CLAT Contract Law 2

Question 1

Which section of the Indian Contract Act, 1872 deals with 'offer' (proposal)?

Accepted Answer

Section 2(a)

Answer

Section 2(b)

Answer

Section 2(c)

Answer

Section 2(d)

Question 2

Which of the following best describes 'consideration' under Section 2(d) of the Indian Contract Act?

Accepted Answer

Something done, abstained from, or promised at the promisor's desire

Answer

A monetary payment made at the time of contract

Answer

A written acknowledgment of the contract's terms

Answer

The legal capacity of the parties to contract

Question 3

The maxim 'ex nudo pacto non oritur actio' means:

Accepted Answer

No action arises from a bare agreement without consideration

Answer

A contract made under duress is void

Answer

Fraud vitiates everything

Answer

Performance must be exact to discharge a contract

Question 4

Under the Indian Contract Act, which of the following agreements is expressly declared void?

Accepted Answer

Agreement in restraint of marriage

Answer

Agreement to refer disputes to arbitration

Answer

Agreement to sell goods below market price

Answer

Agreement where price is not fixed by the parties

Question 5

Anticipatory breach of contract occurs when:

Accepted Answer

A party repudiates the contract before the performance date arrives

Answer

A party performs the contract defectively

Answer

The contract is frustrated by an external event

Answer

One party fails to give notice of cancellation

Question 6

Which doctrine allows a court to enforce a promise even without consideration if the promisee has relied on it to their detriment?

Accepted Answer

Promissory estoppel

Answer

Doctrine of frustration

Answer

Doctrine of privity

Answer

Unjust enrichment

Question 7

Under Section 73 of the Indian Contract Act, compensation for breach of contract is given for:

Accepted Answer

Loss or damage naturally arising from the breach or reasonably foreseeable by both parties

Answer

All losses suffered by the aggrieved party without limitation

Answer

Only mental anguish and distress caused by the breach

Answer

Exemplary damages to punish the defaulting party