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Indian Contract Act

Practice Test 2

1 / 100

In a contract not specifying the time for performance, the promisor can perform the contract

2 / 100

B is A’s daughter. A and B enter into a contract. A has private information of a change in price which would affect B’s willingness to proceed with the contract. A did not give this information to B. State whether the contract

3 / 100

Consider the following statements:
1. A shopkeeper’s catalogue of price is not an offer.
2. An auctioneer’s announcement that specified goods will be sold by auction on a certain day is not an offer to hold the auction.
Which of the statements given above is/are correct?

4 / 100

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

List-I
List-II

a. Doctrine of frustration
1. Taylor v. Caldwell

b. Special damages
2. Hochester v. Dela Tour

c. Anticipatory breach of contract
3. Tinn v. Hoffman & Co.

d. Cross-offer
4. Hadley v. Baxendale

5 / 100

Two persons have the capacity to contract under section 11

6 / 100

The principle of agency of necessity is

7 / 100

Under Section 20 of the Indian Contract Act, 1872 in case both the parties are under mistake as to matter of fact, the contract:

8 / 100

“A” enters into a contract with ‘B’ to buy his colour T.V., provided be obtains bank loan. This contract is called:

9 / 100

Consider the following statements with regard to the consequences of breach of contract.
1. In case of breach of contract, the party who suffers is entitled to receive compensation for any loss or damage caused to him thereby, which the parties knew, when they made the contract, to be likely to result from the breach of it.
2. Such compensation is to be given for any remote and indirect loss or damage sustained by reason of the breach.
Which of the statements given above is/are correct?

10 / 100

An agreement in connection with horse racing under Section 30 is

11 / 100

A farmer whose crop is partially destroyed every year by crickets reads an advertisement addressed to farmers to save their crop from the menace of crickets, asking them to send rupees five thousand for a machine to effectively kill crickets. A sends rupees five thousand and receivesby mail one wooden block and a hammer with the instructions ‘put a cricket on one block and hammer it and it will certainly die, repeat the performance till all the crickets are destroyed’. A rightly alleges that the contract is not binding on him as his consent to purchase the machine was obtained through

12 / 100

A’ makes a contract with ‘B’ to buy his house for Rs. 50,000 if he is able to secure a bank loan for that amount contract is:

13 / 100

A’, a tradesman leaves his goods at B’s house by mistake. ‘B’ uses the goods as his own. Then:

14 / 100

A void contract is a contract which

15 / 100

Contract Forbidden by Law are

16 / 100

Assertion (A): An agreement the object of which is opposed to the law, is void.
Reason (R): A valid contract requires that parties must contract for a lawful object.
Select the correct answer from the given below:

17 / 100

A guarantee

18 / 100

Which Article of the Constitution of India provides for “Equal Justice and Free Legal Aid”?

19 / 100

Under Section 18 of the Indian Contract Act, 1872, misrepresentation falls under:

20 / 100

The leading case of Harvey v. Facey relates to which one of the following

21 / 100

Which one of the following agreements is held to be opposed to public policy?

22 / 100

An acceptance containing additions, limitations or other modifications shall amount to

23 / 100

Match the items of List I with the items of List II and choose the correct answer from the given below.

List I (Section of Indian Contract Act 1872)
List II (Definition)

a. Section 2(f)
1. Proposal

b. Section 2(e)
2. Promisor and Promisee

c. Section 2(a)
3. Reciprocal Promises

d. Section 2(c)
4. Agreement

24 / 100

In which of the following cases was the legality of contract over telephone decided?

25 / 100

A contract of guarantee has been defined

26 / 100

In which of the following types of contract, consideration is not necessary?

27 / 100

A leaves a cow in the custody of B to be taken care of. The cow has a calf. In the absence of any contract to the contrary-

28 / 100

Extent of surety’s liability has been provided under contract Act in:-

29 / 100

When a party to a contract fails to perform a contract within the fixed time:

30 / 100

Which of the following is an exception to the rule or doctrine of privity of contract that a stranger to a contract cannot sue?

31 / 100

The Contract Act, 1872 consists . . . . . . . . sections

32 / 100

Quasi contractual obligations are based on the theory propounded by whom?

33 / 100

“Consideration is the recompense given by the party contracting to the other”: Above definition is attributed to . . . . . . . .

34 / 100

A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre two nights every week during the following two months, and B agrees to pay Rs. 100 for each night’s performance. On the sixth night A wilfully absents herself from the theatre.

35 / 100

Whether release of one co-surety discharge the others

36 / 100

The law relating to appropriation of payment under the Indian Contract Act, 1872 has been provided in which of the following Sections?

37 / 100

A proposes, by letter sent by post, to sell his house to B. The proposal of A is accepted by B by letter sent by post. When can A revoke his proposal?

38 / 100

“Continuing Guarantee” has been defined

39 / 100

An executed consideration

40 / 100

As a general rule, an agreement made without consideration is

41 / 100

‘X’, a Delhi merchant & native of Delhi entered into contract with ‘Y’, a Jabalpur merchant for the purchase of 50 quintals of Sitaphal. In Delhi Sitaphal is a vegetable, while in Jabalpur it is a fruit

42 / 100

Which contract is specifically enforceable?

43 / 100

An agreement is valid

44 / 100

A gratuitous bailment is terminated:-

45 / 100

Consider the following statements:
1. An agreement to agree in the future is void, for there is no certainty whether the parties will be able to agree.
2. Where only a part or a clause of the contract is uncertain, but the rest is capable of bearing a reasonably certain meaning, the contract will be void.
Which of the statements given above is/are correct?

46 / 100

Which of the following Sections of the Indian Contract Act, 1872 defines ‘Consideration’?

47 / 100

Under Indian Contract Act, when does an agreement becomes a contract?

48 / 100

X’ on 1st July, 2018 agrees to sell his house to ‘Y’ for a price of Rs. 1 crore, if the entire price is paid on or before 31st July, 2018 and for the price of Rs. 1,25,00,000/- after 31st July, 2018 but before 30th September, 2018. It was further agreed that if the entire price is not paid by 30th September, 2018, ‘Y’ shall not be entitled to purchase the house and the earnest money paid by ‘Y’ to ‘X’ shall stand forfeited. Such an agreement:

49 / 100

Promises which form the consideration or part of the consideration for each other are called

50 / 100

Surender’s dog is lost. He advertises in a newspaper – “Anyone who finds the dog will get a reward of Rs. 20,000.” This advertisement is:

51 / 100

Which of the following is not an essential of a contract of guarantee

52 / 100

The loss or damage arising from a breach of contract has to be ascertained

53 / 100

Quasi contract emerged from:

54 / 100

A contract which is valid initially however, ceases to be enforceable subsequently, the contract-

55 / 100

To convert a proposal into a promise the acceptance must be:

56 / 100

In case of death of a joint promisor(s) the promisee

57 / 100

The Indian Contract Act, 1872 became operative from the date of

58 / 100

Indian Contract Act:- A ‘contract of insurance’ is a contract of-

59 / 100

On which of the following grounds a party to a contract cannot be discharged from performing it?

60 / 100

An agreement to ‘sale of goodwill’ for a specified area, to which the purchaser agreed is . . . . . . . .

61 / 100

Which of the statements given below is/are correct?
1. An agreement, without consideration, in writing and registered, made on account of natural love and affection between parties standing in a near relation, is a valid contract.
2. If any part of a single consideration for one or more objects, is unlawful, the agreement is a voidable contract.

62 / 100

A, who is B’s ‘mukhtar’, promises to exercise his influence, as such, with B in favour of C, and C promises to pay Rs. 20,000 to A. The agreement is

63 / 100

Indian Contract Act:- Two parties entered into contract. They later realized that there was a mistake in their understanding of law as applicable in India. This make their contract

64 / 100

Wagering Agreement are

65 / 100

Agent is a

66 / 100

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

67 / 100

A finder of goods is

68 / 100

Nudum Pactum means

69 / 100

Hadley v. Baxendale, (1854) 9 Exch 34 deals with:

70 / 100

A person is deemed to be in a position to dominate the will of another by undue influence if the mental capacity is affected temporarily or permanently by

71 / 100

The rule enunciated by Section 65 of Indian Contract Act, 1872 is applicable to agreements which are discovered void by

72 / 100

A servant is engaged by the master under . . . . . . . .

73 / 100

Contingent agreements to do or not to do anything, if an impossible event happens . . . . . . .

74 / 100

An agreement without consideration is

75 / 100

A contracts to pay B a sum of money when B marries C. C dies without being married to B.

76 / 100

Change of the nature of the obligation in a contract is known as:

77 / 100

What is reasonable time for performance of a contract

78 / 100

Which of the following sections of the Indian Contract Act, 1872 imposes on a person, who sues for damages, a duty to mitigate the loss consequent upon the breach of contract?

79 / 100

If the co-sureties are bound in different sums, they are liable to pay

80 / 100

An agreement made by mistake is

81 / 100

When the promisor offers to perform his obligation to the promisee, it is called

82 / 100

Which of the following statements are correct?
(1) A minor fraudulently misrepresenting his age is not stopped from denying the truth of his statement.
(2) A minor fraudulently misrepresenting his age is stopped from denying the truth of his statement.
(3) Estoppel does not operate to render a statute ineffective and so minor’s agreement is always void.
Choose the correct answer from the given below:

83 / 100

Unlawful consideration and object have been mentioned under which section of the Indian Contract Act, 1872?

84 / 100

The intimation under Section 59 of the Indian Contract Act, 1872

85 / 100

A contract between an insurance company and vehicle owner to save the later from consequences of a vehicular accident is a contract of

86 / 100

Provision for the prevention of unjust enrichment of a person is contained in:

87 / 100

The Indian Contract (Amendment) Act, 1997 has amended:

88 / 100

Consider the following statements:
1. An auctioneer’s announcement to sell an artifact through auction on a certain day is not an offer but only an invitation to offer.
2. The highest bid in an auction is merely an offer which an auctioneer mayor may not accept.
Which of the statements given above is/are correct?

89 / 100

While determining damages for breach of contract, which of the following are taken into account?

90 / 100

An offer which is allowed to remain open for acceptance over a period of time is known as:

91 / 100

Bank of India v. O. P. Swarankar, AIR 2003 SC 858 is an important judgment on the following issue:

92 / 100

In which of the following cases it was held that the “Liability of guarantor is coextensive with that of principal debtors”?

93 / 100

Who can appoint an agent

94 / 100

A minor’s agreement

95 / 100

“Coercion” under Indian Law is also known as

96 / 100

Section 73 of the Contract Act applies to contract

97 / 100

A can tracts to sell and deliver 50 maunds of saltpetre to B, at a certain price to be paid on delivery. A breaks his promise.

98 / 100

Bailment involves

99 / 100

In which of the following sections, the Indian Contract Act embodies the rule of Clayton’s case relating to appropriation of payments?

100 / 100

Finder of lost goods under Indian Contract Act, 1872 is a:

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