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Contract Act MCQ’s in Business Law

Indian Contract Act is one of the important Act in Business Law. It includes various sections, Concepts etc. One should be very clear about the concepts to deal with the Contract Act. MCQ’s are best way to understand the concepts also to check whether we understood it in the proper sense. Hence you can find these Indian Contract Act MCQ’s in Business Law with answers to be very helpful.
This Indian Contract Act MCQ’s in Business Law will be helpful for students of graduation, Post graduation and competitive exams. Moreover we have given the this Contract Act MCQ’s in Business Law with answers so that you can cross verify to get better understanding. This also covers the MCQ’s on Legal Aspects of Business.

Contract Act MCQ’s in Business Law

1. An offer when accepted becomes ________________
A. Agreement
B. Contract
C. Promise
D. None of the above

Answer: C. Promise

2. Every promise and every set of promise forming consideration for each other is an __________
A. Agreement
B. Contract
C. Promise
D. None of the above

Answer: A. Agreement


3. Select an option based on the below said statements:
Statement 1: “Every contract is an agreement “
Statement 2: “Every agreement is not a contract”

A. Statement 1 is only true
B. Both 1 & 2 are True
C. Both 1 & 2 are False
D. Statement 2 is only true

Answer: B. Both 1 & 2 are True

MCQ’s on Essentials of Valid Contract

4. An agreement becomes contract only when it possess ______________
A. Consideration
B. Acceptance
C. Legal Status
D. Essential elements

Answer: D. Essential elements

5. Social Agreements are not considered as contract because
A. those agreements are not legal
B. They don’t have consideration
C. They don’t create legal relations
D. The intention of the parties are not Lawful

Answer: C. They don’t create legal relations

6. A consideration Cannot be____________________
A. Past
B. Present
C. Future
D. Subjective

Answer: D. Subjective

Types of Contract MCQ

7. When the acceptance of one party to the contract is not obtained by free consent then the contract becomes
A. Valid
B. Voidable
C. Void
D. Unenforceable

Answer: B. Voidable

8. A agrees to sell 20 KG of sugar to B at Rs. 500. Before delivery Government bans private trading of sugar. So contract could not be executed. This can be termed as
A. Supervening Impossibility
B. Unenforceable
C. Void Agreement
D. Subsequent Illegality

Answer: D. Subsequent Illegality

9.” Void ab-initio” is related to
A. Void Agreements
B. Void Contracts
C. Voidable Contract
D. None of the above

Answer: A. Void Agreements

10. Unenforceable Contract cause because of Absence of
A. Writing
B. Registration
C. Requisite Stamp
D. All of the above

Answer: D All of the above

General MCQ’s on Contract Act

11. Constructive contract is otherwise known as
A. Quasi Contract
B. Implied Contract
C. Express Contract
D. Executed Contract

Answer: A. Quasi Contract

12. A car in a Second hand car showroom tagged with the price is an
A. Express offer
B. Invitation to offer
C. Implied Offer
D. Valid offer

Answer: B. Invitation to offer

13. Which of the following is a false statement
A. Consideration can be past
B. Consideration need not be adequate
C. Consideration may move from promise or any other person
D. Consideration cannot move from any other person

Answer: D. Consideration cannot move from any other person

14. When one party of the contract is in a position to dominate the other party and obtain acceptance is known as
A. Coercion
B. Threaten
C. Undue Influence
D. None of the above

ANSWER: C. Undue Influence

15. Which of the following doesn’t fall under Void Agreements
A. Agreement by way of wager
B. Agreement by way of Quasi
C. Agreements in restrain of marriage
D. Agreements to do impossible acts

Answer: B. Agreement by way of Quasi

Refer here for other MCQ’s related to Business Law

 

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