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Contract Law
1,497 Questions
Contract Law encompasses the rules and statutes governing legally binding agreements between parties. This hub provides practice questions on essential topics like legal obligations, breach of contract, and termination clauses. These concepts are frequently tested in law entrance tests and various other competitive government examinations.
Legal obligationsVoid contractsBreach of contractCommunication of acceptanceStatute of FraudsContract clauses
Contract Law Questions
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void
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voidable
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illegal
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None of these
A
Correct answer
Explanation
Option (1) is correct: The agreement becomes void.
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True
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False
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Partly true
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Cannot say
A
Correct answer
Explanation
Option (1) is correct: Under the provisions of the Sale of Goods Act, 1930, the right to repudiate the contract exists both in conditions and warranties.
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condition
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warranty
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pledge
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lien
A
Correct answer
Explanation
Option (1) is correct: A stipulation that is essential to the main purpose of a contract is called condition.
Option (2) is incorrect: A stipulation that is collateral to the main purpose of a contract is called warranty.
Option (3) is incorrect: A pledge means mortgaging goods for a loan.
Option (4) is incorrect: A lien means to retain possession.
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specific
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not specific
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specific or not specific
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A contract is never void.
A
Correct answer
Explanation
Option (1) is correct: If the goods under a contract perish before the making of the contract, it becomes void if the goods are specific. In any other case, the contract will not be void.
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being converted to co- operative ownership is if to sign
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being converted to co -operative ownership is if to sign
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being converted to co -operative ownership is whether or not they sign
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conversion to co-operative ownership whether to sign
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of being converted to co-operative ownership is if to sign
D
Correct answer
Explanation
All the options (A) , (B), (C) are not using any conjunction before being, so no meaning can be derived from the sentence. Option (E) uses a wrong preposition 'of' so, it is incorrect.
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JP Associates
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JM Infra
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Jointly to (A) and (B)
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None of these
A
Correct answer
Explanation
JP Associates was the primary contractor awarded the major expressway project in Uttar Pradesh.
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Matching concept
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Dual aspect concept
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Cost concept
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Realisation concept
D
Correct answer
Explanation
The realization concept states that revenue should be recognized in the accounts only when it is realized, which is typically when a legal right to receive the money arises. This ensures that income is not recorded prematurely before a transaction is legally binding.
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age of the parties
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soundness of mind of the parties
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both age and soundness of mind
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intelligence of the parties
C
Correct answer
Explanation
Option (3) is correct: Competency under the Indian Contract Act means that the parties must be major to the contract and must be of sound mind.
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Intimation of minimum price is proposal.
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An agreement against public policy is voidable.
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An agreement, the meaning of which is not certain, is void.
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Contingent contracts are illegal.
C
Correct answer
Explanation
Option (1) is incorrect: Intimation of minimum price is not a proposal as per the provisions of the Indian Contract Act.
Option (2) is incorrect: An agreement against public policy is void.
Option (3) is correct: An agreement, the meaning of which is not certain, is completely void under Section 29 of the Contract Act.
Option (4) is incorrect: Contingent contracts are not illegal.
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a valid contract
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an illegal contract
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a void contract
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a voidable contract
D
Correct answer
Explanation
Option (4) is correct: Under Section 2(i) of the Indian Contract Act, an agreement enforceable by law at the instance of one party and not of other party is called a voidable contract.
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Only (i)
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Only (i) and (ii)
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Only (i), (ii) and (iii)
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(i), (ii), (iii) and (iv)
D
Correct answer
Explanation
A contract may be vitiated by fraud, mistake, frustration and undue influence.
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agreement is in writing and registered
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parties to the agreement are in near relationship
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agreement is made due to natural love and affection
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All of the above
D
Correct answer
Explanation
Option (4) is correct: There may be a contract without consideration, if it is made in writing and registered under the law and is made on account of natural love and affection between parties standing in a near relation to each other.
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Unlawful contract
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A contract unperformed
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An agreement enforceable at the option of some parties only
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None of these
C
Correct answer
Explanation
Option (3) is correct: A voidable contract is a contract which becomes void later on and is enforceable at the option of some parties only.
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To sell an agriculture property
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To sell a dwelling house
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To perform in a singing programme
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None of these
C
Correct answer
Explanation
Option (3) is correct: Singing is purely a personal qualification and ability, which cannot be specifically enforced.
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suit for price and damages for non-acceptance
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suit for damages for non-acceptance
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suit for price only
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Cannot sue for price and damages
A
Correct answer
Explanation
In case there is a breach of contract from the buyer side, the seller can sue the buyer for price and damages for non-acceptance of goods.