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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. Unconscionable contract is an:
2. In case of co-sureties, release of one surety by the creditor:
3. B contracts to build a ship for C for a given sum, to be paid by instalments as the work reaches certain stages. A becomes surety to C for B’s due performance of the contract. C, without the knowledge of A, prepays to B the last two instalments.
4. If only a part of the consideration or object is unlawful, the contract under section 24 shall be:
5. The doctrine of impossibility of performance rendering contracts void is based on:
6. An agreement not to pursue any legal remedy to enforce the rights under section 28 is:
7. Section 202 of the Indian Contract Act, 1872 does not require that the documents authorising the agent:
8. The subject-matter of Section 8 of the Indian Contract Act, 1872 is divided in to:
9. Under the contract of guarantee, a creditor:
10. The plaintiff is awarded nominal damages when:
I. the defendant’s breach of contract has in fact caused no loss to the plaintiff
II. the defendant has committed a technical breach of contract and the plaintiff had no intention of performing his terms
III. the plaintiff fails to prove the loss that he may have suffered from the breach of contract
IV. he has suffered actual damage, which has arisen, not from the defendant’s wrongful act, but from the conduct of the plaintiff himself, or an external event
V. the plaintiff merely seeks to establish the infringement of his legal right, without being concerned about actual loss.
11. _______ of the Indian Contract Act, 1872 prescribes that the acceptance must be made in a reasonable manner. If the proposer has prescribed a manner of acceptance, the acceptance must be made in that manner, if not so made, there is a contract only if the proposer ‘accepts the acceptance’
12. The principle of quasi-estoppel or promissory estoppel more aptly called is that when one party to a contract in the absence of a fresh consideration agrees not to enforce his rights, an equity will be raised in favour of another party, but subject to the qualification that:
13. The age of majority for the purpose of Contract Act is:
14. A gives cloth to B, a tailor, to make into a coat; B promises A to deliver the coat as soon as it is finished, and to give A three months, credit for the price.
15. Which of the following cases S. 235 of the Indian Contract Act, 1872 does not apply?
16. According to UN Draft Convention on Independent Guarantees and Stand-by Letters of Credit, the guarantor may refuse payment under the guarantee if the demand is improper. A demand may be improper if:
17. A guarantee:
18. A empowers B to let A’s house. Afterwards A lets it himself.
19. A sum fixed before hand as amount of compensation payable in the event of breach of contract is called:
20. The rules against penalty under Section 74 of the Indian Contract Act, 1872, do not apply where:
21. Section 41 of the Indian Contract Act applies to cases of:
22. What is the purpose of the rule of mitigation?
23. When did the Indian Contract Act, 1872 come into force?
24. Agreements, the meaning of which is not certain or not capable of being made certain under section 29 is:
25. Which of the following deals with agent’s duty to pay sums received for principal in the Indian Contract Act, 1872?

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