Objective Questions with Answers on Law Of Contracts - 25

1)  Provisions relating to the following have been provided under the Indian Contract Act 1872

1) Fraud   2) Coercion

3) Quasi contract 4) Consent.

The correct order in which these provisions appear in the  contract Act is :

A) 4, 2,1 and 3

B) 3, 4,1 and 2

C) 4,3,2 and 1

D) 1,2,3 and 4

Answer : A

2) Which one of the following will make an agreement void ?

A) Mistake of one of the parties

B) Mistake of a law

C) Mistake of foreign law

D) Mistake of fact by both the parties

Answer : D

3) Which one of the following does not amount to fraud ?

A) Suggestion as a fact of that which is not true by one who does not believe it to be true .

B) Active concealment of a fact .

C) A representation made without knowing it to be  honestly believing it to be true.

D) A promise made without any intention of performing it.

Answer : C

4) A master asks his servant to sell his cycle to him at less than the market price . This contract can be avoided by the servant on ground of  :

A) Coercion

B) Fraud

C) Mistake

D) Undue influence

Answer : D

5)   A takes an insurance policy on his life making a false statement about his health and does not disclose the fact that he has been treated for a serious illness. In this case which one of the following statement is correct ?

A) The contract is void

B) The contract is unenforceable

C) Contract is voidable on the ground of fraud

 

D) The Contract is unlawful.

Answer : C