Indian Contract Act 1872 Law of Contract Act MCQs

Indian Contract Act 1872 | Law of Contract Act MCQs

Multiple choice questions of Subject Judiciary Topic Indian Contract Act 1872 and Law of Contract Act MCQs ( Indian Contract Act 1872 | Law of Contract Act MCQs Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

Contract Bare Act | Indian Contract Act 1872

1. A tender notice

(a) is an offer

(b) is a proposal

(c) is merely an invitation to offer

(d) All the above

Ans. c

2. An agreement is

(a) Every promise and every set of promises

(b) Forming the consideration for each other

(c) Forming the consent for each other

(d) Both (a) & (b)

Ans. d

3. Reciprocal promises are

(a) Promises which form the consideration

(b) or part of the consideration for each other

(c) Promises which form the consent or part of consent for each other

(d) both (a) & (b)

Ans. d

4. The communication of a proposal is complete

(a) When it comes to the knowledge of the person to whom it is made.

(b) When it is communicated to the person to whom it is made.

(c) When it reaches to the person to Atom it is made.

(d) None of above

Ans. a

5. The communication of an acceptance is complete as against the proposer

(a) When it is put in a course of transmission to him so as to be out of the r of the acceptor

(b) When it come to the knowledge of the acceptor

(c) Both (a) & (b)

(d) None of the above

Ans. a

6. Communication of an acceptance is complete as against the acceptor

(a) it is communicated to the proposer

(b) it comes to the knowledge of proposer

(c) it reaches to the proposer

(d) All off the above

Ans.b

7. The communication of a revocation is complete as against the person who makes it

(a) When it is put into a course of transmission to the person whom it is made so as to be out of the power of the person who makes it

(b) When it is delivered to the person to whom it is made

(c) When it reaches to the person to whom it is made

(d) None of the above

Ans. a

8. The communication of revocation is complete as against the person whom it is made

(a) When it reaches to such person

(b) When it comes to his knowledge

(c) When it is accepted

(d) None of the above

Ans. b

9. ‘A’ proposes by letter to sell a house to 13′ for an amount of Rs. 1 lakh `B’ receives the said letter. The communication of proposal is

(a) When B receives the letter

(b) When the letter is posted

(c) When the letter is answered

(d) None of the above

Ans. a

10. 13′ accepts A’s proposal by letter sent by post. The communication of the acceptance is complete as against ‘A’

(a) When the letter is posted

(b) When the letter reaches to ‘A’

(c) both (a) & (b)

(d) None of the above

Ans. a

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11. The communication of the acceptance is complete as against B’

(a) When letter is posted

(b) When the letter is received by ‘A’

(c) both (a) & (b)

(d) None of the above

Ans. b

12. ‘A’ revokes his proposal by telegram. The revocation is complete as against ‘A’

(a) When the telegram is dispatched

(b) When the telegram reaches to ‘A’

(c) both (a) & (b)

(d) None of the above

Ans. a

13. ‘A’ revokes his proposal by a telegram. The revocation is complete as against `B’

(a) When telegram is despatched

(b) When 13′ receives it

(c) both (a) & (b)

(d) None of the above

Ans. b

14. B’ revokes his acceptance by telegram. B’s revocation is complete against ‘B’

(a) When the telegram reaches ‘A’

(b) When the telegram is despatched

(c) both (a) & (b)

(d) None of the above

Ans. b

15. ‘B’ revokes his acceptance by telegram. B’s revocation is complete as against ‘A’

(a) When the telegram is despatched

(b) When it reaches to ‘A’

(c) both (a) & (b)

(d) None of the above

Ans. b

16. A proposal is revoked

(a) By the communication of notice of revocation by the proposer to the other party

(b) By the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance

(c) By the failure of the acceptor to fulfil a condition precedent to acceptance; or by the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance

(d) All of the above

Ans. d

17. In order to convert a proposal into a promise, the proposal must be

(a) Absolute

(b) Unqualified

(c) Expressed in some usual and reasonable manner

(d) All the above

Ans.d

18. Promise may be

(a) Express

(b) Implied

(c) Both (a) & (b)

(d) None of the above

Ans. c

19. An agreement is a contract, if it is made

(a) By free consent

(b) By a party competent to contract

(c) For a lawful consideration and for a lawful object

(d) All the above

Ans. d

20. Every person is competent to contract, if he is

(a) of the age of majority

(b) is of sound mind

(c) both (a) & (b)

(d) None of the above

Ans. c

Contract Bare Act | Sec 27 of Indian Contract Act

21. A person is said to be of sound mind for the purposes of making if at the time when he makes it

(a) He is capable of understanding it

(b) Forming a rational Judgement as to its effect upon his interests

(c) Neither (a) nor (b)

(d) both (a) & (b)

Ans. d

22. Where both the parties are under mistake as to a matter of fact to the agreement, the agreement is

(a) Void

(b) Voidable

(c) both (a) & (b)

(d) None of the above

Ans. a

23. ‘A’ agrees to buy from `13′ a certain horse. It turns out that t was dead at the time of bargain, though neither party was aware of the facts. Whether the agreement is

(a) Void

(b) Voidable

(c) both (a) & (b)

(d) None of the above

Ans. a

24. Where a contract is caused by mistake of one party as to a matte the contract is

(a) Void

(b) Voidable

(c) Valid

(d) Illegal

Ans. c

25. Considerations and objects are unlawful if they are

(a) Forbidden by law or would defeat the provisions of any law

(b) Fraudulent or involves or implies injury to the person or property

(c) Immoral or opposed to public policy

(d) All the above

Ans. d

26. If only part of the consideration or object is unlawful, the agreement

(a) Void

(b) Voidable

(c) Valid

(d) Illegal

Ans. a

27. An agreement without consideration is

(a) Voidable

(b) Void

(c) Illegal

(d) Valid

Ans. b

28. Where consent has been obtained by misrepresentation or by silence, fraudulent within the meaning of Section 17, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence’

(a) Not Voidable

(b) Void

(c) both (a) & (b)

(d) None of the above

Ans. a

29. A contract which has been induced by undue influence may be set aside

(a) Absolutely

(b) If the party who was entitled to avoid it has received any benefit, upon such terms and conditions as the court may seem just

(c) both (a) & (b)

(d) None of the above

Ans. c

30. ‘A’ s son has forged B’s name to a promissory note. ‘IV under threat of prosecuting A’s son, obtains a bond from ‘A’ for the amount of the forged If B sues on this bond, the Court may

(a) Set aside

(b) May not set aside the bond

(c) May return the plaint

(d) None of the above

Ans. a

Important Questions from Indian Contract Act 1872 for CA Foundation

31. An agreement without consideration, if in writing and registered or is a premise to compensate for something to be done, or is a promise to pay a debt barred by limitation is

(a) Void

(b) Voidable

(c) Valid

(d) None of the above

Ans. c

32. ‘A’ promises to ‘B’ to give an amount of Rs. 1000/ for no consideration, the agreement is

(a) Voidable

(b) Void

(c) both (a) & (b)

(d) None of the above

Ans. b

33. ‘A’ for natural love and affection, promises to give his son ‘B’ Rs. 1( ‘A’ puts his promise to `B’ into writing and registers it. The contract is

(a) Valid

(b) Voidable

(c) Void

(d) None of the above

Ans. a

34. ‘A’ finds B’s purse and gives it to him. B promises to give A Rs. 50/. contract is

(a) Valid

(b) Voidable

(c) Void

(d) None of the above

Ans. a

35. ‘A’ owes ‘B’ Rs. 1000/ but the debt is barred by the Limitation Act ‘A’ signs a written promise to pay B Rs. 500/ on account of debt. The contract is

(a) Valid

(b) Void

(c) both (a) & (b)

(d) None of the above

Ans. a

36. If the consent is given freely, inspite of inadequacy of the consideration, the contract is

(a) Void

(b) Valid

(c) both (a) & (b)

(d) None of the above

Ans. b

37. ‘A’ agrees to sell a horse worth Rs. 1000/ for Rs. 500/. A’s consent to the agreement was freely given. The agreement notwithstanding the inadequacy of the consideration is

(a) Valid Contract

(b) Invalid contract

(c) (a) & (b)

(d) None of the above

Ans. a

38. Every agreement in restraint of marriage of any person other than

(a) Valid

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

39. Every agreement in restraint of trade or business is

(a) Valid

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

40. Every agreement in restraint of legal proceedings is

(a) Valid

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

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41. ‘Consent’ means where two or more persons are said to consent when

(a) They agree upon the same thing

(b) in the same manner

(c) (a) & (b)

(d) None of the above

Ans. c

42. Any agreement by way of wager is

(a) Void

(b) Valid

(c) (a) & (b)

(d) None of the above

Ans. a

43. A ‘contingent contract’ is a contract to do or not to do something, if some event, collateral to such contract

(a) does happen

(b) does not happen

(c) (a) & (b)

(d) None of the above

Ans. c

44. ‘A’ contracts to ‘IV to pay Rs. 10,000/ if B’s house is burnt. The contract is

(a) Contingent contract

(b) Quasi contract

(c) Contract

(d) None of the above

Ans. a

45. Agreements contingent on impossible events are

(a) Void

(b) Voidable

(c) (a) & (b)

(d) None of the above

Ans. a

46. ‘A’ agrees to pay ‘B’ Rs. 1000/, if two straight lines should enclose a space. e agreement is

(a) Void

(b) Valid

(c) (a) & (b)

(d) None of the above

Ans. a

47. ‘A’ agrees to pay Rs. 1000/ if `13′ will marry A’s daughter ‘C’. dead at the time of the agreement. The agreement is

(a) Valid

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

48. Unless a contrary intention appears from the contract in case of promisor before performance, their representatives are

(a) Bound for such promises

(b) Not bound by such promises

(c) None of the above

(d) (a) & (b)

Ans. a

49. `A’ promises to deliver goods to ‘B’ on a certain day on paymer 1000/. A dies before that day. A’s & B’s representatives are

(a) Bound to deliver and pay

(b) Not bound to deliver and pay

(c) None of the above

(d) (a) & (b)

Ans. a

50. `A’ promises to paint a picture for ‘B’ by a certain day at a certa `A’ dies before that day. A’s or B’s representatives

(a) Can enforce the contract

(b) Cannot enforce he contract

(c) (a) & (b)

(d) None of the above

Ans. b

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51. If from the nature of the case it was the intention of the parties such promise must be performed by the promisor himself, such must be performed

(a) By the promisor

(b) By the third person

(c) (a) & (b)

(d) None of the above

Ans. a

52. If there is no intention that the promise must be performed promisor, the promisor or his representatives may employ

(a) A competent person to perform

(b) By the promisor himself

(c) (a) & (b)

(d) None of the above

Ans. a

53. When a promisee accepts performance of promise from a third

(a) He cannot afterwards enforce it against the promiser

(b) Can enforce it against the promisor

(c) (a) & (b)

(d) None of the above

Ans. a

54. When two or more persons make a joint promise, the promisee may, in the absence of express contract to the contrary, compel

(a) Any one or more promisors to perform

(b) All the promisors to perform

(c) (a) & (b)

(d) None of the above

Ans. a

55. The agreement, the meaning of which is not certain or capable of being made certain, are

(a) Void

(b) Voidable

(c) Valid

(d) None of the above

Ans. a

56. `A’ agrees to sell to ’13’ 100 tones of oil of a specified description, known as article of commerce. The agreement is

(a) Void

(b) Valid

(c) Voidable

(d) None of the above

Ans. b

57. ‘ A’ agrees to sell to B all the grain in his filed at Ram Nagar. The agreement is

(a) Void

(b) Valid

(c) Voidable

(d) None of the above

Ans. b

58. ‘A’ agrees to sell `B’ 100 tones of oil. The agreement is

(a) Void

(b) Valid

(c) Voidable

(d) None of the above

Ans. a

59. The performance of any promise may be made which the promisee

(a) Prescribes

(b) Sanctions

(c) in any manner

(d) All the above

Ans. d

60. An agreement to do an act impossible is

(a) Void

(b) Voidable

(c) (a) & (b)

(d) None of the above

Ans. a

Sec 10 of Indian Contract Act 1872 | ICA Bare Act | Contract Act MCQ for Judiciary

61. ‘A’ agrees with `B’ to discover treasure by magic. The agreement is

(a) Voidable

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

62. A contracts to do an act which, after the contract is made becomes impossible, or, by reason of some event which the promisor could prevent unlawful becomes

(a) Void

(b) Valid

(c) Voidable

(d) None of the above

Ans. a

63. A & B contract to marry each other. Before the time fixed for n `A’ goes mad The contract becomes

(a) Voidable

(b) Void

(c) (a) & (b)

(d) None of the above

Ans. b

64. ‘A’ contracts to act at a theatre for six months in consideration of a paid in advance by ‘B’. On several occasions ‘A’ is too ill to act. contract becomes

(a) Voidable

(b) Valid

(c) Void

(d) None of the above

Ans. c

65. Where persons reciprocally promise, firstly, to do certain things which legal, and secondly, under specified circumstances, to do certain things which are illegal, the first set of promise and the second promise are

(a) Contract and void

(b) Contract and voidable

(c) Contract and valid

(d) None of the above

Ans. a

66. ‘A’ and `B’ agree that ‘A’ shall sell ‘IV a house for Rs. 10,000/ but, if ‘IV uses it as a gambling house, he shall pay A Rs.50,000/ for it. first set of reciprocal promises namely, to sell the house and to 10,000/ for it is a contract

(a) Yes

(b) No

Ans. a

67. The second set for an unlawful object, namely, that B may use the house a gambling house is a void agreement

(a) No

(b) Yes

Ans. b

68. In the case of an alternative promise, one branch of which is legal and the other illegal, the legal branch alone can be enforced

(a) Yes

(b) No

Ans. a

69. A and B agree that ‘A’ shall pay ‘IV 1000/ rupees for which ‘IV shall Afterwards deliver to ‘A’ either rice or smuggled opium. The contract to .tt-liver rice is valid and as to opium is void agreement

(a) Yes

(b) No

Ans. a

70. The original contract may not be performed if the parties to contract agree to

(a) Substitute a new contract for it.

(b) To rescind

(c) To alter it

(d) All the above

Ans. d

71. Compensation for loss or damage caused by breach of contract can be given only if the loss or damage if the loss has arisen

(a) Naturally in usual course of things

(b) which the parties knew when they made the contract to be likely to result from such breach

(c) (a) & (b)

(d) None of the above

Ans. c

72. Compensation for loss or damage cannot be given for any loss or damage, if loss or damage are

(a) Remote

(b) indirect

(c) (a) & (b)

(d) one of the above

Ans. c

73. The damages under Section 73 of the Indian Contract Act are

(a) Compensatory

(b) Penal

(c) unliquidated

(d) none of the above

Ans. a

74. While determining damages, which of the following have to be taken into consideration

(a) Manner of breach

(b) Motive of breach

(c) Inconvenience caused by non-performance of the contract.

(d) All the above

Ans. c

75. An amount fixed in the contract to be paid as compensation in the of breach of contract is called

(a) Penalty

(b) liquidated damages

(c) Either (a) or (b)

(d) Neither (a) nor (b)

Ans. c

76. ‘Free Consent’ means when it is not caused by

(a) Coercion

(b) Undue Influence

(c) Fraud, Misrepresentation, Mistake

(d) All the above

Ans. d

77. Coercion means committing or threatening to commit any act

(a) Forbidden by Indian Penal Code

(b) By unlawful detaining, or threatening to detain, any property, prejudice of any person

(c) With the intention of causing any person to enter into an agree

(d) All the above

Ans. d

78. For employing coercion to commit any act forbidden by the India Code, it is immaterial whether Indian Penal Code is or is not e in the place where the coercion is employed

(a) Yes

(b) No

Ans. a

79. A contract is said to be induced by undue influence where

(a) the relationship between the parties are such that one of the party is in a position to dominate the will of the other

(b) Uses that position to obtain an unfair advantage over the other

(c) (a) & (b)

(d) None of the above

Ans. c

80. The person is deemed to be in a position to dominate the will of a where

(a) he holds a real or apparent authority over the other, or where hi in a fiduciary relation to the other

(b) he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, of or bodily distress

(c) (a) & (b)

(d) None of the above

Ans. c

81. Where a person who is in a position to dominate the will of another into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving such contract was not induced by undue influence shall lie

(a) upon the person in a position to dominate the will of the other

(b) Upon the person induced

(c) (a) & (b)

(d) None of the above

Ans. a

82. ‘A’ having 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’ a greater amount than the sum due in respect of the advance. ‘A’ employs undue influence

(a) Yes

(b) No

Ans. a

83. A. a man enfeebled by disease or age is induced by B’s influence over him as his medical attendant, to agree to pay B. an unreasonable sum for his professional service. B employs undue influence

(a) No

(b) Yes

Ans. b

84. A, being in debt to B, the money lender of his village, contracts a fresh loan on terms which appear to be unconscionable. The burden of proof that contract was not induced by undue influence lies on

(a) ‘A’

(b) ‘B’

Ans. b

85. ‘Fraud’ means an act committed by a party to a contract or with his connivance, or by his agent, with intent to

(a) deceive another party thereto or his agent

(b) to induce him to enter into the contract

(c) (a) & (b)

(d) None of the above

Ans. c

86. ‘Fraud’ means and includes any of the following acts committed by a party a to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract

(a) The suggestion, as a fact, of that which is not true

(b) The active concealment of a fact, a promise made without any intention of performing it

(c) any other act fitted to deceive, any such act or omission as the law specially declares to be fraudulent

(d) All the above

Ans. d

87. Misrepresentation’ means and includes

(a) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true

(b) any breach of duty which, without an intent to deceive, gains an a to the person committing it, or any one claiming under him, by m: another to his prejudice

(c) causing, however innocently, a partly to an agreement, to make z as to the substance of the thing which is the subject of the agreement

(d) All the above

Ans. d

88. When consent of an agreement is caused by coercion, misrepresentation, the agreement is a contract which is at the contracting party

(a) Voidable

(b) Void

(c) Valid

(d) None of the above

Ans. a

89. A party to contract whose consent was caused by fraud or misrepresent may insist that the contract shall be performed and that he shall in the position in which he would have been if the representation made had been true

(a) Yes

(b) No

Ans. a

90. A fraud or misrepresentation which did not cause the consent to a of the party on whom such fraud was practiced, or to whom misrepresentation was made

(a) render a contract voidable

(b) does not render a contract voidable

(c) (a) & (b)

(d) None of the above

Ans. b

91. A contract which is caused by a mistake as to any law in force is

(a) Voidable

(b) Void

(c) Valid

(d) None of the above

Ans. c

92. A contract caused by a mistake as to a law not in force in India same effect as a mistake of fact and is

(a) Voidable

(b) Void

(c) Valid

(d) None of the above

Ans. c

93. A and B make a contract grounded on the erroneous belief that a 01 debt is barred by the Indian Law of Limitation, the contract

(a) Voidable

(b) Void

(c) Valid

(d) None

Ans. c

94. According to Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is said to be:

(a) Contract impossible to perform

(b) Illegal contract

(c) Unlawful contract

(d) Void

Ans. d

95. The leading case of Carlill v. Carbolic Smoke Ball Co. is related to:

(a) General offer

(b) Counter offer

(c) Invitation to offer

(d) Lapsed offer

Ans. a

96. The doctrine of privity of contract means that:

(a) A contract is a private affair between the parties

(b) Consideration can be supplied only by the parties to contract

(c) The contract can be enforced only by a civil and private action

(d) Only parties to contract can sue and be sued upon the contract

Ans. d

97. Quid pro quo means_____:

(a) Something in return

(b) Adequacy of consideration

(c) Sufficiency of consideration

(d) Value of promise

Ans. a

98. In case of general offer, for a valid contract:

(a) The acceptor need not have the knowledge of the offer

(b) The acceptor must have the knowledge of the offer before acceptance by performance

(c) The acceptor may acquire the knowledge of the offer after the performance the condition for acceptance

(d) Knowledge does not matter so long as the condition is performed with or without knowledge

Ans. b

99. Consideration means:

(a) Must have some value in the eyes of law

(b) Must be real c

(c) Must not be illusory

(d) All the correct

Ans. d

100. What is the terminology used to describe a situation when two parties make identical offers to each other in ignorance of each other’s offer?

(a) Offer

(b) Crisis Offer

(c) Counter offer

(d) Conditional offer

Ans. b

101. Which of the following is correct?

(a) Past consideration is no consideration

(b) Consideration can be past, present or future

(c) Consideration can only be present

(d) Consideration can only be future

Ans. b

102. Which one of the following statement is correct? A voidable contract is an agreement which is:

(a) Enforceable with the permission of the court

(b) Enforceable by the parties thereto

(c) Enforceable by law at the option of one or more of the parties but not at the option of the other or others

(d) Not enforceable by any of the parties thereto

Ans. c

103. Which of the following is an offer?

(a) A bid at an auction sale

(b) Banker’s catalogue of charges

(c) Menu card at a restaurant

(d) All of the above

Ans. a

104. A general offer open for world at large can be accepted:

(a) By sending a communication of acceptance

(b) By complying with the conditions of offer

(c) By tendering himself to comply the conditions of offer

(d) None of the above

Ans. b

105. What can a catalogue of books, listing price of each book and s the place where the listed books are available be termed as?

(a) An offer

(b) An obligation to sell book

(c) An invitation to offer

(d) A promise to make available the books at the listed place

Ans. c

106. An offer was sent by post, the acceptor wrote ‘accepted’ on to put it in his drawer and forgot about it. The transaction is a:

(a) Valid contract

(b) A voidable contract

(c) A void contract

(d) No agreement as the acceptance was never communicated to the

Ans. d

107. ‘L’ is sent to search for G’s nephew in the meantime ‘G’ by advertisement offers a reward of Rs.501/- to anyone who finds his nephew. L traces the boy and subsequently knowing about the reward claims it. To the reward L is:

(a) Entitled

(b) Not entitled as the offer is general

(c) Not entitled as the consideration is inadequate

(d) Is not entitled as the offer was not communicated to him

Ans. d

108. In which case it was held that a contract through telephone is concluded at the place where acceptance is heard?

(a) Shukla v. Gauri Dutt, (1913) XL ALJR 489 (All)

(b) Carlill v. Carolic Smoke BallCo., (1981-4) All ER Rep 127

(c) Bhagwandas Goverdhandas Kedia v. M/s. Girdhari Lal Parshottamdas & Col, AIR 1966 SC 543

(d) Sat yabrata Ghose v. Mugneeram Bangur & Co., AIR 1954 SC 44

Ans.c

109. In case of acceptance by post, at what point the acceptance is complete 16 against the proposer?

(a) When the letter of acceptance is put in the course of transmission so as to be out of power of the acceptor

(b) When the letter of acceptance has been written

(c) When the letter of acceptance has been received

(d) When the letter of acceptance has been read by the proposer

Ans. a

110. X duly posts a letter of acceptance to Y. But the letter is lost in transit the negligence of the post office:

(a) There is no contract concluded, because the acceptance has not reached the proposer

(b) There is no contract concluded, because the proposer had not received the letter

(c) The contract is concluded, because the acceptance is complete, from the dare of dispatch, notwithstanding any delay or miscarriage in its arrival from causes not within the acceptor’s control

(d) None of the above

Ans. c

111. ‘An’ acceptance is complete as soon as the letter of acceptance is posted-whether it reaches the offerer or not” which one of the following with Ord to the above statement is correct:

(a) According to Indian Law, the rule is valid

(b) According to English law, the rule is valid

(c) Both Indian Law and English Law follow the same rule

(d) None of the above

Ans. a

112. When the acceptance is made by telephone then the contract is deemed On be made at such place:

(a) where acceptance is heard or received

(b) Where the acceptance is given

(c) Where the acceptor resides

(d) None of the above

Ans. a

113. Communication of acceptance is complete as against the proposer:

(a) When it comes to the knowledge of the proposer

(b) When it is put in course of transmission to him so as to be out of power of the acceptor

(c) When the acceptance is communicated to the proposer

(d) All of the above

Ans. b

114. When offer is accepted with a condition it is:

(a) Acceptance

(b) Conditional acceptance

(c) Counter offer

(d) Non-acceptance

Ans. c

115. An offer must be:

(a) General

(b) Specific

(c) Incapable of communication

(d) Possible

Ans. b

116. Where no application is made and no time is specified for performance of promise, there the agreement be performed within:

(a) Three years

(b) Two years

(c) One year

(d) Reasonable time

Ans. d

117. A counter offer is:

(a) An invitation to treat

(b) An acceptance of the offer

(c) A rejection of original offer

(d) A bargain

Ans. c

118. Competency to contract relates to:

(a) Age of the parties

(b) Soundness of mind of the parties

(c) Both age and soundness of mind

(d) Intelligence of the parties

Ans. c

119. Mohoribibi v. Dharmodas Ghose is a case relating to:

(a) Partition of property

(b) Divorce

(c) Minors contract

(d) None of the above

Ans. c

120. A contract with a minor is a:

(a) Valid

(b) Void

(c) Voidable

(d) Both (a) and (c)

Ans. b

121. According to Section 11 of the Contract Act, a person is incompetent to contract who is a:

(a) Minor

(b) Person of unsound mind

(c) Person disqualified from contracting by any law

(d) All of the above

Ans. d

122. ‘A’ is of unsound mind, at one time he becomes sound and enters into a contract with ‘W. Contract is:

(a) Valid

(b) Void

(c) Voidable

(d) Non est

Ans. a

123. “Consensus ad idem” under a contract means:

(a) Common intention

(b) Meeting of minds

(c) Theme of contract

(d) None of the above

Ans. b

124. The term “consensus ad idem” means:

(a) No agreement can have more than one meaning

(b) To agree the same way

(c) To agree on the same thing with same sense

(d) To agree for different objects in the same sense

Ans. c

125. A consent is said to be free when it is not caused by:

(a) Coercion

(b) Undue influence

(c) Fraud

(d) All of the above

Ans. d

126. The consent obtained by threatening to commit suicide amounts to consent by

(a) Coercion

(b) Undue influence

(c) Fraud

(d) All of the above

Ans. a

127. A holds out a pistol over his own head and threatens to shoot himself if a release deed is not signed by his wife in favour of his brother. A’s wife signs release deed. The consent to the agreement is caused by:

(a) Undue influence

(b) Coercion

(c) Fraud

(d) Mistake

Ans. b

128. A contract is voidable if it is caused by concealment of a material by someone who is under duty to speak because it is:

(a) Misrepresentation

(b) Fraud

(c) Under influence

(d) None of the above

Ans. b

129. 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

(c) Suggestion as to a fact, which is not true, by one who does not it to be true

(d) A representation made without knowing it to be false, honestly belt it to be true

Ans. d

130. Under Indian Contract Act, an agreement which is enforceable bi the option of one or more of the parties thereto, but not at that of the other or others, is

(a) An illegal agreement

(b) A void agreement

(c) A valid agreement

(d) A voidable contract

Ans. d

131. Under Section 20 of the Indian Contract Act, 1872, in case both the are under mistake as to matter of fact, the contract:

(a) Is valid

(b) Is invalid

(c) Is void

(d) None of the above

Ans. c

132. Both parties are mistaken regarding the subject matter of the contract. The contract is:

(a) Void

(b) Voidable

Ans. a

133. Two parties entered into a contract. They later realized that the they understood as applicable was not in force in India. This makes contract:

(a) Illegal

(b) Void

(c) Voidable

(d) None of the above

Ans. d

134. Two parties entered into a contract. They later realized that there was a mistake in their understanding of the law as applicable in India makes their contract:

(a) Non est

(b) Void

(c) Voidable

(d) None of the above

Ans. d

135. A contract caused by mistake of law not in force in India:

(a) Is void

(b) Is voidable

(c) Has the same effect as though it was caused by a mistake of fact

(d) None of the above

Ans. c

136. An agreement is void if its object or consideration is:

(a) Forbidden by law

(b) Of such nature that if permitted, it would defeat the provisions of law or is (c) fraudulent

(c) The court regards it an immoral or against public policy

(d) All the above

Ans. d

137. ‘A’ promises to obtain for “B” an employment in the public service and promises to pay Rs. 1,000/- to “A”. The agreement is:

(a) Legal

(b) Can be enforced at the option of the parties

(c) Void

(d) None of the above

Ans. c

138. Which of the following is/are correct? As per Section 23 of the Indian contract Act, 1872, the consideration of an agreement is lawful unless:

(a) It is forbidden by law is

(b) It is of such a nature that, if permitted, it would defeat the provisions of law

(c) It is fraudulent

(d) It is regarded by the court as immoral or opposed to public policy

Ans. a

139. If only a part of the consideration or object is, unlawful, the contact under %aim 24 of the Indian Contract Act, 1872, shall be:

(a) Valid to the extent the same are lawful

(b) Void to the extent the same are unlawful

(c) Void as a whole

(d) Valid as a whole

Ans. c

140. Ex nude pacto non oritur action, means:

(a) A stranger to the contract cannot sue

(b) An agreement without consideration is void

(c) An agreement based on natural love and affections

(d) All the above

Ans. b

141. A contract without consideration is void. There are exceptions of it. Which one of the following exceptions is correct?

(a) nearness of relationship

(b) natural love and affection

(c) promise to pay time bared debt

(d) to create an agency

Ans. b

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