Practice Contract Law Questions for CLAT PG 2026 (Part I)
1. Which of the following is an essential element of a valid contract under the Indian Contract Act, 1872?
A. A written document
B. Consent of the parties obtained by coercion
C. Lawful consideration
D. Verbal acceptance only
B. Consent of the parties obtained by coercion
C. Lawful consideration
D. Verbal acceptance only
Correct Answer: C. Lawful consideration
Explanation: As per Section 10 of the Indian Contract Act, a contract must have lawful consideration to be valid. Consent must also be free and not obtained by coercion.
Explanation: As per Section 10 of the Indian Contract Act, a contract must have lawful consideration to be valid. Consent must also be free and not obtained by coercion.
2. In a contract of bailment, the person who delivers the goods is called the:
A. Bailee
B. Lessor
C. Bailor
D. Agent
B. Lessor
C. Bailor
D. Agent
Correct Answer: C. Bailor
Explanation: Under Section 148, the person delivering goods for a purpose under a contract is the bailor; the receiver is the bailee.
Explanation: Under Section 148, the person delivering goods for a purpose under a contract is the bailor; the receiver is the bailee.
3. Which of the following is not a valid mode of terminating an agency?
A. By the principal becoming of unsound mind
B. By mutual agreement
C. By expiry of time
D. By novation
B. By mutual agreement
C. By expiry of time
D. By novation
Correct Answer: D. By novation
Explanation: Novation applies to contracts, not specifically agency. Agency can end due to revocation, mutual agreement, completion, or incapacity.
Explanation: Novation applies to contracts, not specifically agency. Agency can end due to revocation, mutual agreement, completion, or incapacity.
4. Estoppel prevents a person from:
A. Enforcing a legal right
B. Denying a statement made to another who relied on it
C. Entering into a contract
D. Filing a civil suit
B. Denying a statement made to another who relied on it
C. Entering into a contract
D. Filing a civil suit
Correct Answer: B. Denying a statement made to another who relied on it
Explanation: Estoppel bars a party from denying the truth of a statement previously made, if the other party acted upon it.
Explanation: Estoppel bars a party from denying the truth of a statement previously made, if the other party acted upon it.
5. A lease for more than one year must be:
A. Notarized
B. Registered
C. In oral form
D. Executed on plain paper
B. Registered
C. In oral form
D. Executed on plain paper
Correct Answer: B. Registered
Explanation: As per the Transfer of Property Act, 1882, leases exceeding 12 months must be registered.
Explanation: As per the Transfer of Property Act, 1882, leases exceeding 12 months must be registered.
6. A gratuitous bailment ends:
A. When the bailee wants
B. Only after delivery
C. When the purpose is completed
D. When the goods are destroyed
B. Only after delivery
C. When the purpose is completed
D. When the goods are destroyed
Correct Answer: C. When the purpose is completed
Explanation: Gratuitous bailment (without consideration) ends when the purpose is served or time expires.
Explanation: Gratuitous bailment (without consideration) ends when the purpose is served or time expires.
7. An offer becomes a contract when:
A. It is accepted and communicated
B. It is withdrawn
C. It is made in writing
D. It is posted
B. It is withdrawn
C. It is made in writing
D. It is posted
Correct Answer: A. It is accepted and communicated
Explanation: A contract is formed when a valid offer is accepted and communicated to the offeror.
Explanation: A contract is formed when a valid offer is accepted and communicated to the offeror.
8. An agent must not:
A. Be paid
B. Delegate his authority
C. Be competent
D. Be in writing
B. Delegate his authority
C. Be competent
D. Be in writing
Correct Answer: B. Delegate his authority
Explanation: An agent cannot delegate authority unless expressly allowed or under necessity.
Explanation: An agent cannot delegate authority unless expressly allowed or under necessity.
9. A minor’s agreement is:
A. Voidable
B. Valid
C. Void ab initio
D. Enforceable with guardian’s consent
B. Valid
C. Void ab initio
D. Enforceable with guardian’s consent
Correct Answer: C. Void ab initio
Explanation: As per the ruling in Mohori Bibee v. Dharmodas Ghose, a minor’s agreement is void from the beginning.
Explanation: As per the ruling in Mohori Bibee v. Dharmodas Ghose, a minor’s agreement is void from the beginning.
10. Which one of the following is not essential to constitute a bailment?
A. Delivery of possession
B. Ownership transfer
C. Contract
D. Purpose
B. Ownership transfer
C. Contract
D. Purpose
Correct Answer: B. Ownership transfer
Explanation: Bailment involves transfer of possession, not ownership.
Explanation: Bailment involves transfer of possession, not ownership.
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Ruchika Mohapatra
Contributing author
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