Indian Contract Act - Practice Test

[#931] X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. 'Z' in law is entitled to recover:

(A) The entire outstanding from 'Y'

(B) Z' having unilaterally released 'X' from the promise to repay has forfeited his right to recovery the loan amount from 'Y' also

(C) Z' having unilaterally released 'X' is entitled to recover only 50% of the outstanding from 'Y'

(D) Unilateral release by 'Z' of 'X' from liability is void and 'Z' can maintain a suit against both 'X' and 'Y'

Correct Answer

(A) The entire outstanding from 'Y'

[#932] Which of the following is not true?

(A) Quasi contracts create obligations on non-contracting parties

(B) Quasi contracts remedy instances of unjust enrichment

(C) Quasi contracts create legal substitutes of a contract

(D) Quasi contracts are only related to minors

Correct Answer

(D) Quasi contracts are only related to minors

[#933] Which of the following is correct under the Indian Contract Act, 1872?

(A) An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards

(B) All agreements are contracts but all contracts are not agreements

(C) A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of sound mind

(D) The communication of a revocation is complete, as against the person to whom it is made, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it

Correct Answer

(A) An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards

[#934] In case of joint promise, generally the performance must be by:

(A) All the promisors jointly

(B) Anyone of them individually

(C) Individual promisor with the consent of the promisee

(D) None of the above

Correct Answer

(A) All the promisors jointly

[#935] Under Section 20 of the Indian Contract Act, 1872 in case both the parties are under mistake as to matter of fact, the contract:

(A) Is valid

(B) Is invalid

(C) Is void

(D) None of these

Correct Answer

(C) Is void

Indian Contract Act - Study Mode

[#931] X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. 'Z' in law is entitled to recover:

Correct Answer

[#932] Which of the following is not true?

Correct Answer

[#933] Which of the following is correct under the Indian Contract Act, 1872?

Correct Answer

[#934] In case of joint promise, generally the performance must be by:

Correct Answer

[#935] Under Section 20 of the Indian Contract Act, 1872 in case both the parties are under mistake as to matter of fact, the contract:

Correct Answer