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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

Multiple choice

In case, where a proposal and it as acceptance are not made by words and are inferred from the conduct of the parties. They are known as

  1. Implied offers

  2. Expressed Offers

  3. Specific Offers

  4. General Offers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Implied offers are those made through the conduct or actions of the parties rather than through spoken or written words. For example, when a person performs a service that is typically paid for, their conduct implies an offer to provide that service for a fee. This is recognized under Section 9 of the Indian Contract Act as an implied promise.

Multiple choice

A, B and C jointly promised to pay Rs. 90,000 to D. Before performance of the contract, C dies. Here the contract

  1. Becomes void on C' s death

  2. Should be performed by A and B along with C' s legal representatives

  3. Should be performed by A and B alone

  4. Should be renewed between A, B and D
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the case of a joint promise, the liability survives the death of a promisor and falls upon the surviving promisors along with the legal representatives of the deceased promisor.

Multiple choice

Which of the following agreements is not void?

  1. A agrees to sell fifty tons of oil to B.

  2. A agrees to sell his white elephant for Rs 10,000 or 12,000 to B.

  3. A agrees to sell one hundred tons of wheat at Rs 15 per kg to B.

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 This agreement is not void as it is not uncertain. It is certain that A intends to sell wheat to B, the quantity is also certain ( 100 tons ). The price is also certain ( Rs 15 per kg ) so it is the right answer.

Multiple choice

Which of the following is not an example of contingent contract?

  1. A contracts to pay a sum of Rs 1,00,000 to B, if B's factory is burnt.

  2. P agrees to purchase furniture from Q at Rs. 4,000.

  3. R agrees to pay a sum of Rs 2,50,000 to S, if S adopts a child.

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Right answer because this is not a contingent contract. It is not dependant on hapening of  an event. P would purchase furniture from Q at Rs 4,000 and there is no condition that P would purchase furniture from Q on happening of an event only.

Multiple choice

Which of the following agreements is without consideration?

  1. A finds B's cell phone and gives it to him. B promises to give A Rs 200.

  2. S, for natural love and affection, promises to pay Rs 2,000 to his son T.

  3. A is paid Rs 2,500 by B for looking after his son.

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 This agreement is without consideration as in this S has promised to pay Rs 2,000 to his son T without any consideration ( nothing in return ). It is void agreement.

Multiple choice

Which of the following agreements is void due to impossible events?

  1. A agrees to pay B a sum of Rs 4,000, if B could lift a train.

  2. A promises to pay B a sum of Rs 5,000, if a certain ship returns in a year.

  3. A agrees to pay B a sum of Rs 3,00,000, if B marries C.

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Right answer because this agreement is totally void as B cannot lift Rajdhani Express train in any case.It is           ,too, heavy .So B cannot lift it.

Multiple choice

E, a dancer, contracts with F, the manager of a night club, to dance in his night club for the next one month in the night. On the thirteenth night, E wilfully absents herself from the night club. In this case,

  1. F is not entltled to claim the compensation from E

  2. the contract becomes void

  3. E is entitled to receive compensation from F

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 E has the right to claim compensation from F as he has sustained loss due to non-performance of contract by F.

Multiple choice

Which of the following is an example of reciprocal contract?

  1. S promises to pay a sum of Rs 3,000 to T, if T discovers his treasure by magic.

  2. A and B contract that A shall complete a project for B at a fixed price.

  3. C promises to pay a sum of Rs 30,000 to D, if he wins the cricket match.

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Right answer because it is an example of reciprocal contract, as it consists of reciprocal promise to be simultaneously performed. A's promise to complete the project must be performed before B's promise to pay for it.

Multiple choice

B, a broker at Delhi, on the order of A contracts with C for the purchase of 20 kg of iron-ore. Afterwards A refuses to receive the iron-ore, and C sues B. B informs A who rejects the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses. A is liable to B for

  1. damages only

  2. costs only

  3. damages, costs and expenses

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 A is liable to pay to B the damages suffered due to rejection of contract, costs incurred on contract for purchase of iron-ore and expenses incurred by B to defend himself when sued by C. It is total error on part of A and B is sued by C, because of rejection of contract by A.

Multiple choice

Which one of the following statements is incorrect?

  1. Contract made under undue influence is voidable.

  2. Contract made by minor is voidable.

  3. Contracts made under mistake are voidable.

  4. Contract made under fraud is voidable.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Right- This is incorrect because the contract act says that contract made under mistake is voidable.