Contract Act 1872 Part 2 Contingent | Performance | Breach MCQs

1. Question 1 of 49

   Under Section 34, if a contract is contingent on how a living person will act, when is that event deemed impossible?

   A Only after a court declares it impossible B When that person does something rendering it impossible for him to so act within any definite time or otherwise than under further contingencies C It can never be deemed impossible while the person lives D Only upon that person's death
2. Question 2 of 49

   Under Section 74, where a contract names a sum as the amount payable upon breach, or contains a penalty stipulation, is proof of actual loss required before compensation can be awarded?

   A Yes, but only for contracts exceeding Rs.100,000 B No, the party is entitled to reasonable compensation not exceeding the amount named, whether or not actual loss is proved C Yes, unless the contract is for the sale of goods D Yes, actual loss must always be strictly proved first
3. Question 3 of 49

   Under Section 55, what is the effect of a party's failure to perform at a fixed time where time is of the essence of the contract?

   A The contract is automatically void B The promisee forfeits his right to any compensation C The contract is unaffected D The contract becomes voidable at the option of the promisee
4. Question 4 of 49

   Under Section 53, what happens when one party to a contract with reciprocal promises prevents the other from performing his promise?

   A The preventing party is entitled to compensation instead B Nothing; prevention has no legal consequence C The contract is automatically void for both parties D The contract becomes voidable at the option of the party so prevented, who is entitled to compensation
5. Question 5 of 49

   Under Section 51, in a contract of reciprocal promises to be simultaneously performed, must a promisor perform if the promisee is not ready and willing to perform his own reciprocal promise?

   A Only if the contract is for immovable property B Yes, regardless of the promisee's readiness C Yes, but he may claim double compensation D No
6. Question 6 of 49

   Which section of the Contract Act governs contracts contingent on an event NOT happening?

   A Section 35 B Section 32 C Section 33 D Section 34
7. Question 7 of 49

   Under Section 33, when can a contingent contract to do something if an event does NOT happen be enforced?

   A Only after a fixed period of five years B When the happening of that event becomes impossible, and not before C Only if both parties agree in writing D Immediately upon signing
8. Question 8 of 49

   Which two chapters of the original Contract Act, 1872 have been entirely repealed and now exist as separate standalone Acts?

   A Contingent Contracts and Breach of Contract B Bailment and Agency C Indemnity and Guarantee D Sale of Goods (Ch. VII) and Partnership (Ch. XI)
9. Question 9 of 49

   A delivers a machine to common carrier B for urgent delivery to A's mill, telling B the mill is stopped for want of it. B unreasonably delays delivery, causing A to lose a profitable government contract. Under Section 73's illustrations, for what is A entitled to compensation?

   A Only the lost government contract, not the mill's idle time B Both the mill's lost profit and the lost government contract C The average profit lost from the mill being idle during the delay, but not the loss of the separate government contract D Nothing, since B is a common carrier and thus exempt
10. Question 10 of 49

    Which section of the Contract Act governs the enforcement of contracts contingent on an event happening?

    A Section 33 B Section 36 C Section 31 D Section 32
11. Question 11 of 49

    Under Section 40, if it appears from the nature of a case that a promise was intended to be performed personally by the promisor, who must perform it?

    A The promisor himself B The promisor's legal representative only C Any competent person the promisor selects D Either party, at their discretion
12. Question 12 of 49

    Under Section 63, may a promisee dispense with or remit, wholly or in part, performance of the promise made to him?

    A No, only the promisor may excuse his own non-performance B No, performance can only be excused by a court order C Yes D Only with the consent of a third-party guarantor
13. Question 13 of 49

    Which section of the Contract Act governs liability of a person to whom money is paid by mistake or under coercion?

    A Section 71 B Section 69 C Section 72 D Section 70
14. Question 14 of 49

    What happened to Chapter XI of the Contract Act, 1872, which originally dealt with Partnership?

    A It was repealed with no replacement legislation B It remains in force today C It was repealed by the Partnership Act, 1932 D It was merged into the Companies Act
15. Question 15 of 49

    Under Section 36, what is the effect of a contingent agreement to do something if an impossible event happens?

    A The agreement is voidable at the option of either party B The agreement is valid but unenforceable C The agreement is void, whether or not the impossibility is known to the parties at the time D The agreement becomes a wagering agreement
16. Question 16 of 49

    Under Section 32, what happens to a contingent contract if the event on which it depends becomes impossible?

    A The contract becomes void B Nothing; it remains enforceable indefinitely C The contract is automatically extended D The contract converts into an indemnity
17. Question 17 of 49

    Under Section 68, if a person incapable of contracting (or someone he is legally bound to support) is supplied with necessaries suited to his condition in life, what is the supplier entitled to?

    A Nothing, since the incapable person cannot be bound at all B Reimbursement only if a court pre-approves the supply C Full contractual damages as if a valid contract existed D Reimbursement from the property of the incapable person
18. Question 18 of 49

    Under Section 70, where a person lawfully does something for another (not intending to act gratuitously) and that other enjoys the benefit, what is the latter bound to do?

    A Nothing, since no formal contract exists B Report the matter to a magistrate C Make compensation to the former, or restore the thing done or delivered D Return the item only if specifically demanded within 7 days
19. Question 19 of 49

    Under Section 71, what is a person who finds goods belonging to another and takes them into custody treated as, for responsibility purposes?

    A A bailee B Exempt from any responsibility whatsoever C The absolute owner of the goods D A trespasser
20. Question 20 of 49

    Which section of the Contract Act deals with the effect of accepting performance of a promise from a third person?

    A Section 41 B Section 40 C Section 63 D Section 42
21. Question 21 of 49

    Under Section 73, is compensation given for remote and indirect loss caused by a breach?

    A Yes, always, without limitation B Yes, if the breaching party acted in bad faith C Yes, but only in commercial contracts D No
22. Question 22 of 49

    Under Section 67, if a promisee neglects or refuses to afford the promisor reasonable facilities for performance, what is the effect?

    A The promisor remains fully liable regardless B The promisor is excused for non-performance caused by such neglect or refusal C The contract automatically becomes void D The promisor must sue for specific performance before being excused
23. Question 23 of 49

    A contracts to sell 500 bales of cotton to B on a fixed day, without knowing B's mode of business. A breaks the promise and B is forced to close his mill for lack of cotton. Under Section 73, is A responsible for the loss from B's mill closure?

    A No, and B is also barred from recovering the cotton price difference B No, A is not responsible, since this loss was not in A's knowledge or contemplation C Yes, but only for half the loss D Yes, A is fully responsible for all resulting losses
24. Question 24 of 49

    Under Section 74's Exception, what is the effect regarding bail-bonds and similar instruments for performance of a public duty?

    A Only the government may sue on such instruments B The person is liable, upon breach, to pay the whole sum mentioned in the instrument C Such instruments are unenforceable D Only reasonable compensation is payable, as in ordinary contracts
25. Question 25 of 49

    What happened to Chapter VII of the Contract Act, 1872, which originally dealt with the Sale of Goods?

    A It was renumbered but never repealed B It remains in force alongside the Sale of Goods Act, 1930 C It was repealed by the Sale of Goods Act, 1930 D It was repealed and never replaced by any subsequent law
26. Question 26 of 49

    Under Section 39, when a party refuses to perform his promise in its entirety, what may the promisee do?

    A Nothing until the limitation period expires B Put an end to the contract, unless he has signified acquiescence in its continuance C Automatically forfeit his own right to compensation D Only sue for specific performance, never rescind
27. Question 27 of 49

    Under Section 31, how is a 'contingent contract' defined?

    A A contract that automatically renews annually B A contract that must be performed within 30 days C A contract to do or not to do something if some event, collateral to such contract, does or does not happen D Any contract involving more than two parties
28. Question 28 of 49

    Under Section 43, where two or more persons make a joint promise, may the promisee compel any one of them to perform the whole promise, absent a contrary agreement?

    A No, all joint promisors must be sued together B Yes C No, the promisee must apportion the claim equally among all D No, only the first-named promisor may be compelled
29. Question 29 of 49

    Which section of the Contract Act addresses novation, rescission, and alteration of a contract?

    A Section 64 B Section 62 C Section 63 D Section 65
30. Question 30 of 49

    Under Section 75, is a person who rightfully rescinds a contract entitled to compensation for damage sustained through non-fulfilment?

    A No, rescission extinguishes any right to compensation B Only if the rescission was court-ordered C Yes D Only if the contract was for immovable property
31. Question 31 of 49

    Under Section 64, when a person rescinds a voidable contract, what must he do with any benefit he received under it from the other party?

    A Pay it to the government as a penalty B Restore such benefit, so far as may be, to the person from whom it was received C Retain it as compensation for his trouble D Nothing; rescission extinguishes all restitution obligations
32. Question 32 of 49

    Under Section 37, do promises generally bind the representatives of a deceased promisor before performance?

    A Only if the representatives explicitly agree to be bound B No, death always extinguishes every promise C No, only promises regarding immovable property survive D Yes, unless a contrary intention appears from the contract
33. Question 33 of 49

    Under Section 72, what must a person do who has received money or a thing by mistake or under coercion?

    A Only report it to the police B Retain it until sued in court C Repay or return it D Nothing, if he acted in good faith
34. Question 34 of 49

    Under Section 38, if a promisor's offer of performance is not accepted by the promisee, is the promisor responsible for non-performance?

    A No, and he does not lose his rights under the contract B Only if the offer was made in writing C Yes, he remains fully liable regardless D Yes, but only for half the contract value
35. Question 35 of 49

    Under Section 44, does releasing one joint promisor discharge the other joint promisors?

    A Yes, unless the promisee objects B Yes, but only if the release is in writing C No D Yes, releasing one releases all
36. Question 36 of 49

    Under Section 35, what happens to a contract contingent on a specified event happening within a fixed time, if that time expires without the event occurring?

    A The contract is automatically extended for a further fixed time B The contract becomes void C Nothing changes; the contract remains open indefinitely D The contract converts to a contingent contract on non-happening
37. Question 37 of 49

    Under Section 32, when can a contingent contract to do something on an uncertain future event happening be enforced?

    A Only after one year has elapsed B Unless and until that event has happened C Immediately upon the contract being signed D Only with court permission
38. Question 38 of 49

    Under Section 65, when an agreement is discovered to be void, what must a person who received an advantage under it do?

    A Nothing, unless a court specifically orders restitution B Donate it to a charity of his choice C Keep the advantage, since the agreement no longer exists D Restore it, or make compensation for it, to the person from whom it was received
39. Question 39 of 49

    Which section of the Contract Act deals with the responsibility of a finder of goods?

    A Section 71 B Section 68 C Section 72 D Section 70
40. Question 40 of 49

    Under Section 46, where no time for performance is specified and no application by the promisee is required, within what period must the promise be performed?

    A A reasonable time B Exactly 90 days C Exactly one calendar year D Immediately, with no discretion
41. Question 41 of 49

    Under Section 73, what compensation is a party entitled to upon breach of contract?

    A Compensation for loss or damage which naturally arose in the usual course of things, or which the parties knew was likely to result from the breach B A fixed statutory penalty regardless of actual loss C Unlimited compensation for any loss whatsoever, however remote D Only nominal damages of Re.1
42. Question 42 of 49

    Under Section 41, once a promisee accepts performance of a promise from a third person, can he afterwards enforce it against the original promisor?

    A No B Yes, at any time within the limitation period C Yes, if the third person later becomes insolvent D Yes, but only for the unpaid balance
43. Question 43 of 49

    Which section of the Contract Act deals with a party's right to compensation upon rightfully rescinding a contract?

    A Section 75 B Section 64 C Section 66 D Section 74
44. Question 44 of 49

    Under Section 62, if parties to a contract agree to substitute a new contract for it, or to rescind or alter it, must the original contract still be performed?

    A Yes, unless a court specifically discharges it B Yes, the original contract remains binding regardless C No, the original contract need not be performed D Only the rescission is valid; alteration is not permitted
45. Question 45 of 49

    A builder contracts to erect a house by a fixed date so B can let it to C, and A is informed of the B-C contract. A builds so badly the house collapses, causing B to lose C's rent and pay C compensation. Under Section 73's illustrations, what must A pay B?

    A Only the compensation B paid to C, not the rebuilding cost B Only the cost of rebuilding the house C Nothing, since A was not a party to the B-C contract D The cost of rebuilding, the rent lost, and the compensation B paid to C
46. Question 46 of 49

    Which section of the Contract Act governs compensation where a penalty is stipulated for breach?

    A Section 65 B Section 73 C Section 75 D Section 74
47. Question 47 of 49

    Which section of the Contract Act deals with agreements contingent on impossible events?

    A Section 36 B Section 35 C Section 31 D Section 34
48. Question 48 of 49

    Under Section 56, what is the effect of an agreement to do an act impossible in itself?

    A Automatically converted to a contract of indemnity B Void C Voidable at the option of the promisor D Valid but unenforceable
49. Question 49 of 49

    Under Section 69, is a person who is interested in a payment that another is legally bound to make, and who therefore pays it, entitled to reimbursement?

    A No, such a payment is treated as a gift B Only if the paying party is a licensed moneylender C No, unless the payment exceeds Rs.10,000 D Yes, entitled to be reimbursed by the other

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