Question 1

Agreement is defined by the section ............... of the Indian Contract Act, 1872.

Accepted Answer

A)  Section 2(c) 
B)  Section 2(e) 
C)  Section 2(g) 
D)  Section 2(i)  B

Question 2

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

Accepted Answer

A)  Void contract
B)  Illegal agreement
C)  Unilateral contract
D)  Bilateral contract C

Question 3

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

Accepted Answer

A)  express contract.
B)  implied contract.
C)  tacit contract.
D)  unlawful contract. B

Question 4

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

Accepted Answer

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.

Question 5

The Indian Contract Act, applies to the:

Accepted Answer

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.

Question 6

A contract creates

Accepted Answer

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.

Question 7

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

Accepted Answer

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

Question 8

……………… is made by words written.

Accepted Answer

A)  Express contract
B)  Implied contract
C)  Tacit contract
D)  Unlawful contract

Question 9

The Law of Contract is nothing but ...............

Accepted Answer

A)  A Child of Commercial dealing
B)  A Child of Religion
C)  A Child of day to day Politics
D)  A Child of Economics.

Question 10

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

Accepted Answer

A)  Section 2(e) 
B)  Section 2(f) 
C)  Section 2(h) 
D)  Section 2(i)

Question 11

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

Accepted Answer

A)  valid contract.
B)  illegal agreement.
C)  voidable contract.
D)  unenforceable contract.

Question 12

"A Contract is an agreement creating and defining obligations between the parties" the definition was put forwarded by

Accepted Answer

A)  Dr. Ambedkar
B)  Pollock
C)  Salmonds
D)  N.D.Kapoor

Question 13

Contractual rights and duties are created by ...............

Accepted Answer

A)  State
B)  Statute
C)  Parties
D)  Custom or Usage.

Question 14

All Contract is a/an ……………..

Accepted Answer

A)  Offer
B)  Agreement
C)  Acceptance
D)  Tr

Question 15

………………. is forbidden by law.

Accepted Answer

A)  Valid contract
B)  Illegal agreement
C)  Voidable contract
D)  Unenforceable contract

Question 16

Which of the following relationship raise presumption of positive influence?

Accepted Answer

A)  Parent and Child
B)  Religious/ Spiritual Guru and disciple
C)  Guardian and Ward
D)  All of the above

Question 17

Agreement the meaning of which is uncertain is

Accepted Answer

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

Question 18

Which of the following legal statement is incorrect?

Accepted Answer

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) ]

Question 19

An agreement consists of reciprocal promises between at least

Accepted Answer

A)  four parties.
B)  six parties.
C)  three parties.
D)  two parties.

Question 20

Valid contracts

Accepted Answer

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

Exam 1: The Indian Contract Act and Contracts