CONTRACT LAW MCQS SET 29

CONTRACT LAW MCQS SET 29

Consideration

1. Consideration must move at the desire of
a) Promisor
b) Promise
c) Stranger
d) Either (b) or (c)

2. Consideration may move from
a) Promisor
b) Promise
c) Either (a) or (b)
d) Both (a) and (b)

3. Consideration is not necessary to effect a alid Gratuitous Bailment of goods.
a) True
b) Partly True
c) False
d) None of the above

4. Inadequacy of consideration does not make the contract
a) Void
b) Voidable
c) Valid
d) Neither (a) nor (b)

5. Which of the following is correct ?
a) Consideration may be past, present but not future
b) A contract is void if the consideration is inadequate
c) Acceptance to lesser sum in satisfaction of payment of a larger sum is valid in spite of inadequate consideration
d) A stranger to contract can enforce the contract

6. When the consideration is unlawful, the courts
a) Allows an action on contract
b) Does not allow an action on contract
c) Takes it for consideration
d) Either (a) or (c)

7. A person who is not a party to a contract
a) Cannot sue
b) Can sue
c) Can sue only in well recognized cases
d) Can sue the Government

8. Under the Indian contract Act, a third person
a) Beneficiary under the contract can sue
b) From whom the consideration has proceeded can sue
c) Cannot sue even if the consideration has proceeded from him
d) Cannot sue at all for want of privity of contract

9. Stranger to contract means
a) First party to contract
b) Second party to contract
c) Third party to contract
d) Either (a) or (b)

10. The term privity of contract means
a) Stranger of contract
b) Contract is private
c) First party to contract
d) Second party to contractANSWER:

1.a
2.b
3.a
4.d
5.c
6.b
7.a
8.a
9.c
10.a