MCQs Test Paper

Subject: Legal Aptitute and Logical Reasoning
ICSI-CSEET
MCQs on Indian Contract Act, 1872
1. The Contract Act was enacted on
A. 25th May, 1872
B. 25th June, 1872
C. 25th April, 1872
D. None of above
2. The Contract Act was enforce on

A. 1st August, 1872
B. 1st September, 1872
C. 1st July, 1872
D. 1st April, 1872
3. A proposal, when accepted, becomes _________

A. a promise
B. an acceptance
C. a contract
D. an agreement
4. When one person signifies to another his willingness to do or to abstain from

doing anything with a view to obtaining the assent of that other person to such
act or abstinence he is said to make a _________
A. Promise
B. Proposal
C. Offer
D. None of above
5. When the person to whom the proposal is made signifies his assent thereto the
proposal is said to be accepted than its called
A. Proposal
B. Promise
C. Agreement
D. None of the above
6. The person making the proposal is called _______

A. Promiser
B. Promisee
C. Offerer
D. All of the above
7. The person to whom proposal is made is called ________

A. Promiser
B. Promisee
C. Offeree
D. None of above
8. Every promise and every set of promises forming the consideration for each
other is __________
A. an offer
B. a proposal
C. an agreement
D. a contract
9. Which of the following is not an essential element of a contract ?

A. An offer
B. Consideration
C. Free consent
D. Immoral Object
10. Acceptance can be expressed

A. by express words spoken
B. in writing
C. by conduct
D. All of the above
11. When at the desire of promisor, the promise or any other person has done or
abstained from doing, does or abstains from doing or promises to do or abstain
from doing something, such act or promise is called _________
A. Performance
B. Consent
C. Consideration
12. As per the general rule, an agreement without Consideration is ______

A. Void
B. Valid
C. Invalid
D. Illegal
13. An agreement which is not enforceable by law is _______

A. Illegal
B. Invalid
C. Void
D. Valid
14. An agreement which is enforceable by law at the option of one of the parties
A. Valid
B. Void
C. Voidable
D. Illegal
15. ______ agreement is one which is against a law.

A. Void
B. Illegal
C. Voidable
D. Invalid
16. An agreement enforceable by law is _________

A. an agreement
B. a contract
C. Both (A) and (B)
D. None of above
17. A proposes by letter to sell a house to B The Communication of the proposal is

complete
A. When B accepts the proposal
B. When A makes such proposal
C. Both (A) and (B)
18. A proposal may be revoked at any time

A. Before the communication of its acceptance
B. Before the rejection of its communication
C. Both (A) and (B)
19. In order to convert a proposal into a promise the acceptance must be

A. Unconditional
B. Conditional
C. Absolute
20. All the agreements are contracts if they are made by free consent of the parties
competent to contract for a _____ consideration and object.
A. Unlawful
B. Lawful
C. Any
A
21. Age limit for making a contract is

A. 16 years
B. 17 years
C. 19 years
D. Majority
22. A contract made by lunatic is____ in the eye of Law.

A. Valid
B. Invalid
C. Void
D. Illegal
23. An agreement with minor is _________

A. Invalid
B. Illegal
C. Void – ab – initio
D. Void
24. Undue influence make a contract

A. Void
B. Illegal
C. Valid
D. Invalid
25. The consideration or object of an agreement is lawful unless it is

A. Forbidden by contractors themselves
B. Forbidden by law
C. Forbidden by custom
D. None of above
26. Which of the following act does not constitute fraud?

A. where a person stands in a fiduciary relation with the other and induces the
other person to act on his directions
B. the active concealment of a fact by one having knowledge or belief of the fact
C. a promise made without any intention of performing it
D. the suggestion as a fact, of that which is not true, by one who does not
believe it to be true
27. Which of the following does not constitute misrepresentation ?

A. any breach of duty which, without an intent to deceive, gains an advantage to
the person committing it
B. the positive assertion, in a manner not warranted by the information of the
person making it, of that which is not true, though he believes it to be true
C. causing, however innocently, a party to an agreement, to make a mistake as
to the substance of the thing which is subject of the agreement
D. any act fitted to deceive the other party willfully
28. In which of the following cases is a contract not voidable at the option of the party
whose consent was so caused
A. When the consent was caused by coercion
B. When the consent was caused by misrepresentation
C. When the consent was caused by silence but the party had the means of
discovering the truth
D. When the consent was caused by fraud
29. Contingent contract means

A. A suit entrusted to any person to abide by the result of any game or other
uncertain event on which may wager is made
B. A contract to do or not to do something, if some event, collateral to such
contract, does or does not happen
C. Agreements which are not certain, or capable of being made certain
D. Every agreement, by which any party thereto is restricted absolutely from
enforcing his rights under or in respect of any contract
30. Contingent contract to do or not to do anything on the happening of an uncertain

future event:
A. Is never enforceable
B. Is enforceable since the time of making it
C. Becomes enforceable in the immediate possibility of happening of that event
D. Becomes enforceable only on the happening of that event
31. Where a promisor has made an offer of performance to the promisee and the
offer has not been accepted:
A. The promisor is responsible for non-performance, but he does not lose his
rights under the contract
B. The promisor is not responsible for non-performance, nor does he thereby
lose his rights under the contract
C. The promisor is not responsible for non-performance, but he loses his rights
under the contract
D. The promisor can enforce the performance of the promise.
32. When two or more persons have made a joint promise, then, unless a contrary
Intention appears from the contract, all such persons must fulfill the promise:
A. Jointly
B. Severally
C. Jointly or Severally
D. Jointly and Severally
33. Where a contract consists of reciprocal promises and such reciprocal promises
are to be simultaneously performed:
A. Promisor need not perform his part of promise at all
B. Promisor need not perform his part of promise unless promisee is ready and
willing to perform his reciprocal promise
C. Promisor has to compel promisee to perform his promise first
D. There is no valid contract at all
34. When a party to a contract fails to perform a contract within the fixed time:
A. Such contract remains valid provided the promise is fulfilled whether at the
time of performance or later
B. Such a contract becomes void
C. Such contract becomes voidable at the option of the promise, if the intention
of the parties was that time should be of essence of the contract
D. Such a contract becomes voidable at the option of the promisor or promise
and the intention of the parties does not matter
35. Agreement to do an impossible act is:
A. Voidable at the option of the promisor
B. Void
C. Valid
D. Voidable at the option of the promise
36. In case of breach of contract of sale of some rare article or thing for which there
is no substitute in the market, the Court may grant:
A. Quantum Meruit
B. Rescission
C. Injunction
D. Specific Performance
37. What is the obligation of a person who has received advantage under void
agreement:
A. He can retain the advantage received with the prior approval of the person
from whom he received it
B. He can retain the advantage received without any prior permission from
anyone
C. He is bound to restore it or make compensation for it to the person from whom
he received it
D. He is bound to restore it or make compensation for it only when a Court order
is passed in this behalf
38. If a person who is incapable of entering into a contract is supplied with

necessaries by another person, then the latter shall:
A. Be reimbursed for such supplies by a relative of the incapable person and
that relative must be capable of contracting
B. Be reimbursed for such supplies from the property of such incapable person
C. It shall be treated as per the Court’s order
D. Not entitled to be reimbursed at all
39. What is the meaning of novation:

A. Rescinding of a contract
B. Alteration of a contract
C. Change in provisions of a contract
D. Substituting an old contract for a new one
40. X owes Rs. 10,000 to Y under a contract. It is agreed between X, Y & Z that Y
shall henceforth accept Z as his debtor instead of X for the same amount. Old
debt of X is discharged and a new debt from Z to Y is contracted. This is:
A. Alteration of a contract
B. Rescission of contract
C. Novation of contract
D. Change in contract
41. What is contract of indemnity:

A. A contract by which one party promises to save any third party from loss
caused to that party by the contract of the promisor himself, or by the conduct
of any other person
B. A contract by which one party promises to provide insurance to the other in
order to cover up any losses that may arise in the contract
C. A contract by which one party promises to save the other from loss caused to
him by the contract of the promisor himself, or by the conduct of any other
person
D. A contract in which one party appoints a guarantor to cover up any losses that
may arise in the contract
42. The correct sequence in formation of a contract is:

A. Offer, acceptance, consideration, agreement
B. Offer, Consideration, acceptance, agreement
C. Agreement, consideration, offer, acceptance
D. Offer, acceptance, agreement, consideration
43. Which of these contracts has three parties consisting of creditor, principle debtor
and surety:
A. Contract of indemnity
B. Contract of surety
C. Contract of pledge
D. Contract of guarantee
44. What is a continuing guarantee:

A. A guarantee which continues even after the contract comes to an end
B. B A guarantee which shall be applicable to any other person who becomes a
party to the contract
C. A guarantee which extends to a series of transaction
D. A guarantee which continues till the contract does not come to an end
45. X transfers possession or custody of the farmland to his son, S. S shall pay rent
or a lease fee in return. S only receives custody and control of the property, but X
still owns it. X is thus responsible for paying the property taxes and is liable for
what happens on the land. This kind of contract or arrangement is called:
A. Guarantee
B. Bailment
C. Pledge
D. Set off
46. What is the minimum consideration required to create an agency?

A Minimum of Rupees One Lakh
B Minimum of Rupees One Thousand
C No consideration at all is required
D Minimum of Rupees Ten Thousand
47. What are the essentials for a person to employ an agent

A The person should not be of sound mind
B The person should be a major, according to the law to which the agent is
subject
C The person should be a major, according to the law to which he is subject and
should also be of sound mind
D The person should have executed a contract of indemnity before employing an
Agent
48. An Agent’s authority can be created

A Only by expressly writing the terms thereof
B Only by implication
C Only by expressly writing the terms thereof and registering the same with sub
registrar
D either expressly or impliedly
49. A sub-agent is a person employed by and acting under the control of

A The principal only
B The original agent in the business of agency only
C Both the principal and original agent only
D Neither the Principal nor the original agent
50. For the acts of a person appointed as a sub-agent by the agent without having an
authority to do so:
A The agent is responsible to the sub-agent only
B The agent is responsible to the principal only
C The agent is responsible to third person only
D The agent is responsible to both the principal and third person

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Subject: Legal Aptitute and Logical Reasoning

2. The Contract Act was enforce on

3. A proposal, when accepted, becomes _________

4. When one person signifies to another his willingness to do or to abstain from

6. The person making the proposal is called _______

7. The person to whom proposal is made is called ________

9. Which of the following is not an essential element of a contract ?

10. Acceptance can be expressed

12. As per the general rule, an agreement without Consideration is ______

13. An agreement which is not enforceable by law is _______

15. ______ agreement is one which is against a law.

16. An agreement enforceable by law is _________

17. A proposes by letter to sell a house to B The Communication of the proposal is

18. A proposal may be revoked at any time

19. In order to convert a proposal into a promise the acceptance must be

21. Age limit for making a contract is

22. A contract made by lunatic is____ in the eye of Law.

23. An agreement with minor is _________

24. Undue influence make a contract

25. The consideration or object of an agreement is lawful unless it is

26. Which of the following act does not constitute fraud?

27. Which of the following does not constitute misrepresentation ?

29. Contingent contract means

30. Contingent contract to do or not to do anything on the happening of an uncertain

38. If a person who is incapable of entering into a contract is supplied with

39. What is the meaning of novation:

41. What is contract of indemnity:

42. The correct sequence in formation of a contract is:

44. What is a continuing guarantee:

46. What is the minimum consideration required to create an agency?

47. What are the essentials for a person to employ an agent

48. An Agent’s authority can be created

49. A sub-agent is a person employed by and acting under the control of

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