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Indian Contract Act

Practice Test 5

1 / 100

Which of the following is correct? A contract

2 / 100

A proposal is revoked:

3 / 100

A Guru (Spiritual Advisor) induced the Chela (his devotee) to gift him the whole of his property to secure benefit to his soul in the next world. The gift shall be:

4 / 100

Section 170 of Indian Contract Act deals with:

5 / 100

A contract may be vitiated by
(1) fraud
(2) mistake
(3) frustration
(4) undue-influence

6 / 100

An agent, at the time of making the contract does not disclose the name and address of his principal but it comes known to the second party afterwards. In case of any default the second party may file a suit against

7 / 100

Consider the following statements regarding fraud and misrepresentation:
1. Both render the contract voidable.
2. Misrepresentation is a cause of action in tort for damages.
Which of the statements given above is/are correct?

8 / 100

Amongst the following who is not an agent

9 / 100

Section 2(d) of Indian Contract Act says: “When, at the desire of the promisor, the promisee or any other person has done or abstained from doing; or does or abstains from doing, or promises to do or abstain from doing, something, such act or abstinence or . . . . . . . . is called a consideration for the promise.”

10 / 100

A enters into contract with B. In this, B is guilty of fraud. A can now

11 / 100

An agreement by a bailee purportive to exempt him wholly from liability for negligence is

12 / 100

A and B contract to marry each other. Before the time for the marriage, A goes and mad. The contract becomes

13 / 100

Consider the following statements:
1. Doctrine of frustration is not applicable when the rights and obligations of the parties arise under the Transfer of Property Act.
2. If and when there is frustration, the contract automatically comes to an end.
Which of the statements given above is/are correct?

14 / 100

Under Contract Act, when consent to an agreement is caused by undue influence, the agreement is a . . . . . . . . contract.

15 / 100

What will be effect of mistake of the law in force in India on the agreement?

16 / 100

What is excusable under Indian Contract law?

17 / 100

A void agreement is void ab intio but a void contract is not void ab intio.

18 / 100

Consider the following statements:
A person is said to be of sound mind for the purpose of making a contract if at the time of making it he is:
1. of the age of majority.
2. capable of understanding the contract though unable to form a rational judgment as to its effect upon his interest.
3. capable of understanding it and of forming a rational judgement as to its effect upon his interest.
Which of the statements given above is/are correct?

19 / 100

Parties by their consent/agreement-

20 / 100

A proposal as defined under Section 2(a) of the Indian Contract Act, 1872, is:

21 / 100

A takes an insurance policy on his life making a false statement about his health and does not disclose the fact that he has been treated for a serious illness. In this case, which of the following statements is correct?

22 / 100

A contracts to marry B, being already married to C, and being forbidden by the law to which he is subject to practice polygamy. This causes loss to B

23 / 100

When consideration or object of an agreement is partly unlawful, under Indian Contract Act, 1872 the agreement is:

24 / 100

A person cannot be relieved from contract which he knows to be unlawful contract

25 / 100

A contracts to act in a theatre for 6 months in consideration of a sum paid in advance by B. On several occasions A is too ill to act.

26 / 100

Which of these contracts has three parties consisting of creditor, principle debtor and surety:

27 / 100

A, the captain of B’s ship, signs of bill of lading without having received on board the goods mentioned therein. As between B and pretended consignor is concerned the bill of lading are

28 / 100

Is it an absolute proposition of law that in a contractual relationship of a principal and an agent, a principal is always bound by the acts of the agent, and an agent takes no rights or incurs no personal liability under a contract entered into by him as an agent of the principal with the third person?

29 / 100

Where there are two courts which would normally have the jurisdiction, an agreement to file suit in one of those courts alone, is

30 / 100

Agreement is defined in Sec. . . . . . . . . of the Indian Contract Act, 1872.

31 / 100

A’ agrees to pay Rs. 1,000 to ‘B’ for his giving evidence in a civil suit. The contract is:-

32 / 100

When a surety to a bond dies before, the bond is forfeited. The liability in respect of bond:

33 / 100

In which of the following cases, the Supreme Court held that the time was essence of contract?

34 / 100

When a contract is made on telephone it becomes complete at the place where acceptance is heard.
In which of the following cases it has been held so?

35 / 100

A promises to deliver his watch to B and, in return, B promises to pay a sum of Rs 2,000. This is a/an

36 / 100

In which of the following circumstances a surety stands discharged?

37 / 100

The liquidated damages are essentially-

38 / 100

Which one of the following is not provided in Sections 4 and 5 of the Contract Act?

39 / 100

The preamble of Indian Contract Act, 1872 states

40 / 100

A agrees with B to discover treasure by magic. This agreement is-

41 / 100

Which of the following act does not constitute fraud under the Indian Contract Act, 1872?

42 / 100

If minor is supplied with necessaries:

43 / 100

In Seksaria Cotton Mills Ltd. v. State of Bombay, the Supreme Court described the role of

44 / 100

As per the objective test of offer:

45 / 100

Contract the consideration and object of which is unlawful if

46 / 100

A contract which ceases to be enforceable by law becomes void

47 / 100

Which of the following deals with enforcement of contracts contingent on an event happening in the Indian Contract Act, 1872?

48 / 100

A continuing guarantee applies to

49 / 100

In case of conflict of jurisdiction of the Courts, the incident of a contract shall be governed by the law of the place where the-

50 / 100

Section 73 of the Act is based on which of the judicial pronouncement?

51 / 100

Where a contract has to be inferred from the conduct of parties, it is called

52 / 100

In the case of an alternative promise, one branch of which is legal and the other illegal-

53 / 100

“In pari delicto” means:

54 / 100

Displaying of goods in the Shopping Mall is

55 / 100

Which of the following is/are exceptions to the doctrine of privity of contract?

56 / 100

An agreement by a debtor not to raise the plea of limitation is:

57 / 100

Which one of the following is the essential of misrepresentation?

58 / 100

The nature of an agreement made under the provisions of Section 20 of the Indian Contract Act, 1872 would be

59 / 100

In cases of acceptance on phone, the contract is made

60 / 100

An agreement not to pursue legal remedies but to refer the dispute to the arbitrator under Section 28 of the Indian Contract Act is

61 / 100

Where a party to a contract has real or apparent authority over the other the consent given by that other to the contract may be vitiated because it is influenced by

62 / 100

A ‘contract of pledge’ is a contract of

63 / 100

Under the Indian Contract Act

64 / 100

A agrees to sell to B a certain quantity of gunny bags deliverable on a future day. Before the due date, B assigns his beneficial interest in the contract to C. A commits a breach of contract. Which of the following is correct?

65 / 100

What is the term used to describe a guarantee which is intended to cover a number of transaction over a period of time?

66 / 100

When consent to an agreement is caused by coercion, fraud or misrepresentation:

67 / 100

A, a man enfeebled by disease or age, is induced by B’s influence over him as his medical attendant, to agree to pay B an unreasonable sum for his professional services, B employs:

68 / 100

In order to render a contract void on the ground of mistake, the mistake may be:-

69 / 100

Which one of the following does not amount to fraud?

70 / 100

What is true of misrepresentation

71 / 100

Agreements that do not give rise to contractual obligations are not contracts.

72 / 100

Principal can revoke the authority given to the agent

73 / 100

Section 73 of the Indian Contract Act incorporates rules from which of the following cases?

74 / 100

In a contract of guarantee

75 / 100

A wagering agreement depends on

76 / 100

A valid contract at the initial stage ceases to be enforceable subsequently due to intervention of unforeseen factors. The contract will

77 / 100

In which of the following cases law of frustration was applied? Answer using given below:
(1) Paradine v. Jane
(2) Taylor v. Caldwell
(3) Krell v. Henry
(4) Cricklewood Property and Investment Trust Ltd. v. Leighton’s Investment Trust Ltd.

78 / 100

The consideration or object of an agreement is lawful, unless:

79 / 100

A compromise which is voidable under Indian Contract Act, 1872 shall not be deemed to be . . . . . . . . within the meaning of Order XXIII Rule 3 of Code of Civil Procedure, 1908

80 / 100

Illegality renders a contract

81 / 100

X’ and ‘Y’ jointly take a loan, from ‘Z’ with promise to repay the loan amount with interest within two years. Soon after taking the loan ‘X’ is declared as an insolvent and remains insolvent till the date of repayment of loan. ‘Y’ also fails to repay the loan. ‘X’ on account of his status as insolvent enjoys immunity from legal proceedings. In these circumstances:

82 / 100

Del oredere agent is a kind of:

83 / 100

Which one of the following is an essential component of a valid contract?

84 / 100

In which case of the following, an agreement without consideration may be a contract?

85 / 100

What is an agreement to discover a treasure by magic?

86 / 100

A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that before the day of the bargain the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts. The agreement is

87 / 100

When one person signifies to another his willingness to do or to abstain from doing any thing with a view to obtaining the assent of that other person to such act or abstinence he is said to make a

88 / 100

Under the Indian Contract Act a minor’s agreement has the same consequence as:

89 / 100

A promises to sell house to B, a god man without whose consent he does not take any important decision, on B’s suggestion. Later on A wants to invalidate the contract on ground that his consent for the contract was not free as it was caused by

90 / 100

In which case fraud is committed by silence?

91 / 100

A, a signer, contracts with B, the manager of a theatre for two nights in every week during the next two months, and B engages to pay her a hundred rupees for each night’s performance. On the sixth night, A willfully absents herself from the theatre, and B, in consequence rescinds the contract.

92 / 100

The case of Mohori Bibi v. Dhanno Das Ghose
1. is the decision of Supreme Court of India regarding extraordinary contracts
2. has laid down that in India a minor’s contract is void ab initio
3. has laid down that a minor’s contract becomes valid when he attains majority
Which of the above statement(s) is/are correct?

93 / 100

Lending money to a borrower at high rate of interest, when money market is tight, renders the agreement of loan

94 / 100

Where one of the joint promisors makes a default in contribution of performance

95 / 100

L’ is sent to search for G’s nephew in the meantime ‘G’ by advertisement offers a reward of Rs. 501 to anyone who finds has nephew. ‘L’ traces the boy and subsequently knowing about the reward claims it. To the reward L is:

96 / 100

X contracted with a tent house for erecting a shamiana for performing the marriage of his daughter. On the day of marriage, a curfew was clamped in the area preventing the celebration of the marriage. The shamiana owner claims the charges agreed to be paid by X. In the light of the above, which one of the following is correct?

97 / 100

Which one of the following statements is correct:-

98 / 100

Which one of the following is not an essential feature of a wagering agreement?

99 / 100

A notice in the newspapers inviting tenders is:

100 / 100

A and B contract that A shall deliver goods to B to be paid for by B on delivery.

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