August 4, 2021

Quiz: Law of Contracts (Part I)

1. Which one of the following element is not necessary for a contract ?

  • Competent parties
  • Reasonable terms and conditions.
  • Free consent
  • Lawful concentration .

Answer : B and D.

Even if 1 is marked, full mark allotted to the candidate for this question.

2. The correct sequence in the formation of a contract is :

  • Offer, acceptance, agreement, consideration.
  • Agreement, consideration, offer,acceptance.
  • Offer , Consideration, acceptance, agreement.
  • Offer,acceptance, consideration, agreement.

Answer 😀

3. An agreement becomes a contract if :

  • It is by free consent of the parties.
  • Parties are competent.
  • It is enforceable by law.
  • None of the above .

Answer : C

4. A stipulation in a bond for payment of compound interest on failure to pay simple interest at the same rate as was payable upon the principal is not a penalty within the meaning of:

  • Section 74 of the Indian Contract Act, 1872
  • Section 75 of the Indian Contract Act, 1872
  • Section 76 of the Indian Contract Act, 1872
  • None of these

Ans. (A)

5. A supports B’s infant son. B promise to pay A’s expenses in so doing.

  • This is not a contract
  • This is a contract
  • either (A) or (B)
  • None of these

Ans. (B)

6. A agrees to sell to B 1000 mounds of rice at a price to be fixed by C :

  • Valid
  • Void for uncertainty
  • voidable at the option of B.
  • Voidable at the option of C.

Answer :

7. Which one of the following is a leading case of minors contract ?

  • Mohri Bibi vs Dharmodas Ghosh
  • Satyabrat vs Muganeeram
  • Derry vs Pick
  • Hadley Vs Baxendale

Answer : A

8. Which one of the following essentials of contract has not been incorporated in the Indian Contract Act 1872 ?

  • Competency to parties.
  • Lawful object
  • Intention to contract
  • Consideration.

Answer : C

9. When at the Desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstain from doing or promises to do something or obtain from doing something such act or abstinence or promise is called :

  • Agreement
  • Contract
  • Consideration
  • proposal

Answer : C

10. Where no application is made and no time is specified for performance of promise, there the agreement must be performed within :

  • Three years
  • Two years
  • One Year
  • Reasonable time

Answer : D

11. A person has the capacity to contract :

  • He is a major and sound mind.
  • If he can fully understand the nature of his contract .
  • If he is not disqualified from contracting by any law to which he is subject .
  • If he fulfill all the above conditions.

Answer : D

12. A undertakes to repay B a loan of Rs.1,000 by five equal monthly instalments with a stipulation that, in default of payment of any instalment, the whole shall become due.

  • This stipulation is by way of penalty, and the contract cannot be enforced according to its terms
  • This stipulation is not by way of penalty, and the contract cannot be enforced according to its terms
  • This stipulation is not by way of penalty, and the contract may be enforced according to its terms
  • None of these

Ans. (C)

13. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.

  • He is not bound to pay A for them
  • He is bound to pay partially A for them
  • He is bound to pay A for them
  • None of these

Ans. (C)

14. A hires a carriage of B. The carriage is unselfe, though B is not aware of it, and A injured :

  • B is responsible to A for the injury
  • B is not responsible A for the injury
  • The state Government is responsible to A for injury
  • None of these

Answer : A

15. Which one of the following statement is not correct

  • Minor’s Agreement is void
  • Wagering Agreement is void
  • Agreement caused by mutual mistakes is void
  • Contract without consideration is void

Answer : D

16. Which of the following is correct ?

  • Past consideration is no consideration.
  • Consideration can be past, present or future.
  • Consideration can only be present .
  • Consideration can only be future.

Answer : B

17. Acceptance sent through post :

  • Can be revoked at any time.
  • Cannot be revoked at all .
  • Can be revoked before it comes to the knowledge of the offeror .
  • Can be revoked only if it does not reach the offerior.

Answer : C

18. which one of the following statement is correct ?
The communication of acceptance is complete as against the proposer as soon as :

  • Acceptor writes the letter of acceptance.
  • Acceptor posrs the letter of acceptance.
  • The proposer receives the letter of acceptance.
  • Proposer Reads the letter of acceptance.

Answer : B

19. Section 2(b) provides :

  • Proposal
  • Promise
  • Promisee
  • Agreement

Answer: B

20. In order to convert a proposal into a promise the acceptance must be :

  • Absolute
  • Qualified
  • Absolute and qualified.
  • Absolute and Unqualified

Answer : D

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