McqMate
Chapters
| 1. |
The Indian contract act come into force |
| A. | from 1 september 1972 |
| B. | before 1 september 1882 |
| C. | from 1 september 1872 |
| D. | after 1 september 1872 |
| Answer» C. from 1 september 1872 | |
| 2. |
Contract with minor is |
| A. | illegal |
| B. | valid |
| C. | void |
| D. | voidable |
| Answer» C. void | |
| 3. |
Agreement caused by a bilateral mistake of fact is- |
| A. | void |
| B. | voidable |
| C. | illegal |
| D. | valid |
| Answer» A. void | |
| 4. |
Which of these is a wagering contract? |
| A. | insurance contract |
| B. | teji mandi contract |
| C. | lottery |
| D. | all of these |
| Answer» C. lottery | |
| 5. |
Consideration must move at the desire of- |
| A. | third party |
| B. | the promisee |
| C. | the promisor |
| D. | none of these |
| Answer» C. the promisor | |
| 6. |
A contract entered into between the parties by words is called- |
| A. | express contract |
| B. | implied contract |
| C. | quasi contract |
| D. | specific contract |
| Answer» A. express contract | |
| 7. |
When an offer can be accepted only by the person to whom it is made, it is called- |
| A. | express offer |
| B. | general offer |
| C. | specific offer |
| D. | implied offer |
| Answer» C. specific offer | |
| 8. |
A promise to subscribe to a charity is a |
| A. | void agreement |
| B. | void contract |
| C. | voidable contract |
| D. | valid contract |
| Answer» A. void agreement | |
| 9. |
A contract for the benefit of a minor entered into by his manager is |
| A. | illegal |
| B. | voidable |
| C. | void |
| D. | valid |
| Answer» D. valid | |
| 10. |
Two or more persons are said to consent when they agree upon |
| A. | the same thing in the same sense |
| B. | the same thing in any sense |
| C. | the same thing in a specific sense |
| D. | none of these |
| Answer» C. the same thing in a specific sense | |
| 11. |
The term “Quid pro quo” means: |
| A. | something in return |
| B. | something important |
| C. | something of value |
| D. | something relevant |
| Answer» A. something in return | |
| 12. |
Which of the following is not an essential element of a valid contract: |
| A. | adequacy of consideration |
| B. | capacity to contract |
| C. | free consent |
| D. | none of the above |
| Answer» A. adequacy of consideration | |
| 13. |
If a contract provides for the payment of a certain amount on breach of a contract, such payment is termed as: |
| A. | special damages |
| B. | nominal damages |
| C. | liquidated damages |
| D. | compensatory damages |
| Answer» C. liquidated damages | |
| 14. |
Which of the following case is not covered by the concept of supervening impossibility? |
| A. | destruction of subject matter |
| B. | death or incapacity of the promisor |
| C. | outbreak of war |
| D. | difficulty of performance |
| Answer» D. difficulty of performance | |
| 15. |
Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of making a contract if: |
| A. | he is not illiterate and can read and understand the terms of the contract. |
| B. | he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests. |
| C. | he is of the age of majority and is not disqualified from contracting by any law to which he is subject. |
| D. | he is not suffering from any mental disease or distress. |
| Answer» B. he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests. | |
| 16. |
A positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true is said to be a: |
| A. | fraud |
| B. | misrepresentation |
| C. | mistake |
| D. | misinterpretation |
| Answer» B. misrepresentation | |
| 17. |
A minor can: |
| A. | be an agent |
| B. | be a principal |
| C. | both |
| D. | none of these |
| Answer» A. be an agent | |
| 18. |
Choose the incorrect statement: To constitute a wager, following elements should be present in the agreement: |
| A. | uncertain event |
| B. | each party must pay in a win or lose situation |
| C. | neither party should have any contract over the event |
| D. | there should be a promise to pay money only |
| Answer» D. there should be a promise to pay money only | |
| 19. |
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 |
| Answer» B. whole of india excluding jammu & kashmir | |
| 20. |
A jus in personam means a right against |
| A. | a specific person |
| B. | the public at large |
| C. | a specific thing |
| D. | none of these |
| Answer» A. a specific person | |
| 21. |
Which of the following statement is true |
| A. | an agreement enforceable by law is a contract |
| B. | an agreement is an accepted proposal |
| C. | both (a) and (b) |
| D. | none of these |
| Answer» C. both (a) and (b) | |
| 22. |
A contract is made where |
| A. | x agrees with y to discover a treasure by magic |
| B. | x bids at a public auction |
| C. | x takes a sit in a public omni bus |
| D. | x promises in writing to give rs. 500 to y |
| Answer» C. x takes a sit in a public omni bus | |
| 23. |
A void agreement is one which is |
| A. | valid but not enforceable |
| B. | enforceable at the option of both the parties |
| C. | enforceable at the option of one party |
| D. | not enforceable in a court of law |
| Answer» D. not enforceable in a court of law | |
| 24. |
In case of void agreements, collateral transactions are |
| A. | also void |
| B. | unenforceable |
| C. | not affected |
| D. | illegal |
| Answer» C. not affected | |
| 25. |
General offer can be accepted by |
| A. | any person |
| B. | specific person |
| C. | any person having notice of it |
| D. | none of these |
| Answer» A. any person | |
| 26. |
Which of the following does not constitute valid acceptance |
| A. | it has been communicated |
| B. | it is absolute and unqualified |
| C. | it has been presumed from silence of offeree |
| D. | the offer has been accepted by the proper person |
| Answer» C. it has been presumed from silence of offeree | |
| 27. |
Which of the following is not the legal requirements of a valid offer |
| A. | it must be communicated to the offeree |
| B. | it must be made with a view to obtain offeree's assent |
| C. | it must express offeree's final willingness |
| D. | it must be made to a specific person and not to public at large |
| Answer» D. it must be made to a specific person and not to public at large | |
| 28. |
As a general rule, an agreement made without consideration is |
| A. | void |
| B. | valid |
| C. | voidable |
| D. | unlawful |
| Answer» A. void | |
| 29. |
An agreement made with free consent to which the consideration is lawful but inadequate, is |
| A. | void |
| B. | valid |
| C. | voidable |
| D. | unlawful |
| Answer» B. valid | |
| 30. |
For the enforcement of a promise to pay a time-barred debt without consideration, which of the following condition is not required? |
| A. | it must be in writing |
| B. | it must be definite and express |
| C. | it must be signed by the promisor |
| D. | it must be registered in court of law |
| Answer» D. it must be registered in court of law | |
| 31. |
A contract is discharged by the breach when a party to a contract |
| A. | refuses to perform his promise |
| B. | fails to perform his promise |
| C. | disables himself from performing his part of the promise |
| D. | all of the above |
| Answer» D. all of the above | |
| 32. |
Which of the following is incorrect? |
| A. | the impossibility to perform a promise discharges the contract |
| B. | a merger discharges the contract |
| C. | an initial impossibility discharges the contract |
| D. | all of the above |
| Answer» C. an initial impossibility discharges the contract | |
| 33. |
The doctrine of impossibility of performance, rendering a contract void, is based on |
| A. | a commercial impossibility |
| B. | a supervening impossibility |
| C. | just and reasonable ground |
| D. | an unjust enrichment |
| Answer» B. a supervening impossibility | |
| 34. |
Because of supervening event, the promisor is excused from the performance of the contract. This is known as |
| A. | a doctrine of frustration |
| B. | an initial impossibility |
| C. | a doctrine of ultra-vires |
| D. | an operation of law |
| Answer» A. a doctrine of frustration | |
| 35. |
Which of the following is correct? |
| A. | a novation means making a new contract in the place of an old contract |
| B. | an alteration means making a new contract in the place of an existing one |
| C. | the performance of a contract is not a method of discharge of contract |
| D. | all of the above |
| Answer» A. a novation means making a new contract in the place of an old contract | |
| 36. |
_________ indicates that the parties are not further bound under the contract |
| A. | waiver of a contract |
| B. | breach of a contract |
| C. | rescission of a contract |
| D. | discharge of a contract |
| Answer» D. discharge of a contract | |
| 37. |
X contracts to sell his scooter to Y for Rs. 50,000 and Y agrees to pay on delivery. Both the parties perform their promises. This is called |
| A. | a waiver |
| B. | breach of a contract |
| C. | an attempted performance of contract |
| D. | an actual performance of a contract |
| Answer» D. an actual performance of a contract | |
| 38. |
Assignment by the operation of law takes place |
| A. | by the mutual consent of the parties |
| B. | by the will of either party |
| C. | when the subject matter of a contract ceases to exist |
| D. | by the death of a party to a contract |
| Answer» D. by the death of a party to a contract | |
| 39. |
The original contract needs not to be performed, if there is |
| A. | rescission of contract |
| B. | novation of contract |
| C. | alteration of contract |
| D. | all of the above |
| Answer» D. all of the above | |
| 40. |
Rescission of a contract means |
| A. | the termination of the contract |
| B. | the renewal of the contract |
| C. | the alteration of the contract |
| D. | the substitution of the new contract in the place of the earlier one |
| Answer» A. the termination of the contract | |
| 41. |
When the parties mutually agree to change certain terms of the contract. This is called |
| A. | a rescission of the contract |
| B. | the novation of a contract |
| C. | an alteration of a contract |
| D. | a remission of a contract |
| Answer» C. an alteration of a contract | |
| 42. |
If a person accepts a lesser sum of money than what was contracted for, in the discharge of the whole debt, it is known as |
| A. | a waiver |
| B. | a remission |
| C. | an alteration |
| D. | a rescission |
| Answer» B. a remission | |
| 43. |
Intentional relinquishment of a right under the contract is called |
| A. | a waiver |
| B. | a breach |
| C. | a rescission |
| D. | an alteration |
| Answer» A. a waiver | |
| 44. |
Where a party to contract transfers his rights under the contract to another person, it is legally known as |
| A. | novation of a contract |
| B. | rescission of a contract |
| C. | waiver of a contract |
| D. | assignment of a contract |
| Answer» D. assignment of a contract | |
| 45. |
Performance of a contract means |
| A. | fulfilling all the obligations by the promisee |
| B. | fulfilling all the obligations by the promisor |
| C. | performing all the promises, and fulfilling all the obligations by all the parties |
| D. | both (a) & (b) |
| Answer» C. performing all the promises, and fulfilling all the obligations by all the parties | |
| 46. |
Offer to perform is called |
| A. | attempted performance |
| B. | caveat emptor jus in rem |
| C. | jus in personam |
| D. | jus in rem caveat emptor |
| Answer» A. attempted performance | |
| 47. |
Which is not the essential of a valid tender? |
| A. | tender must be conditional |
| B. | tender must be made at a proper place |
| C. | tender must be for obligation |
| D. | tender must be made at proper time |
| Answer» A. tender must be conditional | |
| 48. |
An offer of performance is known as a/an |
| A. | offer |
| B. | proposal |
| C. | tender |
| D. | acceptance |
| Answer» C. tender | |
| 49. |
The offer to perform the contract must be |
| A. | unconditional |
| B. | conditional |
| C. | rational |
| D. | provisional |
| Answer» A. unconditional | |
| 50. |
The promises forming consideration for each other are called |
| A. | reciprocal promises |
| B. | mutual promises |
| C. | independent promises |
| D. | none of the above |
| Answer» A. reciprocal promises | |
| 51. |
Ex turpi causa non oritur action means? |
| A. | from an illegal cause, no action arises |
| B. | from an illegal cause action may arises |
| C. | from an legal cause action may arises |
| D. | from an legal cause action may not arises |
| Answer» A. from an illegal cause, no action arises | |
| 52. |
Consideration and object of an agreement is unlawful if it |
| A. | is fraudulent |
| B. | is possible |
| C. | is impossible |
| D. | all of the above |
| Answer» A. is fraudulent | |
| 53. |
The stifling agreement is |
| A. | wagering |
| B. | contingent |
| C. | voidable |
| D. | void |
| Answer» D. void | |
| 54. |
Which of the following agreements are valid? |
| A. | uncertain agreements |
| B. | wagering agreements |
| C. | agreements to do impossible events |
| D. | none of the above |
| Answer» D. none of the above | |
| 55. |
In which of the following agreements, restraint of trade is valid? |
| A. | agreement with buyer of goodwill |
| B. | trade combinations not opposed to public policy |
| C. | partnership agreements |
| D. | all of the above |
| Answer» D. all of the above | |
| 56. |
An uncertain agreement is |
| A. | voidable |
| B. | void |
| C. | valid |
| D. | illegal |
| Answer» B. void | |
| 57. |
An illegal agreement is |
| A. | not enforceable by law |
| B. | prohibited under law |
| C. | either (a) & (b) |
| D. | both (a) & (b) |
| Answer» D. both (a) & (b) | |
| 58. |
Which of the following is not a feature of a wagering agreement? |
| A. | chances of gain or loss |
| B. | uncertainty of future event |
| C. | neither party have control over future event |
| D. | neither parties should have an interest in the event |
| Answer» D. neither parties should have an interest in the event | |
| 59. |
An athletic competitions are valid because they are |
| A. | games of skill |
| B. | just games |
| C. | game of luck |
| D. | all of the above |
| Answer» A. games of skill | |
| 60. |
Share market transactions with a clear intention only to settle the price difference are |
| A. | wagering agreements |
| B. | not wagering agreements |
| C. | contingent contracts |
| D. | voidable agreements |
| Answer» A. wagering agreements | |
| 61. |
Which of these are not opposed to public policy? |
| A. | trading with enemy |
| B. | stifling prosecution |
| C. | compromise of compoundable offences |
| D. | agreement to commit a crime |
| Answer» C. compromise of compoundable offences | |
| 62. |
Where a person agrees to maintain a suit, in which he has no interest, the proceeding is known as |
| A. | champerty |
| B. | maintenance |
| C. | stifling with prosecution |
| D. | interference with course of justice |
| Answer» B. maintenance | |
| 63. |
An agreement whereby one party assists another in recovering money or property and in turn share in the proceeds of the action is called |
| A. | champerty |
| B. | maintenance |
| C. | stifling with prosecution |
| D. | trafficking the public office |
| Answer» A. champerty | |
| 64. |
Which of the following is a contingent contract? |
| A. | contract of insurance |
| B. | contract for doing impossible acts |
| C. | marriage contract |
| D. | wagering agreements |
| Answer» A. contract of insurance | |
| 65. |
Consent means parties agreeing on |
| A. | the terms of contract |
| B. | some terms of contract |
| C. | the same thing in the same sense |
| D. | any matter of contract |
| Answer» C. the same thing in the same sense | |
| 66. |
_________ means forcibly compelling a person to enter into a contract |
| A. | intimidation |
| B. | fraud |
| C. | mistake |
| D. | coercion |
| Answer» D. coercion | |
| 67. |
Duress under English contract law is similar to |
| A. | undue influence |
| B. | coercion |
| C. | fraud |
| D. | misrepresentation |
| Answer» B. coercion | |
| 68. |
Ubberima fidei means |
| A. | bad faith |
| B. | utmost good faith |
| C. | good faith |
| D. | no faith at all |
| Answer» B. utmost good faith | |
| 69. |
When one of the parties is under a mistake as to a matter of fact essential to the agreement, it is called |
| A. | unilateral mistake |
| B. | bilateral mistake |
| C. | partial mistake |
| D. | incomplete mistake |
| Answer» A. unilateral mistake | |
| 70. |
The maxim ‘Ignoranlia juris non excusa’ stands for |
| A. | law will not punish ignorant people |
| B. | law will punish illiterate people |
| C. | ignorant people can excuse law |
| D. | ignorance of law of land is no excuse |
| Answer» D. ignorance of law of land is no excuse | |
| 71. |
The case of ‘no consent’, i.e., when there is no consent at all, is described by Salmond as |
| A. | error in causa |
| B. | error in consensus |
| C. | consensus ad idem |
| D. | offer and acceptance |
| Answer» B. error in consensus | |
| 72. |
Capacity to contract means |
| A. | the parties are financially sound to make contracts |
| B. | the parties are physically able to enter into contracts |
| C. | the parties are legally competent to enter into contracts |
| D. | all of the above |
| Answer» C. the parties are legally competent to enter into contracts | |
| 73. |
Competence to contract means |
| A. | age of the parties |
| B. | soundness of the mind of the parties |
| C. | both (a) & (b) |
| D. | intelligence of the parties |
| Answer» C. both (a) & (b) | |
| 74. |
A minor’s agreement is void. This was held in the case of |
| A. | mohiri bibee vs. dharmadas ghosh |
| B. | salma begam vs. jan mohamed khan |
| C. | balfour vs. balfour |
| D. | chinnaiya vs. ramaiya |
| Answer» A. mohiri bibee vs. dharmadas ghosh | |
| 75. |
A minor can be |
| A. | ratify his agreement after attaining majority |
| B. | be directed by the court for specific performance of the contract |
| C. | always plead his minority |
| D. | be held liable for cheques issued by him |
| Answer» C. always plead his minority | |
| 76. |
A minor’s guardian is not liable to the creditor for breach of contract by the minor, if the contract is for __________ |
| A. | supply of necessaries |
| B. | supply of non-necessaries |
| C. | supply of services |
| D. | all of the above |
| Answer» D. all of the above | |
| 77. |
The doctrine of restitution refers to the restoration of property or goods, obtained by false representation. This doctrine is |
| A. | beneficial to minors |
| B. | not applicable to minors |
| C. | applicable to minors |
| D. | none of the above |
| Answer» C. applicable to minors | |
| 78. |
A consideration in a contract |
| A. | may be any thing |
| B. | nothing in return |
| C. | something in return |
| D. | may be illusory |
| Answer» C. something in return | |
| 79. |
A consideration may be |
| A. | past |
| B. | present |
| C. | future |
| D. | either (a) or (b) or (c) |
| Answer» D. either (a) or (b) or (c) | |
| 80. |
An agreement not supported by the consideration is called |
| A. | nudum pactum |
| B. | an invalid consideration |
| C. | ab initio |
| D. | namo dat quod non habet |
| Answer» A. nudum pactum | |
| 81. |
The consideration is to be moved sometime after the formation of a contract, it is known as |
| A. | present consideration |
| B. | executory consideration |
| C. | past consideration |
| D. | executed consideration |
| Answer» B. executory consideration | |
| 82. |
The term privity of contract means |
| A. | stranger to contract |
| B. | contract is private |
| C. | first party to contract |
| D. | second party to contract |
| Answer» A. stranger to contract | |
| 83. |
A proposal may consist of a promise for |
| A. | doing an act |
| B. | abstaining from doing an act |
| C. | either (a) or (b) |
| D. | returning the consideration |
| Answer» C. either (a) or (b) | |
| 84. |
A offers to sell his car on internet, it is |
| A. | an express offer |
| B. | an implied offer |
| C. | a particular offer |
| D. | no offer |
| Answer» A. an express offer | |
| 85. |
The offer which is allowed to remain open for the acceptance over a period of time is known as a/an |
| A. | standing offer |
| B. | specific offer |
| C. | special offer |
| D. | implied offer |
| Answer» A. standing offer | |
| 86. |
The offer made to a specific person or group of persons is known as a |
| A. | standing offer |
| B. | specific offer |
| C. | special offer |
| D. | separate offer |
| Answer» B. specific offer | |
| 87. |
Terms of the offer must be |
| A. | ambiguous |
| B. | uncertain |
| C. | definite |
| D. | vague |
| Answer» C. definite | |
| 88. |
When a person invites the other party to make an offer, he is said to make a/an |
| A. | proposal |
| B. | offer |
| C. | invitation to offer |
| D. | acceptance |
| Answer» C. invitation to offer | |
| 89. |
Price lists, catalogues, advertisements in newspapers and enquiries from customers are |
| A. | offers |
| B. | invitations to offer |
| C. | acceptances |
| D. | cross offers |
| Answer» B. invitations to offer | |
| 90. |
Goods displayed in a shop with a price label is |
| A. | an offer |
| B. | an invitation to offer |
| C. | a counter-offer |
| D. | a contra-offer |
| Answer» B. an invitation to offer | |
| 91. |
When the offers made by two persons to each other containing similar terms of bargain cross each other in post, they are known as |
| A. | cross offers |
| B. | implied offers |
| C. | direct offers |
| D. | express offers |
| Answer» A. cross offers | |
| 92. |
Which of the following is not the mode of the lapse of an offer? |
| A. | lapse of time |
| B. | case against the offeror |
| C. | insanity of the offeror |
| D. | failure to accept condition precedent |
| Answer» B. case against the offeror | |
| 93. |
Contract is defined as an agreement enforceable by law, vide section . . . . . of the Indian Contract Act |
| A. | 2 (e) |
| B. | 2 (f) |
| C. | 2 (h) |
| D. | 2 (i) |
| Answer» C. 2 (h) | |
| 94. |
When the contract is perfectly valid but cannot be enforced because of certain technical defects. This is called |
| A. | unilateral contract |
| B. | bilateral contract |
| C. | unenforceable contract |
| D. | void contract |
| Answer» C. unenforceable contract | |
| 95. |
Where a contract has to be inferred from the conduct of parties, it is called |
| A. | express contract |
| B. | implied contract |
| C. | tacit contract |
| D. | unlawful contract |
| Answer» B. implied contract | |
| 96. |
Where the obligation in a contract is outstanding on the part of both parties, it is called |
| A. | void contract |
| B. | illegal agreement |
| C. | valid contract |
| D. | bilateral contract |
| Answer» D. bilateral contract | |
| 97. |
A contract in which, under the terms of a contract, nothing remains to be done by either party is known as |
| A. | executed contract |
| B. | executory contract |
| C. | unilateral contract |
| D. | none of the above |
| Answer» A. executed contract | |
| 98. |
A contract in which, under the terms of a contract, one or both the parties have still to perform their obligations in future is known as |
| A. | executed contract |
| B. | executory contract |
| C. | unilateral contract |
| D. | none of the above |
| Answer» B. executory contract | |
| 99. |
The unpaid seller can exercise his right of lien over the goods for |
| A. | price of goods |
| B. | storage charges |
| C. | any lawful charges |
| D. | all of these |
| Answer» A. price of goods | |
| 100. |
An auction sale is complete on the |
| A. | fall of hammer |
| B. | delivery of goods |
| C. | payment of price |
| D. | both (b) and (c) |
| Answer» A. fall of hammer | |
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