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✅Penalties & Debarment + Indian Contract Act, 1872 (100 MCQs)

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1. A contract is defined under Section:
   A) 2(a)
   B) 2(h)
   C) 10
   D) 73
   Answer: B
2. An agreement enforceable by law is called:
   A) Promise
   B) Contract
   C) Offer
   D) Proposal
   Answer: B
3. Proposal is defined under:
   A) Sec 2(a)
   B) Sec 2(b)
   C) Sec 10
   D) Sec 73
   Answer: A
4. Acceptance is defined under:
   A) Sec 2(a)
   B) Sec 2(b)
   C) Sec 2(c)
   D) Sec 10
   Answer: B
5. Consideration is defined under:
   A) Sec 2(d)
   B) Sec 2(e)
   C) Sec 10
   D) Sec 73
   Answer: A
6. Void agreement is defined under:
   A) Sec 2(g)
   B) Sec 2(h)
   C) Sec 10
   D) Sec 73
   Answer: A
7. Voidable contract is defined under:
   A) Sec 2(i)
   B) Sec 2(g)
   C) Sec 10
   D) Sec 73
   Answer: A
8. Essentials of valid contract include:
   A) Agreement + enforceability
   B) Offer only
   C) Acceptance only
   D) Writing only
   Answer: A
9. Free consent includes:
   A) Coercion
   B) Undue influence
   C) Absence of coercion
   D) Fraud
   Answer: C
10. Competency to contract is defined under:
    A) Sec 10
    B) Sec 11
    C) Sec 12
    D) Sec 73
    Answer: B
11. Minor’s agreement is:
    A) Valid
    B) Void
    C) Voidable
    D) Illegal
    Answer: B
12. Consideration must be:
    A) Past only
    B) Present only
    C) Lawful
    D) Monetary only
    Answer: C
13. Agreement without consideration is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
14. Consent is defined under:
    A) Sec 13
    B) Sec 14
    C) Sec 10
    D) Sec 73
    Answer: A
15. Free consent is defined under:
    A) Sec 13
    B) Sec 14
    C) Sec 11
    D) Sec 10
    Answer: B
16. Coercion is defined under:
    A) Sec 15
    B) Sec 16
    C) Sec 17
    D) Sec 18
    Answer: A
17. Undue influence is under:
    A) Sec 15
    B) Sec 16
    C) Sec 17
    D) Sec 18
    Answer: B
18. Fraud is defined under:
    A) Sec 17
    B) Sec 18
    C) Sec 19
    D) Sec 20
    Answer: A
19. Misrepresentation is under:
    A) Sec 18
    B) Sec 17
    C) Sec 19
    D) Sec 20
    Answer: A
20. Mistake is covered under:
    A) Sec 20–22
    B) Sec 10
    C) Sec 15
    D) Sec 73
    Answer: A
21. Lawful object is required under:
    A) Sec 23
    B) Sec 24
    C) Sec 10
    D) Sec 73
    Answer: A
22. Agreement opposed to public policy is:
    A) Valid
    B) Void
    C) Voidable
    D) Illegal
    Answer: B
23. Wagering agreements are:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
24. Contingent contract is defined under:
    A) Sec 31
    B) Sec 32
    C) Sec 10
    D) Sec 73
    Answer: A
25. Performance of contract is under:
    A) Sec 37
    B) Sec 10
    C) Sec 73
    D) Sec 2
    Answer: A

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26. Breach of contract leads to:
    A) Performance
    B) Remedy
    C) Discharge
    D) All
    Answer: D
27. Compensation for breach is under:
    A) Sec 73
    B) Sec 74
    C) Sec 75
    D) Sec 10
    Answer: A
28. Liquidated damages are covered under:
    A) Sec 73
    B) Sec 74
    C) Sec 75
    D) Sec 10
    Answer: B
29. Penalty clause is under:
    A) Sec 74
    B) Sec 73
    C) Sec 75
    D) Sec 10
    Answer: A
30. Quantum meruit means:
    A) Equal payment
    B) Reasonable payment
    C) Fixed payment
    D) Bonus
    Answer: B
31. Anticipatory breach occurs:
    A) After due date
    B) Before due date
    C) During performance
    D) After completion
    Answer: B
32. Actual breach occurs:
    A) Before performance
    B) At due date
    C) After termination
    D) Before agreement
    Answer: B
33. Specific performance is:
    A) Compensation
    B) Court order to perform
    C) Penalty
    D) Arbitration
    Answer: B
34. Rescission means:
    A) Continuation
    B) Cancellation
    C) Performance
    D) Payment
    Answer: B
35. Injunction is:
    A) Order to perform
    B) Order to stop
    C) Compensation
    D) Penalty
    Answer: B
36. Damages must be:
    A) Remote
    B) Direct
    C) Speculative
    D) Arbitrary
    Answer: B
37. Remote damages are:
    A) Recoverable
    B) Not recoverable
    C) Mandatory
    D) Fixed
    Answer: B
38. Mitigation of damages means:
    A) Increase loss
    B) Reduce loss
    C) Ignore loss
    D) Transfer loss
    Answer: B
39. Contract discharged by impossibility is under:
    A) Sec 56
    B) Sec 73
    C) Sec 74
    D) Sec 10
    Answer: A
40. Frustration of contract leads to:
    A) Continuation
    B) Discharge
    C) Penalty
    D) Payment
    Answer: B
41. Novation means:
    A) Cancellation
    B) Substitution
    C) Performance
    D) Delay
    Answer: B
42. Alteration of contract requires:
    A) One party
    B) Mutual consent
    C) Court order
    D) Arbitration
    Answer: B
43. Waiver means:
    A) Enforcement
    B) Abandonment of rights
    C) Penalty
    D) Payment
    Answer: B
44. Remission is:
    A) Increase obligation
    B) Reduction of obligation
    C) Cancellation
    D) Payment
    Answer: B
45. Breach gives right to:
    A) Compensation
    B) Performance
    C) Both
    D) None
    Answer: C
46. Damages aim to:
    A) Punish
    B) Compensate
    C) Reward
    D) Delay
    Answer: B
47. Exemplary damages are:
    A) Punitive
    B) Compensatory
    C) Nominal
    D) Liquidated
    Answer: A
48. Nominal damages are:
    A) High
    B) Small
    C) Punitive
    D) Fixed
    Answer: B
49. Consequential damages are:
    A) Direct
    B) Indirect
    C) Nominal
    D) Fixed
    Answer: B
50. Breach of warranty gives:
    A) Rejection
    B) Damages
    C) Specific performance
    D) Cancellation
    Answer: B

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51. Debarment means:
    A) Promotion
    B) Blacklisting
    C) Payment
    D) Audit
    Answer: B
52. Debarment is imposed for:
    A) Good performance
    B) Misconduct
    C) Audit
    D) Payment
    Answer: B
53. Blacklisting affects:
    A) One contract
    B) Future participation
    C) Payment
    D) Audit
    Answer: B
54. Grounds for debarment include:
    A) Transparency
    B) Fraud
    C) Efficiency
    D) Audit
    Answer: B
55. Debarment must follow:
    A) Secrecy
    B) Due process
    C) Delay
    D) Bias
    Answer: B
56. Show cause notice is issued before:
    A) Payment
    B) Debarment
    C) Audit
    D) Delivery
    Answer: B
57. Natural justice requires:
    A) No hearing
    B) Opportunity to be heard
    C) Delay
    D) Bias
    Answer: B
58. Debarment period is:
    A) Permanent always
    B) Time-bound
    C) One day
    D) Optional
    Answer: B
59. Fraud includes:
    A) Transparency
    B) Misrepresentation
    C) Audit
    D) Compliance
    Answer: B
60. Corrupt practice includes:
    A) Bribery
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
61. Collusion means:
    A) Competition
    B) Secret agreement
    C) Audit
    D) Compliance
    Answer: B
62. Coercive practice includes:
    A) Threat
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
63. Unfair practice leads to:
    A) Reward
    B) Penalty
    C) Promotion
    D) Audit
    Answer: B
64. Debarment list is maintained by:
    A) Supplier
    B) Authority
    C) Court
    D) Audit
    Answer: B
65. Cross-debarment means:
    A) Same authority
    B) Multiple agencies
    C) Single contract
    D) Audit
    Answer: B
66. Debarment decision must be:
    A) Arbitrary
    B) Reasoned
    C) Biased
    D) Secret
    Answer: B
67. Appeal against debarment lies with:
    A) Supplier
    B) Higher authority
    C) Audit
    D) Court only
    Answer: B
68. Suspension differs from debarment as:
    A) Permanent
    B) Temporary
    C) Same
    D) Illegal
    Answer: B
69. Penalty clause ensures:
    A) Delay
    B) Compliance
    C) Bias
    D) Secrecy
    Answer: B
70. Liquidated damages are:
    A) Reward
    B) Pre-estimated loss
    C) Penalty
    D) Bonus
    Answer: B
71. Performance guarantee ensures:
    A) Payment
    B) Contract performance
    C) Audit
    D) Delivery
    Answer: B
72. Forfeiture of security is:
    A) Reward
    B) Penalty
    C) Payment
    D) Audit
    Answer: B
73. Debarment affects:
    A) Past contracts
    B) Future contracts
    C) Payment
    D) Audit
    Answer: B
74. Procurement penalties ensure:
    A) Compliance
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
75. Debarment promotes:
    A) Corruption
    B) Discipline
    C) Delay
    D) Bias
    Answer: B

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76. Contract of indemnity is under:
    A) Sec 124
    B) Sec 125
    C) Sec 126
    D) Sec 73
    Answer: A
77. Contract of guarantee is under:
    A) Sec 126
    B) Sec 124
    C) Sec 125
    D) Sec 73
    Answer: A
78. Bailment is under:
    A) Sec 148
    B) Sec 149
    C) Sec 150
    D) Sec 151
    Answer: A
79. Finder of goods has rights of:
    A) Bailee
    B) Bailor
    C) Owner
    D) Agent
    Answer: A
80. Agency is under:
    A) Sec 182
    B) Sec 183
    C) Sec 184
    D) Sec 185
    Answer: A
81. Agent binds:
    A) Himself
    B) Principal
    C) Third party
    D) Court
    Answer: B
82. Ratification relates to:
    A) Past act approval
    B) Future act
    C) Present act
    D) Court order
    Answer: A
83. Sub-agent is appointed by:
    A) Principal
    B) Agent
    C) Court
    D) Third party
    Answer: B
84. Consideration may move from:
    A) Promisee only
    B) Any person
    C) Promisor only
    D) Court
    Answer: B
85. Privity of contract applies to:
    A) Third party
    B) Parties only
    C) Court
    D) Agent
    Answer: B
86. Agreement in restraint of trade is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
87. Agreement in restraint of marriage is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
88. Agreement in restraint of legal proceedings is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
89. Time is essence of contract when:
    A) Mentioned
    B) Not mentioned
    C) Ignored
    D) Arbitrary
    Answer: A
90. Reciprocal promises are under:
    A) Sec 51
    B) Sec 52
    C) Sec 53
    D) Sec 54
    Answer: A
91. Joint liability is under:
    A) Sec 42
    B) Sec 43
    C) Sec 44
    D) Sec 45
    Answer: B
92. Discharge by agreement includes:
    A) Novation
    B) Alteration
    C) Rescission
    D) All
    Answer: D
93. Quasi contracts are:
    A) Real contracts
    B) Implied by law
    C) Void
    D) Illegal
    Answer: B
94. Supply of necessaries to minor is:
    A) Void
    B) Recoverable
    C) Illegal
    D) Enforceable
    Answer: B
95. Finder of lost goods can:
    A) Sue owner
    B) Retain goods
    C) Sell goods
    D) All
    Answer: D
96. Agency terminates by:
    A) Death
    B) Insanity
    C) Completion
    D) All
    Answer: D
97. Consideration must not be:
    A) Lawful
    B) Illegal
    C) Valuable
    D) Real
    Answer: B
98. Agreement without free consent is:
    A) Valid
    B) Voidable
    C) Illegal
    D) Enforceable
    Answer: B
99. Contract becomes void when:
    A) Impossible
    B) Valid
    C) Enforceable
    D) Binding
    Answer: A
100. Indian Contract Act, 1872 governs:
     A) Criminal law
     B) Civil obligations
     C) Tax law
     D) Property law
     Answer: B