Multiple Choice Questions
1. Ordinarily, a minor’s agreement is
(a) Void ab initio (b) Voidable
(c) Valid (d) Unlawful
2. Consent is not said to be free when it is caused by
(a) Coercion (b) Undue influence
(c) Fraud (d) All of these
3. When the consent of a party is obtained by fraud, the contract is;
(a) Void (b) Voidable
(c) Valid (d) Illegal
4. The threat to commit suicide amounts to
(a) Coercion (b) Undue influence
(c) Misrepresentation (d) Fraud
5. Moral pressure is involved in the case of
(a) Coercion (b) Undue Influence
(c) Misrepresentation (d) Fraud
6. A wrong representation when made without any intention to deceive the other party amounts to
(a) Coercion (b) Undue influence
(c) Misrepresentation (d) Fraud
7. Which of the following statement is true?
(a) A threat to commit suicide does not amount to coercion
(b) Undue influence involves use of physical pressure
(c) Ignorance of law is no excuse
(d) Silence always amounts to fraud
8. In case of illegal agreement, the collateral agreements are:
(a) Valid (b) Void
(c) Voidable (d) Any of these
9. An agreement the object or consideration of which is unlawful, is
(a) Void (b) Valid
(c) Voidable (d) Contingent
10. An agreement is void if it is opposed to public policy. Which of the following is not covered by heads of
public policy?
(a) Trading with an enemy (b) Trafficking in public offices
(c) Marriage brokerage contracts (d) Contracts to do impossible acts.
11. A paid ` 5000 to a Government servant to get him a contract for the canteen. The Government servant
could not get the contract. Can A recover ` 5000 paid by him to the Government servant?
(a) Yes, the agreement is opposed to public policy
(b) No, the agreement is opposed to public policy
(c) No, the agreements are a voidable agreement and can be avoided by A
(d) No, the agreement falls under section 23 and hence illegal
12. With regard to the contractual capacity of a person of unsound mind, which one of the following
statements is most appropriate?
(a) A person of unsound mind can never enter into a contract
(b) A person of unsound mind can enter into a contract
(c) A person who is usually of unsound mind can contract when he is, at the time of entering into a
contract, of sound mind
(d) A person who is occasionally of unsound mind can contract although at the time of making the
contract, he is of unsound mind
13. An agreement made under mistake of fact, by both the parties, forming the essential subject matter of
the agreement is:
(a) Void (b) Voidable
(c) Valid (d) Unenforceable
14. A is in dire need of ` 1,00,000 but was unable to get any loan from banks as he had no security to offer.
A approached his friend B who knowing the helpless position of A lent money at a very high rate of
interest, saying that he had himself borrowed money from C. The contract is:
(a) Vitiated by undue influence that B had exercised over A due to his close friendship.
(b) Void as the rate of interest being very high was unconscionable.
(c) Not valid as B had wrongly misled A that he had borrowed money from C.
(d) Valid as a friend could not be supposed to have wielded undue influence only because the
money lent carried higher rate of interest.
15. Which of the following is not an exception to the rule that the agreement in restraint of trade is void:
(a) A partner can be prevented for carrying on similar business
(b) An outgoing partner can be restrained on carrying similar business
(c) On dissolution of firm, partners may agree not to carry on similar business
(d) The seller of goodwill of business can be prevented for carrying any kind of business at any
place.
16. An agreement to pay money or money’s worth on the happening or non-happening of a specified
uncertain event, is a
(a) Wagering agreement (b) Contingent contract
(c) Quasi contract (d) Uncertain agreement
17. A wagering agreement in India is declared by the Contract Act as
(a) Illegal and void (b) Void but not illegal
(c) Voidable at the option of the aggrieved party (d) Immoral
18. An agreement, the object of which is to procure a public post, is
(a) Void (b) Voidable
(c) Valid (d) Defective
19. While obtaining the consent of the promise, keeping silence by the promisor when he has a duty to speak
about the material facts, amounts to consent obtained by:
(a) Coercion (b) Misrepresentation
(c) Mistake (d) Fraud
20. A enters into an agreement with B who has robbed A of ` 10,000 to drop prosecution against him in
consideration of B’s returning ` 8,000. Afterwards B refused to pay. A can get from B
(a) ` 8,000 (b) ` 100
(c) Nothing (d) ` 10,000 plus damages
21. On attaining the age of majority, a minor’s agreement:
(a) cannot be ratified by him (b) becomes valid
(c) can be ratified by him (d) becomes void
22. A threat to kidnap one’s son in consideration of `5,00,000 is void because of:
(a) inadequacy of consideration
(b) incompetence of parties
(c) absence of free consent
(d) all of the above
23. In which of the following case, aggrieved part can sue for damages:
(a) Fraud (b) mistake
(c) undue influence (d) misrepresentation
24. A mere attempt to deceive a party to a contract:
(a) is fraud even though the party is not deceived
(b) is not fraud unless the party is actually deceived
(c) amounts to coercion
(d) amounts to misrepresentation
Answers to MCQs
1. (a) 2. (d) 3. (b) 4. (a) 5. (b)
6. (c) 7. (c) 8. (b) 9. (a) 10. (d)
11. (d) 12. (c) 13. (a) 14. (d) 15. (d)
16. (a) 17. (b) 18. (a) 19. (d) 20. (c)
21. (a) 22. (c) 23. (a) 24. (b)