The Indian Contract Act, 1872 is a crucial legislation that governs and regulates all types of contracts in India. This act outlines the principles governing the formation and enforcement of contracts, which are essential for businesses and individuals alike. In this article, we will discuss multiple-choice questions (MCQs) related to the Indian Contract Act, 1872, that can help law students and professionals understand the act better.

MCQ #1: Which of the following is a contract under the Indian Contract Act, 1872?

(a) A promise made by one party to another

(b) An agreement made between two or more parties

(c) Both (a) and (b)

(d) None of the above

Answer: (c) Both (a) and (b)

Explanation: A contract is an agreement between two or more parties that creates an obligation to do or not to do something. A promise is an offer made by one party to another, which can lead to an agreement that may be enforceable by law.

MCQ #2: An agreement that is not enforceable by law is known as a:

(a) Void Agreement

(b) Voidable Agreement

(c) Contingent Agreement

(d) Unilateral Agreement

Answer: (a) Void Agreement

Explanation: A void agreement is one that is not enforceable by law because it violates a legal provision or is against public policy. A void agreement does not create any legal rights or obligations for the parties involved.

MCQ #3: Which of the following contracts is not required to be in writing as per the Indian Contract Act, 1872?

(a) Contract of sale

(b) Contract of lease

(c) Contract of partnership

(d) Contract of guarantee

Answer: (b) Contract of lease

Explanation: The Indian Contract Act, 1872, requires certain contracts to be in writing, such as contracts for the sale of immovable property, contracts that cannot be performed within one year, and contracts of guarantee. However, a contract of lease is not required to be in writing, although it is advisable to do so.

MCQ #4: Which of the following is not a condition of a contract as per the Indian Contract Act, 1872?

(a) Warranties

(b) Representations

(c) Fundamental breach

(d) Implied terms

Answer: (b) Representations

Explanation: A condition is an essential term of a contract that goes to the root of the contract. A breach of a condition entitles the innocent party to terminate the contract and claim damages. The Indian Contract Act, 1872, recognizes two types of terms in a contract – conditions and warranties. A representation is a statement made by one party to another, which induces the other party to enter into a contract but is not a term of the contract.

MCQ #5: Which of the following is not a discharge of a contract as per the Indian Contract Act, 1872?

(a) Performance

(b) Breach

(c) Agreement

(d) Abandonment

Answer: (d) Abandonment

Explanation: A contract can be discharged in various ways, such as by performance, breach, agreement, frustration, or operation of the law. However, abandonment is not a recognized method of discharge of a contract under the Indian Contract Act, 1872.

Conclusion:

The Indian Contract Act, 1872, is a crucial law that governs and regulates all types of contracts in India. The MCQs provided in this article are designed to help law students and professionals test their understanding of the act. It is essential to have a sound knowledge of the act to ensure that contracts are created, executed, and enforced in a lawful manner.