Indian Contract Act — Part 2 MCQs with Explanations

The other party is relieved of his promise is the correct answer to “If a person at whose instance the contract is voidable rescinds it”. This question is standard in competitive examination syllabi for Indian Contract Act.

Quasi-contractual is the correct answer to “A quantum merit claim might arise in situations some of which are contractual and others quasi-contractual. The plaintiff entered into an agreement to write for a periodical and, as per the agreement, he was to receive a lump sum amount on the completion of the work. When the plaintiff had written part of the work, the defendant abandoned the project. The plaintiff was held entitled to sue for the work already done because the plaintiff's claim was-”. This question is standard in competitive examination syllabi for Indian Contract Act.

1 and 2 is the correct answer to “Consider the following statements and point out which of them is correct? 1. An Agreement made without consideration is void. 2. Consideration should have some value in the eyes of the law. 3. Consideration has to be adequate. Which of the statements given above is/are correct”. This question is standard in competitive examination syllabi for Indian Contract Act.

An agreement enforceable by law is the correct answer to “According to Section 2(h) of the Indian Contract Act, a "Contract" is:”. This question is standard in competitive examination syllabi for Indian Contract Act.

Minor's liability is the correct answer to “In the Nash v. Inman case, the issue was:”. This question is standard in competitive examination syllabi for Indian Contract Act.

Legal branch alone can be enforced is the correct answer to “In case of alternative promise, one branch of which is legal and the other illegal-”. This question is standard in competitive examination syllabi for Indian Contract Act.

Neither void nor voidable is the correct answer to “Simrat and Sarthak make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Limitation. The contract is”. This question is standard in competitive examination syllabi for Indian Contract Act.

a-2, b-1, c-4, d-3 is the correct answer to “Match List-I with List-II and select the correct answer using the given below: List-I List-II a. Lapse of offer 1. Week v. Tybald b. General offer 2. Henthon v. Frase c. Communication of proposal 3. Coffee Board v. CCT d. Implied proposal 4. Lalman Shukla v. Gauri Datts”. This question is standard in competitive examination syllabi for Indian Contract Act.

Shakti Vahini v. Union of India is the correct answer to “As per Constitution 'Khap Panchayats have no authority to order honour killing' is held in”. This question is standard in competitive examination syllabi for Indian Contract Act.

Positive assertion of unwarranted statements is the correct answer to “Under the Indian Contract Act 1872 Which one of the following does not fall in the meaning of fraud:”. This question is standard in competitive examination syllabi for Indian Contract Act.

Agree upon the same thing in the same sense is the correct answer to “For a binding contract both the parties to the contract must”. This question is standard in competitive examination syllabi for Indian Contract Act.

Property is the correct answer to “Which one of the following ingredients is not necessary for contract”. This question is standard in competitive examination syllabi for Indian Contract Act.

A contingent contract is the correct answer to “A contract based on the happening or non-happening of a future event under section 31 is called”. This question is standard in competitive examination syllabi for Indian Contract Act.

Either A or B or C is the correct answer to “An agent appointed by more than one principal is liable”. This question is standard in competitive examination syllabi for Indian Contract Act.

There is no intention to create legal relationship is the correct answer to “A invites B for his son's wedding. B accepts the invitation. In this case, there is an agreement but no contract, since”. This question is standard in competitive examination syllabi for Indian Contract Act.

No is the correct answer to “A, writes a letter to B offering to sell his car at Rs. 2 lac and states that if he does not receive a reply within 15 days of the receipt of the letter by B, the offer shall be deemed to have been accepted. B does not send a reply even after 15 days of the receipt of the letter by B. Has the offer been validly accepted”. This question is standard in competitive examination syllabi for Indian Contract Act.

a-2, b-3, c-4, d-1 is the correct answer to “Match List I with List II and select the correct answer by using the given below the lists: List I (Case) List II (Principle) a. Lalman Shukla v. Appana Dutt 1. Privity of Contract b. McPherson v. Appanna 2. General offer c. Banwarilal v. Sukhdarshan Dayal 3. Invitation to treat d. M. C. Chackoo v. State Bank of Travancore 4. Intention to create legal relationship”. This question is standard in competitive examination syllabi for Indian Contract Act.

Manner is the correct answer to “Which of the following is not relevant in determining the quantum of damage under Section 73 of the Indian Contract Act”. This question is standard in competitive examination syllabi for Indian Contract Act.

Both 1 and 2 is the correct answer to “Consider the following statements: The communication of an acceptance is complete 1. As against the acceptor when it comes to the knowledge of the proposer. 2. As against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor. Which of the statements given above is/are correct”. This question is standard in competitive examination syllabi for Indian Contract Act.

Liquidated damages is the correct answer to “If the compensation to be paid on breach of contract is the genuine pre-estimate of the prospective damages, it is known as”. This question is standard in competitive examination syllabi for Indian Contract Act.

That the offer must be communicated to the person to whom it is made is the correct answer to “The word 'signifies' in the definition of S. 2 of the Indian Contract Act, 1872 indicates:”. This question is standard in competitive examination syllabi for Indian Contract Act.

Both (A) and (R) are wrong is the correct answer to “Read Assertion (A) and Reason (R) and answer using given below: Assertion (A): Compensation is recoverable for any loss or damage which the parties knew at the time of the contract as unlikely to result from the breach of the contract. Reason (R): Because above rule is laid down in Hadley v. Baxendale case.”. This question is standard in competitive examination syllabi for Indian Contract Act.

Entitled to be reimbursed by B is the correct answer to “Where A a tenant, pays the property tax on behalf of owner B, who is bound to pay it, A is”. This question is standard in competitive examination syllabi for Indian Contract Act.

Has the same effect as though it was caused by a mistake of fact is the correct answer to “A contract caused by mistake of law not in force in India:”. This question is standard in competitive examination syllabi for Indian Contract Act.

Both A and B is the correct answer to “An agreement to refer the dispute to the arbitrator is valid”. This question is standard in competitive examination syllabi for Indian Contract Act.

No is the correct answer to “Whether all agreements made without consideration are void”. This question is standard in competitive examination syllabi for Indian Contract Act.

B is entitled to recover form A such compensation, not exceeding Rs. 1,000, as the Court considers reasonable is the correct answer to “A contract with B to pay B Rs. 1,000 if he fails to pay B Rs. 500 on that day.”. This question is standard in competitive examination syllabi for Indian Contract Act.

Valid is the correct answer to “Where one of the parties is under a mistake as to matter of fact the contract is”. This question is standard in competitive examination syllabi for Indian Contract Act.

Section 129 is the correct answer to “Which of the following deals with "Continuing guarantee" in the Indian Contract Act, 1872”. This question is standard in competitive examination syllabi for Indian Contract Act.

To whom the guarantee is given is the correct answer to “Creditor is a person”. This question is standard in competitive examination syllabi for Indian Contract Act.

Compensation for loss of profit alongwith any damages which he might have to pay to B on account of breach is the correct answer to “A having contracted with B to supply B with 1000 tons of iron at 100 Rs. a ton, to be delivered at a stated time, contracts with C for the purchase of 1000 tons of iron at 80 Rs. a ton, telling C that he requires so for the purpose of performing his contract in B. C fails to perform, A will be entitled to”. This question is standard in competitive examination syllabi for Indian Contract Act.

The minor is entitled to enforce his claim for compensation for loss of property against the insurance company is the correct answer to “If a minor's guardian makes a contract with an insurance company insuring minor's property against fire, in the event of fire”. This question is standard in competitive examination syllabi for Indian Contract Act.

Void is the correct answer to “A' promises 'B' a job in government service and 'B' promises to pay? 10,000 for it. The agreement is-”. This question is standard in competitive examination syllabi for Indian Contract Act.

Is extinguished by his parting with the possession of the goods is the correct answer to “Right of lien, of an agent”. This question is standard in competitive examination syllabi for Indian Contract Act.

Mistake of law in force in India is the correct answer to “Which of the following does not vitiate free consent under the provisions of Contract Act”. This question is standard in competitive examination syllabi for Indian Contract Act.

Either A or B is the correct answer to “Duty to mitigate damages on the part of injured party arises”. This question is standard in competitive examination syllabi for Indian Contract Act.

They agree upon the same thing in the same sense is the correct answer to “Two or more persons are said to consent when”. This question is standard in competitive examination syllabi for Indian Contract Act.

The individual has no choice but to accept is the correct answer to “In standard form contracts”. This question is standard in competitive examination syllabi for Indian Contract Act.

Both A and C is the correct answer to “A contracts with B to deliver to him, at a specified price, certain merchandise on board a ship which cannot arrive for a month, and B engages to pay for the merchandise within a week from the date of the contract. B does not pay within a week.”. This question is standard in competitive examination syllabi for Indian Contract Act.

It is forbidden by law is the correct answer to “Under the Contract Act, the consideration or object of an agreement is lawful, unless:”. This question is standard in competitive examination syllabi for Indian Contract Act.