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Indian Contract Act

Practice Test 10

1 / 100

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

2 / 100

Arrange the following concepts in sequence in which they occur, using the given below:
(1) Offer is communicated
(2) Counter-offer is made
(3) Offer is rejected
(4) Counter-offer is accepted

3 / 100

A’ contracts to pay ‘B’ a sum of money when ‘B’ marries ‘C’. This is a type of:

4 / 100

Match the following:

a. Mc Gregor v. Mc Gregor
1. General Proposal

b. Weeks v. Tybald
2. Intention to contract

c. Henderson v. Stevenson
3. Consideration

d. Currie v. Misa
4. Reasonable notice

5 / 100

There can also be . . . . . . . . by estoppel

6 / 100

As per section 4 of the Indian Contract Act, 1872, an offer is said to be accepted:

7 / 100

Consider the following statements:
1. Moses v. Macferlan is a prominent example of theory of unjust enrichment as propounded by Lord Mansfield.
2. According to this theory, the demands of justice and equity is to prevent the unjust enrichment of one person at the cost of another.
3. Sinclair v. Brougham has propounded the theory of “Implied-in-fact” contract to elaborate the nature of Quasi Contracts.
Choose the correct option from below:

8 / 100

A sells and delivers goods to B, C afterwards without consideration, agrees to pay for them in default of B:

9 / 100

In case of non-fulfilment of the contractual obligations, only the parties to the contract can sue each other. This statement may be called as

10 / 100

‘A’ promises to make a sculpture for ‘B’

11 / 100

An Offer must be

12 / 100

Which one of the following statements with regard to contract is not correct?

13 / 100

X, a publisher of a newspaper, agrees to publish at Y’s request a defamatory article in respect of Z as Y agrees to indemnify X against the consequences of the publication. In a Suit by Z, X has to pay damages and incur expenses. Which one of the following is the correct statement regarding the liability of Y?

14 / 100

X entrust Y with negotiable instruments endorsed in blank. Y sells them to Z is violation of private orders from X. The sale is-

15 / 100

Incidents of a contract are governed by the law of the State

16 / 100

A is surety for B for a loan of Rs. One lac which B defaulted. A is liable for

17 / 100

Which one is the famous case related with the general offer?

18 / 100

Which one of the following observations is most appropriate of the given problem?
“A agrees to serve B as his house keeper and also to live in adultery with him at a fixed salary of Rs. 400 per Month”

19 / 100

A party rescinding a contract:

20 / 100

When the consent to the contract is caused by coercion, the contract under Section 19 is

21 / 100

In case of Breach of Contract, the principles for assessment of damages are given in:

22 / 100

Where the debtor has omitted to intimate, and there are no other circumstances indicating to which debt the payment is to be applied:

23 / 100

All agreements are contract if . . . . . . . .

24 / 100

Accord and satisfaction are terms related to

25 / 100

Where the consent of both the parties is given by mistake, the contract is

26 / 100

Novation amounts to

27 / 100

With the termination of authority of an agent

28 / 100

A guarantee which extends to a series of transactions under section 129 is called

29 / 100

A proposal is revoked by:

30 / 100

Where a promisor has made an offer of performance to the promisee and the offer has not been accepted:

31 / 100

Indian Contract Act:- ‘A’ and ‘B’ make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Limitation?

32 / 100

Which statement is wrong regarding “agency” under the Indian law of contract?

33 / 100

Indian Contract Act:- Which contract is specifically enforceable?

34 / 100

A employs B to recover Rs. 1,000 from C through B’s misconduct the money is not recovered B is:

35 / 100

A sells, by auction, to his daughter, a horse which ‘A’ knows to be unsound and ‘A’ says nothing about the horse’s unsoundness

36 / 100

Under Indian law consideration may be:

37 / 100

An agreement consideration is

38 / 100

“A” gives authority to “B” to sell ‘A’s land and to pay himself out of the proceeds. The debts due to him from A. In the absence of an express contract-

39 / 100

An agreement in restraint of trade is:

40 / 100

On approval of tender

41 / 100

X, being in debt to Y, the moneylender of his village, contracts a fresh loan on terms which appear to be unconscionable. That the contract was not induced by undue influence is to be proved by:

42 / 100

As per the Last shot doctrine:

43 / 100

Quasi contracts are the situations where-

44 / 100

M agrees to pay N 10,000 rupees if two parallel lines should enclose a space. The agreement is:

45 / 100

In case the promisee prescribes the manner and time of performance of promise

46 / 100

A appoints B as his agent, by way of a power of attorney. This is an example of

47 / 100

An agreement to commit a tort is

48 / 100

A calls up B and asks “Will you sell me your house? SMS me the lowest cash price.” B’s reply by SMS was “Lowest cash price for my house is rupees 1 crore.” A, immediately sent another SMS to B stating “I agree to buy your house for rupees 1 crore, as asked by you.” B did not respond and subsequently sold the house to C. B’s SMS to A was”

49 / 100

Match List I with List II

List I
Lis II

a. Carlill v. Carbolic Smoke Ball Co.
1. Offers at large

b. Fisher v. Bell Tinn
2. Invitation to treat

c. Tinn v. Hoffman
3. Question of price

d. Harvey v. Facey
4. Cross offers

50 / 100

A contract by post is concluded at the place

51 / 100

If parties to an agreement are under a mistake as to a matter of fact essential to the agreement:

52 / 100

Which of the following is not a requirement of undue influence?

53 / 100

On the valid performance of the contractual obligations by the parties, the contract

54 / 100

Find out the correct answer: The object of allowing damages in the case of breach of contract is

55 / 100

Acceptance sent through post:

56 / 100

The communication of a proposal is complete when it comes to the

57 / 100

Match List-I with List-II and select the correct answer using the given below:

List-I
List-II

a. Proposal
1. Grainger & Son v. Gough

b. Invitation to make an offer
2. Maharashtra Rajya Sahakari Kappas Utpadak Panan Mahasabha Ltd. v. Manga Bhaga Chaudhary

c. Communication of acceptance of offer by acceptor himself
3. Henthorn v. Fraser

d. Revocation of offer
4. Powell v. Lee

58 / 100

Contract cannot be said to be void on ground of

59 / 100

Contract without consideration made in writing & registered and made on account of natural love and affection is

60 / 100

Under Indian Contract Act, 1872, an agency shall stand terminated in the below mentioned case:

61 / 100

A agrees to pay Rs. 1,000 to B without consideration. This agreement is

62 / 100

The principle “Restitution stops where repayment begins” can be applied against

63 / 100

A sub-agent is responsible to the principal on which of the following grounds

64 / 100

“B” accepts the proposal of “A” by posting a letter of acceptance to “A”. This acceptance-

65 / 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?

66 / 100

Which one of the following is necessary for a contract?

67 / 100

Which one of the following constitutes an offer?

68 / 100

Which of the following is not a bar to the right to rescind the contract in cases of misrepresentation?

69 / 100

Under section 2(b) if the person to whom the proposal is made signifies his assent the proposal is said to have been

70 / 100

Which one of the following promises is enforceable?

71 / 100

Which of the following is not relevant in determining of quantum of damage

72 / 100

Rescission of the Contract means

73 / 100

An agreement, which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others-

74 / 100

Assertion (A): Marriage brokerage contract is valid.
Reason (R): Marriage brokerage contract is opposed to public policy.

75 / 100

A contract of insurance is what kind of contract?

76 / 100

Discharge of contract can happen with

77 / 100

In a contract of guarantee under Indian Contract Act, 1872, the person for whom the guarantee is given is called

78 / 100

Which of the following is not an essential element of a contract?

79 / 100

Which one of the following elements is not necessary for a contract?

80 / 100

An agreement with minor is void, hence:

81 / 100

Goods may be pledged

82 / 100

An agreement by way of wager under Section 30 is

83 / 100

The liability of surety on his death under section 131 in case of continuing guarantee

84 / 100

What is the position of a contract when it is being caused by mistake of law?

85 / 100

Duty to mitigate damages on the part of injured party arises:

86 / 100

Consider the following statements-
(1) Performance of a legal duty is no consideration for a promise.
(2) Forbearance to sue has always been regarded as valuable consideration.
(3) It is not necessary that consideration should be adequate to the promise.
Which of the above statementls is/are correct?

87 / 100

In determining the amount of any compensation awarded under section 21 of the Specific Relief Act, the court shall be guided by the principles specified in section . . . . . . . . of the Indian Contract Act, 1872

88 / 100

The pawnee has a right to retain the goods pledged:

89 / 100

Which of the following is not true in case of wagering agreements?

90 / 100

An agreement to remain unmarried under Section 26 of the Indian Contract Act is

91 / 100

Anuj says to Ramesh, “if he would be interested in purchasing his bike for Rs. 10,000?” Ramesh immediately takes Rs. 10,000 to Anuj and says he wants to buy the bike. The result is:

92 / 100

V’ places an order with ‘S’ for the supply of 20 sewing machines. ‘S’ could not supply these in time. ‘V’ loses a profitable contract due to this (a fact that was not communicated to ‘S’) and claims his loss of profit from ‘S’. But ‘V’ does not succeed as the nature of the damage is:

93 / 100

Surety on payment or performance of his liability, against the principal debtor

94 / 100

Consent will be said to be free, when it is not caused by coercion, undue influence, fraud, misrepresentation and mistake. The term ‘free consent’ has been defined in which Section of the Contract Act?

95 / 100

Under Indian Contract Act, goods displayed in a shop window with a prize label will amount to-

96 / 100

A agrees to pay B a sum of Rs. 5,000 if two straight lines should enclose a space. The agreement is

97 / 100

PRINCIPLE: A contract is an agreement enforceable by law. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object.
FACT: A, a 40-year-old businessman of sound mind, agrees to sell his bungalow worth 40 lakhs for 1 lakh. The agreement is:
(1) Invalid due to inadequate consideration
(2) Valid as there is lawful consideration
(3) Valid as A entered into it with free consent
(4) Valid because A has capacity to contract.

98 / 100

Under section 62, the original contract need not be performed if there is

99 / 100

Contract without consideration is void subject to the following exception

100 / 100

When a bookseller advertises that he has a stock of books to sell, he is making

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