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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

________ is the foundation of every contract.

  1. Promise

  2. Desire

  3. Proposer

  4. Agreement

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

Contract is formed by agreement between the parties. Desire is mere intention to do any work. Proposer is the person who makes offer. Promise is the statement of offer made to other party.

Multiple choice

Which of the following terms means something in return?

  1. Offer

  2. Promise

  3. Consideration

  4. Acceptance
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Consideration is something for which the promise of other party is bought. Offer means the intention made to other party. Promise is the statement of offer made to other party. Acceptance is the confirmation of the offer.

Multiple choice

If the object of any contract is unlawful, it is a _____ contract.

  1. valid

  2. voidable

  3. void

  4. void ab initio
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Any contract unlawful from its inception is void ab initio. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Void contracts are those which were otherwise valid but had become void due to certain event.

Multiple choice

A promises to paint a picture for B, but he dies before the execution of his promise. The contract has become 

  1. valid

  2. voidable

  3. void

  4. void ab initio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Any contract unlawful from its inception is void ab initio.

Multiple choice

Which of the following is a valid contract?

  1. A promises to dine at B's house.

  2. A agrees to provide loan to B.

  3. A promises to sell his car to B at reasonable price.

  4. A and B agree to make agreement in future.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The domestic agreements are legally not binding. The contract, the meaning of which is not certain, is not valid. Even to agree for the future is not a contract.

Multiple choice

A contract which is valid when made, but subsequently becomes unenforceable is

  1. valid contract

  2. voidable contract

  3. void contract

  4. void ab initio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc. Any contract unlawful from its inception is void ab initio. 

Multiple choice

Void agreements are also known as

  1. valid contract

  2. voidable contract

  3. void contract

  4. void ab initio
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Any contract unlawful from its inception is void ab initio. Void contract are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is valid contract. A contract is voidable if it is caused by fraud, coercion etc.

Multiple choice

Agreement opposite to public policy is _______.

  1. unlawful contract

  2. voidable contract

  3. void contract

  4. void ab initio
Reveal answer Fill a bubble to check yourself
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.

Multiple choice

A bilateral contract is one where

  1. the performance of both the parties is executory.

  2. the performance of both the parties is executed.

  3. the performance of one of the parties is executory.

  4. the performance of one party is executed.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the obligation pending from both parties is yet to be executed, it is a bilateral contract. (B) is an example of executed contract. (C) and (D) are unilateral contracts.

Multiple choice

Which of the following is not true?

  1. An acceptance can precede an offer.

  2. There are at least two parties in an offer.

  3. The offer may be positive or negative.

  4. Offer must be communicated.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An acceptance can't take place before an offer is made.