1. Which of the following statement is/are correct 

(a) Ordinary damages are recoverable 
(b) Special damages are recoverable only if parties know about them 
(c) Remote or indirect damages are not recoverable 
(d) All of these 

2. Exemplary damages are not awarded in such case 

(a) Breach of promise to marry 
(b) Wrongful dishonour & customers cheque by banker 
(c) Breach of any business contract   
(d) None of the above 

3. Damages which the contracting parties fix at the time of contract in case of breach 

(a) Unliquidated Damages 
(b) Liquidated Damages 
(c) Nominal Damages 
(d) None of the above 

4. A order of court restraining a person from doing a particular act, it’s a case of

(a) Specific performance 
(b) Injuction 
(c) Both (a) & (b) 
(d) None of the above 

5. Under the Indian Contract Act, the contract of indemnity is restricted to such cases 

(a) Where the loss promise to be reimbursed is caused by the conduct of the promisor or any other person 
(b) The loss caused by the any events or accident which does not depend upon conduct of any person 
(c) Both (a) & (b) 
(d) None 

6. What is the ratio of parties in contract of indemnity and contract of guarantee 

(a) 2 : 3 
(b) 3 : 2 
(c) 1 : 3 
(d) 2 : 1 

7. In contract of indemnity, what is the liability of indemnifier against the indemnified

(a) Primary 
(b) Secondary  
(c) No liability 
(d) Both (a) & (b) 

8. In case of contract of guarantee, what is the liability of the surety against the principal debtor

(a) Primary 
(b) Secondary 
(c) No liability 
(d) Fully liable 

9. Which is not the case of discharge of surety 

(a) By notice of revocation 
(b) By death of surety 
(c) If creditor releases the principal debtor 
(d) None of the above 

10. What is the right of the bailee against the goods

(a) Owner 
(b) Possessor 
(c) Bailee can sell those goods 
(d) Both (a) & (b) 

MCQs on Indian Contract Act 1872