Multiple Choice Questions:
1. An agreement with or by a minor is —
(a) void. (b) voidable at the option of the minor.
(c) voidable at the option of the other party. (d) valid.
Ans: (a) void.
2. On attaining the age of majority, a minor’s agreement —
(a) can be ratified by him. (b) cannot be ratified by him.
(c) becomes void. (d) becomes valid.
Ans: (b) cannot be ratified by him.
3. A minor, by misrepresenting his age, borrows some money —
(a) he can be sued for fraud. (b) he cannot be sued for fraud.
(c) he is liable to return the money. (d) None of the above.
Ans: (b) he cannot be sued for fraud.
4. A minor enters into a contract for the purchase of certain necessaries. In such a case —
(a) he is not personally liable to pay. (b) he is liable to pay.
(c) his estate is liable to pay. (d) his guardian is liable to pay.
Ans: (c) his estate is liable to pay.
5. A person is usually of unsound mind, but occasionally of sound mind —
(a) he may enter into a contract when he is of sound mind.
(b) he may not make a contract even when he is of sound mind.
(c) he cannot enter into a contract at all.
(d) None of the above.
Ans: (a) he may enter into a contract when he is of sound mind.
6. A contract by an idiot is —
(a) voidable. (b) enforceable. (c) invalid. (d) void ab initio.
Ans: (d) void ab initio.
7. Contracts made before war with an alien enemy which are against public policy are —
(a) suspended and are revived after the war is over. (b) dissolved.
(c) not affected at all. (d) void ab initio.
Ans: (b) dissolved.
8. The contractual capacity of a company is regulated by —
(a) its Memorandum of Association and the provisions of the Companies Act, 2013.
(b) the terms of contract entered into with a third party.
(c) its Articles of Association.
(d) its Prospectus.
Ans: (a) its Memorandum of Association and the provisions of the Companies Act, 2013.
9. The Case of Mohiri Bibi v. Dharmodas Ghose, (1903) 301 Cal. 539 deals with —
(a) communication of offer. (b) communication of acceptance.
(c) a minor’s agreement. (d) fraud.
Ans: (c) a minor’s agreement.
10. Flaw in capacity to contract may arise from —
(a) want of consideration. (b) unsoundness of mind.
(c) illegality of object. (d) uncertainty of object.
Ans: (b) unsoundness of mind.
True or False Questions:
1. A minor is a person who has not completed 21 years of age. [False]
2. An agreement with or by a minor is voidable. [False]
3. There is nothing which debars a minor from becoming a payee or a promisee in a contract. [True]
4. A minor is personally liable for necessaries supplied to him. [False]
5. An agreement can be ratified by a minor on attaining the age of majority. [False]
6. If a minor has received any benefit under a void agreement, he can be asked to compensate or pay for it. [False]
7. A person who is usually of sound mind, but occasionally of unsound mind, cannot enter into a contract when he is of unsound mind. [True]
8. An agreement of an idiot, like that of a minor, is void. [True]
9. An alien friend can acquire property in an Indian ship. [True]
10. A convict when undergoing imprisonment cannot enter into a contract. [True]