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Contract Act-I MCQs Set-1
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There are 2 Sets of MCQs available for The Indian Contract Act-I, you are advised to explore all the sets :
1. The Indian Contract Act came into force on-
a. 1st October, 1872
b. 15th October, 1872
c. 1st September, 1872
d. 19th April, 1872
2. A proposal as defined under Section 2(a) of the Indian Contract Act, 1872, is:
a. Communication from one person to another
b. Suggestion by one person to another
c. Willingness to do something
d. Willingness to do or abstain from doing an act in order to obtain the assent of other thereto
3. The juristic concept of contract consists of:
a. free consent and capacity
b. offer and acceptance
c. consideration and undue influence
d. agreement and obligation
4. The law of contract essentially determines the circumstances in which-
a. A promise shall be legally binding on the promisor
b. A promise may not be made
c. A promise may be made
d. A contract is a tort and crime
5. The starting point of an agreement is-
a. Offer
b. Invitation to offer
c. Advertisement
d. Acceptance
6. The display of articles in a showroom with prices amounts to:
a. Offer to sell articles at prices mentioned
b. Counter offer
c. Invitation to offer
d. Mere advertisement
7. When a man advertises that he has stock of books to sell, he is making:
a. an offer
b. an invitation to offer
c. a special offer
d. a standing offer
8. When goods are displayed in a shop window with price tags attached to them, the offer comes from the:
a. offeror
b. shop owner
c. general public
d. customer
9. Which of the following is an offer?
a. Menu card at a restaurant
b. Banker’s catalogue of charges
c. A bid at an auction sale
d. All of the above
10. Tender is:
a. an offer
b. an invitation to offer
c. a counter offer
d. a promise
11. Union of India v. Maddala Thathaiah is an illustration, where the tender was in the form of
a. Public offer
b. Standing offer
c. Specific offer
d. General offer
12. An advertisement of auction is:
a. proposal
b. mere statement
c. invitation to offer
d. standing offer
13. An offer can be made to-
a. A particular person
b. Particular class of person
c. World at large
d. All of the above
14. In case of general offer, there is no need to communicate the acceptance if not required by the proposer. This has been held in:
a. Carlill v. Carbolic Smoke Ball Co.
b. Bhqgwandas v. Cirdharilal
c. Calmon Shukla v. Gauri Dutt
d. Kamji Dayawala and Sons v. Investment Import
15. An offer made to the public at large is called.
a. Valid offer
b. Specific offer
c. General offer
d. None of the above
16. A general offer open for world at large can be accepted:
a. By sending a communication of acceptance
b. By complying with the conditions of offer
c. By tendering himself to comply the conditions of offer
d. None of the above
17. Which judicial pronouncement of the Queen’s Bench of England had dealt with the concept of ‘general offer?
a. Carlill v. Carbolic Smoke Ball Co.
b. Balfour v. Balfour
c. Taylor v. Partington
d. Spencor v. Harding
18. A calls up B and asks “Will you sell me your house? SMS me the lowest cash price.’ B’s reply by SMS was “Lowest cash price for my house is rupees 1 crore.” A, immediately sent another SMS to B stating “I agree to buy your house for rupees 1 crore, as asked by you.’ B did not respond and subsequently sold the house to C. B’s SMS to A was”
a. An offer
b. An acceptance
c. An invitation to receive offer
d. none of the above
19. What sent a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as?
a. An invitation to offer
b. An obligation to sell book
c. An offer
d. A promise to make available the books at the listed place
20. A tender in a newspaper is:
a. invitation to offer
b. promise
c. offer
d. invitation for acceptance
21. ‘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:
a. Entitled
b. Not entitled as the offer is general
c. Not entitled as the consideration is inadequate
d. Is not entitled as the offer was not communicated to him
22. X applied for the post of Principal of a local college and the governing body passed a resolution appointing him. After the meeting, one of the members of the governing body privately informed him of the resolution. Subsequently, the resolution was rescinded. X claims damages.
In this context, which one of the following propositions is correct?
a. ‘X’ cannot claim damages as there was no communication
b. ‘X’ can claim damages as there was private communication of resolution
c. ‘X’ is not qualified for the post, so he cannot claim damages
d. the governing body cannot rescind the resolution once passed, so ‘X’ can claim damages
23. Lending money to a borrower at high rate of interest, when money market is tight, renders the agreement of loan
a. void
b. valid
c. voidable
d. illegal
24. Who said that “An offer need not be made to an ascertained person, but no contract can arise until it has been accepted by an ascertained person”?
a. Lord Atkin
b. Lord Goddard
c. Cheshire and Fifoot
d. Anson
25. 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 may or may not accept.
Which of the statements given above is/ are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
26. What is the terminology used to describe a situation when two parties make identical offers to each other in ignorance of each other’s offer?
a. Offer
b. Cross offer
c. Counter offer
d. Conditional offer
27. Which of the following statements is/ are correct?
1. Counter offer puts an end to the original offer.
2. In counter offer, the previous offer can be revived.
3. Acceptance must be absolute and unqualified.
4. Acceptance with new terms is valid.
Select the correct answer using the code given below:
Codes:
a. 1 only
b. 1 and 3
c. 2 and 3
d. 3 and 4
28. 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:
a. Valid contract
b. A voidable contract
c. A void contract
d. No agreement as the acceptance was never communicated to the proposer
29. Which one of the following constitutes an offer?
a. Display of goods with price tags in a self-service shop
b. Advertisement announcing a reward of Rs. 5000 to any person who would find the missing dog of the advertiser
c. When a man advertises that he has a stock of books to sell at a flat rate of Rs. 100 per book
d. An auctioneer’s announcement that specified goods will be sold by auction on a certain day
30. Which one of the following is explicitly stated in Section 2(b) of the Indian Contract Act 1872?
a. A proposal, when accepted becomes a promise
b. A proposal, when accepted become a contract
c. A proposal, when accepted becomes an agreement
d. A proposal, when accepted becomes assurance
31. A proposal when accepted becomes:
a. Promise
b. Agreement
c. Contract
d. Acceptance
32. “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-
a. Fazal Illahi v. East Indian Railway Co.
b. M. Nanjappa v. M.F. Muthuswamy
c. Dugdak v. Hovering
d. Bhagwan Das v. GirdhariLal & Co.
33. Which of the following Sections of the Indian Contract Act, 1872 defines ‘Consideration’?
a. Section 2(a)
b. Section 2(b)
c. Section 2(c)
d. Section 2(d)
34. Under the Indian Contract Act consideration-
a. may proceed from the promisee
b. may proceed from any other person
c. both A and B
d. neither A nor B
35. Which of the statements as to consideration is not correct:
a. It may be past also
b. It need not be adequate
c. Stranger to it cannot sue
d. It must be real
36. Consideration means:
a. must have some value in the eyes of law
b. must be real
c. must not be illusory
d. all are correct
37. Which of the following is correct?
a. Past consideration is no consideration
b. Consideration can only be future
c. Consideration can only be present
d. Consideration can be past, present or future
38. Which one of the following pairs is correctly matched?
a. In India, Consideration must follow from Promisee only
b. In India, Consideration must follow from only Promisor or only Promisee
c. In India Consideration must follow from Promisor or any other person
d. In India, Consideration must follow Promisee or any other person
39. Which one of the following is not essential for a consideration?
a. It must be given at the desire of the promisor
b. Valuable
c. Lawful
d. Adequate
40. Consider the following statements-
1. Performance of a legal duty is no consideration for a promise.
2. Forbearance to sue has always been regarded as valuable consideration
3. It is not necessary that consideration should be adequate to the promise
Which of the above statement/s is/are correct?
a. 1 only
b. 2 and 3
c. 1, 2 and 3
d. l and 2
41. An agreement entered into with free consent and lawful but with inadequate consideration is
a. unlawful
b. lawful
c. void
d. voidable
42. Consider the following statements:
1. According to Justice Patterson, consideration may be some benefit to the plaintiff or some detriment to the defendant.
2. According to Section 2(d) of the Indian Contract Act, the definition of consideration requires that the act or abstinence should be done by promisee only.
Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
43. ‘A’ promises to provide maintenance allowance to her maternal uncle in consideration of certain properties gifted to her by her mother. ‘A’ refuses to pay maintenance amount and maternal uncle institutes suit against ‘A’ to enforce the promise. Which one of the following is the correct statement? Maternal uncle :
a. will not succeed as he being a stranger to consideration cannot sue upon the contract
b. will succeed because according to the Indian Contract Act consideration may be given by the promisee or any other person
c. will succeed because he is near relative arid in such cases consideration is not necessary
d. will succeed because consideration given by a near relation may be treated as consideration given by the promise
44. 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:
a. Unenforceable because it is immoral
b. Void for want of consideration
c. Voidable
d. Enforceable
45. Every promise and every set of promises forming the consideration for each other is:
a. an agreement
b. an acceptance
c. an offer
d. a contract
46. An agreement not enforceable by law is said to be:
a. void
b. voidable contract
c. illegal contract
d. quasi-contract
47. The concept that says unfair or unconscionable contracts or clauses should not be enforced is known as:
a. Pacta Sunt Sarvanda
b. Prima Facie
c. Abus de droit
d. Culpa in Contra hendo
48. Match the following:
a. Mc Gregor v. 1. General Proposal
Mc Gregor
b. Weeks v. 2. Intention to contract
Tybald
c. Henderson v. 3. Consideration
Stevenson
d. Currie v. 4. Reasonable notice
Misa
code:
A B C D
a. 2 3 1 4
b. 2 1 4 3
c. 4 3 2 1
d. 4 2 3 1
49. Which one of the following ingredients is not necessary for contract
a. Proposal
b. Acceptance
c. Consideration
d. Property
50. Which of the following is correct?
A contract -
a. may be oral
b. must be in writing
c. must be made in the presence of witnesses
d. must be written on a stamp paper.
51. In the formation of a Contract which is not among the three essentials:
a. Damages
b. Consideration
c. Offer
d. Acceptance
52. According to Section 2(h) of the Indian Contract Act, a “Contract” is:
a. an agreement between two or more parties
b. a promise to do something
c. an acceptance of an order
d. an agreement enforceable by law
53. An agreement not enforceable by law is said to be void under-
a. Section 2(d)
b. Section 2(e)
c. Section 2(f)
d. Section 2(g)
54. 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:
a. A valid contract
b. An illegal contract
c. A void contract
d. A voidable contract
55. A contract which is valid initially, however, ceases to be enforceable subsequently, the contract-
a. remains valid.
b. becomes voidable when it ceases to be enforceable.
c. becomes void when it ceases to be enforceable.
d. becomes void since inception.
56. Which one of the following statement is correct?
A voidable contract is an agreement which is:
a. Enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others.
b. Enforceable by the parties thereto.
c. Enforceable with the permission of the court
d. Not enforceable by any of the parties thereto.
57. Privity of Contract is that the:
a. parties to the contract can sue each other
b. beneficiary to the contract can sue the parties
c. parties to the contract can sue the third party
d. both B and C
58. Assertion (A) : A stranger to a contract cannot enforce the contract
Reason (R) : He is not party to contract and cannot take benefit
a. (A) and (R) both are true and (R) is correct explanation of (A)
b. (A) and (R) both are true, but (R) is not the correct explanation of (A)
c. (A) is true, but (R) is false
d. (A) is false, but (R) is true
59. The doctrine of privity of contract means that:
a. a contract is a private affair between the parties.
b. consideration can be supplied only by the parties to contract.
c. the contract can be enforced "only by a civil and private action.
d. only parties to contract can sue and be sued upon the contract.
60. Which of the following is an exception to the rule or doctrine of privity of contract that a stranger to a contract cannot sue?
a. Family settlement
b. Mortgage
c. Agency
d. Both A and C
61. Exceptions to the doctrine of ‘privity of contract’ do not include:
a. beneficiaries under a charge
b. equitable mortgage
c. estoppel
d. marriage settlement
62. The acceptance given by A on B’s invitation for lunch over phone is not a contract because of which one of the following?
a. The acceptance was given orally
b. The parties did not talk face-to-face
c. There is no intention to create a legal obligation
d. Invitation cannot be proved in the court of law
63. Which one of the following is essential for a valid contract under the Indian Contract Act, 1872?
a. Meeting of the parties to discuss consideration
b. Meeting of the parties for searching legality of rights
c. Meeting of minds of the parties
d. Meeting of parties to discuss proposal and acceptance
64. Which is correct?
a. Proposal + acceptance = promise
b. Promise + consideration = agreement
c. agreement + enforceability = contract
d. all of the above
65. Which one of the following essentials of contract does not find place in the Indian Contract Act, 1872?
a. Competency of Parties
b. Real consideration
c. Intention of contract
d. Lawful object
66. Difference between a contract and social agreement is that of:
a. consideration
b. intention to create legal relationship
c. consensus ad idem
d. certainty of performance
67. The test of intention to contract is-
a. Depends on case
b. Subjective
c. Objective
d. None of the above
68. The correct sequence in formation of contract is:
a. offer, consideration, acceptance, agreement
b. agreement, consideration, offer, acceptance
c. offer, acceptance, agreement, consideration
d. offer, acceptance, consideration, agreement
69. A unilateral contract in which only one party is bound, is also known as a:
a. Fault contract
b. Implied contract
c. Executed contract
d. Executory contract
70. The words not defined in the Specific Relief Act shall be understood according to:
a. The Indian Contract Act
b. The Indian Succession Act
c. Transfer of Property Act
d. None of the above
71. A standard from of contract is one in which-
a. The terms are fixed by the government of the State to which the contracting party belongs
b. The terms are pre-determined by the custom of the trade to which the contracting parties belong
c. The terms on which mercantile transactions of common occurrence are to be carried out
d. The terms are fixed by one of the parties in advance and open to acceptance by any one
72. Standard form of contract is also known as:
a. contract of adhesion
b. unilateral contract
c. specific contract
d. both A and B
73. Which contract is specifically enforceable?
a. Contract by 'B' to deliver a lecture of law at Jabalpur University.
b. Contract of Marriage
c. Contract by 'B' with 'A' to supply’ goods as of when A' requires.
d. None of these
74. Which one of the following is not provided in Section 4 of the Contract Act, 1872?
a. Communication of a proposal
b. Communication of acceptance
c. Communication of revocation
d. Revocation of proposals and acceptance
75. In which of the following cases a proposal can be revoked when it is made by post?
a. Before the promisee posts his letter of acceptance
b. Till the letter of acceptance reaches the promisor
c. Till the promisee receives the acknowledgement that the letter of acceptance has been delivered to the promisor
d. Proposal once made cannot be revoked
76. A revokes his proposal made to B by telegram. Under Section 4 of the Indian Contract Act, 1872, the revocation is complete as against A when the telegram is:
a. Received by B
b. Dispatched by A
c. Both A and B
d. None of the above
77. Consider the following statements:
In Bhagvandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co. it was laid down that
1. Section 4 does not imply that the contract is made qua the proposer at one place and qua the acceptor at another place.
2. the communication of acceptance should be from a person who has the authority to accept. Information received from an unauthorized person is ineffective.
Which of the statements given above is/are correct?
a. 1 only.
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
78. In case of acceptance by post, at what point the acceptance is complete as against the proposer?
a. When the letter of acceptance is put in the course of transmission so as to be out of power of the acceptor.
b. When the letter of acceptance has been written.
c. When the letter of acceptance has been received.
d. When the letter of acceptance has been read by the proposer.
79. Acceptance sent through post:
a. cannot be revoked at all
b. can be revoked at any time
c. can be revoked only if it does not reach the offeror
d. can be revoked before it comes to the knowledge of the offeror
80. ‘A’ proposes by letter to sell a house to ‘B’ at a certain price. The communication of proposal is complete when:
a. ‘A’ posts the letter
b. A’ has completed the writing of letter
c. A’ gets information about the posting of the letter
d. ‘B’ receives the letter
81. X duly posts a letter of acceptance to Y. But the letter is lost in transit by the negligence of the post office.
a. There is no contract concluded, because the acceptance has not reached the proposer.
b. There is no contract concluded, because the proposer had not received the letter.
c. The contract is concluded, because the acceptance is complete, from the date of dispatch, notwithstanding any delay or miscarriage in its arrival from causes not within the acceptor’s control.
d. None of the above.
82. When the acceptance, is made by telephone then the contract is deemed to be made at such place:
a. where acceptance is heard or received
b. where the acceptance is given
c. where the acceptor resides
d. None of the above
83. In which case it was held that a contract through telephone is concluded at the place where acceptance is heard?
a. Lalman Shukla v. Gauri Dutt, (1913) XL ALJR 489 (All).
b. Carlill v. Carbolic Smoke Ball Co., (1981-4) All ER Rep 127
c. Bhagwandas Goverdhandas Kedia v. M/ s Girdhar Lal Purshottam dr Co., AIR 1966 SC 543.
d. Satyabrata Ghose v. Mugneeram Bangur &Co., AIR 1954 SC 44.
84. Consider the following statements:
The communication of an acceptance is complete
1. as against the acceptor when it comes to the knowledge of the proposer.
2. as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor.
Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither1 nor 2
85. A contract by post is concluded at the place
a. from where the offer had been made
b. from where the acceptance had been posted
c. where the acceptance had been received
d. where the goods are to be delivered
86. 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:
a. Contract is made
b. Contract is performed
c. Acceptor resides
d. Proposer resides
87. A proposal cannot be revoked:
a. by failure of the acceptor to fulfil a condition precedent to acceptance
b. by lapse of the time prescribed in the proposal for its acceptance
c. by insanity of the proposer, if the fact of insanity comes to the knowledge of the acceptor before acceptance
d. after the communication of its acceptance is complete
88. Revocation of offer by letter or telegram can be complete:
a. when it is received by the offeree
b. when it is dispatched
c. when it reaches the offeree
d. both A and C
89. Which of the following is correct under the Indian Contract Act, 1872?
a. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards
b. All agreements are contracts but all contracts are not agreements
c. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of sound mind
d. The communication of a revocation is complete, as against the person to whom it is made, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it.
90. 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?
a. A may revoke proposal after B sent letter of acceptance by post
b. A can revoke proposal at any time before B sent letter of acceptance
c. Both A and B are correct
d. None of the above
91. A proposal is revoked:
a. Only by the death or insanity of the proposer itself
b. By the death or insanity if the fact of the death or insanity comes to the knowledge of the acceptor
c. By the death or insanity of the proposer if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance
d. None of the above is correct
92. To convert a proposal into a promise the acceptance must be:
a. Qualified
b. Unqualified
c. General
d. Absolute and unqualified
93. Which of the following is a valid acceptance of a proposal?
a. When an acceptance is made in ignorance of the proposal
b. When an acceptance is made in usual and reasonable manner but not in a manner prescribed by the proposer
c. When an acceptance is made in a manner prescribed by the proposer
d. None of the above
94. Where no application is made and no time is specified for performance of promise, there the agreement be performed within:
a. Three years
b. Two years
c. One year
d. Reasonable time
95. Which one of the following statements is not correct?
a. Oral acceptance is a valid acceptance
b. Acceptance must be in writing
c. Acceptance must be communicated
d. Acceptance must be in the prescribed manner
96. All agreements are contract if:
a. They are made by the free consent of parties competent to contract
b. For a lawful consideration and with a lawful object
c. Not expressly declared to be void
d. All of the above
97. Section 10 of Indian Contract Act requires conditions for an agreement to become a contract.
a. 3
b. 5
c. 6
d. 4
98. Which one of the following is correct?
a. All agreements are contracts once they have been made between the parties for a consideration
b. All agreements are contracts once they have been made between the parties with their free consent
c. All agreements are contracts once they have been made between the competent parties
d. All agreements are contracts if they are made by the free consent of parties competent to contract for lawful consideration and lawful object and not expressly declared by law to be void
99. Under Indian Contract Act, when does an agreement becomes a contract?
a. It is enforceable by law
b. It is between parties competent to contract
c. It is by the free consent of parties
d. All of the above
100. 'Which one of the following is an essential component of a valid contract?
a. Competence and the contractual capacities of the parties
b. Dominance of one party over the other
c. Legal influence of the parties
d. Social and economic pressures, the parties are exposed to
101. Following is/are essential(s) of valid contract as per Indian Contract Act, 1872;
I. Parties to contract should have capacity to contract:
II. (ii) Parties to contract should have legal mind.
III. (iii) Parties to contract should be intelligent.
IV. (iv) Invitation to offer should be accepted.
a. Only (i) and (iv) are correct
b. Only (i) is correct
c. All of above are correct
d. Only (ii) is correct
102. According to Section 10 of the Contract Act which of the following is not essential to convert an agreement into a contract?
a. Free consent
b. Competence to contract
c. Lawful consideration with lawful object
d. Certainty of terms of the agreement
103. Every person is competent to contract-
a. who is of the age of majority according to the law to which he is subject.
b. who is of sound mind.
c. who is not disqualified from contracting by any law to which he is subject.
d. all the above.
104. Competency to contract relates to:
a. Age of the parties
b. Soundness of mind of the parties
c. Both age & soundness of mind
d. Intelligence of the parties
105. A minor enters into agreement representing himself to be major. Consider the following statements:
1. Minor commits fraud if the other party does not have personal knowledge of his age
2. Such agreement is enforceable
3. The doctrine of estoppel does not apply in minor’s case
4. Other party is entitled to get back the benefit passed to minor, if innocent about his age
Which of the statements given above are correct?
a. 1 ,3 and 4
b. 2 and 3
c. 1,2 and 4
d. 2 and 4
106. Following is a case on Promissory Estoppel:
a. KedarNath v. Gorie Mohammed
b. Delhi Cloth and General Mills ltd. v. Union of India
c. Both A and B
d. None of the above
107. Assertion (A): ‘A’ supplies necessary necessities to ‘B’, a minor. ‘A’ can recover the payment from the estate of ‘B’.
Reason (R): An agreement with a minor is void ab initio
Codes:
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
c. (A) is true but (R) is false
d. (A) is false but (R) is true
108. Assertion (A): Minor’s contract is void.
Reason (R): Mortgage executed in favor of a minor is enforceable by him.
Code:
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
c. (A) is true but (R)’is false
d. (A) is false but (R) is true
109. An agreement with minor is void, hence:
a. Minor is never allowed to enforce such agreement
b. Minor is always allowed to enforce such agreement
c. Minor is allowed to enforce such agreement, if it was made for his benefit
d. Minor is allowed to enforce such contract when other party makes no objection
110. The case of Mohiri Bibi v Dharmo Das Ghose-
I. is the decision of Supreme Court of India regarding extraordinary contracts
II. has laid down that in India a minor’s contract is void ab initio
III. has laid down that a minor’s contract becomes valid when he attains majority
Which of the above statements) is/are correct?
a. (I) and (III)
b. (III) alone
c. (I) and (II)
d. (II) alone
111. A contract with or by a minor is a:
a. Valid contract
b. Void contract
c. Voidable contract-
d. Voidable at the option of either party
112. The age of majority for the purpose of the Contract Act is
a. 18 years
b. 21 years
c. 16 years for girls and 18 years for boys
d. 18 years for girls and 21 years for boys
113. The principle “Restitution stops where repayment begins” can be applied against
a. An alien enemy only
b. Any incapable person
c. Lunatics and idiots only
d. Minors only
114. According to Section 11 of the Contract Act, a person is incompetent to contract who is a:
a. minor
b. person of unsound mind
c. person disqualified from contracting by any law
d. All of the above
115. The case Mohori Bibi v. Dharmodas Ghose is based on which provision of the ICA, 1872
a. Section 11
b. Section 9
c. Section 13
d. Section 12
116. In the Nash v. Inman case, the issue was:
a. Minor’s liability
b. Frustration
c. Fraud
d. Misrepresentation
117. A patient in a lunatic asylum who is at intervals of sound mind:
a. May not contract
b. May contract on Medical certificate
c. May contract during intervals
d. May contract after complete sound mind
118. Consent will be said to be free, when it is not caused by coercion, undue influence, fraud, misrepresentation and mistake. The term ‘free consent’ has been defined in which Section of the Contract Act?
a. Section 14
b. Section 15
c. Section 16
d. Section 7
119. A consent is said to be free when it is not caused by:
a. Coercion
b. Undue influence
c. Fraud
d. All of these
120. The consent obtained by threatening to commit suicide amounts to consent by:
a. Coercion
b. Undue influence
c. Fraud
d. None of these
121. “Coercion” under English Law is also known as
a. Duress
b. Voidable agreement
c. Void Agreement
d. Both A and B
122. Unlawful detaining of the retaining to detain any property with the intention of causing any person to enter into an agreement would amount to which one of the, following?
a. Unlawful detention
b. Duress
c. Undue influence
d. Coercion
123. 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?
a. Agreement in restraint of legal proceedings
b. Agreement in restraint of trade
c. Agreement under coercion
d. Agreement in restraint of marriage
124. What is committing or threatening to commit any act forbidden by the IPC (BNS) or the unlawful detaining or threatening to detain any property to the prejudice of any person with the intention of causing any person to enter into an agreement called?
a. Undue influence
b. Fraud
c. Coercion
d. Intimidation
125. Threat to strike is
a. undue-influence
b. mistake
c. coercion
d. no coercion
126. Undue influence has been defined under Section
a. 16
b. 23
c. 15
d. None of the above
127. A Gum (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:
a. void
b. voidable
c. valid
d. immoral
128. A having advanced money to his son, B, during his minority, upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater influence, a bond from B for a greater amount than the sum due in respect of the advance. A employs
a. coercion
b. fraud
c. undue influence
d. misrepresentation
129. A master asks his servant to sell his bike to him at a price less than the market price. This contract can be avoided by the servant on the ground of:
a. coercion
b. fraud
c. mistake
d. undue influence
130. Which of the following is not correctly matched?
a. Coercion -Chikkam Ammiraju v. Chikkam Seshamma
b. liquidated damages-Dunlop Pneumatic Tyre Co. v. New Garage & Motor Co.
c. Impossibility of performance - Alopi Parshad & Sons ltd v. Union of India
d. Public Polity - Hadley v. Baxendale
131. ‘A’ applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. ‘A’ accepts the loan on these terms. In this case the contract is
a. vitiated by undue influence.
b. valid because this is a transaction in the ordinary cause of business.
c. void because the banker took unfair advantage of stringency in the money market.
d. voidable at the option of ‘A’ who was deceived by the banker.
132. A contract which is vitiated by undue influence is declared as which one of the following by the Indian Contact Act?
a. Invalid
b. Void
c. Illegal
d. Voidable
133. The term “consensus ad idem” means:
a. no agreement can have more than one meaning
b. to agree the same way to agree the same way
c. to agree on the same thing with same sense
d. to agree for different objects in the same sense
134. 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?
a. 1 only
b. 1,2 and 3
c. 2 and 3, only
d. 3 only
135. Which among the following elements is not required in case of undue influence?
a. The parties stand in near relation to each other
b. One party shall have the position of dominance over the other
c. The party standing in a dominating position actually dominates the will of the other
d. Parties are not necessarily related at all, they can be strangers meeting for the first time
136. Which one of the following agreements is induced by undue influence?
a. A applies to a banker for loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. A accepts the loan on these terms
b. B, a rich man, donates all his properties to a charitable trust leaving nothing for himself and his family members
c. A, at the age of sixty-five years, executes a deed of gift in favor of his only grandson gifting him all his properties to the exclusion of his wife, sons and daughters
d. A, 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
137. Which one of the following relation does not come within the undue influence relationship?
a. Doctor and Patient
b. Customer and Shopkeeper
c. Lawyer and Client
d. Master and Servant
138. Presumption of undue influence can be raised in cases of:
a. Contacts with pardanashin lady
b. Contract with minor
c. Relationship of parties being such that one party is in a position to dominate the will of the other
d. Unconscionable bargains
139. A contract is voidable if it is caused by concealment of a material fact by someone who is under duty to speak because it is:
a. misrepresentation
b. fraud
c. under influence
d. none of the above
140. A knows that his horse had a damaged hoof which he filled up in such a way as to deny defect and sold it to B. This defect was subsequently discovered by B. The act of A will amount to:
a. A false suggestion
b. Active concealment of fact
c. Misrepresentation
d. Mistake
141. Which one of the following does not amount to fraud?
a. Suggestion as a fact of that which is not true by one who does not believe it to be true
b. Entire concealment of a fact
c. A representation made without knowing it to be false, honestly believing it to be true
d. A promise made without intention of performing it
142. ‘B’ says to ‘A-”If you do not deny it, I shall assume that the horse is sound”. ‘A’ says nothing. Here ‘A’s silence is equivalent to speech.
This illustration is based on
a. Section 17
b. Section 18
c. Section 19
d. Section 20
143. A sells, by auction, to B, a horse which A knows to be unsound, A says nothing to B about the horse’s unsoundness:
a. This is not fraud with A
b. A plays fraud with B
c. A did not tell the truth to B
d. A did not follow the ethics
144. A sells, by auction, to his daughter, a horse which ‘A’ knows to be unsound and ‘A’ says nothing about the horse’s unsoundness:
a. this a fraud (because of fiduciary relationship)
b. this not a fraud
c. this is misrepresentation
d. none of these
145. Mere silence is not fraud unless
a. There is duty to speak
b. The silence is deceptive
c. There is a change in the circumstance to be brought to the notice of other party
d. All of these
146. In which case fraud is committed by silence?
a. A did not disclose B at the time of selling his car that he had stolen the car
b. A did not tell B at the time of selling wheat about its quality
c. A did not let B known that price of Silver is likely to fall at the time of selling Silver to him
d. A did not reveal B at the time of sale that the new Edition of the Book has been published
147. Consider the following:
1. Active concealment of fact.
2. Promise made without any intention of performing it.
3. Breach of duty which gains and advantage to the person committing it.
4. Inducing mistake as to subject matter.
Which of the above amount to fraud?
a. 1 and 2
b. 2 and 3
c. 3 and 4
d. 1 and 4
148. When is the inadequacy of consideration taken into account by a court of law?
a. When the promisor performs his promise
b. When fraud, coercion or undue influence in the formation of the contract is pleaded
c. When the promisor expresses his desire to get maximum return for his promise
d. Always at the discretion of the court
149. A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A’s consent to the agreement was freely given. The agreement is:
a. Voidable
b. Void
c. Contract
d. Illegal
150. 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?
a. The contract is void
b. The contract is unenforceable
c. Contract is voidable
d. The contract is unlawful
151. Which one of the following is the essential of misrepresentation?
a. The statement made by the defendant should relate to the material fact
b. The person making statement should not be negligent
c. The person making statement should not believe it to be true
d. The statement should directly be made to the plaintiff himself and no other
152. When the agreement is caused by coercion, fraud or misrepresentation the agreement is
a. illegal
b. unenforceable
c. void
d. voidable
153. Under Section 19 of the Indian Contract Act, 1872, the consent caused by coercion is:
a. Voidable
b. Valid
c. Illegal
d. None of these
154. 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 dam-ages.
3. Simple misrepresentation is also a tort
Select the correct answer using the code given below:
Code:
a. 1 and 2
b. 2 and 3
c. 1 and 3
d. 1,2 and 3
155. A contract, which is formed without the free consent of the parties, is
a. void ab initio
b. void
c. illegal
d. Voidable at the instance of the party whose consent was not free.
156. 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
a. Void
b. Valid
c. Voidable
d. Unlawful
157. X enters into a contract with Y, for which Y is guilty of fraud. X can:
a. set aside the contract but cannot recover damages
b. only recover damages
c. set aside the contract and can recover damages also
d. none of the above
158. ‘A’, intending to deceive ‘B’ falsely represents that five hundred tons of indigo are made annually at A’s factory, and thereby induces ‘B’ to buy the factory. The contract is:
a. Void
b. Voidable at B’s option
c. Voidable at A’s option
d. Unlawful
159. When both the parties to agreement are at mistake regarding facts, the agreement will
a. be enforceable
b. be voidable
c. not be void
d. be void
160. The defence of “non est factum” is available to the contracting party who has committed mistake as to the:
a. Nature of contract
b. Identity of the other contracting party
c. Quality of the promise made by the other contracting party
d. Quality of the subject matter of the contract
161. Consider the following statements: Consent obtained by mistake renders an agreement void if it is:
1. regarding value of the subject matter of the contract
2. a mistake of fact by both the parties to the contract
3. a mistake of law in force in India.
4. a mistake of foreign law by one party to the contract
Which of the statements given above is/are correct?
a. 1,3 and 4
b. 2 only
c. 1 and 4, only
d. 2 and 3
162. 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:
a. voidable at the option of A
b. voidable at the option of B
c. void
d. valid
163. In order to render a contract void on the ground of mistake, the mistake maybe:
a. of law
b. of mixed fact and law
c. of fact and not a law
d. none of the above
164. What is the position of a contract when it is being caused by mistake of law?
a. Voidable
b. Void
c. Not voidable
d. Illegal
165. Two parties entered into a contract. They later realized that the law as they understood as applicable was not in force in India. This makes their contract:
a. illegal
b. void
c. voidable
d. None of these
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