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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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the contract is void
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B has no legal remedy
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B can sue A for the loss caused to him
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B should request A to give back the advance money only
C
Correct answer
Explanation
If the contract becomes void due to impossibility known to one party, that party is bound to make good the loss caused to other party.
Had it been not known to A at the time of making the contract, the agreement would have been void.
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impossibility of performance
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operation of law
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breach of contract
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remission
B
Correct answer
Explanation
As the insolvent persons cannot continue the contract, the contract is discharged by the law.
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Every unlawful agreement is necessarily illegal.
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Every illegal agreement is necessarily unlawful.
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The term illegal agreement is wider than unlawful agreement.
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None of these
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valid
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voidable
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void
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void ab initio
A
Correct answer
Explanation
Consideration is necessary. It may or may not be adequate.
If the consent is not free, then the agreement is not valid though the consideration may or may not be sufficient.
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valid
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void
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voidable
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illegal
A
Correct answer
Explanation
A contingent contract is legal and valid.
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valid
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void
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voidable
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illegal
B
Correct answer
Explanation
A wagering agreement is void in India. But in the states of Gujarat and Maharashtra, it is illegal.
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contingent
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void
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voidable
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wagering
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an attempted tender
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anticipation of performance
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a tender of performance
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none of these
C
Correct answer
Explanation
It is a way of performing the contract.
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a valid tender
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a voidable tender
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not a valid
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always applicable
C
Correct answer
Explanation
It is never applicable unless intended by promisee.
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Novation
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Alteration
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Recission
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Remission
A
Correct answer
Explanation
Novation means substitution of new contract in place of an old one.
Alteration means changing one or more terms. Recission means cancellation of contract.
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before the due date
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on the due date
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after the due date
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any time
A
Correct answer
Explanation
Anticipatory breach takes place before the due date.
Actual breach takes place on the due date.
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he is not required to restore the benefits received under contract.
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he should restore the benefits received under contract.
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he should take the advice of court to restore the benefits.
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all of these hold true in this case.
B
Correct answer
Explanation
Since the contract has been rescinded, so benefits should be restored.
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Contingent
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Wagering
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Quasi
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Expressed
C
Correct answer
Explanation
These contracts are not based upon agreement, but imposed by law.
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contingent
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wagering
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quasi
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expressed
A
Correct answer
Explanation
Contingent events always arise on happening or non-happening of an event.
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unlawful contract
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voidable contract
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void contract
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void ab initio
A
Correct answer
Explanation
Any contract opposite to public policy is unlawful contract.
Void contracts are those which were otherwise valid but had become void due to certain event.
A contract is voidable if it is caused by fraud, coercion etc.