1. Which section of the Indian Contract Act defines a proposal?
A. Section 2(a)
B. Section 2(b)
C. Section 2(c)
D. Section 2(d)
Answer: A
Explanation: Section 2(a) states that when one person signifies to another his willingness to do or abstain from doing anything, he makes a proposal. This is the foundation of every contract.

2. Acceptance becomes complete against the proposer when:
A. Acceptance is posted
B. Acceptance is communicated to the proposer
C. Acceptance is written
D. Acceptance is signed
Answer: B
Explanation: As held in Bhagwandas Goverdhandas v. Girdharilal (1966), acceptance becomes complete against the proposer when it comes to his knowledge.

3. Which section deals with consideration?
A. 2(d)
B. 2(e)
C. 10
D. 23
Answer: A
Explanation: Section 2(d) defines consideration as something done or abstained from at the desire of the promisor. Consideration is a key element for enforceability.

4. “No consideration, no contract” is provided under:
A. Section 23
B. Section 24
C. Section 25
D. Section 26
Answer: C
Explanation: Section 25 lays down exceptions where an agreement without consideration is valid, such as natural love, voluntary services, and time-barred debts.

5. The doctrine of privity of contract means:
A. Only parties to a contract can sue upon it
B. Third parties can enforce contracts
C. Contract must be private
D. Confidentiality is compulsory
Answer: A
Explanation: Held in Dunlop Pneumatic Tyre Co. v. Selfridge, privity means only contracting parties have enforceable rights.

6. Which of the following is NOT an essential element of a valid contract?
A. Free consent
B. Consideration
C. Competent parties
D. Written form
Answer: D
Explanation: Writing is not mandatory unless required by law (e.g., mortgage).

7. Consent is defined under:
A. Section 13
B. Section 14
C. Section 15
D. Section 16
Answer: A
Explanation: Section 13 defines consent as parties agreeing upon the same thing in the same sense (consensus ad idem).

8. Free consent excludes all except:
A. Coercion
B. Undue influence
C. Fraud
D. Mistake of law in India
Answer: D
Explanation: Mistake of law in India does not invalidate consent. Others invalidate free consent as per Sections 15–22.

9. Coercion includes:
A. Illegal detention of property
B. Threat of civil suit
C. Persuasion
D. Commercial bargaining
Answer: A
Explanation: Section 15 includes unlawful detaining of property; threat of civil suit is not coercion (Ranganayakamma v. Alwar Setti).

10. Undue influence arises when:
A. One party threatens another
B. One party occupies a dominant position
C. One party deceives another
D. One party mistakes a fact
Answer: B
Explanation: Section 16 defines undue influence; dominant relationships like doctor-patient often invoke presumption.

11. Fraud includes:
A. Silence in all cases
B. Suggestion of a fact not true
C. Mere opinion
D. Puffery
Answer: B
Explanation: Section 17 explains fraud; silence is fraud only when there is duty to speak (Derry v. Peek).

12. Misrepresentation differs from fraud because:
A. Misrepresentation is intentional
B. Misrepresentation is innocent
C. Fraud is always innocent
D. Misrepresentation is criminal
Answer: B
Explanation: Misrepresentation under Section 18 is unintentional; fraud requires intention to deceive.

13. A contract caused by misrepresentation is:
A. Void
B. Voidable
C. Illegal
D. Unenforceable
Answer: B
Explanation: Section 19 makes a contract voidable at the option of the aggrieved party.

14. A mistake of fact by both parties makes the agreement:
A. Valid
B. Void
C. Voidable
D. Illegal
Answer: B
Explanation: Section 20 holds bilateral mistake of essential fact void (Cooper v. Phibbs).

15. A unilateral mistake makes the contract:
A. Void
B. Valid
C. Illegal
D. Voidable
Answer: B
Explanation: As per Section 22, unilateral mistake does not invalidate contracts except in identity cases (Cundy v. Lindsay).

16. Lawful object and consideration are covered under:
A. Section 20
B. Section 21
C. Section 23
D. Section 24
Answer: C
Explanation: Section 23 lists unlawful considerations and objects.

17. An agreement with unlawful object is:
A. Valid
B. Voidable
C. Void
D. Enforceable
Answer: C
Explanation: Agreements with unlawful object are void under Section 23.

18. Agreements in restraint of marriage are:
A. Void
B. Valid
C. Illegal
D. Voidable
Answer: A
Explanation: Section 26 makes restraint of marriage void.

19. Agreements in restraint of trade are:
A. Valid
B. Void
C. Voidable
D. Illegal
Answer: B
Explanation: Section 27 makes them void except in sale of goodwill.

20. The leading restraint of trade case is:
A. Mohori Bibee
B. Derry v. Peek
C. Nordenfelt v. Maxim
D. Lalman Shukla
Answer: C
Explanation: Nordenfelt clarified reasonableness in restraint clauses.

21. Agreements in restraint of legal proceedings are:
A. Void
B. Valid
C. Voidable
D. Unenforceable
Answer: A
Explanation: Section 28 prohibits curtailing legal remedies.

22. Wagering agreements are:
A. Illegal everywhere
B. Void in India
C. Valid contracts
D. Partly valid
Answer: B
Explanation: Section 30 makes wagers void (except horse-racing prize above ₹500).

23. Contingent contracts are covered under:
A. Sections 31–36
B. Sections 10–15
C. Sections 37–45
D. Sections 50–55
Answer: A
Explanation: Contingent contracts depend on the happening or non-happening of an event.

24. A contract contingent on impossible event is:
A. Valid
B. Void
C. Voidable
D. Illegal
Answer: B
Explanation: Section 36 makes such contracts void.

25. Quasi-contracts are based on:
A. Mutual consent
B. Fiction of law
C. Tort principles
D. Criminal principles
Answer: B
Explanation: Sections 68–72 cover obligations resembling contracts (quasi-contracts), based on equity and justice

26. A minor’s agreement under Indian law is:
A. Valid
B. Void
C. Voidable
D. Enforceable with guardian consent
Answer: B
Explanation: As held in Mohori Bibee v. Dharmodas Ghose (1903), a minor’s agreement is absolutely void and cannot be ratified even after attaining majority.

27. A person of unsound mind can enter into a contract when he is:
A. Permanently insane
B. Occasionally of sound mind
C. Under legal guardianship
D. Declared lunatic by court
Answer: B
Explanation: Section 12 states that a person who is usually unsound but occasionally sound can contract during lucid intervals.

28. Consideration must move:
A. Only from the promisee
B. From third party only
C. From promisee or any other person
D. Only from promisor
Answer: C
Explanation: Indian law differs from English law. As per Chinnaya v. Ramaya, consideration may move from a third party.

29. Past consideration in India is:
A. Not valid
B. Valid
C. Illegal
D. Voidable
Answer: B
Explanation: Past consideration is valid (Section 2(d)), unlike English law.

30. An agreement without consideration is void unless it is:
A. In writing
B. Registered
C. Based on natural love and affection
D. Attested by magistrate
Answer: C
Explanation: Section 25(1) allows enforceability if made on natural love and affection between parties standing in near relation and expressed in writing and registered.

31. A promise made to pay a time-barred debt must be:
A. Oral
B. Written and signed
C. Notarized
D. Registered
Answer: B
Explanation: Section 25(3) requires a written and signed promise for paying time-barred debt.

32. “Consent” means:
A. Parties agreeing to a proposal
B. Same thing in the same sense
C. Acceptance of proposal
D. Understanding terms
Answer: B
Explanation: Section 13 defines consent as consensus ad idem.

33. Agreement caused by coercion is:
A. Valid
B. Void
C. Voidable
D. Illegal
Answer: C
Explanation: Section 19 states such agreements are voidable.

34. Threatening to commit suicide amounts to:
A. Misrepresentation
B. Undue influence
C. Coercion
D. Fraud
Answer: C
Explanation: Chikham Ammiraju v. Chikham Seshamma (1917) held threat of suicide as coercion.

35. Undue influence is presumed when:
A. Parties are friends
B. A parent contracts with child
C. Business partners contract
D. Competitors negotiate
Answer: B
Explanation: Section 16(2) presumes undue influence in relationships of domination.

36. Silence amounts to fraud when:
A. Information is public
B. Parties have equal knowledge
C. There is a duty to speak
D. Both parties are businessmen
Answer: C
Explanation: Section 17—duty to disclose arises in fiduciary relationships.

37. In which case was the difference between fraud and misrepresentation clarified?
A. Derry v. Peek
B. Mohori Bibee
C. Lalman Shukla
D. Balfour v. Balfour
Answer: A
Explanation: Derry v. Peek established that fraud requires intent to deceive.

38. A contract is void if both parties are under mistake of:
A. Value
B. Motive
C. Essential fact
D. Opinion
Answer: C
Explanation: Section 20 makes such agreements void.

39. Mistake of law of a foreign country is:
A. Treat as Indian law
B. Treated as a mistake of fact
C. Always void
D. Valid
Answer: B
Explanation: Under Section 21, mistake of foreign law = mistake of fact.

40. The object of an agreement is unlawful if it is:
A. Against public policy
B. Against business interest
C. Against personal interest
D. Opposed to profit
Answer: A
Explanation: Section 23 includes public policy as unlawful.

41. An agreement in restraint of marriage of any person other than a minor is:
A. Valid
B. Void
C. Voidable
D. Illegal
Answer: B
Explanation: Section 26 declares such agreements void.

42. Agreement to sell goodwill with restriction on trade is:
A. Void
B. Valid
C. Illegal
D. Voidable
Answer: B
Explanation: Section 27 allows reasonable restraint in goodwill sale.

43. Legal proceedings cannot be absolutely barred because:
A. Section 28 prohibits it
B. Constitution prohibits it
C. Supreme Court prohibits it
D. Civil law prohibits it
Answer: A
Explanation: Section 28 voids clauses restraining legal remedies.

44. Wagering agreements are:
A. Valid
B. Void
C. Illegal
D. Enforceable in court
Answer: B
Explanation: Section 30 makes wagers void.

45. Lottery agreements are:
A. Enforceable
B. Valid
C. Void
D. Partially valid
Answer: C
Explanation: Lottery = wagering = void.

46. Insurance contracts are not wagers because:
A. Based on indemnity
B. Based on speculation
C. Based on chance
D. Based on gambling
Answer: A
Explanation: Insurance involves insurable interest and indemnity.

47. Contingent contract is based on:
A. Happening or non-happening of event
B. Promise alone
C. Consideration
D. Mere discussion
Answer: A
Explanation: Section 31 defines contingent contracts.

48. When event becomes impossible:
A. Contract becomes void
B. Contract continues
C. Contract becomes voidable
D. Contract becomes illegal
Answer: A
Explanation: Section 32 voids contingent contract when event becomes impossible.

49. Quasi-contract arises when:
A. Consent exists
B. No contract exists
C. Consideration exists
D. Offer is made
Answer: B
Explanation: Quasi-contracts (Sections 68–72) arise without agreement.

50. Claim for necessaries supplied to minor can be made from:
A. Minor’s personal liability
B. Minor’s property
C. Minor’s guardian only
D. Minor’s income
Answer: B
Explanation: Section 68: reimbursement from minor’s property.

51. Finder of goods is treated as:
A. Owner
B. Bailee
C. Agent
D. Trustee
Answer: B
Explanation: Section 71: finder = bailee with responsibilities.

52. “Quantum meruit” means:
A. Reasonable reward
B. Free service
C. Zero compensation
D. Punitive damages
Answer: A
Explanation: Quantum meruit arises when part performance occurs.

53. Breach of contract is governed by:
A. Sections 73–75
B. Sections 68–72
C. Sections 31–36
D. Sections 10–20
Answer: A
Explanation: Section 73 covers damages, 74 penalties, 75 compensation.

54. Damages for breach must be:
A. Remote
B. Reasonable
C. Imaginary
D. Punitive
Answer: B
Explanation: Hadley v. Baxendale—reasonable and foreseeable damages.

55. Section 74 deals with:
A. Compensation for breach
B. Suit for injunction
C. Specific performance
D. Liquidated damages and penalty
Answer: D
Explanation: Section 74 provides reasonable compensation irrespective of penalty label.

56. Contract of indemnity is defined in:
A. Section 124
B. Section 125
C. Section 122
D. Section 126
Answer: A
Explanation: Section 124: indemnity = promise to save from loss.

57. Contract of guarantee includes:
A. One party
B. Two parties
C. Three parties
D. Four parties
Answer: C
Explanation: Section 126: surety, principal debtor, creditor.

58. In guarantee, liability of surety is:
A. Secondary
B. Primary
C. None
D. Optional
Answer: A
Explanation: Surety’s liability arises when debtor defaults.

59. A continuing guarantee covers:
A. One transaction
B. Series of transactions
C. Illegal transactions
D. Void transactions
Answer: B
Explanation: Section 129 defines continuing guarantee.

60. Revocation of continuing guarantee can occur by:
A. Notice
B. Death
C. Both A and B
D. Never
Answer: C
Explanation: Sections 130–131 allow revocation by notice or death.

61. Bailment is defined in:
A. Section 148
B. Section 149
C. Section 150
D. Section 151
Answer: A
Explanation: Bailment = delivery of goods for purpose.

62. Delivery to bailee may be:
A. Actual
B. Constructive
C. Symbolic
D. All of the above
Answer: D
Explanation: Delivery may be actual, constructive, symbolic (Section 149).

63. Duty of bailee to take care is similar to:
A. Minor’s duty
B. Principal’s duty
C. Reasonable man’s duty
D. Creditor’s duty
Answer: C
Explanation: Section 151 imposes reasonable care.

64. Lien means:
A. Right to sell
B. Right to retain possession
C. Right to terminate
D. Right to borrow
Answer: B
Explanation: Lien = retain goods till payment (Sections 170–171).

65. Pledge is a special type of:
A. Indemnity
B. Bailment
C. Guarantee
D. Wager
Answer: B
Explanation: Section 172 defines pledge.

66. Pawnor is:
A. Pledgee
B. Buyer
C. Pledgor
D. Seller
Answer: C
Explanation: Pledgor = pawnor (Section 172).

67. Pawnor can redeem goods:
A. Anytime
B. Before sale
C. After destruction
D. Never
Answer: B
Explanation: Section 177: right of redemption exists before actual sale.

68. Agency is created by:
A. Express agreement
B. Implied agreement
C. Necessity
D. All
Answer: D
Explanation: Section 182–187 allow multiple modes for agency creation.

69. Agent cannot delegate authority unless:
A. He wishes
B. Principal allows
C. It is mechanical
D. Both B and C
Answer: D
Explanation: “Delegatus non potest delegare” with exceptions (mechanical acts).

70. Sub-agent is appointed by:
A. Agent
B. Principal
C. Court
D. Third party
Answer: A
Explanation: Section 191 defines sub-agent appointment.

71. Ratification relates back to:
A. Date of ratification
B. Date of act
C. Date of contract
D. Date of breach
Answer: B
Explanation: Ratification relates back to the date of the agent’s act (Section 196).

72. Consideration is not required for:
A. Indemnity
B. Guarantee
C. Bailment
D. Novation
Answer: C
Explanation: Section 148: bailment can be gratuitous.

73. A contract becomes void when it is:
A. Illegal
B. Impossible
C. Subject matter destroyed
D. All
Answer: D
Explanation: Section 56: supervening impossibility voids contract.

74. Doctrine of frustration is based on:
A. Section 31
B. Section 56
C. Section 73
D. Section 62
Answer: B
Explanation: Section 56 embodies frustration. See Satyabrata Ghose v. Mugneeram Bangur.

75. Novation is covered under:
A. Section 62
B. Section 63
C. Section 56
D. Section 55
Answer: A
Explanation: Section 62 includes novation, alteration, and rescission.

76. Remission means:
A. Increasing obligations
B. Decreasing obligations
C. Substituting obligations
D. Removing obligations
Answer: D
Explanation: Section 63 allows acceptance of lesser sum.

77. Accord and satisfaction relates to:
A. New contract
B. Old obligations
C. Tender and acceptance
D. Both A and C
Answer: D
Explanation: Accord = agreement; satisfaction = performance.

78. Tender must be:
A. Conditional
B. Proper time and place
C. Improper form
D. Optional
Answer: B
Explanation: Section 38 lays requirements for valid tender.

79. Time is essence when:
A. Parties agree
B. Subject matter demands
C. Court infers
D. All
Answer: D
Explanation: Section 55—time may be essence.

80. Anticipatory breach occurs when:
A. Contract ends
B. Party declares unwillingness
C. Party completes contract
D. Party accepts benefit
Answer: B
Explanation: Section 39 covers anticipatory breach.

81. Compensation for mental agony in contract:
A. Always allowed
B. Never allowed
C. Allowed in exceptional cases
D. Mandatory
Answer: C
Explanation: Ghaziabad Development Authority v. Union of India allowed compensation in public authority contracts.

82. Specific performance is generally:
A. Available for all contracts
B. Not granted when damages suffice
C. Mandatory
D. Automatic
Answer: B
Explanation: Specific Relief Act governs equitable relief.

83. Contract to do impossible act is:
A. Void
B. Valid
C. Voidable
D. Illegal
Answer: A
Explanation: Section 56 states agreements to do impossible acts are void.

84. Acceptance by conduct was upheld in:
A. Mohori Bibee
B. Carlill v. Carbolic Smoke Ball Co.
C. Lalman Shukla
D. Felthouse v. Bindley
Answer: B
Explanation: Performance of conditions is acceptance.

85. Silence does not amount to acceptance was held in:
A. Carlill case
B. Felthouse v. Bindley
C. Lalman Shukla
D. Bhagwandas case
Answer: B
Explanation: Silence cannot constitute acceptance.

86. Communication of acceptance is complete when:
A. Posted
B. Received by proposer
C. Written
D. Signed
Answer: B
Explanation: Bhagwandas Goverdhandas v. Girdharilal.

87. Offer can be revoked anytime before:
A. Acceptance posted
B. Acceptance communicated
C. Acceptance written
D. Offer discussed
Answer: B
Explanation: Revocation must reach before acceptance is complete (Section 5).

88. Counter-offer results in:
A. Rejection of original offer
B. Acceptance
C. Continuation
D. Modification
Answer: A
Explanation: Hyde v. Wrench.

89. Proposal lapses by:
A. Death
B. Insanity
C. Time expiry
D. All
Answer: D
Explanation: Section 6 lists modes of lapse.

90. Invitation to treat is:
A. Offer
B. Proposal
C. Pre-offer communication
D. Acceptance
Answer: C
Explanation: Display of goods, advertisements are invitations (Pharmaceutical Society v. Boots).

91. Contract of guarantee requires:
A. Consideration to surety
B. Benefit to principal debtor
C. No consideration
D. Written form
Answer: B
Explanation: Section 127—consideration is benefit to principal debtor.

92. Surety is discharged when:
A. Contract varied without consent
B. Creditor grants time
C. Creditor releases debtor
D. All
Answer: D
Explanation: Sections 133–139 list discharge of surety.

93. Bailor must disclose:
A. Defects known
B. All defects
C. Defects unknown
D. Nothing
Answer: A
Explanation: Section 150: bailor must disclose known defects.

94. Gratuitous bailment ends by:
A. Lapse of time
B. Purpose fulfilled
C. Death of either party
D. All
Answer: D
Explanation: Gratuitous bailment ends by death.

95. Agent is personally liable when:
A. Foreign principal
B. Undisclosed principal
C. Principal incompetent
D. All
Answer: D
Explanation: Sections 230–235 list situations.

96. Doctrine of ratification cannot validate:
A. Unauthorized act
B. Illegal act
C. Valid act
D. Voidable act
Answer: B
Explanation: Section 200: ratification cannot make illegal act valid.

97. Misrepresentation gives right to:
A. Claim damages
B. Rescind contract
C. Ratify
D. Punish guilty
Answer: B
Explanation: Section 19: voidable at option.

98. Fraud gives right to:
A. Rescind contract
B. Claim damages
C. Both A and B
D. Only refund
Answer: C
Explanation: Fraud allows rescission + damages.

99. If performance becomes unlawful:
A. Contract void
B. Contract valid
C. Contract suspended
D. Contract modified
Answer: A
Explanation: Section 56: supervening illegality voids contract.