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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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Free consent
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Parties must be competent to contract.
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Consideration
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Lawful object
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Terms of the agreement must not be vague or uncertain.
E
Correct answer
Explanation
Section 10 defines what agreements are contracts. There are five essentials for a valid contract and those are free consent, competency of parties, lawful consideration, lawful object and not declared to be void. 'Terms of the agreement must not be vague or uncertain' is no such requirement.
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money received in the past without even making a proposal
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the price that is more than the promisor’s expectation
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the price paid or service rendered at the desire or request of the promisor, followed by a subsequent promise
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consideration and promise take place simultaneously
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None of these
C
Correct answer
Explanation
Consideration is a price for a promise and it is usually given in response to and as an inducement for the promise.
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a party renounces his liability under the contract
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a party by his own act makes it impossible that he should perform his obligations under the contract
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a party totally or partially fails to perform his part of the contract
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All of the above
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None of these
D
Correct answer
Explanation
A contract is said to be broken if a party to it refuses to perform it or when a party to a contract disables himself from performing his promise or fails to perform his part of contract either totally or partially.
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novation
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rescission
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alteration
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repudiation
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None of these
C
Correct answer
Explanation
An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations to the parties to contract. An alteration of an instrument materially changes it.
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as much as is earned
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in proportion to the work done
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Both 1 and 2
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Neither 1 nor 2
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lawful amount
C
Correct answer
Explanation
Both options are correct. Quantum merit means what one has earned or a sum according to the proportion of work done.
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void
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voidable
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illegal
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unenforceable
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None of these
A
Correct answer
Explanation
A material alteration made in a written contract by one party without the consent of other will make the contract void and no person can make an action upon it. Thus, it falls under 'discharge of contract by operation of law'.
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rescission or cancellation of contract
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alteration of contract
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novation of contract
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repudiation of contract
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None of these
A
Correct answer
Explanation
Rescission means termination of a contract by mutual agreement between the parties or as a result of some legal defect or as a result of fraud, etc. Under rescission, both the parties are discharged from the obligations of a contract.
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both the parties are liable
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neither party is liable
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only offerer is liable
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only acceptor is liable
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None of these
B
Correct answer
Explanation
A contract to do an act, which after the contract is made, becomes impossible by reason of some event, which the promisor could not prevent, becomes void when the contract becomes impossible. Thus, neither party is liable for the non-performance of contract.
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accord of contract
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assignment of contract
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novation of contract
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rescission of contract
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None of these
B
Correct answer
Explanation
A contract of assignment is one when original parties to contract gives the obligations and benefits of contract to another party. Whereas where a party assigns only the benefits of contract and retain the obligations, it is called assignment of rights.
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dependent or conditional upon the happening or non-happening of a future event or contingency
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dependent or conditional upon the happening of a future event or contingency
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independent or unconditional contract
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None of these
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All of the above
A
Correct answer
Explanation
A contingent contract is a contract to do or not to do something if some event collateral to such contract does not happen. A contingent contract depends upon the happening or non-happening of a certain event. If such event takes place, then a contingent contract becomes valid and if that uncertain event does not take place, then a contingent contract becomes void.
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quantum meruit
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rescission
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specific performance
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injunction
C
Correct answer
Explanation
Specific performance is an order of a court that requires a party to perform a specific act, which is stated in a contract.
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by the mutual consent of the parties
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by the will of either party
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when the subject matter of a contract ceases to exist
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by the death of a party to contract
D
Correct answer
Explanation
Assignment by operation of law takes place by the death or retirement of a party to contract.
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anticipatory breach in an express manner
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actual breach in an express manner
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anticipatory breach in an implied manner
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actual breach in an implied manner
C
Correct answer
Explanation
Farry is entitled to sue Ena for anticipatory breach in an implied manner.
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alteration of contract
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rescission of contract
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novation of contract
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all of the above
C
Correct answer
Explanation
A novation ordinarily arises when a new individual assumes an obligation to pay that is incurred by the original party to the contract.
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the consideration, promised by executive of a company
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the consideration, which consists simply of a mutual exchange of promisee, each being a consideration for the other
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the consideration, which should be executed on the future date
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the consideration, which should be executed before the court
C
Correct answer
Explanation
An executory consideration is a consideration that should be executed on the future date.