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Unconscionable Contracts MCQ Guide

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0% found this document useful (0 votes)
25 views11 pages

Unconscionable Contracts MCQ Guide

Uploaded by

Devayani M
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q.

1:- The person making the proposal is called the and the person
accepting the proposal is called :

a. Proposor/ Proposee
b. Promisee/ Promisor
c. Promisor/Promisee
d. Proposee/ Proposor

Q.2:- Every promise and every set of promises, forming the


consideration for each other, is called as:

a. A voidable contract
b. A contract
c. A void contract
d. An agreement

Q.3:- An agreement enforceable by law is:

a. A voidable contract
b. Void
c. A contract
d. A void contract

Q.4:- An agreement which is enforceable by law at the option of


other or others is:

a. A contract
b. A voidable contract
c. Void
d. A void contract

Q.5:- The Indian Contract Act, 1872 extends to:

a. The State of Jammu and Kashmir.


b. The Union Territories of India
c. The whole of India except the State of Jammu and Kashmir.
d. The whole of India.

Q.6:- The Act which deals with the matters relating to the
contract is titled as:

a. The Contract Act, 1872


b. The Indian Contract Act, 1872
c. The Indian Contract Act, 1882
d. The Indian Contract Act, 1972
Q.7:- An agreement not enforceable by law is said to be:

a. A contract
b. Void
c. A voidable contract
d. A void contract

Q.8:- When the communication of a proposal is complete:

a. When it do not comes to the knowledge of the person to whom it is


made.
b. When it comes to the knowledge of another person that some
communication was made to the concerned person.
c. When it comes to the knowledge of the person to whom it is not
made.
d. When it comes to the knowledge of the person to whom it is made.

Q.9:- When an acceptance may be revoked:

a. An acceptance may be revoked at any time before the communication


of the acceptance is complete as against the proposer, but not
afterwards.
b. An acceptance may be revoked at any time before the communication
of the acceptance is complete as against the acceptor, but not
afterwards.
c. An acceptance may be revoked at any time before the communication
of the acceptance is incomplete as against the acceptor, but not
afterwards.
d. An acceptance may be revoked at any time after the communication
of the acceptance is complete as against the acceptor, but not
afterwards.

Q.10:- In order to convert a proposal into a promise, the


acceptance must:

a. Be absolute and qualified.


b. Be expressed in some usual and reasonable manner, unless the
proposal prescribes the manner in which it is to be accepted.
c. Be absolute and unqualified
d. Both B and C only.

Q.11:- When a proposal may be revoked:


a. A proposal may be revoked at any time when the communication of
its acceptance is complete as against the proposer, but not
afterwards.
b. A proposal may be revoked at any time before the communication of
its acceptance is incomplete as against the proposer, but not
afterwards.
c. A proposal may be revoked at any time before the communication of
its acceptance is complete as against the proposer, but not
afterwards.
d. A proposal may be revoked at any time after the communication of its
acceptance is complete as against the proposer, but not afterwards.

Q.12:- A contract which ceases to be enforceable by law becomes


void when it ceases to be:

a. Void
b. Voidable
c. Enforceable
d. Unenforceable

Q.13:- The Indian Contract Act,1872 which was enacted on 25


April, 1872 came into force with effect from:

a. 1st May, 1872


b. 1st September, 1872
c. 1st October, 1872
d. 1st November, 1872

Q.14:- A ‘proposal’ is defined as:

a. When one person signifies to another his willingness to do or to


abstain from doing anything, with a view to obtaining the assent of
that other to such act or abstinence, he is said to make a proposal.
b. When one person signifies to another his willingness to do, with a view
to obtaining the assent of that other to such act or abstinence, he is
said to make a proposal.
c. When one person signifies to another his willingness to do or to
abstain from doing anything, he is said to make a proposal.
d. When one person signifies to many persons his willingness to do or to
abstain from doing anything, with a view to obtaining the assent of
that other to such act or abstinence, he is said to make a proposal.

Q.15:- An agreement was entered into with the minor. This is


agreement is:

a. Void
b. Voidable
c. Bad
d. Illegal

Q.16:- Where a minor has entered into a contract for purchase of


necessary items. In such cases:

a. The minor is not personally liable.


b. Minor’s estates are liable to make good.
c. Minor’s guardian is liable.
d. The minor is personally liable

Q.17:- 6. Consent is defined as:

a. Two or more persons are said to consent when they agree.


b. Two or more persons are said to consent when they agree upon the
same thing in the same sense.
c. Two or more persons are said to consent when they understand the
same thing.
d. Two or more persons are said to consent when they agree upon the
same thing.

Q.18:- Consent is said to be free when it is not caused by:

a. Very much influence


b. Undue influence
c. Slightly influence
d. Influence

Q.19:- A, being in debt to B, the money lender of his village,


contracts a fresh loan on terms which appear to be
unconscionable. This will be termed as:

a. Fraud
b. Coercion
c. Undue influence
d. Misrepresentation

Q.20:- When consent to an agreement is caused by coercion,


fraud or misrepresentation, the agreement is a contract :

a. Voidable at the option of the party whose consent was so cause.


b. Illegal
c. Depends upon the circumstances of the case.
d. Void
Q.21:- If the consent was caused by misrepresentation or by
silence, fraudulent within the meaning of section 17, the contract,
nevertheless, if the party whose consent was so caused had the
means of discovering the truth with ordinary diligence:

a. may be voidable
b. may not be not voidable
c. is voidable
d. is not voidable

Q.22:- A fraud or misrepresentation which did not cause the


consent to a contract of the party on whom such fraud was
practised, or to whom such misrepresentation was made, does
not render a contract:

a. Void
b. Voidable
c. Bad
d. Illegal

Q.23:- Where both the parties to any agreement are under a


mistake as to a matter of fact essential to the agreement,

a. The agreement is voidable.


b. The agreement can’t be enforceable at law.
c. The agreement is void.
d. The agreement is not void.

Q.24:- When consent to an agreement is caused by undue


influence, the agreement is a contract

a. Bad
b. Void
c. Illegal
d. Voidable at the option of the party whose consent was so cause

Q.25:- What is a sound mind for the purposes of contracting:

a. A person is said to be of sound mind for the purposes of making a


contract, if, at the time when he makes it, he is capable of
understanding it and of forming a rational judgement as to its effect
upon his interest.
b. A person is said to be of sound mind for the purposes of making a
contract, if, at the time when he makes it, he is capable of
understanding it.
c. A person is said to be of sound mind for the purposes of making a
contract, if, he is capable of understanding it and of forming a rational
judgement as to its effect upon his interest.
d. A person is said to be of sound mind for the purposes of making a
contract, if, at any time when he makes it, he is capable of
understanding it and of forming a rational judgement as to its effect
upon his interest.

Q.26:- Who are competent to contract:

a. Every person is competent to contract who is of the age of majority


according to the law to which he is subject, and who is of sound mind
and is not disqualified from contracting by any law to which he is
subject.
b. Every person is competent to contract who is of the any age and who
is of sound mind and is not disqualified from contracting by any law to
which he is subject.
c. Every person is competent to contract who is of the age of majority
according to the law to which he is subject.
d. Every person is competent to contract who is of the age of majority
according to the law to which he is subject, and who is of sound mind.

Q.27:- What agreements are contracts:

a. All agreements are contracts if they are made by the free consent of
parties competent to contract, for a lawful consideration and with a
lawful object, and are not hereby expressly declared to be void.
b. All agreements are contracts if they are made by the free consent of
parties competent to contract, for a lawful consideration and with a
lawful object, and may or may not be expressly declared to be void.
c. All agreements are contracts if they are made by the consent of
parties competent to contract, for a lawful consideration and with a
lawful object, and are not hereby expressly declared to be void.
d. All agreements are contracts if they are made by the free consent of
parties competent to contract, for any object, and are not hereby
expressly declared to be void.

Q.28:- Every agreement by which any party thereto is restricted


absolutely from enforcing his rights under or in respect of any
contract, by the usual legal proceedings in the ordinary tribunals,
or which limits the time within which he may thus enforce his
rights:

a. Is valid.
b. Is voidable
c. Is void.
d. Is illegal

Q.29:- The agreements which are in restraint of trade are;

a. Valid
b. Illegal
c. Void
d. Voidable

Q.30:- The consideration must be:

a. Adequate
b. Must be adequate
c. Need not be adequate
d. Substantially adequate

Q.31:- An agreement in restraint of the marriage of a major


persons is:

a. Legal
b. Illegal
c. Void
d. Voidable

Q.32:- If any part of a single consideration for one or more


objects, or any one or any part of any one of several
considerations for a single object, is unlawful:

a. The agreement is void.


b. The agreement is voidable.
c. The agreement is enforceable.
d. The agreement is unenforceable.

Q.33:- A contract is not voidable because it was caused by a


mistake as to any law in force in India; but mistake as to a law
not in force in India has the same effect as:

a. A mistake of case
b. A mistake of fact
c. A mistake of law
d. A mistake of understanding

Q.34:- A contract is not voidable merely because it was caused by


one of the parties to it being under a mistake as to:
a. A mistake of fact
b. A mistake of law
c. A mistake of case
d. A mistake of understanding

Q.35:- The consideration or object of an agreement is lawful,


unless:

a. The Court regards it as immoral, or opposed to public policy.


b. It is forbidden by law or Is of such a nature that, if permitted, it would
defeat the provisions of any law.
c. Is fraudulent or involves or implies injury to the person or property of
another.
d. All of the above

Q.36:- An erroneous opinion as to the value of the things which


forms the subject-matter of the agreement, is not to be deemed:

a. A mistake as to a matter of law


b. A mistake as to a matter of fact.
c. A mistake of circumstances
d. A mistake of nature of transactions

Q.37:- A and B make a contract grounded on the erroneous belief


that a particular debt is barred by the Indian Law of Limitation:

a. The contract illegal.


b. The contract is not voidable.
c. The contract is voidable.
d. The contract is void.

Q.38:- The consideration may be:

a. Past
b. Present
c. Future
d. All the options are correct.

Q.39:- A ‘contingent contract’ is a contract to do or not to do


something, if some event collateral to such contract:

a. Happened or will not happen


b. Does or does not happen
c. May or may not happen
d. None of the above.
Q.40:- If the event becomes impossible, such contracts becomes:

a. Illegal
b. Bad
c. Void
d. Voidable

Q.41:- A wagering contract is .................. whereas a contingent


contract is........................ :

a. Void/valid
b. Valid/void
c. Valid/voidable
d. Voidable/valid

Q.42:- A agrees to pay B Rs 10000, if two straight lines should


enclose a space. The agreement is.....................:

a. Void
b. Voidable
c. Valid
d. Illegal

Q.43:- Contingent contracts to do nor not to do anything, if a


specified uncertain event happened within a fixed time,
become .............., if, at the expiration of the time fixed, such
event has not happened, or if, before the time fixed, such event
becomes impossible:

a. Bad
b. Valid
c. Void
d. Voidable

Q.44:- Where a promisor has made an offer of performance to


promisee and the offer has been accepted, such offer must fulfil
the condition:

a. If the offer is an offer to deliver anything to the promise, the promise


must have a reasonable opportunity of seeing that the thing offered is
the thing which the promisor is bound by his promise to deliver.
b. It must be unconditional
c. It must be made at a proper time and place
d. All of the above.
Q.45:- Where two or more persons have made a joint promise, the
promisee may in the absence of the express agreement to the
contrary, compel to perform the whole contract:

a. Severally
b. Jointly
c. Jointly and severally
d. Jointly or severally as per the desire of the promise

Q.46:- An agreement to do impossible act in itself is:

a. Bad
b. Void
c. Valid
d. Voidable

Q.47:- Where persons reciprocally promise, firstly, to do certain


things which are legal, and, secondly, under specified
circumstances, to do certain other things which are illegal, the
first set of promise is a ............... , but the second is a ................
:

a. Void agreements/ contract


b. void contract/agreement
c. Contract/void agreement
d. Contract/voidable contract

Q.48:- Where there are several amounts due to recover from the
debtor then how a creditor can appropriate the money deposited
by the debtor towards the time barred debts:

a. Where there are no other circumstances indicating to which debt the


payment is to be applied.
b. Where the debtor has omitted to intimate.
c. The creditor can’t appropriate the amount so credited towards the
time barred debts.
d. Option A and B both are correct.

Q.49:- When an agreement is discovered to be void, or when a


contract becomes void, any person who has received any
advantage under such agreement or contract is:

a. To make compensation for it, to the person from whom he received it.
b. Bound to restore it.
c. Need not to do anything in this regard.
d. Options A and B are correct.

Q.50:- In which circumstances the original contract need not be


performed:

a. If the parties to a contract agree to alter it.


b. If the parties to a contract agree to substitute a new contract.
c. If the parties to a contract agree to rescind it.
d. All of the above.

1 2 3 4
1 C c d c a
1 1 1 1
1 2 3 4
2 D A B A A
2 2 2 2
1 2 3 4
3 C B C B C
3 3 3 3
1 2 3 4
4 D A D A D
4 4 4 4
1 2 3 4
5 C A A D D
5 5 5 5
1 2 3 4
6 B A A B B
6 6 6 6
1 2 3 4
7 B B A B C
7 7 7 7
1 2 3 4
8 D B A D D
8 8 8 8
1 2 3 4
9 B C C B D
9 9 9 9
1 2 3 4 5
d A c c D
0 0 0 0 0

Common questions

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The key enforceability criteria for a contract per the Indian Contract Act, 1872 include the agreements being made by the free consent of parties who are competent to contract, for a lawful consideration, with a lawful object, and not declared void by the Act. The agreement must also not be made under coercion, undue influence, fraud, misrepresentation, or mistake unless these render it voidable at the option of the aggrieved party .

A void contract is an agreement not enforceable by law, whereas a voidable contract is one that is enforceable by law at the option of one or more of the parties involved. A key distinction is that voidable contracts remain valid until annulled, whereas void contracts are null from inception and have no legal effect. An agreement becomes a void contract when it ceases to be enforceable by law, while a voidable contract can be canceled if consent was attained by coercion, fraud, or misrepresentation .

A proposal under the Indian Contract Act, 1872 can be revoked before the communication of its acceptance is complete as against the proposer, but not afterwards. This implies that any revocation must occur before the acceptor has completely communicated their acceptance, solidifying the formation of a contract .

The Indian Contract Act, 1872 considers an agreement void if its consideration or object is immoral or opposed to public policy, or if it involves fraud, injury to person or property, is forbidden by law, or would defeat the provisions of any law if allowed. Examples include contracts in restraint of trade or marriage, which are void due to their adverse impact on public policy .

Consent to a contract is deemed not free if it is caused by coercion, undue influence, fraud, misrepresentation or mistake, as laid out in the Indian Contract Act, 1872. This indicates that the agreement would be voidable at the option of the party whose consent was compromised by any of these factors .

For an agreement to qualify as a contract under the Indian Contract Act, 1872, it must be made by the free consent of parties who are competent to contract, for a lawful consideration, with a lawful object, and must not be expressly declared void. This is specified in the section that states "All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void" .

A contingent contract is defined as a contract to perform or abstain from performing something based on the occurrence of an uncertain event. In contrast, a wagering contract, primarily characterized by betting on the outcome, is void under Indian law. The fundamental difference lies in the fact that contingent contracts are based upon the happening of a collateral event, whereas wagering contracts are speculative bets where each party stands to win or lose upon an uncertain event that is not collateral but essential to the contract's purpose .

A person is considered to have a sound mind for the purpose of making a contract if they are capable of understanding the terms of the agreement and form a rational judgment as to its effect on their interests at the time they make it. This definition ensures that only those who are mentally capable and aware of the implications can be legally bound by contractual agreements .

Agreements made with minors under the Indian Contract Act, 1872 are void. This is because minors are not deemed competent to enter contracts, which implies that there are no legal obligations or liabilities tied to them in most agreements. This distinctive protection preserves minors from being legally bound by agreements that they may not fully comprehend .

Under the Indian Contract Act, 1872, a mistake regarding facts essential to the agreement may render a contract void. However, a mistake of law in force in India does not void a contract, while a mistake about a foreign law is treated similarly to a mistake of fact. Additionally, a contract is not voidable merely because it resulted from one party's mistake about the law .

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