1. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Important MCQ’s on Contract act
Q.1 When the consent to an agreement is obtained by undue influence, the agreement is voidable
at the option of
1. either of the parties to the agreement
2. a party whose consent is obtained
3. a party who obtained the consent
4. none of the above
Q.2 a Contingent Contract to do or not to do anything on the happening of an uncertain future
event
1. is never enforceable
2. is enforceable since the time of making it
3. becomes enforceable in the immediate possibility of happening of that event
4. becomes enforceable only on the happening of that event.
Q.3 No contract can arise, if the -
1. offer is not made to an ascertained person
2. acceptance is made by an unascertained person
3. offer is made to an ascertained person
4. acceptance is made by an ascertained person.
Q.4 Vindictive Damages have been awarded -
1. for a breach of promise to marry;
2. for wrongful dishonour of a cheque by a banker possessing adequate funds of the customer.
3. Either (1) or (2)
4. Both (1) and (2)
Q.5 Communication of a proposal is complete when it comes to the knowledge of the person to
whom it is made.
1. True
2. Partly True
3. False
4. None of the above.
Q.6 Mere silence is not fraud unless -
1. the silence is deceptive
2. there is a change in the circumstances to be brought to the notice of other party
3. there is a duty to speak
4. all the above.
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2. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.7 When two or more persons have made a joint promise, then, unless a contrary intention
appears from the contract, all such persons must fulfill the promise
1. jointly
2. severally
3. jointly and severally
4. jointly or severally.
Q.8 Where a contract consists of reciprocal promises and such reciprocal promises are to be
simultaneously performed -
1. Promisor need not perform his part of promise at all
2. Promisor need not perform his part of promise unless Promisee is ready and willing to perform
his reciprocal promise
3. Promisor has to compel Promisee to perform his promise first
4. There is no valid contract at all.
Q.9 In case of breach of contract of sale of sorne rare article or thing for which there is no
substitute in the market, the Court may grant -
1. Quantum Meruit
2. Rescission
3. Specific Performance
4. Injunction.
Q.10 A Minor's agreement is void. This was held in the case of
1. Mohiri Bibee Vs.Dharmadas Ghosh
2. Nihal Chand Vs. Jan Mohamcd Khan
3. Suraj Narain Vs.Sukhu Aheer
4. Chinnaiya Vs. Ramaiya
Q.11 In case of anticipatory breach, the damages will be assessed -
1. From the date on which the breach occurred
2. From the promised date of performance
3. From the date the Court instructs
4. From the date as desired by the promise
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3. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.12 M. by a Gift deed transferred certain property to her daughter, with a direction that
daughter should pay an annuity to M's brother, as had been done by M. On the same day, the
daughter executed a deed in writing in favour of M's brother, agreeing to pay annuity.
Afterwards, she declined to fulfil her promise saying that no consideration had moved from her
uncle. Which of the following statements is correct'?
1. The daughter is bound to pay annuity.
2. There is no valid consideration in this contract.
3. M's brother is a third party to the contract and cannot suc.
4. The daughter is not bound to pay annuity.
Q.13 To be covered under misrepresentation, statement must be wrong, but the person making it
believed it to be true.
1. True
2. Partly True
3. False
4. None of the above
Q.14 An Executory Consideration is -
1. Consideration promised by executive of a Company
2. Consideration which consists simply of a mutual exchange of promise each being a
consideration for the other
3. Consideration which should be executed on the future date
4. Consideration which should be executed before the Court.
Q.15 Offering the relief by way of specific performance of contract is :
1. At the discretion of the Court
2. right of a person and court must give it
3. Provided in the Contract Act
4. both (2) and (3)
Q.16 When a contract is divisible, and one party has enjoyed the benefit of part performance,
then, the other party may sue on quantum merit, it is
1. False
2. Partly True
3. True
4. Partly False
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4. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.17 'Privity of Contract' is subject to the exception _____ .
1. Where a trust or charge is created
2. Where payment is made to a third party
3. Where payment is made by a third party
4. None of the above
Q.18 The mother owes Rs. 10,000 to her daughter. But this debt has become barred by the
Limitation Act. The mother signs a written promise to pay Rs. 3,000 on account of the debt. In
this case which one of the following is correct ?
1. There is no contract as the debt is already barred by limitation and so it cannot be revived by a
subsequent promise.
2. There is no contract because the mother has promised to give only a part of time - barred debt.
3. This is enforceable against the mother because such a promise is valid and binding under the
Indian Contract Act.
4. None of the above
Q.19 A Quasi - contract under Indian contract Act
1. Is an agreement
2. Is a contract
3. Has only a legal obligation
4. None of these
Q.20 X' out of natural love and affection promises to give his newly wedded daughter-in-law a
golden necklace worth Rs. 20,000, 'X' made the promise in writing and signed it and delivered
the same to the daughter-in-law. This is :
1. Valid
2. Without consideration
3. Unenforceable
4. Voidable
Q.21 A contingent contract dependent on the non-happening of specified uncertain event within
fixed time can be enforced if the event _____ .
1. Does not happen within fixed time
2. Becomes impossible before the expiry of fixed time
3. Happens within the fixed time
4. Both (1) and (2)
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5. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.22 Where the contingency of event merely indicates the mode or manner of performance, the
contract is not ______ .
1. Valid
2. Void
3. Contingent
4. Lawful
Q.23 X owes Rs. 10,000 to Y under a contract it is agreed between X, Y & Z that Y shall
henceforth accept Z as his Debtor instead of X for the same amount. Old debt of
X is discharged, and a new debt from Z to Y is contracted. This is :
1. Alteration of contract
2. Rescission of contract
3. Novation of contract
4. All of the above
Q.24 When a person signifies to another his willingness to do or to abstain from doing anything,
with a view to obtaining the assent of that other to such act or abstinence,
he is said to -
1. enter into a contract
2. make a proposal
3. accept an offer
4. create legal obligation.
Q.25 An Agreement made on account of natural love and affection, but without consideration is
valid if it is
1. expressed in writing
2. registered under law for the time being in force for registration of documents
3. made between parties standing in a near relation to each other
4. all of the above.
Q. 26 Mere silence as to facts, likely to affect the willingness of a person to enter into a contract
is not Fraud.
1. True
2. Partly True
3. False
4. None of the above.
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6. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.27 An agreement which restricts a person's freedom to marry or to marry any person of his
choice is against public policy and is -
1. Lawful
2. Illegal
3. Void
4. Enforceable
Q.28 A contracts to act at a theatre for six months for Rs.5 Lakhs paid in advance by B. On
several occasions A is too ill to act. The contract to act becomes void on those occasions due to -
1. initial impossibility
2. subsequent illegality
3. subsequent impossibility
4. destruction of subject matter
Q.29 Assignment by operation of law takes place -
1. by the mutual consent of the parties
2. by the will of either party
3. when the subject matter of a contract ceases to exist
4. by the death of a party to a contract
Q.30 In which of the ways can a contract be discharged by operation of law?
1. Death of Promisor
2. Insolvency of Promisor
3. Merger of Rights
4. All of the above
Q.31 In cases of refusal to perform by any one party, the other party can -
1. ignore the notice of refusal for the time being and wait till the time when the contract is to be
executed
2. waive his right to rescission by acquiescence
3. treat the repudiation as wrongful putting an end to the contract
4. all the above.
Q.32 Death of Offeree before acceptance terminates the offer.
1. True
2. Partly True
3. False
4. None of the above.
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7. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.33 An agreement to agree in future is -
1. Valid
2. Voidable
3. Illegal
4. Invalid
Q.34 Bilateral Mistake as to fact renders an agreement void since -
1. There is no consideration
2. Such agreements are unlawful.
3. There is no agreement as there is absence of consensus.
4. It is opposed to public policy.
Q.35 An agreement entered into with free consent & lawful but inadequate consideration is :
1. Void
2. Voidable
3. Illegal
4. Valid
Q.36 As a general rule minor's agreements are :
1. Void ab initio
2. Voidable
3. Valid
4. Unlawful
Q.37 A minor's estate is liable for the ____ supplied to him :
1. Luxuries
2. Necessities
3. Necessaries
4. All the things
Q.38 In a contract both the parties believe that the subject matter of the contract is in existence
but which is infact not in existence. Agreement shall be :
1. Valid
2. Void
3. Void due to bilateral mistake
4. Void due to unilateral mistake
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8. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.39 A contract with resident of an enemy country is :
1. Illegal
2. Void
3. Valid
4. Voidable
Q.40 A servant is employed for one year on a monthly salary of Rs. 1800, the whole salary to be
paid at the end of the year. The servant wrongfully leaves the service after six months. Is the
entitled to any salary?
1. He is entitled to the whole salary
2. He is entitled to the salary of six months.
3. He is entitled to the salary which his master thinks suitable
4. He is not entitled to any salary.
Q.41 Suppose the time fixed for performance of the contract has expired but the time is not
essential. What is the remedy of the promisee in this case :
1. Can rescind the contract
2. To claim compensation
3. No remedy available
4. Can't be determined
Q.42 If time is the essence of a contract and the promisor fails to perform the contract by the
specified time, the contract :
1. Remains Valid
2. Becomes Void
3. Becomes Unenforceable
4. Becomes Voidable at the instance of the promise
Q.43 A contract can be discharged by :
1. Mutual agreement and performance
2. Lapse of time and operation of law
3. Breach of contract
4. All of these
Q.44 ______ damages are measured on the basis of extent of shock to the sentiments of promisee
1. Vindictive
2. Nominal
3. Loss of reputation
4. Discomfort
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9. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.45 E contracts to marry F. Before the agreed date of marriage, E marries K. Here, F is entitled
to sue E for :
1. Anticipatory Breach in an express manner
2. Actual Breach in an express manner
3. Anticipatory Breach in an implied manner
4. Actual Breach in an implied manner
Q.46 The basis of 'quasi contractual' relations is the :
1. Existence of a valid contract between the parties
2. Prevention of unjust enrichment at the expense of others
3. Existence of a voidable contract between the parties
4. Provisions contained in section 10 of the Indian Contract Act
Q.47 A person enjoying the benefits of a lawful non - gratuitous act of another :
1. Is liable to compensate that another
2. Has to perform the same non - gratuitous act in return
3. Is not liable to compensate that another
4. That another cannot claim any compensation
Q.48 The Contract of General Insurance is :
1. Contingent
2. Valid
3. Voidable
4. None of these
Q.49 In which case the promisor must apply for the performance:
1.where no time for performance is specified and the promise is to be performed without
demand by the promisee.
2.where no place for performance is specified and the promise is to be performed without
demand by the promisee.
3.where time for performance is specified and the promise is to be performed without demand by
the promisee
4. None of these.
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10. [THE INDIAN CONTRACT ACT,1872] December 8, 2010
Q.50 Which of the following contract is invalid?
1. A verbal promise made without consideration to compensate the person who has already done
something voluntarily or has done something which the promisor was legally bound to do.
2. A written promise to pay time barred debt
3. Completed gifts between parties who do not stand in a near relation to each other
4. A promise to pay Rs.1000 p.m. to wife for her maintenance by a Hindu Husband by a
registered document after referring to quarrels.
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