Government Law College

Contract Law Sample MCQ’s

The Indian Contract Act, 1872
Part - I
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1. When is the communication of proposals, the acceptance of proposals and the
revocation of proposals deemed to be made?
a. Only on clear verbal communication of such proposal, acceptance or revocation
b. By any act or omission of the party by which he intends to communicate such
proposal, acceptance or revocation or has the effect of communicating it
c. Only when the proposal, acceptance or revocation of the proposal is recorded in
writing
d. Only when the proposal, acceptance or revocation of the proposal is received and
understood by the other party receiving the information
ANSWER: (c)
2. When is the communication of a proposal complete?
a. When it comes to the knowledge of the person to whom it is made
b. Only when the proposal, acceptance or revocation of the proposal is recorded in
writing
c. When the other party gives his assent or dissent to the proposal
d. Only when a clear verbal communication of such proposal is made
ANSWER: (a)
3. When can a proposal be revoked?
a. Once a proposal is made, it cannot be revoked
b. Any time before or after the communication of acceptance is complete
c. Any time before the communication of its acceptance is complete as against the
proposer, but not afterwards
d. Any time before the proposal comes to the knowledge of the other party, but not
afterwards
ANSWER: (c)
4. A proposal cannot be revoked:
a. By the communication of notice of revocation by the proposer to the other party
b. By the failure of the acceptor to fulfil a condition precedent to acceptance
c. By the lapse of the time prescribed in such proposal for its acceptance
d. By an act involving moral turpitude of the proposer, whether related to the proposal or
otherwise
ANSWER: (d)

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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5. Which of the following is not a necessary feature to convert a proposal into a
promise?
a. The acceptance must be absolute
b. The acceptance must be within the prescribed time limit
c. The acceptance must be unqualified
d. The acceptance must be expressed in some usual and reasonable manner
ANSWER: (b)
6. When is the promise said to be express?
a. When the proposal or acceptance of any promise is made in words
b. When the proposal or acceptance of any promise is made through visual
representation
c. When the proposal or acceptance of any promise is made in any way other than words
d. When the proposal or acceptance is made by either in words or in any way other than
words
ANSWER: (a)
7. Which of the following feature is not essential for a contract?
a. It should be in writing only
b. Free consent of parties competent to contract
c. Lawful consideration and with a lawful object
d. It should not be declared void expressly
ANSWER: (a)
8. Who among the following is not competent to contract?
a. Person who has acquired the age of
b. Person who has acquired the age of
c. Person is of sound mind
d. Person who is disqualified from contracting by any law
ANSWER: (b)
9. What is consent under the Indian Contract Act?
a. When acceptance of proposal is made by the party to whom the proposal is made
b. When the acceptance is made by another person other than the person to whom the
proposal is made
c. When they agree upon the same thing in the same sense

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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d. When both the parties agree upon a thing in the way it is understood by them
ANSWER: (c)
10. Which of the following is not a necessary feature for free consent?
a. When the consent is not caused by coercion
b. When the consent is not caused by undue influence
c. When the consent is not caused by mistake
d. When the consent is not caused by misunderstanding
ANSWER: (d)
11. The Law of Contract is nothing but
a. A child of commercial dealing
b. A child of religion
c. A child of day-to-day politics
d. A child of economics
ANSWER: (a)
12. The Contract Act came into force
a. from 1st September, 1972
b. before 1st September, 1882
c. from 1st September, 1872
d. after 1st September, 1872
ANSWER: (c)
13. An agreement consists of reciprocal promises between at least
a. Four parties
b. Six parties
c. Three parties
d. Two parties
ANSWER: (d)
14. Contractual rights and duties are created by
a. State
b. Statute
c. Parties
d. Custom or usage
ANSWER: (c)

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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15. In India, the express provisions of the Contract Act applies to
a. Hindus
b. Female
c. Businessman
d. All of the above
ANSWER: (d)
16. Every promise and every set of promise forming the consideration for each other is
a/an
a. Contract
b. Agreement
c. Offer
d. Acceptance
ANSWER: (b)
17. A promises to deliver his watch to B and, in return, B promises to pay a sum of Rs
2000 This is a/an
a. Agreement
b. Proposal
c. Acceptance
d. Offer
e. ANSWER: (a)
18. Contract is defined as an agreement enforceable by law; vide Section ____
of the Indian Contract Act
a. 2(e)
b. 2(f)
c. 2(h)
d. 2(i)
ANSWER: (c)
19. A sells his car to B A has a right to recover the price of the car from B This right is a
a. Right is rem
b. Right is personam
c. Right in rem as well as right in personam
d. Moral right

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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ANSWER: (b)
20. A owns a residential flat He is entitled to a quiet possession and enjoyment of his
property This is called
a. Rights in personam
b. Rights in rem
c. Moral right
d. There is no right at all
ANSWER: (b)
21. A owes Rs 1 lakh to B. B is entitled to recover this amount from A This is called
a. Rights in personam
b. Rights in rem
c. Constitutional right
d. There is no right at all
ANSWER: (a)
22. A contract creates
a. Rights in personam
b. Rights in rem
c. No obligations
d. Only obligations and no rights
ANSWER: (a)
23. Valid contracts
a. Are made by free consent
b. Are made by competent parties
c. Have lawful consideration and lawful object
d. All of the above
ANSWER: (d)
24. A lends Rs 10 lakh to B for a year After one year A's right to recover the money from
B is a
a. Right in rem
b. Right in personam
c. Moral right
d. Civil right

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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ANSWER: (b)
25. A has bought a house for Rs 50,000 Which of the following right is available to A
after the purchase?
a. He has a right against the seller to have a quiet possession of the house and enjoy in it
b. He has a right against the whole world to have a quiet possession of the house and
enjoy in it
c. He has a moral right over the house
d. He has a right to live in the house but cannot sell
ANSWER: (b)
26. Agreement to murder a person
a. Cannot be enforceable by law
b. Is valid in law
c. Is invalid for want of consideration
d. Has no consensus ad idem
ANSWER: (a)
27. A invites B for his son's wedding B accepts the invitation In this case, there is an
agreement but no contract since
a. There is no consideration
b. There is no intention to create legal relationship
c. There is no written document
d. There is no formal acceptance of the offer
ANSWER: (b)
28. A invites B for coffee in Coffee day Restaurant and B accepts the invitation On the
appointed date, B goes there but A is does not come In this case
a. B has no remedy against A
b. B has to wait for another invitation from A
c. B can sue A for not honouring his words
d. A has to invite B again, to keep the promise
ANSWER: (c)
29. A promise to give Rs 5,000 per month pocket money to his son B If A does not give
the pocket money
a. B can sue his father

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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b. B has no remedy against A
c. B can accept a lower pocket money also
d. B has to give Rs 5,000 to his father
ANSWER: (b)
30. A contract creates
a. Rights and obligations of the parties to it
b. Obligations of the parties to it
c. Mutual understanding between the parties to it
d. Mutual lawful rights and obligations of the parties to it
ANSWER: (d)
31. In agreements of a purely domestic nature, the intention of the parties to create legal
relationship is
a. To be proved to the satisfaction of the court
b. Presumed to exist
c. Required to the extent of consideration
d. Not relevant at all
ANSWER: (a)
32. An agreement is valid
a. If it creates legal and social obligations of the parties
b. If it creates rights of a party
c. If it is written on a piece of paper and signed by the parties
d. If it creates legally binding right and obligations of the parties to it
ANSWER: (d)
33. Voidable contract is one
a. Which is lawful
b. Which is invalid
c. Which is valid as long as it is not avoided by the party entitled to do so
d. Which is unlawful
ANSWER: (c)
34. When the contract is perfectly valid but cannot be enforced because of certain
technical defects This is called
a. Unilateral contract

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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b. Bilateral contract
c. Unenforceable contract
d. Void contract
ANSWER: (c)

35. ________ is without any legal effect and cannot be enforced in a Court of Law
a. Valid contract
b. Void contract
c. Voidable contract
d. Unenforceable contract
ANSWER: (b)
36. According to provisions of the Indian Contract Act, 1872 void agreement and void
contract is the same
a. True
b. False
c. Partly true
d. Partly false
ANSWER: (b)
37. A void agreement is void-ab-initio but a void contract is not void-ab- initio
a. True
b. False
c. Partly true
d. Partly false
ANSWER: (a)
38. A contract needs to be written, registered and signed by the parties and witnessed
a. If any party wishes so
b. If the Contract Act directs so
c. If any other act provides so
d. If the consideration large amount
ANSWER: (c)
39. A and B enter into a contract to marry each other Before the time fixed for the
marriage, A goes mad The contract becomes
a. void

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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b. illegal
c. valid
d. voidable
ANSWER: (a)

40. _______ is forbidden by law

a. Valid contract
b. Illegal agreement
c. Voidable contract
d. Unenforceable contract
ANSWER: (b)
41. A makes a contract with B to beat his business competitor This is an example of
a. valid contract
b. illegal agreement
c. voidable contract
d. unenforceable contract
ANSWER: (b)
42. _________ is made by words spoken
a. Express contract
b. Implied contract
c. Tacit contract
d. Unlawful contract
ANSWER: (a)
43. ________ is made by words written
a. Express contract
b. Implied contract
c. Tacit contract
d. Unlawful contract
ANSWER: (a)
44. A appoints B as his agent, by way of a power of attorney This is an example of
a. express contract
b. implied contract
c. tacit contract

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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d. unlawful contract
ANSWER: (a)

45. _____________ implies a contract though the parties never expressed their intention
to enter into a contract
a. Express contract
b. Implied contract
c. Electronic contract
d. Unlawful contract
ANSWER: (b)
46. Where a contract has to be inferred from the conduct of parties, it is called
a. express contract
b. implied contract
c. tacit contract
d. unlawful contract
ANSWER: (b)
47. Drawing cash from ATM, sale by fall of hammer at an auction sale, etc, are example
of
a. express contract
b. implied contract
c. tacit contract
d. unlawful contract
ANSWER: (b)

48. ____________ is a one-sided contract in which only one party has to perform his
promise or obligation
a. Void contract
b. Illegal agreement
c. Unilateral contract
d. Bilateral contract
ANSWER: (c)
49. An agreement is
a. enforceable by law if it meets the requirements of the law of the land

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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b. enforceable by law if any one party to it wants
c. enforceable against the law
d. enforceable by law if it is made by competent parties
ANSWER: (a)
50. Where the obligation in a contract is outstanding on the part of both parties, it is called
a. void contract
b. illegal agreement
c. unilateral contract
d. bilateral contract
ANSWER: (d)
51. Where a particular type of contract is required by law to be in writing and
registered, it must comply with the necessary formalities as to writing, registration
and attestation Otherwise, such a contract is
a. void contract
b. illegal agreement
c. valid contract
d. unenforceable contract
ANSWER: (d)
52. All illegal agreements are void; but all void agreements are not illegal
a. True
b. Partly true
c. False
d. None of the above
ANSWER: (a)
53. An offer and its acceptance is the basic requirement of an agreement and as per this
requirement an offer by one party
a. should be made to the other who is related to him
b. may also be made to himself
c. should be made to another who may or may not be related to him
d. should be made to another before the Registrar
ANSWER: (c)
54. According to enforceability, the contracts may be classified as

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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a. valid contracts
b. void contracts
c. voidable contracts
d. all of the above
ANSWER: (d)
55. In social agreements usual presumption is
a. That the parties do not intend to create social relations
b. That the parties intend to perform them
c. That the parties do not intend to make legal and social relations
d. That the parties do not intend to create legal relations between them
ANSWER: (d)
56. A promised to marry B Later on B died This contract of marriage
a. becomes void
b. is void from very beginning
c. is valid
d. is illegal now
ANSWER: (a)
57. An implied contract is one which comes into existence on account of
a. conduct of the parties
b. non-availability of a paper for writing
c. inability of the parties to write or speak
d. directions given by a court
ANSWER: (a)
58. A contract in which, under the terms of a contract, nothing remains to be done by
either party is known as
a. executed contract
b. executory contract
c. unilateral contract
d. none of the above
ANSWER: (a)
59. A contract in which, under the terms of a contract, one or both the parties have still
to perform their obligations in future is known as

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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a. executed contract
b. executory contract
c. unilateral contract
d. none of the above
ANSWER: (b)
60. Contracts classified on the basis of performance are
a. executed contracts
b. executory contracts
c. partly executed or partly executory contracts
d. all of the above
ANSWER: (d)
61. Express contract means a contract made by
a. words either spoken or written
b. documents
c. both words and documents
d. all of the above
ANSWER: (d)
62. Which of the following is not an essential of a valid contract?
a. Agreement
b. Adequate consideration
c. Lawful Object
d. Not barred by law
ANSWER: (b)
63. A contract will still be a valid contract if it is
a. Opposed to public policy
b. In restraint of marriage
c. In restraint of Trade
d. Without adequate consideration
ANSWER: (d)
64. The codified law for the law of Contract in India is
a. Indian Contract Act,1872
b. Indian Contract Act,1973

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The Indian Contract Act, 1872
Part - I
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c. Indian Contract Act,1992
d. Indian Contract Act, 1901
ANSWER: (a)
65. A proposal upon acceptance becomes a
a. Contract
b. A promise
c. An agreement
d. Both (b) and (c)
ANSWER: (b)
66. The acceptance of a proposal should be
a. Expressly given
b. Impliedly given
c. Given by consent
d. All of the above
ANSWER: (d)
67. The consent given will be considered to be valid consent if there is
a. Coercion
b. Undue influence
c. Free consent
d. Misrepresentation
ANSWER: (c)
68. The rights concerning a contract are decided by
a. Parties to the contract
b. Indian Contract Act
c. Both (a) and (b)
d. None of the above
ANSWER: (a)
69. The remedy of compensation given in the case of breach of contract is given under
which section of The Indian Contract Act?
a. Section 73
b. Section 115
c. Section 79

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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d. Section 69
ANSWER: (a)
70. Which of the following maxims is not related to the law of Contract?
a. Consensus ad idem
b. Assentio mentum
c. Ex nudo pacto non oritur action
d. Actus Non Facit Reum Nisi Mens Sit Rea
ANSWER: (d)
71. A void contract is a contract which
a. Is not enforceable by law
b. Does not have reasonable terms
c. Declared void by the Indian contract act
d. Both (a) and (c)
ANSWER: (d)
72. An agreement consists of reciprocal promises between at least
a. four parties
b. six parties
c. three parties
d. two parties
ANSWER: (d)
73. Every promise and every set of promise forming the consideration for each other is
a/an
a. contract
b. agreement
c. offer
d. acceptance
ANSWER: (b)
74. Contract is defined as an agreement enforceable by law; vide Section _____ of the
Indian Contract Act.
a. Section 2(e)
b. Section 2(f)
c. Section 2(h)

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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d. Section 2(i)
ANSWER: (c)
75. In agreements of a purely domestic nature, the intention of the parties to create legal
relationship is
a. To be proved to the satisfaction of the court.
b. Presumed to exist.
c. Required to the extent of consideration.
d. Not relevant at all.
ANSWER: (a)
76. A makes a contract with B to beat his business competitor. This is an example of
a. Valid contract.
b. Illegal agreement.
c. Voidable contract.
d. unenforceable contract
ANSWER: (b)
77. Which of the following legal statement is incorrect?
a. An agreement enforceable by law is a contract [Section 2]
b. All agreements are contracts [Section 10]
c. A proposal when accepted becomes a promise [Section 2]
d. Every promise and every set of promise forming the consideration for each other is an
agreement [Section 2(e)]
ANSWER: (a)
78. Agreement the meaning of which is uncertain is
a. Void
b. Valid
c. Voidable
d. Illegal Answer:
ANSWER: (a)
79. _________ is a one-sided contract in which only one party has to perform his promise
or obligation.
a. Void contract
b. Illegal agreement

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Contract Law Sample MCQ’s
The Indian Contract Act, 1872
Part - I
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c. Unilateral contract
d. Bilateral contract
ANSWER: (c)
80. All Contracts are __________.
a. Offer
b. Agreement
c. Acceptance
d. Transaction
ANSWER: (b)
81. A/an ________ is every Promise and every set of promises, forming consideration for
each other.
a. Offer
b. Agreement
c. Acceptance
d. Transaction
ANSWER: (b)
82. Every agreement and promise enforceable by law is _________.
a. Offer
b. Contract
c. Acceptance
d. Consideration
ANSWER: (b)
83. As per section 2(e) of the Indian Contract Act, “Every Promise and every set of
promise forming the consideration for each other is a/an
a. Contract
b. Agreement
c. Offer
d. Acceptance
ANSWER: (b)
84. A promises to deliver his watch to B and, in return, B Promise to pay a sum of `
2,000. There is said to be a/ an
a. Agreement

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The Indian Contract Act, 1872
Part - I
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b. Proposal
c. Acceptance
d. Offer
ANSWER: (a)
85. For an acceptance to be valid, it must be
a. Partial & qualified
b. Absolute & unqualified
c. Partial & unqualified
d. Absolute & qualified
ANSWER: (b)
86. Which of the following is false? An offer to be Valid must
a. Contain a term the non- compliance of which would amount to acceptance.
b. Intend to create legal relations.
c. Have certain and unambiguous terms.
d. Be communicated to the person to whom it is made.
ANSWER: (a)
87. Over a cup of coffee in a restaurant, X Invites Y to dinner at his house on a Sunday. Y
hires a taxi and reaches X’s house at the appointed time, but x fails to perform his
promise. Can Y recover any damages from X?
a. Yes, as y has suffered
b. No, as the intention was not to create legal relation.
c. Either (a) or (b)
d. None of these.
ANSWER: (b)
88. Which one of the following has the correct sequence?
a. Offer, acceptance, consideration, offer
b. Offer, acceptance , consideration, contract
c. Contract, acceptance, consideration, offer.
d. Offer, consideration, acceptance, contract.
ANSWER: (b)
89. In Commercial and business agreements, the intention of the parties to create legal
relationship is

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The Indian Contract Act, 1872
Part - I
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a. Presumed to exist
b. To be specifically expressed in writing
c. Not relevant or all
d. Not applicable.
ANSWER: (a)
90. Offer implied from conduct of parties or from circumstances of the case is called
__________.
a. Implied offer
b. Express offer
c. General offer
d. Specific offer
ANSWER: (a)
91. An offer is revoked
a. By the death or insanity of the proposer
b. By Lapse of time
c. By Communication of notice of revocation
d. All of these
ANSWER: (d)
92. An acceptance on telephone should be
a. Heard by the offeror
b. Audible to the offeror
c. Understood by the offeror
d. All of the above.
ANSWER: (d)
93. Consideration in a contract:
a. May be past, present or future
b. May be present or future only
c. Must be present only (d)
d. Must be future only.
ANSWER: (a)
94. Agreement without consideration is valid, when made
a. Out of love and affection due to near relationship

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The Indian Contract Act, 1872
Part - I
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b. To pay a time barred debt
c. To compensate a person who has already done something voluntarily
d. All of the above
ANSWER: (d)
95. If only a part of the consideration or object is unlawful, the Contract is
a. Valid to the extent the same are lawful
b. Void to the extent the same are unlawful
c. Valid as a whole
d. Void as a whole.
ANSWER: (d)
96. The expression “Privity of contract” means
a. A Contract is Contract between the parties only
b. A Contract is a private document
c. Only private documents can be contracts
d. The contacts may be expressed in some usual and reasonable manner.
ANSWER: (a)
97. Under the Indian Contract Act, a third person
a. Who is the beneficiary under the Contract can sue
b. From whom the consideration has proceeded can sue
c. Cannot sue even if the consideration has proceeded from him.
d. Cannot sue at all for want of privity of contract.
ANSWER: (a)
98. Which of the following is not competent to Contract?
a. A minor
b. A person of unsound mind
c. A person who has been disqualified from contracting by some Law
d. All of these
ANSWER: (d)
99. “Consensus – ad – idem” means ___________.
a. General Consensus
b. Meeting of minds upon the same thing in the same sense
c. Reaching an agreement

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The Indian Contract Act, 1872
Part - I
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d. Reaching of contract
ANSWER: (b)

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