are correct? ‘only (b) 2only: (©) Both 1 and2 (d) 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 aintenance amount and maternal uncle institutes suit against ‘A’ to enforce the promise. Which one of the following is the correct statement? Maternal uncle? @) will not succeed as he being a stranger to consideration can not sue upon the contract I succeed because according to the Indian Contract Act consideration may be given by the promisee or any other person (©) will succeed because he is near relative and in such cases consideration is not mecessary (a) will succeed because consideration given by a near relation may be treated as consideration given by the promisee Ans. (b), [UPSC Cs 2006} Samarth Agrawal Books5 L 3. 4 Indian Contract Aa, 1872 A, without the request of anybody, extinguish 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 th contract is: : (a) Unenforceable because it is immoral (b) Void for want of consideration (© Voigable os Ans. (d) IMP. HJs 2013] Agreement Every promise and every set of promises ing the consideration for each other is : (a) Amagreement ——_(b)_anacceptance (© anoffer (@) acontract Ans. (a) [BJS 2016, JJS 2014, DJs 2014, HDPJs 2013] ‘An agreement not enforceable by law is said to be: wma (b) voidable contract (©) illegalcontract © (d)_quasi-contract ‘Ans. (2) (JC) 2019, MP. APO 2008, ULP. HS 2016] Avoid agreement means oAGenent not enforceable by Law (b) Agreement Illegal in nature (6) Agreement not enforceable in a Court of Law (4) Agreement violating legal procedure Aas. (a) [HLP. Js, 2020] Choose sh€ correct statement : (a)an agreement not ‘enforceable by law is said to bewoid (b) an Sgretiment enforceable at the option of one party and not at the option of the other i said to be void (0 anagreement which is legal may bewoid (4). anagreernent enforceibleit the optioh of one party is void ‘Ans. (a) [M.P. APO 2008] ‘An agreement not enforceable by law is said t0 be void under- (a) Section 2(d) (© Section 2(0) (6) Section 2(0) Oa n 2(8) Ans. (d) {AJS 2015] “For an acceptance mere mental resolve to,dccept would not be sufficient; there must be some ‘on of the intent by speech, external manifest writing or other act.” twas held by Supreme Court in (4) Fazal abit, East Indian Railay Co. (b) M.Nanjappa 1: MP. Mutbusinamey (©) Dugdale Lovering. pBiasean Das Girdbari Lal Co. ‘Ans. (d) [u.P. Cj 2013] “The Indian Contract Act, 1872 defines “Contract” in Section? (@) 2) (b) 20) fo 2a) (y2(b) ‘Ans. (d) JS 2014, MP. APO.2009] Which one of the following ingredients is not necessary for contract (2). Proposal (b) Acceptance (© Consideration wFroeny ‘Ans. (2) [M.P. HJS2015, M.P. CJ 2007] ‘Which of the following is correct? A'contract fay be or : (b) must be in writing (©) must be made in the presence of witnesses (d)_-must be written on a stamp paper. Ans. (a) In the formation of a Contract which js not oo: essentials : a) Samages (b) Consideration © Offer (Gy Aekepeince se (MP. CJ2010} yrth Agrawal Book: Semanth . 547Indian Contract Ac, 1872 According to Section 2(h) of the Indian Contract 10, ‘Act, a““Contract” is: (@)_ an agreement between two or more parties (b) & promise to do something (© ap acceptance of an order (a/an agreement enforceable by law “Xns. (4) [WBJS2018, CJS 2016, HJS 2010] ‘An agreement enforceable by law at the instance of one or more of the parties and not of other or others under- Section 2(i) ofthe Indian Contract Act is called : (2) Avalid contract (© Avoid contract Ans. (d) (b) Anillegalcontract 1 (oA vwidable contract [U.P. HJS 2009, H.P. JS 2007-11, BJS 2012, 2020, HJS 2013, M.P: CJ 2015, ‘DJS 2014, PJS 2015, A.P. & N. JS 2017] A contract which is valid initially, however, ceases to be enforceable subsequently, the contract (@) remains valid. (®) becomes voidable when it ceases to be (of becomes void when it ceases to be enforceable. (€) becomes void since inception: Ans. (0) (UP. HS 2012] ‘Which one of the following statement is correct? Avoidable contract is an agreement which is : (@) Enforceable with the permission of the court. ) se by the parties thereto. (97 Enforceable by law at the option of one or more of the parties thereto, but not atthe option of the other or others. (A) Notenforceable by any of the parties thereto, Ans. (c) (DJs 2010) o f Contract is that the : ‘parties tothe contract can sue each other (b) beneficiary tothe contract can sue the parties (Q._ aries tothe contract can sue the third party (d)_ both (b) and (c) 4 (PIS 2012, wBJs 2014) ‘Assertion (A) : A stranger to a contract cannot enforce the contract. Reason (R) : He is not party to contract and can not take benefit G and (R) both are true and (R) is correct explanation of (A) (b) (A) and (R) both are true, but (R) is not the correct explanation of (A) (9) (Adis true, but (R) is false (4) (A) is false, but (R) is true Ans. (a) [UP.652013} The doctrine of privity of contract means th (2). acontractis a private affair between the parties. (b) consideration can be supplied only by the parties tocontract. (0) thecontract can be enforced only by a civil and private action. fly parties to contract can sue and be sued ‘upon the contract. Ans. (4) [DJs 2014, U.P. Cj 2006} Which of the following is an exception to the rule or doctrine of privity of contract that a stranger to a contract cannot sue? la Family settlement (b) Mortgage (©) Agency (a) Both (a) and (c) Ans. () IMP. HS 2008] Exceptions to the doctrine of ‘privity of contract’ do not include: (@)_ beneficiaries under a charge quitable mortgage (© estoppel (d)_ marriage settlement 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? (2) Theacceptance was given orally (0) Pe partes did not talk faceto-face (97 There's no intention to create a legal obligation (@) Invitation cannot be proved in the court of law Ans. (0) [UPSC Cs 2009] Samarth Agrawal Books16 u. 19. Indian Contract Ad, 1872 15, Which one of the following is essential for a valid contract under the Indian Contract Act, 1972 46) Aeing of minds ofthe parties (b) Meeting of the parties for searching legality of rights (0) Meeting of the parties to discuss consideration (a) Meeting of parties to discuss proposal and acceptance Ans. (a) Which is correct? [ur.gj206, (2) Proposal + acceptance = promise (b) Promise + consideration = agreement 20. The correct sequence in formation ‘of contract iss (@) offer, consideration, acceptance, agreement (b) agreement, consideration, offer, acceptance ‘fer, acceptance, agreement, consideration (d)_ offer, acceptance, consideration, agreement Ans. (c) [Bihar APO 2013] 24 Aunilateral contract in which only one party is bound, is also known as a: (a) Facitcontract (b) Implied contract phon ‘contract (a) Executory contract © ent +enforceability=contract. = Ans. (©) IMP. HJS 2010] Gate above 22, The words not defined in the Specific Relief Act ‘Ans. (d) [up Hys 2012] shall be understood according to = Which one of the following extentils of | \Mhelndian Contact Act contract does not find place in the Indian (b) The Indian Succession Act Contract Act, 1872? (9. Transfer of Property Act (2) Competency of Parties (d) None of the above (b) Real consideration Ans. (a) [HJs 2012] tention of contract (€) Laveful object Ans. (¢) [aP.js2011] Difference between a contract and social agreement is that of : (@) consideration (oY Titenton to create legal elatonship (consensus ad idem (@) certainty of performance Ans. (b) [uP.cj2013] ‘The test of intention to contract is- 9 Obicctive (b) Subjective (© Depends on case (a) None of the above aca: CG) [OJs 2016] A standard form of contract is one in which- (@) the terms are fixed by the government of the State to which the contracting party belongs (b) The terms are predetermined by the custom of the trade to which the contracting parties belong (©) The terms on which mercantile transactions of ‘common occurrence are to be carried out terms are fixed by one of the parties in advance and open to acceptance by any one Ans. (4) [OJs 2016] Standard form of contract is also known as: (@) contract of adhesion (b) unilateral contract (0 specific contract (9 Beh (a) and () Ars. (d) {BJS 2012] aa jarth Agrawal Books 54925. 27. Contracts of Adhesion are- (2) Unfaircontracts (b) Unlawful contracts (9 Contracts of adults (Senders form of contracts as) [oys 2011] Which contract is specifically ‘enforceable? (a) 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. Ce of these ‘Ans. (d) IMP. CJ 2018 (1)] Match the following + General Proposal 6 A. MeGregoro. 1 Me Gregor B. Weeks Tybald 2, Intention to contract €\ Henderson v 3. Consideration ‘Stevenson D. Gurrien Misa 4, Reasonable notice € Select the correct answer using the codes given below : Codes : A (a) 2 wr () 4 a Ans. (b) be woo »ren-a eewag [UP. Cj 2006} L 5 0 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? (2) Communication of a proposal (b) Communication of acceptance (9. Communication of revocation | (@-Révocation of proposals and acceptance Aas. (4) [U-P.. J 2006] Which one of the following is not provided in Sections 4 and 5 of the Contract Act? (@) Communication of offer (b) Communication of acceptance (0 Revocation of proposal and acceptance Revocation of contract Ans. (d) UCJ 2000) Which of the following is a leading case on the point of communication of offer : (2) Carlill. Carbolic Smoke Ball Co, (b) Belfour e. Belfour (©) Taplor o Portington (Laman Shukla v. Gauri Dutt Ans. (d) IMP. HS 2011] ‘A proposes, by a letter sent by post, to sell his house to B. When is the last point of time when Acan revoke the proposal? (a) Before the date/time when A posts the letter. (b) Before teh date/time when B receives the letter 7 (Before the date/time when B posts his leter accepting the proposal (d) Before the date/time when A receives the letter of acceptance, sent by B Ans. (c) [DJs 2018] In which of the following cases a proposal can be revoked when it is made by post? y ikere the promise posts his letter of acceptance (b) Till the letter of acceptance reaches the promisor (0) Till the promisee receives the acknowledgement that the letter of acceptance has been delivered to the promisor (d)_ Proposal once made cannot be revoked Ans. (a) IMP. cj2011] oo” hn ae amarth Agrawal BooksArsekake Hees oe Indian Contract Aa, 1872 Unde Sion 4h adian na Ay m. IL. X duly posts letter of acceptance wo Y. But the the revocation is complete as against Avene letter is lost in transit by the negligence of the telegram is : (a) Received byB 4 bties patched by A (©) Both (a)and(b) — (d) None of the above ‘Ans. (b) 1P)8 2015) In case of acceptance by © Post, at what point the acceptance is complete as against the proposer? (a) - Sak meh inthe course a " ut of power of (b) When the letter of acceptance has been written, (0. When the letter of acceptance has been received. (4) When the letter of acceptance has been read by the proposer. Ans.(a) —_[H.P. JS 2020, DJS 2014, RJS 2016] Acceptance sent through post : (2) cannot be revoked at all (b) canbe revoked at any time (0) can be revoked only if it does not reach the offerer Gan be revoked before it comes tothe knowledge of the offerer 7 Ans. (d) [Bihar APO 2013, HJS 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 (b) ‘A’has completed the writing of letter (0 ‘A’ gets information about the posting of the Jeter (GAB recrivesteleter ‘Ans. (4) [U.P.CJ2012, MP. CJ 2009] Communication of acceptance is complete a6 against the acceptor only : (@)_ when itis putin the course of transmission eo Freni comes tote hrowee ofthe proposer 0) when itis communicated to the acceptor that the acceptance has reached the proposer (4) all ofthe above ‘Ans. (6) (HLP.J5 2020, KCJ2012, ROJ2014, ‘TJs 2013, UPSC CS 2005, YS 2016, 2020, M.P. C) 2019 (0) Te post office. (8) There i¢ no contract concluded, because the scceptance has not reached the propor, (b) There is no contract concluded, because the progoner had not received the letes. ) The comtrac is concluded, because the acceptance is complete, ftom the date of dispatch, notwithstanding ary dela ot miscatriage in its antival from causes not within the acceptor’s control. (d) None of the above. ‘Ans, (c) [DJS 2010, 2019} When the acceptance is made by telephone then the contract is deemed to be made at such place : Wo Mhreresceeptance js heard or received (6) where the aceptance i given (9) where the acceptor resides (d) None of the above Ans. (a) [M.P. APO 2009] Consider the following statements The communication of an acceptance is complete L as against the acceptor when it comes to the knowledge of the proposer. 2. as against the proposer, when it is pat in a course of transmission to him, so as to be out of the power of the acceptor. ‘Which of the statements given above is/are correct? (a) lonly (b) 2only (Moth tand2 (A) Neither I nor2 “Ans. () [UPSC Cs 2008] In which case it was held that a contract through telephone is concluded at the place where acceptance is heard? (a) Lalman Shukla v. Gaxri Dutt, (1913) XL AUR 489 (All. (b)- Carlill . Carbolie Smoke Ball Ca, (1981-4) ALLER Rep 127, (ecnda Gove db Mi ido Lai Parsbotamdas € Ca, AIR, 1966 SC 543. (A) Satabrata Ghosts Migneeram Bangur © Co, ATR 1954SC 44 Ans. (c) [U.P. CJ 2003, DJS 2014] coecear intl ‘Samarth Agrawal Books 551Indian Contract Ad, 1872 15, Acontract by post is concluded at the place (@)_ from where the offer had been made (boom where the acceptance had been posted 10) _-where the acceptance had been received (d) where: the goods are to be delivered Aas. (b) [ways 2014] Consider the following statements : In Bhagvandas Goverdhandas Kedia v. Girdharilal and Go. itwas laid down that 1 Section 4 does not imply that the contract is ‘made qua the proposer at one place and qua the acceptor at another place. 2. the communication of acceptance should bbe from a person who has the authority to accept. Information received from an ‘unauthorized person is ineffective. Which of the statements given above is/are 2 @fAonly ) 2only (Q Both 1 and2 (@ Neither 1 nor2 Aas. (a) [UPSC CS 2007] 17. The communication of an offer or proposal is complete 7 @) it comes to the knowledge of the person to whom it is made (b) 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 (d) when the proposal is communicated reads the letter to the person to whom it is made Ans. (a) (JS 2019, M.P. APO 2008) 18 — ‘Acontract over telephone becomes complete at the placs where acceptance is heard’, In which case jyfias been held? (9 Bhagwandas us Gindbarilal (b) Carli v. Carbolic Smoke Ball 0 hacant eae (@) Setyabratia Ghosh 0 Mageram oe. [uP.cy2016) 19. 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: ey Conte is made (b)_ Contracts performed (0) Acceptor resides (a) Proposer resides ‘Ans, (a) [M.P. HJS 2010, DyS 2006, UP. HJS 2016] ‘A proposal cannot be revoked : (a) by failure of the acceptor to fulfil a condition precedent to acceptance (6) by lapse of the time prescribed in the proposal forts acceptance (0 by insanity of the proposer, if the fact of insanity comes to the knowledge ofthe acceptor re acceptance (@/ fier the communication of its acceptance is complete foe (@) [Os 2016] Revocation of offer by letter or telegram can be ‘complete : a itis dispatched ‘when it is received by the offeree (© when it reaches the offeree (@) both (a) and (0) oe) [PJs 2011) Revocation of acceptance under the Contract ‘Actiis provided under: (@)_ Section 4 Section 5 (©) Section 6 (d) Section 7 oO [HLP. Js 2019] on ‘Samarth Agrawal Books2B, Which of the following is correct tract Act, 18722 @) ‘An acceptance may be revoked at any ime before the communication of the acceptance 1 is complete as against the afterwards eo ‘under the but not (b)_Allagrerens are contac bul contact ar not agreements ‘A person who is usually of sound mind, but ccasionally of unsound mind, may not make a contract when he is of sound mind (4) The communication of a revocation is complete, as against the person to whom itis made, when it is put into a course of ‘transmission to the person to whom itis made, 50 as to be out of the power of the person who makes it. Ans. (@) (HP. Js 2012] 24, Which one of the following statements is true? (a) An offer can be revoked but an acceptance cannot (b) An acceptance can be revoked but an offer cannot « ‘and acceptance are revocable (@) Offer and acceptance are irrevocable Aas. () (MP. HJs, 2020) ‘A proposes, by leter sent by post, to sll his house to B. The proposal of A is accepted by B by letter sent by post. When can A revoke his proposal? (a) A may revoke proposal after B sent letter of acceptance by post 097 hes rok ropsatany inet Bet letter of acceptance (0) Both (a) and (b) are correct (d) None of the above Ans. (b) 26, A proposal is revoked : (a) Only by the death or insanity of the proposer wk i i ofthe death (b) By the death or insanity re ie B. {AP.J8 2011] or insanity comes to ‘nian Contraa Aa, 1872 (© Ph the death oF insanity of the proposer if the fact of his death or insanity comes to the knowlege of the acceptor before acceptance (4) None of the above is correct ‘Ans, (c) ‘Which statement is not true? [U.P. CJ 2006} (0) A proponal is revoked by the communication of notice of revocation by the proposer to the other party. (b) A proposal is revoked by the lapse of time prescribed in such proposal fr its acceptance (0 Apropos is revoked by the lapse of reasonable time, if no time is prescribed (4) & proposal is revoked by not meeting at the time prescribed ‘Ans. (d) cp 2019} ‘Which one of the following statements is not correct? (a) Acceptance must be in writing (b). Acceptance must be communicated (© Acceptance must bein prescribed manner (@)_ Oral acceptances a valid acceptance Ans. (a) [PJS 2019, Bihar APO 2013] To convert a proposal into a promise the acceptance must be (2) Qualified (b) Unqualified © Gpneral ae: ‘and unqualified ‘Ans. (d) —__[JS2019, CJS 2019, HP. JS 2016, BJS 2016, OJS 2017] Which of the following is a valid acceptance of a proposal? (2) When an acceptance is made in ignorance of the proposal (b) When an acceptance is made in usual and reasonable manner but not in a manner scribed by the proposer 0 an acceptance is made in a manner prescribed by the proposer (@) None of the above Ans. (c) [U.P.CJ 2003] esa Samarth Agrawal Books 553om 2. L (8) Abyetre and qualified n olute and unqualited (© Unusual and reasonable Indian Contra Act, MOR Where no application is made andino time ie Ms ‘- spteified for'performance of promise, there the agreement be performed within « (a) Three years (b) Tworrenre Wo One year rvonable time Ans. (d) {cys 2004} To convert « proposal into a promise, the prance must be : (4) Unual and qualified Ans. (b) [M.P, HJS, 2020) CONTRACTS, VOIDABLE CONTRACTS AND VOID Which one of the following Matements is nop comes? (a) Oral acceptances io a valid wccephance (bh) ACoagnanee smut be in maining fe) Acceptance rust be communicated (a) Acceptance must be in the prescribed manner Ans, (bh) IMP, APO 2008) Drawing cash from KYM, vale by fol) of bomener at an auction sale, etc, are examples of (4) Pixpress contract yin comnries (4) Unlawhsh comtsset (9, $6, 2000) (0) Taciteonteact ‘Ans. (b) [Sections 10-30] All agreements are contract if : (2) They are made by the free consent of parties ‘competent to contract (b) For a lawful consideration and with a lawful object 4 ‘apresly declared wo be void Gf ASS of the above Ans. (4) 1AJs 2012) Section 10 of indian Contract Act requires __ conbitions for an apsecment to beepme a contract. 3 b @ 6 7 5 Ans. (b) [OJ 2016) Which one of the following is correct? (4) Ail agreements are contracts once they have been sade between the partes for a consideration (b). Ail aysecsnents are cmtsacts once they have been nade betwecs the parties with their free consent (d) JM agreements are contracts if they are made by the free consent of parties competent to contact for lawful consideration and lawful object and not expressly declared by law to be void Ans, (d) (Bys 2016) Under Indian Contract Act, when does an agreement becomes a contract? (2) Itisenforceable by law () Itisbetween parties competent to contract (0) Sujs by the free consent of parties Qe tee Ans. (4) (MP, CJ 2013-1, 2018} Which one of the following is an essential component of a valid contract? (4), Social and economic pressures, the parties are ‘exposed to (b) Dominance of one party over the other (0) Joes influence of the parties ‘Competence and the contractual capacities of (6) Allaggeements are contsacts once they have been the parties made betwern the competent yarties Ans, (4) [UPSC C$ 2008} = : Samarth Agsaval Books ‘Indian Contract Aa, 1872 ‘Asageneral principle of Law of Cont trac one of the following is not an exrent id contract? ea ore v wo Witiog (b) Competency to contract ()_ Lawful consideration and lawful object (a) Free consent Ans. (a) [uPsc cs 2010] Following is/are essential(s) of valid contract ‘as'per Indian Contract Act, 1872; *’ (i) Parties to contract should have capacity to contract. (ii) Parties to contract should have legal mind. (iii) Parties to contract should be intelligent. (iv) Invitation to offer should be accepted. Find correct answer : (2) Only (and (v) are correct oer is correct, (©) Allofabove are correct (a) Only (iis correct (@) None of these Ans. (b) [PJs 2017] ‘According to Section 10 of the Contract Act ‘which of the following is not essential to convert ‘an agreement into a contract? (a) Free consent (b) Competence to contract © consideration with lawful object Yor of terms of the agreement ‘APO 2008] Every person is competent to contract (2) who is of the age of majority according to the tywhich 2, ‘Whois competent to contract ? (@) Person of unsound mind (b) Person who has not attained majority (0) Person who has been disqualified from contract: ing bythe Court (a) PGson who has been debarred from contesting any elections Ans. (d) Dg 2019] Cémpetency to contract relates to = (a) Age of the parties (b) Sgandness of mind of the parties (9/Both age & soundness of mind (4) Intelligence ofthe parties ‘Ans. (c) (Hs 2013] ‘A minor enters into agreement representing himself 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 agreement is 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, if innocent about his age ‘Which of the statements given above are correct? Tp tien 4 (b) 2and3 () 12and4 (@) 2and4 Ans. (a) [UPSC CS 2005] 5, The age-6f majority for contract is (8 years (b) 21 years (©) 6years (d) 18 years for gitls and 21 years for boys Aas. (a) [BJs, 2020) Jaw to which he is subject. 6 In the Contract Act, 1872, the provision about (b) who is of sound mind. Alege we is provided under the (Q who isnot disqualified from contracting by any ‘to which he is subject. Wek () Section 10 (gall the above. (©A.ection 11 (@) Section 12 Ans. (4) [RTS 2016] Ape) [HLP.JS2019] ‘Samarth Agrawal Books a556 Indian Contract Ac, 1872 Mohoribibi v. Dharmodas Ghose is 4 case relating to: (@)_ Partition of property (b) Djx6rce (9 Minors contract (@) None of these Ans. (6) (HP. Js 2007-1] ‘The case Mohori Bibi v. Dharmodas Ghoseis based pa which provision of the ICA, 1872 ghaa u (&) Section ‘% Section 13 (d)_ Section 12 Ans. (2) (MP. HYs 2015] Assertion (A): ‘A’ supplies necessary necessities to “B’,a minor. ‘A’ can recover the payment from the estate of B’ Reason (R) : An agreement with a minor is void ab initio Codes : (2) Both (A) and (R) are true and (R) isthe correct ion of (A) waa sccueamete comrect explanation of (A) (© (A)istrue but (R) is false (@) (Adis false but (R) is true Ans. (b) [HP.Js 2011) ‘Which decision has laid down the principle that contract by a minor is void ab initio? ® Prasad, Baldeo ‘Mobori Bibi v. Darmo Das Ghosh (©) bwarah Pili Sonnivavers (@) Chingy, Ramapa Ans. (b) IMP. HJS 2008, M.P. CJ 1996, BJS 2013, 2009] ‘The case of Mohon Bibi v. Dharmo Das Ghose (1) is the decision of Supreme Court of India regarding extraordinary contracts (11) has laid down thatin India a minor's contract is void ab initio (II1)has laid down that a minor's contract becomes valid when he attains majority Which of the above statement(s) is/are correct? 4 @ (and (am) (&) (A) alone (© (1) and (1) (d) (I) alone Ans. (é) ‘Assertion (A) : Minor’s contract is void, Reason (R) : Mortgage executed in favour of a minor is enforceable by him. Code: (2) Both (A) and (R) are true and (R) isthe correct lanation of (A) ob (A) and (R) are true, but (R) is not the correct explanation of (A) (© (A)is true but (RVs false (4) (A)is false but (R) is true Ans. (b) [UP. C2003] ‘An agreement with minor is void, hence : (@) Minor is never allowed to enforce such aggeement Winer is allowed to enforce such agreement, if was made for his benefit (© Minor is always allowed to enforce such agreement (d) Minors allowed to enforce such contract when other party makes no objection (©) None of these Ans. (b) A contract with or by a minor is a: (a) Valid contract (id contract [PJs 2017) (© Voidable contract (4) Voidable at the option of either party Ans. (b) IMP. CJ 2006, 2010, 2017, M.P. APO 2008 HJS 2012, UP. CJ 2015, TJS 2013] In the Nash v. Inman case, the issue was: (2). Minors liability (b) Frustration (0 Fraud (4) Misrepresentation Ans. (a) [HLP. Js 2016] a ‘Samarth Agrawal Books16 On attaining the age of Majority, agreement : (@) Can be ratified (b) Becomes automatically valid (© Cannot be ratified a 1B vp. Indian Contract de, 1872 the minor's (a) Becomes void Ans. (c) aa ‘ (PS 2019) ie age of majority for the nin purpose of the (a) 18years (b) 21 years (© 16 years for girls and 18 years for boys (@) 18 years for gitls and 21 years for boys Ans. (a) [BJS 2013, OJs 2011, AJS 2015] The principle “Restitution stops where repayment begins” can be applied against (@)Analien enemy only (b) Any incapable person (© Lunatics and idiots only (@) Minorsonly ‘Aas. (A) OS 2016] “According to Section 11 of the Contract Act, a person is incompetent to contract who is a: @ minor (b) person of unsound mind (Q person disqualified from contracting by any law (4) All of the above ‘Ans. (d) [M.P. APO 2008] 20. Apatient ina lunatic asylum who is at intervals 2. a ‘Samarth Agrawal Books of sound mind : (2) May notcontract (b) Maycontract during intervals (0) May contract on Medical certificate (a) May contract after complete sound mind Aas. (b) [CJS 2003, M.P. CJ 2001] Consider the following statements + be of sound mind for the person is said to . i contract if at the time of purpose of making @ OF the age of majority. 2. capable of understanding the contract though Uunable to form a rational judgment as to its effect upon his interest. 3. capable of understanding it and of forming a tational judgement as to its effect upon his interest. ‘Which of the statements given above is/are correct? (@) only (b) 1,2and3 (©) 2and3,only (d) 3only ‘Ans. (d) [UPSC Cs 2006] L ‘Consensus ad idem under a contract means = (2) Common intention (b) Meeting of minds (Theme of contract (4) None of the above Ans. (b) [ys 2015} ‘The term “consensus ad idem” means = (@)_ noagreement can have more than one meaning (b) toagree the same way (Q toagree on the same thing with same sense (4) toagree for different objects in the same sense Ans. (c) [UP. CJ 2006, 2016, DJS 2014] ‘Two or more persons are said to consent when (a) they agree (b) they agree upon the same thing (©) they agree upon the same thing in the same sense (4) they agree upon the same thing in the same sense atthe given location Ans. () UC 2019) For a binding contract both the parties to the contract must : (2) Agree within each other (b) Stipulate their individual offer and ‘consideration (©) Agree upon the same thing in the same sense (a) Putclear offer and counter offers Ans. (c) [BHYS 2015]ey Abid Cohtrtét Act, 1872 Consent iill'be'said totbe fee, 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? (b) Section 15 (@) Section 14 (0 Section 16 (d) Section 17 Ans. (a) [BJS 2016, CJS 2014] ‘Aconsent is said to be free when it is not caused by: (b) Undue influence (a) Coercion (9 Fraud (a) All of these Ans. (d) {H.P. JS 2007-1] ‘The consent obtained by threatening to commit suicide amounts to consent by: (b) Undue influence (2), Coercion (9 Fraud (a) None of these Ans. (a) [BJS 2009] “Coercion” under English Law is also known as () Duress (b) Voidable agreement (© Void Agreement (d) Both (a) and (b) Ans. (a) [PJs 2012] Under the Indian Contract Act, 1872, coercion means (2) Committing of any act forbidden by IPC (©) Threatening to commit any act forbidden by IPC (0 Unlawful detention or threatening to detain any ‘property to the prejudice of any person @ ‘All of the above Ans. (d) [PJs 2019] A threat to commit suicide in performance of the contract amounts to: (b) fraud (9) misappropriation (d)_ coercion Ans.(d) [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 which one of the, following? cae (@) undue influence (@) Unlawful detention (b) Duress (9 Undueinfluence (4) Coercion Ans. (4) [aJs 2015) 2 13. 4 16, 7. When consent to an agreement is caufed' by coercion, the agreement is (2) Valid contract (b) voidable contract (0) void contract (4) invalid contract Ans. (b) UC) 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? (a) Agreement in restraint of legal proceedings (b)_ Agreement in restraint of trade (0) Agreement under coercion (a) Agreement in restraint of marriage Ans. (c) [U.P. C2016] ‘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? (@) Undueinfluence (b) Fraud (9 Coercion (@) Intimidation Ans. (c) [UPSC Cs 2008} Threat to strike is (@) undueinfluence (b) mistake (©) coercion (@) nocoercion Ans. (d) [H-P. JS 2015} Undue influence has been defined under Section of the Indian Contract Act, 1872: @) 16 (b) 23 © 15 (d)_ None of the above Ans. (a) [PJs 2015] In which of the following statement “undue- influence” does not exist? (@) When dominating party holds real or apparent authority (b) When a person's mental capacity is affected because of bodily distress (©) When a party threatens another to commit suicide (d) When the party holds fiduciary relationship Ans. (c) (HP. Js 2016} ‘Samarth Agrawal BooksIndian Contraa Aa, 1872 18 A Guru (Spiritual Advisor) induced the (his devotee) to gift him the whole of his property to secure benefit to his soul i world. The gift shall be: og @ wid (b) voidable (9 valid (4) immoral Ans. (b) (MP. Cj 2021, H.P.J5 2011] 19, Abaving advanced money to his son, B, during 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 (2) coerion (b) fraud (Q undueinfiuence (4). misrepresentation Ans. (©) [uP.cj2015} 20, A master asks his servant to sell his bike to him ata price less than the market price. This contract can be avoided by the servant on the ground of: (2) coerion (b) fraud (Q mistake (4) undue influence ‘Ans. (4) [JS 2006, M.P. APO 2008] 21. ‘A’ applies to a banker for a Joan ata time when there is stringency in the moncy market. The banker declines to make the loan except at an unusually high rate of interest. ‘A’ accepts the Joan on these terms. In this case the contract is (@)_vitiated by undue influence. (0) valid because this isa transaction in the ordinary cause of business. (0) void because the banker took unfair advantage of stringency in the money market. (a) voidable atthe option of ‘A’ who was deceived by the banker. ‘Aas. (b) [DJs 2014] 22. Acontract which is vitiated by undue influence is declared as which ope of the following by the Indian Contact Ac? (@) Invalid () Yoid (© Wegal (@) Yoidable ‘Ans: () [UPSC C$ 2005) (4) The partes stand in near telation to each other (b) ‘One party shal have the position of dominance over the other (0 The party standing in 2 dominating position actually dominates the will of the other (8) Parties are not necessarily related 2 ll, they can be strangers meeting for the firs time a) [UPSC CS 2009} Which one of the following agreements is induced by undue influence? (2) Aapplies to a banker for loan at a time when there is stringency in the money market. The banker declines to make the Joan except at an ‘unusually high rate of interest. A accepts the Ioan on these terms (b) Avenfeebled by disease or age, is induced by B's influence over him as his medical attendant, agree to pay B an unreasonable sum for his professional services (9. Avat the age of sixty-five years, executes a deed of gift in favour of his only grandson gifting him all his properties to the exclusion of his wife, ons and daughters (@) Byarich man, donates all his properties to a 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? (@) Doctor and Patient (©) Customer and Shopkeeper (9. Lawyerand Client (@) Masterand Servant ‘Ans. (b) [uP.c)2013} A contract is voidable if it is caused by concealment of a material fact by someone who is under duty to speak because it is : @) misrepresentation (b) fraud (©, under influence (d) none of the above Ae) (03s 2007] oT Ee ‘Samarth Agrawal Books 559)Indian Contract Adi, 1872 A knows that his horse had a damaged hoof 32 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: (2) A false suggestion (b) Active concealment of fact (. Misrepresentation (@) Mistake ‘Ans. (b) IMP. HJs 2011] 28 A intending to deceive B, falsely represents that 3L. five hundred mounds of indigo are made annually at A's factory and there by induces B to buy the factory. The contract is- (@) Void (&) Voidable at the option of B (9 Notvoidable on account of A's misrepresentation (@) Voidable at the option of A Ans. (b) [M.P. HJS, 2020] 34, Which one of the following does not amount to fraud? (@)_ Suggestion as a fact of that which is not true by one who does not believe it to be true (©) Entire concealment of a fact (© Arepresentation made without knowing it to be false, honestly believing it to be true (@ A promise made without intention of 3 performing it Ans. (c) [WP. CJ 2006, JCJ 2000] Active concealment of fact is associated with : (@) Coercion (b) Fraud (© Misrepresentation (d) Mistake ‘Ans. (b) IMP. Cj 2019 (IN] 36, ‘'B’ says to ‘A-"IF you do not deny it, I shall assume that the horse is sound”. ‘A’ says nothing. Here‘A’s silence is equivalent to speech. This illustration is based on (9) Seeton 17 (©) Section 18, (Q) Section 19 (4) Section 20 Ans. (a) [UP.C) 2006, MP. Cy 1998, Bihar APO 2013] Asells, by auction, to B, a horse which A knows to be unsound, A says nothing to B about the horse’s unsoundness ; (@) This is not fraud with A (b) A plays fraud with B (©) Adid not tell the truth to B (d) Adid not follow the ethics Ans. (a) [Gs 2003} Which one of the following does not amount to fraud? (a) Active concealment of a fact (b) A promise made without any intention of performing it (© Suggestion as to a fact, which is not true, by one who does not believe it to be true (4) A representation made without knowing it to be false, honestly believing it to be true Ans. (d) [HLP. JS 2007-II, UPSC CS 2008, DJS 2010, PJS 2011, MJS 2011] Asells, by auction, to his daughter, a horse which ‘A’ knows to be unsound and ‘A’ says nothing about the horse’s unsoundness : (2) thisa fraud (b) thisnota fraud (9) this is misrepresentation (4) none of these Ans. (a) Mere silence is not fraud unless (@)_ Theres duty to speak (b) The silence is deceptive (©) There is a change in the circumstance to be [HLP. Js 2015] brought to the notice of other party (d) All of these Ans. (d) IMP. HJS 2015, Ajs 2011] In which case fraud is committed by silence? (a) Adid not disclose B at the time of selling his car that he had stolen the car (b) A did not tell B at the time of selling wheat about its quality (© Adid not let B known that price of Silver is likely to fal at the time of selling Silver to him (d) A did not reveal B at the time of sale that the new Edition of the Book has been published ‘Ans. (a) IMP. cj2011) nO Fl eee37. 4a ne rr Samarth Agrawal Books Indian Contra Ae, 1872 Consider the following : 1 Active concealment of fact, 2 ara without any intention of 3. Breach of duty which gai wethepeme ese e 4, Inducing mistake as to subject matter. Which of the above amount to fraud? (@) 1and2 (b) 2and3 (© 3and4 (a) Land Ans. (a) TUPSC Cs 2005} ‘When is the inadequacy of consideration taken into account by a court of law? (2), When the promisor performs his promise (b) Alwaysat the discretion of the court (When the promisor expreses his desire to get ‘maximum return for his promise (@) When fraud, coercion or undue influence in the formation of the contracts pleaded Ans. (d) [UPSC Cs 2006] A.agrecs to sell a horse worth Rs. 1,000 for Rs. 10 A’s consent to the agreement was freely given. The agreement is : (2) Voidable (b) Void (© Conmact (@) egal Ans. (€) IMP. CJ 2007] ‘Atakes an insurance policy on his life making a false statement about his health and does not disclose the fact that he has been treated for a serious illness. In this case, which of the following statements is correct? (@) The contract is void (b) The contract is unenforceable (© Contracts voidable (4) The contract is unlawful Aas. (6) IMP. HS 2011] Which one of the following is the essential of misrepresentation? (@) The statement made by the defendant should relate to the material fact (b) The person making statement should not be negligent (©) The person making statement should not believe it to be true (a) The statement should directly be made to the plaintiff himself and no other ‘Ans. (a) [UPSC CS 2006] ‘Whet the agreement is caused by coercion, fraud or misrepresentation the agreement is (0) illegal (b) unenforceable (0 void (4) voidable ‘Ans. (d) [ways 2011} Under the Indian Contract Act, 1872, which of the following agreements is not void? (@) Contract in which consent has been obtained by fraud. (b) A contract in which both parties are under 2 rmisrepresentation as to matter of factesental tothe agreement. (0. Acontractin restraint of trade. (4). None of the above, ic all the above contracts are void. ‘Ans. (2) [DJs 2018) Under Section 19 of the Indian Contract Act, 1872, the consent caused by coercion is : (@) Voidable (b) Valid (©) Mlegal (d)_ None of these Ans. (a) [HJS 2014, H.P. JS 2007-11, BJS 2012) ith reference to ‘fraud’ and ‘misrepresentation’, which of the statement/s is/are correct? 1, Both render the contract voidable. 2, Fraud renders a cause of action in tort for dam- ages. 3. Simple misrepresentation is also a tort Select the correct answer using the code given below : Code: (@) Land 2 (b) 2and3 (© Vand (@) 1,2and3 rane (0) [uP.cj2018]"7. SL Indian Contract Ad, 1872 ‘A contract, which is formed without the free 52. consent of the parties, is (@) void ab initio (b) void (©) illegal (a) Voidable at the instance of the patty whose consent was not free. ‘Ans. (4) [M.P. APO 2008, HJS 2011, DJS 2015] ‘When the consent to the contract is caused by coercion, the contract 53. (a) voidable (b) wid (Q walid (a) illegal Ans. (@) [HP.J8 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 : (@) anillegal agreement (b) avoid agreement (9. svalid agreement (4) avoidable contract Ans. (@) [BJS 2013, M.P. Cj 2015] A.agrecs to sell his scooter worth Rs. 10,000 to B for Rs. 5000 only and as consent was obtained by cocrcion. Here the agreement is (@) Void (b) Valid (© Voidable (@) Unlawful Ans. () [BJS 2009] X eaters into contract with Y, for which Y is guilty of fraud. X can : (@) set aside the contract but cannot recover (b) only recover damages (©. setaside the contract and can recover damages also (4) none of the above Aas. (c) [M.P. CJ 2006] Acnters into ‘i eth of baud. omtrt with Bn this, Bis puilsy (@) resci Cekcind the contract but cannot get (b) get compensation only (9) rescind the contract and ras : (@) None ofthe shoe ne Ans. (c) ta’, intending to deceive ‘B’ falsely represents that five hundred tonnes of indigo are made annually at A’s factory, and thereby induces ‘BY to buy the factory. The contract is : (@) Void (b) Voidable at B's option (0 Voidable at A's option (a) Unlawful i Ans. (b) [CJS 2008} Match Listl with List-If and select the correct answer by using the codes given below the — lists : List List-It (a) Undueinfluence (i) Contracts uberrima fides (b) Fraud (i) Fiduciary relation (©) Misrepresentation (ii) Unlawfully detaining of Property (4) Coercion (iv) Positive assertion not warranted by the information of the person making it Codes : @ ) © @ @ @ @ @v) @i) ) @ Gi) Gi) Gy © Gi) @ @ @) Gi) Gi) Gw) @ Ans. (a) [HLP. Js 2012) ‘When both the parties to agreement are at mistake regarding facts, the agreement will (@)_beenforceable (b) be voidable (©) not be void (@) be void Ans. (d) [BJs 2013, WB Hys 2014, JJS 2014, HJs 2014, 2009, MP. CJ 1998, 2014, 2019 (II), 2021, {BJs 2013) U.P. CJ 2015, 2016] Samarth Agrawal Books55. ‘Non est factum' means (@): document executed in ignorance (b) document executed under coercion © document executed under undue inflyence (d) document executed outside India Ans. (a) (Ys, 2020) 56, The defence of “non est factum” is available to __ the contracting party who has committed mistake as to the: (2) Nature of contract (b) Identity of the other contracting party (9 Quality of the promise made by the other contracting party (@)_ Quality of the subject matter of the contract Ans. (a) (MP. ys 2011] 57. Consider the following statements: Consent obtained by mistake renders an agreement void if 1. regarding value of the subject matter of the contract. 2. a mistake of fact by both the parties to the contract. 3. amistake of law in force in India. 4, a mistake of foreign law by one party to the contract. ‘Which of the statements given above is/are correct? (@) 1,3and4 (b) Zonly ( 1and4,only (@) 2and3 ‘Ans. (b) [UPSC CS 2006] ‘The nature of an agreement made under the 58. provisions of Section 20 of the Indian Contract 63, ‘Act would be : (@) Valid (b) Invalid (© Void (a) Voidable ‘Ans: (€) [s, 2020] Indian Contract Aa, 1872 59. A agrees to sell to B a specific cargo of goods ‘supposed to be on its way from England to Bombay. It turns out that before the day of the bargain the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts, The agreement is (a) voidable at the option of A (b) voidable at the option of B (©) void (a) valid Ans. (e) (MP. CJ 2019 ()] In order to render a contract void on the ground of mistake, the mistake may be : @) of lw (b) of mixed fact and law (© offactand nota law (@) none of the above Aas. (¢) [HLP. JS 2007-1, M.P. APO 2008] 61. Whatis the position of a contract when it is being caused by mistake of law? (@) Voidable (b) Notvoidable Void (d) legal Ans. (b) [U.P. Cj 2012} 62, Two parties entered into a contract. They later realised that the law as they understood as applicable was not in force in India. This makes their contract : (@) illegal (b) void © voidable (A) None of these Ans. (b) (IMP. CJ 2019 (D] ‘Two parties entered into a contract. They later realized that there was a mistake in their understanding of the law as applicable in India. This makes their contract : (@) Non est (b) Void (0 Voidable (@) None of these ‘Ans. (d) [DJs 2011, BJS 2015] nn ee aT eT rae Samarth Agrawal Books65, Indian Contract Act, 1872 ‘An agreement made to vell not in existence at the time of contract is:~ {@)_voidable at the option of either party (6) avalid agreement (6) avoid agreement (4) an unenforceable agreement Ans. (€) IM.P, APO 2008) ‘A’ and "B’ make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Lis (2) Thecontract is voidable (b) The contract is not voidable {@ The contract is void (a) The contract is void because both parties are under mistake. Ans. (&) JS 2019, MP. Cj 2018 (11) ‘A.contract caused by mistake of law not in force in India: (@ Is void (b) Isvoidable (9. Has the same effect as though it was caused by a mistake of fact (@) None of the above Ans. (c) [DJs 2011] A agrees to sell a horse of worth Rs. 5,000 for Rs. 1,000 to B. A’s consent to the agreement was freely given. The agreement is (2) acontract (b) nota contract for inadequacy of consideration (9 not enforceable (4) against the provision of the Contract Act Aas. (2) [BJs 2016] X, a Delhi merchant & native of Delhi entered into contract with Y, a Jabalpur merchant for the purchase of 50 quintals of Sitaphal. In Delhi Sitapal i a vegetable, while in Jabalpu a (2) The terms of contract are to be interpreted as Per meaning of the proposer (b) The terms of the contract have to be interpreted 4 per the meaning understodd by the acceptor (© The contract is void on account of mutual ‘mistake as to the meaning of sitaphal (4) No concluded contract has come into being as there was no meeting of minds ‘Aas, (6) {HHYs 2011) ‘cargo which was 69. ‘A agrees to pay B Rs, 1,000 ifB will marry to.A's daughter C.'C was dead at the time of the agreement. The agreement is (a) invalid (b) voidable (©) void (d) valid Am [uP.cj2015) 70. A agrees to buy from B a certain horse. It turns ‘out that the horse was dead at the time of bargaing though neither party was aware of the Fact. (a) This agreement is void (b) This agreement is valid for compensation (0) Bither (a) or (b) (d) None of these ‘Ans. (a) [CJs 2019} 71. Aagrees to sell to B the goods which are on their L 2 3. way to Chennai from Oman by a ship. But before the agreement between the parties, the ship had sunk and the goods to be sold to B, were lost. Nei- ther party is aware of this happening. The agree- ment is: (a) Void (b) Voidable (© Valid (@) Enforceable Ans. (a) [GJs 2019} Unlawful consideration and object have been mentioned under which section of the Indian Contract Act, 1872? (2) Under Section 18 (©) Under Section 26 (4) Under Section 23 Ans. (d) [ur.gj2013} An agreement is void if its object or consideration is (@) forbidden by law. (b) of such nature that if permitted, it would defeat the provisions of law or is fraudulent. (© the Court regards it as immoral or against public policy. (b) Under Section 20 (d) All these are correct. Ans. (d) [DJs 2014] legality renders a contract : @) void (b) voidable (©) illegal (d) punishable Ans. (a) [Bihar APO 2013, HJS 2010, KCJ 2012, M.P. APO 2008] Samarth Agrawal BooksAssertion (A): All illegal agreement all void agreements are not illegal Seanad ae Reason (R) : Only those ‘agreements of which object or consideration is unlawful are net illegal agreements, a Select the is seen re correct answer using th code given (2) 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) © Adis true but (R) is false (@) (A)is false but (R) is true ‘Ans. (a) (2) An agreement to kill ‘Z’ between ‘A’ and ‘B’. (b) An agreement between ‘X’, the husband and “Y, the wife that ‘X’ shall marry five times (Q An agreement for sale of future goods (a) An agreement to divide proceeds of crime equally Ans. (c) [DJs 2018] ‘Aagrees to pay B, a teacher, Rs. 15,000ifB passed his son in the examination. B does so but A refuses to pay the money. In this case, which one of the following gives the correct legal position of the agreement? (2) The agreement is valid and enforceable (b) The agseement is void being opposed to public i {Q) The agreement is void because the object is unlawful and forbidden by law (4) The agreement is voidable at the option of B [Bihar APO 2013) Ravi’s estate is sold for arrears of revenue under the provisions of an Act of the Legislature, under which the defaulter is probibited from purchasing the estate. Shyam, upon 2m inderstanding with Ravi, becomes the purchaser sind agrees to convey the estate to Ravi after Ans. (c) ‘Samarth Agrawal Books Indian Contra da, 1872 receiving the purchase price paid from him. Decide: (@) The agreement is valid and enforceable as both the consideration and object are lawful (b) The agreement is void as it renders the transaction in effect, a purchase by the defaulter and would so defeat the object of the law (0. The aggéement is immoral and hence, void (d). The agreement is voidable at the option of Ravi or Shyam ‘Ans. (b) (HP. Js 2019] Bis wife of A. A during lifetime of B and with her consent makes an agreement with C to marry her. The agreement is : (@ void (b) voidable (9 valid (a) None of the above Ans. (a) Ds 2014] “A” promises to obtain for “B” an employment in the public service and “B” promises to pay Rs, 1000 to “A”. The agreement is (3) Legal (b) Can be enforced at the option of the parties (© Void (@)_ None of the above Ans. (©) [UP.C)2012, MP. C}2009, AP.JS2011] ‘Which contract is void ab initio? (2) Acontracts to let her daughter on hire to B for coneubinage. (b) While entering into contract to see a cow, a disclosed B that the cow gives five liters milk in a day whereas it gives four liters in aday (@) Atthe time of contract of selling acar, A told B that mileage ofthe car is 20 km per litre whereas its mileage is 18 km per litre, At the time of contract, A told B that the area of his house is 1400 sq. feet but on measurement the area of the house is found 1398 sq. feet Ass. (a) pmp.js.2011] @)4 Indian Contract Ac, 1872 X promises Y to drop a prosecution which he has instituted against Y for robbery and Y Promises to restore the value of the things taken. Which one of the following is the correct answer? (a) The agreement is a contract (b) The agreement is immoral (0 The agreement is void as it is in restraint of legal proceedings (d)_ The agreement is void as its object is unlawful Ans. (d) [M-P. HJS 2015, U.P. Cj 2018, MP. CJ 2019] A frand has been discovered by a party in a ‘contract and lodged a criminal case, afterwards that the parties agreed to withdraw the case as ‘only compensate the disadvantageous party such contract is (@) Void as against public policy (b) egal (© Voidable (d) Valid Ans. (a) [DJs 2008] ‘Contract forbidden by law are: @) valid (b) void (© itegal (d) Both (b) and (c) Aas. (4) [PJs 2012) Ajay grants a lease of a premises to Vijay for one Year ata monthly rent of Rs. 5,000 knowing that ‘the premises will be used for prostitution, This lease is: () Valid (b) Void (© Voidable (4) None of these Ans. (b) [M.P. APO 2009} a agrees to pay Rs, 1,000 to ‘B’ for evidence in a civil suit. The contract (@) valid and enforceable at law (b) void, being opposed to public Policy (©) _voidable at the option of A (4) illegal Ans. (b) IMP. APO 2008) 16 An agreement to share the benefits of a public office is: (®) valid (b) voidable (9 wid (4) none of these ‘Ans. (c) IMP. APO 2008} 17. Which one of the following statements is correct : (2), Void agreements are always illegal (b) legal agreements are voidable ” ()Mlegal agreements can be void (4) Megal agreements are always void Ans. (d) IMP. APO 2008] IR Every agreement, of which the object or consideration is unlawful, is: (@) void (b) voidable (0 illegal (@) unfair An [os 201] | Consideration & Object unlawful in part If only a part of the consideration or object is unlawful, the contract under Section 24 shall be @ valid (b) voidable © void (A) illegal ‘Ans. (c) [4Js 2011, Dys 2011) 2 Under Section 24 of Indian Contract Act which one of the following agreements is void? (2) Ifcaused by fraud () If caused by coercion (©) Ifconsideration is unlawful (4) None of the above Ans. (c) [cJs, 2020) 3 A,a married woman, agreed to live in adultery with B and also agreed to serve him as his house keeper. In return, B agreed to pay A Rs. 500 per month for living in adultery and Rs. $00 per ‘month for house keeping. The agreement is (@) valid (6) void (© void as tothe first object but valid with respect to the second object (4) unlawful being opposed to public policy ‘Ans. (c) {UPSC Cs 2009} 566 Samarth Agrawal Books‘An agreement made without consideration ix (@) void (b) voidable (illegal (@) valid Ans. (a) UHYs 2008, ways 2011, M.P.C} 2011, BJS 2009, 2020, Bihar APO 2013} ‘Which of the following statement is incorrect ? (@) An agreement made without consideration is void irrespective ofthe circumstances, (b) Every agreement in restraint of marriage of any person, other than minor, is void. (©) Every agreement by which anyone is restrained from exercising a lawful profession, the meaning of any kind, isto that extent void. (a) Agreements, the meaning of which is not ‘certain or capable of being made certain, are void. Ans. (a) IRJS 2019} An agreement entered into with free consent and lawful but with inadequate consideration is (@) unlawful (b) lawful (© wid (@) voidable Ans. (b) [UP. Cj 2015) ‘A agrees to let her daughter to hire to B for concubinage. The agreement is : (®) Valid (b) Moral (0 Void because it is immoral (4) Ifdaughter is major then agreement is valid Ans. (6) [CJs 2003] Nudum Pactum means (@)_ without consideration (b) invalid contract (© void contract (@) voidable contract Ans. ( [ur.cj2015) A promise to pay wholly or in part a debt of which the creditor might have enforced payment, ‘but for the law for the limitation of suits is contract: (2) ifitis made in writing only (b)_ifitis made in writing and registered under the {aw forthe time being in force is made in writing and signed by the person tobe charged therewith (d) even if made orally @ consideration. This agreement is (a) voidable (b) void (Q notenforceable (d) notenforceableas it was unwritten ‘Ans. (b) [BJS 2013, M.P. CJ 1998, CJS 2004] Which one of the following statements is correct? (@) Anagreementis void unless itis duly supported by adequate consideration (b) Inavalid contract, there can be an oral promise to compensate a person who has already ‘voluntarily done something for the promisor (0 Under Indian Law, consideration need not move atthe desire ofthe promisor (@ Indian Law does not recognize past consideration Ans. (b) [UPSC.CS 2010] Under Indian Contract Act, which of the following contracts is not a valid contract? (2). Bya written registered document A promises to give Rs. $000 to B for natural love and affection (b) Byanoral agreement B agrees to pay time barred debt of A (© Avent on a pilgrimage, B paid his electricity bills A agrees to pay back the amount paid by B tohim (@)_ A supports B's infant son, B promises to pay Ais expenses in s0 doing Aas. (b) [M.P. CJ 2013.01) ee ‘Samarth Agrawal Books seIndian Contract Act, 1872 A, for natural love and affection, promises to sive his son, B, Rs. 1,000. A puts his promise to B in writing and registers it. This is a (@) Contract (b) Voidable contract (9 Void contract (4) None of the above Ans. (2) [CJS 2019, U.P. CJ 2015) A without the request of anybody extinguishes the fire of B’s godown. A suffers injury thereby. B promises to compensate A for the whole amount be has spent for his treatment. The contract is (@) unenforceable (b) void (© voidable (d) enforceable Ans. (d) UC 2000) A promise to pay a debt barred by the law of limitation, has been made enforceable under which section of the Indian Contract Act? (a) Section 32 (b) Section 47 (© Secon 25 (@) Section 8 Ans. (<) [UP.652013] ‘Which one of the following is a contract? (©) Anagreement to do a lawful act by an unlawful means (©) An undertaking in writing duly signed to pay the time-barred debt (9 An agreement in restraint of a lawful trade (@) An agreement to pay Rs. 10,000 without consideration Ans. (b) cy 2000) Assertion (A): Agreement without consideration is void, Reason (R) : Consideration may be given by Promisee or any other person, ® A) and (R) both are true and (R) is correct ‘explanation of (A) (b) (A) and (R) both are true, but i the conect explanation of (a) aR om (© (A)is true, but (R) is faze (A) (A)is false, but (R) is true 15, v7 vw, Ex undo pacto non oritur actio, means: (a) A stranger to the contract cannot sue (b) An agreement without consideration is void () An agreement based on natural love and affections (d) Allthe above Ans. (b) [H.P. JS 2007-1, UPSC CS 2009) Which of the following agreements is not void? (a) ‘A’ agrees to sell two hundred tons of oil to 'B? (b) An agreement in restraint of legal proceedings, (©) An agreement if restraint of marriage of any person (d) A finds B’s purse and gives in to him. B Promises to give ‘A’ Rs, 100 Ans. (d) [U.P. CJ 2003] A promise to pay time barred debt is: (2) Notenforceable (b) Enforceable at the discretion of debtor (© Enforceable (4) None of the above Ans. (c) _ [M.P. HJS 2015, M.P..CJ2019 (I) Contract without consideration is void subject to the following exception @)_ if itis between two brothers (©) ifiit is between father and son © ifitis between husband and wife (4) if itis between by way of love and affection ‘Ans. (d) (MP. Hys 2009} Which of the statements given below is/are correct? 1 An agreement, without consideration, in writing and registered, made on account of natural love and affection between parties Standing in a near relation, is a valid contract, 2 Ifany part ofa single consideration for one oF more objects, is unlawful, the agreement is a voidable contract, @ only (b) 2only (©) both 1 and2 (d) neither 1 nor2 Ans. (b) (UP. cy 2013) ‘Ans. (a) [M.P. HS 2011) Samarth Agrawal BooksIndian Contract Aa, 1872 Consider the following statements and poi, which of them is conrec Piatont 1. An Agreement madk iderati ans ‘made without consideration is 2, Consideration should have some val eyes of the law, ona 3. Consideration has to be adequate. Which of the statements given above is/are correct? (@) 1,2and3 (b) Lands © 3only (@) Land? Ans. (4) [UPSC Cs 2008, ‘UP.CJ2015, HADA 2016] Inadequacy of consideration is relevant in determining the question of : (@) fraud (b)_misrepresentation (Q undueinfluence _(d) free consent ‘Ans. (d) [MP. CJ 2018 (1), H.P. JS 2013, Dys 2014) A sees that the child of B is drowning in the water. A saves the child from drowning in the water. B promises to give him Rs. 25,000. In this context, which one of the following propositions is correct? (2) Bis liable because the agreement is not nudum pactum (b) B'sliability arises in quasi-contract (Q. Bisnot liable as there is no contract (4) Bisliability is statutory Aas. (2) [Bihar APO 2013] Statement I: An agreement to which the consent of the promisor is frely given is not void merely because the consideration is inadequate. ‘Statement Il: Inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given. Choose the correct option + (a) OnlyTis true (b) Only is true (©). Both the statements are true (4) Both the statements are false Ans. (c) [HLP. JS 2019) ‘Samarth Agrawal Books 24. The inadequacy of consideration will be taken into account by a court of law : (a) when the promisor expresses his desire to get ‘maximum return for his promise (b) when the promisor performs his promise (9. when fraud, coercion or undue influence i the formation of the contract is pleaded (4) always at the discretion of the court ‘Ans. (c) [PJs 2010] 25. A.owes B Rs, 1000/- but the debe is barred by the Limitation Act. A signsa written promise to pay B Rs 500/- on account of debt. (2) Thisisnotacontract(b) This is acontract (9 Either (@) or(6) (4) None of these Ans. (b) [js 2019} 26. Themother owes Rs. 10,000 to her daughter. But the Limitation Act has barred this debt. The mother signs a written promise to pay Rs. 3,000 on account of the debt. In this cate which one of (@) Thereisno contracts the debts already bared by limitation and so it cannot be revived by 2 subsequent promise. There is no contract because the mother has promised to give only a part ofthe debt. (© Thisis contract because there is a natural love and affection relation and the promise is in ‘writing and signed. ‘This is enforceable against the mother because such a promise is valid and binding under the Indian Contract Act. ‘Ans. (4) [DJs 2010) [Agreement in restraint of marriage 1 Anagreement in restraint of marriage is : (b) (@) (@) valid (©) illegal (void (@) voidable Aas. (c) 09S 2019, Bys 2016, 2013, WBHJS 2014, M.P. Cj 2015, 2009, 2001, 2021, ‘Raj HJS 2012, RCJ 2014, M.P. APO 2009, CJS 2004, PJS 2012, A.P. JS 2012]Indian Contract Act, 1872 2, Amagreement to remain unmarried is : (@) Valid (b) Void (0 Voidable (d)Unenforceable Ans. (b) [M.P. CJ 2018 (L1)) 3. Acnters into contract with B to marry her, Can this contract be specifically enforced? (@) Yes () No (With the help of court, yes (€) None of the above Ans. (b) [BJS 2009] LAnagreement in restraint of trade under Section 27 of the Indian Contract Act, 1872 is @) valid (b) voidable © void (@) enforceable Ans. (c) [UP.C)2012, MP. APO 2008, Dys 2011] 2 Under Section 27 of the Indian Contract Act, 1872 in which of the following relation an ‘agreement in restraint of trade is valid : @) Mutual adjustment (b) Business contingency © Sale of goodwill (4) None of these Aas. (c) [Hs 2014) 3 "Prawholesale dealer in sugar, sells sugar to “Q! with acondition that ‘Q shall not sell the sugar beyond one kilometer of ‘ Hakone of ‘P's godown, The (@) valid (©) without free consent (©. in restraint of trade and thus void (4) voidable atthe option of», Ans(9 (ys 2014) 4 Which of the following is not an agreement in restraint of trade? Iu Asells the goodwill of his business with an agreement not to carry on a similar business within specified local limits, so long as the buyer carries on a similar business. 11, Asells the goodwill of his business with an agreement not to carry on a similar business within India, so long as the buyer carries on a similar business. Assells the goodwill of his business with an agreement not to practice the same trade for 25 years. IV. Asells the goodwill of his business with an agreement not to engage in any business competing or liable to compete in any way with the business for the time being carried on by the buyer. () 1, Mand IV (b) 11, Wand IV (© Wand Iv (4) Land HI Ans. (d) [DJs 2010} Which Section of the Indian Contract Act, 1872, deals with agreements in restraint of legal proceedings? (2) Section 27 (b) Section 28 (© Section 23 (4) Section 29 ‘Ans. (b) (HLP. JS 2007-11] ‘The Indian Contract (Amendment) Act, 1997 has amended : (@) Section 26 of the Indian Contract Act (b) Section 27 of the Indian Contract Act (© Section 28 of the Indian Contract Act (d) Section 75 of the Indian Contract Act Ans, (c) [BJs 2020, U.P. ‘CJ 2018) Under Section 28 of the Indian Contract Act, 1872 an agreement not to pursue any legal remedy to enforce the right is : (a) Valid © Void (b) Voidable (d)_Unenforceable Ans, (c) [PJS 2011, HyS 2012] 570 Samarth Agrawal Books5 6 Indian Contract Ac, 1872 Section 28 of the Indian Contract Act decla res 2. as void agreement : (@) inrestraint of marriage (b) inrestraint of legal proceedings (0 inrestraint of trade (a) none of the above ‘Ans. (b) parkics by Wer Consentagkeeined [U.P. HYS 2012) tar {@)_ can confer jurisdiction on acourt where thereis none in law (&) can oust the jurisdiction of a court when there isonein law (can oust the jurisdiction of one of the courts when there are two courts having simultaneous jurisdiction in law (@) allof the above Aas. (©) (UP. HS 2012] ‘An agreement not to raise the plea of limitation is: (@) valid and binding (b) woidable (9 void (@) illegal ‘Ans. (0 [HLP. JS 2009] ‘An agreement not to pursue legal remedies but 1 rhe dapat tote abiteator under Seon 28 of the Indian Contract Act is (a) voidable (b) void @ valid (@) unenforceable (HP. JS 2015] @ % © 2B ) ‘Which one of the following statements is true under Indian Contract Act, 1872? (2) Intimation of minimum price is proposal. (b) Anagreement against public policy is voidable (©) An agreement, the meaning of which is not certain is void (a), Wopet contractaage legal (0) ‘None of these“ ‘Ans. (¢) [Pys 2017] ‘Agreement, the meaning of which is not certain or not capable of certainty, is (2) voidable () ile (enforceable (d) void Ans. (d) [MP. CJ 1998, BjS2013, RyS 2010, CJS 2014, AJS 2012] «pt agrees to sell to ‘BY a hundred tons of of. ‘There is nothing whatever to show what ind of oil was intended. The agreement is = (a) Voidable (b) Void (9 Enforceable (a) Nonenforceable ‘Ans. (b) [MP. CJ 2007] ‘Av who deals only in coconut oil, enters into 28 agreement with B to sell 50 tons of oil. The agreement is (@) enforceable by aw (b) void due to uncertainty (©) voidable due to uncertainty (a) None of the above Ans. (a) [HLP.JS 2019, JS 2014] 7 Ee 3 i i Ta Indian Law, a wagering contract is (@) treated as voidable (b) treated as void (6). treated against public policy (@) treated as valid ‘Ans. (b) {BJS 2016, 2020, U.P. CJ 2006, 2018, ‘AJS2011, MP, APO 2008, HS 2012] 571 Samarth Agrawal Books3 L 2 Indian Contract A, 1872 ‘Am agreement in connection with horse racing under Section 30 is : (2) unlawful (b) voidable © void (a) valid ‘Ans. (d) [BS 2013] In Carlil v. Carbolic Smoke Ball Go. the definition of "Wagering Agreement” was given by: (a) Justice Bowen (b) Justice Hawkins (Q Lord Denning (4) Lord Selbome Ans. (6) [H.P,Js 2011) Under Indian Contract Act, contract of betting (a), Voidable (&) Against the law © Void (@) Void and against the law Ans. (0) (MP. C) 2013-11] Which of the following is/are involved in wagering agreement? 1 Anuncertain event. Parties have no control over the event. 3. Except the stake parties have no other interest in the event. Select the correct answer using the code given below : w (@ only (&) tand2 (Q 2and3 (d) 1,2and3 Ans. (d) [UPSC CS 2009] Miscellaneous ‘Out of the following agreements which one is not void? (@) Agreement with handicapped person (©) Agreement to restrain a marriage (© Wagering agreement (@) Agreement without consideration ‘Ans (a) (MP, CJ 2012) Which of the following agreement(s) is/are 1 Agreement without consideration 2 Agreement in restraint of legal Proceedis 3. Agreement effected by fraud me (@) 3only (6) 2only (© 1,2and3 @ tand2 Ans. (d) 3 4 AAI illegal contracts are void but all void. contracts are not : (a) Legal (b) Mlegal (©) Enforceable (a) Voidable 3 Ans. (b) [M.P. CJ 2007) ‘Acontract may be vitiated by (i) fraud (ii) mistake (ii) frustration (iv) undue-influence (a) Only i)iscorrect (b)_ Only (i) & (i) are correct (9 Only (i), (i), (ii) are correct (4) Allarecorrect Ans. (d) (H.P_JS 2015] Consider the following statements with regard to law of contract : 1 Presence of consideration is essential but the same should be adequate. 2 Inadequacy of consideration may be considered as evidence for the presence of undue influence. Which of the statements given above is/are correct? (2) only (b) 2only (© Both 1 and2 (a) Neither 1 nor2 Ans. (b) [UPSC CS 2009} As per Contract Act, 1872, Match List I with List II and select the correct answer by using the codes given below the lists : List I List (2) Mistake of Law (Section 13, (b) Consent (i) Section 21 (0 Undue Influence (ii) Section 15 (4) Coercion (iv) Section 16 Code: Beech Bain 1Ger vn D Ow W@W @) iw (b) (i) @i) Ow) Gi) @ @ (@) Gi) @ (iv) Gi) LUPSC CS 2008, Hs 2010) Ans (4) [HLP. Js 2019) hc mmninaeee ie |Contingent contract is defined in (a) Seaion 43 of the Indian Contract Act, 1872 ) Sesion 46 of the Indian Contract Act, 1872 (©) Section 37 of the Indian Contract Act, 1872 (4) None of the above Ans. (d) {CJS 2014, ways 2011) 2, Acontingent contract is: (@) dependent ot conditional upon the happening ‘or non-happening of a future event or ‘contingency (0) dependent or conditional upon the happening ofa future event or contingency (9 independent or unconditional contract (€) none of the above ‘Ans. (a) [1S 2013, MP. APO 2008] 3. A‘Contingent contract’ isa contract @). Todo something, if some event, collateral to such contract, does happen (b) To do something, if some event, does happen (6) Todo or not to do something, if some event, collateral to such contract, does or does not happen (€) Noto do something, ifsome event, collateral to such contract, does or does not happen Ans. (©) [Ms 2011] 4 ‘Which one of the following is a contingent contract? (@) ‘A’ insures his factory against damage or destruction by fire (b) ‘A’ sells his property subject tothe condition that the property will be reconvened to him on repayment of price with interest (0. A guard is appointed at a swimming pool for the sole purpose of rescuing drowning persons (a) A borrower solemnly promises to pay off the lender when the borrower will bein funds Ans. (a) [PJs 2010] A contract of life insurance is « (a) Contingent contract, (b). Wagering contract (©) Contract of indemnity (d) Contract of guarantee ‘Ans. (a) [M.P. JS 2010, 2015, A.P. JS 2011, MP. C} 2009, U.P. CJ 2012, 2015] ‘Anu enters into a contract with Manu to pay him Rs. 1,000 if India wins the world cup. Itis a: (@)_ Contingent Contract (b) Wagering Agreement (© Social Contract (@) Voidable Contract Ans. (a) [Mp. APO 2005] “A” enters into a contract with B’ to buy his colour ‘LV, provided be obtains bank loan. This contract is called: (@) valid contract (b) Contingent contract, (9) Voidable contract (4) None of these Ans. (b) [HLP. JS 2007-1, MP. Cj 2014] ‘Which one of the following facts constitutes a Contingent Contract? (a) Acontracts to pay B Rs. 10,000 if B’s house is burnt (b) Wheres salt lake was offered by way oflese on deposit ofa sum of money within a specified period (Acceptance of a tender for up to 1000 tons of coal to be supplied as and when any order is placed during the financial year (a) When a bank offers a locker to its customer ‘subject to the condition that the customer makes «fixed deposit of rupees one ac with the bank before the end of the month Ans. (a) [uPsc cs 2010) ‘Samarth Agrawal Books 573Indian Contract Adt, 1872 A contracts to pay B Rs.’ 10,000 if B's house is burnt, What type of contract is this? (@) Wagering contract (b). Unlawful contract (0 Contingent contract (4) Voidable contract ‘Ans. (©) 1G} 2019, OFS 2011, U.P. CJ 2015, MJS 2010] ‘A contingent contract dependent on the happening of uncertain event in the future can be enforced when the event (@) happens (b) becomes impossible (© does not happen (a) none of the above is correct, ‘Ans. (a) [U.P.C) 2003, 2013, M.P. HS 2014] A contingent contract based on the specified ‘uncertain event not happening within a fixed time (2) can be enforced if the event does not happen within the fixed time (b) cannot be enforced at al, being void (@ can be enforced if before the expiry of fixed time it becomes certain that such an event shall not happen (@) Both (a) and (c) Ans. (4) [PJS 2000) Crossword competition is (2) wagering agreement (b) contingent contract (© illegal agreement —(d) valid agreement Ans. (b) [RJS 2011) Contingent agreements to do or not to do ‘anything, if an impossible event happens : (a) are void if the impossibility of the event is known to the partes at the time when itis made (b) arevoid if the impossibility of the eventis not known to the parties to agreement at the time when it is made (9 arevoid, whether the impossibility of the event is known or not to the parties tothe agreement at the time when it is made @ are voidable at the option of the pasties Ans. (c) {CJS 2016) eee a.sum of Rs, 10,000 when marries ‘C’. i B mavies This ta tpe of unde Indian (@) Contingent contract (b) Vested contract (0) legal contract (a) Voidable contract (b) Wagering Contract (¢) None of these a ‘Ans. (a)! (P)s 2017), ‘A.agrees to pay ‘B’ a sum of money, if 'B" marries _ ‘QC marries ‘D’, The agreement is + (a) Void (b)_ Voidable (©) Legal (d) Megat a ‘Ans. (a) IM.P. C) 2007, Ifa future event on which a contract is contingent is the way in which « person will act at an ‘unspecified time, the event shall be considered to become impossible: (a) When such person does anything renders i¢ impossible that he should so act within any definite time (b) Otherwise than under further contingencies (0) Both (a) & (b) above (4) None of the above Ans. (c) [Djs 2011} In which of the following cases, a contingent becomes void: (a) Ifthe contract contemplates the happening of the event within a certain time, and event does not happen or its happening becomes impossible (b) Ifthe performance is made to depend upon an event which is already impossible (9) Ifthe event contemplated does not happen (d)_ Both (a) & (b) above Ans. (d) [ys 2011) Match the List-l with List-II and select the correct answer with the help of codes given below: List-I List-II (@) Contingent Contract (i) Section 30, Contract Act (ii) Section 25, Contract Act (©) Restraint from trade (ji) Section 31, Contract, Act or business (d) Agreement without (iv) Section 27, Contract, Act consideration Codes : @ &) @ @) @ @ Gy) Gi) (b) Gil) (iv) Gi) © @ Gi) (iv) Gi ) dv) @) Gil) Gi) ‘Ans, (b) [HLP. JS 2013] Samarth Agrawal Booksree na © fede of performance be (a) Section 37 of the Indian Contract Act, 1872 (b) Section 38 of the Indian Contract Act, 1872 (©) Section 36 of the Indian Contract Act, 1872 (2). By performance ofthe contract (8) By frustration ofthe contract (0) Both () and (6) (a) Neither (4) nor (b) (4) Section 35 of the Indian Contract Act, 1872 Ans. (c) (HP. JS 2007-11) Ans. (a) TH. JS 2007.11, 2013] 7 A promises to paint a picture for B by « certain I p pai . le On the valid performance of the contractual day at a certain price. A dies before ee i obligations by the parties, the contract : (4) The agreement does not lapse and can firmed by or against the legal representatives (@) Isdischarged __(b)_ Becomes enforceable Ear 9 of A. (@ Becomes void (4) None of these ime ciel os oon Ans. (a) [BJs 2009) of A’s legal representatives.” ‘When the promisor offers to perform his (9. Theagreement lapses for both the parties. obligation to the promises, it is called : (@) Theagreement becomes unlawful (@)_ novation Ans. (¢) [DJs 2010] (b) tender of performance 8 ‘A promises to deliver goods t ‘Bom = cena performan day ata certain time on the payment of Rs. 1000/ ee : ~'A! dies before that day- @ bok Gomi (@) thecontractis void Aas. (@) (HEJS 2015] (4) A's representatives are not bound to deliver the In which of the following instances has the goods to B discharge of agreement not been effected? (© Bisnot bound to pay Rs. 1000/-to A's represen- (2) Apromises to paint picture for B.B afterwards tatives forbid him to do so (4) A'srepresentatives are bound to deliver the goods (b) A comes B Rs. 5,000. C pays to B Rs. 1,000, to B. And B is bound to pay Rs. 1000/- to the ‘which B accepts in satisfaction of his claim representatives of 'A'. against A Ans. (d) IMP. Cj 2019 (I) ssalofBto nish the paintingforB 9, ‘A’ enters into a contract with ‘B’ to sing at his Aaa eres we e theatre two nights in every week during the next (4) A owes B Rs. 2,000 and is also indebiel 1D ‘two months and 'B’ engages to pay her at rate of other creditors, A makes an arrangement wit % Rs. 1,000 for each night. ‘A’ willfully absents his creditors, including Bo pay them, halfo herself on the sixth night but with the assent of the loan amount. A pays to BRs. 1,000 ‘a’ sings on the seventh night B’: ‘Ans. (0) {NCJ 2000] (@) Can put an end to the Contract ‘A’ promises to paint a picture fr ‘B” within 10 (b) Cannot put an end to the Contract days at a price of Rs. 3,000. ‘A’ dies before the (©). Isnot liable to pay for five nights on which A day. The contract is: had sung. (@) Enforceable (b) Nomenforceable (@) Is not entitled to compensation for damage (Q) Voidable (a) Void sustained by him on the sixth night ‘Ans. (b) [M2P. C) 2001, 2007] ‘Ans. (b) [M.P. CJ 1996] Se Samarth Agrawal Books ‘S15Indian Contract Aa, 1872 10. A.contracts to sing for B at « concert for 1,000 rrupees which are paid in advance. A is too ill 10 sing: (2) Ais bound only to make compensation to B for the loss ofthe profits which B would have ade if A had been able to sing but not bound to refund 1,000 paid in advance (b) Ainneither bound to refund 1,000 rupees pad in advance nor is bound to make compensation 108 for the loss of profits which B would have made if A bad been able to sing (9. Aisnot bound to make compensation to B for the los of profits which he would have made {fA had been able to sing, but must refund to 'BRs 1,000 rupees paid in advance (4) Aisnot bound to make compensation to B for the oss of profits which B would have made if ‘Ahad been able to sing but must refund to B half of the amount paid in advance Ans. (0) [MP.CJ 2001, 2007, DJs 2014] ILA promises to deliver goods to B on a certain ‘day on payment by B. A dies before that day: (a) checontract becomes void (©) the contract becomes impossible (9 the contract can be enforced against A’s representative (@) the contract is voidable at the option of A's legal representative ‘Aas. (6) [M.P. APO 2008] 12 Indian Contract Act- If « promisce accepts the anticipatory breach by promisor then (@) the promisee need not perform his part of contract but-not entitled to claim damages from promisor (b) the promisee need not perform his part of contract, ‘but entitled to claim damages from promisor only after the date of performance (© the promise ned ot perform his part of contract but entitled to claim damages from promissory without waiting til the date of performance (€) the promisee must perform his part of contrat before claiming damages Ans. (c) IMP. Cj, 2021) a When prior 10 the due date of performance, the promisor absolutely refuses 10 perform the ‘contract, Its known #9 (a) Abandonment of contract (b) Actual breach of contract (6 Remission of contract (i) Anticipatory breach of contract ‘Ans. (d) (0982011, 2008) ‘The ease of Hochenter v, De La Tour dealer (a) Contract (b) Doctrine of promissory enoppel (0) Anticipatory breach of contract. (A) Quantummerit Rs. 1,000 as advance. ‘A’ is too ill to ving, here: (a) ‘A’is bound to sing bound to compensate 'B' for loss, is bound to return the amount of advance. (4) None of the above. ‘Ans. (c) fUP.G 213} ‘The case Frost v. Knight, (1872) LR 7 Bx 111, related (2) anticipatory breach of contract (b) frustration of contract (0) remission of performance of contract (4) discharge of contract by agreement ‘Ans. (a) [HLP. Js 2012) Section 40 of Indian Contract Act deals : (2) About persons by whom promise is to be performed (b) About compensation on non performance of promise (9 About voidability of agreement (d) About legality of contract Ans. (0) [gs 2014} enna 1872 deals i! (4) Effect of accepting performance from third person (b) Person by whom promise is to be performed (Tender to perform a promise (4) Effect of refusal of party to perform promise wholly ‘Ans. (a) [HLP. Js 2012] Samarth Agrawal Books% In case of joint promise, g Indian Contract Aa, 1872 jenerally the 24, Under Indian Contract Aet, 1872, ifthe time is performance must be by (a) All the promisors jointly (b) Any one of them individually oO eee promisor with the consent of the (d)_ None of the above Ans. (a) (HL. JS 2007-11) A,B and C jointly promise to pay ‘D’ a sum of Rs. 3,000. A & B are untraceable. Is ‘Cis liable to pay? (@) ‘Cliable to pay ‘D’in fall (b) ‘Clliable to pay D'in part (© Liability of C’does not arise (@)_ None of these Ans. (a) (HLP. JS 2007-1] Time of performance of contract is provided ‘under the following Section under the Indian Contract Act, 1872: (@) Section 52 (b) Section 53 (9 Section 54 (@) Section 55 Ans. (d) ‘Where no application is (HP. Js 2019] made and no time is (b) Two years (. Oneyear (d) Reasonable time Ans. (d) Reasonable time for performance © is a question: (@) of fact (b) of law (@. mixed question of fact and law (d)_ of prudence ‘Ans. (a) [M.P. Cj 1998] fa contract essence of a contract and the fails to perform the contract by the specified time, the contract: (a) becomes void (b) remains valid () becomes voidable at the insta promisee (4) becomes unenforceable (¢) None of these Ans. (c) ince of the [PIS 2017, DJS 2014, 2019, HP. J8 2007, KCJ 2012, M-P. CJ 2015} Which one of the following contracts has time as the essence of the contract + (a) ‘A’contracts with ‘B for the sale of his property () ‘A’contract to marry‘B’ atthe exist (0 ‘A’ contracts to send money t0 B for Bs sustenance in Eng (4) ‘contracts to buy B's house for immediate occupation Ans. (d) [MP. HJS 2010] Ina contract in which time is not essence of the contract, the failure to perform the contract before specified time: (@) Contract wil become void. (b) ‘The Promise is entitled vo compensation fom the promisor for any loss occasioned to him by such flue (0) Contract wll become voidableat the option of the promisor (4) Contract will become voidable atthe option of the promisee Ans. (b) ‘A contract not specifying the pl performance + (a) Canbe performed at anyplace tothe knowledge of the promise (b) The promisor need not seek any instruction from the promisee as to the place of ped (©). The promisor has to apply to the promise for appointment of a place of performance and perform the promise at that place (4) The promisor can perform the promise at 2 place other than the place appointed by the promise ‘Ans. (c) IMP. Gj 2018 (1)] lace of [Pys 2011]RB 3h. Indian Contract Ac, 1872 romises 32. The principle of | Where the order in which reciprocal p are to be performed is expressly fixed by the contract, they shall be performed in that order, and where the order is not expressly Fixed it shall be performed : {a)_ In that order which t require (b) Inthe onder as one of the parties prefer ihe nature of transaction (0) Asdesired by the proposal (a) None of the above Ans. (@) IM.P. G) 2009]

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