Quiz 2: Final Assessment | Verbatra Courses

Question 1 of 10

Section 11 of the Indian Contract Act specifies the requirements for capacity to contract. Which of the following is NOT a requirement under this section?

AAttaining the age of majority. BBeing of sound mind. CNot being disqualified by law from contracting. DBeing a citizen of India.

Question 2 of 10

A 17-year-old minor signs a contract to purchase a smartphone. The seller delivers the phone. The minor refuses to pay. The seller sues. What is the most likely outcome under Indian law?

AThe minor must pay because the contract is enforceable against them. BThe contract is void from the beginning. The seller cannot enforce it against the minor. The seller may have a limited remedy under Section 68 if the phone qualifies as a necessary. CThe minor must pay because they accepted delivery of the phone. DThe contract is voidable at the minor's option; if the minor confirms it on reaching 18, it becomes enforceable.

Question 3 of 10

A senior partner of a law firm pressures a junior associate to assign her copyright in a textbook to the firm for nominal payment. The junior associate signs the assignment under the implicit threat of losing her job. Which doctrine most directly applies?

ACoercion under Section 15. BUndue influence under Section 16. CMistake under Section 20. DMisrepresentation under Section 18.

Question 4 of 10

Which of the following clauses is MOST LIKELY to be unenforceable under Section 27 of the Indian Contract Act?

AA confidentiality clause requiring an employee to keep trade secrets confidential after employment ends. BA non-solicitation clause preventing an employee from poaching the employer's customers for 12 months after leaving. CA non-compete clause preventing an employee from working in the same industry for 24 months after leaving. DA garden leave clause requiring an employee to remain on payroll but not work during a notice period.

Question 5 of 10

A contract for the sale of a specific painting is signed. Unknown to both parties, the painting was destroyed in a fire the previous day. What is the legal effect?

AThe contract is enforceable; the seller must source another painting. BThe contract is voidable at the seller's option. CThe contract is void due to mutual mistake of essential fact under Section 20. DThe contract is valid and the buyer must pay the price; the loss falls on the buyer.

Question 6 of 10

An aggrieved party in a breach of contract case has a duty to:

AWait until the breach causes maximum damage before claiming. BMitigate the loss by taking reasonable steps to minimise it. CForgive the breach if the breaching party offers an apology. DContinue performing their own obligations regardless of the breach.

Question 7 of 10

After the 2018 amendment to the Specific Relief Act, the default remedy for breach of contract in India is:

ADamages, with specific performance available only where damages are inadequate. BSpecific performance, with damages available only in limited categories. CSpecific performance as a default, available subject to specified exceptions. DAlways damages; specific performance was abolished by the amendment.

Question 8 of 10

Which of the following is generally NOT a ground for the doctrine of frustration under Section 56 of the Contract Act?

ADestruction of the subject matter of the contract. BChange of law that makes performance illegal. CPerformance has become substantially more expensive than originally anticipated. DSupervening physical or legal impossibility of performance.

Question 9 of 10

An arbitration clause in a commercial contract is enforceable in India despite Section 28 because:

AThe Arbitration Act overrides the Contract Act entirely. BSection 28 itself expressly carves out arbitration agreements as an exception. CCommercial parties can contractually waive all statutory protections. DArbitration is not considered legal proceedings.

Question 10 of 10

Party A and Party B sign a contract where Party A agrees to pay Party B Rs. 5,00,000 as 'liquidated damages' on any breach, even minor delays. Party A breaches by delivering goods one day late, causing Party B actual loss of Rs. 5,000. What can Party B recover?

ARs. 5,00,000 as expressly agreed in the contract. BRs. 5,000, being the actual loss, with the liquidated damages clause possibly reduced by the court as penal under Section 74. CNothing, because Party B suffered minimal actual loss. DRs. 10,000 — double the actual loss as deterrence.

Quiz 2 — Final Assessment