Top 20 conceptual + MCQ-based questions from the Indian Contract Act, 1872, with correct answers and brief explanations Part2

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Top 20 conceptual + MCQ-based questions (Q11 to Q30) from the Indian Contract Act, 1872, with correct answers and brief explanations

Part 2: Consent, Coercion, Undue Influence, Fraud – Sections 11 to 19

Q11. Who is competent to contract under Section 11?

(a) Minor
(b) Person of unsound mind
(c) Major of sound mind
(d) None of the above

Answer: (c) Major of sound mind
Explanation: Section 11 states that a person who is of the age of majority and sound mind is competent.

Q12. A contract entered into by a person of unsound mind is:

(a) Valid
(b) Voidable
(c) Void
(d) Enforceable

Answer: (c) Void
Explanation: Section 12 explains that unsound mind renders a person incompetent to contract.

Q13. Consent is defined in which section?

(a) Section 10
(b) Section 11
(c) Section 12
(d) Section 13

Answer: (d) Section 13
Explanation: Section 13 defines consent as parties agreeing upon the same thing in the same sense.

Q14. When is consent considered free?

(a) When influenced by coercion
(b) When obtained by fraud
(c) When not caused by coercion, undue influence, fraud, misrepresentation, or mistake
(d) When not in writing

Answer: (c)
Explanation: Section 14 defines free consent.

Q15. Coercion includes:

(a) Threat to file a civil case
(b) Lawful threat
(c) Threat to commit a crime
(d) Force under parental pressure

Answer: (c)
Explanation: Section 15 defines coercion as threat to commit an act forbidden by IPC.

Q16. Which is not a part of fraud?

(a) Active concealment of fact
(b) Innocent misstatement
(c) Promise made without intention to perform
(d) False suggestion

Answer: (b)
Explanation: Misrepresentation is different from fraud; innocent false statements fall under misrepresentation.

Q17. “Undue Influence” under Section 16 includes:

(a) Dominating a person’s will
(b) Promise without consideration
(c) Threat of legal action
(d) Fraudulent misstatement

Answer: (a)
Explanation: Undue influence means taking unfair advantage due to position of dominance.

Q18. Misrepresentation involves:

(a) Fraudulent intent
(b) Innocent misstatement believed to be true
(c) Coercion
(d) Illegal act

Answer: (b)
Explanation: Section 18 defines misrepresentation as false assertion without intention to deceive.

Q19. A contract caused by coercion is:

(a) Void
(b) Illegal
(c) Voidable
(d) Valid

Answer: (c)
Explanation: Section 19: Contract induced by coercion is voidable at the option of the aggrieved party.

Q20. What is the effect of fraud when the party had means to discover the truth?

(a) Contract is void
(b) Contract is voidable
(c) Contract is illegal
(d) Contract is not voidable

Answer: (d)
Explanation: Exception to Section 19 states if the truth could be discovered with ordinary diligence, contract is not voidable.

Part 3: Mistake, Lawful Object, and Consideration – Sections 20 to 25

Q21. When both parties are under a mistake of fact, the contract is:

(a) Valid
(b) Voidable
(c) Void
(d) Illegal

Answer: (c)
Explanation: Section 20 – mutual mistake of fact makes a contract void.

Q22. Mistake of law of India makes contract:

(a) Void
(b) Voidable
(c) Valid
(d) Illegal

Answer: (c)
Explanation: Section 21 – mistake of Indian law does not affect contract validity.

Q23. An agreement without consideration is:

(a) Valid
(b) Voidable
(c) Void
(d) Enforceable

Answer: (c)
Explanation: Section 25 – no consideration = void, except in certain cases.

Q24. A promise to pay time-barred debt is valid if:

(a) Oral
(b) Made in court
(c) In writing and signed
(d) Not communicated

Answer: (c)
Explanation: As per Section 25(3), such a promise must be written and signed.

Q25. An agreement to do an immoral act is:

(a) Voidable
(b) Void
(c) Valid
(d) Enforceable

Answer: (b)
Explanation: Section 23 – object must be lawful; immoral acts make agreement void.

Q26. Which one of the following is a lawful consideration?

(a) Bribe
(b) Past illegal act
(c) Promise to marry someone else’s spouse
(d) Services rendered at promisor’s request

Answer: (d)
Explanation: Valid consideration must be lawful and at promisor’s desire.

Q27. Agreement in restraint of marriage is:

(a) Valid
(b) Voidable
(c) Void
(d) Illegal

Answer: (c)
Explanation: Section 26 – all such agreements are void (except for minors).

Q28. Agreement in restraint of trade is:

(a) Voidable
(b) Valid
(c) Void
(d) Enforceable only if mutual

Answer: (c)
Explanation: Section 27 – such agreements are void except for goodwill sales.

Q29. Agreement in restraint of legal proceedings is:

(a) Void
(b) Voidable
(c) Valid
(d) Enforceable only when oral

Answer: (a)
Explanation: Section 28 – agreements restricting legal rights are void.

Q30. A wagering agreement is:

(a) Voidable
(b) Void
(c) Valid
(d) Illegal

Answer: (b)
Explanation: Section 30 – agreements by way of wager are void.


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