Question 1

The Indian Contract Act came into force on:
A)15th September, 1872
B)1st September, 1872
C)1st October, 1872
D)15th October, 1872.

Accepted Answer

B

Question 2

The Indian Contract Act, applies to the:
A)Whole of India excluding Jammu & Kashmir
B)Whole of India including Jammu & Kashmir
C)States notified by the Central Government from time to time
D)None of the above.

Accepted Answer

The Indian Contract Act, 1872, applies to the whole of India including Jammu & Kashmir following the abrogation of Article 370, which allowed Jammu & Kashmir to have its own set of laws.

Question 3

An agreement consists of reciprocal promises between at least
A)four parties.
B)six parties.
C)three parties.
D)two parties.

Accepted Answer

An agreement consists of reciprocal promises between at least two parties, where each party has a commitment to the other.

Question 4

Every promise and every set of promise forming the consideration for each other is a/an
A)contract.
B)agreement.
C)offer.
D)acceptance.

Accepted Answer

The answer of Every promise and every set of promise...

Question 5

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)

Accepted Answer

A contract is defined as an agreement enforceable by law under Section 2(h) of the Indian Contract Act, 1872.

Question 6

Valid contracts
A)are made by free consent.
B)are made by competent parties.
C)have lawful consideration and lawful object.
D)all of the above.

Accepted Answer

Valid contracts must be made by free consent of the parties, involve competent parties, and have lawful consideration and a lawful object. All these elements are essential for a contract to be considered valid.

Question 7

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.

Accepted Answer

The answer of A contract creates
A)rights and obligations of the...

Question 8

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.

Accepted Answer

In agreements of a purely domestic nature, such as those between family members, the intention to create legal relations must be proved to the satisfaction of the court, as it is not automatically presumed to exist.

Question 9

………………. is forbidden by law.
A)Valid contract
B)Illegal agreement
C)Voidable contract
D)Unenforceable contract

Accepted Answer

An illegal agreement is one that is forbidden by law due to the nature of the activities it involves, such as activities that are criminal, immoral, or opposed to public policy.

Question 10

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.

Accepted Answer

An agreement to beat a business competitor is illegal as it involves committing a crime or tort against another person. Therefore, it is considered an illegal agreement.

Question 11

Which of the following legal statement 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)]

Accepted Answer

Not all agreements are contracts; only those agreements which are enforceable by law are considered contracts. This is because a valid contract requires certain elements such as offer, acceptance, consideration, and legal purpose, among others.

Question 12

……………… is made by words written.
A)Express contract
B)Implied contract
C)Tacit contract
D)Unlawful contract

Accepted Answer

An express contract is a type of contract where the terms and conditions are stated in words, either orally or in writing, making it clear and explicit.

Question 13

Agreement the meaning of which is uncertain is
A)Void
B)Valid
C)Voidable
D)Illegal

Accepted Answer

An agreement with uncertain meaning is considered void because it lacks clarity and definiteness, making it unenforceable in a court of law.

Question 14

Which of the following relationship raise presumption of positive influence?
A)Parent and Child
B)Religious/ Spiritual Guru and disciple
C)Guardian and Ward
D)All of the above

Accepted Answer

The relationships between a parent and child, a religious/spiritual guru and disciple, and a guardian and ward all inherently involve a dynamic where one party is likely to have a significant influence over the other due to the nature of trust, dependency, and authority in these relationships. This creates a presumption of positive influence where the more dominant or authoritative figure is presumed to have a significant impact on the decisions or actions of the other.

Question 15

Which of the following is false with respect to minor 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

Accepted Answer

Contracts involving a minor as a beneficiary are generally enforced for the benefit of the minor, not at the option of the third party. The enforceability of such contracts is primarily to protect the minor's interests, not to give third parties discretion over the contract's validity.

Question 16

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.

Accepted Answer

Implied contracts are created by the conduct of the parties, rather than by express words. Drawing cash from an ATM and sale by fall of hammer at an auction sale are both examples of implied contracts.

Question 17

…………….. 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

Accepted Answer

A unilateral contract is a type of agreement in which an offeror promises to pay after the occurrence of a specified act. In this contract, only one party (the offeror) has a contractual obligation to perform if the other party decides to accept the offer by performing the specified act.

Question 18

All Contract is a/an ……………..
A)Offer
B)Agreement
C)Acceptance
D)Tr

Accepted Answer

The answer of All Contract is a/an ……………..
A)Offer
B)Agreement
C)Acceptance
D)Tr...

Question 19

A/an …………… is every Promise and every set of promises, forming consideration for each other
A)Offer
B)Agreement
C)Acceptance
D)Tr

Accepted Answer

An offer is every promise and every set of promises, forming consideration for each other.

Question 20

Every agreement and promise enforceable by law is …………….
A)Offer
B)Contract
C)Acceptance
D)Consideration

Accepted Answer

A contract is defined as an agreement enforceable by law, distinguishing it from mere agreements or promises that may not have legal binding.

Quiz 1: The Indian Contract Act and Contracts

The Indian Contract Act came into force on:

The Indian Contract Act, applies to the:

An agreement consists of reciprocal promises between at least

Every promise and every set of promise forming the consideration for each other is a/an

Contract is defined as an agreement enforceable by law, vide Section … of the Indian Contract Act.

Valid contracts

A contract creates

In agreements of a purely domestic nature, the intention of the parties to create legal relationship is

………………. is forbidden by law.

A makes a contract with B to beat his business competitor. This is an example of

Which of the following legal statement is incorrect?

……………… is made by words written.

Agreement the meaning of which is uncertain is

Which of the following relationship raise presumption of positive influence?

Which of the following is false with respect to minor entering a contract?

Drawing cash from ATM, sale by fall of hammer at an auction sale, etc., are example of

…………….. is a one-sided contract in which only one party has to perform his promise or obligation.

All Contract is a/an ……………..

A/an …………… is every Promise and every set of promises, forming consideration for each other

Every agreement and promise enforceable by law is …………….