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Indian Contract Act

Practice Test 13

1 / 100

A clause in the tender authorising the party inviting tenders to terminate the contract at any time for future supplies

2 / 100

A contract, which ceases to be enforceable by law, ceases to be enforceable. It is known as

3 / 100

B is wife of A. A during lifetime of B and with her consent makes an agreement with C to marry her (C). The agreement is

4 / 100

A suit for rectification of contract, may be allowed, if the real intention of parties are not expressed in the contract due to

5 / 100

The two main competing definitions of contract in the common law are:

6 / 100

Consider the following statements:
1. A contract with a minor is void, however, a minor can after attaining majority ratify an agreement made by him during his minority.
2. Minor is not liable for the wrongful act when the cause of action in substance is ex contractu.
Choose the correct option from below:

7 / 100

A makes a contract with B to buy B’s horse if A survives C.

8 / 100

If an acceptance on phone is drowned by noise & is not heard by the proposer

9 / 100

In case of fraud & wilful wrong by the subagent

10 / 100

For the acts of the substituted agent

11 / 100

A promisor agrees to sell his loved cow only because of financial difficulty. Whether it is a free consent under The Contract Act?

12 / 100

A proposal stands revoked

13 / 100

A promises to give Rs. 5,000 per month pocket money to his son B. If A does not give the pocket money

14 / 100

A lends rupees one lakh to B and B promises to repay it with interest @ 12% per annum after one year. The agreement also provides that if the amount is repaid within six months, the rate of interest will be 10%. The stipulation is

15 / 100

The inadequacy of consideration will be taken into account by a court of law:

16 / 100

A orders a pizza from Dominos. The Dominos delivery person accidentally delivers it to C. C eats it. Is C obliged to pay Dominos for pizza?

17 / 100

Under Section 73 of the Indian Contract Act

18 / 100

The branches Section 30 of the Indian Contract Act, 1872 declares:

19 / 100

A’ contracts to sing for ‘B’ at a concert for Rs. 1,000 which are paid in advance. ‘A’ is too ill to sing. Then:

20 / 100

A right to sue on “Quantum Merit” arises:

21 / 100

When the consent is caused by misrepresentation, the contract under section 19 is

22 / 100

Frustration of contract is provided by which section of the Indian Contract Act?

23 / 100

Following is/are essentialt(s) of valid contract as per Indian Contract Act, 1872.
(1) Parties to contract should have capacity to contract.
(2) Parties to contract should have legal mind.
(3) Parties to contract should be intelligent.
(4) Invitation to offer should be accepted.
Find correct answer:

24 / 100

A contract of guarantee may be made:

25 / 100

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

List-I (Types of Vitiating elements of a contract)
List-II (Relevant case-law)

a. Undue influence
1. Nursey Spg. and Wvg. Co. Ltd., Re

b. Misrepresentation
2. Jaggan Nath v. Secy of State for India

c. Fraud
3. Lancashire Loans v. Black

d. Mistake
4. Derry v. Peek

26 / 100

Which of the following agreements is not void?

27 / 100

Under Indian Contract Act Publication of notice inviting tender is-

28 / 100

A minor having lost his parents, is maintained by his neighbour. Whether the neighbour can seek recovery of expenses?

29 / 100

Hadley v. Baxendale is a leading English contract law case that sets the basic rule to determine consequential damages from a breach of contract. The statement is:

30 / 100

Who may employ an agent?

31 / 100

When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as-

32 / 100

J, a usual customer of B, orders certain goods on the day on which B transfers his business to the plaintiff. The plaintiff accepts the order and supplies the goods. Thereupon, J refuses to pay alleging that he has intended to contract only with B since he is having a set off against him. J

33 / 100

In which of the following cases, the Supreme Court held that, in a case of breach of contract, the proof of loss not necessary when genuine pre-estimated loss is stipulated in contract

34 / 100

An agreement not to raise the plea of limitation is-

35 / 100

Consideration should be something in return of promise which

36 / 100

An employer asks his employee/servant to sell his servant’s goods at a price for less than the market price/fair price. Servant can avoid the contract on the ground

37 / 100

The principle, performance of a condition is a sufficient acceptance without notification is contained in

38 / 100

A finds B’s purse and gives it to him. B promises to give A Rs. 50.

39 / 100

As regards third parties, the sub-agent can neither bind the principal nor the original agent

40 / 100

The judicial basis of quasi-contractual obligation can be explained through the principle of:

41 / 100

If the promisee accepts the anticipatory breach committed by the promisor, then

42 / 100

A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance. He is liable:

43 / 100

Earnest money is the sum of money deposited for the performance of the contract, so which is not correct

44 / 100

Which one among the following is the correct legal proposition

45 / 100

Match the List I with List II and select the correct answer with the help of given below:

List-I
List-II

a. Contingent Contract
1. Section 30, Contract Act

b. Wagering Contract
2. Section 25, Contract Act

c. Restraint from trade or business
3. Section 31, Contract Act

d. Agreement without consideration
4. Section 27, Contract Act

46 / 100

A tells B, “I offer to sell you my horse for an amount between Rs. 10,000 and Rs. 12,000”. Which of the following is correct about the offer? It is

47 / 100

The case related to minors agreement is void ab initio is

48 / 100

Consider the following statements and give correct answer with the help of given below:
The case of Mohori Bibee v. Dharmodas Ghose:
(1) has laid down that a minor’s contract becomes valid when he attains majority.
(2) is the decision of the Supreme Court of India regarding minor’s contract.
(3) is the decision of Privy Council regarding voidness of minor’s contract.
(4) has laid down that contract without consideration is void.

49 / 100

Tender is

50 / 100

X hands over her expensive saree for cleaning to a dry cleaner who loses the same. X claims the total value of the saree. The dry cleaner refers to a clause printed in the contract receipt which states that the dry cleaner can be held liable for Rs. 50 or 10% of the original value of the cloth only, whichever is less. Which one of the following propositions holds good to explain the correct position of law on the point?

51 / 100

Under the Indian Contract Act, an agreement by a heavily drunk person has the same consequence as that of:

52 / 100

The term “consensus ad idem” means-

53 / 100

The acceptance given by A on B’s invitation for lunch over phone is not a contract because of which one of the following?

54 / 100

Valid Contracts

55 / 100

A continuing guarantee under Section 130 is

56 / 100

The effect of ratification under the law of agency is:-

57 / 100

A’ applied for allotment of 100 shares in ‘B’ company. A letter of allotment addressed to ‘A’ was posted in due time, but it never reached ‘A’. The posting of letter of allotment:

58 / 100

Which one of the following facts constitutes a Contingent Contract?

59 / 100

Whether consideration under a contract, for the contract to be valid, can only be exchanged between the parties to the contract, and not by or between third persons who are not parties to the contract?

60 / 100

Every person is competent to contract

61 / 100

Arrange the sequence of the following concepts in which they appear in a contract, using the given below:
(1) Communication of acceptance
(2) Deceit
(3) Invitation to Offer
(4) Damages

62 / 100

A person appointed by an agent under the authority of Principal is known as:

63 / 100

Reciprocal promises provide for doing certain things which are legal and certain others which are illegal, under Section 57:

64 / 100

C, advances to B, his tenant Rs. 2,000 on the guarantee of A. C has also a further security for Rs. 2,000 by a mortgage of B’s furniture. C cancels the mortgage. B becomes insolvent and C sues A on his guarantees.

65 / 100

A proposes, by a letter sent by post, to sell his house to B. When is the last point of time when A can revoke the proposal?

66 / 100

Section . . . . . . . . to . . . . . . . . of the Contract Act, deals with principal’s duty to agent

67 / 100

A agrees to pay B Rs. 1,000 if B will marry to A’s daughter C. C was dead at the time of the agreement. The agreement is

68 / 100

An agreement in restraint of the marriage of any person other than a minor is:

69 / 100

Unlawful detaining or threatening to detain any property with the intention of causing any person to enter into an agreement would amount to which one of the following?

70 / 100

A tells B that he will pay him Rs. 1,000 when he turns 30. Is this a contingent contract?

71 / 100

Tender of performance of contract’ has been provided under which of the following Sections of the Indian Contract Act, 1872?

72 / 100

Consider the following statements:
1. When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused.
2. Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.
Which of the statements given above is/are correct?

73 / 100

The concept that says unfair or unconscionable contracts or clauses should not be enforced is known as

74 / 100

Which contract is void ab initio?

75 / 100

According to Salmond and Winfield, “A promise without consideration is a gift; one made for a consideration is a bargain.” However, in the following circumstances a contract without consideration will be perfectly valid
1. An agreement in writing made on account of natural love and affection
2. Contract of Agency
3. Promise to pay a time-barred debt
4. Oral promise made on account of natural love and affection

76 / 100

Under the Contract Act consideration may proceed:-

77 / 100

Agency stands terminated

78 / 100

The first case on the ‘doctrine of frustration’ as decided by the Supreme Court of India is-

79 / 100

A contract of life insurance falls under the category of-

80 / 100

Communication of acceptance is complete as against the acceptor only:

81 / 100

Under law of Contract, the primary aim of the law of damages is to:

82 / 100

Indian Contract Act:- Inadequacy of consideration is relevant in determining the question of-

83 / 100

“If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed.” The statement relates to:

84 / 100

Assertion (A): Minor’s contract is void.
Reason (R): Mortgage executed in favour of a minor is enforceable by him.

85 / 100

Read the following carefully:
(1) Where once time has begun to run, no subsequent disability or inability to institute a suit or make an application stops it.
(2) In the case of continuing breach of contract or in the case of a continuing tort, a fresh period of limitation begins to run at every moment of time during which the breach or the tort, as the case may be, continues.
Of the above:

86 / 100

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

87 / 100

Where persons reciprocally promise, firstly to do certain things which are legal and secondly, under specified circumstances, to do certain oth hings which are illegal the

88 / 100

When goods are delivered by one person to another for some purpose upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed off according to the direction of the person delivering them, the transaction is called a

89 / 100

What is the minimum consideration required to create an agency?

90 / 100

Which of the following acts cannot be ratified

91 / 100

Pawnee has the right to retain the goods pledge for the:
1. payment of the debt for which the goods were pledged.
2. payment of subsequent debt.
3. payment of subsequent debt if there is a contract to that effect.
4. interest on the debt and expenses for preservation of pledged goods.
Select the correct answer using the given below:

92 / 100

Revocation of offer by letter or telegram can be complete:

93 / 100

In India, the doctrine of impossibility of performance of a contract being void, is based on

94 / 100

A agrees to sell his house to B for 10,000 rupees. Here, B’s promise to pay the sum of 10,000 rupees is the consideration for A’s promise to sell the house, and A’s promise to sell the house is the consideration for B’s promise to pay the 10,000 rupees.

95 / 100

The provision which provides for Compensation for loss or damage caused by breach of contract is provided in . . . . . . . .

96 / 100

Under the contract of guarantee, the liability of the surety

97 / 100

A is a tenant of B. A is interested in payment of property tax which B is bound by law to pay. A pays the tax on behalf of owner B because B was not willing to pay it. A is:

98 / 100

Which of the following is correct statement?

99 / 100

Quantum meruit means:

100 / 100

A contracts with B to repair B’s house. B neglects or refuses to point out to A the places in which his house requires repair.

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