MCQ for CA Foundation LAW - PART 1 - BUSINESS LAW - Chapter 1 THE INDIAN CONTRACT ACT, 1872

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 2 - Business Laws and Business Correspondence and Reporting - PART 1 - BUSINESS LAW - Chapter  1: THE INDIAN CONTRACT ACT, 1872 - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  A proposal when accepted becomes a

  1. Promise
  2. Contract
  3. Offer
  4. Acceptance

Answer: 1

Q:2  Past consideration means

  1. Consideration and promise should move together
  2. Executed consideration
  3. Consideration is provided prior to the making of the contract
  4. Invalid consideration

Answer: 3

Q:3  A paid Rs 5000 to a Government servant to get him a contract for the canteen. The Government servant could not get the contract. Can A recover Rs 5000 paid by him to the Government servant?

  1. Yes, the agreement is opposed to public policy
  2. No, the agreement is opposed to public policy
  3. No, the agreements are a voidable agreement and can be avoided by A
  4. No, the agreement falls under section 23 and hence illegal

Answer: 4

Q:4  A enters into an agreement with B who has robbed A of Rs 10,000 to drop prosecution against him in consideration of B’s returning Rs 8,000. Afterwards B refused to pay. A can get from B

  1. Rs 8,000
  2. Rs 100
  3. Nothing
  4. Rs 10,000 plus damages

Answer: 3

Q:6 Rani contracted to teach dance to Shruti. Shruti paid an advance of Rs 5000 for the same. Rani met with an accident and will not be able to dance. She has a daughter as her legal representative. Shruti can

  1. force her daughter to teach her dance
  2. rescind the contract and ask for refund of money
  3. rescind the contract but cannot ask for refund
  4. can sue Rani for non-performance of contract

Answer: 2

Q:7  A contracted to supply 200 bags of rice to B on 30th December, 2019. After supplying 20 bags of rice. A informed B that he will not supply remaining bags of rice to B. In this case,

  1. There is anticipatory breach of contract
  2. There is actual breach of contract
  3. Both of the above
  4. None of the above

Answer: 2

Q:8  A swiggy man wrongly delivered the food to Mr. Ishaan. Ishaan who took the delivery ate the food immediately. The swiggy boy returned soon once he got information about wrong delivery. Ishaan should make the payment as his case is deemed to be a quasi-contract under:

  1. Claim for necessaries supplied to persons incapable of contracting
  2. responsibility of finder of goods
  3. Payment by an interest person
  4. obligation of person enjoying benefits under non-gratuitous act

Answer: 4


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