Foundation Level LAW

PRACTICE MANUAL

(c) Section 2 (e)

Part: - 1 The Indian Contract (d) Section 2 (h)
Act, 1872
8. Which of the following statement is incorrect?
Chapter 1:- Nature and Kinds (a) An agreement enforceable by law is a contract.
of Contracts (b) Every agreement is a contract.
(c) An agreement is an accepted proposal.
1. INTRODUCTION AND DEFINITION OF (d) A promise is defined in Section 2 (b) of the Act.
CONTRACT
1. The law relating to contracts is contained in 9. A proposal when accepted become a
(a) The Contract Act, 1782 (a) Promise (b) offer
(b) The Contract Act, 1872 (c) Acceptance (d) contract.
(c) The Indian Contract Act, 1872
(d) The Indian Contract Act, 1782. 10. An agreement is_______
(a) Offer + enforceability
2. The Indian Contract Act, applies to the (b) Offer + legal obligation
(a) Whole of India including Jammu & Kashmir (c) Offer + acceptance
(b) Whole of India excluding Jammu & Kashmir (d) Offer only.
(c) States notified by the Central Government from
time to time. 11.A contract is_______
(d) States notified by the appropriate Government (a) Offer + acceptance
every year. (b) Agreement + enforceability
(c) Offer + enforceability
3. The Indian Contract Act came into force on (d) Offer + legal obligations.
(a) 1st September, 1872
(b) 15th September, 1872 12."Every agreement and promise enforceable at
(c) 1st October, 1872 law is a contract". This definition is given by
(d) 15th October. 1872. (a) Salmons (b) Anson
(c) Halsbury (d) Pollock.
4. The general principles of the law of contract are
contained in 13.Which of the following equation is correct?
(a) Sections 1 to 75 (a) Contract = agreement + enforceability
(b) Sections 76 to 123 (b) Agreement = offer + acceptance
(c) Sections 124 to 238 (c) Both (a) and (b)
(d) Section 10. (d) None of the above.

14. The conditions of enforceability of an

5. The general principles of law of contract applied agreement are laid down in y
to all kinds of contract irrespective of their nature. (a) Section 2 (a)
(a) True, as sections 1 to 75 lay down the general (b) Section 2 (e)
principles of law of contract (c) Section 9
(b) False, as for special kinds of contracts there (d) Section 10.
are specific provisions in the respective laws.
15. Which of the following legal statement is
6. Which of the following eminent jurists has incorrect?
defined the contract as an agreement creating and (a) All agreements are contracts [Section 10].
defining obligations between the parties? (b) An agreement enforceable by law is a contract
(a) bullock [Section 2 (a)].
(b) Halsburry (c) A proposal when accepted becomes a promise
(c) Salmons [Section 2 (b)].
(d) Anson. (d) Every promise and every set of promise
forming the consideration for each other is
7. The term 'contract' is defined in which of the agreement [Section 2 (e)].
following sections of the Indian Contract Act?
(a) Section 2 (a) 16. The law of contract creates the right known as
(b) Section 2 (b) (a) Jus in rem

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(b) Jus in personam parties competent to contract, for a lawful

(c) Consensus ad idem consideration and with a lawful object.
(d) None of these. (a) True, as per section 10 if these nditions are
fulfilled an agreement becomes an enforceable
17. A jus in personam means a right against contract.
(a) A specific person (b) False, a section 10 requires that for
(b) The public at large enforceability, in addition to these requirements, an
(c) A specific thing agreement must not be expressly declared to be
(d) None of these. void.

18. All contracts are agreements but all 4. An offer and its acceptance is the basic
agreements are not contracts. requirement of an agreement and as per this
(a) True, as it’s is the legal position on the point. requirement an offer by one party
(b) False, as all agreements are contracts but all (a) Should be made to the other who is related to
contracts are not agreements. him.
(b) May also be made to himself.
19. as per section 10 which of the following is not a (c) Should be made to another who may or may
condition for the enforceability of agreement? not be related to him.
(a) An agreement must be made by the free (d) Should be made to another before the
consent of the parties. Registrar.
(b) An agreement must be made by the parties
who are competent to contract. 5. In an agreement there must be two parties.
(c) An agreement must not be certain in its (a) True, as there must be an offer by one party and
meaning. its acceptance by the other.
(d) An agreement must not be expressly declare (b) False, as an agreement made by a person with
to be void. himself is also recongnised under law.

20. An agreement enforceable by law, is known as 6. The parties to an agreement must agree upon
(a) Promise the same thing in the same sense, this mean that
(b) contract there must be:
(c) Acceptance (a) Free consent
(d) obligation. (b) consensus ad idem
(c) Capacity to contract
21. A contract is an agreement (d) none of these.
(a) Enforceable by law
(b) to indulge in litigation 7. A owned two horses one white and the other
(c) With malafide intention brown. He offered to sell one horse to B and while
(d) for social obligations. making offer, A had white horse in mind. B
accepted the offer thinking that it was made for
brown horse. In this case, no agreement came into
1.2. ESSENTIAL ELEMENTS OF A VALID existence as there is no
CONTRACT (a) free consent
1. Which of the following is not an essential (b) competency to contract
element of a valid contract? (c) consensus ad idem
(a) Registration of agreement (d) jus in personam.
(b) Free consent of parties
(c) Competency of parties 8. An agreement is a contract if it gives rise to (i.e.,
(d) Lawful consideration and object. creates)
(a) Moral obligation
2. All agreements are contracts if they are made (b) social obligation
(a) By free consent of parties. (c) legal obligation
(b) For a lawful consideration, (d) all of these.
(c) With a lawful object.
(d) all of these. 9. Free consent is an essential element of a valid
contract and the consent of a party is not free
3. An agreement expressly declared to be void will where it is obtained by
be enforceable only if it is made by free consent of (a) Fraud

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(b) coercion (a) Void

(c) Undue influence (b) Valid
(d) all of these. (c) Voidable
(d) illegal.
10. Competency (or capacity) of the parties being
an essential elements of a valid contract, an 17. An agreement to do an impossible act, is
agreement with the following persons is not (a) Voidable
enforceable in a court of law (b) Valid
(a) Minors (c) Void.
(b) persons of unsound mind (d) illegal.
(c) Government employees
(d) both (a) and (b). 1.3 KINDS OR CLASSIFICATION OF
CONTRACTS
11. An agreement with a party who is not 1. According to enforceability (i.e. legal validity), the
competent to contract, is contracts may be classified as
(a) void (a) Valid contracts
(b) voidable (b) Void contracts
(c) Valid (c) Voidable contrasts
(d) illegal. (d) all of these.
2. A valid contract is one which
12. An agreement must be supported by a lawful (a) is entorceable at the option ot one party.
consideration which means that the consideration (b) Satisfies the conditions of enforceability laid
should not be down in Section 10.
(a) Forbidden by law (c) is enforceable at the direction of the court.
(b) Immoral (d) not enforceable in a court of law.
(c) Opposed to public policy
(d) all of these. 3. A void contract is one which
(a) is enforceable at the option of one party.
13. A and B entered into an agreement for the (b) is enforceable at the option of both the parties.
division of gain, among them, which is to be (c) is enforceable at the direction of court.
acquired by them by fraud. It is not a valid (d) Ceases to be enforceable by law.
agreement because
(a) Its object is unlawful. 4. A voidable contract is one which
(b) Its consideration is unlawful. (a) Can be enforced at the option of aggrieved
(c) It is expressly declared to be void. party.
(d) It is an executory agreement (b) Can be enforced at the option of both the
parties.
(c) is enforceable at the direction of the court.
14. A agrees to pay Rs. 50,000/- to B if he (B) does (d) Is forbidden by the courts of law.
not marry throughout his life. B promised not to
marry at all. It is not a valid agreement because an 5. In the Indian Contract Act, a void contract is
agreement in restraint of marriage legally defined in
(a) Should be entered through guardians. (a) Section 2 (h)
(b) Is expressly declared to be void. (b) Section 2 (i)
(c) Is voidable at the option of promisee. (c) Section 2 (j)
(d) Is without consideration. (d) Section 2 (k)

15. A agrees to sell his white car to B for Rs. 6. In the Indian Contract Act, a voidable contract is
50,000/- or Rs. 70,000/-. It is not a valid agreement legally define in
as it is (a) Section 2 (h)
(a) Forbidden by law (b) Section 2 (i)
(b) For unlawful consideration (c) Section 2 0)
(c) Not certain (d) Section 2 (k)
(d) Impossible.

16. An agreement the meaning of which is

uncertain, is

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7. Which of the following statement is incorrect? 14. A went into a restaurant and took a cup of tea,
(a) An agreement enforceable at the option of one there is
party but not at the option of the other. (a) no contract by A to pay for the cup of tea.
is a voidable contract. (b) An implied contract that he will pay for the cup
(b) A contract which ceases to be enforceable by of tea.
law becomes void when its ceases to be (c) An express contract to pay to the cup of tea.
enforceable. (d) a quasi contract to pay for the cup of tea.
(c) A void contract can be originally entered into
between the parties. 15. A, a tradesman, left certain goods at B's house
(d) A void contract cannot be originally entered by mistake B treated and used the goods as his
into between the parties. own. In this case, B is
(a) Not liable to pay for the goods.
8. A promised lo marry B. Later on B died. This (b) Liable to be prosecuted under law.
contract of marriage (c) Liable to pay for the goods.
(a) Becomes void on the death of B. (d) Bound to inform police.
(b) Is void from the very beginning.
(c) Is valid as A should now marry B’s relative. 16. An implied contract, even if not in writing on
(d) Is illegal being forbidden by law? express words, is perfectly valid if other conditions
are satisfied.
9. Which of the following statement is incorrect? (a) True, as an implied contract has the same effect
(a) A voidable contract is valid till it is avoided by as an express contract.
the party entitled to do so. (b) False, as the Indian Contract Act recognizes
(b) The aggrieved party may or may not avoid the only express contracts.
voidable contract.
(c) The aggrieved party must avoid (i.e., put an 17. A contract in which only one party has to
end to) the voidable contract. perform his obligation is a contract with executed
(d) In voidable contract consent of one party is not consideration and is known as
free. (a) Executed contract
(b) Executor contract
10. An agreement enforceable by law, under the (c) Unilateral contract
Indian Contract Act, may be (d) Bilateral contract.
(a) In writing only
(b) Oral only 18. A contract in which both the parties have to
(c) Registered only perform their obligation is a contract with executory
(d) Either {a) or {b). consideration as is known as
(a) Executed contract
(b) Executory contract
11. A valid contract, under the Indian Contract Act, (c) Unilateral contract
may be (d) Bilateral contract.
(a) Express only
(b) Implied only 19. A contract in which, under the terms of a
(c) Either (a) or (b) contract, nothing remains to be done by either party
(d) Registered only. is known as
(a) Executed contract
12. An express contract is one which is made (b) Executory contract
(a) In writing only. (c) Unilateral contract
(b) By words of mouth only, (d) None of these-
(c) In writing or by words of mouth.
(d) On a stamp paper. 20. A contract in which, under the terms of a
contract, one or both the parties have still to
13. An implied contract is one which comes into perform Aeir obligations in future, is known as
existence on account of (A) Executed contract
(a) Act or conduct of the parties. (b) Executory contract
(b) Non-availability of a paper for writing, (c) Unilateral contract
(c) Inability of the parties to write or speak. (d) None of these
(d) Directions given by a court of law. FILL INTHE BLANKS AND PAIR MATCHINGQUESTIONS

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Choose appropriate option to fill in the blanks in

questions 1 to 5: 8- Match the following:
1. An agreement ______ is a contract. (i) Section 2 (i) (a) conditions of
(a) Made by parties enforceability
(b) Enforceable by law (ii) Section 2 (j) (b) voidable
(c) Made by minor (iii) Section 2 (h) (c) void contract
(d) Beneficial to both the parties. (iv) Section 10 (d) Contract.

2. Every promise and every set of promise 9. Match the following:

forming________ for each other is an agreement. (i) executed (a) Contract in which only
(a) Consideration contract one party has to perform
(b) Acceptance his obligation.
(c) Obligation. (ii) executory (b) Contract in which both
(d) Proposal contract the parties have to perform
their respective
3. A_______agreement is one, which is obligations.
enforceable at the option of one party. (iii) unilateral (c) reciprocal promises are
(a)void contract to be performed in future,
(b) Valid (iv) bilateral contract (d) Contract in which
(c) voidable nothing remains to be
(d) Obligation. done by either party.
4. A________contract cannot be originally entered
into between the parties OBJECTIVETYPEQUESTIONS
(a) void
1. The law of contract creates jus in personam.
(b) Valid
(a) Correct (b) incorrect.
(c) Voidable
(d) Obligation. 2. An agreement enforceable by law is contract.
(a) Correct (b) incorrect.
5. A voidable contract is_________till it is avoided
by the party entitled to do so.
3* An agreement is an accepted proposal.
(a) Void (a) Correct (b) incorrect.
(b) Illegal
(c) Valid
4. Every agreement is necessarily regarded as
(d) Contingent.
contract.
(a) Correct (b) incorrect.

5. An agreement made with mutual consent of

6. Match the following parties is not enforceable in law.
(i) Contract (a) accepted proposal (a) Correct (b) incorrect.
(ii) void (b) agreement
contract enforceable by law 6. Social agreements are enforceable in courts.
(iii) voidable (c) not enforceable in a (a) Correct (b) incorrect.
contract court of law
(iv) promise (d) Enforceable at the 7. An agreement with intention to create legal
option of one party. liability is not enforceable in law.
(a) correct (b) incorrect.
7. Match the following:
(i) agreement (a) right against a ft. All kinds of obligations created between the
specific person parties form part of contract.
(ii) contract (b) agree upon same (a) Correct (b) incorrect.
thing in same sense
(iii) jus in personam (c)offer+ acceptance 9. All contracts are agreements but all agreements
are not contracts.
(iv) Consensus ad idem (d)agreement + (a) Correct (b) incorrect.
enforceability.

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11 There can be a contract even without consensus (c) It must express offeror's final willingness.
ad idem. (d) It must be rfiade to a specific and not to public at
(a) Correct (b) incorrect. large,

12 A contract made without the free consent of the 6. Which of the following is the legal requirement of
parties is a valid contract. a valid offer?
(a) correct (b) incorrect. (a) It must have its terms definite and clear.
(b) It must be capable of creating legal
relationship.
Chapter 2:- Offer and (c) Both (a) and (b).
Acceptance (d) None of these.
2.1 Definition And Essential Elements
7. A sent his servant, B to trace his missing
Of A VALID OFFER nephew. After B left, A announced a reward of Rs.
5,000 for anybody who discovered the boy. B
1. The term 'offer or proposal' in legal terms, is discovered the missing boy without knowing about
defined in the reward. In this case
(a) Section 2 (a) (a) B is not entitled to the reward as he did not
(b) Section 2 (b) know about the offer when he is covered the
(c) Section 2 (i) missing boy i.e., the offer to pay reward has not
(d) Section 2 (j). been communicated to him.
(b) B is entitled to the reward as the offer has been
2 Which of the following statement is incorrect? communicated to him while ending him to trace
(a) An offer is the starting point in the making of an missing boy.
agreement. (c) No valid contract comes into existence as the
(b) An offer is the proposal by one party to another offer of reward is not made to any specific person.
to enter into a legally binding agreement with him. (d) Offer is not valid as unilateral contracts are not
(c) An offer, which is valid, in itself is sufficient to recognised.
create legal relationship without any response from
the other party. 8. A offers to sell to B ‘a hundred tonnes of oil’. It is
(d) An offer should be made with a view to obtain not a valid offer because
the assent of the other person to the proposed act. (a) it is not made to obtain B's assent.
(b) it is uncertain as there is nothing to show what
3. A person is said to make a proposal when he kind of oil is intended to be sold.
signifies to another his willingness to do or abstain (c) it does not express A's final willingness.
from doing something with a view to (d) it is forbidden by law.
(a) Inform the other person about his intention.
(b) Obtain the assent of that other person the 9. A promised to buy a horse from B if it proved
proposed act or abstinence. lucky. It is not a valid offer.
(c) Know the reaction of the other person. (a) True, as it is a vague and loose offer i.e.,
(d) Obtain satisfaction by doing or abstain from uncertain offer.
doing the proposed act. (b) False, as A has expressed his willingness to
obtain B’s assent to his willingness to buy.
4 The person making the offer is known as 'offeror'
or 'promiser' and to whom it is mad is known as 10. A sent a telegram to B writing "will you sell me
(a) Acceptor your Bumber Hall? Telegraph lowest cash price." B
(b) Acceptor for honour replied by telegram "lowest cash price for Bumber
(c) Offeree or promisee Hall Rs. 50 lakh". A sent another telegram stating I
(d) Contracting party. agree to purchase Bumber Hall for Rs. 50 lakh
asked by you, please send your title deeds". In this
5. Which of the following is not the legal case no valid contract arises and B is not bound to
requirement (i.e., essential element) of a valid sell the Bumber Hall for Rs. 50 lakh because B's
offer? telegram stating lowest cash price is not
(a) It must be communicated to the offeree. (a) Communicated to A
(b) It must be made with a view to obtain offeree's (b) Made to obtain A's assent
assent. (c) An offer, but simply an answer to a question
(d) Acceptable being in telegram form.

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11. A shopkeeper's catalogue of price and display 19. A general offer requiring the finding of a missing
of goods in a shop with price list attached is: thing or person
(a) Valid offer to sell at printed/listed price. (a) is closed as soon as the first information is
(b) An invitation to receive offer at printed/listed received by the offeror.
price. (b) remains alive until retracted by the offeror.
(c) An offer to the public at large acceptable by (c) Accepted by any number of persons until
anybody. retracted.
(d) An express offer to sell at printed/listed price. (d) is not recognised under law as it creates
confusion.
12. Which of the following statement is incorrect?
(a) An offer may be made to the world at large 20. An offer accepted without knowledge does not
(b) An offer may be positive or negative confer any legal rights on the acceptor.
(c) An offer may be express or implied (a) True, as the offer cannot be accepted without
(d) An offer must be made to a specific person. knowledge.
(b) False, as there is no such legal provision in this
13. An offer may be regard.
(a) General only
(b) Specific only 21. Which of the following statement is correct?
(c) Either (a) or (b) (a) A bid at an auction is an implied offer to buy.
(d) both (a) and (b) (b) In a self-service restaurant there is an implied
promise to pay for consuming eatables.
14.A specific offer is one which is made to (c) Both (a) and (6), as an implied offer is valid and
(a) Ascertained (i.e. definite) person. recognised under law.
(b) Public at large (d) None of these, as there is no valid offer in both
(c) Relatives only. the cases.
(d) Males only

15. A general offer is one which is made to 22. Which of the following are the essential
(a) Ascertained person. elements of a valid offer?
(b) Public at large (i) It must be definite and certain.
(c) General relatives. (ii) It must express offeror's intension to be bound
(d) Males and females by his offer.
(iii) It must be made to a specific person and not to
16. A general offer made to the public at large is public at large.
valid and a binding contract is made with a person (iv) It must be in the form of invitation to receive
who having the knowledge of the offer offer.
(a) Comes forward and acts accordingly. (a) (i), (ii)
(b) acts accordingly and his act is ratified by the (b) (ii), (iii)
offeror. (c) (iii), (iv)
(c) Seeks offeror's permission to accept the offer. (d) (i), (iv).
(d) Informs the public that he is willing to accept the
offer. 2.2 DEFINITION AND ESSENTIAL ELEMENTS
OF A VALID ACCEPTANCE
17. In which of the following cases, the principle of 1. The term 'acceptance’ in legal terms is defined in
an offer to public at large was recognised? (a) Section 2 (a)
(a) Balfour v. Balfour (b) Section 2 (b)
(b) Harvey v. Facie (c) Section 2 (i)
(c) Carlill v. Carbolic Smoke Ball Co. (d) Section 2 (f)
(d) Both (a) and (b).
2. Which of the following statements is incorrect?
18.A general offer of a continuing nature can be (a) Acceptance of an offer is necessary to create
accepted by legal relationship.
(a) The first hundred people. (b) Acceptance is the consent given to the offer.
(b) The first ten people. (c) Acceptance can be presumed from acceptor's
(c) Any number of persons until it is extracted. silence.
(d) One person only who first accepts the offer.

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(d) Acceptance must be communicated to the (c) A voidable contractus concluded which is
offeror himself. voidable at A's option.
(d) A void contact comes into existence on the
3. "When the person to whom the proposal is made agreement being kept in table drawer.
signifies his assent thereto, the proposal is said to
be accepted. A proposal when accepted becomes a 9. A, by a letter, offered to sell his Maruti car to B
promise". for Rs. 70,000. B wrote a letter stating that he was
(a) True, as it is the legal definition of acceptance prepared to buy it for Rs. 60,000. In this case.
given in Section 2 (b). (a) a valid contract is concluded between A and B
(b) False, as on acceptance the proposal does not as there is proper communication of acceptance.
become promise. (b) There is communication of acceptance to the
offeror (A) himself, and thus he is bound by the
4. The person to whom offer is made is known as contract.
'offeree or promise' and on acceptance, he is (c) No valid contract is concluded as B’s letter is
legally known as the only a counter offer and not acceptance.
(a) Promise’s agent (d) If B wants to buy the car, he should accept the
(b) Acceptor original offer of Rs. 70,000.
(c) Acceptor on promise’s behalf
(d) Acceptor for honour. 10. Which of the following is the legal rule of a valid
acceptance?
5. On the acceptance of an offer by the offeree, (a) An acceptance must be given within prescribed
which of the following persons becomes legally or reasonable time.
bound by the contract? (b) An acceptance must be given before the lapse
(a) Only the acceptor, as he has accepted the offer. of offer.
(b) Only the offeror, as his terms are accepted. (c) An acceptance may be express or implied.
(c) Both the acceptor and the offeror. (d) All of the these.
(d) None of these.
11.A, by a letter, offers to sell his T.V. to B for Rs
6. Which of the following is not the legal 10,000. Without knowing A’s offer, B, by a letter,
requirement (i.e., essential element) of a valid offers to buy the same T.V. from A for Rs. 10,000.
acceptance? In this case,
(a) It must be communicated. (a) A binding contract comes into existence as £'s
(b) It must be absolute and unconditional. letter is equivalent the acceptance of A’s offer.
(c) It must be accepted by a person who has the (b) No binding contract comes into existence as B's
authority to accept. letter is merely a cross offer.
(d) It must be presumed from silence if not (c) Both A and B will be guilty of breach of contract.
communicated within specified time. (d) The contract would be enforceable only with the
permission of the court.
7. Which of the following is the legal requirement of
a valid acceptance? 2.3 COMMUNICATION OF OFFER AND
(a) It must be communicated to the offeror himself. ACCEPTANCE
(b) It must be given in some usual and reasonable
manner. 1. Which of the following statement is incorrect?
(c) It must be given in express terms i.e., in writing (a) Communication of offer is complete when it
or by words of mouth only. comes to the knowledge of the offeree.
(d) All of these. (b) Communication of offer is complete when it is
put in a course of transmissions to the offeree.
8. A agreed to supply coal to a Railway Company (c) Communication of acceptance, against the
and sent the draft agreement for approval to B, the offeror, is complete when it is put in a course of
authorized official of the Railway Company. B transmission to him.
approved the draft agreement and put it in his table (d) Communication of acceptance, against the
drawer. In this case, acceptor, is complete when it comes to the
(a) A valid contract is concluded between the knowledge of the offeror.
parties as the authorised official of the company
has accepted the proposal. 2. Legal provision relating to communication of offer
(b) No valid contract is concluded as the and acceptance is contained in
acceptance was not communicated. (a)Section 1

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(b) Section 2 (c) Posted

(c) Section 3 (d) Received.
(d) Section 4.
3. Legal provision relating to completion of 10. Under the English Law, both the offeror and the
communication of offer and acceptance is acceptor become bound by the contract when the
contained letter of acceptance is posted.
(A) Section 1 (a) True
(b) Section 2 (b) False.
(c) Section 3
(d) Section 4. 11.A, by a letter, offers to sell his Motor cycle to B
for Rs. 10,000 without knowing A's offer, B, by a
4. A, by a letter dated 25th December, 2006, offers letter, offers to buy the same motor cycle from A for
to sell his house to *fl' for Rs. 50 lakhs, letter Rs. 10,000. Here,
reaches B on 27th December, 2006, who posts his (a) A binding contract comes into existence as B's
acceptance on 28th December, 3006. Which letter is equivalent to acceptance of A's offer.
reaches A on 30th December, 2006. In this case, (b) No binding contract comes into existence as 5's
the communication of offer m complete on letter is merely a cross offer.
(a) 25th December, 2006
(b) 27th December, 2006 2.4. REVOCATION OF OFFER AND
(c) 28th December, 2006 ACCEPTANCE
(d) 30th December, 2006. 1. Legal provisions relating to revocation of offer
and acceptance are provided in
5. In the above Question No. 4, the communication (a) Section 3
of acceptance is complete against ‘A’ on (b) Section 4
(a) 25th December, 2006 (c) Section 5
(b) 27th December, 2006 (d) Section 6.
(c) 28th December, 2006
(d) 30th December, 2006. 2. Legal provisions relating to the communication of
revocation of offer and acceptance are BTOvided in
6. In the above Question No. 4, the communication (a) Section 3
of acceptance against B is complete on (b) Section 4
(a) 25th December, 2006 (c) Section 5
(b) 27th December. 2006 (d) Section 6.
(c) 28th December, 2006
(d) 30th December. 2006. 3. An offer may be revoked by the offeror at any
time before the letter of acceptance is
7. In a contract through post, the acceptor becomes (a) Posted by the acceptor
bound by the contract when properly addressed (b) Received by the offeror
and stamped letter of his acceptance is (c) Read by the offeror
(a) Posted to the offeror. (d) None of these.
(b) Received by the offeror,
(c) Signed by the acceptor. 4. The legal rule relating to revocation of offer is
(d) None of these. that it can be revoked at any time before the
communication of its acceptance is complete
8. In a contract through post, the offeror becomes against
bound by the contract when the letter of acceptor's (a) The acceptor
acceptance is (b) The offeror
(a) Posted to the offeror. (c) Acceptor's family
(b) Received by the offeror, (d) Offeror's family.
(c) Signed by the acceptor.
(d) None of these. 5. Which of the following statement is correct?
(a) Revocation of offer is effective when it reaches
9. Where the offer and acceptance are made by the offeree before he mails his acceptance.
letters, the contract is complete at a place where (b) Offeror may revoke his offer by a speedier mode
the letter of acceptance is of communication which reaches the acceptor
(a) Written before he posts his acceptance
(b) Signed (c) Both (a) and (b) are correct

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(d) Only statement (a) is correct. 2.5 LAPSE OF OFFER

1.The modes in which the offer lapses (i.e., comes
6. An acceptance may be revoked by the acceptor to end) are provided in
at any time before the letter of acceptance is (a) Section 4
(a) Posted by the acceptor, (b) Section 5
(b) Received by the offeror, (c) Section 6
(c) Signed by the acceptor. (d) Section 7.
(d) None of these.
2. Where the time is fixed for acceptance of the
7. The legal rule relating to revocation of offer and it is not accepted with the fixed time, then
acceptance is that it can be revoked at any time the
before the communication of acceptance is (a) Offer automatically lapses on the expiry of fixed
complete against time.
(a) The acceptor. (b) Offer can be accepted by paying penalty.
(b) The offeror. (c) Offeree loses his right to become a party to any
(c) Acceptor's family. contract in future.
(d) Offeror's family. (d) Offer lapses but only with the permission of the
court.
8. Which of the following statement is correct?
(a) Revocation of acceptance is effective when it 3. Where no time is fixed for the acceptance of the
reaches the offeror before he receives the offer, then the offer can be accepted
acceptance. (a) At any time upto one year.
(b) Acceptor may revoke his acceptance by a (b) At any time upto three years.
speedier mode of communication which reaches (c) Within reasonable time which depends upon the
earlier than the acceptance itself, facts and circumstances of the case.
(c) Both (a) and (b) are correct. (d) After seeking due permission from the court
(d) Only statement (a) is correct. irrespective of time

9.A, by a letter dated 15th March which reaches B 4. Which of the following is not the mode of lapse of
on 17th March, offers to sell his car to B. B posts offer?
his acceptance on 20ih March which reaches A on (a) Lapse of time
22nd March. In this case (b) Case against the offeror
(a) A can revoke his offer before he receives the (c) Death or insanity of offeror
letter of acceptance (d) Failure to accept condition precedent.
(b) A cannot revoke his offer as he has become
bound by the acceptance on 20th March. 5. An acceptance of offer, in ignorance of the fact of
death or insanity of the offeror, is
10. In the above Question No. 9. (a) Valid acceptance as it is given without having
(a) B can revoke his acceptance at any time till his knowledge of the death or insanity of the offeror.
letter reaches A (b) Not valid as the offer automatically lapses on
(b) B cannot revoke his acceptance as he becomes the death or insanity of the offeror.
bound by posting his letter of acceptance. (c) Illegal acceptance as after the death or insanity
of offeror no contract can arise
11. In the above Question No. 9, A can revoke his (d) Fraudulent acceptance which render the
offer before acceptor liable to pay damages.
(a) 15th March
(b) 17th March 6. On the death of an offeree before he accepts the
(c) 20th March offer, the offer comes to an end.
(d) 22nd March. (a) True, as the offer lapses by operation of law.
(b) False, as there is no provision to that effect in
12. In the above Question No. 9, B can revoke his section 6 of the Act.
acceptance before
(a) 15th March 7. A offered to sell his car to B for Rs. 1, 00,000.
(b) 17th March But B offered to buy it for Rs. 95,000. A refused to
(c) 20th March sell for Rs. 95.000. Subsequently, B offered to
(d) 22nd March. purchase the car for Rs. 1, 00,000. In this case,

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(a) A is bound to sell the car to B as he has (ii) Section 2 (b) (b) communication of offer
accepted the offer of Rs. 1,00,000. and acceptance
(b) A contingent contract comes into existence (iii) Section 3 (c) acceptance
which can be enforced if no other person buys A (d) Offer. (iv) Section 6
'scar.
(c) No contract comes into existence as by offering 7. Match the following:
Rs. 95.000, B has rejected the original offer. (i) general offer (a) offer made to a
(d) B is guilty of breach of contract. definite person
(ii) specific offer (b) offer open for
8. Which of the following is the mode of lapse of acceptance over a period
offer? of time
(a) Counter offer by offeree (iii) cross offer (c) offer made to public at
(b) Rejection of offer by offeree large
(c) Change in law (iv) continuing offer (d) exchange of identical
(d) all of the above. offers by the parties
9. An agreement to agree in future is not a valid 8. Match the following:
contract and cannot be enforced in a court ydf law.
(i) promisor (a) person to whom
(a) True, as all the terms and conditions of contract
offer is made
must be finalised at the time of making the contract.
(ii) promisee (b) person who accepts
(b) False, as such agreements are recognised in
the offer
the Indian Contract Act.
(iii) acceptor (c) person's consent
given to offer
FILL IN THE BLANKS AND PAIR MATCHING
QUESTIONS (iv) acceptance (d) Person who makes
the offer.
Choose appropriate option to fill in the blanks in
questions 1 to 5:
9. Match the following:
1. A_________is one which is made to public at (i) positive offer (a) striking hammer on
large. table by auctioneer
(a) Specific offer (b) general offer (ii) express offer (b) acceptance of offer with
(c) Public offer (d) universal offer." variation
(iii) implied (c) an offer to do some act
2. A bid at an auction is_________offer to buy. acceptance e.g. to sell a car
(a) An implied (b) an express (iv) counter offer (d) Offer in writing or by
(c) Proposal (d) counter. words of mouth.

3. A_________when accepted becomes a promise.

(a) Acceptance (b) obligation OBJECTIVE TYPE QUESTIONS (with
(c) Proposal (d) cross offer. correct/incorrect options and hints)
1. Every proposal made by a person is legally
4. Communication of acceptance_________is regarded as an offer under the Indian Contract Act.
complete when it comes to the knowledge of the (a) Correct (b) incorrect.
offeror.
(a) Against the acceptor 2. An offer jokingly made to a party does not result
(b) Against the offeror in a valid contract even if the other party accepts
(c) Against the third party the same.
(d) Under the law. (a) Correct (b) incorrect.

5. An offer may be revoked by the offeror at any 3. A social invitation made with a view to obtain
time before the letter of acceptance is________ by consent of the other party gives rise to legal
the acceptor. relations if accepted by the other party.
(a) Written (b) read (a) Correct (b) incorrect
(c) deposited in court (d) posted. 4. A vague or uncertain offer does not create any
6. Match the following: legal relations even if accepted by the other party.
(i) Section 2 (a) (a) lapse of offer (a) Correct (b) incorrect.

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 Foundation Level LAW
PRACTICE MANUAL

5. An offer is valid where the offeror proposes

certain terms on which he is willing to negotiate.
(a) Correct (b) incorrect.

6. An advertisement by a person that he has

certain furniture to sell and a house to let out,
amounts to an offer.
(a) Correct (b) incorrect.

7. An advertisement for holdings an auction sale

amounts to an offer.
(a) Correct (b) incorrect.

8. A shopkeeper's catalogue of price and also the

display of goods in a shop do not amount to offer.
(a) Correct (b) incorrect.

9. An offer is valid only if it is made to a specific

person.
(a) Correct (b) incorrect.

10. An offer made to the public at large is known as

specific offer.
(a) Correct (b) incorrect.

11.An offer made to an ascertained person is

known as a specific offer.
(a) Correct (b) incorrect.

12. A genera! Offer may be accepted by any one.

(a) Correct (b) incorrect.

13. A general offer of a continuing nature can be

accepted by any number of persons until it is
retracted and a binding contract will be made with
all such persons.
(a) correct (b) incorrect.

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