1. Principal is NOT liable for the agents act if 

(a) Agent acts within the scope of his authority 
(b) Agent exceeds his authority 
(c) Fraud or misrepresentation committed for benefit of the principal 
(d) Work done out of his authority but the principal accepts it 

2. An agency comes to an end :- 

(a) By performance of contract 
(b) By agreement between the principal and the agent 
(c) By renunciation of his authority by the agent 
(d) All of the above 

3. An agency is irrecoverable : 

(a) Where the authority of agency is one coupled with interest 
(b) Where the agent has incurred personal liability 
(c) Both (a) and (b) 
(d) None of the above 

4. The termination of an agents authority terminates the authority of the sub-agent appointed by the agent. 

(a) True 
(b) Partly true 
(c) False 
(d) Partly false 

5. In case the contract of agency has been terminated and a third party enters into a contract with the agent without knowing this fact, then 

(a) The contract will be binding on the principal 
(b) The contract will not be binding on the principle 
(c) The contract will only be binding on the agent 
(d) None of the above 

6. An agreement for Lawful consideration with free consent, is: 

(a) Void 
(b) Valid 
(c) Voidable 
(d) Unlawful 

7. When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is: 

(a) Voidable  
(b) Void 
(c) Illegal 
(d) Valid 

8. Which of the following acts does not fall under the categories of fraud? 

(a) Intentional false statement of facts 
(b) Active concealment of facts 
(c) False statement in good faith 
(d) Promise made without intention to perform. 

9. According to Indian law, a contract made by mistake is: 

(a) Void 
(b) Valid 
(c) Voidable 
(d) Illegal 

10. A mistake as to a law not in force in India has the same effect as: 

(a) Mistake of fact 
(b) Mistake of Indian law 
(c) Mistake of foreign law 
(d) Misrepresentation 

MCQs on Indian Contract Act 1872