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                                                  Business Law - Indian Contract Act 
                                                           MCQs for practice 
                                                                   Set-1 
                 1. Indian Mercantile Law is based on  
                         (i) Australian Law                       (ii) American Law 
                         (iii) Russian Law                        (iv) English Law 
                  2. Indian Contract act was Passed in  
                         (i) 1881                                 (ii) 1930                                     ANSWERS 
                         (iii) 1872                               (iv) 2008 
                 3. An implied agreement is created:                                                          1.  (iv) 
                         (i) Orally                               (ii) In writing                             2.  (iii) 
                                                                                                              3.  (iv) 
                         (iii) By registration                    (iv) By conduct or circumstances            4.  (iii) 
                 4. An agreement which is enforceable at the option of the aggrieved party is called          5.  (iv) 
                                                                                                              6.  (ii) 
                         (i) Void agreement                       (ii) Illegal agreement                      7.  (iii) 
                         (iii) Voidable agreement                 (iv) Valid agreement                        8.  (iv)  
                 5. Which one of the following is not the source of Indian Mercantile law                  
                         (i) Customs and usages                   (iii) Precedent judicial decisions       
                         (iii) English Mercantile law             (iv) RBI Act, 1934 
                 6. Contract is defined under section 
                         (i) 2(a)                                 (ii) 2(h) 
                         (iii) 2 (e)                              (iv) None of the above 
                 7. A standing offer is also known as 
                         (i) Cross offer                          (ii) Counter offer 
                         (iii) Tender                             (iv) Cancelled offer 
                 8.  An offer comes to an end by 
                         (i) By counter offer                     (ii) by Notice 
                         (iii) by insanity of proposer            (iv) All of the above