#MCQ on Law of Contracts

1. The Law governing contracts in India is

a. The Indian Contract Act,1872

b. The Indian Partnership Act, 1932

c. The Indian Contract Act, 1932

d. The Indian Partnership Act,1872

Ans: a

2. Which of these is not essential in a contract

a. Lawful Consideration

b. Valuable Consideration

c. Mutual Consideration

d. Proportionate Consideration

Ans:d

3. In which of these situations can the offer be said to have been validly revoked

a. A sends an email to B with an offer to sell a House. B sends a reply back which A

receives and opens. He rethinks the offer and then sends a revocation.

b. A sends a slow mail to B to sell 10 oranges. B receives the offer, and sends his

consent by email. In the meantime A sends a letter of revocation which A receives

after B has received and read the contents of the email.

c. None of the above are valid revocations

d. Both of the above are valid revocations

Ans: c

4. Which of these is not an invitation to offer

a. Auction amount

b. Tender

c. Invitation of interest

d. Postal offer

Ans:d

5. Which of these contracts are void ab initio

a. A contract with a minor

b. An agreement between two parties

c. A contract in which there is mistake as to law.

d. All the above

Ans:a

6. Which of these contracts are voidable

a. Consent given by misrepresentation

b. When the object is unlawful

c. Contract with a minor

d. None of the above

Ans:a

7. Which of these statements is untrue about Consideration

a. Consideration to be given at the desire of the promisor.

b. Consideration need not to be given by the promisor or any other person.

c. Consideration should be real not adequate.

d. Consideration should flow from both the parties.

Ans:b

8. Promissory Estoppel refers to

a. a contract

b. a gratuitous promise

c. a unilateral promise not enforceable in the eyes of law

d. None of the above

Ans:a

9. Free consent is vitiated by the presence of

a. Intimidation

b. Duress

c. Threats towards the enforcement of contract

d. None of the above

Ans:a

10. Which of these will not be coercion

a. Threat to commit suicide

b. Threat to commit murder

c. Threat to commit culpable homicide not amounting to murder

d. All of the above will be coercion

Ans:d

11. The essential difference between fraud and misrepresentation is

a. Passive deceit

b. Lack of motive

c. Scale of operation

d. All of the above

Ans:a

12. Which of these is not recognized in Indian Law

a. Coercion

b. Duress

c. Unconscionable bargains

d. None of the above

Ans:b

13. Mistake is permitted in contract where mistake is that of

a. Fact

b. Law

c. Neither Law neither fact

d. None of the above

Ans:c

14. Which of these contracts will not be valid contract in India

a. Contract for procurement of drugs

b. Contract for assisting Mr. Pappu Commit euthanasia

c. Both a and b are valid contracts

d. Both a and b are invalid contracts

Ans:d

15. Bailor is the person whereas Bailee is the person who

a. Gives the goods and receives the goods respectively

b. Receives the good and gives the good respectively

c. Person who acts as security for bail and the accused respectively

d. None of the above

Ans:a

16. Where would the Partner not be liable for the conduct of other Partners

a. When the partner acts outside the scope of partnership

b. When the partner exceeds the mandate of responsibilities in a task entrusted

c. When the partner undertakes a business decision which is not favorable post facto

d. All of the above

Ans:a

17. Indian Partnership Act allows only X partners in general and Y partners for banking

firms

a. 15,17

b. 20,7

c. 20,10

d. 50,50

Ans:b

18. Which of these remedies are not available in a breach

a. Declaration of Recession

b. Suit for Specific Performance

c. Suit for Liquidated Damages

d. Suit to bar the promisor to enter into like contracts with persons in the future

Ans:d

19. X lends Y a cow and the cow gives birth to a calf. The calf shall belong to

a. X

b. Y

c. Meat to X and Milk to Y

d. For six months to X and six months to Y

Ans:a

20. Which of these duties are not ascribable to the Bailee

a. Extra precautions in excess of the reasonable standard

b. Duty not to mix the goods if they cannot be separated

c. Regular upkeep of the goods

d. All of the above are ascribable

Ans:a