Indian Contract Act 1872 MCQ for CPD-1 exam, Q 51 to 75, Financial Management MCQ

Indian Contract Act 1872 MCQ for CPD-1 exam, Q 51 to 75, Financial Management MCQ

51. An agreement in restraint of trade under section 27 is

(a) valid

(b) voidable

(c) void

(d) unenforceable

Answer C(Sec 27)

52. An agreement restraint of trade is valid under section 27 if relates to

(a) sale of goodwill

(b) mutual adjustment

(c) business contingency

(d) none of the above.

Answer A(Sec 27 Explanation 1)

53. An agreement not to pursue any legal remedy to enforce the rights under section 28 is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

Answer A(Sec 28)

54. An agreement not to pursue legal remedies but to refer the dispute to the arbitrator, under section 28 is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

Answer A(Sec 28 Explanation 1)

55. An agreement to refer the dispute to the arbitrator is valid

(a) in respect of disputes already arisen

(b) in respect of disputes which may arise in future

(c) both (a) & (b)

(d) neither (a) nor (b)

 

Answer A(Sec 28 Explanation 2)

 

56. An agreement by way of wager under section 30 is

(a) void

(b) voidable

(c) valid

(d) unenforceable

Answer A(Sec 30)

57. An agreement in connection with horse- racing under section 30 is

(a) unlawful

(b) void

(c) voidable

(d) valid.

Answer A(Sec 30)

 

58. An agreement in restraint of marriage under section 26 is

(a) void

(b) voidable

(c) valid

(d) unenforceable

Answer A(Sec 26)

 

59. If only a part of the consideration or object is unlawful, the contract under section 24 shall be

(a) valid to the extent the same are lawful

(b) void to the extent the same are unlawful

(c) void as a whole

(d) valid as a whole.

Answer C(Sec 24)

 

60. An agreement shall be void on account of

(a) mistake of fact by one party

(b) mistake of fact by both the parties

(c) mistake of foreign law

(d) both (a) & (b).

Answer D(Sec 20)

 

61. Coercion which vitiates free consent under section 15 is

(a) committing or threatening to commit any act which is forbidden by law

(b) committing or threatening to commit any act which is forbidden by Indian Penal Code

(c) unlawful detaining or threatening to detain any property with an intention to causing any person to enter into an agreement

(d) all the above.

Answer D(Sec 15)

 

62. What is correct of a standard form contract?

(a) it is a valid contract

(b) one party has no choice but to accept & sign the contract

(c) both (a) & (b)

(d) the consent is not a free consent.

Answer (Question not clear)

 

63. Law of contract primarily

(a) specifies the circumstances in which promises are binding on the parties to the contract

(b) lays down certain norms by which the parties are bound

(c) lays down the circumstances under which a promise may be made

(d) all the above.

Answer D(Sec 2)

 

64. Misrepresentation under section 18 means

(a) a positive assertion, in a manner not warranted by the information of the person making it, not true but he believes it to be true

(b) any breach of duty, which gains an advantage to the person committing it, by misleading another to his prejudice

(c) causing a party to make an agreement to make a mistake as to the subject matter of contract

(d) all the above.

Answer D(Sec 18)

 

65. A person is deemed to be in a position to dominate the will of another by undue influence if the mental capacity is affected temporarily or permanently by

(a) reason of age

(b) reason of illness

(c) mental or bodily distress

(d) all the above.

Answer    D(Sec 16 (2)(b)

 

66. An agreement to remain unmarried is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

Answer C(Sec 26)

 

67. A general offer open for world at large can be accepted

(a) by sending a communication of acceptance

(b) by complying with the conditions of offer

(c) by tendering himself to comply the conditions of offer

(d) none of the above.

Answer A(Sec 3)

68. The term consensus ad-idem means

(a) general consensus

(b) reaching an agreement

(c) meeting of minds upon the same thing in( the same sense

(d) all the above.

Answer C (Sec

 

69. Which one of the following does not amount to fraud

(a) suggestion as a fact which is not true, by one who does not believe it to be true

(b) active concealment of a fact

(c) a representation made without knowing it to be false, honestly believing it to be true

(d) a promise made without any intention of performing it.

Answer C (Sec 17 (1) to (5)

 

70. Contract without consideration made in writing & registered and made on account of natural love and affection is

(a) void

(b) voidable

(c) valid

(d) unenforceable.

Answer C(Sec 25 (1))

 

71. Inadequacy of consideration does not make the contract

(a) void

(b) voidable

(c) unenforceable

(d) neither void nor voidable.

Answer D(Sec

 

72. Inadequacy of consideration is relevant in determining the question of

(a) fraud

(b) misrepresentation

(c) undue influence

(d) free consent.

Answer (Sec

73. Agreement without consideration is valid

(a) when made out of love & affection due to near relationship

(b) when made to compensate a person who has already done something voluntarily

(c) when made to pay a time barred debt

(d) all the above.

Answer D(Sec 25)

 

74. A contract based on the happening or non- happening of a future event under section 31 is called

(a) a contingent contract

(b) a wagering contract

(c) a contract marked with uncertainty and hence void

(d) none of the above.

Answer A(Sec 31)

 

75. A contingent contract to do or not to do anything on the happening of an uncertain future event under section 32

(a) is never enforceable

(b) becomes enforceable only on the happening of that event

(c) enforceable since the time of making it

(d) becomes enforceable in the immediate possibility of happening of that event.

Answer B(sec 32)

Indian Contract Act 1872 MCQ 26 to 50