1. Which of these parties cannot demand performance of promise? 

(a) Promisee 
(b) Any of the Joint Promisees. 
(c) On the death of a Promisee, his Legal Representative. 
(d) Stranger to the Contract 

2. If a new contract is substituted in place of an existing contract it is called - 

(a) Alteration 
(b) Rescission 
(c) Novation 
(d) Waiver

3. The phrase “Quantum Meruit” literally means -

(a) As much as is earned 
(b) The fact in itself 
(c) A Contract for the sale 
(d) As much as is gained. 

4. Damages awarded to compensate the injured party for the actual amount of loss suffered by him for breach of contract are called - 

(a) General / Ordinary Damages 
(b) Special Damages 
(c) Vindictive Damages 
(d) Nominal Damages 

5. A finder of lost goods is a 

(a) Bailor 
(b) Bailee 
(c) True Owner 
(d) Thief. 

6. Which of the following is the essential ingredient of contract of indemnity: 

(a) Contract to make good the loss 
(b) Loss must be caused to the indemnity holder. 
(c) Loss may be caused by promiser or any other person 
(d) All of the above. 

7. When the goods are delivered by one to another by way of security for the money borrowed, then it is technically known as: 

(a) Hire 
(b) Pawnee 
(c) Pledge 
(d) None of the above. 

8. How agency is created: 

(a) By Direct appointment 
(b) By implication 
(c) By necessity 
(d) All of the above 

9. The Delivery of goods by one person to another as security for the payment of a debt is called 

(a) Bailment 
(b) Pledge 
(c) Mortgage 
(d) Hypothecation 

10. An agreement enforceable by law is a

(a) Promise 
(b) Contract 
(c) Obligation 
(d) Lawful Promise 

MCQs on Indian Contract Act 1872