Indian Contract Act Law 100 MCQ With Free Exam SET:-1

Q61. Creditor is a person

(A) To whom the guarantee is given
(B) Who gives the guarantee
(C) In respect of whose default the guarantee is given
(D) None of the above

Answer: To whom the guarantee is given

Q62. Which of the following deals with “Continuing guarantee” in the Indian Contract Act, 1872 ?

(A) Section 129
(B) Section 126
(C) Section 123
(D) Section 130

Answer: Section 129

Q63. Where one of the parties is under a mistake as to matter of fact the contract is

(A) Valid
(B) Void
(C) Voidable
(D) Illegal

Answer: Valid

Q64. A contract with B to pay B Rs. 1,000 if he fails to pay B Rs. 500 on that day.

(A) B is entitled to recover form A such compensation, not exceeding Rs. 1,000, as the Court considers reasonable
(B) B is entitled to recover form A such compensation, not exceeding Rs. 2,000, as the Court considers reasonable
(C) B is entitled to recover form A such compensation, not exceeding Rs. 3,000, as the Court considers reasonable
(D) None of these

Answer: B is entitled to recover form A such compensation, not exceeding Rs. 1,000, as the Court considers reasonable

Q65. Whether all agreements made without consideration are void ?

(A) No
(B) Yes
(C) No, if permIssIon from court is obtained
(D) None of the above

Answer: No

Q66. 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 and B
(D) Neither A nor B

Answer: Both A and B

Q67. A frustration of contract entails if the performance is

(A) Commercially impossible
(B) Restricted by Government rules & regulations
(C) Destruction of subject matter
(D) All of the above

Answer: Destruction of subject matter

Q68. A contract caused by mistake of law not in force in India:

(A) Is void
(B) Is voidable
(C) Has the same effect as though it was caused by a mistake of fact
(D) None of the above

Answer: Has the same effect as though it was caused by a mistake of fact

Q69. Where A a tenant, pays the property tax on behalf of owner B, who is bound to pay it, A is

(A) Entitled to be reimbursed by B
(B) Not entitled to reimbursed by B
(C) Himself have to bear such tax
(D) Both A and B have to bear such tax equally

Answer: Entitled to be reimbursed by B

Q70. Read Assertion (A) and Reason (R) and answer using given below:

Assertion (A): Compensation is recoverable for any loss or damage which the parties knew at the time of the contract as unlikely to result from the breach of the contract.

Reason (R): Because above rule is laid down in Hadley v. Baxendale case.

(A) Both (A) and (R) are correct and (R) is correct reason for (A)
(B) Both (A) and (R) are wrong
(C) (A) is right, but (R) is wrong
(D) (R) is right, but (A) is wrong

Answer: Both (A) and (R) are wrong