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Indian Contract Act

Practice Test 12

1 / 100

When an instrument in writing does not express the real intention then either party may institute a suit for

2 / 100

A stipulation for increased interest from the date of default is known as

3 / 100

A and B being traders, entered upon a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contract

4 / 100

Which one of the following statements is correct? The communication of acceptance is complete as against the proposer as soon as:

5 / 100

In which case it was held that when charge or pledge is enforced by way of sale of the pledged or hypothecated goods the sale is for consideration and falls within the ambit of section 2(xxi) of Limitation Act

6 / 100

B, the proprietor of a newspaper, publishes, at A’s request, a libel upon C in the paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of the action in respect thereof. B is sued by C and has to pay damages and also incurs expenses. Decide in the light of Section 224 of the Indian Contract Act, 1872.

7 / 100

A promise to pay a debt barred by the law of limitation, has been made enforceable under which section of the Indian Contract Act?

8 / 100

A owes money to B under a contract. It is agreed between A, B and C, that B shall thenceforth accept C as his debtor, instead of A. This agreement is called as . . . . . . . .

9 / 100

The remedies for breach of contract are:

10 / 100

Which of the following deals with how delivery to bailee is to be made in the Indian Contract Act, 1872?

11 / 100

Surety is a person

12 / 100

Which of the following deals with agreement to do impossible act in the Indian Contract Act, 1872?

13 / 100

The case of Hochester v. De La Tour deals with:

14 / 100

Under Indian Contract Act, 1872, destruction of subject matter of contract leads to:

15 / 100

A’ asked ‘B’, “I want to purchase your bike. What will be the cost”? ‘B’ replied that the cost will not be less than Rs. 20,000. ‘A’ was interested to purchase it for Rs. 20,000. Which one of the following statement is correct?

16 / 100

A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the country in which the port is situated.

17 / 100

An agreement entered into with free consent and lawful but with inadequate consideration is

18 / 100

Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below.
Assertion (A): The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Reason (R): Section 4 of the Indian Contract Act, 1872 deals with the issue of completeness of communication.

19 / 100

Every promise and every set of promises, forming the consideration for each other, is an agreement. This has been provided under the following section of the Contract Act, 1872:

20 / 100

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

21 / 100

A continuing guarantee may at any time be revoked by the surety, as to future transactions, by . . . . . . . .

22 / 100

Misrepresentation under section 18 means

23 / 100

Responsibility of finder of goods is covered under:

24 / 100

Indemnity-holder, acting within the scope of his authority, is entitled to recover from the promisor

25 / 100

Which of the following is an offer?

26 / 100

For Specific Performance of a contract suit is to be instituted in

27 / 100

The case Nash v. Inman, (1908) 2 KBI related to-

28 / 100

A contract is not discharged by:

29 / 100

Agency can be terminated

30 / 100

Which one of the following agreements is valid?

31 / 100

An offer is:

32 / 100

In case of general offer, there is no need to communicate the acceptance if not required by the proposer. This has been held in

33 / 100

A’ contract to sing for ‘B’ at a concert for Rs. 50,000/- which are paid in advance. ‘A’ is too ill to sing on the day of the concert. The consequence is

34 / 100

Communication of a proposal is complete

35 / 100

Which one of the following combinations is correctly matched?
(1) Responsibility of finder of goods Sec. 71
(2) Surety’s liability Sec. 128
(3) Sub-agent Sec. 191
(4) Bailee’s particular lien Sec. 171
Select the correct answer using the given below:

36 / 100

A promise to subscribe to a charity is a:

37 / 100

Which one of the following does not amount to fraud

38 / 100

The defence of “non est factum” is available to the contracting party who has committed mistake as to the-

39 / 100

The essense of liquidated damage is

40 / 100

Parties are not competent to contract if any of them is:

41 / 100

“For an acceptance mere mental resolve to accept would not be sufficient; there must be some external manifestation of the intent by speech, writing or other act.”
It was held by Supreme Court in

42 / 100

A contract can be discharged:

43 / 100

Under the Indian Contract Act, 1872, which of the following agreements is not void?

44 / 100

Contract Act- Mere silence is not fraud unless

45 / 100

Inadequacy of consideration could be taken into account by the court

46 / 100

Agreement restraining legal proceeding is void only if restraint is . . . . .

47 / 100

Which of the following is a valid acceptance of a proposal?

48 / 100

Consent for a contractis free when it is caused by

49 / 100

Under the Indian Contract Act, 1872 an agreement not enforceable by law is said to be void. Under which of the following agreements is voidable?

50 / 100

A contract needs to be written, registered and signed by parties and witnessed

51 / 100

Consider the following statements about the doctrine of frustration:
1. Act has become impossible to be performed.
2. Act cannot be performed because of application of some law recently enacted.
3. Act cannot be performed because of the non-availability of raw material.
4. Act cannot be performed by defendant due to his accident.
Which of the statements given above are correct?

52 / 100

The reciprocal promises provide for doing certain things which are legal and certain others which are illegal. In view of the provisions of Section 57 of the Indian Contract Act;

53 / 100

A’ enters into a contract with ‘B’ to sell him 100 bales of cotton, and afterwards discovers that ‘B’ was acting as agent for ‘C’. For the price of the cotton ‘A’ may sue . . . . . . . .

54 / 100

The following rules as to consideration is true:

55 / 100

Which one of the following is not essential for a consideration?

56 / 100

A contract made by a minor is void ab initio. It was laid down in

57 / 100

The act of submission of a tender is:

58 / 100

Restoration of benefits received under a void contract is possible under Indian Contract Act in:-

59 / 100

In Indian Contract Act, the responsibility of finder of goods is provided under

60 / 100

The principle of ‘anticipatory breach of contract’ has been given under which Section of the Indian Contract Act, 1872?

61 / 100

In case of bailment by joint owners

62 / 100

A’ promises to paint a picture for ‘B’ –

63 / 100

Where the proposal and acceptance is through letters, the contract is made

64 / 100

An agreement made to sell a cargo of corn which was not in existence at the time of contract is:-

65 / 100

Section 27 of the Indian Contract Act, 1872 in which of the following relation an agreement in restraint of trade is valid:

66 / 100

A and B of Srinagar entered into a contract on 1st September, 2006 as per the provisions of the Indian Contract Act. Can they enforce the contract?

67 / 100

A valid guarantee can be given

68 / 100

Which of the following deals with agreement in restraint of marriage void in the Indian Contract Act, 1872?

69 / 100

When there is a breach of contract, special damages are awarded:

70 / 100

Under which provision of Indian Contract Act the bank guarantee is governed

71 / 100

An agreement in restraint of trade is valid under section 27 if relates to

72 / 100

A promises to paint a picture for B by a certain day at a certain price. A dies before the day.

73 / 100

A person, who sues for damages, under the law of contract:

74 / 100

Contract is frustrated due to frustration of:

75 / 100

Consider the following statements:
Where the tender of performance is rejected by the other party,
1. the promisor has to still perform the contract but can claim damages.
2. the promisor is excused from further performance and is entitled to sue the promisee for breach of contract.
Which of the statements given above is/are correct?

76 / 100

A promises, for no consideration, to give to B Rs. 1,000. This agreement is-

77 / 100

Consider the following objectives of the law relating to damages:
1. Enrich the party who has sustained loss by breach of contract.
2. Punish the party who has committed the breach of contract.
3. Put the party, who sustained the loss, in the same position as if the contract has been performed.
Which of the statements given below is/are correct?

78 / 100

In which of the following cases, the Supreme Court struck down a clause in service agreement whereby service of a permanent employee could be terminated by giving 3 months’ notice, as unreasonable and opposed to public policy?

79 / 100

The age of majority for the purpose of the Contract Act is

80 / 100

Pledge by a seller in possession of goods after sale is-

81 / 100

X’ a magician agrees with Z to discover treasure by magic. The agreement is:-

82 / 100

Contract Act- Give Correct response A Promises B to drop a prosecution which he has instituted against B for robbery and B promises to restore the value of the things taken

83 / 100

Claim for necessaries of life supplied to a minor under Section 68 of the Indian Contract Act, 1872

84 / 100

The consent given will be considered to be valid cons ent if there is

85 / 100

A contracts with B to grow a crop of indigo on A’s land and to deliver it to B at a fixed rate, and C guarantees A’s performance of this contract. B diverts a stream of water which is necessary for irrigation of A’s land, and thereby prevents him from raising the indigo.

86 / 100

“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 regard to the above statement is correct-

87 / 100

A invites B for coffee in coffe-day restaurant and B accepts the invitation. On the appointed date, B goes there but A is not found. In this case

88 / 100

According to Section 10 of the Contract Act which of the following is not essential to convert an agreement into a contract?

89 / 100

A promise made without any intention of performing it amounts to:

90 / 100

The basic of action under the remedy of quantum meruit is

91 / 100

According to section 16(1), Indian Contract Act: “A contract is said to be induced by “undue influence” where the . . . . . . . . . between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.”

92 / 100

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

93 / 100

The rights concerning a contract are decided by

94 / 100

A written agreement between fathers of ‘A’ and ‘B’ that ‘A’ and ‘B’ would get married on becoming major is:

95 / 100

By a contract there are two sets of promises, with one set of promises being legal, and other set of promises being illegal. In view of the statement, which one of the following is correct?

96 / 100

In case of breach of contract which of the following remedy is available to the aggrieved party?

97 / 100

A is a furniture producer at Saharanpur. B carries on business at Varanasi. B through his agent at Saharan pur, buys hundred chairs from A and requires A to deliver them to C at Saharanpur. B fails to pay the price of the chairs purchased.

98 / 100

The acceptance of a proposal should be

99 / 100

A person who supplies ‘Necessaries’ to a minor is entitled to be reimbursed from the property of the minor on the basis of a

100 / 100

When the agent contracts without disclosing name and existence of his principal, in such a case on knowing about the principal, the third party may file a suit against

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