Indian Contract Act

INDIAN CONTRACT ACT 1. X promises to deliver his watch to Y and, in return, B promises to pay a sum of Rs.5000/-. There is said to be a / an a) Agreement b) Acceptance c) Offer d) Proposal 2.

An agreement is

a) Contract b) Offer c)Offer+Acceptance d) Offer+Acceptance+Considration 3.

Valid contracts

a) are those where the parties to the contract are competent to enter into an agreement b) have lawful consideration and lawful object c) are made by free consent d) all of the above 4. Agreement to do an unlawful, immoral or illegal act, like smuggling or murdering a person a) are valid in law b) cannot be enforced in law c) have no consensus ad- idem d) are invalid for want of consideration 5.

An offer may lapse by

a) Revocation b) Counter offer c) Rejection of offer d) all of the above 6. The display of articles is a showroom indicating their prices amount to a) offer b) counter offer c) invitation to an offer d) mere advertisement 7.

No contract can arise, if the

a) acceptance is made by an unascertained person b) acceptance is made by an ascertained person c) offer is made to an ascertained person d) acceptance is made by an ascertained person 8.

Which of the following statement is false?

a) consideration cannot be a future consideration b) consideration may move from the promisee c) consideration must be real d) consideration may be inadequate 9.

Consideration

a) must move from the promisee b) must move from the third party c) may move from the promisor d) may move from the promise or any other person 10.

Past consideration is valid in

a) India only b) England only c) Both in India and England d) none of the above

11.

Match List I and List II List I

List II

A. Invitation to an offer

1) Both the parties of a contract make mistake

B. Contract

2) Withdrawal of contract

C. Bilateral Mistake

3) An ad for season end sale

D. Revocation

4) Compensation for voluntary services

12.

Contract to marry a person be performed by

a) a third person b) promisor himself competent to perform d) none of the above 13.

c)

representative of the promisor

X, Y and Z jointly promise to pay Mr.A Rs.10000/-. Mr.A may compel

a) X,Y and Z jointly and separately to pay Rs.10000/- b) X to pay Rs.10000/-c) X,Y and Z jointly to pay Rs.10000/- d) X or Y or Z to pay Rs.10000/14. X and Y contract that X shall build a house for Y at a fixed price. In this case a) X must build the house before he can claim payment from Y b) Y must pay the price before X builds the house c) X and Y have to perform their promises simultaneously d) the contract need not be performed at all. 15.

Indian Contract Act came into force since

a) 1st April, 1872 b) 1st January, 1872 c) 1st September, 1872 d) 1st July, 1872 16.

A contract is an

a) Agreement enforceable by law b) Agreement against public policy c) Agreement to go for a cup of tea c) Agreement of do something impossible. 17.

The Indian Contract Act, 1872 applies to the

a) Whole of India including Jammu & Kashmir b) Whole of India excluding Jammu & Kashmir c) States notified by the government every year d) Northern and eastern Indian states. 18.

A voidable contract is one which

a) Can be enforced at the option of aggrieved party. b) Can be enforced at the option of both the parties c) Cannot be enforced in a court of law d) Courts prohibits. 19. Asper Section 2(e) of the Indian Contract Act, “every promise and every set of promise forming the consideration for each other is a/an a) Offer b) Acceptance c) Contract d) Agreement 20. X invites for his son’s wedding. Y accepts the invitation. In this case, there is an agreement but no contract, since a) There is no consideration b) There is no written document c) There is no intention to create legal relationship c) There is no formal acceptance of the offer. 21. X promises to give Rs.10,000/- per month pocket money to his son. If X does not give the pocket money a)

Y can accept a lower pocket money also b) Y can sue his father

c) Y has to give Rs.10,000/- to his father d) Y has no remedy against. 22.

A promise is a person

a) Who makes a promise b) A person who monitors the statement intentions of two parties c) To whom the promise is made d) Who fails to perform the promise. 23. Which one of the following promises is enforceable?

a) X promises to pay Rs.5000/- to Y who saved him from drawing b) X promises to pay Rs.5000/- to his son c) X promises to donate Rs.5000/- to an Officer’s club d) X promises to Rs.5000/- as additional fee to his advocate for winning a suit. 24.

Match the List-I with List-II List-I

List-II

a) General Offer

Exchange identical offers by two parties in ignorance.

b) Special Offer

Offer made to the public in general

c) Cross Offers

Offer allowed to remain open for acceptance over a period of time

d) Continuing offer

Offer made to a definite person

25. Which one of the following statement is correct? a) A consideration may be present or future but not past b) Consideration may be past, present or future c) d) None of the above

Past consideration is no consideration

26. Consideration in simple term means a) Anything in return d) Nothing in return 27.

b)

Something

in return

c)

Everything in return

Which contract will be valid without consideration

a) Compensation for voluntary services b) To pay time-barred debts Agency d) All of the above. 28.

c)

Which of the following statement is false?

a) A verbal promise to pay a time barred debt is valid b) Completed gift need no consideration c) Generally a stranger to a contract cannot sue d) No consideration is necessary to create an agency

29.

Which of the following statement is true?

a) There can be a stranger to a contract b) There can be a stranger to a consideration c) There can be a stranger to a contract & consideration d) None of the above. 30.

“No consideration, No contract” is the rule of law

a) True b) Partly true c) False d) Partly false 31.

Agreement without consideration is valid, when made

a) Out of love and affection due to near relationship b) To compensate a person who has already done something voluntarily c) To pay a time barred debt d) all of the above. 32. A person verbally promised the president of the temple committee to subscribe Rs.1,00,000/- for rebuilding of a Temple. Later, he declined to pay the said amount. The agreement is void due to a) Lack of consideration b) Lack of object c) Lack of capacity to contract d) Lack of consensus ad idem. 33.

Which of the following is false? An offer to be valid must:

a) Intend to create legal relations b) Have certain & unambiguous terms c) certain a term the non-compliance of which would amount to acceptance d) be communicated to the person to whom it is made 34. An agreement is valid if it is opposed to public policy. Which of the following is not covered by heads of public policy? a) Treading with an enemy b) Trafficking in public offices c) Marriage brokerage contracts d) contracts to do impossible acts 35. A,B and C jointly promised to pay Rs.60,000/- to D. Before performance of the contract, C dies. Here, the contract a) becomes void on C’s death b) should be performed by A and B along with C’s representatives c) should be performed by A and B alone d) should be renewed between A,B and D. 36.

A contract is an

a) Agreement enforceable by law b) Agreement against public policy c) Agreement to go for a cup of tea c) Agreement of do something impossible. 37.

A voidable contract is one which

a) Can be enforced at the option of aggrieved party. b) Can be enforced at the option of both the parties c) Cannot be enforced in a court of law d) Courts prohibits.

38. Asper Section 2(e) of the Indian Contract Act, “every promise and every set of promise forming the consideration for each other is a/an a) Offer b) Acceptance c) Contract d) Agreement 39. X invites for his son’s wedding. Y accepts the invitation. In this case, there is an agreement but no contract, since a) There is no consideration b) There is no written document c) There is no intention to create legal relationship c) There is no formal acceptance of the offer. 40. X promises to give Rs.10,000/- per month pocket money to his son. If X does not give the pocket money b)

Y can accept a lower pocket money also b) Y can sue his father

c) Y has to give Rs.10,000/- to his father d) Y has no remedy against. 41.

A promise is a person

a) Who makes a promise b) A person who monitors the statement intentions of two parties c) To whom the promise is made d) Who fails to perform the promise. 42.

Which one of the following promises is enforceable?

a) X promises to pay Rs.5000/- to Y who saved him from drawing b) X promises to pay Rs.5000/- to his son c) X promises to donate Rs.5000/- to an Officer’s club d) X promises to Rs.5000/- as additional fee to his advocate for winning a suit.

43.

Which of the following are not offer, but invitation to make an offer

a) Railway time table b) Advertisement to sell at reduced price c) Asking for tenders d) All the above 44.

Under what circumstances, “an offer” will not lapse

a) By notice b) By acceptance c) By counter offer d) By lapse of time 45.

The person making the proposal is called

a) Principal b) Promisor c) Promisee d) Participator