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Nature of contracts Interview Questions & Answers
A contract which ceases to be enforceable by law becomes void when it cases to be enforceable. A voidable contract is a contract which a enforceable at the option of one party but not at the option of other party. Nature: A void contract was valid when it was made. The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The courts must enforce a valid contract as it is made, unless there are grounds that bar its enforcement.

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Question	Rating	View Answer
P agrees to pay a certain sum to Q, if Q brings on earth a star from sky. This is a: a) Valid contract b) Void agreement c) Enforceable contract d) None of the above		View Answer
Indian Contract Act, 1872 is passed by: a) Indian Parliament b) British Parliament c) U.S Congress d) None of these		View Answer
In an auction sale, 'X' is the highest bider. The auctioneer accepts the offer by not speaking but striking the hammer on the table. This amounts to: a) Express acceptance b) Implied acceptance c) Future acceptance d) No acceptance		View Answer
A enquires from B, "Will you purchase my cow for $100?" B replies," I shall purchase your cow for $100 provided you purchase my parrot for $120." In this case: a) B has accepted the offer of A b) B has made a counter offer to A c) A is bound by the actions of B d) B cannot make such an offer		View Answer
Which of the following promises is enforceable? a) X promises to pay Rs.5,000/- to Y who saved him from drowning b) X promises to pay Rs. 5,000/- to his son c) X promises to denote Rs 5,000/- to an officer's club d) X promises to pay Rs 5,000/- as additional fees to his advocate for winning a suit		View Answer
Which of the following is false? An offer to be valid must: a) Contain a term the non- compliance of which would amount to acceptance. b) Intend to create legal relations c) Have certain and unambiguous terms d) Be communicated to the person to whom it is made		View Answer
__________________ contract is good in substance but suffers from some technical defect: a) Valid b) Illegal c) Voidable d) Enforceable		View Answer
X promises to pay Z Rs 5,00,000 if Z can make his dead wife alive. Such an agreement is: a) Valid b) Void c) Impossible to perform d) Unenforceable		View Answer
Agreement is defined in Section ________ of the Indian Contract Act, 1872. a) 2(e) b) 2(c) c) 2(g) d) 2(i)		View Answer
10. When two parties exchange identical offers in ignorance at the time of each other's offer, the offers ae called: a) Counter Offer b) Cross Offer c) General Offer d) Special Offer		View Answer
11. An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other is a : a) Valid contract b) Unforceable contract c) Voidable contract d) Void agreement		View Answer
L says to J, "I shall sell my house, will you buy?" J says" Yes, I shall buy". The agreement is void due to; a) Uncertainity of meaning b) Uncertainity of price c) Uncertainity of existence iof subject matter d) Uncertainity of quality of subject matter		View Answer
Which one of the following constitutes an offer in a self- service store? a) Picking up an article and approaching the cashier's desk for payment b) Display of goods at the shop window c) There is no offer in such cases d) when the customer asks for some goods		View Answer
In case of illegal agreements, the collateral agreements are: a) valid b) Voidable c) Void d) None		View Answer
Goods displayed in a shop window with a price label will amount to: a) Offer b) Acceptance of Offer c) Invitation to offer d) Counter offer		View Answer
A agrees to sell B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is: (a) Valid and enforceable (b) Void and enforceable (c) Void and wagering (d) Voidable and wagering		View Answer
On 5th of a month X makes an offer to Y, by a letter, which reaches Y on 6th. On the 7th, Y posts his letter of acceptance. Meanwhile, on the 6th X posts a letter to Y revoking the offer. On seeing it Y sends a telegram to X on 8th confirming the acceptance given through his letter of the 7th. Discuss the legal effects of the three letters and the telegram: (a) There is no contract between X and Y (b) The contract is concluded between X and Y on 7th when B posts the letter of acceptance. (c) Either (a) or (b) (d) None of the above		View Answer
X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram. When the revocation is complete? (a) When the telegram is received by X (b) When X accepts the revocation (c) When the telegram is dispatched (d) When the contents of the telegram come to the knowledge of X.		View Answer
An agreement which is enforceable by law at the option of one or more of the parties therto, but not at the option of the other, is a: (a) Valid contract (b) Unenforceable contract (c) Voidable contract (d) Void agreement		View Answer
x offers to sell his house to Y for Rs 10 Lacs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here the letter of X would: (a) Amount to a proposal (b) Amount to a promise (c) No amount to a proposal (d) Amount to acceptance		View Answer