Indian Contract Act MCQ question and answer

51

A contingent contract to do or not to do anything on the happening of an uncertain future event under section 32

A) Is never enforceable B) Becomes enforceable only on the happening of that event C) Enforceable since the time of making it D) Becomes enforceable in the immediate possibility of happening of that event

Discuss

Answer & Solution

Answer: Option B

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52

When the consent to an agreement is caused by misrepresentation or by silence, fraudulent within the meaning of Section 17 and the party whose consent was so caused had the means of discovering the truth with ordinary diligence, then

A) Such a contract is unenforceable being voidable B) Such a contract is unenforceable being void C) Such a contract is valid and enforceable D) None of these

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Answer & Solution

Answer: Option C

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53

In which one of the following conditions, can an agent sub-delegate his authority to another person?

A) When it benefits the Principal B) When it suits the agent C) When the agent is incapacitated due to illness D) When commercial practice involves such delegation

Discuss

Answer & Solution

Answer: Option D

Solution:

As per the Indian Contract Act, 1872, an agent is generally not allowed to delegate his authority to another person unless certain exceptions apply.

Sub-delegation is permissible in the following cases:

1. When commercial practice involves such delegation: If it is a common trade custom or practice in a particular business, an agent can delegate authority. (Option D)

2. When the principal expressly allows delegation: If the principal has given permission, the agent can appoint a sub-agent.

3. When the nature of work requires delegation: If the duties assigned are such that they require another person’s involvement, delegation is allowed.

4. When unforeseen circumstances arise: In emergencies where the agent cannot perform duties, sub-delegation may be justified.

Options A, B, and C do not justify sub-delegation as per legal principles. Therefore, Option D is the correct answer.

54

A local development authority announced a housing scheme and accepted applications under it, subsequently finding that the scheme was in violation of the Master Plan cancelled it.

A) It is free to do so without any shackles of promissory estoppel B) Itis not free to do so due to promissory estoppel C) It is free to do so without any shackles of promissory estoppel as there cannot be any estoppel against the Government in the exercise of its sovereign, legislative and executive functions D) None of the above

Discuss

Answer & Solution

Answer: Option C

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55

In which of the following cases a contract may be specifically performed?

A) When the act agreed to be done is in the performance wholly or partly of a trust B) Where a party to the contract has obtained substituted performance of the contract C) A contract the performance of which involves performance of a continuous duty which cannot be supervised D) A contract dependent on personal qualifications of the parties

Discuss

Answer & Solution

Answer: Option A

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56

"Contract of indemnity" is defined in which section of Indian Contract Act

A) Section 124 B) Section 125 C) Section 126 D) Section 127

Discuss

Answer & Solution

Answer: Option A

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57

A who is a minor takes loan from B. On attaining majority. A executes a bond in favour of B for the loan taken during the minority. Is A liable?

A) A is liable as he executed the bond on attaining majority B) A is liable on the basis of doctrine of estoppels C) A is liable as he has ratified the agreement D) A is not liable as he cannot ratify the agreement on attaining majority

Discuss

Answer & Solution

Answer: Option D

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58

In case of acceptance by post, at what point the acceptance is complete as against the proposer?

A) When the letter of acceptance is put in the course of transmission so as to be out of power of the acceptor B) When the letter of acceptance has been written C) When the letter of acceptance has been received D) When the letter of acceptance has been read by the proposer

Discuss

Answer & Solution

Answer: Option A

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59

A' a tradesman, leaves goods at B's house by mistake. 'B' treats the goods as his own. Which one of the following remedies is available to 'A'?

A) A' is to forgo his claim over goods B) B' is bound to pay to 'A' for goods C) B' is entitled to hire charges for the house D) 'A' is entitled to punitive damages

Discuss

Answer & Solution

Answer: Option B

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60

X owes Rs. 10,000 to Y under a contract. It is agreed between X, Y & Z that Y shall henceforth accept Z as his debtor instead of X for the same amount. Old debt of X is discharged and a new debt from Z to Y is contracted. This is:

A) Alteration of contract B) Rescission of contract C) Novation of contract D) Change in contract

Discuss

Answer & Solution

Answer: Option C

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Indian Contract Act MCQ question and answer | Law MCQ question