| 1. |
The Law of Contract in India is contained in |
| A. | Indian Contract Act 1862 |
| B. | Indian Contract Act 1962 |
| C. | Indian Contract Act 1872 |
| D. | Indian Contract Act 1972 |
| Answer» C. Indian Contract Act 1872 | |
| 2. |
An agreement enforceable by Law is a |
| A. | Promise |
| B. | Contract |
| C. | Obligation |
| D. | Lawful promise |
| Answer» B. Contract | |
| 3. |
A void agreement is one which is |
| A. | Valid but not enforceable |
| B. | Enforceable at the portion of both parties |
| C. | Enforceable at the portion of one party |
| D. | Not enforceable in a Court of Law |
| Answer» D. Not enforceable in a Court of Law | |
| 4. |
An agreement which is enforceable by law at the portion of one or more of the parties thereon but not at the option of the other or others is a : |
| A. | Valid Contract |
| B. | Void Contract |
| C. | Voidable Contract |
| D. | Illegal Contract |
| Answer» C. Voidable Contract | |
| 5. |
Which is the following is false? An offer to be valid must; |
| A. | Intend to create legal relations |
| B. | Have certain and unambiguous terms |
| C. | Contain a term the non‐compliance of which would amount to acceptance |
| D. | Be communicated to the person to whom it is made |
| Answer» C. Contain a term the non‐compliance of which would amount to acceptance | |
| 6. |
When the consent of a party is not free, the contract is: |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Illegal |
| Answer» B. Voidable | |
| 7. |
Which is the following is false? An acceptance: |
| A. | Must be communicated |
| B. | Must be absolute and unconditional |
| C. | Must accepted by a person having authority to accept |
| D. | May be presumed from silence of offeree |
| Answer» D. May be presumed from silence of offeree | |
| 8. |
In case of illegal agreements the collateral agreements are |
| A. | Valid Contract |
| B. | Void Contract |
| C. | Voidable Contract |
| D. | None of these |
| Answer» B. Void Contract | |
| 9. |
An offer may lapse by |
| A. | Revocation |
| B. | Counter Offer |
| C. | Rejection of offer by offeree |
| D. | All of these |
| Answer» D. All of these | |
| 10. |
A proposal when accepted becomes a: |
| A. | Promise |
| B. | Contract |
| C. | Offer |
| D. | Acceptance |
| Answer» A. Promise | |
| 11. |
Which of the following statement is true? |
| A. | Consideration must result in a benefit to both parties |
| B. | Past consideration is no consideration in India |
| C. | Consideration must be adequate |
| D. | Consideration must be something which a promisor is not already bound to do |
| Answer» D. Consideration must be something which a promisor is not already bound to do | |
| 12. |
Which is the following is false? Consideration: |
| A. | Must move at the desire of the promisor |
| B. | May move from any person |
| C. | Must be illusory |
| D. | Must be some value |
| Answer» C. Must be illusory | |
| 13. |
Which of the following statement is false? |
| A. | Generally a stranger to a contract can not sue |
| B. | A verbal promise to pay a time barred debt is valid |
| C. | Completed gifts need no consideration |
| D. | No consideration is necessary to create an agency |
| Answer» B. A verbal promise to pay a time barred debt is valid | |
| 14. |
Consideration must move at the desire of: |
| A. | Promisor |
| B. | Promisee |
| C. | Any other person |
| D. | Any of these |
| Answer» A. Promisor | |
| 15. |
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 |
| Answer» B. There can be a stranger to a consideration | |
| 16. |
Consideration may be |
| A. | Past |
| B. | Present |
| C. | Future |
| D. | All of the above |
| Answer» D. All of the above | |
| 17. |
Consideration in sample term means |
| A. | Anything in return |
| B. | Something in return |
| C. | Everything in return |
| D. | Nothing in return |
| Answer» B. Something in return | |
| 18. |
Which of the following is not an exception to the rule – No consideration, No contract. |
| A. | Compensation for involuntary services |
| B. | Love & Affection |
| C. | Contract of agencies |
| D. | Gift |
| Answer» A. Compensation for involuntary services | |
| 19. |
Ordinarily, a minor’s agreement is |
| A. | Void ab initio |
| B. | Voidable |
| C. | Valid |
| D. | Unlawful |
| Answer» A. Void ab initio | |
| 20. |
A minor’s liability for ‘necessaries’ supplied to him |
| A. | Arises after he attains majority age |
| B. | Is against only minor’s property |
| C. | Does not arise at all |
| D. | Arises if minor gives a promise for it |
| Answer» B. Is against only minor’s property | |
| 21. |
Which of the following statement is not true about minor’s position in a form? |
| A. | He cannot become a partner in an existing firm |
| B. | He can become a partner in an existing firm |
| C. | He can be admitted only to the benefits of any existing firm |
| D. | He can become partner on becoming a major |
| Answer» B. He can become a partner in an existing firm | |
| 22. |
Which of the following statement is true? |
| A. | A contract with a minor is voidable at the option of the minor |
| B. | An agreement with the minor can be ratified after he attains majority |
| C. | A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind |
| D. | A person who is usually of an sound mind cannot enter into contract even when |
| Answer» D. A person who is usually of an sound mind cannot enter into contract even when | |
| 23. |
Consent is not said to be free when it is caused by |
| A. | Coercion |
| B. | Undue influence |
| C. | Fraud |
| D. | All of these |
| Answer» D. All of these | |
| 24. |
When the consent of a party is obtained by fraud, the contract is |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Illegal |
| Answer» B. Voidable | |
| 25. |
The threat to commit suicide amounts to |
| A. | Coercion |
| B. | Undue influence |
| C. | Misrepresentation |
| D. | Fraud |
| Answer» A. Coercion | |