Contract Law Quiz

What is the legal definition of a contract under the Indian Contract Act, 1872?

• An agreement made orally

• An agreement enforceable by law

• A casual understanding

• An agreement that benefits one party

Which of the following is a necessary element for a contract to be valid?

• Capacity of the parties

• A verbal agreement

• An understanding of the law

• A third party

In contract law, what does 'offer' mean?

• A formal proposal to create an agreement

• A casual suggestion made between friends

• A general intention

• An informal agreement between two parties

Which of the following is NOT an essential element of a valid contract?

• Offer and acceptance

• Mutual consent

• Legal consideration

• Goodwill of parties

A contract is void when:

• One party breaches the contract

• The agreement is for an illegal purpose

• Both parties agree to terminate it

• One party changes the terms

Which of the following is the main responsibility of the company's auditors?

• To manage the company's finances

• To prepare the company's annual financial statements

• To examine and report on the company's financial records

• To make investment decisions for the company

Which of the following remedies is available for a breach of contract?

• Compensation for loss

• Return of goods only

• Revocation of offer

• None of the above

Which type of company has a single shareholder?

• Public company

• One-person company

• Limited liability company

• Private limited company

An agent's authority can be terminated by:

• The death of the agent only

• The death of the principal only

• Mutual agreement or action of the principal

• None of the above

Which of the following is the correct relationship between the principal and agent?

• Principal is a customer; agent is a servant

• Principal is an employer; agent is an employee

• Principal is a boss; agent is a subordinate

• Principal and agent share fiduciary duties