MCQs ON CONTRACT ACT-1872 VALUATION EXAMINATION

MCQs ON CONTRACT ACT-1872

1. What is a contract?

A) An agreement enforceable by law
B) A verbal agreement
C) A social arrangement
D) A promise without consideration
Answer: A

2. Which of the following is NOT a requirement for a valid contract?

A) Offer and acceptance
B) Free consent
C) Written form
D) Legal consideration
Answer: C

3. Consideration must be:

A) Of some value
B) Adequate but need not be equal
C) Always in monetary terms
D) Written down
Answer: B

4. A voidable contract is:

A) Valid until annulled
B) Automatically void
C) Valid in all circumstances
D) Enforceable against both parties
Answer: A

5. The capacity to contract means:

A) Being able to make contracts
B) Being capable of understanding the terms
C) Being of legal age
D) All of the above
Answer: D

6. Which of the following contracts is void?

A) A contract with a minor
B) A contract for the sale of goods
C) A contract with an adult
D) A lease agreement
Answer: A

7. An offer can be revoked:

A) Anytime before acceptance
B) Only after acceptance
C) Only if the offeree agrees
D) Only in writing
Answer: A

8. What is meant by ‘consideration’ in a contract?

A) The money paid
B) The thought process behind a contract
C) Something of value exchanged
D) A written document
Answer: C

9. A contract that cannot be performed is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: B

10. Which of the following is a type of contract that must be in writing?

A) Oral agreements
B) Contracts for the sale of land
C) Service agreements
D) Contracts for goods
Answer: B

11. An agreement made without consideration is:

A) Valid
B) Voidable
C) Void
D) Enforceable
Answer: C

12. The term “capacity to contract” refers to:

A) The ability to create obligations
B) The ability to pay debts
C) The ability to understand a contract
D) All of the above
Answer: D

13. A breach of contract occurs when:

A) One party fails to fulfill their obligations
B) Both parties agree to change terms
C) A contract is formed
D) A contract is void
Answer: A

14. An “invitation to treat” means:

A) A valid offer
B) An invitation for negotiations
C) A binding contract
D) A promise to sell
Answer: B

15. The parties in a contract are:

A) Offeror and offeree
B) Promisor and promisee
C) All of the above
D) None of the above
Answer: C

16. A contract that is enforceable by law is known as:

A) Void contract
B) Voidable contract
C) Valid contract
D) Unenforceable contract
Answer: C

17. Which of the following can terminate an offer?

A) Rejection
B) Revocation
C) Counteroffer
D) All of the above
Answer: D

18. In a unilateral contract, the promise is:

A) Made by one party only
B) Made by both parties
C) Made in writing
D) Made without consideration
Answer: A

19. A contract made under duress is:

A) Valid
B) Voidable
C) Automatically void
D) Enforceable
Answer: B

20. The doctrine of “Privity of Contract” means:

A) Only parties to a contract can enforce it
B) All parties can enforce it
C) Contracts must be in writing
D) Contracts are public documents
Answer: A

21. A performance that is impossible at the time of contract formation is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: B

22. If one party fails to perform their part of a contract, it is considered:

A) Mutual consent
B) Breach of contract
C) Ratification
D) Void
Answer: B

23. A contract made for an illegal purpose is:

A) Void
B) Valid
C) Voidable
D) Enforceable
Answer: A

24. An example of an express contract is:

A) A lease agreement
B) A handshake
C) A verbal agreement without details
D) None of the above
Answer: A

25. A contract that is unenforceable due to lack of formalities is:

A) Void
B) Voidable
C) Valid
D) Unenforceable
Answer: D

26. In which scenario is a minor allowed to enter into a contract?

A) For necessities
B) For luxury items
C) For any reason
D) None of the above
Answer: A

27. If an agreement is made under a mutual mistake, it is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: B

28. A condition subsequent in a contract means:

A) A condition that must be fulfilled for the contract to remain valid
B) A condition that occurs before the contract is made
C) A condition that is implied
D) None of the above
Answer: A

29. The time limit to enforce a contract is defined by:

A) Statute of limitations
B) Duration of the contract
C) Agreement of the parties
D) None of the above
Answer: A

30. Which of the following can be a form of consideration?

A) Money
B) Goods
C) Services
D) All of the above
Answer: D

31. A “material breach” of contract is:

A) A minor violation
B) A significant failure to perform
C) A complete failure
D) None of the above
Answer: B

32. Which of the following contracts is generally required to be in writing?

A) Employment contracts
B) Contracts for sale of real estate
C) Oral agreements
D) Verbal promises
Answer: B

33. An “option contract” allows:

A) One party to buy or sell at a later date
B) A cancellation of the contract
C) Both parties to withdraw
D) None of the above
Answer: A

34. If a contract is formed by misrepresentation, it is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: C

35. A partnership agreement is generally considered:

A) Unilateral
B) Bilateral
C) Void
D) None of the above
Answer: B

36. A contract that imposes obligations on both parties is known as:

A) Unilateral contract
B) Bilateral contract
C) Void contract
D) Express contract
Answer: B

37. If a party to a contract does not have the capacity to contract, the contract is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: B

38. An implied contract is:

A) Formed by actions
B) Always written
C) Voidable
D) None of the above
Answer: A

39. The legal remedy for breach of contract is:

A) Rescission
B) Damages
C) Specific performance
D) All of the above
Answer: D

40. A contract entered into for immoral purposes is:

A) Valid
B) Void
C) Voidable
D) Enforceable
Answer: B

41. The term “ratification” means:

A) Approval of a contract
B) Rejection of a contract
C) Modification of a contract
D) None of the above
Answer: A

42. An “adhesion contract” is:

A) A contract that is mutually agreed upon
B) A one-sided contract presented on a “take it or leave it” basis
C) A bilateral contract
D) A verbal contract
Answer: B