IMPORTANT QUESTION WITH ANSWERS RELATED TO LAWS OF CONTRACT

IMPORTANT QUESTION WITH ANSWERS RELATED TO LAWS OF CONTRACT

What is the minimum age required for a person to enter into a contract in India?
a) 16 years
b) 18 years
c) 21 years
d) 25 years
Answer: b) 18 years

Which section of the Indian Contract Act, 1872 deals with the definition of a contract?
a) Section 1
b) Section 2
c) Section 5
d) Section 10
Answer: b) Section 2

A contract is voidable at the option of one party when:
a) It is void ab initio
b) It is voidable from the beginning
c) It lacks free consent
d) It lacks consideration
Answer: c) It lacks free consent

Which type of contract is specifically discussed in Section 10 of the Indian Contract Act, 1872?
a) Void Contract
b) Unilateral Contract
c) Quasi Contract
d) Contingent Contract
Answer: d) Contingent Contract

In a contract, the acceptance must be:
a) Conditional
b) Absolute and unqualified
c) Implied
d) Written
Answer: b) Absolute and unqualified

Which of the following is not a valid consideration for a contract?
a) Money
b) Goods
c) Past Consideration
d) Love and affection
Answer: c) Past Consideration

Who is a minor in the context of the Indian Contract Act?
a) Anyone below 21 years of age
b) Anyone below 18 years of age
c) Anyone below 16 years of age
d) Anyone below 25 years of age
Answer: b) Anyone below 18 years of age

What is the maximum number of persons required for a partnership in India?
a) 2
b) 3
c) 5
d) 7
Answer: c) 5

Which of the following is a void agreement under the Indian Contract Act?
a) An agreement with a minor
b) An agreement with a person of unsound mind
c) An agreement with free consent
d) An agreement with consideration
Answer: a) An agreement with a minor

A contract induced by undue influence is:
a) Void
b) Voidable
c) Valid
d) Illegal
Answer: b) Voidable

Which section of the Indian Contract Act defines “consent”?
a) Section 9
b) Section 10
c) Section 13
d) Section 14
Answer: c) Section 13

In a contract, what does the term “privity of contract” refer to?
a) A contract’s legality
b) The parties’ understanding
c) The relationship between parties
d) The terms and conditions
Answer: c) The relationship between parties

A contract of wagering is:
a) Void
b) Valid
c) Voidable
d) Illegal
Answer: a) Void

What type of damages are awarded to compensate for the actual loss suffered due to a breach of contract?
a) Liquidated damages
b) Nominal damages
c) Special damages
d) Compensatory damages
Answer: d) Compensatory damages

Which section of the Indian Contract Act, 1872, defines the term “void agreement”?
a) Section 2(g)
b) Section 3
c) Section 7
d) Section 10
Answer: a) Section 2(g)

What is the maximum period for which a restraint of trade is considered reasonable in India?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
Answer: b) 2 years

When can a contract be discharged by frustration?
a) When one party breaches the contract
b) When both parties agree to cancel the contract
c) When a change in circumstances makes performance impossible
d) When a minor is involved in the contract
Answer: c) When a change in circumstances makes performance impossible

What is the primary purpose of an “anticipatory breach” in contract law?
a) To encourage breach of contract
b) To allow parties to cancel a contract before performance is due
c) To extend the contract period
d) To penalize non-performance
Answer: b) To allow parties to cancel a contract before performance is due

What is the maximum period for filing a suit to enforce a contract in India?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
Answer: c) 3 years

Which type of contract can be specifically enforced by a court?
a) Void contract
b) Illegal contract
c) Unilateral contract
d) Valid contract
Answer: d) Valid contract

When is a contract considered “void” under Indian law?
a) When it is not in writing
b) When it lacks consideration
c) When it is against public policy
d) When it is not signed by both parties
Answer: c) When it is against public policy

What is the legal term for a contract that has been fulfilled and no longer requires performance?
a) Void contract
b) Executed contract
c) Unilateral contract
d) Voidable contract
Answer: b) Executed contract

When does a contract become “discharged by performance”?
a) When it is terminated by a court order
b) When both parties agree to cancel it
c) When all the obligations under the contract are fulfilled
d) When it is in writing
Answer: c) When all the obligations under the contract are fulfilled

Which type of contract is valid but lacks legal enforceability?
a) Void contract
b) Voidable contract
c) Illegal contract
d) Unenforceable contract
Answer: d) Unenforceable contract

What is the term for an agreement made without the intention of creating a legal relationship?
a) Social agreement
b) Gratuitous contract
c) Void contract
d) Unilateral contract
Answer: b) Gratuitous contract

In a contract, what is a “contingent contract”?
a) A contract that depends on an uncertain event
b) A contract without consideration
c) A contract with only one party’s promise
d) A contract that is illegal
Answer: a) A contract that depends on an uncertain event

What type of contract is created when both parties exchange promises to perform their respective obligations?
a) Unilateral contract
b) Bilateral contract
c) Void contract
d) Quasi contract
Answer: b) Bilateral contract

What is a “minor’s agreement” under Indian contract law?
a) A void agreement
b) A voidable agreement
c) A valid agreement
d) An illegal agreement
Answer: b) A voidable agreement

Which section of the Indian Contract Act deals with the consequences of a breach of contract?
a) Section 65
b) Section 72
c) Section 90
d) Section 100
Answer: b) Section 72

What does the term “coercion” refer to in contract law?
a) Unfair bargaining power
b) Threat of physical harm
c) Undue influence
d) Misrepresentation
Answer: b) Threat of physical harm

Which section of the Indian Contract Act, 1872, defines “voidable contracts”?
a) Section 5
b) Section 7
c) Section 12
d) Section 19
Answer: c) Section 12

When does a contract become “illegal” under Indian contract law?
a) When it is not in writing
b) When it is not signed by both parties
c) When it violates a statute or is against public policy
d) When it lacks consideration
Answer: c) When it violates a statute or is against public policy

What is the term for a contract in which one party has an option to perform or not perform their obligations?
a) Bilateral contract
b) Unilateral contract
c) Void contract
d) Gratuitous contract
Answer: b) Unilateral contract

What is the primary remedy available for a breach of contract in India?
a) Rescission
b) Damages
c) Specific performance
d) Restitution
Answer: b) Damages

Which section of the Indian Contract Act, 1872, defines “quasi contracts”?
a) Section 65
b) Section 68
c) Section 72
d) Section 90
Answer: c) Section 72

What is the term for an agreement made with the intention of defrauding creditors?
a) Void contract
b) Voidable contract
c) Fraudulent contract
d) Gratuitous contract
Answer: c) Fraudulent contract

What is the maximum period for filing a suit for the specific performance of a contract in India?
a) 1 year
b) 2 years
c) 3 years
d) No specific period
Answer: d) No specific period

In a contract, what is the term for a minor’s right to repudiate the contract upon attaining majority?
a) Right to ratify
b) Right to reject
c) Right to enforce
d) Right to rescind
Answer: a) Right to ratify

What type of damages are awarded to punish the breaching party and deter future breaches?
a) Compensatory damages
b) Liquidated damages
c) Nominal damages
d) Exemplary damages
Answer: d) Exemplary damages

In a contract, what does “impossibility of performance” refer to?
a) A party’s unwillingness to perform
b) A party’s inability to perform due to unforeseen circumstances
c) A party’s failure to perform on time
d) A party’s refusal to perform without a valid reason
Answer: b) A party’s inability to perform due to unforeseen circumstances

What is the term for a contract where one party provides consideration, but the other party does not promise anything in return?
a) Bilateral contract
b) Unilateral contract
c) Gratuitous contract
d) Voidable contract
Answer: c) Gratuitous contract

When does a contract become “voidable at the option of the aggrieved party” under Indian contract law?
a) When both parties agree to cancel it
b) When it lacks consideration
c) When there is undue influence or fraud
d) When it is not in writing
Answer: c) When there is undue influence or fraud

What is the term for a contract where one party’s promise is conditional upon the other party’s performance?
a) Bilateral contract
b) Unilateral contract
c) Void contract
d) Gratuitous contract
Answer: a) Bilateral contract

What is the term for a contract that is not enforceable by law due to a technical defect?
a) Void contract
b) Voidable contract
c) Illegal contract
d) Unenforceable contract
Answer: d) Unenforceable contract

What is the term for a contract that has not been performed by either party?
a) Executed contract
b) Unilateral contract
c) Void contract
d) Executory contract
Answer: d) Executory contract

In a contract, what is the term for a minor’s right to disaffirm the contract during their minority?
a) Right to ratify
b) Right to reject
c) Right to enforce
d) Right to rescind
Answer: d) Right to rescind

What is the term for a contract in which one party has all the power and dictates the terms?
a) Unilateral contract
b) Void contract
c) Contract of adhesion
d) Gratuitous contract
Answer: c) Contract of adhesion

Under the Indian Contract Act, what is the maximum period for filing a suit for breach of contract for the sale of goods?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: b) 2 years

What is the term for a contract in which the essential terms are left to be determined at a later date?
a) Void contract
b) Voidable contract
c) Wagering contract
d) Agreement to agree
Answer: d) Agreement to agree

Which section of the Indian Contract Act, 1872, deals with the “impossibility of performance” as a ground for discharge of a contract?
a) Section 32
b) Section 56
c) Section 65
d) Section 72
Answer: b) Section 56