Indian Contract Act - Practice Test

[#896] X' and 'Y' agree to marry each other on a certain date and before marriage 'X' goes mad. 'Y' cancels the agreement and sues for damages. Decide whether

(A) No cause of action arises till the date of marriage

(B) On account of 'X's going mad, the contract is frustrated and thus void. Y has no right to sue for damages

(C) The contract itself is void

(D) Y is guilty of breach of contract

Correct Answer

(B) On account of 'X's going mad, the contract is frustrated and thus void. Y has no right to sue for damages

[#897] A partnership firm consists of three partners 'A', 'B' & 'C', and owes 'R' sum of Rs. 15,000. 'A' wants to retire and it is agreed amongst all the three partners and 'R' that after retirement of 'A', 'B' & 'C' as continuing partners shall be liable for the dues of 'R'. After the retirement of 'A', 'R' sues 'A' for recovery of Rs. 15,000.

(A) R' has an option to sue the firm consisting of 'B' & 'C' or the retired partner 'A'

(B) R' has a right to sue 'A' to the extent of Rs. 5000 being the portion attributable to 'A'

(C) R' has no right to sue 'A' as after the retirement of 'A' a new agreement came into being between 'R' & the firm and 'A' stood discharged of his liability towards 'R'

(D) 'R' can sue the firm consisting of 'B' & 'C' alongwith 'A' as liability of all the partners is joint & several

Correct Answer

(C) R' has no right to sue 'A' as after the retirement of 'A' a new agreement came into being between 'R' & the firm and 'A' stood discharged of his liability towards 'R'

[#898] Any act is done, without the authority or knowledge of a person on behalf of that person, that person

(A) Can disown the act

(B) Can ratify the act

(C) Either ratify or disown the act

(D) Can disown the act but cannot ratify the same

Correct Answer

(C) Either ratify or disown the act

[#899] The Contract Act of 1872 was enacted on

(A) 25 th April, 1872

(B) 25 th May, 1872

(C) 25 th June, 1872

(D) None of above

Correct Answer

(A) 25 th April, 1872

[#900] Contractual liability arises where:

(A) There is offer and acceptance only

(B) There is intention to create legal obligation

(C) There is loss to one party

(D) The loss of one party is the gain of the other party

Correct Answer

(B) There is intention to create legal obligation

Indian Contract Act - Study Mode

[#896] X' and 'Y' agree to marry each other on a certain date and before marriage 'X' goes mad. 'Y' cancels the agreement and sues for damages. Decide whether

Correct Answer

Correct Answer

[#898] Any act is done, without the authority or knowledge of a person on behalf of that person, that person

Correct Answer

[#899] The Contract Act of 1872 was enacted on

Correct Answer

[#900] Contractual liability arises where:

Correct Answer