MCQ on Contract Act PDF

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Which Of The Following Is Correct? A. Indian Contract Act, 1882 B. Indian Contract Act, 1972 C. Indian Contract Act, 1872 D. Indian Contract Act, 1888 Answer- C Every contract is agreement but every agreement is not contract. This statement is – A. Wrong B. Correct C. Correct subject to certain exce...

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1) Which Of The Following Is Correct? A. B. C. D.

Indian Contract Act, 1882 Indian Contract Act, 1972 Indian Contract Act, 1872 Indian Contract Act, 1888

Answer- C 2) Every contract is agreement but every agreement is not contract. This statement is – A. B. C. D.

Wrong Correct Correct subject to certain exceptions Partially correct

Answer- B 3) A promises to deliver his watch to B and in return B promises to pay a sum of Rs. 2000/-. There is said to be a/anA. B. C. D.

Agreement Proposal Acceptance Offer

Answer- A 4) An agreement isA. B. C. D.

Offer Offer + Acceptance Offer + Acceptance + Consideration Contract

Answer- B 5) A contract means an agreementA. B. C. D.

Which is enforceable by law Which is not enforceable by law Which is common Which is mutual

Answer- A

6) To form a valid contract there should be at leastA. B. C. D.

Two parties Three Parties Four Parties Five parties

Answer- A 7) A promise to pay Rs. 1000/- to B if B writes 100 pages in one minute. This is known asA. B. C. D.

Void Contract Voidable Contract Valid Unenforceable

Answer- A 8) ………………. does not affect the free consent of the parties A. B. C. D.

Fraud Coercion Incompetency of parties Undue Influence

Answer- C 9) …………….. is made by words either spoken or writtenA. B. C. D.

Express contract Implied Contract Tacit Contract Unlawful contract

Answer- A 10) All illegal agreements are void but all void agreements are not illegalA. B. C. D.

True Partly True False None of the above

11) The proposal used in the Indian Contract Act is synonymous with the termA. B. C. D.

Contract Offer Agreement None of these

Answer- B 12) A Promisee isA. B. C. D.

A person whom makes a promise A person who monitors the statement of intentions of two parties A person who accept the proposal A person who fails to perform the promise

Answer- C 13) An offer or its acceptance or both may be madeA. B. C. D.

By words By conduct Either by words or conduct neither by words or conduct

Answer- C 14) Communication of proposal is complete when it comes to the knowledge of the person to whom its madeA. B. C. D.

True Partly True False None of the above

Answer- A 15) Terms of an offer must beA. B. C. D.

Ambiguous Uncertain Definite Vague

Answer- C 16) Offeror should have an intention to obtain the consent of theA. Offeree

B. Offeror himself C. Both A and B above D. None of the above Answer- A 17) Which of the following is offerA. B. C. D.

Mere quotation of terms by trader Quotation of the lowest price in answer to an enquiry Advertisement for sale or auction of goods Bids in auction sale

Answer- D 18) An offer comes to an end when offereeA. B. C. D.

Fails to fulfil condition Does not accept the condition Either A or B above None of the above

Answer- C 19) Death of offeree before acceptance terminates offerA. B. C. D.

True Partly True False None of the above

Answer- A 20) According to Indian Contract ACT, 1872 a promise isA. B. C. D.

A communication of intention to do something A proposal which has been accepted A gentleman’s word to do something A statement on oath

Answer- B 21) Acceptance can be precede an offerA. B. C. D.

True Partly True False None of the above

Answer- C 22) If the communication is made by an unauthorized person it does not result in a/anA. B. C. D.

Contract Agreement Offer Consideration

Answer- A 23) Acceptance may be signifies eitherA. B. C. D.

In writing By word of mouth By performance of some act All of the above

Answer- D 24) In order to convert a proposal into a promise, the acceptance must beA. B. C. D.

Absolute Unqualified Express All of the above

Answer- D 25) Mare silence on the part of the offeree can also constitute a valid acceptance in all casesA. B. C. D.

True Partly True False None of the above

Answer- C 26) A sends a letter to B, offering to sell his old carriage. He asked b to reply by telegram. In such a case B shall replyA. B. C. D.

In any mode Only by telegram In any mode other than telegram In any reasonable mode

Answer- B

27) An acceptance can be revoked after acceptance come to the knowledge of the offerorA. B. C. D.

True Partly True False None of the above

Answer- C 28) It has been said that “Acceptance is to a proposal what a lighted match-stick is to be………” A. B. C. D.

A matchbox A train of gun powder A cigarette A cotton storage yard

Answer- B 29) An agreement to be agree in future isA. B. C. D.

Valid Voidable Illegal Invalid

Answer- D 30) An acceptance on telephone should beA. B. C. D.

Heard by an offeror Audible to the offeror Understood by the offeror All of the above

Answer- D 31) Consideration is one of the essential elements to support a/anA. B. C. D.

Agreement Contract Offer Acceptance

Answer- B 32) A consideration is-

A. B. C. D.

Doing or abstaining from doing something at desire of promisor A reason from making a proposal Regard for condition other party Compensation for breach of contract

Answer- A 33) Which of the following are valid considerationA. B. C. D.

Past Present Future Past, Present and future

Answer- D 34) An executed ConsiderationA. B. C. D.

Can be positive or negative Liability is outstanding on one side only As an act or forbearance against future promise All of the above

Answer- A 35) Which of the following is good and valid consideration? A. B. C. D.

Forbearance to sue Compounding with creditors Compromise of disputed claims All of the above

Answer- D 36) M promises to pay N rupees 7 lakhs if N murders K. here consideration isA. B. C. D.

Physically impossible Unlawful Illusory Valid

Answer- B 37) A finds B’s purse and give it back to him. B promises to give A Rs. 50. This is a/anA. B. C. D.

Agreement Contract Acceptance Offer

Answer- B 38) Agreement without consideration is valid whenA. B. C. D.

Out of love and affection due to near relationship To pay a time barred debt To compensate a person who has already done something voluntarily All of the above

Answer- D 39) When consideration is illegally or physically impossible uncertain it shall not beA. B. C. D.

Transferable by law Applied by law Enforceable by law Ad mitted by law

Answer- C 40) A person who is not a party to the contractA. B. C. D.

Cannot sue Can sue Can sue only in well recognised cases Can sue the government

Answer- A 41) Under the Indian Contract Act, third personA. B. C. D.

Who is the beneficiary under the contract can sue From whom consideration has proceeded can sue cannot sue even if the consideration has proceeded from him cannot sue at all for want of privity of contract

Answer- A 42) Kedar promised to pay Rs. 5000/- to car repairer the car repairer incurred expenses but Kedar refuses to pay agreed amount to repairer thenA. B. C. D.

Can repairer can claim incurred expenses The car repairer can claim Rs. 5000/The car repairer cannot claim Rs. 5000/The car repairer cannot file suit

Answer- B

43) Consideration need not necessarily be provided by the promisee it may flow from the third party also. Such a person is calledA. B. C. D.

Stranger to contract Stranger to consideration Stranger to the court Absolute stranger

Answer- B 44) The beneficiary of the trust or other interest in specific immovable property, can enforce it even if he is not a party named in the trust deedA. B. C. D.

True Partly True False None of the above

Answer- A 45) Two brothers on petition of family joint properties, agreed to invest in equal shares for their mother’s maintenance. There was no separate agreement with the mother. In such case, the motherA. B. C. D.

Cannot enforce the contract Can sue for setting aside the petition Is entitled to require her son to make the investment Is entitled to the entire property

Answer- B 46) A promisee can dispense with the performanceA. B. C. D.

In whole only In part only Wholly or in part All the above

Answer- C 47) An offer of performance is known asA. B. C. D.

Offer Proposal Tender Acceptance

Answer- C 48) Offer of promisor to perform must be madeA. B. C. D.

At the proper place At the proper time in the proper form all of the above

Answer- D 49) which of these parties cannot demand performance of promiseA. B. C. D.

Promisee Any of the joint promises On the death of the promisee his legal representative Stranger to the contract

Answer- D 50) X promises to act in the movie for Y. In this caseA. B. C. D.

X’s son can perform the promise. X’s servant can perform the promise. X’s employer can perform the promise. X must perform the promise personally.

Answer- D

51) In contract of guarantee, the person to whom guarantee is given is known as : A. B. C. D.

Creditor Surety Principal debtor Debtor

Answer- A 52) …………. signifies that the parties are not further bound under the contract A. B. C. D.

Waiver of a contract Breach of a contract Rescission of a contract Discharge of Contract

Answer- D

53) A contract stands dischargedA. B. C. D.

By performance of a contract By breach of a contract By agreement and novation By all of the above

Answer- D 54) A holds a house on lease. After that he buys the house and became the owner. The contract is discharged byA. B. C. D.

Rescission Merger Waiver Remission

Answer- A 55) Remission is acceptance of – A. B. C. D.

A lesser sum than what was contracted for A lesser fulfilment of promise made Either A or B Neither A nor b

Answer- C 56) Breaking of an obligation which one is bound to do under a contract is calledA. B. C. D.

Avoidance Breach Voidability Rescission

Answer- B 57) In case of anticipatory breach remedies available to aggrieved party areA. B. C. D.

He cannot claim damages He can wait till due date He has no right at all None of the above

Answer- B 58) ……….. means Termination of contract A. Quantum meruit

B. Rescission C. Injunction D. Specific Performance Answer- B 59) A phrase Quantum meruit literally meansA. B. C. D.

As much as earned The fact in itself A contract for sale As much as gained

Answer- A 60) If the original contract exist, the aggrieved party canA. B. C. D.

Resort to damages Claim quantum meruit remedy Either A or B Both A and b

Answer- A...