The Indian Contract Act of 1872 is a vital piece of legislation that governs all contracts made in India. It is a crucial law that lays down the essential requirements for making valid legal contracts, and it also sets out the rights and obligations of the parties involved.
Multiple Choice Questions (MCQs) are an effective way to test one`s knowledge and understanding of a particular subject. In this article, we will present a set of MCQs based on the Indian Contract Act of 1872.
1. What is a contract under the Indian Contract Act of 1872?
a. A promise made by two parties
b. A legally enforceable agreement between two or more parties
c. A mutual understanding between two parties
d. A verbal agreement between two parties
Answer: b. A legally enforceable agreement between two or more parties.
2. What are the essential elements required for a valid contract under the Indian Contract Act of 1872?
a. Offer and acceptance, consideration, legal capacity, and free consent
b. Mutual agreement, delivery, payment, and performance
c. Written agreement, notarization, legal capacity, and free consent
d. Delivery, performance, legal capacity, and payment
Answer: a. Offer and acceptance, consideration, legal capacity, and free consent.
3. What is the doctrine of privity of contract?
a. A contract between two parties that cannot be enforced by a third party
b. A contract between three or more parties that cannot be enforced by a fourth party
c. A contract between two parties that can be enforced by a third party
d. A contract between three or more parties that can be enforced by a fourth party
Answer: a. A contract between two parties that cannot be enforced by a third party.
4. What is coercion under the Indian Contract Act of 1872?
a. Physical force used to make someone sign a contract
b. Threat of physical force to make someone sign a contract
c. Unfair or improper pressure to make someone sign a contract
d. None of the above
Answer: b. Threat of physical force to make someone sign a contract.
5. What is the significance of consideration in a contract under the Indian Contract Act of 1872?
a. It is the amount of money paid by one party to another
b. It is the benefit received by one party in exchange for something given by the other party
c. It is the legal capacity of the parties to enter into a contract
d. It is the mutual understanding between the parties
Answer: b. It is the benefit received by one party in exchange for something given by the other party.
In conclusion, the Indian Contract Act of 1872 is an essential piece of legislation that governs all contracts made in India. Being familiar with its provisions and requirements is crucial for anyone entering into legally binding agreements. The above MCQs can help test your knowledge and understanding of this law.