Indian Contract Act MCQ question and answer

21

Which statement is incorrect?

A) A proposal is revoked by communication of notice of revocation B) A proposal is revoked by the lapse of time prescribed in the proposal C) A proposal is revoked if the acceptor does not act on the proposal D) A proposal is revoked by the death of the proposer

Discuss

Answer & Solution

Answer: Option C

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22

Under Indian Contract Act, 1872, A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is

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

Discuss

Answer & Solution

Answer: Option C

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23

Match List-I with List-II and select the correct answer using the given below the lists:

List-I	Lis-II
a. Counter-Proposal	1. A. K. A. S. Jamal v. Maola Dawood
b. Damages for breach	2. Hindustan Co-op. Insurance Societies v. Shyam Sunder
c. Acceptance by conduct	3. Hyde v. Wrench
d. Commercial Hardship	4. Ganga Saran v. Ram Charan Ram Gopal

A) a-2, b-1, c-4, d-3 B) a-3, b-4, c-2, d-1 C) a-1, b-3, c-4, d-2 D) a-3, b-1, c-2, d-4

Discuss

Answer & Solution

Answer: Option D

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24

Read Assertion (A) and Reason (R) and answer using the given below:
Assertion (A): A contract is a property in the nature of a promise supported by some consideration upon which either the remedy of specific performance or that of damages is available.
Reason (R): Above principle is laid down in Sunrise Associates v. Govt. of NCT of Delhi?

A) Both (A) and (R) are correct B) Both (A) and (R) are incorrect C) (A) is correct, but (R) is incorrect D) (R) is correct, but (A) is incorrect

Discuss

Answer & Solution

Answer: Option B

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25

Under Indian Contract Act, which of the following contracts is not a valid contract?

A) By a written registered document A promises to give Rs. 5000 to B for natural love and affection B) By an oral agreement B agrees to pay time barred debt of A C) A went on a pilgrimage, B paid his electricity bills A agrees to pay back the amount paid by B to him D) A supports B's infant son, B promises to pay A's expenses in so doing

Discuss

Answer & Solution

Answer: Option B

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26

The liability of bailee, as regards the goods is equivalent to that of

A) Of a common carrier B) An innkeeper C) Both of common carrier and innkeeper D) Neither of common carrier nor innkeeper

Discuss

Answer & Solution

Answer: Option A

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27

Section 74 applies to

A) Cases where the aggrieved party is seeking to recover a fixed amount on breach of contract B) Cases where an amount received under the contract is sought to be forfeited C) Both A and B D) Cases where in consequence of breach no legal injury at all has resulted

Discuss

Answer & Solution

Answer: Option A

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28

Which of the following deals with agreements by way of wager, void in the Indian Contract Act, 1872?

A) Section 22 B) Section 30 C) Section 19 D) Section 20

Discuss

Answer & Solution

Answer: Option B

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29

A sells his property worth Rs. one crore to B for Rupees one lac. Is the contract enforceable?

A) Not enforceable B) Not enforceable because the consideration is illusory C) Contract is not enforceable because A might be unduly influenced D) Contract is enforceable

Discuss

Answer & Solution

Answer: Option D

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30

Inadequacy of consideration does not make the contract

A) Void B) Voidable C) Unenforceable D) Neither void nor voidable

Discuss

Answer & Solution

Answer: Option D

Solution:

Under the Indian Contract Act, 1872, consideration is one of the essential elements of a valid contract. However, Section 25 of the Act clarifies that inadequacy of consideration alone does not render a contract void or voidable.

Consideration must be something of value in the eyes of law, but the law does not require that it be adequate, only that it be lawful.

Exception arises only if the consideration is so inadequate that it suggests coercion, fraud, or undue influence — in which case the contract may become voidable at the option of the aggrieved party.

Hence, inadequacy of consideration alone does not affect the validity of a contract, making it neither void nor voidable.

Indian Contract Act MCQ question and answer | Law MCQ question