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Indian Contract Act MCQ question and answer | Law MCQ question

Indian Contract Act MCQ question and answer with easy explanations in Law MCQ. Indian Contract Act MCQ section is suitable for aspirants preparing for competitive exams like NET, UPSC, JRF, SET,UGC NET other law exams etc. Page-5 section-2

Each section contains 100 MCQs on Indian Contract Act .
41
Arrange the sequence of the following concepts in which they appear in a contract, using the given below:
1. Communication of acceptance
2. Deceit
3. Invitation to Offer
4. Damages
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
42
Revocation of offer by letter or telegram can be complete:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
43
What is the minimum consideration required to create an agency?
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
44
Match the List I with List II and select the correct answer with the help of given below:
List-I List-II
a. Contingent Contract 1. Section 30, Contract Act
b. Wagering Contract 2. Section 25, Contract Act
c. Restraint from trade or business 3. Section 31, Contract Act
d. Agreement without consideration 4. Section 27, Contract Act
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
45
A finds B's purse and gives it to him. B promises to give A Rs. 50.
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
46
The judicial basis of quasi-contractual obligation can be explained through the principle of:
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
47
The branches Section 30 of the Indian Contract Act, 1872 declares:
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
48
Under the Indian Contract Act, an agreement by a heavily drunk person has the same consequence as that of:
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
49
Under the contract of guarantee, the liability of the surety
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
50
A' applied for allotment of 100 shares in 'B' company. A letter of allotment addressed to 'A' was posted in due time, but it never reached 'A'. The posting of letter of allotment:
Discuss
Answer & Solution
Answer: Option A
Solution:
Relevant Principle under Indian Contract Act

Section 4 of the Indian Contract Act states that the communication of acceptance is complete against the proposer when it is put in the course of transmission to him, so as to be out of the power of the acceptor.

Application to the Case

Here, 'A' applied for allotment of 100 shares. This application amounts to an offer by 'A'.

When 'B' company posts the letter of allotment, it amounts to acceptance of the offer made by 'A'.

As per the law, the contract is complete at the moment the letter of allotment is properly posted, even if it never actually reaches 'A'.

Why the Other Options are Incorrect

Option B is incorrect because non-receipt of the letter does not affect the completion of the contract once acceptance is posted.

Option C is incorrect because there is no ground here that makes the contract voidable; both parties have fulfilled their legal obligations of offer and acceptance.

Option D is incorrect because a contract is not void simply because the communication did not reach the proposer; the law protects acceptance once posted.

Conclusion

Thus, the posting of the letter of allotment completes the contract, irrespective of its non-receipt by 'A'.

Correct Answer: Option A