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CA Foundation Nature of Contracts — practice questions

Explore 88 free Nature of Contracts questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Nature of Contracts questions and exercises with answers

Showing questions 1–30 of 88.

Under the Indian Contract Act, 1872, a 'contract' is defined as an agreement enforceable by law in which section?Read the answer and worked solution →The relationship 'Contract = Agreement + ____' is completed by which element?Read the answer and worked solution →'Every promise and every set of promises, forming the consideration for each other' is the statutory definition of which term?Read the answer and worked solution →Under Section 2(b), a proposal once accepted becomes a:Read the answer and worked solution →The principle that a domestic arrangement between spouses is not a contract for want of intention to create legal relations was laid down in:Read the answer and worked solution →Which of the following requirements is one expressly stated in Section 10 of the Act?Read the answer and worked solution →What is the minimum number of distinct parties required to form a valid contract?Read the answer and worked solution →'A agrees to sell to B one hundred tons of oil' with no further detail. This agreement is void on the ground of:Read the answer and worked solution →'A agrees with B to discover treasure by magic for a sum of money.' The agreement is void because of:Read the answer and worked solution →Section 2(j) describes a contract which 'ceases to be enforceable by law'. Such a contract is termed:Read the answer and worked solution →A voidable contract under Section 2(i) is enforceable:Read the answer and worked solution →Where consent to an agreement is obtained by coercion, the resulting contract is:Read the answer and worked solution →A debt that can no longer be sued upon because three years have lapsed under the Limitation Act gives rise to a contract that is best described as:Read the answer and worked solution →Under Section 9, a contract is called an 'express' contract when the proposal or acceptance is made:Read the answer and worked solution →A coolie, without being asked, picks up a passenger's luggage and the passenger allows him to carry it. The contract to pay him is:Read the answer and worked solution →Withdrawing cash from an ATM is most accurately classified as which kind of contract?Read the answer and worked solution →In an 'executed' contract:Read the answer and worked solution →Where the consideration on both sides is a promise yet to be performed in the future, the contract is:Read the answer and worked solution →Section 2(a) of the Indian Contract Act, 1872 defines which of the following?Read the answer and worked solution →'Consensus ad idem', an essential of a valid agreement, means that the parties:Read the answer and worked solution →Under Section 2(h) of the Indian Contract Act, a contract is:Read the answer and worked solution →Section 2(e) of the Act defines an agreement as:Read the answer and worked solution →A voidable contract is enforceable by law at the option of:Read the answer and worked solution →A contract that later ceases to be enforceable by law is called, under Section 2(j), a:Read the answer and worked solution →When a proposal is accepted, the person who made it is called the:Read the answer and worked solution →The person who accepts a proposal under Section 2(c) is called the:Read the answer and worked solution →Consideration is described as quid pro quo, which means:Read the answer and worked solution →Promises that form the consideration or part of it for each other are:Read the answer and worked solution →As originally enacted, the Indian Contract Act contained how many sections?Read the answer and worked solution →The sale of goods chapter of the Contract Act was replaced by the:Read the answer and worked solution →

Worked practice questions

Under the Indian Contract Act, 1872, a 'contract' is defined as an agreement enforceable by law in which section?

  1. Section 2(j)
  2. Section 2(h)
  3. Section 2(b)
  4. Section 2(e)
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Correct answer: B. Section 2(h)

Section 2(h) defines a contract as 'an agreement enforceable by law'. 2(e) defines agreement, 2(b) promise, 2(j) a void contract.

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The relationship 'Contract = Agreement + ____' is completed by which element?

  1. Offer and acceptance
  2. Free consent of parties
  3. Lawful consideration
  4. Enforceability by law
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Correct answer: D. Enforceability by law

A contract is an agreement plus enforceability by law (Sec 2(h)). The other items are constituents of the agreement, not the added element that makes it a contract.

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'Every promise and every set of promises, forming the consideration for each other' is the statutory definition of which term?

  1. Agreement
  2. Acceptance
  3. Contract
  4. Proposal
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Correct answer: A. Agreement

Section 2(e) defines 'agreement'. A proposal when accepted becomes a promise (2(b)) an agreement enforceable by law is a contract (2(h)).

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