Contract Act objective questions With Answers

7/29/2019 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)

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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


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


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


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


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


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


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


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


(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


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


(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


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


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


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


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


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


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


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


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


(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


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

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