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Test: The Indian Contract Act, 1872- 1

40 Questions MCQ Test Mercantile Law for CA CPT | Test: The Indian Contract Act, 1872- 1

Description

This mock test of Test: The Indian Contract Act, 1872- 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 40 Multiple Choice Questions for CA Foundation Test: The Indian Contract Act, 1872- 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: The Indian Contract Act, 1872- 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: The Indian Contract Act, 1872- 1 exercise for a better result in the exam. You can find other Test: The Indian Contract Act, 1872- 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.

QUESTION: 1

The law of contract in India is contained in

A.
Indian Contract Act, 1862
B.
Indian Contract Act, 1962
C.
Indian Contract Act, 1872
D.
Indian Contract Act, 1972

Solution:

QUESTION: 2

An agreement enforceable by law is a

A.
Promise.
B.
Contract.
C.
Obligation.
D.
Lawful Promise.

Solution:

QUESTION: 3

A void agreement is one which is

A.
Valid but not enforceable
B.
Enforceable at the option of both the parties.
C.
Enforceable at the option of one party
D.
Not enforceable in a court of law.

Solution:

QUESTION: 4

An agreement which is enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others is a

A.
Valid Contract.
B.
Void Contract.
C.
Voidable Contract.
D.
Illegal Contract.

Solution:

QUESTION: 5

Which of the following is false? An offer to be valid must:

A.
Intend to create legal relations.
B.
Have certain & unambiguous terms.
C.
Contain a term the non-compliance of which would amount to acceptance.
D.
Be communicated to the person to whom it is made.

Solution:

QUESTION: 6

When the consent of a party is not free, the contract is

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

Solution:

QUESTION: 7

Which of the following is false? An acceptance:

A.
Must be communicated.
B.
Must be absolute and unconditional.
C.
Must be accepted by a person having authority to accept.
D.
May be presumed from silence of offeree.

Solution:

QUESTION: 8

In case of illegal agreements, the collateral agreements are:

A.
Valid.
B.
Void.
C.
Voidable.
D.
None of these.

Solution:

QUESTION: 9

An offer may lapse by:

A.
Revocation.
B.
Counter Offer.
C.
Rejection of Offer by Offeree.
D.
All of these.

Solution:

QUESTION: 10

A proposal when accepted becomes a

A.
Promise
B.
Contract
C.
Offer
D.
Acceptance

Solution:

QUESTION: 11

Which of the following statement is true?

A.
Consideration must result in a benefit to both parties.
B.
Past consideration is no consideration in India.
C.
Consideration must be adequate.
D.
Consideration must be something, which a promisor is not already bound to do.

Solution:

QUESTION: 12

Which of the following statement is false? Consideration:

A.
Must move at the desire of the promisor.
B.
May move from any person.
C.
Must be illusory.
D.
Must be of some value.

Solution:

QUESTION: 13

Which of the following statement is false?

A.
Generally a stranger to a contract cannot sue.
B.
A verbal promise to pay a time barred debt is valid.
C.
Completed gifts need no consideration.
D.
No consideration is necessary to create an agency.

Solution:

QUESTION: 14

Consideration must move at the desire of

A.
Promisor.
B.
Promisee.
C.
Any other person.
D.
Any of these.

Solution:

QUESTION: 15

Which of the following statement is true?

A.
There can be a stranger to a contract.
B.
There can be a stranger to a consideration.
C.
There can be a stranger to a contract & consideration.
D.
None of the above.

Solution:

QUESTION: 16

Consideration may be

A.
Past
B.
Present
C.
Future
D.
All of the above.

Solution:

QUESTION: 17

Consideration in simple term means:

A.
Anything in return.
B.
Something in return.
C.
Everything in return.
D.
Nothing in return.

Solution:

QUESTION: 18

What is essential component of an contract?

A.
An agreement
B.
Legal obligation
C.
Both of the above
D.
Depends upon company's resolution

Solution:

QUESTION: 19

Ordinarily, a minor’s agreement is

A.
Void ab initio
B.
Voidable.
C.
Valid.
D.
Unlawful.

Solution:

QUESTION: 20

A minor’s liability for ‘necessaries’ supplied to him;

A.
Arises after he attains majority age.
B.
Is against only minor’s property.
C.
Does not arise at all.
D.
Arises if minor gives a promise for it.

Solution:

QUESTION: 21

Which of the following statements is not true about minor’s position in a firm?

A.
He cannot become a partner in an existing firm.
B.
He can become a partner in an existing firm.
C.
He can be admitted only to the benefits of any existing firm.
D.
He can become partner on becoming a major.

Solution:

QUESTION: 22

Which of the following statement is true?

A.
A contract with a minor is voidable at the option of the minor.
B.
An agreement with a minor can be ratified after he attains majority.
C.
A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind.
D.
A person who is usually of a sound mind cannot enter into contract when he is of unsound mind.

Solution:

QUESTION: 23

Consent is not said to be free when it is caused by

A.
Coercion.
B.
Undue Influence.
C.
Fraud.
D.
All of these.

Solution:

QUESTION: 24

When the consent of a party is obtained by fraud, the contract is;

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

Solution:

QUESTION: 25

The threat to commit suicide amounts to

A.
Coercion.
B.
Undue Influence.
C.
Misrepresentation.
D.
Fraud.

Solution:

QUESTION: 26

Moral pressure is involved in the case of

A.
Coercion.
B.
Undue Influence.
C.
Misrepresentation.
D.
Fraud.

Solution:

QUESTION: 27

A wrong representation when made without any intention to deceive the other party amounts to

A.
Coercion.
B.
Undue Influence.
C.
Misrepresentation.
D.
Fraud.

Solution:

QUESTION: 28

Which of the following statement is true?

A.
A threat to commit suicide does not amount to coercion.
B.
Undue influence involves use of physical pressure.
C.
Ignorance of law is no excuse.
D.
Silence always amounts to fraud.

Solution:

QUESTION: 29

In case of illegal agreements, the collateral agreements are:

A.
Valid
B.
Void
C.
Voidable
D.
Any of these.

Solution:

QUESTION: 30

An agreement the object or consideration of which is unlawful, is

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

Solution:

QUESTION: 31

An agreement is void if it is opposed to public policy. Which of the following is not covered by heads of public policy?

A.
Trading with an enemy.
B.
Trafficking in public offices.
C.
Marriage brokerage contracts.
D.
Contracts to do impossible acts.

Solution:

QUESTION: 32

On the valid performance of the contractual obligations by the parties, the contract

A.
is discharged.
B.
becomes enforceable.
C.
becomes void.
D.
none of these.

Solution:

QUESTION: 33

Which of the following persons can perform the contract?

A.
Promisor alone.
B.
Legal representatives of promisor.
C.
Agent of the promisor.
D.
All of these.

Solution:

QUESTION: 34

A, B and C jointly promised to pay Rs. 60,000 to D. Before performance of the contract, C dies. Here, the contract

A.
becomes void on C’s death.
B.
should be performed by A and B along with C’s legal representatives.
C.
should be performed by A and B alone.
D.
should be renewed between A, B and D.

Solution:

QUESTION: 35

A contract is discharged by novation which means the

A.
cancellation of the existing contract.
B.
change in one or more terms of the contract.
C.
substitution of existing contract for a new one.
D.
none of these.

Solution:

QUESTION: 36

A contract is discharged by rescisson which means the

A.
change in one or more terms of the contract.
B.
acceptance of lesser performance.
C.
abandonment of rights by a party.
D.
cancellation of the existing contract.

Solution:

QUESTION: 37

When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as

A.
abandonment of contract.
B.
remission of contract.
C.
actual breach of contract.
D.
anticipatory breach of contract.

Solution:

QUESTION: 38

In case of anticipatory breach, the aggrieved party may treat the contract

A.
as discharged and bring an immediate action for damages.
B.
as operative and wait till the time for performance arrives.
C.
exercise option either (a) or (b).
D.
only option (a) is available.

Solution:

QUESTION: 39

In case of breach of contract, which of the following remedy is available to the aggrieved party?

A.
Suit for rescission.
B.
Suit for damages.
C.
Suit for specific performance.
D.
All of these.

Solution:

QUESTION: 40

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for

A.
damages
B.
injunction
C.
quantum meruit
D.
none of these.

Solution:

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Test: The Indian Contract Act, 1872- 1

40 Questions MCQ Test Mercantile Law for CA CPT | Test: The Indian Contract Act, 1872- 1

The law of contract in India is contained in

An agreement enforceable by law is a

A void agreement is one which is

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