McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 1. |
The Indian Contract Act, 1872 |
| A. | Contains the basic principles of contract |
| B. | Is not a complete code on contract |
| C. | Does not cover all types of contracts |
| D. | All the above |
| Answer» D. All the above | |
| 2. |
An agreement & contract are one and same thing. |
| A. | True |
| B. | False |
| C. | Depends on the situation |
| D. | None of the above |
| Answer» B. False | |
| 3. |
The source of the law of contract is |
| A. | Indian Contract Act, 1872 |
| B. | Judicial decisions |
| C. | Customs or usage of trade |
| D. | All the above |
| Answer» D. All the above | |
| 4. |
Law of contract |
| A. | Is the whole law of obligations |
| B. | Is the whole law of agreements |
| C. | Deals with only such legal obligation which arise from agreement |
| D. | Deals with social agreements |
| Answer» C. Deals with only such legal obligation which arise from agreement | |
| 5. |
Social agreements are |
| A. | Enforceable in the courts |
| B. | Not enforceable in the courts |
| C. | Subject to legal obligations |
| D. | Made by social workers |
| Answer» B. Not enforceable in the courts | |
| 6. |
All contracts |
| A. | Are agreements |
| B. | Are not agreements |
| C. | Do not have legal obligations |
| D. | Should be in writing |
| Answer» A. Are agreements | |
| 7. |
Mercantile Law |
| A. | Is applicable to businessmen only |
| B. | Is applicable to everybody |
| C. | Is applicable to non-businessman only |
| D. | Is applicable to Indians only |
| Answer» B. Is applicable to everybody | |
| 8. |
A contract consist of |
| A. | Mutual promises or agreement enforceable by law |
| B. | Agreement not enforceable by law |
| C. | Involuntary obligations |
| D. | None of the above |
| Answer» A. Mutual promises or agreement enforceable by law | |
| 9. |
An agreement to create legal liability |
| A. | Is not enforceable by law |
| B. | Is a void agreement |
| C. | Is enforceable by law |
| D. | None of the above |
| Answer» C. Is enforceable by law | |
| 10. |
Obligation between parties that form contract |
| A. | Are all kinds of obligations |
| B. | Are legal obligation which spring from agreements |
| C. | Are not voluntary in nature |
| D. | None of the above |
| Answer» B. Are legal obligation which spring from agreements | |
| 11. |
A contract means an agreement |
| A. | Which is enforceable by law |
| B. | Which is not enforceable by law |
| C. | Which creates social obligation |
| D. | Which is in writing |
| Answer» A. Which is enforceable by law | |
| 12. |
A contract or an obligation to perform a promise could arise in the following ways |
| A. | By agreement and contract |
| B. | By standard form of contracts |
| C. | By promissory estoppels |
| D. | None of the above |
| Answer» A. By agreement and contract | |
| 13. |
The Indian Contract law is based on |
| A. | English law |
| B. | Australian law |
| C. | American law |
| D. | French law |
| Answer» A. English law | |
| 14. |
Section 2(b) defines, "When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a/an |
| A. | Contract |
| B. | Agreement |
| C. | Promise |
| D. | Offer |
| Answer» C. Promise | |
| 15. |
When the consent of a party to a contract has been obtained by undue influence, fraud or misrepresentation, the contract is |
| A. | Legal |
| B. | Voidable |
| C. | Enforceable |
| D. | None of these |
| Answer» B. Voidable | |
| 16. |
All contracts |
| A. | should be in writing |
| B. | should be oral |
| C. | should be registered |
| D. | none of the above |
| Answer» D. none of the above | |
| 17. |
A foreigner |
| A. | is competent to enter into contract if he fulfils the conditions of section 11. |
| B. | is not competent to enter into contract |
| C. | can enter into contract with permission of Central Govt. |
| D. | can enter into contract with the permission of court |
| Answer» A. is competent to enter into contract if he fulfils the conditions of section 11. | |
| 18. |
Voidable contract |
| A. | are enforceable by law if they are not avoided |
| B. | are not enforceable by law |
| C. | can be enforced if the court directs |
| D. | can be enforced with prior permission of Court / Government |
| Answer» A. are enforceable by law if they are not avoided | |
| 19. |
The terms of agreement |
| A. | must be certain |
| B. | must be capable of made certain |
| C. | un-ambiguous and clear |
| D. | all the above |
| Answer» D. all the above | |
| 20. |
A contract is a contract |
| A. | from the time it is made |
| B. | from the time its performance is due |
| C. | at the time from its performance |
| D. | none of the above |
| Answer» A. from the time it is made | |
| 21. |
In an executed contract |
| A. | both the parties have yet to fulfill their promises |
| B. | any one party has fulfilled the promise |
| C. | both the parties have fulfilled their promises |
| D. | both b & c |
| Answer» C. both the parties have fulfilled their promises | |
| 22. |
All illegal agreements |
| A. | are not void |
| B. | are not void ab-initio |
| C. | are void |
| D. | none of the above |
| Answer» C. are void | |
| 23. |
A void agreement |
| A. | is illegal |
| B. | is not void ab-initio |
| C. | may or may not be illegal |
| D. | none of the above |
| Answer» C. may or may not be illegal | |
| 24. |
All kinds of obligations between the parties form part of the contract. This statement is |
| A. | True |
| B. | False |
| C. | Partially true |
| D. | None of the above |
| Answer» B. False | |
| 25. |
A contract is made where: |
| A. | A buys a book from a shop |
| B. | X bids at a public auction. |
| C. | X agrees with Y to discover a treasure by magic |
| D. | Z agrees to attend the birthday party of his friend |
| Answer» A. A buys a book from a shop | |
| 26. |
Right in rem implies: |
| A. | a right available against the whole world |
| B. | a right available against a particular individual |
| C. | a right available against the Government |
| D. | none of the above |
| Answer» A. a right available against the whole world | |
| 27. |
A void contract |
| A. | is void from the very beginning |
| B. | is valid in the beginning but becomes void later on |
| C. | is enforceable at the option of one of the contracting parties only |
| D. | none of the above |
| Answer» B. is valid in the beginning but becomes void later on | |
| 28. |
A void agreement is one |
| A. | which is forbidden by law |
| B. | enforceable at the option of one of the parties |
| C. | which is not enforceable by law |
| D. | enforceable by law |
| Answer» C. which is not enforceable by law | |
| 29. |
An agreement created by words spoken or written is called |
| A. | express agreement |
| B. | execute agreement |
| C. | implied agreement |
| D. | voidable agreement |
| Answer» A. express agreement | |
| 30. |
An agreement consists of reciprocal promises between the |
| A. | Four parties |
| B. | Six parties |
| C. | Three parties |
| D. | Two parties |
| Answer» D. Two parties | |
| 31. |
Which of the following statements is false |
| A. | Law of contract is the whole law of obligations |
| B. | Certain contracts must be in writing |
| C. | All contracts are agreements |
| D. | All illegal agreements are void |
| Answer» A. Law of contract is the whole law of obligations | |
| 32. |
Parol contracts are also know as |
| A. | Simple Contract |
| B. | Format Contract |
| C. | Void Contract |
| D. | Conditional contract |
| Answer» A. Simple Contract | |
| 33. |
Which of the following contracts are not recognized by Indian Contract Act, 1872? |
| A. | Recognizance |
| B. | Court Judgment |
| C. | Contract under seal |
| D. | All the above |
| Answer» D. All the above | |
| 34. |
Which of the following statements is false in respect of formal contract? |
| A. | It should be in a particular form |
| B. | It should be in writing and witnessed |
| C. | It should have consideration |
| D. | Consideration is not necessary |
| Answer» C. It should have consideration | |
| 35. |
Under the English law which of the following are recognized as formal contract |
| A. | Recognizance |
| B. | Contract under seal |
| C. | Parol contracts |
| D. | Both (a) and (b) |
| Answer» D. Both (a) and (b) | |
| 36. |
An offer made by words spoken or written is called: |
| A. | Implied offer |
| B. | Express offer |
| C. | Formal agreement |
| D. | Informal agreement |
| Answer» B. Express offer | |
| 37. |
Partial acceptance of offer result in |
| A. | counter offer |
| B. | unqualified acceptance |
| C. | binding contract |
| D. | none of the above |
| Answer» A. counter offer | |
| 38. |
A tender is |
| A. | an offer |
| B. | invitation to an offer |
| C. | acceptance of offer |
| D. | none of the above |
| Answer» A. an offer | |
| 39. |
Acceptance is to offer what a lighted match is to a train of gun powder. This statement indicates |
| A. | Once an offer is accepted it results in binding contract |
| B. | Communication of acceptance is necessary |
| C. | Acceptance must be absolute & unqualified |
| D. | All the above |
| Answer» A. Once an offer is accepted it results in binding contract | |
| 40. |
An offer comes to an end by |
| A. | Acceptance |
| B. | communication |
| C. | revocation |
| D. | none of the above |
| Answer» C. revocation | |
| 41. |
Death or insanity of the proposer will revoke the proposal |
| A. | Automatically |
| B. | If the fact of the death or insanity is known to the offeree |
| C. | The knowledge of death or insanity is irrelevant |
| D. | Only if the family members of the proposer informs the offeree |
| Answer» B. If the fact of the death or insanity is known to the offeree | |
| 42. |
An offer stands revoked |
| A. | If the fact of the death or insanity is known to offeree |
| B. | By counter offer |
| C. | By rejection of offer |
| D. | All the above |
| Answer» D. All the above | |
| 43. |
Cross offer do not constitute a contract because |
| A. | there is no acceptance |
| B. | there is implied acceptance |
| C. | crossing implies cancellation |
| D. | it amounts to counter offer |
| Answer» A. there is no acceptance | |
| 44. |
A proposal can be revoked |
| A. | Before posting of letter of acceptance by the acceptor |
| B. | Before receiving the letter of acceptance by the offeror |
| C. | After posting the letter of acceptance by the offeree |
| D. | Cannot be revoked |
| Answer» A. Before posting of letter of acceptance by the acceptor | |
| 45. |
Communication of acceptance is not necessary |
| A. | By performance of conditions of the offer by offeree |
| B. | By acceptance of consideration by the offeree |
| C. | By acceptance of benefit/service by the offeree |
| D. | All the above |
| Answer» D. All the above | |
| 46. |
When counter offer is given, the original offer |
| A. | Lapses |
| B. | Remains valid |
| C. | Is accepted and becomes a contract |
| D. | The original offer can also be accepted |
| Answer» A. Lapses | |
| 47. |
A counter offer proposing different terms and conditions |
| A. | Amounts to acceptance of the offer |
| B. | Amount to rejection of the offer |
| C. | Results in making of the provisional contract |
| D. | Both (b) & (c) |
| Answer» B. Amount to rejection of the offer | |
| 48. |
Which of the following statements is false? |
| A. | A response to invitation to treat lead to an agreement |
| B. | A valid offer must be communicated |
| C. | Supplying information is not an offer |
| D. | A request for tenders is an invitation to treat |
| Answer» A. A response to invitation to treat lead to an agreement | |
| 49. |
When the promisee does not accept the offer of performance, the promisor is not responsible for nonperformance |
| A. | True |
| B. | False |
| C. | Both(a)&(b) |
| D. | None of the above |
| Answer» A. True | |
| 50. |
For an acceptance to be valid, it must be |
| A. | Partial & qualified |
| B. | Absolute & unqualified |
| C. | Partial & unqualified |
| D. | Absolute & qualified |
| Answer» B. Absolute & unqualified | |
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