Important MCQs on Indian Contract Act

MULTIPLE CHOICE QUESTIONS

1. In bailment, the person who delivers the goods is called the:

(a) Bailee
(b) Bailor
(c) Lessee
(d) Pledgee

2. A pledge involves the transfer of:

(a) Goods
(b) Money
(c) Services
(d) Property rights

3. Indemnity is a contract to:

(a) Bail goods
(b) Pledge assets
(c) Compensate for losses
(d) Lease property

4. Which of the following is not a necessary condition for bailment?

(a) Delivery of goods
(b) Contractual agreement
(c) Compensation for services
(d) Possession by bailee

5. In a bailment, the responsibility for the safekeeping of goods lies with the:

(a) Bailor
(b) Bailee
(c) Indemnifier
(d) Lessee

6. A pledge can be created by:

(a) Oral agreement
(b) Written agreement
(c) Implication
(d) None of the above

7. An indemnity contract arises from:

(a) Legal obligation
(b) Moral duty
(c) Willful neglect
(d) Voluntary arrangement

8. In a lease agreement, the lessor is the:

(a) Owner of the property
(b) Tenant of the property
(c) Guarantor of the agreement
(d) Sublessor

9. Indemnity is a form of:

(a) Compensation
(b) Insurance
(c) Lease agreement
(d) Mortgage

10. Bailment is terminated by:

(a) Delivery of goods
(b) Mutual agreement
(c) Lapse of time
(d) All of the above