ICA Objective Questions
ICA Objective Questions
PRACTICE TEST
(IMPORTANT MCQs of INDIAN CONTRACT ACT,
1872)
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2. When person reciprocally promise firstly to do certain things which are legal and
secondly to do certain things which are illegal, then
(a) Both sets of promises are void
(b) Both sets of promises are valid
(c) The first set of promise is a contract and the second set is a void agreement
(d) The first set of promise is a void agreement and the second set is a contract.
4. An executed consideration is
(a) Reciprocal promises
(b) An Act done in response to a positive promise
(c) An act done in expectation of proposal
(d) None of these
5. Privity of consideration
(a) Applicable in India
(b) Partly applicable in India
(c) Not at all applicable in India
(d) Either (a) or (b) depends upon the parties to the contract
7. “A voluntary service means a service rendered without any request or promise and
there is a subsequent promise to pay for the same.”
Select the correct option in view of the above statement
(a) Past consideration is no consideration in India
(b) A past voluntary service is adequately covered by the provision in Section 25(2) of the
ICA
(c) A past voluntary service is not covered by the ICA
(d) Only services rendered at request are covered by the ICA
9. A agrees to sell and B to buy a quantity good at a stated price. Here, the consideration
is
(a) Executed
(b) Executory
(c) Neither (a) nor (b)
(d) Partly executed, partly executory
14. The pawnee has the right to retain the goods pledged
(a) For payment of debt, interest and all necessary expenses in respect of the good pledged
(b) For payment of debt other than the debt in respect of goods pledged
(c) For payment of interest and necessary expenses in respect of the goods other than the one
pledged
(d) None of the above
15. Which of the following section of ICA declares that minor is not competent to
contract
(a) Section 2(h)
(b) Section 10
(c) Section 11
(d) Both (b) and (c)
16. A contract signed between two countries, without specifying as to which country’s
law shall govern in case of dispute, the law applicable should be
(a) The law of the country where the proposal was made
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(b) The law of the country where the contract was concluded
(c) The law of the country where the contract is localised
(d) Either (a) or (b) or (c)
17. An acceptance is the assent given to proposal. And it has the effect of converting the
proposal into —
(a) Promise
(b) An agreement
(c) A contract
(d) Reciprocal promise
20. Section 68 of ICA provides for the liability for necessaries supplied to
(a) Insane
(b) Idiot
(c) Child
(d) Person incompetent to contract
22. Which of the following section of ICA uses the expression (words) “Act forbidden by
the Indian Penal Code”
(a) Section 15
(b) Section 16
(c) Section 17
(d) Section 18
24. Which of the following factor may be taken into account in order to determine
whether the contract induced by “undue influence”?
(a) Relation which involves domination
(b) Fiduciary relation
(c) Person in mental distress
(d) Person in all of the above
25. Clayton’s rule concept has been provided under the UCA in
(a) Section 37–39
(b) Section 40–50
(c) Section 59–61
(d) Section 62–67
26. A party cannot _______ if he had the means of discovering the truth with ordinary
diligence
(a) Fraud
(b) Fraud, mistake or coercion
(c) Misrepresentation or fraud by silence
(d) Fraud, misrepresentation, mistake or coercion
27. In which of the following cases, the exception to the doctrine of privity of contract
will not apply?
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29. Damages allowed under Section 73 of the Indian Contract Act are
(a) Liquidated damages
(b) Compensatory damages
(c) Penal damages
(d) None of the above
30. The rescission of a voidable contract may be communicated or revoked in the same
manner as apply to the communication or revocation of
(a) A proposal
(b) An acceptance
(c) Either (a) and (b)
(d) Neither (a) nor (b)
34. A solicitor was employed by the client to prevent removal by the father of the
client’s children from the United Kingdom. The solicitor accordingly notified the
passport agency but failed to renew the notification. The father added children to his
passport and took them away. The mother (client) sued the solicitor.
(a) The mother is not entitled to recover damages as there is no contract
(b) The solicitor’s failure to renew the notification was a breach of contractual duty
(c) The solicitor’s failure to renew the notification leads to mental distress to the client but
there is no breach of contractual duty
(d) The claim is founded on tort not on a contract
35. “For an acceptance, mere mental resolve to accept would not be sufficient, there
must be some external manifestation of the intent by speech, writing or other act.”
It was held by the Supreme Court in
(a) Fazal Ilahi v. East Indian Railway Co.
(b) M. Nanjappa v. Levering
(c) Dugdale v. Lovering
(d) Bhagwan Das v. Girdhari Lal
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39. If a tender was finalised within shorter period than otherwise allowed
(a) It will amount to conditional offer
(b) It will amount to a concluded contract
(c) It will amount to refusal of tender
(d) None of the above
40. Which of the following is not a similarity between an illegal and void agreement
(a) Main transaction void in either case
(b) Nothing can be recovered under either kind of agreement
(c) No action under the main transaction
(d) None of the above
41. X agreed to purchase tendu leaves for three years ending on 31 December 1970, the
terms of the lease providing that it was renewable every year. X was to opt for renewal
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within 15 days prior to December 31 and the leases were to be renewed by issue of order
by the government and acceptance by the department by 31 January next year. X
offered for renewal on 7 December 1968, and it was accepted by the government on 31
January 1969 but despatched on 7 February 1969. X sought to withdraw from the offer
on the ground that the government had not renewed it before 31 January1969.
(a) There was no renewal of lease owing to lapse of time prescribed
(b) X ceased to enjoy the terms of lease from 31 December 1970
(c) There was a fault on the part of the Government, X is entitled to claim
compensation.
(d) The lease stood renewed
42. ‘A’ telegraphed ‘B’ “will you sell your factory, telegraph the lowest cash price.” ‘B’
replied by telegram “lowest price for the factory is Rs. 25 Lakh”. This is
(a) void agreement
(b) voidable contract
(c) no contract
(d) acceptance of proposal
43. Which of the followings is/are exception(s) to the rule of ‘privity of contract’
(a) Covenants running with land
(b) Trust or charge
(c) Acknowledgement or estoppel
(d) all of the above
46. A agrees to sell a house worth Rs. 10 lakh for Rs. 1 lakh. A’s consent to the
agreement was freely given. The agreement is
(a) a voidable contract
(b) void owing to inadequacy of the consideration
(c) a perfectly valid contract
(d) not a valid contract
47. The ‘Doctrine of Privity of Contract” was for the first time applied in
(a) Adler V Dickson
(b) Dutton V Poole
(c) Tweddle V Atkinson
(d) Dunlop Pneumatic Tyre Co. V Selfridge & Co.
49. Where a company enters into a contract beyond the scope of its Memorandum of
Association, such a contract is said to be
(a) intra vires
(b) ultra vires
(c) inter vires
(d) voidable contract
50. W had been served with summons requiring him to give evidence before a court of
law. D, who was party to the case, gave him a promissory note to pay a sum of money
for his trouble. The promissory note was
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(a) Valid
(b) Voidable
(c) Void
(d) Valid for good consideration
53. The law declared by the Privy Council in Mohoribibee case that a minor’s
agreement is
(a) absolutely void
(b) Valid
(c) Voidable
(d) illegal
54. G, a minor, was allotted by P, a film producer, the role of an actress in a particular
film. The agreement was made with her father. P, subsequently allotted that role to
another artiste and terminated the contract with G’s father
(a) G could have sued P
(b) G’s father could have sued P
(c) Neither G nor her father could have sued P
(d) either G or her father could have sued P
57. The Bench which heard the case of Mohori Bibee V Dharamodas Ghose, consisted
of
(a) 7 Judges
(b) 6 Judges
(c) 5 Judges
(d) 3 Judges
58. According to section 12 of Indian Contract Act, 1872, who among the following
is/are incompetent to contract
(a) person disqualified from contracting by any law
(b) minor
(c) person of unsound mind
(d) all of the above
59. A property worth about Rs. 5 lakh was agreed to be sold by a person for Rs. 50,000/-
only. His mother proved that he was a congenital idiot, incapable of understanding the
transaction, hence sale is void. In this context which one of the following is correct?
(a) mother would succeed
(b) mother would not succeed
(c) agreement being voidable, therefore, could be avoided by the person
(d) mother had to act in accordance with the terms of contract
60. A contract which was formed without the free consent of the parties, would be
(a) Void
(b) Void ab-initio
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(c) Voidable
(d) Voidable at the option of party whose consent was not free
62. A, a financial institution, lends money to a borrower at high rate of interest, when
there is acute scarcity of liquidity in the market. Such high rate of interest renders the
agreement of loan
(a) void
(b) Valid
(c) Voidable
(d) illegal
64. Which among the following relationships can be termed as fiduciary relationship
(a) Trustee and cestui que trust
(b) spiritual adviser and his devotee
(c) doctor and patient
(d) all of the above
66. In an action to avoid a contract on the ground of undue influence the plaintiff has to
prove
(a) the other party was in a position to dominate his will
(b) the other party has actually used his influence to obtain plaintiff’s consent
(c) both (a) and (b)
(d) either (a) or (b)
69. X and Y being traders, enter upon a contract. X has private information of change
in prices which would affect Y’s willingness to proceed with the contract
(a) X is not bound to inform Y
(b) X is bound to inform Y
(c) X has duty to speak
(d) Y may claim damages caused due to non-disclosure of information by X
71. Who made and supervised the final revision of the draft and moved the Indian
Contract Bill
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72. Who said “law of contract is that branch of law which determines the circumstances
in which a promise shall be legally binding on the person making it”
(a) Lord Atkin
(b) Powell
(c) Winfield
(d) Anson
74. Which of the following provisions of the Indian Contract Act, 1872 deals with
“Mirror Rule”
(a) Section 4
(b) Section 5
(c) Section 7
(d) Section 13
75. A offered to sell his watch to B for Rs. 5000/-. However, B replied that he can
purchase A’s watch for Rs. 3000/-. B’s reply amounts to
(a) Counter proposal
(b) Cross proposal
(c) Linear proposal
(d) Constructive proposal
76. An uncle, offered to buy a horse from his nephew and said “if I hear no more about
him, I shall consider that horse is mine”. The nephew did not answer, but asked the
auctioneer to sell that particular horse. The auctioneer sold the horse by mistake.
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79. A release deed executed by a wife and son in consequence of a threat of committing
suicide would fall within the ambit of
(a) Section 16
(b) Section 15
(c) Section 18
(d) none of the above
80. In which case the difference between legitimate persuasion and undue influence had
been described
(a) Chunni Kaur V Rup Singh
(b) A.A Singh V Union of India
(c) Both (a) & (b)
(d) Lingo Bhimrao Naik v Dattatraya Shripad Jamadagni
83. The presumption as provided under section 16(3) of Indian Contract Act, 1872, is
(a) discretionary
(b) mandatory
(c) obligatory
(d) elective
88. Select the correct statement in respect of the concept of fraud applied under Section
17 of Indian Contract Act, 1872, vis-à-vis section 12 of Hindu Marriage Act, 1955
(a) the concept of fraud is used in same sense under both legislations
(b) the concept of fraud is used in wider sense under Contract Act, 1872 than used under
HMA, 1955
(c) the concept of fraud is used in narrower sense under Contract Act, 1872 than used under
HMA, 1955
(d) both laws have different and independent meaning of the concept of fraud as per their
own objective.
89. A student while filing University Examination Form did not mention the fact of his
shortage of attendance, although he knew that he was short of attendance.
(a) the student cannot be held liable for fraud
(b) the student may be held liable for fraud
(c) this is material fact and its concealment amounts to fraud
(d) both (b) and (c)
1. In fraud the person making the suggestion does believe the facts to be true
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2. In misrepresentation the person making the suggestion does not believe the facts to be
true
(a) 1 only
(b) 2 only
(c) both (a) and (b)
(d) neither (a) nor (b)
92. In Derry V Peek, Lord Herschell held that fraud is proved when it is shown that a
false representation has been made
(a) recklessly whether it is true or false
(b) knowingly
(c) without belief in its truth
(d) either (a) or (b) or (c)
93. Who said “Public Policy is an unruly horse and when you once astride it, you never
know where it will carry you”.
(a) Julius stone
(b) Anson
(c) Justice Burrough
(d) Lord Summer
95. A positive assertion of act may be termed as misrepresentation when such fact is
made or adopted by a party to a contract and is untrue and such assertion is made
(a) fraudulently
(b) carelessly
(c) innocently
(d) either (a) or (b) or (c)
96. As per the provisions of Section 18 of Indian contract Act, 1872, who among the
following is entitled to obtain relief
(a) persons to whom the representation is directly made and their principals
(b) persons to whom the representor intended the representation to be passed on
(c) members of a class at which the representation was directed
(d) all of the above
97. A list was circulated amongst the bidders in an auction of liquor shops, which
showed the places where different existing liquor shops were located. Relying upon a
statement about location of a particular shop six miles away, the plaintiff purchased the
licence of one shop. The statement had not mentioned that that other shop had been
relocated closer to the shop of the plaintiff. It was a case of
(a) fraud
(b) deceit
(c) misrepresentation
(d) none of the above
ANSWER KEY:
1. C
2. C
3. C
4. B
5. C
6. C
7. B
8. B
9. B
10. B
11. D
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12. A
13. D
14. A
15. B
16. C
17. A
18. C
19. D
20. D
21. A
22. A
23. D
24. D
25. C
26. C
27. B
28. D
29. B
30. A
31. B
32. D
33. D
34. B
35. D
36. D
37. A
38. C
39. D
40. D
41. D
42. C
43. D
44. B
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45. A
46. C
47. B
48. A
49. B
50. C
51. B
52. D
53. A
54. C
55. B
56. A
57. C
58. C
59. A
60. D
61. D
62. B
63. D
64. D
65. C
66. C
67. A
68. B
69. A
70. C
71. B
72. D
73. B
74. C
75. A
76. C
77. A
78. C
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79. B
80. D
81. B
82. A
83. B
84. C
85. C
86. D
87. C
88. B
89. A
90. D
91. B
92. D
93. C
94. A
95. D
96. D
97. C
98. B
99. A
100. D