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The Indian Contract Act, 1872 Part 1
MCQs on The Indian Contract Act, 1872 Part 1
Q.1:- The person making the proposal is called the and the person accepting the proposal is called :
a).Proposor/ Proposee
b).Promisee/ Promisor
c).Promisor/Promisee
d).Proposee/ Proposor
- Correct Option: C
Q.2:- Every promise and every set of promises, forming the consideration for each other, is called as:
a).A voidable contract
b).A contract
c).A void contract
d).An agreement
- Correct Option: D
Q.3:- An agreement enforceable by law is:
a).A voidable contract
b).Void
c).A contract
d) A void contract
- Correct Option: C
Q.4:- An agreement which is enforceable by law at the option of other or others is:
a) A contract
b) A voidable contract
c) Void
d)A void contract
- Correct Option: B
Q.5:- The Indian Contract Act, 1872 extends to:
a)The State of Jammu and Kashmir.
b)The Union Territories of India
c)The whole of India except the State of Jammu and Kashmir.
d)The whole of India.
- Correct Option: C
Q.6:- The Act which deals with the matters relating to the contract is titled as:
a).The Contract Act, 1872
b).The Indian Contract Act, 1872
c).The Indian Contract Act, 1882
d)The Indian Contract Act, 1972
- Correct Option: B
Q.7:- An agreement not enforceable by law is said to be:
a)A contract
b)Void
c)A voidable contract
D)A void contract
- Correct Option: B
Q.8:- When the communication of a proposal is complete:
a)When it do not comes to the knowledge of the person to whom it is made.
b)When it comes to the knowledge of another person that some communication was made to the concerned person.
c) When it comes to the knowledge of the person to whom it is not made.
d)When it comes to the knowledge of the person to whom it is made.
- Correct Option: D
Q.9:- When an acceptance may be revoked:
a).An acceptance may be revoked at any time before the communication of the acceptance is complete as against the proposer, but not afterwards.
b).An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.
c)An acceptance may be revoked at any time before the communication of the acceptance is incomplete as against the acceptor, but not afterwards.
d).An acceptance may be revoked at any time after the communication of the acceptance is complete as against the acceptor, but not afterwards.
- Correct Option: B
Q.10:- In order to convert a proposal into a promise, the acceptance must:
a)Be absolute and qualified.
b)Be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted.
c)Be absolute and unqualified
d)Both B and C only.
- Correct Option: D
Q.11:- When a proposal may be revoked:
a)A proposal may be revoked at any time when the communication of its acceptance is complete as against the proposer, but not afterwards.
b)A proposal may be revoked at any time before the communication of its acceptance is incomplete as against the proposer, but not afterwards.
c)A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.
d).A proposal may be revoked at any time after the communication of its acceptance is complete as against the proposer, but not afterwards.
- Correct Option: C
Q.12:- A contract which ceases to be enforceable by law becomes void when it ceases to be:
a).Void
b)Voidable
c)Enforceable
d)Unenforceable
- Correct Option: A
Q.13:- The Indian Contract Act,1872 which was enacted on 25 April, 1872 came into force with effect from:
a)1st May, 1872
b)1st September, 1872
c)1st October, 1872
d)1st November, 1872
- Correct Option: B
Q.14:- A ‘proposal’ is defined as:
a)When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
b)When one person signifies to another his willingness to do, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
c)When one person signifies to another his willingness to do or to abstain from doing anything, he is said to make a proposal.
d)When one person signifies to many persons his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
- Correct Option: A
Q.15:- An agreement was entered into with the minor. This is agreement is:
a)Void
b)Voidable
c)Bad
d)Illegal
- Correct Option: A
Q.16:- Where a minor has entered into a contract for purchase of necessary items. In such cases:
a)The minor is not personally liable.
b)Minor’s estates are liable to make good.
c)Minor’s guardian is liable.
d)The minor is personally liable
- Correct Option: A
Q.17:- 6. Consent is defined as:
a)Two or more persons are said to consent when they agree.
b)Two or more persons are said to consent when they agree upon the same thing in the same sense.
c)Two or more persons are said to consent when they understand the same thing.
d)Two or more persons are said to consent when they agree upon the same thing.
- Correct Option: B
Q.18:- Consent is said to be free when it is not caused by:
a).Very much influence
b).Undue influence
c)Slightly influence
d)Influence
- Correct Option: B
Q.19:- A, being in debt to B, the money lender of his village, contracts a fresh loan on terms which appear to be unconscionable. This will be termed as:
a).Fraud
b).Coercion
c).Undue influence
d).Misrepresentation
- Correct Option: C
Q.20:- When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract :
a)Voidable at the option of the party whose consent was so cause.
b)Illegal
C)Depends upon the circumstances of the case.
d)Void
- Correct Option: A
Q.21:- If the consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence:
a)may be voidable
b)may not be not voidable
c)is voidable
d)is not voidable
- Correct Option: D
Q.22:- A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract:
- Void
- Voidable
- Bad
- Illegal
- Correct Option: B
Q.23:- Where both the parties to any agreement are under a mistake as to a matter of fact essential to the agreement,
a)The agreement is voidable.
b)The agreement can’t be enforceable at law.
c)The agreement is void.
d)The agreement is not void.
- Correct Option: C
Q.24:- When consent to an agreement is caused by undue influence, the agreement is a contract
a.Bad
b).Void
c).Illegal
d).Voidable at the option of the party whose consent was so cause
- Correct Option: D
Q.25:- What is a sound mind for the purposes of contracting:
a).A person is said to be of sound mind for the purposes of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.
b).A person is said to be of sound mind for the purposes of making a contract, if, at the time when he makes it, he is capable of understanding it.
c).A person is said to be of sound mind for the purposes of making a contract, if, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.
d).A person is said to be of sound mind for the purposes of making a contract, if, at any time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.
- Correct Option: A
Q.26:- Who are competent to contract:
a).Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.
b).Every person is competent to contract who is of the any age and who is of sound mind and is not disqualified from contracting by any law to which he is subject.
c).Every person is competent to contract who is of the age of majority according to the law to which he is subject.
d).Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind.
- Correct Option: A
Q.27:- What agreements are contracts:
a).All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
b).All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and may or may not be expressly declared to be void.
c).All agreements are contracts if they are made by the consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
d).All agreements are contracts if they are made by the free consent of parties competent to contract, for any object, and are not hereby expressly declared to be void.
- Correct Option: A
Q.28:- Every agreement by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights:
a).Is valid.
b).Is voidable
c).Is void.
d).Is illegal
- Correct Option: A
Q.29:- The agreements which are in restraint of trade are;
a).Valid
b).Illegal
c).Void
d).Voidable
- Correct Option: C
Q.30:- The consideration must be:
a).Adequate
b).Must be adequate
c).Need not be adequate
d).ubstantially adequate
- Correct Option: C
Q.31:- An agreement in restraint of the marriage of a major persons is:
a).Legal
b).Illegal
c).Void
d).Voidable
- Correct Option: C
Q.32:- If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful:
a).The agreement is void.
b).The agreement is voidable.
c).The agreement is enforceable.
d).The agreement is unenforceable.
- Correct Option: A
Q.33:- A contract is not voidable because it was caused by a mistake as to any law in force in India; but mistake as to a law not in force in India has the same effect as:
a).A mistake of case
b).A mistake of fact
c).A mistake of law
d). A mistake of understanding
- Correct Option: B
Q.34:- A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to:
a).A mistake of fact
b).A mistake of law
c).A mistake of case
d).A mistake of understanding
- Correct Option: A
Q.35:- The consideration or object of an agreement is lawful, unless:
a).The Court regards it as immoral, or opposed to public policy.
b).It is forbidden by law or Is of such a nature that, if permitted, it would defeat the provisions of any law.
c).Is fraudulent or involves or implies injury to the person or property of another.
d).All of the above
- Correct Option: D
Q.36:- An erroneous opinion as to the value of the things which forms the subject-matter of the agreement, is not to be deemed:
a).A mistake as to a matter of law
b).A mistake as to a matter of fact.
c).A mistake of circumstances
d).A mistake of nature of transactions
- Correct Option: B
Q.37:- A and B make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Limitation:
a).The contract illegal.
b).The contract is not voidable.
c).The contract is voidable.
d).The contract is void.
- Correct Option: B
Q.38:- The consideration may be:
a).Past
b).Present
c)Future
d).All the options are correct.
- Correct Option: D
Q.39:- A ‘contingent contract’ is a contract to do or not to do something, if some event collateral to such contract:
a).Happened or will not happen
b).Does or does not happen
c).May or may not happen
d).None of the above.
- Correct Option: B
Q.40:- If the event becomes impossible, such contracts becomes:
a).Illegal
b).Bad
c).Void
d).Voidable
- Correct Option: C
Q.41:- A wagering contract is ……………… whereas a contingent contract is…………………… :
a).Void/valid
b).Valid/void
c).Valid/voidable
d).Voidable/valid
- Correct Option: A
Q.42:- A agrees to pay B Rs 10000, if two straight lines should enclose a space. The agreement is…………………:
a).Void
b).Voidable
c).Valid
d).Illegal
- Correct Option: A
Q.43:- Contingent contracts to do nor not to do anything, if a specified uncertain event happened within a fixed time, become ………….., if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible:
a).Bad
b).Valid
c).Void
d).Voidable
- Correct Option: C
Q.44:- Where a promisor has made an offer of performance to promisee and the offer has been accepted, such offer must fulfil the condition:
a).If the offer is an offer to deliver anything to the promise, the promise must have a reasonable opportunity of seeing that the thing offered is the thing which the promisor is bound by his promise to deliver.
b).It must be unconditional
c).It must be made at a proper time and place
d).All of the above.
- Correct Option: D
Q.45:- Where two or more persons have made a joint promise, the promisee may in the absence of the express agreement to the contrary, compel to perform the whole contract:
a).Severally
b).Jointly
c).Jointly and severally
d).Jointly or severally as per the desire of the promise
- Correct Option: D
Q.46:- An agreement to do impossible act in itself is:
a).Bad
b).Void
c).Valid
d).Voidable
- Correct Option: B
Q.47:- Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promise is a …………… , but the second is a ……………. :
a).Void agreements/ contract
b).void contract/agreement
c).Contract/void agreement
d).Contract/voidable contract
- Correct Option: C
Q.48:- Where there are several amounts due to recover from the debtor then how a creditor can appropriate the money deposited by the debtor towards the time barred debts:
a).Where there are no other circumstances indicating to which debt the payment is to be applied.
b).Where the debtor has omitted to intimate.
c).The creditor can’t appropriate the amount so credited towards the time barred debts.
d).Option A and B both are correct.
- Correct Option: D
Q.49:- When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is:
a).To make compensation for it, to the person from whom he received it.
b).Bound to restore it.
c)Need not to do anything in this regard.
d).Options A and B are correct.
- Correct Option: D
Q.50:- In which circumstances the original contract need not be performed:
a).If the parties to a contract agree to alter it.
b).If the parties to a contract agree to substitute a new contract.
c).If the parties to a contract agree to rescind it.
d).All of the above.
- Correct Option: D
Q-51. The Indian Contract Act, 1872
a) Contains the basic principles of contract
b) Is not a complete code on contract
c) Does not cover all types of contracts
d) All the above
Correct Option: D
Q-52. An agreement & contract are one and the same thing.
a) True
b) False
c) Depends on the situation
d) None of the above
Correct Option: B
Q-53. The source of the law of contract is
a) Indian Contract Act, 1872
b) Judicial decisions
c) Customs or usage of trade
d) All the above
- Correct Option: D
Q-54. Law of contract
a) Is the whole law of obligations
b) Is the whole law of agreements
c) Deals with only such legal obligation which arise from agreement
d) Deals with social agreements
- Correct Option: C
Q-55. Social agreements are
a) Enforceable in the courts
b) Not enforceable in the courts
c) Subject to legal obligations
d) Made by social workers
- Correct Option: B
Q-56. All contracts
a) Are agreements
b) Are not agreements
c) Do not have legal obligations
d) Should be in writing
- Correct Option: A
Q-57. Mercantile Law
a) Is applicable to businessmen only
b) Is applicable to everybody
c) Is applicable to non-businessmen only
d) Is applicable to Indians only
- Correct Option: B
Q-58. A contract consists of
a) Mutual promises or agreement enforceable by law
b) Agreement not enforceable by law
c) Involuntary obligations
d) None of the above
- Correct Option: A
Q-59. An agreement to create legal liability
a) Is not enforceable by law
b) Is a void agreement
c) Is enforceable by law
d) None of the above
- Correct Option: C
Q-60. Obligation between parties that form contract
a) Are all kinds of obligations
b) Are legal obligations which spring from agreements
c) Are not voluntary in nature
d) None of the above
- Correct Option: B
Q-61. A contract means an agreement
a) Which is enforceable by law
b) Which is not enforceable by law
c) Which creates social obligations
d) Which is in writing
- Correct Option: A
Q-62. A contract or an obligation to perform a promise could arise in the following ways
a) By agreement and contract
b) By standard form of contracts
c) By promissory estoppel
d) None of the above
- Correct Option: A
Q-63. The Indian Contract law is based on
a) English law
b) Australian law
c) American law
d) French law
- Correct Option: A
Q-64. Section 2(b) defines, “When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a/an
a) Contract
b) Agreement
c) Promise
d) Offer
- Correct Option: C
Q-65. When the consent of a party to a contract has been obtained by undue influence, fraud or misrepresentation, the contract is
a) Legal
b) Voidable
c) Enforceable
d) None of these
- Correct Option: B
Q-66. All contracts
a) Should be in writing
b) Should be oral
c) Should be registered
d) None of the above
- Correct Option: D
Q-67. A foreigner
a) Is competent to enter into a contract if he fulfills the conditions of section 11
b) Is not competent to enter into a contract
c) Can enter into a contract with permission of Central Govt.
d) Can enter into a contract with the permission of court
- Correct Option: A
Q-68. Voidable contracts
a) Are enforceable by law if they are not avoided
b) Are not enforceable by law
c) Can be enforced if the court directs
d) Can be enforced with prior permission of Court / Government
- Correct Option: A
Q-69. The terms of the agreement
a) Must be certain
b) Must be capable of being made certain
c) Must be unambiguous and clear
d) All the above
- Correct Option: D
Q-70. A contract is a contract
a) From the time it is made
b) From the time its performance is due
c) At the time of its performance
d) None of the above
- Correct Option: A
Q-71. In an executed contract
a) Both parties have yet to fulfill their promises
b) Only one party has fulfilled the promise
c) Both parties have fulfilled their promises
d) Both b & c
- Correct Option: C
Q-72. All illegal agreements
a) Are not void
b) Are not void ab-initio
c) Are void
d) None of the above
- Correct Option: C
Q-73. A void agreement
a) Is illegal
b) Is not void ab-initio
c) May or may not be illegal
d) None of the above
- Correct Option: C
Q-74. All kinds of obligations between the parties form part of the contract. This statement is
a) True
b) False
c) Partially true
d) None of the above
- Correct Option: B
Q-75. A contract is made where:
a) A buys a book from a shop
b) X bids at a public auction
c) X agrees with Y to discover a treasure by magic
d) Z agrees to attend the birthday party of his friend
- Correct Option: A
Q-76. Right in rem implies:
a) A right available against the whole world
b) A right available against a particular individual
c) A right available against the Government
d) None of the above
- Correct Option: A
Q-77. A void contract
a) Is void from the very beginning
b) Is valid in the beginning but becomes void later on
c) Is enforceable at the option of one of the contracting parties only
d) None of the above
- Correct Option: B
Q-78. A void agreement is one
a) Which is forbidden by law
b) Enforceable at the option of one of the parties
c) Which is not enforceable by law
d) Enforceable by law
- Correct Option: C
Q-79. An agreement created by words spoken or written is called
a) Express agreement
b) Executed agreement
c) Implied agreement
d) Voidable agreement
- Correct Option: A
Q-80. An agreement consists of reciprocal promises between
a) Four parties
b) Six parties
c) Three parties
d) Two parties
- Correct Option: D
Q-81. Which of the following statements is false
a) Law of contract is the whole law of obligations
b) Certain contracts must be in writing
c) All contracts are agreements
d) All illegal agreements are void
- Correct Option: A
Q-82. Parol contracts are also known as
a) Simple Contract
b) Formal Contract
c) Void Contract
d) Conditional contract
- Correct Option: A
Q-83. Which of the following contracts are not recognized by the Indian Contract Act, 1872?
a) Recognizance
b) Court Judgment
c) Contract under seal
d) All the above
- Correct Option: D
Q-84. Which of the following statements is false in respect of formal contracts?
a) It should be in a particular form
b) It should be in writing and witnessed
c) It should have consideration
d) Consideration is not necessary
- Correct Option: C
Q-85. Under the English law which of the following are recognized as formal contracts
a) Recognizance
b) Contract under seal
c) Parol contracts
d) Both (a) and (b)
- Correct Option: D
Q-86. An offer made by words spoken or written is called:
a) Implied offer
b) Express offer
c) Formal agreement
d) Informal agreement
- Correct Option: B
Q-87. Partial acceptance of offer results in
a) Counter offer
b) Unqualified acceptance
c) Binding contract
d) None of the above
- Correct Option: A
Q-88. A tender is
a) An offer
b) Invitation to an offer
c) Acceptance of an offer
d) None of the above
- Correct Option: A
Q-89. Acceptance is to offer what a lighted match is to a train of gunpowder. This statement indicates
a) Once an offer is accepted it results in a binding contract
b) Communication of acceptance is necessary
c) Acceptance must be absolute & unqualified
d) All the above
- Correct Option: A
Q-90. An offer comes to an end by
a) Acceptance
b) Communication
c) Revocation
d) None of the above
- Correct Option: C
Q-91. Death or insanity of the proposer will revoke the proposal
(a) Automatically
(b) If the fact of the death or insanity is known to the offeree
(c) The knowledge of death or insanity is irrelevant
(d) Only if the family members of the proposer inform the offeree
- Correct Option: B
Q-92. An offer stands revoked
(a) If the fact of the death or insanity is known to the offeree
(b) By counter offer
(c) By rejection of offer
(d) All the above
- Correct Option: D
Q-93. Cross offers do not constitute a contract because
(a) There is no acceptance
(b) There is implied acceptance
(c) Crossing implies cancellation
(d) It amounts to counter offer
- Correct Option: A
Q-94. A proposal can be revoked
(a) Before posting of letter of acceptance by the acceptor
(b) Before receiving the letter of acceptance by the offeror
(c) After posting the letter of acceptance by the offeree
(d) Cannot be revoked
- Correct Option: A
Q-95. Communication of acceptance is not necessary
(a) By performance of conditions of the offer by offeree
(b) By acceptance of consideration by the offeree
(c) By acceptance of benefit/service by the offeree
(d) All the above
- Correct Option: D
Q-96. When a counter offer is given, the original offer
(a) Lapses
(b) Remains valid
(c) Is accepted and becomes a contract
(d) The original offer can also be accepted
- Correct Option: A
Q-97. A counter offer proposing different terms and conditions
(a) Amounts to acceptance of the offer
(b) Amounts to rejection of the offer
(c) Results in making of the provisional contract
(d) Both (b) & (c)
- Correct Option: B
Q-98. Which of the following statements is false?
(a) A response to invitation to treat leads to an agreement
(b) A valid offer must be communicated
(c) Supplying information is not an offer
(d) A request for tenders is an invitation to treat
- Correct Option: A
Q-99. When the promisee does not accept the offer of performance, the promisor is not responsible for non-performance
(a) True
(b) False
(c) Both (a) & (b)
(d) None of the above
- Correct Option: A
Q-100. For an acceptance to be valid, it must be
(a) Partial & qualified
(b) Absolute & unqualified
(c) Partial & unqualified
(d) Absolute & qualified
- Correct Option: B
Q-101. Acceptance takes place as against the proposer, when
(a) When the letter of acceptance is posted by the acceptor
(b) When the letter of acceptance is received by the proposer
(c) When the offeree writes the letter of acceptance but doesn’t post it
(d) All the above
- Correct Option: A
Q-102. An advertisement for sale goods by auction
(a) Amounts to an invitation to offer
(b) Amounts to an offer to hold such sale
(c) Amounts to an implied offer
(d) Amounts to a general offer
- Correct Option: A
Q-103. Communication of offer is complete when
(a) It comes to the knowledge of the offeree
(b) It is posted to the offeree
(c) When the offeror writes the letter but does not post it
(d) None of the above
- Correct Option: A
Q-104. Performance of conditions of a proposal is an acceptance of the proposal
(a) True
(b) False
(c) Depends on the facts of the case
(d) Partially true and partially false
- Correct Option: A
Q-105. An acceptance will be revoked at any time before the communication of acceptance is complete against the acceptor, but not afterwards
(a) True
(b) False
(c) Acceptance once given cannot be revoked
(d) Acceptance can be revoked at any time
- Correct Option: A
Q-106. An offer need not be made to an ascertained person
(a) True, it can be given to the world at large
(b) False, it has to be specific
(c) May be specific or general
(d) Either (a) or (c)
- Correct Option: D
Q-107. An agreement to agree in future upon terms to be settled afterwards between the parties is
(a) Valid
(b) Not valid
(c) Illegal
(d) Voidable
- Correct Option: B
Q-108. Acceptance once given cannot be revoked
(a) True
(b) False
(c) Incomplete information
(d) None of the above
- Correct Option: A
Q-109. A tender and a bid at an auction sale are
(a) Not offers
(b) Offers
(c) Acceptance of the offer
(d) Invitation to offer
- Correct Option: B
Q-110. A quotation is
(a) Not an offer
(b) Offer
(c) Acceptance of the offer
(d) Invitation to offer
- Correct Option: D
Q-111. A contract is formed when the acceptor
(a) Has done something to signify his intention
(b) Makes his mind to do so
(c) Reads the offer
(d) All the above
- Correct Option: A
Q-112. If the offeree does not accept the offer according to the mode prescribed, then
(a) The offeror may accept or reject such acceptance
(b) The offer lapses automatically
(c) It is a counter offer
(d) Offeree commits a breach of contract
- Correct Option: A
Q-113. Communication of offer is complete when
(a) The letter is posted to the offeree
(b) The letter is received by the offeree
(c) The offer is accepted by the person to whom it is made
(d) It comes to the knowledge of the offeror that the letter has been received by the offeree
- Correct Option: B
Q-114. When the mode of acceptance is prescribed in the proposal then
(a) It need not be accepted in that manner
(b) It should be accepted in that manner
(c) No matter how the acceptance is given
(d) Acceptance can be given in usual or reasonable manner
- Correct Option: B
Q-115. A proposal when accepted becomes a
(a) Promise
(b) Contract
(c) Agreement
(d) All the above
- Correct Option: A
Q-116. Acceptance takes place when and where the message is received
(a) True
(b) False
(c) Incomplete information
(d) None of the above
- Correct Option: A
Q-117. Mental acceptance is
(a) No acceptance at all
(b) Valid
(c) Binding promise
(d) None of the above
- Correct Option: A
Q-118. The term ‘proposal’ used in the Indian Contract Act is synonymous with the term
(a) Contract
(b) Offer
(c) Agreement
(d) None of these
- Correct Option: B
Q-119. The term ‘Proposal or offer’ has been defined in section
(a) Section 2(a)
(b) Section 2(b)
(c) Section 2(c)
(d) Section 2(d)
- Correct Option: A
Q-120. A bid at an auction sale is
(a) An implied offer to buy
(b) An express offer to buy
(c) An invitation to offer to buy
(d) An invitation to come to bid
- Correct Option: B
Q-121. A price list hanging outside the shop is meant for
(a) Attracting customers to buy the same in the mentioned price
(b) An advertisement of goods and meaningless from legal point of view
(c) An offer by the owner of the shop
(d) An invitation to customers to buy something
- Correct Option: B
Q-122. The communication of a proposal is complete when it comes to
(a) The knowledge of that person
(b) The object of the offer
(c) The intention with which the offer is made
(d) The facts underlying the offer
- Correct Option: A
Q-123. When the offers made by two persons to each other containing similar terms of bargain cross each other in post, they are known as
(a) Cross offers
(b) Implied offers
(c) Direct offers
(d) Expressed offers
- Correct Option: A
Q-124. General offers open for the world at large can be accepted by
(a) Any person in the world
(b) Any person within the country
(c) Any person who complies with the conditions of the offer
(d) Any person who reads the advertisement
- Correct Option: A
Q-125. When the proposal or acceptance is made otherwise than words, the promise is said to be
(a) Expressed
(b) Implied
(c) Accepted
(d) Rejected
- Correct Option: B
Q-126. In order to convert a proposal into a promise, the acceptance must
(a) Be clear
(b) Be absolute
(c) Be unqualified
(d) Be absolute and unqualified
- Correct Option: D
Q-127. The communication of an acceptance is complete as against the acceptor
(a) When it is posted by him
(b) When it is put in the course of transmission
(c) When it comes to the knowledge of the proposer
(d) None of these
- Correct Option: C
Q-128. If the communication is made by an unauthorized person, it does not result in a/an
(a) Contract
(b) Agreement
(c) Offer
(d) Consideration
- Correct Option: B
Q-129. Which section of the Indian Contract Act defines “performance of the conditions of a proposal is an acceptance of the proposal”?
(a) Section 6
(b) Section 7
(c) Section 8
(d) Section 9
- Correct Option: C
Q-130. Various modes of revocation of offer have been described in
(a) Section 4
(b) Section 5
(c) Section 6
(d) Section 9
- Correct Option: C
Q-131. Which section of the Law of Contract defines, “A proposal may be revoked at any time, before the communication of its acceptance is complete as against the proposer, but not afterwards.”
(a) Section 5
(b) Section 4
(c) Section 6
(d) Section 7
- Correct Option: A
Q-132. According to the Indian Contract Act, a promise is
(a) A communication of intention to do something
(b) A proposal which has been accepted
(c) A gentleman’s word to do something
(d) A statement on oath
- Correct Option: B
Q-133. When parties enter into a contract on the telephone, the contract becomes complete at the place where acceptance is heard by the proposer. This has been provided
(a) In no section of the Indian Contract Act but so decided by the Supreme Court
(b) In Section 2
(c) In Section 3
(d) In Section 4
- Correct Option: A
Q-134. An advertisement inviting tenders is
(a) An invitation for negotiations
(b) A proposal
(c) An invitation for proposal
(d) A promise
- Correct Option: C
Q-135. Goods displayed in a shop window with a price label will amount to
(a) Offer
(b) Invitation to offer
(c) Acceptance of offer
(d) None of these
- Correct Option: B
Q-136. A promisee is
(a) A person who makes a promise
(b) A person who monitors the statement of intentions of two parties
(c) A person to whom the promise is made
(d) None of these
- Correct Option: C
Q-137. The person making the proposal is called
(a) Promisor
(b) Promise
(c) Participator
(d) None of these
- Correct Option: A
Q-138. A mere passing utterance will
(a) Amount to a proposal
(b) Not amount to a proposal
(c) Amount to a promise
(d) Amount to offer
- Correct Option: B
Q-139. Which of the following is an invitation for offer?
(a) A tender to supply goods at a certain time
(b) A request for a loan
(c) Bids in an auction sale
(d) A catalogue of goods for sale
- Correct Option: D
Q-140. Which of the following is an offer?
(a) The mere quotation of terms by a trader
(b) The quotation of the lowest price in answer to an enquiry
(c) Advertisement for sale or auction of goods
(d) Bids in an auction sale
- Correct Option: D
Q-141. Acceptance in ignorance of the offer is
(a) Valid
(b) Invalid
(c) Void
(d) Voidable
- Correct Option: B
Q-142. An offer or its acceptance or both may be made
(a) By words
(b) By conduct
(c) Either by words or by conduct
(d) None of these
- Correct Option: C
Q-143. When a proposal and its acceptance are made by words, they are known as
(a) Expressed
(b) Implied
(c) Accepted
(d) Admitted
- Correct Option: A
Q-144. In cases where a proposal and its acceptance are not made by words and are inferred from the conduct of the parties, they are known as
(a) Implied offers
(b) Expressed offers
(c) Specific offers
(d) General offers
- Correct Option: A
Q-145. Express offers and acceptances may be proved by the agreement between the parties but implied offers can be proved only by
(a) The words
(b) The conduct
(c) Circumstantial evidence
(d) Both (b) & (c)
- Correct Option: D
Q-146. An offer which is allowed to remain an offer for acceptance over a period of time is known as a
(a) Standing offer
(b) Specific offer
(c) Express offer
(d) Implied offer
- Correct Option: A
Q-147. A voidable contract is one
(a) Which is lawful
(b) Which is invalid
(c) Which is valid so long it is not avoided by the party entitled to do so
(d) None of these
- Correct Option: C
Q-148. A contract is said to be executed when it has been performed wholly on
(a) One side
(b) Two sides
(c) More than two sides
(d) None of these
- Correct Option: B
Q-149. When the contract is perfectly valid in its substance but which cannot be enforced because of certain technical defects, this is called a
(a) Unilateral contract
(b) Bilateral contract
(c) Unenforceable contract
(d) Void contract
- Correct Option: C
Q-150. The difference between an advertisement for sale and a proposal is
(a) No difference at all
(b) That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not
(c) Every case will be viewed according to the circumstances
(d) None of these
- Correct Option: B