INDIAN CONTRACT ACT

Note: Time Allotted for Both MCQ and Essay type is 120 mins Candidates are allowed to carry Bare-act only. The
answer Scripts to be submitted along with Name mentioned.

1. As per Section 58 of the Indian Contract Act, 1872, in the case of an

alternative promise, one branch of which is legal and the other
illegal
a. Both the branches will be enforceable.
b. Both the branches will be unenforceable.
c. The legal branch alone can be enforceable.
d. None of the above.

2. As per Section 29 of the Indian Contract Act, 1872, agreements, the

meaning of which is not certain, or capable of being made certain,
are
a. Voidable.
b. Illegal.
c. Void.
d. Enforceable.
3. A' leased out his immovable property to 'B' for manufacturing the
spare parts of tractor. In the absence of any contract or local law or
usage to the contrary, said lease is terminable by giving notice.

a. 15 days
b. 30 days.
c. Six months.
d. One year
4. As per Section 142 of the Indian Contract Act 1872, a guarantee
obtained by misrepresentation made by the creditor, is
a. Void.
b. Voidable
c. Valid.
d. Invalid.
 5. Which one of the following is correct combination as per the Indian
Contract Act, 1872?
a. Section 13- Consent.
b. Section 14- Coercion.
c. Section 15- Undue Influence.
d. Section 16- Fraud.
6. Which Section of the Indian Contract Act 1872 says that every
agreement in restraint of the marriage of any person, other than a
minor, is void?
a. Sec.29.
b. Sec.28.
c. Sec.27.
d. Sec.26.
7. The "Consensus ad idem" means:
a. To agree in the same way.
b. No agreement can have more than one meaning.
c. To agree for different objects in the same sense
d. Meeting of minds of all the parties to the contract
8. Under Section 146 of the Indian Contract Act 1872, in the absence
of any contract to the contrary, co-sureties are liable to contribute:
a. Equally.
b. According to capacity.
c. Unequally.
d. Either A or B or C
9. 'A' contracts to pay B' a sum of money when B' marries 'C'. 'C' dies
without - being married to B". Therefore, said contract becomes
a. void.
b. voidable.
c. either void or voidable.
d. unlawful.

10. Which Section of the Indian Contract Act, 1872 states that the
agreement in restraint of legal proceedings, is void?
a. Sec.26.
b. Sec.27.
c. Sec.28.
d. Sec.29
11. A guarantee obtained by misrepresentation is as per Section 142 of
the Indian Contract Act
a. illegal
 b. invalid
c. void
d. voidable
12. A proposal when accepted, becomes
a. A promise under Section 2(b) of the Indian Contract Act, 1872
b. An agreement under Section 2(e) of the Indian Contract Act, 1872
c. A contract under Section 2(h) of the Indian Contract Act, 1872
d. None of the above
13. An acceptance may be revoked in terms of Section 5 of the Indian
Contract Act, 1872.
a. At any time at the option of the acceptor
b. After the acceptance comes to the knowledge of the promise
c. At any time before the communication of the acceptance is
complete as against the acceptor, but not afterwards
d. All the above
14. An acceptance may be revoked in terms of Section 5 of the Indian
Contract Act, 1872
a. At any time at the option of the acceptor
b. After the acceptance comes to the knowledge of the promisee
c. At any time before the communication of the acceptance is
complete as against the acceptor, but not afterwards
d. All the above
15. As per Section 2(e) of the Indian'. Contract Act, 1872, every
promise and every set of promises, forming the consideration for each
other
a. Is reciprocal promise
b. Is a contract
c. Is an agreement
d. None of the above
16. Under Section 162 of the Indian Contract Act, 1872, a gratuitous
bailment is terminated

a. By the death either of the bailor or of the bailee

b. By the death of bailor and bailee
c. For non-delivery of goods
d. None of the above

17. A 'Contingent Contract is a contract

a. To do something, if some event, collateral to such contract, does
happen
 b. To do something, if some event, does happen
c. To do or not to do something, if some event, collateral to such
contract, does or does not happen
d. Not to do something, if some event, collateral to such contract,
does or does not happen
18. Under Section 19 of the Indian Contract Act, 1872, when consent to
an agreement is caused by coercion, the agreement is
a. Valid
b. Voidable
c. Void
d. Illegal
19. As per Section 186 of the Indian Contract Act, 1872, the authority
of an agent
a. May be expressed or implied
b. May be expressed only
c. Shall be in writing
d. None of the above
20. Under Section 20 of the Indian Contract Act, 1872, an agreement is
void
a. On account of mistake as to matter of fact by one party
b. On account of mistake as to matter of fact by both the parties
c. On account of mistake of foreign law
d. Both (A) and (B)
21. Under the Indian Contract Act, 1872, the correct sequence in the
formation of contract is
a. Offer, acceptance, agreement, consideration
b. Agreement, consideration, offer, acceptance
c. Offer, consideration, acceptance, agreement
d. Offer, acceptance, consideration, agreement
22. Under Section 151 of the Indian Contract Act, 1872, Bailee is bound
to take as much care of the goods bailed to him
a. As an expert
b. As a lay man
c. As a man of ordinary prudence
d. None of the above
23. "Bailee" in terms of Section 148 of the Indian Contract Act, 1872, is
a person
a. Who delivers the goods
b. To whom the goods are delivered
c. Through whom the goods are delivered
 d. None of the above
24. Under Section 131 of the Indian Contract Act, 1872, the death of
the surety operates, in the absence of any contract to the contrary, as
a revocation of a continuing guarantee, so far as regards

a. Past transactions
b. All transactions
c. Future transactions
d. None of the above
25. A and B contract to marry each other . Before the time fixed-
for the marriage, A goes mad. 'As per Section 56 of the Indian
Contract Act, '1872, the contract becomes
a. Voidable
b. Valid
c. Void
d. None of the above

26. Under Section 143 of the Indian Contract Act, 1872, any
guarantee which the creditor has obtained by means of keeping
silence as to a material circumstance, is
a. Invalid
b. Valid
c. Enforceable in exceptional circumstances
d. Voidable
27. A guarantee which extends to a series of transactions under
Section 129 of the Indian Contract Act, 1872, is called
a. An absolute guarantee
b. A conditional guarantee
c. An invalid guarantee
d. A continuing guarantee
28. A is a contract to do or not to do something, if some event,
collateral to such contract, does or does not happen as provided
under Section 31 of the Indian Contract Act,1872.
a. Wagering contract
b. Contingent contract
c. Contract of Indemnity
d. None of the above
29. Under Section 26 of the Indian Contract Act, 1872, every
agreement in restraint of the marriage of any person, other than is
void
 a. Insane
b. An unsound person
c. A minor
d. None of the above

30. As per Section 2(e) of the Indian Contract Act, 1872, every
promise and every set of promises, forming the consideration for
each other, is
a. A contract
b. An offer
c. An acceptance
d. An agreement
31. A, B and C enter into an agreement for the division among
them of gains acquired or to be acquired, by them by fraud. As per
Section 23 of the Indian Contract Act, 1872, the agreement is
a. Voidable
b. Void
c. Valid
d. None of the above
32. Under Section 146 of Contract Act, the co-sureties are liable
to contribute
a. Equally
b. Unequally
c. According to the capacity
d. Either (a) or (b) or (c)
33. As per the Indian Contract Act, a proposal when accepted
becomes
a. Promise under Section 2(b)
b. Agreement under Section 2(e)
c. Contract under Section 2(h)
d. None of the above
34. As per contract Act, an agreement without consideration is
a. Void
b. Voidable at the option of parties
c. Valid
d. Illegal
35. Under Section 62 of Contract Act, the original contract need
not be performed if there is
a. Novation of Contract
b. Rescission of Contract
 c. Alteration of Contract
d. All the above

36. As per Contract Act, Wagering Contract is void under

a. Section 28
b. Section 29
c. Section 30
d. Section 31
37. A Contract of Indemnity is
a. Contingent Contract
b. Wagering Contract
c. Quasi Contract
d. Void agreement

38. In a contract of Indemnity, the promisor undertakes to make

good the loss
a. Caused by him only
b. Caused by other person only
c. Whether caused by promisor or other person
d. Loss caused through flood only
39. Contract of guarantee is
a. A bipartite agreement
b. Debtless agreement
c. Tripartite agreement
d. Quasi contract
40. In a contract of guarantee
a. There will be an implied promise by the principal debtor to
indemnify the surety
b. There will be a promise by the creditor to compensate the surety
c. There will be a contract to indemnify the principal debtor by the
surety
d. None of the above
41. Right of Subrogation in a contract of guarantee is available to
a. A creditor
b. A surety
c. A principal debtor
d. None of the above
42. Consideration to create agency under section 185 of the
Indian Contract Act
a. Is necessary
 b. Partly necessary
c. Not necessary
d. None of the above

43. In respect of a contract which in its nature is determinable

a. Specific performance cannot be granted
b. Specific performance can be granted
c. Specific performance can' be granted in part
d. None of the above
44. Novation of a contract under India Contract Act, means
a. Cancellation of contract
b. Alteration of the contract
c. The renewal of original contract
d. Substitution of a new contract in place of original contract
45. There is an agreement between A and B that B shall on receipt
of Rs.1,000/- from A deliver either rice or smuggled opium. Then
a. The contract is valid with -regard to -delivery of both rice and
smuggled opium.
b. The contract is valid with regard to delivery of rice only
c. The contract is valid with regard to delivery of smuggled opium
only
d. The entire contract is void
46. A intentionally deceives B into a belief that A has performed
A's part of a contract which he has not performed, and thereby
dishonestly induces B to pay money. A has committed
a. The offence of cheating
b. The offence of criminal breach of trust
c. The offence of extortion
d. The offence of theft
47. Illegality renders a contract
a. Punishable
b. Void
c. Illegal
d. All of these
48. Which of the following contracts is not specifically
enforceable?
a. To sell an agricultural property
b. To sell a dwelling house
c. To perform in a singing programme
d. None of the above
49. If time is the essence of the contract and the promisor fails to
perform the-contract by the specified time, the- contract
a. Becomes void
b. Remains valid
c. Becomes voidable at the instance of the promisee
d. Becomes unenforceable
50. Claim for necessaries of life supplied to a lunatic under
Section 68 of Indian Contract Act, can be enforced
a. The lunatic- personally when he, ceases to be lunatic
b. The relative of the lunatic
c. The guardian of the lunatic
d. The lunatic's property or estate
51. Contract is said to have 3 essentials, which one among the
following is not an essential element in the formation of contract
a. Offer
b. Acceptance
c. Consideration
d. Promise

52. Which Act deals with “Caveat Emptor”?

a. The Indian Contract Act, 1872.
b. The Sale of Goods Act, 1930.
c. The Specific Relief Act, 1963.
d. None of the above
53. A contract is void, if both the parties to an agreement are
under a mistake
a. Of law
b. Of fact
c. Of mixed fact and law
d. None of the above
54. Cancellation of contract due to impossibility of performance is
called
a. Novation
b. Rescission
c. Frustration
d. Both (b) and (c)
55. A enters into a contract with B to sell him 100 bales of cotton.
Afterwards A discovers that B was acting as an agent for C. For the
price of cotton, A may sue
a. Only B
b. Only C
c. Either B or C or both
d. Cannot sue
56. Section 138 of The Indian Contract Act, 1872 relates to the
following subject:
a. Surety's right to benefit of creditor's securities
b. Discharge of surety by variance in terms of contract
c. Release of one co-surety does not discharge others
d. Revocation of continuing guarantee by surety's death
57. As per the Indian Contract Act, a proposal when accepted
becomes
a. Promise under Section 2(b)
b. Agreement under Section 2(e)
c. Contract under Section 2(h)
d. None of the above
58. The principle of Estoppel is found in
a. The Indian Evidence Act
b. The Contract Act
c. The Code of Civil Procedure
d. The Specific Relief Act
59. Under Section 62 of the Indian Contract Act, 1872, if the
parties to a contract agree to substitute a new contract for it, or to
rescind or alter it,
a. The original contract need to be performed
b. The original contract need not be performed
c. The original contract shall be performed
d. The original contract can be modified

60. A contracts to pay to B Rs.1,000/- if B's house is burnt. This is

a
a. Contingent Contract
b. Wagering Contract
c. Voidable Contract
d. None of the above
61. Which of the following Section of the Indian Contract Act,
1872 states that, where there are co-sureties, a release by the
creditor of one of them does not discharge the others, neither does
it free the surety so released from his responsibility to the other
sureties?
a. 138
b. 139
c. 140
d. 141
62. Discharge of contract by Doctrine of frustration i.e,
supervening impossibility means
a. The performance of contract becomes impossible subsequent to the
contract, however, it was possible at the time of the 'contract
b. Entering into an agreement after distruction of the subject matter
c. Contract which requires supervening guarantee
d. None of the above
63. Quasi contract means
a. Contracts submitted before a quasi-judicial body
b. Without there being a pre-existing contract it comes into existence
as a creature of law which creates rights and obligations on the
parties
c. It is a pre written contract wherein the beneficiary must be minor
d. None of the above
64. Under the Indian Contract Act 1872, when the goods are
delivered from bailor to bailee as a security for repayment of debt or
performance of engagement which gives rise to pecuniary obligation
a. It becomes a special bailment
b. It becomes Monetary bailment
c. It becomes Pledge
d. It becomes a bailment without lien
65. When an offer is accepted it produces something Which cannot
be recalled, is expressed also as
a. Void contract
b. Static contract
c. Pre-mature contract
d. Valid Contract
66. "An acceptance to an offer is what a lighted match, to a train
of gun powder.
The Tripartite Contract among the following is
a. Contract of indemnity
 b. Contract of guarantee
c. Contract of bailment
d. Contract for supply of goods
67. Right of Subrogation means
a. Right of substitution
b. Right available to-creditor in a contract of guarantee
c. Right to get declared as insolvent
d. None of the above

Essay Type

68. What are the consequences of breach of contract? What are the

contracts which cannot be specifically enforced?

69. Who may obtain specific performance of contract?

70. Contract of guarantee and contract of indemnity Differences ?

71. Distinguish between a contract of Indemnity and a contract of 10 Marks

guarantee.

72. What are the essential elements of a contract? 10 Distinguish between

void and voidable contract.

73. What do you mean by "attempted performance and anticipatory 3 breach

of contract" in relation to performance of contracts?

74. The defendant offered to sell a house on 25.11.1989 to the plaintiff for

Rs.90,000/-. On 10.12.1989, the plaintiff made an offer of Rs.80,000/-.

This offer was refused by the defendant on 15.12.1989. On 20.12.1989, the

plaintiff wrote to the defendant that he was now prepared to pay

Rs.90,000/-. The defendant refused to sell the house. The plaintiff filed a

suit against the defendant for breach of contract. How would you decide this

case? Explain
 75. 'It is not possible to identify all kinds of activities to pre-define them as

agreements enforceable by law, however, an agreement enforceable by law is

a contract. Non-contracting parties shall also bear obligations in certain

cases.' Examine the above statement and mention two such instances of

obligations of earlier contract.

Notes:

Doctrine of Lis-pendence

Part performance of a contract

Subrogation

Void ab initio