Question 1

As a general rule, an agreement made without consideration is;
A)Void
B)Voidable
C)Valid
D)Unlawful

Accepted Answer

An agreement without consideration is generally considered void, meaning it has no legal effect, because consideration is a fundamental element required for a contract to be enforceable.

Question 2

A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A's consent was obtained by coercion. Here, the agreement is;
A)Void
B)Valid
C)Voidable
D)Unlawful

Accepted Answer

The agreement is voidable because A's consent was obtained by coercion, which means A has the option to either enforce or void the contract.

Question 3

An agreement made with free consent to which the consideration is lawful but inadequate is;
A)Void
B)Valid
C)Voidable
D)Unlawful

Accepted Answer

The adequacy of consideration is not a criterion for the validity of an agreement as long as it is lawful and made with free consent. Therefore, an agreement with lawful but inadequate consideration is still valid.

Question 4

Which of the following persons are not competent to contract?
A)Minors
B)Persons of unsound mind
C)Persons disqualified by law
D)All of these

Accepted Answer

All of these categories (minors, persons of unsound mind, and persons disqualified by law) are considered not competent to enter into contracts as per general legal principles, making them unable to legally bind themselves in contractual agreements.

Question 5

For entering into a contract, a minor is a person who has not completed the age of;
A)16 years
B)18 years
C)20 years
D)21 years

Accepted Answer

In most jurisdictions, a minor is legally defined as a person under the age of 18. This age threshold is commonly used to determine the legal capacity for entering into contracts, among other legal rights and responsibilities.

Question 6

A contract with the minor, which is beneficial for him, is;
A)Void ab initio
B)Voidable
C)Valid
D)Illegal

Accepted Answer

Contracts that are beneficial to the minor are generally considered valid because they are made for the minor's benefit, such as contracts for necessities or educational purposes.

Question 7

Which of the following persons do not fall under the category of persons of unsound mind?
A)Idiot
B)Lunatics
C)Drunken
D)Alien

Accepted Answer

Aliens are not classified under the category of persons of unsound mind. The term "alien" refers to a person who is a foreigner or not a citizen of the country in question, which is unrelated to their mental state.

Question 8

Which of the following elements does not affect the free consent of the parties.
A)Coercion
B)Fraud
C)Incompetency
D)Undue influence

Accepted Answer

Incompetency does not affect the free consent of the parties in a contract; rather, it pertains to the legal capacity of a party to enter into a contract. Coercion, fraud, and undue influence directly impact the free consent of the parties involved.

Question 9

When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;
A)Void
B)Voidable
C)Valid
D)Illegal

Accepted Answer

When the consent of a party is obtained by coercion, undue influence, fraud, or misrepresentation, the contract is voidable at the option of the party whose consent was so obtained. This means the affected party can choose to either enforce or void the contract.

Question 10

A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B's consent is obtained by
A)A undue influence
B)Fraud
C)Coercion
D)None of these

Accepted Answer

B's consent is obtained by coercion because A is using a threat to kill B if he does not comply with the demand to sell his scooter, which is a clear example of coercion as defined in legal terms.

Question 11

When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of
A)Either party to the agreement
B)A party whose consent was so obtained
C)A party who obtained the consent
D)None of these

Accepted Answer

An agreement is voidable at the option of the party whose consent was obtained by coercion, as they were compelled into the agreement against their free will.

Question 12

When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;
A)Coercion
B)Undue influence
C)Fraud
D)Misrepresentation

Accepted Answer

Undue influence occurs when one party is in a position to dominate the will of another and uses that superior position to obtain the consent of the weaker party.

Question 13

Which of the following acts does not fall under the categories of fraud?
A)Intentional false statement of facts
B)Active concealment of facts
C)Innocent false statements
D)Promise made without intention to perform

Accepted Answer

Fraud involves intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Innocent false statements, where there is no intent to deceive, do not constitute fraud.

Question 14

Where the consent of a party is obtained by misrepresentation, the contract is;
A)Valid
B)Void
C)Voidable
D)Illegal

Accepted Answer

When consent in a contract is obtained by misrepresentation, the contract is considered voidable at the option of the party whose consent was so obtained. This means the affected party can choose to either affirm the contract or have it voided.

Question 15

Which of the following statement is false?
A)A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a contract.
B)A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering the truth with ordinary means
C)In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract
D)A party who affirms the contract , can also change his option afterwards if he so decides

Accepted Answer

A contract becomes voidable at the option of the party whose consent was caused by fraud or misrepresentation. Once the aggrieved party chooses to affirm the contract, they typically cannot later decide to rescind it. This choice is generally considered final, to maintain contractual certainty and fairness.

Question 16

Where the consent of both the parties is given by mistakes, the contract is;
A)Void
B)Valid
C)Voidable
D)Illegal

Accepted Answer

When the consent of both parties is given by mistake, the contract is considered void because there is no meeting of the minds or mutual agreement on the same thing in the same sense, which is essential for a valid contract.

Question 17

As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;
A)Void
B)Valid
C)Voidable
D)Illegal

Accepted Answer

According to Section 22, if the mistake is unilateral (i.e., made by only one party), the contract remains valid. This is because mutual mistake is required to void a contract under Section 20.

Question 18

A contract made by mistake about Indian Law, is;
A)Void
B)Valid
C)Voidable
D)Illegal

Accepted Answer

A contract made by mistake about Indian Law is considered valid. The Indian Contract Act, 1872, does not specifically provide for contracts made under a mistake of law to be void or voidable. Generally, a mistake of law is not considered a valid defense to avoid obligations under a contract.

Question 19

A contract made by mistake about some foreign law, is;
A)Void
B)Valid
C)Voidable
D)Illegal

Accepted Answer

A contract made by mistake about some foreign law is void because the parties are not in agreement about the terms of the contract.

Question 20

A mistake as to law not in force in India has the same effect as;
A)Mistake of fact
B)Mistake of Indian Law
C)Fraud
D)Misrepresentation

Accepted Answer

A mistake as to a law not in force in India is treated similarly to a mistake of fact, allowing for the possibility of contract voidability or other legal remedies, unlike a mistake of Indian law, which is generally not excusable.

Quiz 3: Contract Law and Consideration: Understanding Free Consent and Unlawful Agreements

As a general rule, an agreement made without consideration is;

A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A's consent was obtained by coercion. Here, the agreement is;

An agreement made with free consent to which the consideration is lawful but inadequate is;

Which of the following persons are not competent to contract?

For entering into a contract, a minor is a person who has not completed the age of;

A contract with the minor, which is beneficial for him, is;

Which of the following persons do not fall under the category of persons of unsound mind?

Which of the following elements does not affect the free consent of the parties.

When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;

A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B's consent is obtained by

When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of

When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;

Which of the following acts does not fall under the categories of fraud?

Where the consent of a party is obtained by misrepresentation, the contract is;

Which of the following statement is false?

Where the consent of both the parties is given by mistakes, the contract is;

As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;

A contract made by mistake about Indian Law, is;

A contract made by mistake about some foreign law, is;

A mistake as to law not in force in India has the same effect as;