Law Officer Exams

Important MCQs- Part 5

(Indian Contract Act, 1872)

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1. Which one of the offers is a valid offer?

a) A garment store gave the following advertisement in a newspaper – “Special sale for
tomorrow only. Men’s night suits reduced from Rs.200 to Rs.100”
b) P says to Q, “I will sell you a digital camera.” P owns three different types of digital
cameras of various prices
c) An auctioneer displays a refrigerator before a gathering in an auction sale
d) A advertises in a leading daily newspaper that he would pay Rs. 2000 to anyone who
finds and returns his lost dog
e) None of the above

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1. Which one of the offers is a valid offer?

a) A garment store gave the following advertisement in a newspaper – “Special sale for
tomorrow only. Men’s night suits reduced from Rs.200 to Rs.100”
b) P says to Q, “I will sell you a digital camera.” P owns three different types of digital
cameras of various prices
c) An auctioneer displays a refrigerator before a gathering in an auction sale
d) A advertises in a leading daily newspaper that he would pay Rs. 2000 to anyone who
finds and returns his lost dog
e) None of the above

Rest of all are invitation to offer. Read the case of Lalman Shukla VS Gauridutt.

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2. A promise to paint a picture for B at a certain price. Which of the following
is not incorrect?

a) A is bound to perform the promise himself

b) A can appoint some other painter to paint the picture on his behalf
c) A dies before painting the picture, the contract can be enforced either by representatives
of A or by B
d) All of the above are incorrect
e) None of the above

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2. A promise to paint a picture for B at a certain price. Which of the following
is not incorrect?

a) A is bound to perform the promise himself

b) A can appoint some other painter to paint the picture on his behalf
c) A dies before painting the picture, the contract can be enforced either by representatives
of A or by B
d) All of the above are incorrect
e) None of the above

Contract requiring personal volition or quality, must be performed by the promisor himself.

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3. Reciprocal promises means :

a) Mutual Promise
b) Promise for a promise
c) Both a and b
d) Tender of Promise
e) None of the above

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3. Reciprocal promises means :

a) Mutual Promise
b) Promise for a promise
c) Both a and b
d) Tender of Promise
e) None of the above

According to Section 2(f) of the Indian Contract Act, defines reciprocal promises as
promises which form the consideration or part of the consideration for each other. In other
words, when the parties to an agreement make mutual promises to do or to abstain from
doing something, these are referred to as reciprocal promises. Thus, there is an obligation
on each party to perform his promise and to accept performance of the other’s promises

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4. Which of the following is an exception to the ‘privity’ rule?

a) Estoppels
b) Acknowledgement
c) Family arrangements and marriage settlements
d) Trust
e) All of the above

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4. Which of the following is an exception to the ‘privity’ rule?

a) Estoppels
b) Acknowledgement
c) Family arrangements and marriage settlements
d) Trust
e) All of the above

Privity to contract means only parties to contract have a right to sue in case of breach but
when the third party to a contract is due to trust, family arrangement, estoppel etc. they can
also exercise such right

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5. The following conditions must exist so that a promise to pay for the past
voluntary services is binding:

a) The services should have been rendered voluntarily

b) The services must have been rendered for the promisor
c) They must be in existence at the time when the services were rendered and must have
intended to compensate the promise
d) All of the above
e) None of the above

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 5. The following conditions must exist so that a promise to pay for the past
voluntary services is binding:

a) The services should have been rendered voluntarily

b) The services must have been rendered for the promisor
c) They must be in existence at the time when the services were rendered and must have
intended to compensate the promise
d) All of the above
e) None of the above

If a person renders voluntary services without any request or promise from another and the person receiving the services makes a promise
to pay for the services, then such a promise is enforceable in India under Section 25(2) of the Indian Contract Act, 1872 which states: ‘‘An
agreement made without consideration is void unless it’s a promise to compensate, wholly or in part, a person who has already voluntarily
done something for the promisor, or something which the promisor was legally compellable to do; or unless.’’

For Example- Peter finds Noah’s wallet on the road. He returns it to him and Noah promises to pay Peter Rs 500. This is a valid contract
under the Indian Contracts Act, 1872

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6. Shreya, a Singer agrees with Rehman for his performance at Gokuldham
Society on a specified date. While on his way to the Gokuldham Society
Shreya met with an accident and is rendered unconscious. Choose the
correct statement

a) Agreement become void on the ground of supervening impossibility.

b) Agreement is valid and so Shreya is liable to pay damages
c) Agreement is voidable and so Rehman has right to claim for compensations.
d) Agreement is void-ab-initio
e) Agreement become voidable at the option of Rehman on the ground of supervening
impossibility.

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6. Shreya, a Singer agrees with Rehman for his performance at Gokuldham
Society on a specified date. While on his way to the Gokuldham Society
Shreya met with an accident and is rendered unconscious. Choose the
correct statement

a) Agreement become void on the ground of supervening impossibility.

b) Agreement is valid and so Shreya is liable to pay damages
c) Agreement is voidable and so Rehman has right to claim for compensations.
d) Agreement is void-ab-initio
e) Agreement become voidable at the option of Rehman on the ground of supervening
impossibility.

The doctrine of frustration is present in India u/s. 56 of the Indian Contract Act 1852. It says
that any act which was to be performed after the contract is made becomes unlawful or
impossible to perform, and which the promisor could not prevent, then such an act which
becomes impossible or unlawful will become void

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7. Contract of insurance is contract of

a) Guarantee
b) Indemnity
c) Surety
d) Bailment
e) Agency

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7. Contract of insurance is contract of

a) Guarantee
b) Indemnity
c) Surety
d) Bailment
e) Agency

Indemnity is compensation paid by one party to another to cover damages, injury or losses. An example of
an indemnity would be an insurance contract, where the insurer agrees to compensate for any damages that the
entity protected by the insurer experiences.

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8. The delivery of goods by one person to another for some specific
purpose is known as

a) Bailment
b) Pledge
c) Hypothecation
d) Mortgage
e) Guarantee

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8. The delivery of goods by one person to another for some specific
purpose is known as

a) Bailment
b) Pledge
c) Hypothecation
d) Mortgage
e) Guarantee

Section 148 of Indian Contract Act 1872 - A ‘bailment’ is the delivery of goods by one person to another for
some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or
otherwise disposed of according to the directions of the person delivering them. The person delivering the
goods is called the ‘bailor’. The person to whom they are delivered is called the ‘bailee’.

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9. In which of the following types of contract, consideration is not
necessary?

a) Partnership
b) Agency
c) Pledge
d) Bailment
e) None of the above

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9. In which of the following types of contract, consideration is not
necessary?

a) Partnership
b) Agency
c) Pledge
d) Bailment
e) None of the above

Contract of agency: Section 185 specifically states that no consideration is necessary to create an agency. Thus,
when a person is appointed as an agent, his appointment is valid even if there is no consideration.
Agency contract may also arise by estoppel, necessity or ratification.

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10. Novation of a Contract means

a) Renewal of original contract

b) Cancellation of Contract
c) Substitution of a new contract in place of original contract
d) Alteration of contract
e) None of the above

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10. Novation of a Contract means

a) Renewal of original contract

b) Cancellation of Contract
c) Substitution of a new contract in place of original contract
d) Alteration of contract
e) None of the above

Novation is the act of replacing a legitimate existing contract with a new contract, where the transfer is
mutually agreed by both parties concerned. The most common use of novations is in company takeovers and
business sales

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