CONTRACT LAW MCQS SET 37

CONTRACT LAW MCQS SET 37

Free Consent

1. In Derry Vs Peek it was observed that fraud exists when it is shown that the false representation has been made
a. Knowingly
b. Unintentionally
c. Recklessly careless whether it be true or false
d. Both (a) and (c)

2. In cases of silence amounting to fraud where the other party had the means of discovering truth with ordinary diligence, the contract is
a. Void
b. Voidable
c. Not voidable
d. Conditional

3. A, fraudulently sold his car to B. After-wards , B came to known about the fraud, but instead of complaining, he further sold the car to C. in this case, B’s right to rescind the contract is
a. lost
b. not lost
c. strengthened
d. None of the above

4. The important element which distinguishes mispresentation from fraud is that the misrepresentation is an
a. intentional statement
b. innocent statement
c. important statement
d. irrelevant statement

5. In a contract of insurance, keeping silent as to material facts amounts to fraud.
a. True
b. Partly True
c. False
d. None of the above

6. For a marriage contract, the relatives speaking for the girl failed to disclose that she was suffering from epileptic fits. In this case, engagement is voidable on account of
a. Fraud
b. Misrepresentation
c. undue influence
d. None of the above

7. Section ………. of the Indian Contract Act deals with “Misrepresentation”
a. 15
b. 16
c. 17
d. 18

8. Misrepresentation means
a. causing a party entering into an agreement to make a mistake as to the subject matter of contract
b. a positive assertion, in a manner warranted by the information of the person making it, not true but he believes it to be true
c. Any breach of duty, which gains an advantage to the person committing it by misleading another to his prejudice.
d. All of the above

9. When the contract is entered into under misrepresentation, it is
a. void
b. valid
c. invalid
d. voidable

10. Which of these are features of Misrepresentation, not treated as Fraud?
a. Innocent and Unintentional
b. Believes the representation to be true
c. No intention to deceive or defraud the other party.
d. All of the above
ANSWER:

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