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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

Multiple choice

Which of the following is NOT a ground for rescission of a contract under the Indian Contract Act?

  1. Misrepresentation

  2. Fraud

  3. Undue Influence

  4. Mistake of Law
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mistake of Law is not a ground for rescission of a contract under the Indian Contract Act. Misrepresentation, Fraud, and Undue Influence are all grounds for rescission.

Multiple choice

What is the legal term for a promise made in exchange for a promise?

  1. Bilateral Contract

  2. Unilateral Contract

  3. Voidable Contract

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

A Bilateral Contract is a contract in which both parties make promises to each other in exchange for each other's promises.

Multiple choice

Which of the following is NOT a type of breach of contract under the Indian Contract Act?

  1. Anticipatory Breach

  2. Actual Breach

  3. Fundamental Breach

  4. Minor Breach
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Minor Breach is not a type of breach of contract under the Indian Contract Act. Anticipatory Breach, Actual Breach, and Fundamental Breach are all types of breach of contract.

Multiple choice

What is the legal term for a contract that is void from the beginning?

  1. Void Contract

  2. Voidable Contract

  3. Unenforceable Contract

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

A Void Contract is a contract that is invalid from the beginning and has no legal effect.

Multiple choice

What is the legal term for a contract that is entered into under duress or coercion?

  1. Voidable Contract

  2. Unenforceable Contract

  3. Void Contract

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

A Voidable Contract is a contract that is valid but can be rescinded by the party who was under duress or coercion.

Multiple choice

What is the legal term for a contract that is performed by both parties?

  1. Executed Contract

  2. Voidable Contract

  3. Unenforceable Contract

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

An Executed Contract is a contract that has been performed by both parties and has no further obligations.

Multiple choice

What is the legal term for a contract that is entered into by a minor?

  1. Voidable Contract

  2. Unenforceable Contract

  3. Void Contract

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

A Voidable Contract is a contract that is entered into by a minor and can be rescinded by the minor upon reaching the age of majority.

Multiple choice

Which of the following is NOT a type of discharge of a contract under the Indian Contract Act?

  1. Performance

  2. Mutual Agreement

  3. Frustration

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

Frustration is not a type of discharge of a contract under the Indian Contract Act. Performance, Mutual Agreement, and Novation are all types of discharge of a contract.

Multiple choice

What is the 'implied-in-fact' contract theory of trade secret protection?

  1. It creates a contractual obligation between an employer and an employee to protect the employer's trade secrets

  2. It imposes a duty on a defendant to disclose the source of a trade secret if the defendant uses the trade secret to generate profits

  3. It creates a presumption that a trade secret has been misappropriated if the defendant uses the trade secret to compete with the owner

  4. It provides a defense to a trade secret misappropriation claim if the defendant can show that the trade secret was obtained through independent research
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The 'implied-in-fact' contract theory of trade secret protection creates a contractual obligation between an employer and an employee to protect the employer's trade secrets. This obligation is implied from the relationship between the employer and the employee, even if there is no express contract between the parties.

Multiple choice

What is the 'implied-in-fact' contract theory of trade secret protection?

  1. It creates a contractual obligation between an employer and an employee to protect the employer's trade secrets

  2. It imposes a duty on a defendant to disclose the source of a trade secret if the defendant uses the trade secret to generate profits

  3. It creates a presumption that a trade secret has been misappropriated if the defendant uses the trade secret to compete with the owner

  4. It provides a defense to a trade secret misappropriation claim if the defendant can show that the trade secret was obtained through independent research
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The 'implied-in-fact' contract theory of trade secret protection creates a contractual obligation between an employer and an employee to protect the employer's trade secrets. This obligation is implied from the relationship between the employer and the employee, even if there is no express contract between the parties.

Multiple choice

Which of the following is NOT a requirement for substantial performance?

  1. The party must have substantially performed all of the material terms of the contract.

  2. The party must have substantially performed all of the essential terms of the contract.

  3. The party must have substantially performed all of the minor terms of the contract.

  4. The party must have substantially performed all of the conditions of the contract.
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Minor terms are not required to be substantially performed in order for a party to be considered to have substantially performed the contract.

Multiple choice

Which of the following is NOT an excuse for nonperformance?

  1. Impossibility

  2. Frustration of purpose

  3. Mistake

  4. Breach of contract by the other party
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Breach of contract by the other party is not an excuse for nonperformance. Instead, it is a ground for rescission or damages.

Multiple choice

Which of the following is NOT a type of anticipatory breach of contract?

  1. Positive anticipatory breach

  2. Negative anticipatory breach

  3. Actual anticipatory breach

  4. Constructive anticipatory breach
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Actual anticipatory breach is not a type of anticipatory breach of contract. It is a breach of contract that occurs when a party actually fails to perform the contract.

Multiple choice

Which of the following is NOT a type of quasi-contract?

  1. Restitution

  2. Unjust enrichment

  3. Quantum meruit

  4. Implied contract
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Implied contract is not a type of quasi-contract. It is a type of contract that is created by the law, rather than by the express agreement of the parties.

Multiple choice

Which of the following is NOT a remedy for unjust enrichment?

  1. Restitution

  2. Unjust enrichment

  3. Quantum meruit

  4. Implied contract
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Unjust enrichment is not a remedy for unjust enrichment. It is the name of the cause of action.