Contract Act objective questions With Answers
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1. An agreement enforceable at law is a
(a) enforceable acceptance
(b) accepted offer
(c) approved promise
(d) contract d
2. Every promise and every set of promises,
forming the consideration for each other, is an
(a) agreement a
(b) contract
(c)offer
(d) acceptance.
3. Promises which form the consideration or part
of the consideration for each other are called
(a) reciprocal promises a(b) cross offers
(c) conditional offer
(d) conditional promises.
4. An agreement not enforceable by law is stated to
be void under
(a) section 2(d)
(b) section 2(e)
(c) section 2(f)
(d) section 2(g). d
5. Void agreement signifies
(a) agreement illegal in nature
(b) agreement not enforceable by law b
(c) agreement violating legal procedure
(d) agreement against public policy.
6. Offer as defined under section 2(a) is
(a) communication from one person to another
(b) suggestion by one person to another
(c) willingness to do or abstain from doing an act in order
to obtain the assent of other thereto c
(d) none of the above.
7. Under section 2(b) if the person to whom the
proposal is made signifies his assent the proposal
is said to have been
(a) accepted a
(b) agreed
(c) provisionally agreed
(d) tentatively accepted.
8. A proposal when accepted becomes
(a) promise under section 2(b) a
(b) agreement under section 2(e)
(c) contract under section 2(h)
(d) none of the above.
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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 or to abstain from doing
something, such act or abstinence or promise
under section 2(d) is called
(a) reciprocal promise
(b) consideration for the promise b
(c) counter offer
(d) acceptance.
10. Promises which form the consideration or part
thereof, for each other under section 2(F) are
called
(a) acceptances for different proposals
(b) agreements
(c) reciprocal promises c
(d) consideration.
11. Every promise or set of promises forming the
consideration for each other under section 2(e) iscalled
(a) reciprocal promise
(b) contract
(c) agreement c
(d) none of the above.
12. An agreement enforceable by law at the
instance of one party & not of other party under
section 2(i) is called
(a) a valid contract
(b) an illegal contract
(c) void contract(d) a voidable contract. d
13. Which is correct
(a) proposal + acceptance = promise
(b) promise + consideration = agreement
(c) agreement + enforceability = contract
(d) all the above. d
14. In a valid contract, what comes first
(a) enforceability a
(b) acceptance
(c) promise
(d) proposal.
15. Under section 2(c) promisor is the
(a) person who makes the proposal a
(b) person who accepts the proposal
(c) person who makes the promise
(d) person to whom the proposal is made.
16. Under section 2(c) promisee is the
(a) person who makes the proposal
(b) person who accepts the proposal b
(c) person who makes the promise
(d) person to whom proposal is made.
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(a) offer
(b) invitation to offer b
(c) counter offer
(d) none of the above.
18. Tender is
(a) an offer
(b) an invitation to offer b
(c) a counter offer
(d) a promise.
19. Communication of a proposal is complete
(a) when it is put in the course of transmission
(b) when it comes to the knowledge of the person to whom
it is made b(c) when the proposal is communicated to the person to
whom it is made
(d) all the above.
20. Communication of acceptance is complete asagainst the proposer
(a) when it comes to the knowledge of the proposer
(b) when it is put in the course of transmission to him so as
to be out of power of the acceptor b
(c) when the acceptance is communicated to the proposer
(d) all the above.
21. Communication of acceptance is complete as
against the acceptor
(a) when it comes to the knowledge of the proposer a
(b) when it is put in the course of transmission
(c) when it is communicated to the acceptor that the
acceptance has reached the proposer
(d) when the proposer conveys the acceptance to the
acceptor.
22. Revocation of offer by letter or telegram can be
complete
(a) when it is despatched
(b) when it is received by the offeree b
(c) when it reaches the offeree
(d) both (a) and (c).
23. Acceptance to be valid must
(a) be absolute
(b) be unqualified
(c) both be absolute & unqualified c
(d) be conditional.
24. A contract with or by a minor is a
(a) valid contract
(b) void contract b
(c) voidable contract
(d) voidable at the option of either party.
25. A contract which ceases to be enforceable by
law becomes void
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(a) when it ceases to be enforceable a
(b) before it ceases to be enforceable
(c) no such condition necessary
(d) none of above.
26. An acceptance can be revoked
(a) at any time before the communication of acceptance iscomplete as against the promisee
(b) after its acceptance comes to the knowledge of the
promisee
(c) both (a) & (b) c
(d) neither (a) nor (b).
27. A proposal stands revoked
(a) by communication of notice of revocation by the
proposer
(b) by failure of acceptor to fulfil a condition precedent
(c) by death or insanity of proposer to the knowledge of
acceptor
(d) all the above. d
28. A proposal can be accepted
(a) by notice of acceptance
(b) by performance of condition of proposal
(c) by acceptance of consideration for a reciprocal promise
(d) all the above. d
29. Enforceable agreements are the one
(a) made by free consent
(b) parties to the contract are competent to enter into an
agreement
(c) having lawful consideration & lawful object
(d) all the above. d
30. Competency to contract relates to
(a) age of the parties
(b) soundness of mind of the parties
(c) both age & soundness of mind c
(d) intelligence of the parties.
31. Which one of the following is correct
(a) past consideration is no consideration
(b) consideration can be past, present or future
(c) consideration can only be present
(d) consideration can only be present & future. d
32. Past consideration is valid in
(a) England only a
(b) India only
(c) both in England & India
(d) neither in England nor in India.
33. An agreement not to raise the plea of limitation
is(a) valid & binding a
(b) void
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(c) voidable
(d) illegal.
34. A letter of acceptance sent by post is lost in
transit
(a) there is a concluded contract as the letter of acceptance
is put in the course of transmission
(b) there is no concluded contract as the acceptance has
not come to the knowledge of the proposer b
(c) there is no concluded contract as the acceptance has not
been communicated to the proposer
(d) all the above.
35. When the consent to the contract is caused by
coercion, the contract under section 19 is
(a) valid
(b) voidable b
(c) void
(d) illegal.
36. A's son forged B's name to a promissory note. B
under threat of prosecuting A's son obtains a bond
from A for the amount of the forged note. If B sues
on this bond the court
(a) has no jurisdiction in this case
(b) must not set aside the bond
(c) may set aside the bond c
(d) none of above.
37. When the consent is caused by misrepresent-tation, the contract under section 19 is
(a) valid
(b) void
(c) voidable c
(d) illegal.
38. When the consent is caused by undue
influence, the contract under section 19A is
(a) valid
(b) void
(c) voidable c
(d) illegal.
39. Where both the parties are under mistake as to
matter of fact, the contract under section 20 is
(a) voidable
(b) void b
(c) valid
(d) illegal.
40. Where one of the parties is under a mistake as
to matter of fact the contract is
(a)valid(b) void b
(c) voidable
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(d) illegal.
41. Considerations & objects are unlawful where it
is
(a) forbidden by law or defeat the provision of any law
(b) which is fraudulent
(c) which is immoral & against the public policy(d) all the above. d
42. If only a part of the consideration or object is
unlawful, the contract under section 24 shall be
(a)valid
(b) voidable
(c) void c
(d) illegal.
43. A contract without consideration under section
25 is
(a) valid
(b) voidable
(c) void c
(d) illegal.
44. Consideration should be something in return
of promise which
(a) both the law and parties regard, as having some value a
(b) only law regards a having some value
(c) only the parties regard some value
(d) only adequate value necessary.
45. If the proposer prescribes the mode & mannerof acceptance, the acceptance
(a) can be in any manner & mode
(b) should be in the manner & mode prescribed b
(c) can be in any reasonable mode & manner
(d) all the above.
46. Parties are not competent to contract if any of
them is
(a) minor
(b) insane
(c) declared unqualified(d) all the above. d47. Consent is free under section 14 if not caused
by
(a) coercion & undue influence
(b) fraud and misrepresentation
(c) mistake subject to the provisions of sections 20, 21 and
22
(d) all the above. d
48. Consent under section 13 means
(a) agreeing on the same thing in the same sense
(b) agreeing on the same thing at the same time b
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(d) agreeing on different things at different times.
49. A contract which is valid initially however,
ceases to be enforceable subsequently, the contract
(a) remains valid
(b) becomes voidable when enforceable
(c) becomes void when it enforceable Becomes void when(d) becomes void since inception.
50. Agreements, the meaning of which is not
certain or not capable of being made certain under
section 29 is
(a) void a
(b) voidable
(c) illegal
(d) valid
51. An agreement in restraint of trade under
section 27 is
(a) valid
(b) voidable
(c) void c
(d) unenforceable
52. An agreement restraint of trade is validunder
section 27 if relates to
(a) sale of goodwill a
(b) mutual adjustment
(c) business contingency
(d) none of the above.
53. An agreement not to pursue any legal remedy
to enforce the rights under section 28 is
(a) valid
(b) voidable
(c) void c
(d) unenforceable.
54. An agreement not to persue legal remedies but
to refer the dispute to the arbitrator, under section
28 is
(a) valid a
(b) voidable
(c) void
(d) unenforceable.
55. An agreement to refer the dispute to thearbitrator is valid
(a) in respect of disputes already arisen
(b) in respect of disputes which may arise in future
(c) both (a) & (b) c
(d) neither (a) nor (b)
56. An agreement by way of wager under section
30 is
(a) void a
(b) voidable
(c) valid(d) unenforceable
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57. An agreement in connection with horse- racing
under section 30 is
(a) unlawful
(b) void
(c) voidable
(d) valid. d58. An agreement in restraint of marriage under
section 26 is
(a) void a
(b) voidable
(c) valid
(d) unenforceable
59. If only a part of the consideration or object is
unlawful, the contract under section 24 shall be
(a) valid to the extent the same are lawful a
(b) void to the extent the same are unlawful
(c) void as a whole(d) valid as a whole.
60. An agreement shall be void on account of
(a) mistake of fact by one party
(b) mistake of fact by both the parties b
(c) mistake of foreign law
(d) both (a) & (b).
61. Coercion which vitiates free consent under
section 15 is
(a) committing or threatening to commit any act which is
forbidden by law
(b) committing or threatening to commit any act which is
forbidden by Indian Penal Code
(c) unlawful detaining or threatening to detain any
property with an intention to causing any person to enter
into an agreement
(d) all the above. d
62. What is correct of a standard form contract
(a) it is a valid contract
(b) one party has no choice but to accept & sign the
contract
(c) both (a) & (b) c
(d) the consent is not a free consent.
63. Law of contract primarily
(a) specifies the circumstances in which promises are
binding on the parties to the contract
(b) lays down certain norms by which the parties are
bound
(c) lays down the circumstances under which a promise
may be made
(d) all the above. d
64. Misrepresentation under section 18 means
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(a) a positive assertion, in a manner not warranted by the
information of the person making it, not true but he
believes it to be true
(b) any breach of duty, which gains an advantage to the
person committing it, by misleading another to his
prejudice
(c) causing a party to make an agreement to make amistake as to the subject matter of contract
(d) all the above. d
65. A person is deemed to be in a position to
dominate the will of another by undue influence if
the mental capacity is affected temporarily or
permanently by
(a) reason of age
(b) reason of illness
(c) mental or bodily distress
(d) all the above. d
66. An agreement to remain unmarried is
(a) valid
(b) voidable
(c) void c
(d) unenforceable. d67. A general offer open for world at large can be
accepted
(a) by sending a communication of acceptance
(b) by complying with the conditions of offer
(c) by tendering himself to comply the conditions of offer c
(d) none of the above.
68. The term consensus ad-idem means
(a) general consensus
(b) reaching an agreement
(c) meeting of minds upon the same thing in( the same
sense c
(d) all the above.
69. Which one of the following does not amount to
fraud
(a) suggestion as a fact which is not true, by one who doesnot believe it to be true
(b) active concealment of a fact
(c) a representation made without knowing it to be false,
honestly believing it to be true c
(d) a promise made without any intention of performing it.
70. Contract without consideration made in
writing & registered and made on account of
natural love and affection is
(a) void
(b) voidable
(c) valid c
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71. Inadequacy of consideration does not make the
contract
(a) void a
(b) voidable
(c) unenforceable
(d) neither void nor voidable.
72. Inadequacy of consideration is relevant in
determining the question of
(a) fraud
(b) misrepresentation
(c) undue influence
(d) free consent. d
73. Agreement without consideration is valid
(a) when made out of love & affection due to near
relationship
(b) when made to compensate a person who has already
done something voluntarily
(c) when made to pay a time barred debt
(d) all the above. d
74. A contract based on the happening or non-
happening of a future event under section 31 is
called
(a) a contingent contract a
(b) a wagering contract
(c) a contract marked with uncertainty and hence void
(d) none of the above.
75. A contingent contract to do or not to do
anything on the happening of an uncertain future
event under section 32
(a) is never enforceable
(b) becomes enforceable only on the happening of that
event b
(c) enforceable since the time of making it
(d) becomes enforceable in the immediate possibility of
happening of that event.
76. A contingent contract
(a) is void
(b) never becomes void
(c) becomes void when the event becomes impossible c
(d) is voidable.
77. A contingent agreement based on an impossible
event under section 36
(a) is void a
(b) is void till the impossibility is known
(c) becomes void on the knowledge of impossibility
(d) all the above.
78. What is true of misrepresentation
(a) it is the same thing as fraud
(b) it renders the contract voidable
(c) it may be due to innocence
(d) b h (b) & ( ) d
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79. Two persons have the capacity to contract
under section 11
(a) if both are major
(b) if both are not of unsound mind
(c) if none is declared unqualified to contract
(d) all are correct. d
80. A contract with minor is
(a) voidable at the instance of the minor
(b) voidable at the instance of other party
(c) void c
(d) valid.
81. An agreement to do an act impossible in itself
under section 36 is
(a) void a
(b) valid
(c) voidable
(d) unenforceable.
82. A contingent contract based on the specified
uncertain event happening within a fixed time
under section 35
(a) remains valid even if the event does not happen within
that fixed time
(b) becomes void at the expiration of the time fixed
(c) becomes void if the happening of that event becomes
impossible before the expiry of time fixed
(d) both (b) & (c). d
83. A contingent contract based on the specified
uncertain event not happening within a fixed time
under section 35
(a) can be enforced if the event does not happen within the
time fixed
(b) can be enforced if before the expiry of time fixed, it
becomes certain that such an event shall not happen b
(c) cannot be enforced at all, being void
(d) both (a) & (b).
84. A promisor can perform
(a) the promise himself
(b) the promise through his representa-tive competent to
perform b
(c) the promise through his representa-tive irrespective of
the competency of that representative
(d) both (a) & (b).
85. A promisee can accept the performance (a)
from the promisor himself a(b) from the representative of the promisor competent to
perform
(c) from a third person
(d) all the above.
86. In case of joint promise, generally theperformance must be by
(a) all the promisors jointly a
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(c) one not authorised to perform
(d) none of the above.
87. In cases of joint promise generally a promisee
can compel
(a) all the joint promisors to perform
(b) any one of them to perform
(c) some of them to perform(d) all the above. d
88. Generally, the joint promisors can
(a) compel each other to contribute equally a
(b) not to compel each other to contribute equally
(c) cannot compel each other to contribute
(d) none of the above.
89. Where one of the joint promisors makes a
default in contribution of performance
(a) the other joint promisors have no right against the
defaulter a(b) have to bear the loss in equal share
(c) not supposed to bear the loss
(d) the contract becomes void to that extent.
90. In case of default by joint promisors the
promisee
(a) can sue any one of them for the entire promise
(b) can sue any one of them to the extent of his share in the
joint promise
(c) both (a) & (b) c
(d) cannot sue any single promisee.91. In case of death of a joint promisor(s) the
promisee
(a) can enforce the contract against the survivor(s) of the
said joint promisor(s) alongwith the joint promisors who
are alive a(b) cannot enforce the contract against the survivor(s) of
the said joint promisor(s)
(c) both (a) & (b)
(d) cannot enforce the contract against any of them.
92. In a contract not specifying the time for
performance, the promisor can perform thecontract
(a) within any time howsoever long it may be
(b) within the shortest time
(c) within a reasonable time c
(d) none of the above.
93. What is a reasonable time for performance of a
contract
(a) is a question of fact a
(b) is a question of law
(c) is a mixed question of fact & law
(d) is a question of prudence.
94. A contract not specifying the place of
performance
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(a) performed at any place to the knowledge of the
promisee a
(b) the promisor has to apply to the promisee for
appointment of a place of performance & perform the
promise at that place
(c) the promisor need not seek any instructions from the
promisee as to the place of performance
(d) the promisor can perform the promise at a place other
than the place appointed by the promisee.
95. In case the promisee prescribes the manner
and time of performance of promise
(a) the performance must be in the manner and at the time
prescribed a(b) the performance can be in a different manner but at the
time prescribed
(c) the performance can be in the manner prescribed but at
a time beyond the time prescribed(d) the performance need not be in the manner and time
prescribed.
96. If the time of performance of the contract is the
essence of the contract and the promisor fails to
perform the contract by the specified time
(a) the contract becomes void
(b) the contract remains valid
(c) the contract becomes voidable at the instance of the
promisee c
(d) the contract becomes unenforceable.
97. If the time is not the essence of the contract the
failure to perform the contract by the specified
time makes the contract
(a) void
(b) voidable at the instance of the promisee
(c) remains valid but the promisee can claim compensation
for the loss suffered by him by such failure c
(d) remains valid & can be performed at any subsequent
time without being liable for the loss suffered by the
promisee.
98. In contract for sale of immovable property the
presumption is that the time is
(a) the essence of the contract
(b) not the essence of the contract
(c) the essence of the contract but failure does not make
the contract voidable
(d) not the essence of the contract but makes the contract
voidable at the instance of the other party. d
99. Reciprocal promises provide for doing certain
things which are legal & certain others which are
illegal, under section 57
(a) the entire set of promises is void
(b) the first set is voidable, but the second set is void
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(c) the first set is valid but the second set is void c
(d) the entire set of promises is valid.
100. A contract, performance of which becomes
impossible or unlawful becomes
(a) void when the performance becomes unlawful or
impossible
(b) void b
(c) voidable when the performance becomes impossible.
(d) neither becomes void nor voidable
: Which of the following most accurately
describes the requirements of a
valid arbitration agreement under the
Arbitration and Conciliation Act, 1996 (the
Arbitration Act, 1996)?
Options:
(a) There is no need for parties to a dispute to
frame an arbitration agreement
under the Arbitration Act, 1996 (the
Arbitration Act).
(b) The parties need not concern themselves
with the validity of the arbitration
agreement.
(c) The provisions of the Indian Contract Act,
1872 (the Contract Act), do not
apply to such agreements.
(d) The arbitration agreement must be valid as
per the Contract Act, and the
parties must be competent to contract.
(e) The only requirement is that the parties
must be competent to contract; all
other requirements of validity under the
Contract Act are unnecessary.
: Which of the following most accurately
describes the enforceability of anarbitral award?
Options:
(a) An arbitral award is not binding on the
parties; they may choose to follow it
if they so wish.
(b) An arbitral award, unless set aside by a
court of competent jurisdiction, is
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enforceable in the same manner as a decree
of a civil court.
(c) An arbitral award can only be enforced if
there is a specific direction from a
court that it should be so enforced.
(d) An arbitral award can be enforced, but only
upon an application by the
arbitrator to a court to do so.
(e) An arbitral award cannot be enforced in
the case of commercial disputes
: Under the Arbitration Act, does the arbitrator
have to provide reasons
for the award?
Options:
(a) An arbitrator must always provide reasons
for the award.
(b) An arbitrator need never provide reasonsfor the award.
(c) An arbitrator need only provide reasons for
the award when specifically
requested by the parties to do so.
(d) An arbitrator must always provide reasons
for the award, unless the parties
have agreed that no reasons are to be given,
or the award is an arbitral award
on agreed terms.
(e) An arbitrator must always provide reasons
for the award, and the only
exception to this rule is in the case of an
arbitral award on agreed terms
Which provision of the Code of Civil
Procedure, 1980 (the CPC)
specifically provides for the settlement of
disputes through alternative dispute
resolution?
Options:
(a) There is no specific provision of the CPC
providing for alternative disputeresolution.
(b) The CPC as a whole provides for alternative
dispute resolution.
(c) Section 89 of the CPC expressly provides
for settlement of disputes through
alternative dispute resolution.
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(d) It is not the CPC, but rather, the Arbitration
Act of 1987 which is the
governing law on alternative dispute
resolution in the country today.
(e) Section 5 of the CPC expressly provides for
alternative dispute resolution
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it ceases to be enforceable