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Nature of contracts Interview Questions & Answers

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Nature of contracts Interview Questions & Answers

A contract which ceases to be enforceable by law becomes void when it cases to be enforceable. A voidable contract is a contract which a enforceable at the option of one party but not at the option of other party. Nature: A void contract was valid when it was made. The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The courts must enforce a valid contract as it is made, unless there are grounds that bar its enforcement.

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Yatra travels operates AC buses from Mumbai to Nasik. The bus is standing at the bus stop in Mumbai waiting for passengers travelling to Nasik and is ready for departure. There is an __________ for passengers to board.
(a) Internal Offer
(b) External Offer
(c) Express Offer
(d) Implied Offer
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An Executed Consideration is:
(a) An act of mutual exchange of promises
(b) An act done in the expectation of a proposal
(c) An act done in response to a positive promise
(d) All of the above
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All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared as _____ by law.
(a) Valid
(b) Void
(c) Lawful
(d) Forceable
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X promises to pay Z Rs 5,00,000 if Z can make his dead wife alive. Such an agreement is: a) Valid b) Void c) Impossible to perform d) Unenforceable
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In case of unenforceable contract having some technical defect, parties
(a) Can sue upon it
(b) Cannot sue upon it
(c) Should consider it to be illegal
(d) None of the above
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______________ contracts are also caled contracts with executed consideration.
(a) Unilateral
(b) Completed
(c) Bilateral
(d) Executory
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A match fixing contract between a player and a broker is a:
(a) Valid Contract
(b) Unenforceable Contract
(c) Void Contract
(d) Illegal Contract
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B sends acceptance through telegram to A and it was lost in transit due to mishandling of postman. The contract is:
(a) Voidable
(b) Valid
(c) Void
(d) Illegal
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P agrees to pay a certain sum to Q, if Q brings on earth a star from sky. This is a: a) Valid contract b) Void agreement c) Enforceable contract d) None of the above
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On 5th of a month X makes an offer to Y, by a letter, which reaches Y on 6th. On the 7th, Y posts his letter of acceptance. Meanwhile, on the 6th X posts a letter to Y revoking the offer. On seeing it Y sends a telegram to X on 8th confirming the acceptance given through his letter of the 7th. Discuss the legal effects of the three letters and the telegram:
(a) There is no contract between X and Y
(b) The contract is concluded between X and Y on 7th when B posts the letter of acceptance.
(c) Either (a) or (b)
(d) None of the above
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For a binding contract both the parties to the contract must:
(a) Agree upon the same thing in the same sense
(b) Put the offers and counter offer
(c) Stipulate their individual offer and consideration
(d) Not agree with each other
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An offer which is open for acceptance over a period of time is:
(a) Cross Offer
(b) Counter Offer
(c) Standing Offer
(d) Implied Offer
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A enquires from B, "Will you purchase my cow for $100?" B replies," I shall purchase your cow for $100 provided you purchase my parrot for $120." In this case: a) B has accepted the offer of A b) B has made a counter offer to A c) A is bound by the actions of B d) B cannot make such an offer
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L says to J, "I shall sell my house, will you buy?" J says" Yes, I shall buy". The agreement is void due to; a) Uncertainity of meaning b) Uncertainity of price c) Uncertainity of existence iof subject matter d) Uncertainity of quality of subject matter
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A offers to sell his house to B, who agrees to purchase it subject to approval by B's solicitors. Which one of the statements is correct?
(a) B's statement is absolute and unqualified
(b) B's statement is not absolute and unqualified
(c) B's statement is absolute but qualified
(c) All the above statements are correct
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An agreement which is enforceable by law at the option of one or more of the parties therto, but not at the option of the other, is a:
(a) Valid contract
(b) Unenforceable contract
(c) Voidable contract
(d) Void agreement
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x offers to sell his house to Y for Rs 10 Lacs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here the letter of X would:
(a) Amount to a proposal
(b) Amount to a promise
(c) No amount to a proposal
(d) Amount to acceptance
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the juristic concept of contract consists of:
(a) Agreement and Obligation
(b) Free Consent and Capacity
(c) Offer and Acceptance
(d) Consideration and Coercion
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A void contract means:
(a) An agreement which is not enforceable by law
(b) A contract which ceases to be enforceable by law
(c) An agreement which creates liability for punishment
(d) A contract which is enforceable at the option of an aggrieved party
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Which of the following statement is correct?
(a) The Indian Contract Act, 1872, is a private law
(b) The rights and duties of parties to a contract are not limited.
(c) The provisions of the Indian Contract Act, 1872, are a complete code
(d) Law takes cognizane of all rights and duties decided by the parties to the contract
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Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal



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