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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

Which of the following is not a property of transaction?

  1. Isolation

  2. Conspiracy

  3. Atomicity

  4. Durability
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Conspiracy is not an (ACID) property of transaction. The valid properties of transaction are represented in the form of ACID, i.e.

A- Atomicity C- Consistency I - Isolation and D - Durability
 

Multiple choice

The contract of sale may be

  1. absolute only

  2. conditional only

  3. both absolute or conditional

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

The sale may be absolute or conditional both.     

Multiple choice

If there is breach of warranty, the buyer can

  1. repudiate the contract

  2. sue for damages

  3. opt any of the two

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

In case of breach of warranty, the buyer can sue only for damages. In case of breach of condition, the buyer can repudiate the contract or sue for damages.

Multiple choice

A person agrees to sell his property worth Rs. 20,00,000 for Rs. 2,00,000. The consideration is inadequate. The contract is

  1. valid

  2. void

  3. voidable

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

Consideration need not be adequate, but it must be real. It need not be approximately of equal value with the promise for which it is exchanged, but it must be something which the law would regard as having some value. Thus, if A agrees to voluntarily sell his house worth Rs. 20,00,00 for Rs. 2,00,000, it is a valid contract.

Multiple choice

A minor made an agreement with a coaching institute to get coaching for PMT course. The agreement is

  1. Void ab initio

  2. voidable

  3. Valid

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

An agreement entered into by minor is void ab initio. MInor is not bound to fulfill his obligation because agreement is not enforceable by law. In case of necessaries supplied to minor, neither minor nor his guardian is liable but Minor's personal property is liable . If personal property is not there, no recovery is possible. Necessaries cover food, shelter, education, medical treatment, marriage of female and others. In given que, if minor does not pay fees, his personal assets shall be liable, not the minor.

Multiple choice

A person agrees to sell his property worth Rs. 20,00,000 for Rs. 2,00,000. The consideration is inadequate. The contract is

  1. valid

  2. void

  3. voidable

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

Consideration need not be adequate, but it must be real. It need not be approximately of equal value with the promise for which it is exchanged, but it must be something which the law would regard as having some value. Thus, if A agrees to voluntarily sell his house worth Rs. 20,00,00 for Rs. 2,00,000, it is a valid contract.