McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
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 | |
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