JUDICIAL/ LAW-EXAMS: IMPORTANT “ONE-LINERS”ON “INDIAN CONTRACT ACT, 1872”

1. True/ False: The law relating to ‘contract’ is subject matter of the Concurrent List (Part-III) of the Indian Constitution—True.
2. In terms of Article 246(2) of the Indian Constitution, the legislature (Union as well as State) has power to make law relating ‘contract’ under  Entry No._______of the Concurrent List of the VIIth Schedule—Entry No. 7.
3. The expression ‘Contract” is defined under Section______of the Indian Contract Act, 1872—Section 2(h).
4. An agreement enforceable by law is called—Contract.
5. The Indian Contract Act, 1872 (ICA) was latest amended in the year—2023.
6. The Indian Contract Act, 1872 (ICA) was latest amended in the year 2023 through which Act—The Mediation Act, 2023.
7. The Indian Contract Act, 1872 (ICA) is Act No.______of 1872—Act No.9.
8. Enactment Date: The Indian Contract Act, 1872 (ICA) was enacted on—25-April-1872.
9. Enforcement Date: The Indian Contract Act, 1872 (ICA) came into force on—01-September-1872.
10. The Indian Contract Act, 1872 (ICA) consist of total______Sections?—266 Sections.
11. Originally, Indian Contract Act, 1872 (ICA) was having 11-Chapters. Out of 11-Chapters, which two Acts were enacted—Sale of Goods Act, 1930 and Indian Partnership Act, 1932
12. Before enactment of Sale of Goods Act, 1930 (SOGA), the matters relating to sale of goods were dealt with by which Act?—Chapter VII of the Indian Contract Act, 1930.
13. Before enactment of Indian Partnership Act, 1932, the matters relating to partnership were dealt with by which Act?—Chapter XI of the Indian Contract Act, 1930.
14. The Preambular object of the Indian Contract Act, 1872 (ICA) is to—Define and amend (DA) certain parts of the law relating to contracts.
15. Territorial Extent—The Indian Contract Act, 1872 (ICA) extends to the whole of India except Jammu & Kashmir. IT was made applicable to whole of India w.e.f.—31-October-2019 through Jammu & Kashmir Reorganization Act, 2019.
16. Every promise and every set of promises, forming the consideration for each other, is called—Agreement. [Section 2(e)]
17. An agreement not enforceable by law is said to be—Void [Section 2(g)]
18. 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 or others, is a—Voidable contract [Section 2(i)]
19. Section 4 of the Indian Contract Act, 1872 deals with—Communication of Proposal and Acceptance when Complete.
20. Acceptance must be absolute and unqualified. It is so under Section—Section 7.
21. Balfour Vs. Balfour (1919:KB) is a leading question on—Intention to create legal relationship.
22. Section 10 of ICA, 1972 deals with—What Agreements are Contract.
23. Who is competent to contract is dealt with under Section_______of the ICA—Section 11.
24. Under the law of contract, when two or more persons agree upon the same thing in the same sense, it is called–Consent.
25. The expression “consent” is defined under Section ________of the ICA, 1872—Section 13.
26. Section 14 of ICA defines—Free Consent.
27. Consent without coercion, undue influence, fraud, misrepresentation or mistake is called—Free Consent.
28. True/ False: A “threat to suicide” is a coercion under Section_______of the ICA, 1872—Section 15.
29. True/ False: A “threat to suicide” with intention of causing any person to enter into an agreement is a “coercion” and does not amount to “free consent” under the law of contract as applicable in India—True.
30. Where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other, is a situation of—Undue Influence.
31. True/ False: A contract arisen out of “undue influence” is a “void” contract—False. [Such contract shall be voidable contract]
32. True/ False—An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact—True [Section 20].
33. As per Section_______of ICA, 1872, an agreement without consideration is void—Section 25.
34. Adequacy of consideration not necessary. So provided under Section_____?—Explanation 2 to Section 25.
35. True/ False: Though, adequacy of consideration not necessary, the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given—True.
36. Section 28 (Agreement in restraint of legal proceedings) shall not render illegal a contract in writing by which any bank or financial institution stipulate a term in a guarantee or any agreement making a provision for guarantee for extinguishment of the rights or discharge of any party thereto from any liability under or in respect of such guarantee or agreement on the expiry of a specified period which is not less than __________year from the date of occurring or non-occurring of a specified event for extinguishment or discharge of such party from the said liability—One-year. [Explanation 3 to Section 28]
37. Section 31 of the Indian Contract Act defines—Contingent Contract.
38. A contract to do or not to do something, if some event, collateral to such contract, does or does not happen, is called—Contingent Contract. [Section 31]
39. Separation of Obligation—Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promises is a contract, but the second is a—Void Agreement.
40. An agreement to do an “impossible act” in itself is—Void. [Section 56]
41. Alternative promise—In the case of an alternative promise, one branch of which is legal and the other illegal, the legal branch can—Be Enforced. [Section 58]
42. A common law principle stating that in a running account, the earliest credit entry is applied to the earliest debit entry—a “first-in, first-out” (FIFO) approach, in absence of any contrary agreement, is know as—Clayton’ Rule.
43. Clayton’s Rule was propounded in which case?—Devaynes Vs. Noble (1816),
44. In India, Clayton’s Rule is incorporated under which Sections?—Section 59 to- 61.
45. True/ False: Clayton’s Rule is a principle of appropriation of payments, often summarized as “first in, first out” (FIFO)—True.
46. Liability to Replenish—When an agreement is discovered to be void, or when a contract becomes void, Section ________of the ICA, 1872 impose liability upon the person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it—Section 65.
47. A pays B 1,000 rupees in consideration of B’s promising to marry C, A’s daughter. C is dead at the time of the promise. Here, the agreement is ________, but B must repay A the 1,000 rupees—Void. [Section 65]
48. True/ False: When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it—True.
49. Section 71 of the Indian Contract Act, 1872 deals with—Responsibility of Finder of Goods.
50. Section_______of the ICA, entitles the supplier  to claim for necessaries supplied to person incapable of contracting, or on his account—Section 68.
51. Supply of Necessaries—A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from B’s property under Section_____of ICA, 1872—Section 68.
52. Responsibility of finder of goods—A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as of a—Bailee.
53. Which Chapter of the Indian Contract Act, 1872 was repealed by the Sale of Goods Act, 1930—Chaper VII (Sections 76- 123) relating to “Sale of Goods”.
54. Chapter VIII of the ICA, 1872 deals with—Contract if Indemnity & Guarantee.
55. A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a contract of—Indemnity.
56. “Contract of Indemnity” is defined under Section______of ICA—Section 124.
57. A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of—Indemnity. [Section 124]
58. Insurance policies are which kind of contract—Contract of Indemnity.
59. “Contract of Guarantee” is defined under Section—Section 126.
60. A contract to perform the promise, or discharge the liability, of a third person in case of his default is called—Contract of Guarantee. [Section 126]
61. The person who gives the guarantee is called the—Surety. [Section 126]
62. The person in respect of whose default the guarantee is given is called the—Principal Debtor. [Section 126]
63. The person to whom the guarantee is given is called the—Creditor. [Section 126]
64. True/ False: A guarantee may be either oral or written—True. [Section 126]
65. True/ False: A surety/ guarantor is regarded as “Favoured Debtor”—True.
66. Consideration for guarantee— True/ False: Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee—True. [Section 127]
67. Surety’s liability— True/ False: The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract—True. [Section 128]
68. The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract. It is so provided under Section______of the ICA, 1872—Section 128.
69. Continuing guarantee—A guarantee which extends to a series of transactions, is called—Continuing Guarantee.
70. Section 129 defines—Continuing Guarantee.
71. True/ False: Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety—True. [Section 137]
72. Subrogation: The right of the surety to recover his money from the Principal Debtor on settlement of the liabilities of PD with creditor is called—Subrogation.
73. Guarantee by misrepresentation—Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is—Invalid [Section 143]
74. Guarantee by concealment—Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is—Invalid [Section 144]
75. True/ False: Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person has joined in it as co-surety, the guarantee is not valid if that other person does not join—True. [Section 144]
76. Section 148 of the Indian Contract Act, 1872 defines—Bailment, Bailor and Bailee.
77. The word ‘bailment’ is derived from the French word—Ballier (means to deliver).
78. The delivery of goods from one person to another for a specific purpose, and the goods must be returned or otherwise disposed of according to the bailor’s directions after the purpose is accomplished is a contract of—Bailment.
79. The gratuitous bailments are recognized and governed by which Act in India—Indian Contract Act, 1872.
80. the general provisions of bailment of the Under the Indian Contract Act, 1872,, provided in Sections 148 to 171. If the bailee does any act with regard to the goods bailed, inconsistent with the conditions of the bailment, a contract of bailment is __________at the option of the bailor— Voidable [S. 153]
81. A type of bailment where one party (the bailor) delivers goods to another party (the bailee) without any expectation of compensation or reward. It is a bailment created solely for the benefit of one party, either the bailor or the bailee, and is characterized by the absence of any contractual obligation for payment is known as—Gratuitous Bailment.
82. Gratuitous Bailment—A gratuitous bailment is terminated by the death either of the bailor or of the bailee. [Refer Section 162].
83. Sale by Finder of Goods—When a thing which is commonly the subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses, upon demand, to pay the lawful charges of the finder, the finder may sell it, when the lawful charges of the finder, in respect of the thing found, amount to __________of its value—Two-thirds. [Section 169]
84. Banker’ right of general lien is given under Section ________of the ICA—Section 171.
85. “Pledge” “pawnor” and “pawnee” are defined under Section_______of ICA, 1872—Section 172.
86. The bailment of goods as security for payment of a debt or performance of a promise is called—“Pledge”.
87. The bailor in case of pledge called—Pawnor.
88. The bailee in case of pledge is called—Pawnee.
89. True/ False: In lien, there is no power of sale or disposition of goods on default—True.
90.  True/ False: In case of pledge, there is power of sale or disposition of goods on default—True.
91. Pawnor has right of redemption under Section______of the ICA, 1872—Section 177.
92. The terms ‘Agent’ and ‘Principal’ are defined under Section_______of the Indian Contract Act, 1872—Section 182.
93. Who may employ agent—Any person competent to contract. [Section 183]
94. Who may be agent—Any person competent to contract. [Section 184]
95. True/ False: No consideration is necessary to create an agency—True. [Section 185]
96. Section 191 of the ICA, 1872 defines the expression—Sub-agent.
97. A person employed by, and acting under the control of, the original agent in the business of the agency is called—Sub-Agent. [Section 191
98. Agent’s responsibility for sub-agent—The agent is responsible to whom for the acts of the sub-agent?—Principal. [Section 192]
99. Sub-agent’s responsibility—True/ False: The sub-agent is responsible for his acts to the agent, but not to the principal, except in cases of fraud or wilful wrong—True. [Section 192]
100. Agent’s accounts— True/ False: An agent is bound to render proper accounts to his principal on demand—True [Section 213]
101. Liability of Employer for Criminal Act—Section_______of the Indian Contract Act, 1872 provides that even if one person employs another to do an act which is criminal, the employer is not liable to the agent to indemnify him against the consequences of that act—Section 224.
102. A employs B to beat C, and agrees to indemnify him against all consequences of the act. B thereupon beats C, and has to pay damages to C for so doing. Whether A is liable to indemnify B for those damages—No. [Refer Section 224 r/w Section 24 of the ICA].
103. Which Chapter of the Indian Contract Act, 1872 was repealed by the Indian Partnership Act, 1932—Chaper XI (Sections 239-266) on Partnership.

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