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Contract Law
1,453 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 parties to a valid contract must not be of unsound mind.
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The parties to a valid contract must not be of the age below majority.
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The parties to a valid contract must not be disqualified by law from contracting.
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The parties to a valid contract must not be from the same country.
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The parties to a valid contract must not be agreed on the same thing in the same sense.
D
Correct answer
Explanation
It is not necessary that the parties to a contract should belong to the same country.
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contingent contract
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void
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voidable contract
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illegal contract
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none of these
B
Correct answer
Explanation
It is the correct answer.
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An agreement to do impossible act is valid.
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An agreement to do an impossible act is void.
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Let the buyer beware.
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Let the seller beware.
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An agreement to do impossible act is voidable.
B
Correct answer
Explanation
It is the correct answer.
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Express contract
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Implied contract
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Void contract
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Quasi contract
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Contingent contract
D
Correct answer
Explanation
It is the correct answer.
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implied contract
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wagering contract
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contingent contract
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quasi contract
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formal contract
A
Correct answer
Explanation
It is the correct answer.
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void agreement
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void contract
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valid contract
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contingent contract
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wagering contract
B
Correct answer
Explanation
It is the correct answer.
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executory contract
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unilateral contract
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bilateral contract
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executed contract
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none of these
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An illegal agreement is definitely void.
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A void agreement is essentially an illegal contract.
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All contracts are agreements.
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An illegal agreement is illegal ab initio.
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An illegal agreement has wider scope than void agreement.
B
Correct answer
Explanation
It is not correct. A void agreement is not essentially illegal.
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The offerer and offeree must be distinct persons.
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It shows willingness or intention to do or to abstain from doing a particular thing.
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It is made to get the consent of other party.
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It must be endorsed or permitted by law.
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It should always be accepted by other party.
E
Correct answer
Explanation
It is not correct as offer is not always bound to be accepted. It may be rejected also.
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A specific offer may be accepted by anyone.
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A general offer may be accepted by anyone.
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An offer must be communicated to the concerned person.
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An offer is not the same as an invitation to offer.
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Statement of price is not an offer.
A
Correct answer
Explanation
It is not correct as specific offer can be accepted only by definite person or group to whom it is made.
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An offer lapses, if it is not accepted in prescribed mode.
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An offer lapses, if it is not accepted in stipulated or reasonable time.
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An offer lapses, if it is revoked by offerer before it is accepted.
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An offer lapses, if it is revoked after its acceptance.
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An offer lapses, if it is subsequently forbidden by law before it is accepted.
D
Correct answer
Explanation
It is not the correct statement.
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Acceptance must be absolute and unqualified.
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Acceptance may be implied from the silence of offeree.
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Acceptance must be in prescribed mode only.
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Acceptance must be communicated.
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Acceptance cannot precede an offer.
B
Correct answer
Explanation
It is not correct. If the offeree does not respond to offer, it does not become acceptance.
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Promise made on account of love and affection
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Contract of agency
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Complete gifts
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Pension given to retired employee
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Contract of guarantee given to bank for the loan taken by friend
D
Correct answer
Explanation
It is the correct answer. The pension given to retired employee is an example of past consideration, i.e. services given in the past.
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B/R is a negotiable instrument
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B/R must be accepted by drawee
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There can be three parties in respect of bills of exchange - drawer, drawee and payee
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Oral bill of exchange is also valid
D
Correct answer
Explanation
A bill of exchange is a written document.
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noting
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discounting
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acceptance
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none of the above
C
Correct answer
Explanation
Unlike Bill of Exchange, a Promissory note does not require any acceptance since it is signed by the persons who is liable to pay.