Indian Contract Act MCQ question and answer

21

The effect of novation, rescission and alteration of contract is provided under-

A) Section 59 of the Indian Contract Act, 1872 B) Section 24 of the Specific Relief Act, 1963 C) Section 62 of the Indian Contract Act, 1872 D) Section 73 of the Indian Contract Act, 1872

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Answer & Solution

Answer: Option C

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22

Whether a contract in which time for performance of an obligation is not specified is a valid contract?

A) Contract will be void as there is no consensus ad idem as to the time for performance of the obligation vide Section 10 of the Indian Contract Act B) Even if time is not fixed, law will presume that the obligation has to be performed in a reasonable time as provided by Section 46 of the Indian Contract Act C) Even if no time period is provided by the contract for performance of an obligation, the contract is valid if it was recorded into a registered document D) Even if no time for performance is provided, it is a valid contract provided that the contract is a non-commercial contract only

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Answer & Solution

Answer: Option B

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23

An executory consideration is:

A) Past consideration B) Mutual exchange of promises, one being a consideration for other C) Present consideration D) Reciprocal promise

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Answer & Solution

Answer: Option B

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24

X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. 'Z' in law is entitled to recover:

A) The entire outstanding from 'Y' B) Z' having unilaterally released 'X' from the promise to repay has forfeited his right to recovery the loan amount from 'Y' also C) Z' having unilaterally released 'X' is entitled to recover only 50% of the outstanding from 'Y' D) Unilateral release by 'Z' of 'X' from liability is void and 'Z' can maintain a suit against both 'X' and 'Y'

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Answer & Solution

Answer: Option A

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25

Which of the following is not true?

A) Quasi contracts create obligations on non-contracting parties B) Quasi contracts remedy instances of unjust enrichment C) Quasi contracts create legal substitutes of a contract D) Quasi contracts are only related to minors

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Answer & Solution

Answer: Option D

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26

Which of the following is correct under the Indian Contract Act, 1872?

A) An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards B) All agreements are contracts but all contracts are not agreements C) A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of sound mind D) The communication of a revocation is complete, as against the person to whom it is made, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it

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Answer & Solution

Answer: Option A

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27

In case of joint promise, generally the performance must be by:

A) All the promisors jointly B) Anyone of them individually C) Individual promisor with the consent of the promisee D) None of the above

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Answer & Solution

Answer: Option A

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28

Under Section 20 of the Indian Contract Act, 1872 in case both the parties are under mistake as to matter of fact, the contract:

A) Is valid B) Is invalid C) Is void D) None of these

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Answer & Solution

Answer: Option C

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29

X' on 1^st July, 2018 agrees to sell his house to 'Y' for a price of Rs. 1 crore, if the entire price is paid on or before 31^st July, 2018 and for the price of Rs. 1,25,00,000/- after 31^st July, 2018 but before 30^th September, 2018. It was further agreed that if the entire price is not paid by 30^th September, 2018, 'Y' shall not be entitled to purchase the house and the earnest money paid by 'Y' to 'X' shall stand forfeited. Such an agreement:

A) Is void for uncertainty B) Is void because the meaning of it is not certain on account of being by way of wager C) Is enforceable in law D) None of the above

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Answer & Solution

Answer: Option C

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30

Which of the following statement is correct?

A) None of these B) Stranger to consideration has no right C) Stranger to consideration can enforce a promise D) Stranger to contract can enforce a promise

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Answer & Solution

Answer: Option C

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Indian Contract Act MCQ question and answer | Law MCQ question