Indian Contract Act - Study Mode

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[#131] A lends rupees one lakh to B and B promises to repay it with interest @ 12% per annum after one year. The agreement also provides that if the amount is repaid within six months, the rate of interest will be 10%. The stipulation is

(A) Valid

(B) Void

(C) Voidable

(D) Illegal

Correct Answer

(A) Valid

[#132] Which of the following statement is incorrect?

Correct Answer

(A) An agreement made without consideration is void irrespective of the circumstances
(F) Consideration is necessary to create an agency
(J) A breach of warranty sometimes results into repudiation of contract

[#133] If parties to an agreement are under a mistake as to a matter of fact essential to the agreement:

(A) The agreement is void

(B) The agreement is voidable at the instance of both the parties

(C) The agreement is binding between the parties

(D) The agreement is voidable only at the instance of the party making the offer and not at the instance of the party accepting the offer

Correct Answer

(A) The agreement is void

[#134] Under Indian law consideration may be:

(A) Adequate

(B) Something having same value in eyes of law

(C) Equivalent to promise

(D) Neither A nor B

Correct Answer

(B) Something having same value in eyes of law

[#135] Match List-I with List-II and select the correct answer using the given below: List-I List-II a. Proposal 1. Grainger & Son v. Gough b. Invitation to make an offer 2. Maharashtra Rajya Sahakari Kappas Utpadak Panan Mahasabha Ltd. v. Manga Bhaga Chaudhary c. Communication of acceptance of offer by acceptor himself 3. Henthorn v. Fraser d. Revocation of offer 4. Powell v. Lee

(A) a-2, b-1, c-4, d-3

(B) a-1, b-2, c-4, d-3

(C) a-2, b-1, c-3, d-4

(D) a-4, b-3, c-1, d-2

Correct Answer

(A) a-2, b-1, c-4, d-3