Deck 1: Contract Law in India: Exploring Agreements, Offers, and Consideration

Question 1

The Law of Contract in India is contained in

A)Indian Contract Act 1862
B)Indian Contract Act 1962
C)Indian Contract Act 1872
D)Indian Contract Act 1972

Answer 1

Indian Contract Act 1872

Question 2

An agreement enforceable by Law is a

A)Promise
B)Contract
C)Obligation
D)Lawful promise

Answer 2

Contract

Question 3

A void agreement is one which is

A)Valid but not enforceable
B)Enforceable at the portion of both parties
C)Enforceable at the portion of one party
D)Not enforceable in a Court of Law

Answer 3

Not enforceable in a Court of Law

Question 4

An agreement which is enforceable by law at the portion of one or more of the parties thereon but not at the option of the other or others is a :

A)Valid Contract
B)Void Contract
C)Voidable Contract
D)Illegal Contract

Question 5

Which is the following is false? An offer to be valid must;

A)Intend to create legal relations
B)Have certain and unambiguous terms
C)Contain a term the non?compliance of which would amount to acceptance
D)Be communicated to the person to whom it is made

Question 6

When the consent of a party is not free, the contract is:

A)Void
B)Voidable
C)Valid
D)Illegal

Question 7

Which is the following is false? An acceptance:

A)Must be communicated
B)Must be absolute and unconditional
C)Must accepted by a person having authority to accept
D)May be presumed from silence of offeree

Question 8

In case of illegal agreements the collateral agreements are

A)Valid Contract
B)Void Contract
C)Voidable Contract
D)None of these

Question 9

An offer may lapse by

A)Revocation
B)Counter Offer
C)Rejection of offer by offeree
D)All of these

Question 10

A proposal when accepted becomes a:

A)Promise
B)Contract
C)Offer
D)Acceptance

Question 11

Which of the following statement is true?

A)Consideration must result in a benefit to both parties
B)Past consideration is no consideration in India
C)Consideration must be adequate
D)Consideration must be something which a promisor is not already bound to do

Question 12

Which is the following is false? Consideration:

A)Must move at the desire of the promisor
B)May move from any person
C)Must be illusory
D)Must be some value

Question 13

Which of the following statement is false?

A)Generally a stranger to a contract can not sue
B)A verbal promise to pay a time barred debt is valid
C)Completed gifts need no consideration
D)No consideration is necessary to create an agency

Question 14

Consideration must move at the desire of:

A)Promisor
B)Promisee
C)Any other person
D)Any of these

Question 15

Which of the following statement is true?

A)There can be a stranger to a contract
B)There can be a stranger to a consideration
C)There can be a stranger to a contract & consideration
D)None of the above

Question 16

Consideration may be

A)Past
B)Present
C)Future
D)All of the above

Question 17

Consideration in sample term means

A)Anything in return
B)Something in return
C)Everything in return
D)Nothing in return

Question 18

Which of the following is not an exception to the rule - No consideration, No contract.

A)Compensation for involuntary services
B)Love & Affection
C)Contract of agencies
D)Gift

Question 19

Ordinarily, a minor's agreement is

A)Void ab initio
B)Voidable
C)Valid
D)Unlawful

Question 20

A minor's liability for 'necessaries' supplied to him

A)Arises after he attains majority age
B)Is against only minor's property
C)Does not arise at all
D)Arises if minor gives a promise for it

Question 21

Which of the following statement is not true about minor's position in a form?

A)He cannot become a partner in an existing firm
B)He can become a partner in an existing firm
C)He can be admitted only to the benefits of any existing firm
D)He can become partner on becoming a major

Question 22

Which of the following statement is true?

A)A contract with a minor is voidable at the option of the minor
B)An agreement with the minor can be ratified after he attains majority
C)A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind
D)A person who is usually of an sound mind cannot enter into contract even when

Question 23

Consent is not said to be free when it is caused by

A)Coercion
B)Undue influence
C)Fraud
D)All of these

Question 24

When the consent of a party is obtained by fraud, the contract is

A)Void
B)Voidable
C)Valid
D)Illegal

Question 25

The threat to commit suicide amounts to

A)Coercion
B)Undue influence
C)Misrepresentation
D)Fraud