Contract Act 1872 Part 1 Formation | Void | Agreements MCQs

1. Question 1 of 54

   Under Section 19, when consent to an agreement is caused by coercion, fraud, or misrepresentation, what is the resulting agreement?

   A Automatically void from the outset B Illegal and punishable under the Penal Code C A contract voidable at the option of the party whose consent was so caused D Fully valid and binding on both parties
2. Question 2 of 54

   Under Section 16(3), where a dominant party enters into a transaction that appears unconscionable, upon whom does the burden of proving no undue influence lie?

   A The weaker party alone B The party's advocate C Neither party; the court decides without evidence D The person in a position to dominate the will of the other
3. Question 3 of 54

   Under Section 19-A, when consent is caused by undue influence, what is the resulting agreement?

   A Illegal per se B Automatically void C A contract voidable at the option of the party whose consent was so caused D Valid, but subject to reduced damages
4. Question 4 of 54

   A promises to obtain public employment for B, and B promises to pay A Rs.1,000 for it. Under Section 23, what is this agreement?

   A A valid contract of agency B Valid, being a common form of brokerage C Void, as the consideration is unlawful D Voidable at B's option only
5. Question 5 of 54

   Under Section 12, may a person usually of unsound mind, but occasionally of sound mind, make a contract during a lucid interval?

   A No, never B Only if a guardian co-signs C Only with court permission D Yes
6. Question 6 of 54

   Under Section 11, who is competent to contract?

   A Any person regardless of age or mental state B A person who has attained the age of majority, is of sound mind, and is not disqualified from contracting by any law C Only Pakistani citizens D Only persons who own property
7. Question 7 of 54

   Under Section 13, when are two or more persons said to 'consent'?

   A When they agree upon the same thing in the same sense B When they sign the same document C When money changes hands D When a witness confirms their agreement
8. Question 8 of 54

   Under Section 30, what is the general rule on agreements by way of wager?

   A Void; no suit may be brought to recover anything won on a wager B Fully enforceable if in writing C Valid only between licensed bookmakers D Enforceable up to a maximum of Rs.500
9. Question 9 of 54

   Under Section 2(h), what is an agreement enforceable by law?

   A A bailment B A proposal C A contract D A guarantee
10. Question 10 of 54

    Under Section 4, when is the communication of an acceptance complete as against the proposer?

    A Only when it actually reaches the proposer B When it is put in a course of transmission to him, so as to be out of the power of the acceptor C Immediately upon being written, even if not sent D Only when the proposer replies
11. Question 11 of 54

    Under Section 2(d), what is called the 'consideration' for a promise?

    A Only a written and registered document B The promisor's motive for making the promise C Only money paid directly by the promisee to the promisor D An act, abstinence, or promise done or given at the desire of the promisor by the promisee or any other person
12. Question 12 of 54

    Under Section 15, how is 'coercion' defined?

    A Refusing to negotiate further B Persuading someone through flattery C Simply offering a very low price D Committing or threatening to commit any act forbidden by the Pakistan Penal Code, or unlawfully detaining or threatening to detain property, to cause a person to enter into an agreement
13. Question 13 of 54

    Under Section 14, consent is 'free' when it is not caused by which of the following?

    A The passage of time B Coercion, undue influence, fraud, misrepresentation, or mistake C Negotiation between the parties D Advice from a lawyer
14. Question 14 of 54

    Under Section 9, when is a promise said to be 'implied'?

    A When it is registered B When the proposal or acceptance is made otherwise than in words C When it involves a third party D When it is reduced to writing
15. Question 15 of 54

    Under Section 17, does 'fraud' require the active concealment of a fact by someone with knowledge of it?

    A No, fraud can only occur through a written statement B No, fraud requires proof of financial loss first C No, fraud requires only silence, nothing more D Yes, this is one of the specific acts included in the definition of fraud
16. Question 16 of 54

    On what date did the Contract Act, 1872 come into force?

    A 1st January 1873 B 14th August 1872 C 25th April 1872 D 1st September 1872
17. Question 17 of 54

    Under Section 21, is a contract voidable because it was caused by a mistake as to law in force in Pakistan?

    A Yes, always voidable B Yes, but only within the first year C No D Yes, but only for contracts exceeding a certain value
18. Question 18 of 54

    Under Section 10, what are the essential elements for an agreement to be a contract?

    A Free consent of parties competent to contract, lawful consideration, lawful object, and not expressly declared void B Only that it is reduced to writing C Only that both parties are adults D Only that consideration has been paid in full
19. Question 19 of 54

    Under Section 9, when is a promise said to be 'express'?

    A When the proposal or acceptance is made in words B When it is written but unsigned C When it involves payment of money D When it is inferred from conduct
20. Question 20 of 54

    Under Section 2(c), what is the person making a proposal called?

    A The promisor B The promisee C The offeree D The surety
21. Question 21 of 54

    Under Section 18, what does 'misrepresentation' include?

    A Only a deliberate lie told with intent to deceive B Only a mistake made by both parties C Only an omission required by law to be disclosed D A positive assertion, not warranted by the maker's information, of something untrue though believed true
22. Question 22 of 54

    Under Section 22, is a contract voidable merely because it was caused by a mistake as to fact on the part of only one of the parties?

    A Yes, always voidable B Yes, but only if that party is the one seeking to avoid it C No D Yes, but only in contracts for the sale of goods
23. Question 23 of 54

    Under Section 27, what is the general rule on agreements in restraint of trade?

    A All such agreements are automatically valid B Such agreements are valid for up to 5 years C Every such agreement is void to that extent D Such agreements require court pre-approval to be void
24. Question 24 of 54

    Under Section 7, what must an acceptance be, in order to convert a proposal into a promise?

    A Accompanied by part-payment B Given in writing only C Witnessed by two persons D Absolute and unqualified
25. Question 25 of 54

    A, B and C agree to divide among themselves gains acquired by fraud. What is the legal effect of this agreement under Section 23?

    A Voidable only at C's option B Void, as its object is unlawful C Valid, since all three parties freely consented D Valid but unenforceable only against A
26. Question 26 of 54

    Under Section 2(c), what is the person accepting a proposal called?

    A The bailee B The promisee C The offeror D The promisor
27. Question 27 of 54

    Under Section 2(e), what is 'every promise and every set of promises forming the consideration for each other' called?

    A A contingent contract B An agreement C A contract D A guarantee
28. Question 28 of 54

    Under Section 24, what is the effect if any part of a single consideration for one or more objects is unlawful?

    A The agreement is automatically reformed by the court B Only that unlawful part is void; the rest remains enforceable C The whole agreement is void D The agreement becomes merely voidable
29. Question 29 of 54

    Under Section 20's Explanation, is an erroneous opinion as to the value of the subject-matter treated as a mistake of fact?

    A No B Yes, but only for immovable property C Yes, but only if both parties are merchants D Yes, always
30. Question 30 of 54

    Under Section 5, until what point may a proposal generally be revoked?

    A Only within 24 hours of being made B At any time before the communication of its acceptance is complete as against the proposer C Never, once communicated D At any time, even after a contract is formed
31. Question 31 of 54

    Under Section 25, Explanation 2, may inadequacy of consideration alone render a freely-consented agreement void?

    A Yes, any inadequate consideration automatically voids the agreement B Yes, but only for consideration below Rs.100 C Yes, unless a lawyer certifies the agreement D No, though the court may take inadequacy into account when assessing whether consent was actually free
32. Question 32 of 54

    Under Section 2(b), what does a proposal become once accepted?

    A A promise B An agreement void for uncertainty C A contract automatically D A guarantee
33. Question 33 of 54

    Under Section 8, what may amount to acceptance of a proposal?

    A Performance of the conditions of the proposal, or acceptance of consideration offered with it B Silence alone, in every circumstance C Nothing short of a signed contract document D Only an express written acceptance
34. Question 34 of 54

    Which section of the Contract Act defines what a 'sound mind' means for the purposes of contracting?

    A Section 11 B Section 13 C Section 16 D Section 12
35. Question 35 of 54

    Under Section 4, when is the communication of a proposal complete?

    A When consideration is paid B When it is posted by the person making it C When it comes to the knowledge of the person to whom it is made D When it is signed by both parties
36. Question 36 of 54

    Under Section 16, 'undue influence' arises where the relations between parties are such that one is in a position to dominate the will of the other and does what?

    A Refuses to sign a contract B Delays performance of a promise C Simply gives advice to the other party D Uses that position to obtain an unfair advantage over the other
37. Question 37 of 54

    Under Section 2(j), when does a contract which ceases to be enforceable by law become void?

    A When it ceases to be enforceable B It can never become void once formed C Only when a court formally declares it void D Only after the limitation period expires
38. Question 38 of 54

    Under Section 25, is an agreement made without consideration generally void?

    A No, but only for contracts under Rs.1,000 B No, consideration is required only for oral contracts C No, consideration is never required in Pakistan D Yes, unless it falls within specific exceptions (e.g. natural love and affection reduced to writing and registered, compensation for a past voluntary act, or a written promise to pay a time-barred debt)
39. Question 39 of 54

    Under Section 6, by what means may a proposal be revoked?

    A Only by a formal written notice served personally B By notice of revocation, by lapse of prescribed or reasonable time, by failure to fulfil a condition precedent, or by the death/insanity of the proposer known to the acceptor before acceptance C A proposal cannot be revoked once made D Only by mutual agreement of both parties
40. Question 40 of 54

    Under Section 17's Explanation, is mere silence as to facts likely to affect a person's willingness to contract generally treated as fraud?

    A Yes, but only in contracts for immovable property B Yes, but only between family members C Yes, silence is always treated as fraud D No, not unless there is a duty to speak or the silence is equivalent to speech
41. Question 41 of 54

    Under Section 29, what is the effect of an agreement whose meaning is not certain and not capable of being made certain?

    A Enforceable only to the extent it can be estimated B Valid if performed in good faith C Voidable at the option of the party disadvantaged D Void for uncertainty
42. Question 42 of 54

    Which section of the Contract Act deals with agreements void for uncertainty?

    A Section 28 B Section 26 C Section 30 D Section 29
43. Question 43 of 54

    Under Section 20, what is the effect where both parties to an agreement are under a mistake as to a matter of fact essential to the agreement?

    A The agreement remains fully valid B The agreement is void C The agreement is merely voidable D The agreement becomes a contingent contract
44. Question 44 of 54

    Under Section 2(a), when is a person said to make a 'proposal'?

    A When he signs a written document B When he pays consideration for a promise C When he accepts an offer made to him D When he signifies to another his willingness to do or abstain from doing anything, with a view to obtaining that other's assent
45. Question 45 of 54

    A promises B to drop a robbery prosecution he has instituted, and B promises to restore the value of goods taken. Under Section 23, what is this agreement?

    A Valid, since compromises are always favoured by courts B Void, as its object is unlawful C A valid compromise agreement D Voidable only if the police object
46. Question 46 of 54

    Which section of the Contract Act deals with agreements by way of wager?

    A Section 27 B Section 29 C Section 25 D Section 30
47. Question 47 of 54

    Under Section 26, what is the effect of an agreement in restraint of the marriage of any person (other than a minor)?

    A Valid only between family members B Void C Valid if in writing D Voidable at the option of either party
48. Question 48 of 54

    Under Section 2(i), what is an agreement enforceable by law at the option of one or more parties, but not at the option of the other(s)?

    A A contingent contract B A void agreement C An illegal agreement D A voidable contract
49. Question 49 of 54

    Under Section 28, what is the general rule on agreements that absolutely restrict a party from enforcing rights through ordinary legal proceedings?

    A Void to that extent B Valid only if notarized C Always valid if signed by both parties D Voidable only at the option of the more powerful party
50. Question 50 of 54

    Under Section 19's Exception, is a contract voidable for misrepresentation or fraudulent silence if the party had the means to discover the truth with ordinary diligence?

    A Yes, but only if in writing B Yes, but only within 30 days C No, it is not voidable in that circumstance D Yes, it remains voidable regardless of diligence
51. Question 51 of 54

    Under Section 2(f), what are promises called which form the consideration or part of the consideration for each other?

    A Void promises B Implied promises C Reciprocal promises D Contingent promises
52. Question 52 of 54

    Under Section 23, which of the following makes the consideration or object of an agreement unlawful?

    A Only if a government body is a party B It is forbidden by law, defeats the provisions of any law, is fraudulent, involves injury to person/property, or is immoral/opposed to public policy C Only if it is not reduced to writing D Only if it involves a sum of money exceeding Rs.10,000
53. Question 53 of 54

    Under Section 2(g), what is an agreement not enforceable by law said to be?

    A Void B Illegal C Contingent D Voidable
54. Question 54 of 54

    Under Section 4, when is the communication of an acceptance complete as against the acceptor?

    A When it comes to the knowledge of the proposer B When it is posted C When it is written D When the proposer signs a receipt

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