0

Indian Contract Act - II

Description: CPT-Indian Contract Act-II
Number of Questions: 19
Created by:
Tags: CPT-Indian Contract Act-II The Indian Contract Act , 1872
Attempted 0/19 Correct 0 Score 0

Which of the following agreements with minor is/are not valid?

  1. Agreement for the benefits of minor

  2. Agreement for supply of necessities

  3. Agreement for enjoying luxuries

  4. All of these


Correct Option: C
Explanation:

As per Section 68 of Indian Contract Act, if necessities are supplied to minor, it is a valid agreement. Minor can also be beneficiary.

A, by letter, offers to sell his car to B for Rs. 2 lakh. The letter is written on 4th March, posted on 5th March and reaches B on 8th March. B accepts the offer and posts a recommendation letter on 10th March, which reaches A on 14th March. A can revoke his offer before

  1. 5th March

  2. 8th March

  3. 14th March

  4. 10th March


Correct Option: C
Explanation:

The offer can be rejected anytime before it is accepted. The acceptance is made on 10th March. B can revoke his acceptance anytime before the letter reaches A, i.e. 14th March.

An agreement with a minor comes under

  1. void contract

  2. voidable contract

  3. valid contract

  4. void agreement


Correct Option: D
Explanation:

Agreements with minor are void ab initio, i.e. void agreements. Void contracts are those which were otherwise valid, but had become void due to certain event. If a contract fulfills all conditions, it is a valid contract. A contract is voidable if it is caused by fraud, coercion, etc.

The agreement without free consent is _______.

  1. voidable contract

  2. void contract

  3. valid contract

  4. illegal agreement


Correct Option: A
Explanation:

When consent is not free, it is voidable at the option of aggrieved party. Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is a valid contract.

Consent is free when it is caused by

  1. misrepresentation

  2. coercion

  3. undue influence

  4. knowing all facts without pressure


Correct Option: D
Explanation:

Consent is free if it is given under any such pressure. Misrepresentation, coercion and undue influence do not result in free consent.

Coercion is defined under which Section of the Indian Contract Act?

  1. 15

  2. 16

  3. 17

  4. 18


Correct Option: A
Explanation:

Section 15 in The Indian Contract Act, 1872: ‘Coercion’ is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. 

Mistake of fact in a contract may be ______.

  1. unilateral only

  2. bilateral only

  3. both unilateral and bilateral

  4. None of these


Correct Option: C
Explanation:

Mistake made by both the parties of contract is bilateral, while mistake by one of the parties is unilateral mistake.

An agreement with a minor comes under

  1. void contract

  2. voidable contract

  3. valid contract

  4. void agreement


Correct Option: D
Explanation:

Agreements with minor are void ab initio, i.e. void agreements. Void contracts are those which were otherwise valid, but had become void due to certain event. If a contract fulfills all conditions, it is a valid contract. A contract is voidable if it is caused by fraud, coercion, etc.

Which of the following can make valid contract?

  1. Alien enemy

  2. Minors

  3. Professionals

  4. Person with permanently unsound mind


Correct Option: C
Explanation:

A professional is eligible to make a valid contract. Alien enemies and minors are disqualified by law from making contracts.

Consideration must be at the desire of

  1. promisor

  2. promisee

  3. stranger

  4. government


Correct Option: A
Explanation:

Consideration must be at the desire of the promisor only.

A minor can never become

  1. a shareholder

  2. an agent

  3. a principal

  4. both (1) and (3)


Correct Option: D
Explanation:

A minor can neither become a shareholder nor a principal However, he can be an agent.

Consent is free when it is caused by

  1. misrepresentation

  2. coercion

  3. undue influence

  4. knowing all facts without pressure


Correct Option: D
Explanation:

Consent is free if it is given under any such pressure. Misrepresentation, coercion and undue influence do not result in free consent.

The active concealment of a fact by a person having knowledge of facts amounts to

  1. misrepresentation

  2. coercion

  3. fraud

  4. undue influence


Correct Option: C
Explanation:

Any active concealment of fact is known as fraud while an innocent concealment amounts to misrepresentations.

Which of the following is not coercion?

  1. Threat to kill someone

  2. Threat to suicide

  3. Threat to sue

  4. Threat to commit forbidden act


Correct Option: C
Explanation:

It is not coercion.

The examples of fiduciary and real authority are

  1. master and servant

  2. solicitor and client

  3. doctor and patient

  4. all of these


Correct Option: D
Explanation:

All of these are examples of such relations.

Which of the following are criminal acts?

  1. Coercion and fraud

  2. Fraud and undue influence

  3. Undue influence and misrepresentation

  4. None of these


Correct Option: A
Explanation:

Coercion as well as fraud are criminal acts.

Mistakes of facts include

  1. mistake of law.

  2. mistake of subject matter.

  3. mistake of possibility of performance.

  4. mistake of identifying the subject matter.


Correct Option: D
Explanation:

null

Mistake of fact in a contract may be ______.

  1. unilateral only

  2. bilateral only

  3. both unilateral and bilateral

  4. None of these


Correct Option: C
Explanation:

Mistake made by both the parties of contract is bilateral, while mistake by one of the parties is unilateral mistake.

A promise made to other with no intention to perform comes under

  1. misrepresentation

  2. coercion

  3. undue influence

  4. fraud


Correct Option: D
Explanation:

It is a case of fraud.

- Hide questions