Deck 3: Contract Law and Consideration: Understanding Free Consent and Unlawful Agreements

Question 1

As a general rule, an agreement made without consideration is;

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

Answer 1

Void

Question 2

A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A's consent was obtained by coercion. Here, the agreement is;

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

Answer 2

Voidable

Question 3

An agreement made with free consent to which the consideration is lawful but inadequate is;

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

Answer 3

Valid

Question 4

Which of the following persons are not competent to contract?

A)Minors
B)Persons of unsound mind
C)Persons disqualified by law
D)All of these

Question 5

For entering into a contract, a minor is a person who has not completed the age of;

A)16 years
B)18 years
C)20 years
D)21 years

Question 6

A contract with the minor, which is beneficial for him, is;

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

Question 7

Which of the following persons do not fall under the category of persons of unsound mind?

A)Idiot
B)Lunatics
C)Drunken
D)Alien

Question 8

Which of the following elements does not affect the free consent of the parties.

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

Question 9

When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;

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

Question 10

A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B's consent is obtained by

A)A undue influence
B)Fraud
C)Coercion
D)None of these

Question 11

When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of

A)Either party to the agreement
B)A party whose consent was so obtained
C)A party who obtained the consent
D)None of these

Question 12

When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;

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

Question 13

Which of the following acts does not fall under the categories of fraud?

A)Intentional false statement of facts
B)Active concealment of facts
C)Innocent false statements
D)Promise made without intention to perform

Question 14

Where the consent of a party is obtained by misrepresentation, the contract is;

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

Question 15

Which of the following statement is false?

A)A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a contract.
B)A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering the truth with ordinary means
C)In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract
D)A party who affirms the contract , can also change his option afterwards if he so decides

Question 16

Where the consent of both the parties is given by mistakes, the contract is;

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

Question 17

As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;

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

Question 18

A contract made by mistake about Indian Law, is;

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

Question 19

A contract made by mistake about some foreign law, is;

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

Question 20

A mistake as to law not in force in India has the same effect as;

A)Mistake of fact
B)Mistake of Indian Law
C)Fraud
D)Misrepresentation

Question 21

The consideration or object of agreement is considered unlawful, if is

A)Forbidden by law
B)Fraudulent
C)Immoral
D)All of these

Question 22

A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department. This agreement is

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

Question 23

A agrees to pay Rs.50000 to B if he kills C. the agreement is

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

Question 24

An agreement in restraint of marriage, ie, which prevents a person from marrying is

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

Question 25

An agreement in restraint of marriage is valid incase of the following persons

A)Minors
B)Educated
C)Married
D)None of these