Quiz To Improve Your Legal Knowledge - Capacity To Contract

71 Questions | Total Attempts: 4202

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Quiz To Improve Your Legal Knowledge - Capacity To Contract - Quiz

Capacity to contract means a party has the legal ability to enter into a contract. Capacity also means a person has to be competent as defined by law. Someone's capacity is determined by whether or not they have reached the age of majority and if they are mentally capable of understanding the applicable contract terms. Quiz to Improve Your Legal Knowledge about Capacity to Contract


Questions and Answers
  • 1. 
    The requirement that the parties to an  to agreement must be competent to contract, is laid down in 
    • A. 

      Sec 10

    • B. 

      Sec 11

    • C. 

      Sec 24

    • D. 

      Sec 25

  • 2. 
    The capacity to contract (i.e.. Competence of the parties) is defined in
    • A. 

      Sec 10

    • B. 

      Sec 11

    • C. 

      Sec 24

    • D. 

      Sec 25

  • 3. 
    The capacity to contract means
    • A. 

      Willingness of the parties to enter into a contract

    • B. 

      Intention of the parties to enter into a contract

    • C. 

      Competence of the parties to enter into a valid contract.

    • D. 

      Certificate to enter into a valid contract

  • 4. 
    The Capacity to contract is
    • A. 

      A legal rule of validity

    • B. 

      An essential element of a valid contract

    • C. 

      An essential element of competency

    • D. 

      None of these

  • 5. 
    An agreement by or with a party not competent to contract is
    • A. 

      Minors

    • B. 

      Voidable

    • C. 

      Forbidden

    • D. 

      Void

  • 6. 
    Which of  the following persons are not competent to contract ?
    • A. 

      Minors

    • B. 

      Persons of un sound mind

    • C. 

      Persons disqualified by law

    • D. 

      All of these.

  • 7. 
    Every person is competent  to contract who is of the
    • A. 

      Age of majority

    • B. 

      Age of minority

    • C. 

      Sound reputation

    • D. 

      Sound financial

  • 8. 
    Every person Is competent to contract who is
    • A. 

      Of sound mind

    • B. 

      Not disqualified from contracting

    • C. 

      Both (a) and (b)

    • D. 

      None of these

  • 9. 
    For the purposes of entering into contract, a minor is a person who has not completed the age of
    • A. 

      15 yrs

    • B. 

      18 yrs

    • C. 

      21 yrs

    • D. 

      25 yrs

  • 10. 
    Under English Law, for all purposes, a minor is a person who is under the age of
    • A. 

      15 yrs

    • B. 

      18 yrs

    • C. 

      21 yrs

    • D. 

      25 yrs

  • 11. 
    A minor is defined as a person who has not completed eighteen years of age in section 3 of  the
    • A. 

      Guardians and Wards Act, 1890

    • B. 

      Indian Contract Act, 1872

    • C. 

      Indian Majority Act, 1875

    • D. 

      Court of Wards Act

  • 12. 
    For the purposes of validity of contract, a person entering Into contract should be of sound mind
    • A. 

      Only at the time when he makes the contract

    • B. 

      Only at the time when he enforces the contract

    • C. 

      Both at the time of making as well as enforcement of contract

    • D. 

      Throughout his life

  • 13. 
    The soundness of mind for the purposes of entering into a valid contract is defined In 
    • A. 

      Sec lO

    • B. 

      Sec ll

    • C. 

      Sec l2

    • D. 

      Judicial decisions

  • 14. 
    A drunken or intoxicated person Is not competent to contract as he falls in the category  of
    • A. 

      Persons disqualified by law

    • B. 

      Persons of unsound mind

    • C. 

      Persons discarded by society

    • D. 

      Enemies of society

  • 15. 
    Which of the following are the persons of unsound mind ?
    • A. 

      Idiot

    • B. 

      Iunatic

    • C. 

      Drunken

    • D. 

      All of these

  • 16. 
    An Idiot can enter Into a valid contract at a time when he Is of sound mind
    • A. 

      Alien enemies

    • B. 

      Insolvents

    • C. 

      Convicts

    • D. 

      AII of these

  • 17. 
    Which of the following persons are not competent to contract being the persons disqualified by law ?
    • A. 

      Alien enemies

    • B. 

      Insolvents

    • C. 

      Convicts

    • D. 

      All of these

  • 18. 
    Which of the following persons are not competent to contract being the persons disqualified by law ?
    • A. 

      Idiots

    • B. 

      Lunatics

    • C. 

      Alien

    • D. 

      Drunken persons

  • 19. 
    Flaw in capacity to contract may arise form
    • A. 

      Uncertainty of object

    • B. 

      Unsoundness of mind

    • C. 

      Want of consideration

    • D. 

      Illegality of object

  • 20. 
    Incompetency to enter into a contract, Includes
    • A. 

      Minority

    • B. 

      Disqualificatlon

    • C. 

      Unsoundness of mind

    • D. 

      AII of these

  • 21. 
    As a general rule an agreement with or by  a minor Is 
    • A. 

      Void ab-intio

    • B. 

      Voldable

    • C. 

      Valid

    • D. 

      Unlawful

  • 22. 
    The leading case on the point that minor's agreement is void ab initio,is
    • A. 

      Lalman Shukla v. Gauri Datt

    • B. 

      Cariill V. Carbolic Smoke Ball Co

    • C. 

      Mohoribiobi v. Dharmaodas Ghose

    • D. 

      Nash v. Imman

  • 23. 
    In certain circumstances minor's agreements are considered valid and enforceable
    • A. 

      True,as certain exception are recognised under law

    • B. 

      False,as minor's agreements are void ab Initio

  • 24. 
    The expression void ab initio means the contract
    • A. 

      Becoming void at a later stage

    • B. 

      Void form the very beginning

    • C. 

      Enforceable after rectifying the defect

    • D. 

      Voidable at the option of minor

  • 25. 
    A minor who fraudulently enters into a contract representing that he is a major, then afterwards,  he
    • A. 

      Can take the defence of his minority

    • B. 

      Cannot take the defence of his minority

    • C. 

      Cannot take be held guilty of fraud

    • D. 

      Is debarred form entering into any contract

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