Law of Contract MCQs for Law Aspirants: Solved High-Quality MCQs for Judiciary Prelims

Law of Contract - Solved High-Quality MCQs for Judiciary Prelims

Q.1) How many person are required to form a contract?

[A] one

[B] two

[C] two or more

[D] four

Q.2) Where is the definition of the term "Contract" enshrined under the Indian Contract Act, 1872?

[A] Section 2(a)

[B] Section 2(b)

[C] Section 2(d)

[D] Section 2(h)

Q.3) Under which section an agreement not enforceable by law is void?

[A] Section 2(d)

[B] Section 2(e)

[C] Section 2(g)

[D] Section 2(a)

Q.4) The Indian Contract extends to:

[A] the whole of India

[B] the whole of India excluding the State of Jammu and Kashmir

[C] all the States and union territories of India

[D] the whole of British India

Q.5) “A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.” is enshrined under which section of the Indian Contract Act, 1872?

[A] Section 2(d)

[B] Section 2(g)

[C] Section 2(j)

[D] Section 2(e)

Q.6) An offer or a contract can be entered into by?

[A] legal representative

[B] agent

[C] promisor

[D] all the above

Q.7) Indian contracts are governed by which legislation?

[A] Indian Contract Act, 1872

[B] Indian Contract Act, 1862

[C] Indian Contract Act, 1972

[D] Indian Contract Act, 1962

Q.8) A void agreement is :

[A] valid but not enforceable

[B] enforceable at the option of both parties

[C] enforceable at the option of one

[D] not enforceable by law

Q.9) When consent of either of the parties to the contract is not free, the contract is:

[A] void

[B] voidable

[C] valid

[D] void or voidable

Q.10) When consent of the parties to the contract is obtained by fraud or coercion, the contract is:

[A] void

[B] voidable

[C] valid

[D] all of these

Q.11) When consent is not said be free consent?

[A] under undue influence

[B] under coercion

[C] fraud or misrepresentation

[D] all of these

Q.12) When consent to an agreement is obtained by undue influence, the agreement is voidable at the option of which party?

[A] either of the parties to the agreement

[B] the party whose consent is obtained maliciously

[C] the party who obtained the consent

[D] none of the above

Q.13) A contract in which the obligation of the parties is outstanding and a contract in which the obligation is to be performed in future are respectively called:

[A] executory and bilateral

[B] executory and unilateral

[C] bilateral and executory

[D] unilateral and executory

Q.14) "An acceptance is complete as soon as the letter of acceptance is posted—whether it reaches the offeror or not.” Which of the following is true with regard to the above statement ?

[A] According to Indian law, the rule is valid.

[B] According to English rule, the rule is valid.

[C] Both Indian and English law follow the same rule.

[D] none of the above

Q.15) What does a void agreement signify?

[A] illegal in nature

[B] not enforceable by law

[C] violating legal procedure

[D] against public policy

Q.16) Which of the following is correct?

[A] Proposal + acceptance = promise

[B] Promise + consideration = agreement

[C] Agreement + enforceability = contract

[D] All of the above

Q.17) Under Section 2 (c) who is a promisor?

[A] person who makes the proposal

[B] person who accepts the proposal

[C] person who makes the promise

[D] All of the above

Q.18) Under Indian Contract Act, 1872 when is the communication of the proposal completed?

[A] it is put in the course of transmission

[B] it comes to the knowledge of the proposer

[C] the proposal is communicated to the person to whom it is made

[D] all of the above

Q.19) A valid acceptance must be :

[A] absolute

[B] unqualified

[C] both absolute and unqualified

[D] conditional

Q.20) What will be the liability in a contract with a minor?

[A] jointly

[B] severally

[C] jointly or severally

[D] jointly and severally

Q.21) When two or more persons have made a joint promise, then, unless a contrary intention appears from the contract, all such persons must fulfil the promise:

[A] valid contract

[B] void contract

[C] voidable contract

[D] voidable at the option of either party

Q.22) When is the revocation of the proposal complete under the Indian Contract Act, 1872?

[A] when it is dispatched

[B] when it is received by the offeree

[C] when it comes to the knowledge of the offeree

[D] when it is communicated before the communication of acceptance is complete.

Q.23) In which landmark case the agreement with the minor was held void?

[A] Mohiri Bibee v. Dharmadas Ghosh

[B] Nihalchand v. Jan Mahomed Khan

[C] Suraj Narain v. Sukhu Ahir

[D] Chinnaya v. Ramayya

Q.24) How can the acceptance of the proposal be made?

[A] by notice of acceptance

[B] by performance of condition of proposal

[C] by acceptance of consideration for a reciprocal promise

[D] by performing conditions or receiving consideration

Q.25) When the valid offer will be formed in the case of a general offer?

[A] must have the knowledge of the offer

[B] need not have the knowledge of the offer

[C] may acquire the knowledge of the offer after the performance of the condition amounting to acceptance

[D] should not accept at all

Q.26) Competency of the parties to the contract is enshrined under the Indian Contract Act, 1872 includes which aspects?

[A] age of the parties

[B] soundness of mind of the parties

[C] not disqualified by law from contracting

[D] all of these

Q.27) Enforceable agreements are those contracts:

[A] made with free consent

[B] parties to the contract are competent to enter into an agreement

[C] having lawful consideration and lawful object

[D] all of these

Q.28) Which of the following statement(s) pertaining to the standard form of contracts is/are true?

[A] It is a valid agreement enforceable law.

[B] One party has no choice but to accept and sign the contract or reject the contract

[C] Both (a) and (b).

[D] None of the above

Q.29) A general offer is an offer that is open to the world at large. How is it accepted?

[A] by sending a communication of acceptance.

[B] by complying with the conditions of the offer

[C] by tendering himself to comply with the conditions of the offer

[D] none of the above

Q.30) ________________ is absolute and capable of converting an agreement into a contract

[A] Invitation to offer

[B] Offer

[C] Acceptance

[D] all the above

Q.31) A valid proposal can be made in which of the following manner?

[A] words (written only)

[B] words (written or spoken)

[C] words

[D] a letter

Q.32) Invitation to offer is a/an:

[A] publication of offer

[B] circulation of offer

[C] acceptance of offer

[D] none of these

Q.33) Which of the following is not the general rule of acceptance?

[A] It must be communicated to the offeror.

[B] It need not be in the prescribed mode.

[C] Must be given before the offer lapses.

[D] Mere silence is not acceptance.

Q.34) An agreement which is enforceable by law at the option of one party thereto, but not at the option of the other is known as:

[A] void contract

[B] unenforceable contract

[C] voidable

[D] illegal contract

Q.35) A contract which is valid in itself but is not capable of being enforced in a court of law is known as

[A] valid contract

[B] void contract

[C] unenforceable contract

[D] contract of guarantee

Q.36) A contract implied by law is known as:

[A] quasi-contract

[B] contingent contract

[C] implied contract

[D] executor contract

Q.37) An agreement enforceable by law is known as:

[A] promise

[B] contract

[C] obligation

[D] lawful

Q.38) When a proposal/offer has been accepted, what is it called?

[A] promise

[B] contract

[C] offer

[D] acceptance

Q.39) What is the definition of offer under Section 2(a)?

[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

[D] none of the above

Q.40) Every promise and every set of promises forming the consideration for each other is:

[A] agreement

[B] contract

[C] reciprocal promises

[D] acceptance

Q.41) What does the phrase "consensus ad idem" means?

[A] general consensus

[B] reaching an agreement

[C] meeting of minds upon the same thing in the same sense

[D] all of the above

Q.42) When an offer is made to a definite group of persons, it is known as what?

[A] a general offer

[B] a group offer

[C] a specific offer

[D] an open offer

Q.43) When a contract is made without consideration, the contract is:

[A] void

[B] voidable

[C] illegal

[D] valid

Q.44) What is the status of an agreement by way of a wager?

[A] a voidable contract

[B] an express contract

[C] a wagering contract

[D] a void contract

Q.45) _______________ does not provide for any legal remedy

[A] An illegal agreement

[B] A valid contract

[C] A void contract

[D] An unenforceable contract

Q.46) Is a contract made by spoken words a valid contract?

[A] an implied contract

[B] an express contract

[C] a tacit contract

[D] a void contract

Q.47) When a person invites the other party to make an offer, he is said to make a/an:

[A] proposal

[B] invitation to offer

[C] offer

[D] acceptance

Q.48) A Voidable contract is one which is:

[A] proposal

[B] invitation to offer

[C] offer

[D] void at the option of the aggrieved party

Q.49) _______________ is a contract though the parties never expressed their intention to enter into a contract.

[A] Express contract

[B] Implied contract

[C] Electronic contract

[D] Unlawful contract

Q.50) A contract under seal is one which derives its binding force from:

[A] the court

[B] the fact

[C] the law

[D] the form itself

Q.51) When the offeree makes modifications and variations in the terms of the original offer, he is said to have made a:

[A] cross offer

[B] counter offer

[C] general offer

[D] continuing offer

Q.52) A contingent contract is:

[A] void

[B] voidable

[C] valid

[D] illegal

Q.53) Sometimes, a party is entitled to claim compensation in proportion to the work done by him. What is it called?

[A] damages

[B] injunction

[C] quantum meruit

[D] none of the above

Q.54) According to enforceability, the contracts may be classified as:

[A] valid contracts

[B] void contracts

[C] voidable contracts

[D] all of the above

Q.55) A wrong representation when made without any intention to deceive the other party amounts to:

[A] coercion

[B] undue influence

[C] misrepresentation

[D] fraud

Q.56) Which one of the following is not the legal requirement of a valid offer?

[A] It must be communicated to the other party.

[B] It must express the offeror’s final willingness.

[C] It must be made specific to a person and not public at large.

[D] It must have clear and definite terms.

Q.57) Which of the following statement is correct?

[A] Ordinary damages are recoverable.

[B] Special damages are recoverable only if the parties know about them.

[C] Remote or indirect damages are not recoverable.

[D] None of these

Q.58) Can a person who is usually of unsound, but occasionally of sound mind, make a contract?

[A] Yes, he can always make a contract.

[B] Yes, but only when he is of sound mind.

[C] No, he cannot make a contract.

[D] Yes, he can occasionally make a contract.

Q.59) An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others is a valid contract.

[A] True

[B] False

[C] Partly True

[D] Partly False

Q.60) Where a party to a contract perpetrates fraud or misrepresentation, but the other party is not, in fact, misled by such fraud or misrepresentation, the contract cannot be avoided by the latter.

[A] True

[B] False

[C] Partly True

[D] Partly False

Q.61) What is the effect of death or insanity of the offeror on the proposal made?

[A] operates as revocation of the proposal irrespective of whether the acceptor has the knowledge of the same prior to his acceptance

[B] operates as revocation only if the acceptor knows about it before acceptance

[C] operates as revocation from the date of death or insanity

[D] offer terminates even if the offeree is unaware of death or insanity

Q.62) Which of the following statements are correct?

[A] In the case of fraud, the person making the representation believes it to be true.

[B] In the case of misrepresentation, the maker does not believe it to be true.

[C] Fraud does not afford a ground for bringing an action in tort for damages; whereas misrepresentation does.

[D] In the case of misrepresentation, the fact the plaintiff had means of discovering the truth by exercising ordinary will be binding

Q.63) When is the communication of the offer complete under section 4 of the Indian Contract Act, 1872?

[A] it comes to the knowledge of the person to whom it is made

[B] act is done according to the offer without knowledge of the offer

[C] the letter containing the proposal is put in the course of transmission

[D] all of the above

Q.64) What is the effect of coercion, fraud and misrepresentation on a contract?

[A] void on the option of the party whose consent was so caused

[B] voidable on the option of the party whose consent was so caused

[C] valid for both sides

[D] none of the above

Q.65) In order to convert a proposal into a promise, the acceptance must be

[A] conditional

[B] unconditional

[C] absolute

[D] none of the above

Q.66) A, by a letter, offers to sell his TV to B for Rs 10,000. Without knowing A’s offer, B, by a letter, offers to buy the same TV from A for Rs 10,000. Here:

[A] a binding contract comes into existence as B’s letter is equivalent to acceptance of A’s offer

[B] no binding contract comes into existence as B’s letter is merely a cross-offer

[C] both are correct

[D] both are incorrect

Q.67) A and B both believe that a particular kind of rice is being sold in the market at Rs 3000 per quintal and A sells rice of that kind to B at Rs 3000 per quintal. But, in fact, the market price was Rs 4000. The contract is:

[A] valid

[B] void

[C] voidable

[D] illegal

Q.68) A agrees to pay Rs 1,00,000 to B if he brings a star from the sky. What type of contract it is?

[A] illegal

[B] valid

[C] voidable

[D] void

Q.69) A offers to sell his car to B for Rs 50,000. B agrees to buy the car offering Rs 45,000. What is the proposal of B called?

[A] invitation to offer

[B] counter-offer

[C] standing offer

[D] none of the above

Q.70) What can be the types of consideration?

[A] executed

[B] executory

[C] past consideration

[D] all of the above

Q.71) What is excuted consideration?

[A] an act of mutual exchange of promises

[B] an act done in the expectation of a proposal

[C] an act done by one party as part of his promise

[D] past consideration

Q.72) According to Section 23 of the Indian Contract Act, 1872, which considerations and objects are unlawful?

[A] Where it is forbidden by law or defeats the provisions of any law.

[B] Which is fraudulent

[C] Which is immoral or against the public policy

[D] All of the above.

Q.73) Will the inadequacy of consideration be taken note by the court of law?

[A] when the promisor expresses his desire to get maximum returns for his promise

[B] when the promisor performs his promise

[C] when fraud, coercion, undue influence in the formation of the contract is pleaded

[D] always at the discretion of the court

Q.74) An agreement without consideration is void except in case of compensation for :

[A] voluntary services rendered

[B] voluntary services rendered at the request of the other party to the agreement

[C] reimbursement of debt incurred

[D] none of the above

Q.75) What is the meaning of consideration in layman's tongue?

[A] anything in return

[B] something in return

[C] everything in return

[D] nothing in return

Q.76) What is the status of the contract with a third party?

[A] valid

[B] cannot sue

[C] void

[D] none of the above

Q.77) In case of a family settlement, the agreement can be enforced by:

[A] male members only

[B] female members only

[C] members who originally had not been parties to the settlement

[D] members who originally had been parties to the settlement

Q.78) What does the consideration by the promisor mean?

[A] payment for goods or services

[B] assets

[C] obligation

[D] kind

Q.79) To make a promise to pay for the past voluntary services as a valid contract, a ________________ must be in existence at the time of service rendered.

[A] promise

[B] third party

[C] promisor

[D] all the above

Q.80) The doctrine of “privity of contract” was laid down in which case?

[A] Carlill v. Carbolic Smoke Ball & Co.

[B] Balfour v. Balfour

[C] Tweddle v. Atkinson

[D] Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd.

Q.81) What does the phrase “quid pro quo” mean?

[A] something in return

[B] stranger to consideration

[C] something sensible

[D] something valuable

Q.82) In India, a person who is a stranger to the consideration:

[A] can sue on the contract

[B] cannot sue on the contract

[C] depends on the parties

[D] depends on the circumstances

Q.83) What is executed consideration?

[A] mutual contract

[B] proposal

[C] promise

[D] past consideration

Q.84) What is a promise unsupported by consideration called?

[A] Proposal

[B] acceptance

[C] invalid contract

[D] nudum pactum

Q.85) In Indian law, consideration must have been given at the desire of the promisor; if it is done at the instance of a third party or without the desire of the promisor, it is:

[A] consideration

[B] invalid consideration

[C] offer

[D] promise

Q.86) Is an agreement without consideration valid?

[A] when made out of love and affection due to a 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

Q.87) What do the words “has done” or “abstained from doing” refer to?

[A] present consideration

[B] past consideration

[C] future consideration

[D] all the above

Q.88) A person who is not a party to the trust can enforce the same if the following conditions are satisfied.

[A] He must be clearly named as a beneficiary under the trust or charge.

[B] The trust or charge in his favour must be of specific property

[C] The benefit to the beneficiary must be of Rs 50,000 or more

[D] Both (a) and (b).

Q.89) A person for whose benefit a provision is made in the partition deed of joint family property but he is not a party to such settlement:

[A] cannot sue, as a partition of property is not a recognised exception

[B] can sue, as it is a recognised exception to the rule of privity of contract

[C] can sue, after becoming party to the settlement

[D] can sue, only if the court allows him to do so

Q.90) A does some service to B at B’s desire. After a month B promises to compensate A for the service. It is a:

[A] present consideration

[B] future consideration

[C] past consideration

[D] none of the above

Q.91) A saves B’s life and B promises to pay A Rs 1 lakh out of gratitude. What type of consideration it is?

[A] There is no consideration, hence the contract is void

[B] It is a void contract as Rs 1 lakh is too little to save a life

[C] It is a valid contract because the consideration for B’s promise is the present consideration

[D] It is a valid contract because the consideration for B’s promise is past consideration.

Q.92) A invites B for coffee in Coffee Day Restaurant and B accepts the invitation. On the appointed date, B goes there but A does not come. Can A sue B for breach of contract?

[A] There is no consideration, hence the contract is void

[B] B has to wait for another invitation from A

[C] B can sue A for not honouring his words

[D] cannot sue, there was no contract.

Q.93) A invites B to his son’s wedding. B accepts the invitation. Is this a valid contract?

[A] there is no consideration

[B] there is no intention to create a legal relationship

[C] there is no formal acceptance of the offer

[D] all of these

Q.94) 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 made while the offer is subsisting

[D] Acceptance should in all cases be through registered post

Q.95) The forbearance to sue is regarded as:

[A] invalid consideration

[B] no consideration

[C] valid consideration

[D] none of the above

Q.96) ________________ may relate to past, present or future

[A] consideration

[B] offer

[C] acceptance

[D] all the above

Q.97) Without consideration, no contract will be:

[A] acceptance

[B] offerable

[C] valid

[D] enforceable

Q.98) A valid may consideration includes:

[A] executed or executory consideration

[B] future consideration

[C] inadequate consideration

[D] all of the above

Q.99) Humdard Dawakhana is a drug-producing and manufacturing company. It advertised that its new medicine 'Covid Ball' can cure anyone of the deadly Covid-19 disease and anyone who is not cured will be provided with the double money paid for the medicine. What is the nature of the offer?

[A] It is a valid offer

[B] It is an invalid offer

[C] It is an invitation to offer

[D] It is a voidable offer

Q.100) When is the communication of proposals, the acceptance of proposals and the revocation of proposals deemed to be made?

[A] Only on clear verbal communication of such proposal, acceptance or revocation

[B] By any act or omission of the party by which he intends to communicate such proposal, acceptance or revocation or which has the effect of communicating it

[C] Only when the proposal, acceptance or revocation of the proposal is recorded in writing

[D] Only when the proposal, acceptance or revocation of the proposal is received and understood by the other party receiving the information

Answers