Contract act 1872

1.

The Contract Act of 1872 was enacted on

A.
C.

25th April, 1872

25th June, 1872

B. 25th May, 1872

D. None of above

Answer: Option A
2.

The Contract Act 1872 was enforced on

A.
C.

First day of July, 1872

1st September, 1872

B.
D.

First August, 1872

None of these

Answer: Option C
3.
When one person signifies to another his willingness to do or to
abstain from doing any thing with a view to obtaining the assent of
that other person to such act or abstinence he is said to make a
A.
C.

Proposal
Both (a) and (b)

B.
D.

Promise
None of these

Answer: Option A
4.
When the person to whom the proposal is made signifies his assent
thereto the proposal is said to be accepted than its called
A.
C.

Proposal
Agreement

B.
D.

Promise
None of these

Answer: Option B
5.

The person making the proposal is called

A.
C.

Promiser
Both of above

B.
D.

Promisee
None of above

Answer: Option A
6.

The person to whom proposal is made is called

A.
C.

Promisor
Both of above

B.
D.

Promisee
None of above

Answer: Option B
7.
Every promise and every set of promises forming the consideration
for each other
A.
C.

A proposal
An agreement

B.
D.

An offer
None of above

Answer: Option C
8.

"Reciprocal" Contracts means

A.
C.

One sided contracts

Trilateral contracts

B.
D.

Bilateral contracts
None of above

Answer: Option B
9.
Promise which forms the consideration or part of the
consideration for each other is called
A.
Simple promise
C.
Reciprocal promise
Answer: Option C

B.
D.

Conditional promise
None of above

10.

An agreement not enforceable by law is called

A.
C.

Void agreement
Voidable agreement

B.
D.

Valid agreement
None of above

Answer: Option A
11.

An agreement enforceable by law is called

A.
An agreement
B.
C.
Both (a) and (b) D.
Answer: Option B

Contract
None of above

12. An agreement which is enforceable by law at the option of one or

more of the parties there to but not at the option of other or others
is
A.
A void contract
C.
A valid contract
Answer: Option B

B.
D.

A voidable contract
All of above

13. A contract which ceases to be enforceable by law becomes void

when it ceases to be enforceable is called

A.
C.

Valid contract
Void contract

B.
D.

Voidable contract
None of above

Answer: Option C
14. A proposes by letter to sell a house to B The Communication of
the proposal is complete
A.
C.

When A make such proposal

When B accepts the proposal
Both (a) and (b)
D.
None of above

B.

Answer: Option B
15.

The Contract Act, deals with

A.
C.

Communication of contract B.
Acceptance of contracts
Revocation of proposals and acceptances
None of above

D.

Answer: Option C
16.

A proposal may be revoked at any time

A.
Before the communication of its acceptance
Before the rejection of its communication
C.
Both (a) and (b)
D.
None of above

B.

Answer: Option A
17.
be

In order to convert a proposal into a promise the acceptance must

A.
C.

Conditional
Absolute

B.
D.

Unconditional
None of above

Answer: Option C
18. All the agreements are contracts if they are made by free consent
of the parties competent to contract for a _____ consideration and
object
A.
Any
B.
Lawful
C.
Unlawful
D.
None of above
Answer: Option B
19.

The age limit for making a contract is

A.
C.

16 years
Majority

B.
D.

17 years
None of above

Answer: Option C
20.
A.
C.

A contract made by lunatic is____ in the eye of Law

Void B.
Valid
Absolute
D.
None of above

Answer: Option A
21.

Free consent is_____ element for contract

A.
C.

Essential
Exceptional

B.
D.

Discretional
None of above

Answer: Option A
22.

The Term "Consent" means

A.
Voluntary accordance with or concurrence in what is done or
proposed by another
B. Free
mind
C.
Free will
D. All of the above
Answer: Option D
23.

The term "Coercion" means

A.
Committing or threatening to commit any act forbidden by the
Pakistan Penal Code
B.
Compulsion
C.
A unlawful pressure
D.
All of the above
Answer: Option D
24. The committing or threatening to commit any act forbidden by the
Pakistan Penal Code, or the unlawful detaining or threatening to
detain any property to the prejudice of any person whatever with
intention of causing any person to enter into an agreement is called
A.
C.

Free consent
Both (a) and (b)

B.
D.

Coercion
None of above

Answer: Option B
25.

Undue influence make a contract

A.
C.

Void B.
Valid D.

Voidable
None of above

Answer: Option A
26. A man enfeebled by disease or age is inclued by B's influence
over him as his medical abendant to agree to pay B, a unreasonable sum
for his professional services

A.
C.

B employees nothing
Both (a) and (b)

B.
D.

B employees undue influence

None of above

Answer: Option B
27.

The term "Fraud" means.

A.

Active concealment of fact with knowledge and belief of the fact

B.
Doing any act fitted to deceive
Both (a) and (b)
D.
None of above

C.

Answer: Option C
28. The suggestion as a fact of that which is not true by one who
does not believe it to be true and the active concealment of a fact by
one having knowledge or believe of the fact is called
A.
C.

Cheating
Misrepresentation

B.
D.

Fraud
None of above

Answer: Option B
29.

Coercion, Fraud and misrepresentation makes contract

A.

Void of the option of the party whose consent was caused

B.
Voidable on the option of the party whose consent so caused
Valid for both sides
D.
None of above

C.

Answer: Option B
30. 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 proceeding in the ordinary tribunal or
which limits the time within which he may thus enforce his right
A.
C.

Valid agreement
Both (a) and (b)

B.
D.

Void agreement
None of above

Answer: Option B
31. A's son has forged B's name to a promissory note. B under threat
of prosecuting A's son obtain a bond from A for the amount of the
forged note. If B sues on this bond
A.
C.

The Court can accept the suit

The Court may set aside the bonds
Both (a) and (b)

B.
D.

None of above
Answer: Option B
32. A intending to deceive B, falsely represents that five hundred
munds of indigo are made annually at A's factory and their by induces
B to buy the factory
A.
C.

The contract is voidable on the part of A

The contract is voidable on the part of B
The contract is voidable on both A and B part
None of above

B.
D.

Answer: Option B
33.

Mistake of fact

A.
B.
C.
D.

Makes a contract voidable

Does not make a contract voidable
Makes a contract void
None of above

Answer: Option B
34.
is

The consideration or object of an agreement is lawful unless it

A.

Forbidden by law
Forbidden by contractors themselves
Forbidden by custom
D.
None of above

C.

B.

Answer: Option A
35. Where both the parties are under mistake as to matter of fact the
agreement is
A.
C.

Void
Valid

B.
D.

Voidable
None of above

Answer: Option A
36. A agrees to buy from B a certain horse. It turns out that the
horse was dead at the time of the bargain though neither party was
aware of the fact the agreement is
A.
C.

Valid
Voidable

B.
D.

Void
Both (a) and (b)

Answer: Option B
37.

Agreement without consideration is

A.
C.

Void B.
Valid D.

Voidable
None of above

Answer: Option A
38. A promises to superintend on behalf of B, a legal manufacture of
indigo and an illegal traffic in other articles, B promises to pay A
salary of 10,000/- rupees year. The agreement is void the object of
A's promise, and consideration for B's promise being in part
A.
C.

Lawful
B.
Both (a) and (b) D.

Unlawful
None of above

Answer: Option B
39. A contract to do or not to do something if some event collateral
to such contract does or does not happen is called
A.
C.

Simple contract
Contingent contract

B.
D.

Complex contract
None of above

Answer: Option C
40.
is

A contract to pay B Rs. 10,000 if B's house is burnt the contract

A.
C.

Simple contract
Contingent Contract

B.
D.

Conditional Contract
None of above

Answer: Option C
41.

The term "Contingent" means.

A.
C.

Possible but not assured

Both (a) and (b)

B.
D.

Doubtful or uncertain
None of above

Answer: Option C
42.

Agreement contingent on impossible events are

A.
C.

Void
B.
Both (a) and (b) D.

Voidable
None of above

Answer: Option A
43. A makes a contract with B to buy B's horse if A survives C. This
contract cannot be enforceed by law

A.
C.

Unless and until C dies in A's life time

Unless and until A dies in C's life time
Both A and C dies
D.
None of above

B.

Answer: Option A
44. A person to whom money has been paid or any thing delivered by
mistake or under coercion
A.
C.

He is bound to return it
It is his discretion if he return
Both (a) and (b)
D.
None of above

B.

Answer: Option A
45. A promises to pay B a sum of money if a certain ship return
within a year. The Contract may be enforced if the ship returns with
the year, and becomes_____ if the ship is burnt within the year.
A.
C.

Void
B.
Both (a) and (b) D.

Voidable
None of above

Answer: Option A
46.

Reciprocal promises should be performed

A.
C.

Like simple contract

Both (a) and (b)

B.
D.

In reciprocal manners
None of above

Answer: Option B
47. When there is breach of contract the party which aggrieved by
breach is entitled for
A.
C.

Compensation against the breacher

Nothing
Registration of criminal Case against the breacher
None of above

B.
D.

Answer: Option A
48.

"Indemnity" means

A.

Security from damage or loss

Security for more profit
An act for protection
Both (a) and (b)

C.

B.

Answer: Option D

D.

49.

A contract by which one party promises to save the other from

loss caused to him by the conduct of the promisor himself or by the

conduct of any other person is called
A.
C.

Surety contract
B.
Contract of indemnity D.

Simple contract
None of above

Answer: Option C
50.

The contract of insurance is infact contract of

A.
C.

Urgency
B.
Both (a) and (b) D.

Indemnity
None of above

Answer: Option B
51.

A guarantee which extend to a series of transactions is called

A.
C.

Special guarantee
Specific guarantee

B.
D.

Continuing guarantee
None of above

Answer: Option B
52. A in consideration that B will employ C in collecting the rent of
B's zamindari, promises B to be responsible, to the amount of 5000
rupees for the due collection and payment by C of those rents. This is
a
A.
C.

Restricted guarantee
Limited guarantee

B.
D.

Continuing guarantee
None of above

Answer: Option B
53. Any guarantee obtained by means of misrepresentation made by the
creditor or with his knowledge and assent concerning a material part
of the transaction is
A.
C.

Valid
B.
Both (a) and (b) D.

Invalid
None of above

Answer: Option B
54.

"Guarantee" means_______

A.

Surety
B.
The word is also used as a name, to denote the contract of
guarantee or the obligation of grantor
C.
All the above
D.
None of above
Answer: Option A
55.

The contract of guarantee is a contract in which a person perform

the promise or discharge the liability of

A.
C.

The contractor
Third person

B.
D.

Stranger
None of above

Answer: Option C
56.

In contract of guarantee the person who gives guarantee is called

A.
C.

Surety
B.
Both (a) and (b) D.

Principal debtor
None of above

Answer: Option A
57. In contract of guarantee the person at whose place guarantee
given is called
A.
C.

Surety holder
B.
Both (a) and (b) D.

Principal debtor
None of above

Answer: Option B
58. A continuing guarantee may at any time be revoked by the surety
as to future transaction by giving notice to
A.
C.

The creditor
B.
Principal debtor
Without giving any notice to any person
None of above

D.

Answer: Option A
59.
is

The Contract Act guarantee obtain by the creditor by concealment

A.
C.

Invalid
B.
Both (a) and (b) D.

Valid
None of above

Answer: Option A
60.

The Contract Act, deals with liabilities of

A.
C.

Surety
B.
Both (a) and (b) D.

Co-sureties
None of above

Answer: Option B
61.

The term "Bailment" means

A.
A delivery of a thing entrusted for some special purpose or
object upon a contract
B.
Delivery of goods free of cost
C.
Delivery of goods without cost for welfare of public
D.

None of above
Answer: Option A
62. The delivery of goods by one person to another for some purpose
upon a contract that they shall when the purpose is accomplished be
returned or otherwise dispose of upon discretion of the delivering
person the contract is called
A.
C.

Indemnity
Contingent Contract

B.
D.

Bailment
None of above

Answer: Option B
63. The person who during the contract of bailment deliver goods is
called
A.
C.

Bailor
B.
Bailee
Both (a) and (b) D.
None of above

Answer: Option A
64. The person to whom goods are delivered according Bailment is
called
A.
C.

Bailor
B.
Both (a) and (b) D.

Bailee
None

Answer: Option B
65. A hires a carriage of B. The carriage is unsafe though B is not
aware of it and A is injured
A.
C.

B is responsible to A for the injury

B is not responsible to A for the injury
No one is responsible to each other
None of above

Answer: Option A
66. The bailment of goods as security for payment of debt or
performance of a promise is called
A.
C.

Pledge
B.
Both (a) and (b) D.

Special bailment
None of above

Answer: Option A
67.

In pledge bailor is called

A.

Pawnor

B.

Pawnee

B.
D.

C.

Both (a) and (b) D.

None of above

Answer: Option A
68.

The term "Pledge" means

A.

A thing which is given as security

A thing which is saled out
Both (a) and (b)
None of above

C.

B.
D.

Answer: Option A
69.

In pledge contract bailee is called

A.
C.

Pawnor
Pledger

B.
D.

Pawnee
None of above

Answer: Option B
70. A person employed to do any act for another or to represent
another in dealings with third person is called
A.
C.

Servant
Agent D.

B.
Labour
None of above

Answer: Option C
71. The person for whom agents do any act or to represents whom is
called
A.
C.

Employer
Managing director

B.
D.

Principal
None of above

Answer: Option B
72. As provided in section 183, any person who is of the age of
majority according to the law to which he is subject and who is of
sound mind may employ
A.
Servant
B.
A Labour
C.
An agent
D.
None of above
Answer: Option C
73.

An unsound person cannot become

A.
C.

An agent
B.
Both (a) and (b) D.

Answer: Option C

Principal
None of above

74. The person acting employed by under the control of the original
gent in the business of the agency is called
A.
C.

Assistant agent B.
Associate agent
Sub-agent D.
None of above

Answer: Option C
75. In spirit of section 189, of the Contract Act agents authority in
an emergency is
A.
Limited depends upon principal permission
B.
Unlimited agent can do all necessary act without principal
permission
C.
Both (a) and (b)
D.
None of above
Answer: Option B
76. A principal is responsible for all the acts of his agent which is
called
A.
C.

Vicarious liability
Both (a) and (b)

B.
D.

Original liability of The Principal

None of above

Answer: Option A
78.

An agent is bound to render proper account to ____ on demand

A.
C.

His principal
Creditor

B.

Sub-agent

Answer: Option A
79 . Article 214 of the Contract Act, bound an agent to communicate
with______ in cases of difficulty
A.
C.

Sub-agent B.
Legal Advisor

Answer: Option B

Principal