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Test: The Indian Contract Act, 1872- 1


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Test: The Indian Contract Act, 1872- 1 for CA Foundation 2023 is part of Business Laws for CA Foundation preparation. The Test: The Indian Contract Act, 1872- 1 questions and answers have been prepared according to the CA Foundation exam syllabus.The Test: The Indian Contract Act, 1872- 1 MCQs are made for CA Foundation 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: The Indian Contract Act, 1872- 1 below.
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Test: The Indian Contract Act, 1872- 1 - Question 1

The law of contract in India is contained in

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 1

Indian Contract Act is describe that how to do contract with other perso and legal right,fraud,mistake and so many thing describe in this book in Indian Contrat Act social or domestic agreement is not considerd
It came into force on "1st september 1872"

therefore it is known as "Indian Contract Act 1872"

Test: The Indian Contract Act, 1872- 1 - Question 2

An agreement enforceable by law is a

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 2

Section 2 (h) of the Indian Contract Act, 1872 defines a contract as an agreement enforceable by law.

Test: The Indian Contract Act, 1872- 1 - Question 3

A void agreement is one which is

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 3

A void agreement is defined under section 2(g) of Indian Contract Act, 1872, as an agreement which cannot be enforceable by law, i.e. such agreements cannot be challenged in the court of law. Such an agreement lacks legal consequences, and so, it does not confer any rights to the parties concerned. A void agreement is void from the day, it is created and can never turn into the contract.

Test: The Indian Contract Act, 1872- 1 - 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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 4

(i) An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract;

(j) A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable

Test: The Indian Contract Act, 1872- 1 - Question 5

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 5

Offer should not contain a term the non-compliance of which would amount to acceptance: The offer should not impose on the offered an obligation to reply. While making an offer, the offer or cannot say that if the offer is not accepted before a certain date it will be presumed to have been accepted.

Test: The Indian Contract Act, 1872- 1 - Question 6

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 6

When a contract is entered into without the free consent of the party, it is considered a voidable contract. The definition of the act states that a voidable contract is enforceable by law at the option of one or more parties but not at option of the other parties.

Test: The Indian Contract Act, 1872- 1 - Question 7

Which of the following is false? An acceptance:

Test: The Indian Contract Act, 1872- 1 - Question 8

In case of illegal agreements, the collateral agreements are:

Test: The Indian Contract Act, 1872- 1 - Question 9

An offer may lapse by:

Test: The Indian Contract Act, 1872- 1 - Question 10

A proposal when accepted becomes a

Test: The Indian Contract Act, 1872- 1 - Question 11

An agreement which is enforceable by law at the option of other or others is: 

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 11

An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.

Test: The Indian Contract Act, 1872- 1 - Question 12

Which of the following statement is false? Consideration:

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 12

A promise that is unenforceable because of uncertainty or absence of commonality, where just one side will undoubtedly perform.  Consideration isn't official if the promise doesn't make an obligation or force a commitment, for example, with illusory promises. Illusory promises remember end provisions for agreements and yield and necessities contracts.

Test: The Indian Contract Act, 1872- 1 - Question 13

Which of the following statement is false?

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 13

 

Test: The Indian Contract Act, 1872- 1 - Question 14

Consideration must move at the desire of

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 14

Consideration is the doing or not doing of something which the promisor desires to be done or not done. Consideration must be at the desire of the promisor.

Test: The Indian Contract Act, 1872- 1 - Question 15

Which of the following statement is true?

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 15

Correct Answer :- b

Explanation : There can be a stranger to a consideration but not a stranger to a contract signifies that a consideration may move from Promisee or any other person.

Test: The Indian Contract Act, 1872- 1 - Question 16

Consideration may be

Test: The Indian Contract Act, 1872- 1 - Question 17

Consideration in simple term means:

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 17

consideration is a benefit which must be bargained for between the parties

Test: The Indian Contract Act, 1872- 1 - Question 18

What is essential component of an contract?

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 18

both are essential for contract if a contract is only agreement and it does not create legal obligation then it would never be a contract.

Test: The Indian Contract Act, 1872- 1 - Question 19

Ordinarily, a minor’s agreement is

Test: The Indian Contract Act, 1872- 1 - Question 20

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 20

A minor is liable to pay out of his property for 'necessariessupplied to him or to anyone whom he is legally bound to support.

Test: The Indian Contract Act, 1872- 1 - Question 21

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 21
  • minor can be admitted to the benefits of partnership with the consent of all the existing partners. It should be noted that consent of all the partners is required for a minor to be admitted in a partnership.
  • There must be a partnership in existence before a minor can be admitted to its benefits. Thus, a minor cannot form a new partnership but can be admitted in an existing partnership.
Test: The Indian Contract Act, 1872- 1 - Question 22

Which of the following statement is true?

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 22

 

Test: The Indian Contract Act, 1872- 1 - Question 23

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 23

 According to Section 10 of the Indian Contract Act, 1872, to constitute a valid contract, parties should enter into the contract with their free Consent. Consent is said to be free when it is not obtained by coercion, or undue influence or fraud or misrepresentation or mistake.

Test: The Indian Contract Act, 1872- 1 - Question 24

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 24

A voidable contract is where one party has the right to enforce or cancel the contract. If a party does not cancel the contract, then it remains as a valid contract and has to be performed like a valid contract. An agreement when found to be caused by coercion, fraud or misrepresentation becomes voidable at the option of the party whose consent was caused. On the other hand, if consent is caused by a bilateral mistake, the agreement becomes void, and there is ‘no consent’.

Test: The Indian Contract Act, 1872- 1 - Question 25

The threat to commit suicide amounts to

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 25

Threat to commit suicide is an act forbidden by Indian Penal Code under the provision of Indian Contract Act,1872.Hence it comes under coercion.

Test: The Indian Contract Act, 1872- 1 - Question 26

Moral pressure is involved in the case of

Test: The Indian Contract Act, 1872- 1 - Question 27

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

Test: The Indian Contract Act, 1872- 1 - Question 28

Which of the following statement is true?

Test: The Indian Contract Act, 1872- 1 - Question 29

In case of illegal agreements, the collateral agreements are:

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 29

Collateral agreements of an illegal agreement cannot be enforceable by law as they are void ab initio.

Test: The Indian Contract Act, 1872- 1 - Question 30

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 30

As per section 2(g) an agreement which is unenforceable is void. Thus in an agreement the object or consideration of which is unlawful makes it unenforceable and becomes void agreement.

Test: The Indian Contract Act, 1872- 1 - 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?

Test: The Indian Contract Act, 1872- 1 - Question 32

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

Test: The Indian Contract Act, 1872- 1 - Question 33

Which of the following persons can perform the contract?

Test: The Indian Contract Act, 1872- 1 - 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

Test: The Indian Contract Act, 1872- 1 - Question 35

A contract is discharged by novation which means the

Test: The Indian Contract Act, 1872- 1 - Question 36

A contract is discharged by rescisson which means the

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 36

Discharge of contract means termination of the contractual relationship between the parties. A contract is said to be discharged when it ceases to operate, i.e., when the rights and obligations created by it come to an end.

Test: The Indian Contract Act, 1872- 1 - Question 37

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 37

Anticipatory Breach of Contract: It occurs when prior to the due date of performance, the promisor absolutely refuses or disables himself from the performance of his obligations. In other words, it is a declaration by one party of his intention not to perform his obligations under the contract.

Test: The Indian Contract Act, 1872- 1 - Question 38

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

Detailed Solution for Test: The Indian Contract Act, 1872- 1 - Question 38

An anticipatory breach of contract is an action that shows one party's intention to fail to fulfill its contractual obligations to another party. Demonstrating the other party's intention to breach the contract gives the counterparty grounds for beginning legal action.

Test: The Indian Contract Act, 1872- 1 - Question 39

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

Test: The Indian Contract Act, 1872- 1 - 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

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