CPT Law Imp MCQs on Contract Act


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Last Minute Revision CPT Law Chapter1

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CPT Law Imp MCQs on Contract Act

  1. 1. [THE INDIAN CONTRACT ACT,1872] December 8, 2010 Important MCQ’s on Contract actQ.1 When the consent to an agreement is obtained by undue influence, the agreement is voidableat the option of1. either of the parties to the agreement2. a party whose consent is obtained3. a party who obtained the consent4. none of the aboveQ.2 a Contingent Contract to do or not to do anything on the happening of an uncertain futureevent1. is never enforceable2. is enforceable since the time of making it3. becomes enforceable in the immediate possibility of happening of that event4. becomes enforceable only on the happening of that event.Q.3 No contract can arise, if the -1. offer is not made to an ascertained person2. acceptance is made by an unascertained person3. offer is made to an ascertained person4. acceptance is made by an ascertained person.Q.4 Vindictive Damages have been awarded -1. for a breach of promise to marry;2. for wrongful dishonour of a cheque by a banker possessing adequate funds of the customer.3. Either (1) or (2)4. Both (1) and (2)Q.5 Communication of a proposal is complete when it comes to the knowledge of the person towhom it is made.1. True2. Partly True3. False4. None of the above.Q.6 Mere silence is not fraud unless -1. the silence is deceptive2. there is a change in the circumstances to be brought to the notice of other party3. there is a duty to speak4. all the above.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 1
  2. 2. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.7 When two or more persons have made a joint promise, then, unless a contrary intentionappears from the contract, all such persons must fulfill the promise1. jointly2. severally3. jointly and severally4. jointly or severally.Q.8 Where a contract consists of reciprocal promises and such reciprocal promises are to besimultaneously performed -1. Promisor need not perform his part of promise at all2. Promisor need not perform his part of promise unless Promisee is ready and willing to performhis reciprocal promise3. Promisor has to compel Promisee to perform his promise first4. There is no valid contract at all.Q.9 In case of breach of contract of sale of sorne rare article or thing for which there is nosubstitute in the market, the Court may grant -1. Quantum Meruit2. Rescission3. Specific Performance4. Injunction.Q.10 A Minors agreement is void. This was held in the case of1. Mohiri Bibee Vs.Dharmadas Ghosh2. Nihal Chand Vs. Jan Mohamcd Khan3. Suraj Narain Vs.Sukhu Aheer4. Chinnaiya Vs. RamaiyaQ.11 In case of anticipatory breach, the damages will be assessed -1. From the date on which the breach occurred2. From the promised date of performance3. From the date the Court instructs4. From the date as desired by the promisevxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 2
  3. 3. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.12 M. by a Gift deed transferred certain property to her daughter, with a direction thatdaughter should pay an annuity to Ms brother, as had been done by M. On the same day, thedaughter executed a deed in writing in favour of Ms brother, agreeing to pay annuity.Afterwards, she declined to fulfil her promise saying that no consideration had moved from heruncle. Which of the following statements is correct?1. The daughter is bound to pay annuity.2. There is no valid consideration in this contract.3. Ms brother is a third party to the contract and cannot suc.4. The daughter is not bound to pay annuity.Q.13 To be covered under misrepresentation, statement must be wrong, but the person making itbelieved it to be true.1. True2. Partly True3. False4. None of the aboveQ.14 An Executory Consideration is -1. Consideration promised by executive of a Company2. Consideration which consists simply of a mutual exchange of promise each being aconsideration for the other3. Consideration which should be executed on the future date4. Consideration which should be executed before the Court.Q.15 Offering the relief by way of specific performance of contract is :1. At the discretion of the Court2. right of a person and court must give it3. Provided in the Contract Act4. both (2) and (3)Q.16 When a contract is divisible, and one party has enjoyed the benefit of part performance,then, the other party may sue on quantum merit, it is1. False2. Partly True3. True4. Partly Falsevxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 3
  4. 4. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.17 Privity of Contract is subject to the exception _____ .1. Where a trust or charge is created2. Where payment is made to a third party3. Where payment is made by a third party4. None of the aboveQ.18 The mother owes Rs. 10,000 to her daughter. But this debt has become barred by theLimitation Act. The mother signs a written promise to pay Rs. 3,000 on account of the debt. Inthis case which one of the following is correct ?1. There is no contract as the debt is already barred by limitation and so it cannot be revived by asubsequent promise.2. There is no contract because the mother has promised to give only a part of time - barred debt.3. This is enforceable against the mother because such a promise is valid and binding under theIndian Contract Act.4. None of the aboveQ.19 A Quasi - contract under Indian contract Act1. Is an agreement2. Is a contract3. Has only a legal obligation4. None of theseQ.20 X out of natural love and affection promises to give his newly wedded daughter-in-law agolden necklace worth Rs. 20,000, X made the promise in writing and signed it and deliveredthe same to the daughter-in-law. This is :1. Valid2. Without consideration3. Unenforceable4. VoidableQ.21 A contingent contract dependent on the non-happening of specified uncertain event withinfixed time can be enforced if the event _____ .1. Does not happen within fixed time2. Becomes impossible before the expiry of fixed time3. Happens within the fixed time4. Both (1) and (2)vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 4
  5. 5. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.22 Where the contingency of event merely indicates the mode or manner of performance, thecontract is not ______ .1. Valid2. Void3. Contingent4. LawfulQ.23 X owes Rs. 10,000 to Y under a contract it is agreed between X, Y & Z that Y shallhenceforth accept Z as his Debtor instead of X for the same amount. Old debt ofX is discharged, and a new debt from Z to Y is contracted. This is :1. Alteration of contract2. Rescission of contract3. Novation of contract4. All of the aboveQ.24 When a person signifies to another his willingness to do or to abstain from doing anything,with a view to obtaining the assent of that other to such act or abstinence,he is said to -1. enter into a contract2. make a proposal3. accept an offer4. create legal obligation.Q.25 An Agreement made on account of natural love and affection, but without consideration isvalid if it is1. expressed in writing2. registered under law for the time being in force for registration of documents3. made between parties standing in a near relation to each other4. all of the above.Q. 26 Mere silence as to facts, likely to affect the willingness of a person to enter into a contractis not Fraud.1. True2. Partly True3. False4. None of the above.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 5
  6. 6. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.27 An agreement which restricts a persons freedom to marry or to marry any person of hischoice is against public policy and is -1. Lawful2. Illegal3. Void4. EnforceableQ.28 A contracts to act at a theatre for six months for Rs.5 Lakhs paid in advance by B. Onseveral occasions A is too ill to act. The contract to act becomes void on those occasions due to -1. initial impossibility2. subsequent illegality3. subsequent impossibility4. destruction of subject matterQ.29 Assignment by operation of law takes place -1. by the mutual consent of the parties2. by the will of either party3. when the subject matter of a contract ceases to exist4. by the death of a party to a contractQ.30 In which of the ways can a contract be discharged by operation of law?1. Death of Promisor2. Insolvency of Promisor3. Merger of Rights4. All of the aboveQ.31 In cases of refusal to perform by any one party, the other party can -1. ignore the notice of refusal for the time being and wait till the time when the contract is to beexecuted2. waive his right to rescission by acquiescence3. treat the repudiation as wrongful putting an end to the contract4. all the above.Q.32 Death of Offeree before acceptance terminates the offer.1. True2. Partly True3. False4. None of the above.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 6
  7. 7. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.33 An agreement to agree in future is -1. Valid2. Voidable3. Illegal4. InvalidQ.34 Bilateral Mistake as to fact renders an agreement void since -1. There is no consideration2. Such agreements are unlawful.3. There is no agreement as there is absence of consensus.4. It is opposed to public policy.Q.35 An agreement entered into with free consent & lawful but inadequate consideration is :1. Void2. Voidable3. Illegal4. ValidQ.36 As a general rule minors agreements are :1. Void ab initio2. Voidable3. Valid4. UnlawfulQ.37 A minors estate is liable for the ____ supplied to him :1. Luxuries2. Necessities3. Necessaries4. All the thingsQ.38 In a contract both the parties believe that the subject matter of the contract is in existencebut which is infact not in existence. Agreement shall be :1. Valid2. Void3. Void due to bilateral mistake4. Void due to unilateral mistakevxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 7
  8. 8. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.39 A contract with resident of an enemy country is :1. Illegal2. Void3. Valid4. VoidableQ.40 A servant is employed for one year on a monthly salary of Rs. 1800, the whole salary to bepaid at the end of the year. The servant wrongfully leaves the service after six months. Is theentitled to any salary?1. He is entitled to the whole salary2. He is entitled to the salary of six months.3. He is entitled to the salary which his master thinks suitable4. He is not entitled to any salary.Q.41 Suppose the time fixed for performance of the contract has expired but the time is notessential. What is the remedy of the promisee in this case :1. Can rescind the contract2. To claim compensation3. No remedy available4. Cant be determinedQ.42 If time is the essence of a contract and the promisor fails to perform the contract by thespecified time, the contract :1. Remains Valid2. Becomes Void3. Becomes Unenforceable4. Becomes Voidable at the instance of the promiseQ.43 A contract can be discharged by :1. Mutual agreement and performance2. Lapse of time and operation of law3. Breach of contract4. All of theseQ.44 ______ damages are measured on the basis of extent of shock to the sentiments of promisee1. Vindictive2. Nominal3. Loss of reputation4. Discomfortvxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 8
  9. 9. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.45 E contracts to marry F. Before the agreed date of marriage, E marries K. Here, F is entitledto sue E for :1. Anticipatory Breach in an express manner2. Actual Breach in an express manner3. Anticipatory Breach in an implied manner4. Actual Breach in an implied mannerQ.46 The basis of quasi contractual relations is the :1. Existence of a valid contract between the parties2. Prevention of unjust enrichment at the expense of others3. Existence of a voidable contract between the parties4. Provisions contained in section 10 of the Indian Contract ActQ.47 A person enjoying the benefits of a lawful non - gratuitous act of another :1. Is liable to compensate that another2. Has to perform the same non - gratuitous act in return3. Is not liable to compensate that another4. That another cannot claim any compensationQ.48 The Contract of General Insurance is :1. Contingent2. Valid3. Voidable4. None of theseQ.49 In which case the promisor must apply for the performance:1.where no time for performance is specified and the promise is to be performed withoutdemand by the promisee.2.where no place for performance is specified and the promise is to be performed withoutdemand by the promisee.3.where time for performance is specified and the promise is to be performed without demand bythe promisee4. None of these.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 9
  10. 10. [THE INDIAN CONTRACT ACT,1872] December 8, 2010Q.50 Which of the following contract is invalid?1. A verbal promise made without consideration to compensate the person who has already donesomething voluntarily or has done something which the promisor was legally bound to do.2. A written promise to pay time barred debt3. Completed gifts between parties who do not stand in a near relation to each other4. A promise to pay Rs.1000 p.m. to wife for her maintenance by a Hindu Husband by aregistered document after referring to quarrels.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 10