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Indian Contract Act - I

Description: Indian Contract Act-I
Number of Questions: 24
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Tags: Indian Contract Act-I The Indian Contract Act , 1872
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The Indian Contract Act came into force w.e.f. the year

  1. 1932

  2. 1872

  3. 1930

  4. 1881


Correct Option: B
Explanation:

It came into force on 1 September, 1872. Indian Partnership Act came into force from the year 1932 and the Sale of Goods Act from 1930.

Agreement opposite to public policy is _______.

  1. unlawful contract

  2. voidable contract

  3. void contract

  4. void ab initio


Correct Option: A
Explanation:

Any contract opposite to public policy is unlawful contract. Void contracts are those which were otherwise valid but had become void due to certain event. A contract is voidable if it is caused by fraud, coercion etc.

________ is the foundation of every contract.

  1. Promise

  2. Desire

  3. Proposer

  4. Agreement


Correct Option: D
Explanation:

Contract is formed by agreement between the parties. Desire is mere intention to do any work. Proposer is the person who makes offer. Promise is the statement of offer made to other party.

Which of the following agreements can become a contract?

  1. Social

  2. Domestic

  3. Religious

  4. Legal


Correct Option: D
Explanation:

The social, domestic and religious agreements are not enforceable.

'Consensus ad idem' means

  1. absence of minds

  2. meeting of minds

  3. meeting of hearts

  4. meeting of brains


Correct Option: B
Explanation:

It means 'meeting of minds'. If the both parties agree upon the same thing in the same sense, it is known as 'consensus ad idem'.

Which of the following terms means something in return?

  1. Offer

  2. Promise

  3. Consideration

  4. Acceptance


Correct Option: C
Explanation:

Consideration is something for which the promise of other party is bought. Offer means the intention made to other party. Promise is the statement of offer made to other party. Acceptance is the confirmation of the offer.

If the object of any contract is unlawful, it is a _____ contract.

  1. valid

  2. voidable

  3. void

  4. void ab initio


Correct Option: D
Explanation:

Any contract unlawful from its inception is void ab initio. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Void contracts are those which were otherwise valid but had become void due to certain event.

A promises to paint a picture for B, but he dies before the execution of his promise. The contract has become 

  1. valid

  2. voidable

  3. void

  4. void ab initio


Correct Option: C
Explanation:

Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Any contract unlawful from its inception is void ab initio.

The agreement which fulfills all the provisions of law is

  1. valid contract

  2. voidable contract

  3. void contract

  4. void ab initio


Correct Option: A
Explanation:

A contract is valid if it fulfills the conditions as laid down in Section 10.

Which of the following is a valid contract?

  1. A promises to dine at B's house.

  2. A agrees to provide loan to B.

  3. A promises to sell his car to B at reasonable price.

  4. A and B agree to make agreement in future.


Correct Option: B
Explanation:

The domestic agreements are legally not binding. The contract, the meaning of which is not certain, is not valid. Even to agree for the future is not a contract.

Which of the following Sections is concerned with competency of the parties of contract?

  1. 10

  2. 11

  3. 13

  4. 56


Correct Option: B
Explanation:

According to Section 11, the persons who are capable to make contract are defined. Section 10 is concerned with essentials of valid contracts. Section 13 defines consensus ad idem and Section 56 is concerned with possibility of performance.

Who among the following is not competent to contract?

  1. Poor person

  2. Person of sound mind

  3. Person not disqualified by law

  4. An insolvent


Correct Option: D
Explanation:

An insolvent person is not competent to contract.

A contract which is valid when made, but subsequently becomes unenforceable is

  1. valid contract

  2. voidable contract

  3. void contract

  4. void ab initio


Correct Option: C
Explanation:

Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Any contract unlawful from its inception is void ab initio. 

Void agreements are also known as

  1. valid contract

  2. voidable contract

  3. void contract

  4. void ab initio


Correct Option: D
Explanation:

Any contract unlawful from its inception is void ab initio. Void contract are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc.

Agreement opposite to public policy is _______.

  1. unlawful contract

  2. voidable contract

  3. void contract

  4. void ab initio


Correct Option: A
Explanation:

Any contract opposite to public policy is unlawful contract. Void contracts are those which were otherwise valid but had become void due to certain event. A contract is voidable if it is caused by fraud, coercion etc.

Entering into a bus for the purpose of going somewhere is an example of

  1. express contract

  2. standing contract

  3. implied contract

  4. void contract


Correct Option: C
Explanation:

Some contracts arise from the conduct of parties such as the above example. Express contracts are stated by words written or oral. Standing contacts are applicable to ongoing transactions.

A bilateral contract is one where

  1. the performance of both the parties is executory.

  2. the performance of both the parties is executed.

  3. the performance of one of the parties is executory.

  4. the performance of one party is executed.


Correct Option: A
Explanation:

When the obligation pending from both parties is yet to be executed, it is a bilateral contract. (B) is an example of executed contract. (C) and (D) are unilateral contracts.

The person to whom an offer is made is called

  1. offeror

  2. promisor

  3. offeree

  4. none of these


Correct Option: C
Explanation:

The person to whom an offer is made is called offeree.

An offer to the public at large is

  1. General offer

  2. Specific offer

  3. Standing offer

  4. Cross offer


Correct Option: A
Explanation:

General offer can be accepted by anyone from the public at large. Specific offer is made to a specific person or to a group. Standing offer is applicable for a specific period of time. When two parties make identical offers at same time to each other, it is a cross offer.

Which of the following is not true?

  1. An acceptance can precede an offer.

  2. There are at least two parties in an offer.

  3. The offer may be positive or negative.

  4. Offer must be communicated.


Correct Option: A
Explanation:

An acceptance can't take place before an offer is made.

The case of Carllil V. Carbolic Smoke Ball Company is an illustration of

  1. General offer

  2. Specific offer

  3. Standing offer

  4. Cross offer


Correct Option: A
Explanation:

In this case, the company advertised its product as a preventive medicine against influenza. Thus, it was public or general offer, which can be accepted by anyone.

Which of the following is/are not example(s) of offer?

  1. A catalogue of price

  2. A menu of restaurant

  3. An advertisement of sale

  4. All of these


Correct Option: D
Explanation:

All of the above are examples are of invitation to offer which is different from offer.

Who among the following can accept the specific offer?

  1. Offeror

  2. Public

  3. Any third party

  4. Offeree


Correct Option: D
Explanation:

A specific offer can be accepted by the person or persons to whom it is offered. A general offer can be accepted by public or third party.

An offer can be accepted within

  1. specified time

  2. reasonable time

  3. both (1) and (2)

  4. any time


Correct Option: C
Explanation:

The offer must be accepted within the time specified or otherwise within reasonable time only.

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