Indian Contract Act MCQ question and answer

21

A promised to pay his son B a sum of Rs 1 lakh if B passed CA exams in the first attempt. B passed the exam in the first attempt, but A failed to pay the amount as promised. B files a sit for recovery of the amount. State whether B can recover the amount under the Indian Contract Act, 1972.

A) B can sue A B) B has to pay Rs 1 Lakh to A C) B has no remedy against A D) B has to write the exam again, to claim the reward

Discuss

Answer & Solution

Answer: Option C

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22

Authority of an agent

A) Has to be expressed B) Has to be implied C) Can be expressed or implied D) Either A or B or C

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Answer & Solution

Answer: Option C

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23

In relation to devolution of joint liabilities, as a general rule the Indian Contract Act incorporates the principle of;

A) Survivorship B) Succession C) Both A and B D) None of the above

Discuss

Answer & Solution

Answer: Option C

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24

Read Assertion (A) and Reason (R) and give the correct answer by using the given below:
Assertion (A): A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, But not afterwards.
Reason (R): Section 5 of the Indian contract Act 1872, deals with the revocation of proposals and acceptances.

A) Both (A) and (R) are correct, but (R) is not related to (A) B) (A) is correct, but (R) is wrong C) (A) is wrong, but (R) is correct D) Both (A) and (R) are correct, and (R) is the correct explanation of (A)

Discuss

Answer & Solution

Answer: Option D

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25

A proposal is not revoked by

A) Lapse of time prescribed in the offer for its acceptance B) Lapse of reasonable time, without communication of acceptance, if no time is prescribed in the offer for its acceptance C) Death of the offerer even if the acceptor in ignorance of this fact sends communication of acceptance D) Counter offer

Discuss

Answer & Solution

Answer: Option C

Solution:

A proposal can be revoked in several ways under the Indian Contract Act, 1872. However, the death of the offerer does not automatically revoke the offer if the acceptor is unaware of it and has already sent the communication of acceptance. Therefore, the offer remains valid in such a case.

Lapse of prescribed time: If a specific time is mentioned for acceptance, the offer is revoked once that time expires. (Option A)

Lapse of reasonable time: If no time is prescribed, and a reasonable period passes without acceptance, the offer stands revoked. (Option B)

Counteroffer: A counteroffer results in the original offer being revoked and replaced by a new offer. (Option D)

Since death of the offerer does not revoke the offer if the acceptor is unaware and has accepted it, Option C is the correct answer.

26

All illegal contracts are void but all void contracts are not:

A) Legal B) Illegal C) Enforceable D) Voidable

Discuss

Answer & Solution

Answer: Option B

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27

The words not defined in the Specific Relief Act shall be understood according to

A) The Indian Contract Act B) The Indian Succession Act C) Transfer of Property Act D) None of the above

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Answer & Solution

Answer: Option A

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28

When a contract has been broken and a sum is named in the contract as the amount to be paid in case of breach, the party complaining of the breach is entitled to

A) That amount without any reference to the amount of damages he suffered B) The actual amount of damages not exceeding the sum stated C) The actual amount of damages ever if exceeds the sum stated D) Reasonable compensation not exceeding the sum stated

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Answer & Solution

Answer: Option D

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29

In Carlill v. Carbolic Smoke Ball Co., (1892) 2 QB 484, the court ruled-

A) That an offer made to public at large is a nudum pactum B) That a general offer is no offer C) That an offer can be made only to a particular person D) An offer need not be made to an ascertained person

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Answer & Solution

Answer: Option D

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30

A contract without consideration under section 25 is

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

Discuss

Answer & Solution

Answer: Option C

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Indian Contract Act MCQ question and answer | Law MCQ question