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Free MCQ on Capacity to Contract

CA Foundation- Business Law November 2020 Examinations

The Indian Contract Act ,1872

For making an contract, the parties of contract must be in capacity to make contract. These capacity are defined by the Indian Contract Act, 1872 on the basis of age, mental stability and any disqualification by law. Find out some Free MCQ on Capacity to Contract to analyze your conceptual clarity.

Multiple Choice Questions

  1. Capacity to contract means
    1. Person must be capable by resources
    2. Competency of a person to make a contract
    3. Person should have intention to make contract
    4. None of the above
  2. Capacity to contract provided in
    1. Section 13
    2. Section 12
    3. Section 11
    4. None of the above
  3. Capacity to contract Includes
    1. Age of majority criteria
    2. Metal status criteria
    3. Prohibition by any Law
    4. All of the above
  4. In India, Age of majority is regulated by
    1. Indian Majority Act, 1870.
    2. Indian Majority Act, 1865.
    3. Indian Majority Act, 1875.
    4. Indian Majority Act, 1885.
  5. Ram has age of 17 years, 11 months and 29 days, Ram will be considered as
    1. Major
    2. Minor
    3. cannot be decided
    4. None of the above
  6. A contract made with a minor, will be
    1. Void
    2. Void-ab-initio
    3. Voidable at the option of minor
    4. Voidable at the option of other party
  7. Ram (age of 17) made a contract with Mohan (25 years) to provide a loan of rs. 100000. It was decided that Mohan will pay entire amount with interest after 1 year. After expiry of 1year Mohan denied paying the amount claiming that Ram had no capacity to contract hence contract was void from the beginning. Here remedy available to Ram is
    1. Ram can rectify the contract
    2. Ram can force Mohan to pay amount on the basis of original contract
    3. Ram has no remedy as contract was void-ab-intio
    4. None of the above
  8. A contract to sell the property of Minor can only be done by
    1. Guardian of the minor
    2. Certified Guardian of the Minor
    3. Any relative of the minor
    4. None of the above
  9. Which of the following is considered to fall is in the category of necessaries?
    1. expenses incurred for performing funeral ceremonies of minor’s parents
    2. Money borrowed to save minor’s property from sale in execution
    3. Expenses for education, Medical etc.
    4. All of the above
  10. A drunken or intoxicated person Is not competent to contract as they falls in the category  of
    1. Unsound mind Person
    2. Person of unlawful object
    3. Person disqualified by law
    4. None of the above

Answer Key

  1. (b)  2. (c)  3. (d)  4. (c)  5. (b)  6. (b)  7.  (c)  8.  (b)  9. (d)  10. (a)

Practice More:

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