Quiz on Commercial Law

As per Section 2(h) of the Indian Contract Act, a contract is:

• A promise enforceable by law

• An agreement enforceable by law

• A lawful promise

• A lawful act

• A lawful fact

What is a quasi-contract primarily intended to prevent?

• Unjust enrichment

• Breach of contract

• Violation of public policy

• Failure of consideration

• consideration

Clayton's Rule relates to:

• Priority of payments among multiple debts

• Revocation of offers

• Formation of agency

• Determination of consideration

• Consideration

The liability of a guarantor under Section 128 of INDIAN CONTRACT ACT is:

• Primary

• Co-extensive with that of the principal debtor

• Independent

• Collateral

• Mortgage

What is the primary element of a valid contract?

• Free consent

• Consideration

• Legal enforceability

• All of the above

• Compensation

What distinguishes a void contract from a voidable one?

• Enforceability

• Legal object

• Time limit for revocation

• Indemnity

• Compensation

Under Section 6 of INDIAN CONTRACT ACT, an offer can be revoked by:

• Notice

• Lapse of time

• Death of offeror

• All of the above

• Time Lapse

What is the key feature of a quasi-contract?

• It is based on fairness

• It is a traditional contract

• It requires free consent

• It is always oral

• Written

What is the primary remedy for a breach of contract?

• Compensation

• Specific performance

• Punitive damages

• All of the above

• Penalty

Which section of the Indian Contract Act defines indemnity?

• Section 124

• Section 126

• Section 127

• Section 128

• Section 135