UGC NET - Indian Contract Act, 1872: valid contract, capacity, consent, discharge, breach, quasi contracts Online Test (MCQ Quiz)

1. Which section of the Indian Contract Act, 1872 defines 'Proposal' (also known as Offer)?

A) Section 2(a) B) Section 2(b) C) Section 2(c) D) Section 2(d)

2. An agreement enforceable by law is defined as:

A) A promise B) An offer C) A contract D) A proposal

3. Which of the following is NOT an essential element of a valid contract?

A) Free consent B) Lawful consideration C) Certainty of terms D) Agreement to do an illegal act

4. The Indian Contract Act, 1872 came into force on:

A) 1st September 1872 B) 1st January 1872 C) 15th March 1872 D) 1st April 1873

5. According to Section 11 of the Indian Contract Act, 1872, who is disqualified from contracting?

A) Persons of unsound mind B) Persons disqualified by law C) Minors D) All of the above

6. A minor is a person who has not completed the age of:

A) 16 years B) 18 years C) 21 years D) 25 years

7. An agreement made by a minor is:

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

8. Which legal principle states that 'a minor's agreement is void ab initio'?

A) Res ipsa loquitur B) Pacta sunt servanda C) Mohori Bibee v. Dharmodas Ghose D) Caveat emptor

9. Consent is said to be free when it is not caused by:

A) Coercion B) Undue influence C) Fraud D) All of the above

10. Which section deals with Coercion under the Indian Contract Act, 1872?

A) Section 15 B) Section 16 C) Section 17 D) Section 18

11. Undue influence is defined under which section of the Indian Contract Act, 1872?

A) Section 15 B) Section 16 C) Section 17 D) Section 18

12. Which of the following constitutes Fraud under the Indian Contract Act, 1872?

A) The suggestion of a fact as to which the person making the suggestion does not believe it to be true B) The active concealment of a fact by a person having knowledge or belief of the fact C) A promise made without any intention of performing it D) All of the above

13. Misrepresentation means:

A) A false statement made knowingly B) A false statement made innocently C) A deliberate concealment of facts D) A threat to commit an act forbidden by the Indian Penal Code

14. Which section defines Mistake under the Indian Contract Act, 1872?

A) Section 19 B) Section 20 C) Section 21 D) Section 22

15. A contract based on a mistake of fact by both parties (bilateral mistake) is:

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

16. Consideration is defined in which section of the Indian Contract Act, 1872?

A) Section 2(d) B) Section 2(e) C) Section 2(f) D) Section 2(g)

17. Consideration must be:

A) Lawful B) Real C) Adequate D) All of the above

18. An agreement without consideration is generally:

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

19. Which of the following is NOT an exception to the rule 'no consideration, no contract'?

A) Love and affection B) Past voluntary service C) Agreement in restraint of trade D) Compensation for past voluntary service

20. An agreement in restraint of marriage is:

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

21. An agreement in restraint of trade is generally:

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

22. Which section declares agreements in restraint of trade void?

A) Section 27 B) Section 28 C) Section 29 D) Section 30

23. Agreements in restraint of legal proceedings are declared void by which section?

A) Section 27 B) Section 28 C) Section 29 D) Section 30

24. An agreement, the meaning of which is not certain, is:

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

25. Wagering agreements are declared void by which section?

A) Section 27 B) Section 28 C) Section 29 D) Section 30

26. Which of the following is a mode of discharge of a contract?

A) Performance B) Agreement C) Breach D) All of the above

27. When both parties to a contract fulfill their respective obligations, the contract is discharged by:

A) Performance B) Novation C) Rescission D) Waiver

28. Novation of a contract involves:

A) Cancellation of the old contract B) Substitution of a new contract C) Substitution of a new party D) All of the above

29. The discharge of a contract by mutual agreement is known as:

A) Performance B) Breach C) Rescission D) Impossibility of performance

30. When a contract becomes impossible of performance due to some event occurring after the contract was made, it is discharged by:

A) Breach B) Performance C) Impossibility of performance D) Agreement

31. A 'Breach of Contract' occurs when:

A) A party refuses to perform his promise B) A party makes performance impossible C) A party fails to perform his promise D) All of the above

32. What are the remedies available for a breach of contract?

A) Damages B) Specific performance C) Injunction D) All of the above

33. Damages awarded to compensate the injured party for the loss actually suffered are known as:

A) Nominal damages B) Ordinary damages C) Exemplary damages D) Liquidated damages

34. Specific performance of a contract is an order from the court directing a party to:

A) Pay damages B) Perform the contract as agreed C) Cancel the contract D) Pay a penalty

35. An injunction is a court order restraining a party from:

A) Performing an act B) Doing a particular act C) Paying damages D) Cancelling a contract

36. Quasi-contracts are based on the principle of:

A) Free consent B) Lawful consideration C) Unjust enrichment D) Public policy

37. Which section deals with 'Certain relations resembling those created by contract' (Quasi-Contracts)?

A) Sections 68-72 B) Sections 73-75 C) Sections 56-59 D) Sections 15-18

38. If a person finds goods belonging to another and takes them into his custody, he is subject to the same restrictions as:

A) A bailee B) A debtor C) A creditor D) A guarantor

39. Payment made by a person to another for money paid or delivered, or something done by the latter, which is not legally enforceable, can be recovered under:

A) Breach of contract B) Damages C) Quasi-contract D) Specific performance

40. A person who is interested in the payment of money which another is not bound by law to pay, and pays it, may recover it from the other under:

A) Breach of contract B) Quasi-contractual obligation C) Wagering agreement D) Unlawful agreement

41. An agreement declared void by this Act, or any consequence thereof, which has been received by a party, must be restored or compensated for under:

A) Section 68 B) Section 69 C) Section 70 D) Section 72

42. The doctrine of 'Privity of Contract' states that:

A) A contract is a private affair between the parties B) Only parties to a contract can sue and be sued upon it C) A stranger to the consideration can sue D) A stranger to the contract cannot sue

43. Which of the following is an exception to the doctrine of Privity of Contract?

A) Trusts B) Marriage settlements C) Agency D) All of the above

44. What is the legal status of an agreement made with an alien enemy?

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

45. In which of the following cases can a contract be discharged by 'Lapse of Time'?

A) When the contract specifies a time for performance B) When the contract is not performed within a reasonable time C) When the contract is for a fixed period D) All of the above

46. The principle of 'Restitution' in quasi-contracts means:

A) To restore the benefit received B) To pay damages C) To perform the promise D) To cancel the contract

47. What is the legal consequence of a contract declared void under Section 24 to 30 of the Indian Contract Act?

A) The entire contract is void B) Only the void part is void C) The contract becomes voidable D) The contract is valid

48. Which section of the Indian Contract Act, 1872 defines 'Acceptance'?

A) Section 2(a) B) Section 2(b) C) Section 2(c) D) Section 2(d)

49. A contract requires lawful consideration, lawful object, and:

A) Unlawful parties B) Uncertainty C) Agreement between competent parties D) Possibility of performance

50. The rule 'Ex turpi causa non oritur actio' means:

A) An agreement must be certain B) From a base cause, no action arises C) Consent must be free D) Consideration must be lawful

Indian Contract Act, 1872: valid contract, capacity, consent, discharge, breach, quasi contracts - Online Test

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