1.

An agreement enforceable at law is a

(a) enforceable acceptance

(b) accepted offer

(c) approved promise

(d) contract

3. Promises which form the consideration or part of the consideration for each other are called

(a) reciprocal promises

(b) cross offers (c) conditional offer

(d) conditional promises.

(d) tentatively accepted.

8. 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.

9. When, at the desire of the promisor, the promisee or any other person has done or abstained from

doing or, does or abstain from doing or promises to do or to abstain from doing something, such act or

abstinence or promise under section 2(d) is called

(a) reciprocal promise

(b) consideration for the promise

(c) counter offer (d) acceptance.

10. Promises which form the consideration or part thereof, for each other under section 2(F) are called

(a) acceptances for different proposals

(b) agreements (c) reciprocal promises (d) consideration.

11. Every promise or set of promises forming the consideration for each other under section 2(e) is
called

(a) reciprocal promise

(b) contract

(c) agreement

(d) none of the above.

12. An agreement enforceable by law at the instance of one party & not of other party under section 2(i)
is

called

(a) a valid contract

(b) an illegal contract

(c) void contract

(d) a voidable contract.

13. Which is correct

(a) proposal + acceptance = promise

(b) promise + consideration = agreement

(c) agreement + enforceability = contract

(d) all the above

1. An acceptance can be revoked

(a) at any time before the communication of acceptance is complete as against the promisee

(b) after its acceptance comes to the knowledge of the promisee

(c) both (a) & (b)

(d) neither (a) nor (b)

23. Competency to contract relates to

(a) age of the parties

(b) soundness of mind of the parties

(c) both age & soundness of mind

(d) intelligence of the parties.

36. An agreement in restraint of trade under section 27 is

(a) valid

(b) voidable

(c) void

(d) unenforceable

41. Coercion which vitiates free consent under section 15 is

(a) committing or threatening to commit any act which is forbidden by law

(b) committing or threatening to commit any act which is forbidden by Indian Penal Code

(c) unlawful detaining or threatening to detain any property with an intention to causing any person to
enter into

an agreement

(d) all the above.

6. Voidable contract _______.

(a) are enforceable by law if they are not avoided
(b) are not enforceable by law
(c) can be enforced if the court directs
(d) can be enforced with prior permission of Court/ Government
19. A agrees to sell to B my white horse for ₹ 500 or ₹ 1,000. There is nothing to show which of
the two prices was to be given. The agreement is _______.
(a) Valid
(b) Void
(c) Voidable
(Q.10:- In order to convert a proposal into a promise, the acceptance must:

a. Be absolute and qualified.

b. Be expressed in some usual and reasonable manner, unless the proposal prescribes the manner
in which it is to be accepted.
c. Be absolute and unqualified
d. Both B and C only.

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

a. 1st May, 1872

b. 1st September, 1872
c. 1st October, 1872
d. 1st November, 1872

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

a. The minor is not personally liable.

b. Minor’s estates are liable to make good.
c. Minor’s guardian is liable.
d. The minor is personally liable

Correct Option: A

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

a. Very much influence

 b. Undue influence
c. Slightly influence
d. Influence

Q.30:- The consideration must be:

a. Adequate
b. Must be adequate
c. Need not be adequate
d. Substantially adequate

Which one of the following is not a method by which a contract can be discharged?

a) Discharge by misrepresentation
b) Discharge by performance
c) Discharge by breach
d) Discharge by agreement

Question 2

Regarding the time of performance, which one of the following statements is untrue?

a) Where time is of the essence of a contract, a slight delay will not allow the non-breaching
party to terminate the contract.
b) Where a contract does not provide that performance must be completed by a certain date,
the parties to the contract must perform their obligations within a reasonable time.
c) Where the time of performance is not 'of the essence of the contract,' then a party to the
contract can give notice that it has become of the essence of the contract.
d) Time will be of the essence where the subject matter of the contract indicates that time
shall be of the essence.

Question 3

Regarding the tendering of performance, which one of the following statements is untrue?

a) If a debtor attempts to tender payment, but the other party refuses, then the debtor is
discharged from the obligation to pay.
b) A tender of payment is only valid if made in legal currency.
c) A refusal to accept the tender of performance (where performance amounts to an act other
than the payment of money) will constitute a breach of contract
 d) The tender of payment is invalid if the other party is required to provide change.

Question 4

In relation to discharge by agreement, which one of the following statements is untrue?

a) If both parties wish to discharge a contract, they must create a written agreement stating
that the contract has been discharged.
b) Generally, both parties will need to provide consideration for the other's agreement to
discharge.
c) Under the common law, a contract made by deed can only be discharged via a deed.
d) A partial discharge of a contract that must be made in writing will usually only be valid if
the agreement to discharge is made in writing.

Question 5

What is 'renunciation?'

a) Renunciation occurs where one party demonstrates an intention not to perform his
contractual obligations.
b) Renunciation occurs where one party, through his own act or default, incapacitates
himself from performing his contractual obligations.
c) Renunciation occurs where a party fails to perform adequately his contractual obligations.
d) Renunciation occurs where both parties decide to abandon the contract.

Question 6

Regarding breach of contract that arises through defective performance, which one of the
following statements is true?

a) Where statute or case law does not classify the status of a term, the court will attempt to
determine the status of the term by reference to the parties' intentions.
b) If one party fails to adequately perform his obligations, then the other party can always
terminate the contract.
c) The court will always uphold the parties' classification of a term.
d) Breach of a warranty will allow the non-breaching party to terminate the contract and
claim damages.

Question 7
What is an innominate term?

a) An innominate term is a term which, if breached, allows the non-breaching party to

terminate the contract providing that the breach deprived him of substantially the whole benefit
of the contract.
b) An innominate term is a term that goes to the root of the contract and, if breached, allows
the non-breaching to terminate the contract and claim damages.
c) An innominate term is a term which, if breached, allows the non-breaching party to claim
damages, but does not permit him to terminate the contract.
d) An innominate term is a term allows the non-breaching party to terminate the contract,
but only where the other party breached the contract knowingly.

Question 8

If a non-breaching party validly terminates the contract, a number of consequences may follow.
Which one of the following is not a valid consequence of termination?

a) Termination always discharges the entire contract.

b) If there has been a total failure of consideration, the non-breaching party can recover any
monies paid.
c) The party that terminated the contract is released from performing any obligations that
remain to be performed.
d) A party that exercises the right to terminate cannot subsequently change his mind and
demand performance.

Question 9

If the non-breaching party decides to affirm the breach, a number of consequences may follow.
Which one of the following is not a valid consequence?

a) If the non-breaching party affirms the breach, the contract remains in force, but any
further breaches will entitle the non-breaching party to immediately terminate the contract.
b) If the non-breaching party obtains an order for specific performance, this will amount to
conditional affirmation only.
c) The contract will remain in force and will continue to bind both parties.
d) If the non-breaching party unequivocally affirms the breach, the right to terminate is lost
and he cannot subsequently change his mind and terminate the contract.

Question 10
What is frustration?

a) Frustration occurs where a party fails to perform his contractual obligations due to an
event that is beyond the control of either party.
b) Frustration occurs where one party breaches his contractual obligations due to
interference from the other party.
c) Frustration occurs where one party cannot perform his contractual obligations due to his
own negligent act.
d) Frustration occurs where contractual performance becomes more difficult.

 reset
 +A
 -A

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