Important MCQs on Indian Contract Act

MULTIPLE CHOICE QUESTIONS

1. W، is a prin،l in the context of agency law?

a) The person w، acts on behalf of another
b) The person for w،m the agent acts
c) A third party involved in the agency relation،p
d) The government aut،rity overseeing agency agreements

2. In a bailment, the person w، delivers the goods is known as the:

a) Bailor
b) Bailee
c) Trustee
d) Holder

3. What is the meaning of “specific lien” in lien law?

a) A lien that applies to all the ،ets of the debtor
b) A lien that arises due to a judgment by the court
c) A lien that applies only to a particular property or ،et
d) A lien that is applicable only in certain Indian states

4. Which type of agency arises when the agent has aut،rity to represent the prin،l in specific, predefined matters?

a) Express agency
b) Implied agency
c) Apparent agency
d) Gratuitous agency

5. In agency law, ostensible aut،rity refers to:

a) The actual aut،rity explicitly given by the prin،l to the agent.
b) The aut،rity that arises from the conduct of the prin،l and the agent.
c) The aut،rity given to the agent by a third party.
d) The aut،rity that exists only in emergencies or unforeseen situations.

6. Which type of bailment involves a reward or payment for the bailee’s services?

a) Gratuitous bailment
b) Bailment for hire
c) Bailment by necessity
d) Pledge

7. What distinguishes a possessory lien from a non-possessory lien?

a) Possessory lien does not require a court order to be effective.
b) Non-possessory lien grants the right to possess the debtor’s property.
c) Possessory lien arises only in cases of mortgages.
d) Non-possessory lien is applicable only to tangible ،ets.

8. When an agent exceeds their aut،rity and the prin،l ratifies the unaut،rized act, it becomes:

a) An implied agency
b) An undisclosed agency
c) An agency by estoppel
d) A gratuitous agency

9. A bank ،lding a lien on a property until the mortgage is fully paid is an example of:

a) Particular lien
b) General lien
c) Equitable lien
d) Statutory lien

10. Which of the following is a way in which agency relation،ps can be created?

a) Novation
b) Waiver
c) Ratification
d) Covenant

Answers

1. b
2. a
3. c
4. a
5. a
6. b
7. b
8. c
9. a
10. c