1. If A makes an offer to B on a particular day, then the offer can be revoked by A before 

(a) B accepts the offer  
(b) A receives B’s acceptance 
(c) B has posted the letter of acceptance 
(d) Reasonable period of time 

2. If B accepts A’s offer by posting a letter of acceptance, and afterwards B wants to revoke the agreement, the acceptance can be revoked before  

(a) A has posted his confirmation 
(b) If revocation letter reaches before letter the acceptance letter 
(c) Reasonable period of time 
(d) None of the above 

3. Which one of the following is not a kind of consideration? 

(a) Executory consideration 
(b) Executed consideration 
(c) Past consideration 
(d) Conditional consideration 

4. Which of the following is not a consequence of an illegal contract? 

(a) It is voidable 
(b) Void 
(c) The collateral agreements are 
(d) None of the above also illegal 

5. The substitution of a new contract in place of an old contract thereby discharging the rights and liabilities of the old contract is called as

(a) Substitution 
(b) Novation 
(c) Discharge 
(d) Replacement 

6. The two types of breach are 

(a) Actual breach and Deemed breach 
(b) Actual breach and Conditional breach  
(c) Actual breach and Anticipatory breach 
(d) Actual breach and Remedial breach 

7. Where the amount of compensation claimed is left to be assessed by the court, then it is called as 

(a) Judicial damages 
(b) Liquidated damages 
(c) Unliquidated damages 
(d) None of the above 

8. Where the contracting parties agree in advance the amount payable in the event of breach, the sum payable is called as 

(a) Liquidated damages 
(b) Unliquidated damages 
(c) Judicial damages 
(d) Preliminary damages 

9. The damages intended to put the injured party in the same position he was before the contract are called 

(a) Unliquidated damages 
(b) Special damages 
(c) Exemplary damages 
(d) Ordinary damages 

10. A contract is always based upon 

(a) Consensus-ad-idem 
(b) Consideration 
(c) Intent to create legal obligation 
(d) All of the above 

MCQs on Indian Contract Act 1872