MCQs on Indian Contract Act 1872 with answers

MCQs on Indian Contract Act 1872 with answers is been discussed here. The Indian Contract Act 1872 is a part of Legal aspects of Business (LAB). This Multiple Choice Questions can be useful for graduation & post graduation students of various courses like MBA, M. Com, BBA, B. Com etc.

We have given MCQs in different different sets for your convenience.

Set I

The below said is the Set I of MCQs on Indian Contract Act 1872:

1. when predefined rules are enforced or bind on people it is called as

a)Act     b) Law        c) Section        d) all of the above

Answer. b) Law

2. Contract Act deals under which branch of Law

a ) Commercial                b) International                             c) Cyber                   d) None of the above

Answer. a ) Commercial

3. Which of the following is not a branch of Law

a ) Commercial               b) International                   c) Mercantile                  d) Legal

Ans. d) Legal

4. A contract is a/an _________________ made between two or more parties which the Law will enforce.

a ) Offer                     b) Transaction                  c) Agreement                  d) none of the above

Answer. c) Agreement

5. All Contract is a/an ______________

a ) Offer                  b) Agreement                  c) Acceptance                  d) Transaction

Ans. b) Agreement

6. A/an _______________ is every Promise and every set of promises , forming consideration for each other

a ) Offer                  b) Agreement                  c) Acceptance                  d) Transaction

Ans. b) Agreement

7. Every agreement and promise enforceable by law is ______________

a)Offer                  b) Contract                  c) Acceptance                  d) Consideration

Answer. b) Contract

8. “A Contract is an agreement creating and defining obligations between the parties” the definition was defined by

a)Dr. Ambedkar                  b) Pollock                  c) Salmonds                  d) N.D.Kapoor

Ans. C) salmonds

9. A contract when both the parties have fulfilled their Obligations is called as _____________________ contract

a)Valid                  b) executed                  c) Void                  d) Unilateral

(Ans: b) executed  )

10. An offer made to the whole world is called as __________________________

a)General Offer                  b) Special Offer                  c) Standing offer                  d) Implied offer

(Ans: a)

Set II

Here is a Set No. II of Indian Indian Contract Act 1872 Multiple choice questions with answers.

11. ___________________ contract is made by spoken words

a)implied                  b) Express                  c) void                   d) special

(Ans: b)

12. Where a contract is been understood by from the conduct of parties it is __________________ contract

a)implied                  b) Express                  c) void                  d) special

(Ans: a)

13. The person who makes an offer is called ________________

a)seller                  b) offerer                  c) offeree                  d) Promisee

(Ans: b)

14. Contract = _____________________ + _________________________

a ) Agreement+ Offer                                    b ) Agreement + consideration

c ) Agreement + enforceable by law                  d ) None of the above

(Ans: c)

15. Agreement = ___________________ + _______________________

a ) Consideration + Offer                                     b ) Acceptance + consideration

c ) Offer + Acceptance                                    d ) None of the above

(Ans: c)

16. The party who initiates the offer is called as

a ) Offeror                  b) offeree                  c) Acceptor                  d) First Party
(Ans: a)

17. The person who accepts the offer is called as

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a ) Offeror                   b) acceptee                   c) offeree                   d) None of the above

(Ans: c)

18. The offer must be _____________

a ) Conditional                   b ) Temporary                  c) Definite                  d) all of the above

(Ans: c)

19. Acceptance must be absolute and _________________

a ) Conditional                  b) prior                  c) Unconditional                   d) all of the above

20. The acceptance must be communicated to the _______________ .

a ) Offeror                  b) acceptee                  c) offeree                   d) None of the above

(Ans: a)

21. The acceptance must be communicated by the _______________ .

a ) Offeror                  b) acceptee                   c) offeree                  d) None of the above

(Ans: c)

22. In business agreements people intend to enter in to ___________ relationship

a)Social                   b) Commerce                  c) Legal                   d) all of the above

(Ans: c)

23. A invited B for his sister marriage and B accepts to attend. This is an example of ___________ Agreement

a ) Family                  b) Social                   c) Legal                  d) None of the above

(Ans: b)
24. X invited Y for his marriage and Y accepts to attend. But Y did not go to the function . In this case X can

a ) Sue Y                   b) Cannot sue                  c) Claim damages                  d) Cancel the contract

(Ans: b)

25. The benefit move from one party to another in a contract is called as

a ) Income                  b) Consideration                   c) Transfer                   d) None of the Above

(Ans: b)

Set III

Set III of MCQs on Indian Contract Act 1872:

1. The Consideration can be

a Present                                                 b Past                                      c.  Future                                              d all of the above

Ans: d
2. The consideration must be ___________ and Lawful

a Money                              b Equal                                                     c conditional                                         d Real

Ans. d

3. A Contract without any consideration is

a Illegal                  b legal                                          c Void                                           d Valid

Ans. c

4. ______________ is not a part of Exemptions to contact without consideration is void

a Love & affection                        b Charity                     c Time barred debt                                 d Social agreements

Ans. d

5. A/an _____________ is not a capable person to enter into a Contract

a Agent                     b NRI                       c illiterate                                    d Minor

Ans. d

6. The persons who are not capable to enter into a Contract does not include

a Minor            b Agent                                 c Drunken                                  d Convict

Ans. b

7. The contract entered with a minor is ________________ contact

a Void                              b Valid                 c illegal                              d Family

SEE ALSO:  Meaning of Void Agreements

Ans. a

8. Free consent is the consent which is obtained Without

a Undue influence                       b Force               c fraud                       d all of the above

Ans. d

9. The acceptance of offer may be made

a by Words                 b by conduct                               c either a or b                 d neither a nor b

Ans. c

10. A specific offer is the one which is made

a by A to B                  b Father to his 4 sons                   c Teacher to his students              d all a,b & c

Ans. d

11. An offer to sell his car in internet is ______________________ offer

a Specific                     b. Implied                  c. Expressed                        d. Not an offer at all

Ans. c

12. The offer made to a group of persons is known as ____________ offer

a Specific                          b. Implied                      c. Standing                  d. Special

Ans. a

13. To make a valid general offer , it is must for the offeree to be known to the offeror at the time of making the offer.

a True                                 b Partly true                  c False                      d None of the above

Ans. c

14. To make a valid specific offer , it is must for the offeree to be known to the offeror at the time of making the offer.

a True                                    b Partly true                      c False                          d None of the above

Ans. a

15. The terms of offer must be intended to create legal relations

a True                           b Partly true                                     c False                   d None of the above

Ans, a

16. Which of the following is not a part of valid offer

a. Intention to create legal relations                            b. Unconditional terms

c. Certainty of the terms                                             d. None of the above

Ans. b

16. When a person invites the other party to make an offer, he is said to make.

a Offer                                  b Proposal                      c Invitation to offer                     d Acceptance

Ans. c

17. A dress displayed in a showroom with price tag is an example of

a Offer                                      b Proposal                            c Invitation to offer                     d Acceptance

Ans. c

18. X offers to sell his horse to Y for rs.300000 Y says that he would buy if X agrees to give the horse for 250000. This is an example of

a. Implied offer                     b. Express offer                 c. Specific offer                   d. Counter offer

Ans. d

19. The Specific offer can be accepted by

a. Any person                  b. Friend of the offeror                 c. Only the person to whom it is made             d. Friend of offeree

Ans. c

20. The general offer can be accepted by

a. Communication of acceptance                                    b. Complying with the conditions of offer

c. Mental acceptance                                                      d. Making a counter offer

Ans. b

Set IV

Set IV of Indian Contract Act 1872 MCQs:

21. The acceptance can precede an offer.

SEE ALSO:  MCQs on Negotiable Instruments Act with Answers

a True                b Partly true                c False                d None of the above

Ans. c

22. The object of the contract should be legal moral and should not be against

a Parties               b public Policy                 c Government                         d contract

Ans. b

23. An agreement which is not enforceable by Law is called ______________ agreement

a Valid            b Void            c Legal             d special

Ans. b

24. Agreement by incompetent parties is called as _________________ agreement

a Valid                    b Void                    c Legal                d special

Ans. b

25. Agreement in restrain of ____________________ is a void agreement

a. Trade                     b.Marriage                     c. Legal Proceedings                d.all of the above

Ans. d

26. One party agrees to pay money on the happening of some uncertain event in consideration of the other party’s promise to pay if the event does not happen such agreements is called as _______________ agreement

a. Valid                  b.Wager                          c. Waiver             d. Special

Ans. c

27. A threatens to kill B if B does not enters into contact with A. So B enters in the contract with A. Here the consent of B is obtained by_____________

a. Coercion                     b. Fraud                     c. Misrepresentation                     d. Undue influence.

Ans. a

28. The agreement entered without free consent is called as ___________ contract

a. Valid                      b.Void                  c. Voidable                          d. Wager

Ans. c

29. When a Boss compels his employee to enter into a contract and obtain his consent by using his authority it means the consent is obtained by

a. Coercion                  b. Fraud                  c. Misrepresentation                             d. Undue influence.

Ans. d

30. Offer to perform a contract is called as __________________

a. Attempted performance                      b. Caveat emptor                  c. Just in rem                  d. just in personam

Ans. a

31. Which is not essential for a valid tender

a. Conditional                           b. Proper place                     c. Proper time               d. Proper person

Ans. a

32. Attempted performance is also called as

a. Executed performance               b. Valid performance          c. Wager                   d.Tender

Ans. d

33. A agrees to marry B and B promises to bring back the life of dead mother of A, the agreement is

a. Void                                          b. Valid                c. Illegal               d. Voidable

Ans. a

34. If a new contract is substituted in place of an old contract it is called as

a. Alteration              b. Novation                c. Waiver                d. Rescission

Ans. b

35.  The original contract need not to be performed when there is a _________ of contact

A. Recission                 b. Novation               c. Alteration                d. All of the above

Ans. d

36. Which of the way of discharge of contract is not a part of discharge by Mutual agreement

a. Novation              b. Wiaver                   c. Wager                       d. Remission

Ans : c

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