Indian Contract Act
Agency – MCQs with Answers 1. What is the primary role of an agent?a) To act on behalf of the principalb) To make independent decisionsc) To act for themselvesd) To supervise the principalAnswer: a) To act on behalf of the principal 2. Which of the following is NOT a type of agency?a) Agency by agreementb) […]
Bailment and Pledge – MCQs with Answers Which section of the Indian Contract Act defines Bailment?a) Section 124b) Section 148c) Section 172d) Section 126 Answer: b) Section 148 In bailment, the person delivering the goods is called the:a) Bailorb) Baileec) Lessord) Pledger Answer: a) Bailor The person to whom goods are delivered in a bailment […]
Contract of Indemnity and Guarantee 1. What is a contract of indemnity? a) A contract to compensate for loss caused to a third partyb) A contract to compensate for loss caused to the promiseec) A contract of guaranteed) A contract between two companiesAnswer: b) A contract to compensate for loss caused to the promisee 2. […]
Breach of Contract and Its Remedies – MCQs Q1. What is a breach of contract?A. Violation of criminal lawB. Violation of a promise under a contractC. Making a new contractD. Performing the contract early Answer: B. Violation of a promise under a contract Q2. Which of the following is a remedy for breach of contract?A. ImprisonmentB. […]
Contingent & Quasi Contracts – CA Foundation Business Law Study Material Question 1.Define a contingent contract and explain its essentials.Answer:“A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen” – [Section 31]. Contracts of insurance, indemnity and guarantee are examples […]
Performance of a Contract – CA Foundation Business Law Study Material Question 1.What is meant by tender of performance? What are the essentials of valid tender of performance? What is the effect of refusal by the promisee to accept a valid tender of performance in respect of goods and money?Answer:Attempted Performance or Tender / When […]
Consideration – CA Foundation Business Law Question 1.Define consideration. What are the legal rules/essentials regarding consideration? (C.A. Foundation MTP May 2019)Answer:Section 2(d) of the Contract Act define consideration as follows:(a) “When, at the desire of the promisor,(b) the promisee or any other person,(c) has done or abstained from doing, or does or abstains from doing, […]