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Contract Law MCQs and mock tests

362 distinct Contract Law questions are in live Law Maker papers, used across 27 exams. Each was checked against the official text and comes with the answer and an explanation once you submit.

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Read the Act: The Indian Contract Act, 1872 (official text, section by section).

Contract Law practice sets

7 sets, 1 free.

Exams with Contract Law questions

Sample Contract Law questions

From free papers. Try each one before you open the answer.

  1. Question 1 · Contract Law Practice Set 1

    Consider the following statements under Section 2: 1. An agreement not enforceable by law is said to be void. 2. A voidable contract is an agreement enforceable by law at the option of each of the parties to it. 3. A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable. Which of the statements given above is/are correct?

    1. A. 1, 2 and 3
    2. B. 1 and 3 only
    3. C. 1 and 2 only
    4. D. 2 and 3 only
    Show the answer

    B. 1 and 3 only

    Statements 1 and 3 reproduce Section 2(g) and Section 2(j). Statement 2 is wrong because Section 2(i) defines a voidable contract as an agreement enforceable at the option of one or more of the parties but not at the option of the other or others.

  2. Question 2 · Contract Law Practice Set 1

    Under Section 10, an agreement made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, is still not a contract if it:

    1. A. is performed through an agent instead of the parties
    2. B. is made between parties of unequal bargaining power
    3. C. is made for a consideration lower than market value
    4. D. is expressly declared void by the Act
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    D. is expressly declared void by the Act

    Section 10 makes such agreements contracts if they 'are not hereby expressly declared to be void'. Unequal bargaining strength, performance through an agent and inadequacy of consideration (Explanation 2 to Section 25) do not by themselves prevent an agreement from being a contract.

  3. Question 3 · Contract Law Practice Set 1

    X, who is ordinarily of sound mind, signs an agreement to sell his land while so drunk that he cannot understand its terms or form a rational judgment as to its effect on his interests. Under Section 12, which of the following is correct?

    1. A. X could contract, since his drunkenness was self-induced
    2. B. X could not contract while that drunkenness lasted
    3. C. X could contract, but the sale is voidable for want of free consent
    4. D. X could contract, since he is usually of sound mind
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    B. X could not contract while that drunkenness lasted

    Illustration (b) to Section 12 states that a sane man who is so drunk that he cannot understand the terms of a contract or form a rational judgment as to its effect on his interests cannot contract whilst such drunkenness lasts. Being usually of sound mind does not help him while he is of unsound mind.

  4. Question 4 · Contract Law Practice Set 1

    In Mohori Bibee v. Dharmodas Ghose (1903), the Privy Council held that a mortgage executed by a minor in favour of a money-lender was:

    1. A. valid but unenforceable until majority
    2. B. void from the very beginning
    3. C. voidable at the option of the minor
    4. D. voidable at the option of the money-lender
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    B. void from the very beginning

    The Privy Council held in Mohori Bibee v. Dharmodas Ghose (1903) that, reading Sections 10 and 11 together, a minor is not competent to contract and an agreement by a minor is void, not merely voidable.

  5. Question 5 · Contract Law Practice Set 1

    Under Section 9, in so far as the proposal or acceptance of a promise is made otherwise than in words, the promise is said to be:

    1. A. contingent
    2. B. express
    3. C. implied
    4. D. conditional
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    C. implied

    Section 9 provides that a promise is express in so far as the proposal or acceptance is made in words, and implied in so far as it is made otherwise than in words.