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Indian Contract Act

Practice Test 4

1 / 100

An offer was sent by post, the acceptor wrote ‘accepted’ on the letter, put it in his drawer and forgot about it. The transaction is a

2 / 100

After the expiry of time or accomplishment of purpose of bailment

3 / 100

Which one of the following statements is correct?
Doctrine of frustration comes into play

4 / 100

A has bought a house for Rs 50,000. Which of the following right is available to A after the purchase?

5 / 100

What happens to a continuing guarantee in case of surety’s death:

6 / 100

The contract of uberrima fides means

7 / 100

When a contract has been broken, the party who suffers by such breach, is entitled to receive from the party, who has broken the contract:

8 / 100

An alternative promise, one branch of which is legal and the other is illegal

9 / 100

An agreement to share the benefits of a public office is:-

10 / 100

. . . . . . . . Is forbidden by law. The Court will not enforce such a contract.

11 / 100

A lends a horse to B for his own riding only. B allows C, his close friend, to ride the horse H. C rides H with care but the horse falls accidentally. Both H and C are injured.

12 / 100

A counter offer is:

13 / 100

P’ a wholesale dealer in sugar, sells sugar to ‘Q’ with a condition that ‘Q’ shall not sell the sugar beyond one kilometer of ‘P’s godown. The agreement is

14 / 100

A delivers a piece of cloth to B a tailor to be stitched into a suit and to be returned to A. The contract between A and B is a contract of

15 / 100

When the pawnor has obtained possession of the goods pledged by him 1872, National Textile Corporation Ltd. under a contract voidable u/s 19 or 19A is of the Contract Act and if the contract is not rescinded at the time of pledge, the pawnee acquires . . . . . . . .

16 / 100

A’ promises to obtain for ‘B’ an employment in public service and ‘B’ promises to pay Rs. 1,000 to ‘A’, the agreement between ‘A’ and ‘B’:

17 / 100

Where no application is made and no time is specified for performance of promise, there the agreement be performed within-

18 / 100

Which one of the following contracts has time as the essence of the contract-

19 / 100

A contingent contract

20 / 100

X duly posts a letter of acceptance to Y. But the letter is lost in transit by the negligence of the post office.

21 / 100

A consent is said to be free when it is not caused by:

22 / 100

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

23 / 100

The doctrine of undue influences was evolved by the

24 / 100

A being the owner of a plot of land, sells the same to B through a registered sale deed in the year 2005. B however does not make full payment to A. A again sells the same land to C in the year 2010 without informing him of the earlier transaction of 2005.
Who would be the person aggrieved in these circumstances:

25 / 100

An authority given to two or more persons is generally given

26 / 100

Adomsen v.Tarois is a leading case on

27 / 100

A’ agrees to pay ‘B’ a sum of money if ‘B’ gets married to ‘C’. ‘C’ marries ‘D’. In such a situation, which one of the following statements, is correct?

28 / 100

A’ and ‘B’ contract that ‘A’ shall build a house for ‘B’ at a fixed price. The order in which reciprocal promises are to be performed was not fixed. What shall be the order of performance?

29 / 100

A’ contracts to pay ‘B’ a sum of Rs. 10,000 when ‘B’ marries ‘C’. This is a type of . . . . . . . . under Indian Contract Act, 1872.

30 / 100

An agreement to keep the offer open for a certain period of time cannot be cancelled before the expiry of that time period if

31 / 100

A pays Rs. 10,000 to B for manufacturing a machine. When it is partly manufactured, the contract is discharged by frustration. What is the remedy available to parties?

32 / 100

A becomes surety to C for B’s conduct as a manager of C’s bank. Afterwards B and C contract, without A’s permission that B shall become liable for one-fourth of the losses on overdraft. B allows a customer to withdraw and the bank losses a sum of money. To make good this loss A is-

33 / 100

In case the sub-agent is not lawfully appointed, for the acts of such sub-agent, the agent appointing the sub-agent is liable

34 / 100

Match List I with List II and select the correct answers using the from the list given below:

List-I
List-II

a. Breach of Contract
1. Impossible to Perform

b. Revocation of Offer
2. Same thing in the same sense

c. Consent
3. Compensation

d. Frustration
4. Lapse of stipulated time

35 / 100

Executory consideration

36 / 100

Contract Act – Liability of the surelty is

37 / 100

An agreement not to pursue any legal remedy to enforce the rights under section 28 is

38 / 100

A suit for money paid and received does not lie in the following set of circumstances:

39 / 100

The liability of the surety under the contract of guarantee is

40 / 100

Following are some of the exceptions under which third parties, which are strangers to the contract, can bring law suit to enforce their rights arising out of a contract
1. In cases of agency and gifts
2. In case of provisions in marriage settlement of minors
3. Beneficiaries in case of trust
4. In case provision is made for the marriage or maintenance of a female member of the family on the partition of a Hindu Undivided Family

41 / 100

Amar enters into a contract with Suresh for which Suresh is guilty of fraud. Amar can:

42 / 100

Under Indian Contract Act, 1872, if the time is essence of a contract and the promisor fails to perform the contract by the specified time, the contract:

43 / 100

A clause of one Special Voluntary Retirement Package (SVRP) stated inter alia that once option is made, the employee making the offer cannot withdraw it. Section 5 of the Contract Act states that an acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards. Decide which of the following is true?

44 / 100

If Mr. A sells a watch to Mr. X which Mr. A has obtained by inflicting undue influence on Mr. B, the title of Mr. X on the watch is

45 / 100

A enters into contract with B to marry her. Can this contract be specifically enforced?

46 / 100

Benefits received by a party under a void contract are

47 / 100

. . . . . . . . is made by words spoken.

48 / 100

Contract is said to have 3 essentials, which one among the following is not an essential element in the formation of contract:

49 / 100

A’ fraudulently informs ‘B’ that ‘A’s house is free from encumbrance. ‘B’ thereupon buys the house. The house is subject to mortgage. The contract is:

50 / 100

A proposal upon acceptance becomes a

51 / 100

Unconscionable contract is an:

52 / 100

A guarantee obtained by misrepresentation or concealment is

53 / 100

What is the responsibility of the finder of goods:

54 / 100

Number of ingredients of ‘Promise’ is-

55 / 100

Who said “Contract is an agreement creating and defining obligations between parties?”

56 / 100

A variance to the contract without surety’s consent discharges him as to subsequent transactions between principal debtor and the creditor.

57 / 100

Which one of the following statements with regard to factors vitiating consent is correct?
(1) A person is deemed to be in a position to dominate the will of another where he stands in a fiduciary relation to the other
(2) Where a person who is in a position to dominate the will of another enters into a contract with him, the burden of proving that such consent was not induced by undue influence would always be upon the person in a position to dominate the will of the other
(3) Parents shall alwaysbe deemed to be in a position to dominate the will of their children
(4) Presumption of undue influence would always arise when parties are nearly related to each other
Select the correct answer using the given below:

58 / 100

Which of the following is not correct under the Indian Contract Act, 1872?

59 / 100

Indian Contract Act: Where both parties to an agreement are under a mistake as to a matter of fact essential to the agreement, then the agreement is

60 / 100

There are two important theories of doctrine of frustration, viz., theory of implied term and

61 / 100

Special damages will be awarded in case of a breach of contract:

62 / 100

Point out the mismatched pair with reference to Indian Contract Act 1872:

63 / 100

A farmer promises to pay B Rs. 500 if it rains in the third week of June. It rains in the third week of June. The agreement is

64 / 100

A contract without consideration is void. There are exceptions of it. Which one of the following exceptions is correct?

65 / 100

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

List I
List II

a. Satyabrata Ghosh v. Mugneeram
1. Invitation to Offer

b. Raj Rani v. Prem Adib
2. Communication of Acceptance

c. Entores Ltd. v. Miles for East Corporation
3. Minor’s Agreement

d. Harvey v. Facey
4. Doctrine of Frustration

66 / 100

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

67 / 100

A ‘Contingent contract’ is a contract

68 / 100

Goods displayed in showcase of a shop with price tag is

69 / 100

“Active concealment of fact” is associated with which one of the following?

70 / 100

“When contract is broken then can an aggrieved party sue only for losses or damages which naturally arose out of the breach as also for other losses or damages which are result of breach of contract”. In view of this statement, which of the following is correct?

71 / 100

With reference to ‘fraud’ and ‘misrepresentation’, which of the statement/s is/are correct?
(1) Both render the contract voidable.
(2) Fraud renders a cause of action in tort for damages.
(3) Simple misrepresentation is also a tort.
Select the correct answer using the given below:

72 / 100

The plaintiff sees defendant’s son falling in a pond. He saves the child. Later on, the defendant promises to pay the plaintiff Rs. 1000 as reward. In this context, which one of the following propositions is correct?

73 / 100

A agrees to pay B, a teacher, Rs. 15,000 if B passed his son in the examination. B does so but A refuses to pay the money. In this case, which one of the following gives the correct legal position of the agreement?

74 / 100

A saves B’s property from fire. The circumstances indicated that he had done so gratuitously. Is A entitled to compensation from B?

75 / 100

Which of the following cases is related to the issue of minority in the Contract law?

76 / 100

Bailment means

77 / 100

Pre-contract expenditure may be recovered as damage:

78 / 100

When a contract provides for a specified sum in case of breach

79 / 100

Threatening to detain any property to the prejudice of any person with the intention of causing any person to enter into an agreement, is . . . . . . . .

80 / 100

Which one of the following agreements is not void?

81 / 100

Under the contract of guarantee, a creditor:

82 / 100

As per Contract Act, 1872, Match List-I with List-II and select the correct answer by using the given below the lists.

List-I
List-II

a. Promises express or implied
1. Section 15

b. Coercion
2. Section 9

c. Undue Influence
3. Section 18

d. Misrepresentation
4. Section 16

83 / 100

When two or more persons have made a joint promise, then, unless a contrary intention appears from the contract, all such persons must fulfil the promise:

84 / 100

An agreement would be . . . . . . . . if both the contracting parties believe in the existence of the subject matter which did not exist-

85 / 100

A, without the request of anybody, extinguishes the fire of B’s Godown. A suffers injury thereby. If B promises to compensate A for the whole amount he has spent for his treatment, then the contract is-

86 / 100

An agreement enforceable by law at the instance of one or more of the parties and not of other or others under Section 2(i) of the Indian Contract Act is called-

87 / 100

Relief for rescission is granted in cases:

88 / 100

The law relating to tender of performance is contained in:

89 / 100

The principle of ‘force majeure’ emanates from which provision of the Indian Contract Act, 1872?

90 / 100

Communication of acceptance is complete as against the proposer

91 / 100

In case of breach of contract, the party who suffers by such breach is not entitled to receive, from the party causing such breach, which of the following compensations for any loss or damage caused to him thereby:

92 / 100

Ramaiah and Laxmaiah jointly owe Rs. 10,000 to Sattaiah, Ramaiah pays the amount to Sattaiah. Laxmaiah not knowing this fact again pays Rs. 10,000 to Sattaiah. In law he is bound to repay the amount to Laxmaiah. Which provision of India Contract Act 1872, contains the principle?

93 / 100

Offer’ or ‘Proposal’ is defined in Indian Contract Act in

94 / 100

A agrees to sell his car to B at a price which B may be able to pay. This agreement is

95 / 100

“A” supplies “B” a lunatic, with necessaries suitable to his condition in his life. Whether “A” is entitled for reimbursement from the property of “B”-

96 / 100

The principle contained under Section 73 of Indian Contract Act is based on:

97 / 100

An agent can be appointed by:

98 / 100

A agrees to sell his scooter worth Rs. 10,000 to B for Rs. 5000 only and as consent was obtained by coercion. Here the agreement is

99 / 100

Which country does not recognize a past consideration?

100 / 100

A, travelling on a motor cycle met with an accident and was lying unconscious on the road. A good Samaritan brought him to a private hospital where he was treated and brought back to consciousness. When the hospital asked him to pay, he refused on ground that there was no privity of contract between him and the hospital. Decide the validity of the demand of the hospital.

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