51. When one party’s consent has been caused as a result of mistake
of fact, the contract is:
(a) Voidable
(b) Void
(c) Valid, and not voidable or void
(d) Unlawful and unenforceable
Ans.C
52. The principal “Restitution stops where repayment begins”, can
be applied with respect to:
(a) Minors only
(b) An alien enemy only
(c) Lunatics and idiots only
(d) Any incapable person
Ans.A
53. A leaves a cow in the custody of B to be taken care of. The cow has
a calf. In the absence of any contract to the contrary-
(a) B is bound to deliver only the cow to A
(b) B is bound to deliver the calf as well as the cow to A
(c) Bis bound to deliver the calf as well as the cow if he is paid half the
price of the calf
(d) B is bound to deliver the calf as well as the cow if he is paid one third of the price of the calf
Ans.B
54. ‘A’ without the request of anybody. extinguishes the fire of B’s
godown. A suffers injury thereby. If B promises to compensate A for
the whole amount he has spent on his treatment, then the contract is:
(a) Valid and enforceable
(b) Unenforceable because of lack of intention to create binding
contract by parties
(c) Void for want of consideration
(d) Voidable at B’s option
Ans.A
55. Which of the following statement is correct in terms of Indian law:
(a) When an acceptance is sent through post the offeror becomes
irrevocably bound by it only at the time when the letter of acceptance
reaches him.
(b)When an acceptance is communicated through the telephone the
offeror becomes irrevocably bound by it only at the time when message
of acceptance reaches his ears
(c)When the acceptance is sent through post, the acceptor becomes
irrevocably bound by it at the time when he puts it in the course of
transmission
(d) When an acceptance is communicated through telephone the
acceptor becomes irrevocably bound by it immediately when he uttered
the message of acceptance, whether or not it reached or understood
by the offeror
Ans.B
56. In an auction sale, if a bid is provisionally accepted subject to the
final approval
(a) It amounts to a concluded contract and bind both the parties
(b) It amounts to no contract and it does not ordinarily bind cither party
until the final approval is given
(c) The bidder i.e. the offeror is bound by his bid while the seller is not
bound
(d) The bidder i.c. the offeror is at liberty to cancel his offer while the
seller is bound by his provisional acceptance
Ans.B
57. According to which section of the Contract Act the performance of
the condition of a proposal is an acceptance of the proposal:
(a) Section 7
(b)Section 8
(c) Section 9
(d) Section 10
Ans.B
58. A contract creates
(a) rights and obligations of the parties to it.
(b) obligations of the parties to it.
(c) mutual understanding between the parties to it.
(d) mutual lawful rights and obligations of the parties to it.
Ans.b
59. In agreements of a purely domestic nature, the intention of the parties to create legal relationship is
(a) to be proved to the satisfaction of the court.
(b) presumed to exist.
(c) required to the extent of consideration.
(d) not relevant at all.
Ans.a
60. ………………. is forbidden by law.
(a) Valid contract
(b) Illegal agreement
(c) Voidable contract
(d) Unenforceable contract
Ans.b
61. A makes a contract with B to beat his business competitor. This is an example of
(a) valid contract.
(b) illegal agreement.
(c) voidable contract.
(d) unenforceable contract.
Ans.b
62. Which of the following legal statements is incorrect?
(a) An agreement enforceable by law is a contract [Section 2]
(b) All agreements are contracts [Section 10]
(c) A proposal when accepted becomes a promise [Section 2]
(d) Every promise and every set of promise forming the consideration for each other is an agreement [Section 2(e)]
Ans.b
63. ……………… is made by words written.
(a) Express contract
(b) Implied contract
(c) Tacit contract
(d) Unlawful contract
Ans.a
64. Agreement the meaning of which is uncertain is
(a) Void
(b) Valid
(c) Voidable
(d) Illegal Answer:
Ans.a
65. Which of the following relationships raise presumption of positive influence?
(a) Parent and Child
(b) Religious/ Spiritual Guru and disciple
(c) Guardian and Ward
(d) All of the above
Ans.d
66. Which of the following is false with respect to minors entering a contract?
(a) An agreement with or by a minor is void ab initio
(b) A minor can be a beneficiary of a contract
(c) The contracts involving a minor as a beneficiary may be enforced at the option of the third party
(d) A minor cannot ratify a contract on attaining majority
Ans.c
67. Drawing cash from ATM, sale by fall of hammer at an auction sale, etc., are example of
(a) express contract.
(b) implied contract.
(c) tacit contract.
(d) unlawful contract.
Ans.b
68. …………….. is a one-sided contract in which only one party has to perform his promise or obligation.
(a) Void contract
(b) Illegal agreement
(c) Unilateral contract
(d) Bilateral contract
Ans.c
69. All Contracts are ……………..
(a) Offer
(b) Agreement
(c) Acceptance
(d) Transaction
Ans.b
70. A/an …………… is every Promise and every set of promises , forming consideration for each other
(a) Offer
(b) Agreement
(c) Acceptance
(d) Transaction
Ans.b
71. Every agreement and promise enforceable by law is …………….
(a) Offer
(b) Contract
(c) Acceptance
(d) Consideration
Ans.b
72. “A Contract is an agreement creating and defining obligations between the parties” the definition was put forwarded by
(a) Dr. Ambedkar
(b) Pollock
(c) Salmond
(d) N.D.Kapoor
Ans.c
73. The Law of Contract is nothing but ……………
(a) A Child of Commercial dealing
(b) A Child of Religion
(c) A Child of day to day Politics
(d) A Child of Economics.
Ans.a
74. To form a valid contract, there should be atleast ………….
(a) Two parties
(b) Three parties
(c) Four parties
(d) Five parties.
Ans.a
75. Contractual rights and duties are created by ……………
(a) State
(b) Statute
(c) Parties
(d) Custom or Usage.
Ans.c
76. Agreement is defined by the section …………… of the Indian Contract Act, 1872.
(a) Section 2(c)
(b) Section 2(e)
(c) Section 2(g)
(d) Section 2(i)
Ans.b
77. As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise forming the consideration for each other is a/an
(a) Contract
(b) Agreement
(c) Offer
(d) Acceptance
Ans.b
78. A promises to deliver his watch to B and, in return, B promises to pay a sum of ` 2,000. There is said to be a/ an
(a) Agreement
(b) Proposal
(c) Acceptance
(d) Offer
Ans.a
79. An Agreement is ……………….
(a) Offer
(b) Offer + Acceptance
(c) Offer + Acceptance + Consideration
(d) Contract
Ans.b
80. A Contract is …………….
(a) A promise to do something or abstain from doing something.
(b) A communication of intention to do something or abstain from doing something
(c) A set of promises.
(d) An agreement enforceable by law.
Ans.d
81. Contract is defined as an agreement enforceable by Law, vide section ………… of the Indian Contract Act.
(a) Section 2(e)
(b) Section 2(f)
(c) Section 2(h)
(d) Section 2(i)
Ans.c
82. Which of the following is false? An offer to be Valid must
(a) Contain a term the non- compliance of which would amount to acceptance.
(b) Intend to create legal relations.
(c) Have certain and unambiguous terms.
(d) Be communicated to the person to whom it is made.
Ans.a
83. Over a cup of coffee in a restaurant, X Invites Y to dinner at his house on a Sunday. Y hires a taxi and reaches X’s house at the appointed time , but x fails to perform his promise. Can Y recover any damages from X?
(a) Yes, as y has suffered
(b) No, as the intention was not to create legal relations.
(c) Either (a) or (b)
(d) None of these.
Ans.b
84. Which one of the following is the best statement about the Indian Contract Act?
(a) It is an exhaustive code containing the entire law of contract.
(b) It is an Act to amend certain parts of the law relating to contracts
(c) It is an Act to define certain parts of the law relating to contracts and contains only the general principles of contract.
(d) It is not an exhaustive code containing the entire law of contracts being an Act to define and amend certain parts of law relating to contract.
Ans.c
85. Which of the following is a contract?
(a) A engages B for a certain work and promises to pay such remuneration as shall be fixed. B does the work.
(b) A and B promise to marry each Other.
(c) A takes a Seat in a public vehicle
(d) A invites B to a card party. B accepts the invitation.
Ans.a
86. For binding contract both the parties to the contract must:
(a) Agree with each other.
(b) Put the offer and counter offers.
(c) Stipulate their individual offer
(d) Agree upon the same thing in the same sense.
Ans.d
87. Which one of the following has the correct sequence?
(a) Offer, acceptance, consideration, offer.
(b) Offer, acceptance , consideration, contract
(c) Contract, acceptance, consideration, offer.
(d) Offer, consideration, acceptance, contract.
Ans.b
88. Goods displayed in a Shop window with a price label will amount to:
(a) Offer
(b) Acceptance of offer
(c) Invitation to offer
(d) Counter offer
Ans.c
89. What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as?
(a) An offer
(b) An obligation
(c) An invitation to offer
(d) A promise to make available the books at the listed place.
Ans.c
90. Which one of the following statements about a valid acceptance of an offer is incorrect?
(a) Acceptance should be absolute and unqualified.
(b) Acceptance should be in the prescribed manner
(c) Acceptance should be communicated
(d) Acceptance should be made while the offer is subsisting
Ans.d
91. A Counter offer is ……………
(a) A rejection of the original offer
(b) An acceptance of the offer
(c) A bargain
(d) An invitation to treat
Ans.a
92. The offer must be …………..
(a) Conditional
(b) Temporary
(c) Definite
(d) all of the above
Ans.c
93. 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
Ans.a
94. Parol contracts are also known as
(a) Simple Contract
(b) Format Contract
(c) Void Contract
(d) Conditional contract
Ans.a
95. An offer made by words spoken or written is called:
(a) Implied offer
(b) Express offer
(c) Formal agreement
(d) Informal agreement
Ans.b
96. A tender is
(a) an offer
(b) invitation to an offer
(c) acceptance of offer
(d) none of the above
Ans.a
97. 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
Ans.d
98. For an acceptance to be valid, it must be
(a) Partial & qualified
(b) Absolute & unqualified
(c) Partial & unqualified
(d) Absolute & qualified
Ans.b
99. Acceptance takes place as against the proposer, when
(a) When the letter of acceptance is posted by the acceptor
(b) When the letter of acceptance is received by the proposer
(c) When the offeree, writes the letter of acceptance, but doesn’t post it
(d) All the above
Ans.a
100. Communication of offer is complete when
(a) The letter is posted to the offeree
(b) The letter is received by the offeree
(c) The offer is accepted by the person to whom it is made
(d) It comes to the knowledge of the offeror that the letter has been received by the offeree
Ans.b
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