HomeLegal ReasoningContract Act Practice Questions for CLAT 2020

Contract Act Practice Questions for CLAT 2020

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Contract Act Practice Questions for CLAT 2020

Contract Act Practice Questions for CLAT 2020

Question: Indentify the correct option in the following questions of Law of Contract using ordinary prudence

  • Which of the following is an exception to the ‘privity’ rule

  • Trust

  • Family arrangements and marriage settlements

  • Acknowledgement and estoppels

  • All the above

Ans. d

Rationale: privity to contract means only parties to contract have a right to sue in case of breach but when the third party to a contract is due to trust, family arrangement, estoppel etc. they can also exercise such right.

  • When there are two obligations on each party to the contract at the time of the formation of the contract, it is called

  • Unilateral contract

  • Executory contract

  • Bilateral contract

  • Voidable contract

Ans. c

Rationale: When there are two obligations on each party to the contract at the time of the formation of the contract, it is known as bilateral contract

  • A contract implied by law is known as

  • Contingent contract

  • Quasi contract

  • Expressed contract

  • Implied contract

Ans. d

Rationale: An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties.

  • On the face of the ticket for a journey the words ‘for conditions see back’ are printed​​ in small print, the passenger

  • May not take note of the conditions

  • Is not bound by the condition

  • Is bound by the conditions whether he takes care to read them or not

  • None of the above

Ans. c

Rationale: the conditions are expressly written on the ticket thus passengers are bound by them.

  • Where a corporation enters into a contract beyond the scope of the objects, such a contract is said to be

  • Intra vires

  • Ultra vires

  • Ultimo vires

  • Infra vires

Ans. b

Rationale: ultra vires means beyond the powers

  • The starting point of a contract is

  • Agreement

  • Enforceability

  • Promise

  • Proposal

Ans. d

Rationale: the contract begins with the valid offer

  • Signifying willingness by A to B to do or abstain from doing something with a view to obtain the assent of B is called

  • Contract

  • Proposal

  • Agreement

  • None of the above

Ans. b

Rationale: According to the Indian Contract Act 1872, proposal is defined in Section 2 (a) as “when one person will signify to another person his willingness to do or not do something (abstain) with a view to obtain the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.”

  • Goods displayed in a supermarket with a price tag is

  • Proposal

  • Offer

  • Invitation to offer

  • None of the above

Ans. c

Rationale: Goods displayed in a supermarket with a price tag is an invitation to offer and not an offer

  • When goods are displayed in a shop window with price tags attached to them the offer comes from the

  • Offeror​​ 

  • Shop owner

  • General public

  • Customer

Ans. d

Rationale: Goods displayed in a supermarket with a price tag is an invitation to offer thus the offer comes from customer

  • The difference between an advertisement for sale and a proposal is

  • Every case will be viewed according to the circumstances

  • That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not

  • No difference at all

  • None of the above

Ans. b

Rationale: advertisement to sale is similarly to invitation to offer and offer is the promise to perform the contract

  • A notice in the newspapers inviting tenders is

  • A proposal​​ 

  • An invitation to proposal

  • A promise

  • An invitation for negotiation

Ans. a

Rationale: notice in the newspapers inviting tenders is an invitation to offer and not an offer

  • ​​ An acceptance of an offer must be by

  • Offeree

  • Offeror

  • Any person on behalf of the offeree

  • Any person on behalf of the offeror

Ans. a

Rationale: acceptance of an offer is done by offeree

  • ​​ Which one of the following statements is correct?

The objective of consideration for a contract is that the contracting parties

  • Are capable of performing the contract

  • Do not require the Court’s intervention for the performances of the contract

  • Have expressed their consent freely

  • Have intended that the contract should be attended with the legal consequences

Ans. d

Rationale: the intention of the contracting parties should be to create legal obligations followed by a contract

  • ​​ A daughter promises to give maintenance to her uncle in consideration of her mother making a gift of certain properties to her. The daughter pleads lack of consideration when the uncle seeks to enforce the contract. She says that the uncle is a stranger to the consideration and so he cannot enforce the contract. The daughter​​ 

  • Will succeed because the uncle being a stranger to the consideration cannot enforce it

  • Will not succeed because the uncle​​ is a near relative and in such cases consideration is not necessary

  • Cannot succeed because according to the Indian Contract Act consideration might move from any person

  • Will succeed because the uncle is a stranger to contract

Ans. c

Rationale: in Indian Contract Act there is no privity of consideration

  • ​​ An agreement made to sell a cargo of corn, which was not in existence at the time of contract is

  • Voidable at the option of either party

  • A valid agreement

  • A void agreement

  • An unenforceable agreement

Ans. b

Rationale: in a contract there can be consideration of past, present and future.

 

 

 

 

Read to know All About CLAT 2020

Read our previous post on offences against property under ipc here.

Take our test on offences against property under ipc here.

Read our post on the Landmark Judgements of 2019-2020.

Read our post on Elements of Crime.

Read CLATapult’s post on offer and acceptance here. Also, try their mocks for more legal reasoning practice questions

Aditya Anand
Aditya Anand
Aditya is 93.1% sure that he knows Japanese. We think he speaks Japanese in Bhojpuri accent.

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Golden Gate University - upGrad
Golden Gate University - upGrad
Lawctopus Law School
Lawctopus Law School

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