Indian Contract Act - Practice Test

[#836] A patient in a lunatic asylum, who is, at intervals, of sound mind, may contract during those intervals. Choose the correct option.

(A) A person in a lunatic asylum cannot enter into any contract

(B) As per Section 12, during the intervals when he is of sound mind, he can enter into contract

(C) Though, as per Section 12, he may enter into an agreement during the intervals when he is of sound mind, such agreements shall not be enforceable in any court of law

(D) None of the above

Correct Answer

(B) As per Section 12, during the intervals when he is of sound mind, he can enter into contract

[#837] X promises Y to drop a prosecution which he has instituted against Y for robbery and Y promises to restore the value of the things taken. Which one of the following is the correct answer?

(A) The agreement is a contract

(B) The agreement is immoral

(C) The agreement is void as it is in restraint of legal proceedings

(D) The agreement is void as its object is unlawful

Correct Answer

(D) The agreement is void as its object is unlawful

[#838] "A contract is a contract between the parties to the contract. A third party is a stranger to the contract even if it is avowedly made for his benefit." This is known as

(A) Principle of estoppels

(B) Nullity of contract

(C) Constructive contract

(D) Privity of contract

Correct Answer

(D) Privity of contract

[#839] What is the obligation of a person who has received advantage under void agreement:

(A) He can retain the advantage received with the prior approval of the person from whom he received it

(B) He can retain the advantage received without any prior permission from anyone

(C) He is bound to restore it or make compensation for it to the person from whom he received it

(D) He is bound to restore it or make compensation for it only when a Court order is passed in this behalf

Correct Answer

(C) He is bound to restore it or make compensation for it to the person from whom he received it

[#840] Duty to mitigate damages on the part of injured party arises:

(A) In cases of breach at the time fixed for performance of the contract

(B) In cases of anticipatory breach

(C) Both A and B

(D) Either A or B

Correct Answer

(D) Either A or B

Indian Contract Act - Study Mode

[#836] A patient in a lunatic asylum, who is, at intervals, of sound mind, may contract during those intervals. Choose the correct option.

Correct Answer

[#837] X promises Y to drop a prosecution which he has instituted against Y for robbery and Y promises to restore the value of the things taken. Which one of the following is the correct answer?

Correct Answer

[#838] "A contract is a contract between the parties to the contract. A third party is a stranger to the contract even if it is avowedly made for his benefit." This is known as

Correct Answer

[#839] What is the obligation of a person who has received advantage under void agreement:

Correct Answer

[#840] Duty to mitigate damages on the part of injured party arises:

Correct Answer