Objective Questions with Answers on Law Of Contract - 77

1) out of following essential of contract which does not find place in Indian contract Act :

 

A) Competency

B) Real consideration

C) Intention to contact

D) Uncertain agreement

Answer : C

2) When a person without expressing his final willingness, proposes  certain terms in which he is willing to negotiate, he makes :

A) Counter offer

B) Standing offer

C) Both (A) and (B)

D) Invitation to treat

Answer : D

3) A promises to give Rs. 500 to B if House of B is burnt, such promise is :

A) Quasi contract

B) Void contract

C) Contingent contract

D) Privity of contract

Answer : C

4) A municipality seeks funds the general public for the construction of a town hall. X writes Rs. 60,000 in the subscription book and signs. The municipality, on the basic of  subscription promised, engages a contractor to construct. The town hall X fails to pay Rs. 30,000. In case which of the following is contract ?

A) X can deny liability on the ground that there is no enforceable agreement

B) The municipality can demand that X Should discharge his liability. On the ground, it incurred liability on the faith of the promise made by X

C) Both (A) and (B)

D) None of the above

Answer : B

5) Lending money, at a very high rate of interest, when the money market is tight renders to agreement of lone :

A) Valid

B) Voidable

C) Void

D) None of the above

Answer : A