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Indian Contract Act, 1872 Practice Test
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The Indian Contract Act of 1872 is a legal framework that regulates contracts in India and is applicable to all states except Jammu & Kashmir. It was first published on April 25, 1872, and has 266 sections. The act is based on English Common Law and has been amended several times to keep up with changing economic conditions.  The act defines a contract as an agreement that is enforceable by law. It also defines an agreement as every promise and every set of promises that form the consideration for each other. A valid contract is formed when certain essential elements are present,... Show more
Indian Contract Act, 1872 Practice Test
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25 Questions

1. A contract is not frustrated:
2. Parties are not competent to contract if any of them is:
3. A, B and C jointly promise to pay D 3,000 rupees.
4. The pawnee cannot retain the goods for payment of any other debt or performance of any promise other than that for which the goods are pledged, unless:
5. An agreement between two neighbouring firms carrying on the same business, not to employ servants in their respective employment during the previous five years, was held to be void as being unreasonable and excessive in the interest of the parties because:
6. Mere silence is not fraud unless:
7. Section 201 of the Indian Contract Act is not exhaustive. An agency may be terminated by other modes such as:
I. my mutual agreement
II. completion of the term of agency by expiry of time agreed upon
III. destruction of the subject-matter of the agency
IV. the agency becoming subsequently unlawful
V. Dissolution of the principal firm
8. Which of the following deals with an agent’s duty in conducting principal’s business in the Indian Contract Act, 1872?
9. A empowers B to let A’s house. Afterwards A lets it himself.
10. Which of the following deals with agent’s accounts in the Indian Contract Act, 1872?
11. Section 17(1) defines which of the following ingredients?
I. There should be a suggestion as to a fact
II. The fact suggested should not be true
III. The suggestion should have been made by a person who does not believe it to be true
IV. The suggestion should be made with intent either to deceive or to induce the other party to enter into contract
12. A clause in the tender authorising the party inviting tenders to terminate the contract at any time for future supplies:
13. An agreement to refer the dispute to the arbitrator is valid:
14. A contracts to supply B with a certain quantity of iron at a fixed price, being a higher price than that for which A could procure and deliver the iron. B wrongfully refuses to receive the iron.
15. Which of the following Amendment Acts inserted Section 19A into the Indian Contract Act?
16. Unless the terms of the guarantee provide other, the surety is entitled to claim relief from the principal-debtor immediately:
17. Which of the following deals with liability of co-sureties bound in different sums in the Indian Contract Act, 1872?
18. A and B contract that A shall deliver goods to B to be paid for by B on delivery.
19. A and B contract that A shall build a house for B at a fixed price.
20. The principle on which the law accords protection to pardanashin women is founded on
21. A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the country in which the port is situated.
22. An agreement not to pursue any legal remedy to enforce the rights under section 28 is:
23. Acquittal contract is a discharge from an obligation by:
24. Which of the following deals with communication, acceptance and revocation of proposals in the Indian Contract Act, 1872?
25. The indemnity-holder can recover all costs he has been compelled to pay in suit to which the promise to indemnify relates if:

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