All Free Law and Constitution MCQs with Answers

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2,940 questions · page 31 of 147

  • A. The contractor
  • B. Stranger
  • C. None of above
  • D. Third person

Explanation: Under Section 126, a guarantee is an undertaking to perform the promise or discharge the liability of a third person if that person…

Correct answer: Third person
  • A. Invalid
  • B. Valid
  • C. Both A and B
  • D. None of above

Explanation: Section 143 of the Contract Act makes a guarantee invalid when the creditor's misrepresentation, or his knowledge and assent to it…

Correct answer: Invalid
  • A. Continuing guarantee
  • B. Restricted guarantee
  • C. Limited guarantee
  • D. None of above

Explanation: This is a continuing guarantee because it covers the repeated collection and payment of rents by C, rather than one isolated transaction.

Correct answer: Continuing guarantee
  • A. Contracts of indemnity
  • B. Contracts of guarantee
  • C. Both A and B
  • D. None of above

Explanation: Sections 124 and 125 concern indemnity, while sections 126 to 147 concern guarantees.

Correct answer: Both A and B
  • A. Surety contract
  • B. Simple contract
  • C. None of above
  • D. Contract of indemnity

Explanation: Section 124 defines indemnity as a promise to save another from loss caused by the promisor or by another person.

Correct answer: Contract of indemnity
  • A. VI
  • B. VII
  • C. VIII
  • D. None of above

Explanation: Chapter VI of the Contract Act, comprising sections 73 to 75, deals with compensation and other consequences arising from breach of…

Correct answer: VI
  • A. Reciprocal promisor
  • B. Reciprocal Promisee
  • C. Both A and B
  • D. None of above

Explanation: Section 51 concerns reciprocal promises performed simultaneously: one party need not perform unless the other is ready and willing to…

Correct answer: Reciprocal Promisee
  • A. 32
  • B. None of above
  • C. 34
  • D. 33

Explanation: Section 33 governs enforcement of contingent contracts dependent on an event not happening.

Correct answer: 33
  • A. Unless and until C dies in A's life time
  • B. Unless and until A dies in C's life time
  • C. Both A and C dies
  • D. None of above

Explanation: A's survival of C means that C must die while A is still alive; only then does the specified event become certain.

Correct answer: Unless and until C dies in A's life time
  • A. Voidable
  • B. Void
  • C. Both A and B
  • D. None of above

Explanation: Under section 36, a contingent agreement based on an impossible event is void from the outset.

Correct answer: Void
  • A. Possible but not assured
  • B. Doubtful or uncertain
  • C. Both A and B
  • D. None of above

Explanation: Contingent describes something dependent on an uncertain event, so it is possible but not assured and therefore doubtful.

Correct answer: Both A and B
  • A. Contingent contract
  • B. Complex contract
  • C. Simple contract
  • D. None of above

Explanation: Under Section 31 of the Contract Act, a contract whose performance depends on the happening or non-happening of a collateral uncertain…

Correct answer: Contingent contract
  • A. Voidable
  • B. Void
  • C. Valid
  • D. None of above

Explanation: Section 25 makes an agreement without consideration void, subject to specific statutory exceptions such as a written promise based on…

Correct answer: Void
  • A. Valid
  • B. Voidable
  • C. Void
  • D. None of above

Explanation: When both parties share a mistake about an essential matter of fact, Section 20 treats the agreement as void because there is no genuine…

Correct answer: Void
  • A. The Court can accept the suit
  • B. None of above
  • C. Both A and B
  • D. The Court may set aside the bonds

Explanation: Obtaining A's bond by threatening prosecution in connection with the forged note amounts to coercion where the threat unlawfully pressures…

Correct answer: The Court may set aside the bonds
  • A. Void of the option of the party whose consent was caused
  • B. Voidable on the option of the party whose consent so caused
  • C. Valid for both sides
  • D. None of above

Explanation: Under Section 19, consent caused by coercion, fraud, or misrepresentation makes the contract voidable at the option of the party whose…

Correct answer: Voidable on the option of the party whose consent so caused
  • A. Cheating
  • B. Misrepresentation
  • C. Fraud
  • D. None of above

Explanation: Knowingly stating an untrue fact or actively concealing a material fact falls within the statutory definition of fraud under Section 17.

Correct answer: Fraud
  • A. 15
  • B. 16
  • C. None of above
  • D. 17

Explanation: Section 17 of the Contract Act defines fraud, while Section 18 deals with misrepresentation and Section 16 with undue influence.

Correct answer: 17
  • A. Any
  • B. None of above
  • C. Unlawful
  • D. Lawful

Explanation: Under section 10 of the Contract Act, an agreement becomes a contract only when it has free consent, competent parties, and a lawful…

Correct answer: Lawful
  • A. Before the rejection of its communication
  • B. Before the communication of its acceptance
  • C. Both A and B
  • D. None of above

Explanation: Section 5 permits revocation of a proposal before communication of its acceptance is complete against the proposer.

Correct answer: Before the communication of its acceptance