BUSINESS LAW UNIT I Quiz

According to the Indian Contract Act, 1872, a contract is defined as:

• An agreement enforceable by law

• A mutual understanding between two parties

• A written document signed by two parties

• A social agreement between friends

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

• Offer and acceptance

• Lawful consideration

• Lawful object

• Personal relationship between parties

Which of the following statements is TRUE about a valid contract?

• A contract must always be in writing

• A contract must have legal enforceability

• A contract can be enforced even without consideration

• A contract does not require mutual consent

Which type of contract is formed when an offer is accepted and all essential conditions are met?

• Void contract

• Executed contract

• Valid contract

• Illegal contract

A contract in which one party has performed their obligation while the other is yet to perform is known as:

• Void contract

• Executory contract

• Unilateral contract

• Contingent contract

An offer made to the public at large is called:

• Special offer

• General offer

• Cross offer

• Counteroffer

Communication of acceptance is complete against the proposer when:

• It is written in a letter

• It is put in the course of transmission

• It is received by the proposer

• It is signed by both parties

Consideration in a contract must be:

• Past only

• Present or future

• Present, past, or future

• Monetary only

Which of the following is an exception to the rule "No consideration, No contract"?

• Natural love and affection

• Illegal agreements

• Social agreements

• Moral obligations

A minor's contract is:

• Void

• Voidable

• Valid

• Illegal