Summary: 

Last year, 14 Contract Act questions were asked in CLAT PG with moderate difficulty levels. 

Every year questions appear from this section, and Contract Act Questions are very important for various LLM entrance exams.

The Law of contracts is used to enforce rights in personam, which means rights that can be claimed only against specific persons.

Contracts are agreements enforceable by law. The essential elements of a contract are as follows:-

• Two or more parties
• Competency to contract 
• Free Consent 
• Lawful consideration and Lawful object

There are several stages of the Contract offer, acceptance, competency and consent.

With the LLM entrance exam occurring around the corner, ensure you practise Important Contract Act Questions 2023. 

Download FREE Study Material for CLAT PG 2023 by LegalEdge After College

List of Important Contract Act Questions 2023

Here are a few Important Contract Act Questions from AILET PG 2022 paper. 

Question 1 - Principle: A contract which is impossible to perform becomes void. 

Facts: Narendr agreed to deliver a specific quantity of mangoes to Mahesh. Before delivery, the mangoes rotten at the Narendr's. 

Is Narendr discharged from the performance of the contract? 

Decision 

A) Narendr is discharged from the performance as the subject matter of the contract is destroyed. 

B) Narendr is discharged from performance as the subject matter had been specifically identified 

C) Narendr is not discharged from performance as he can procure from other sources. 

D) None of the above. 

Answer - C. Narendr is not discharged from performance as he can procure from other sources. 

Check: Preparation Strategy of Arbitration Law for CLAT PG Exam

Question 2 - A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interests. 

Situation: MR. Xiu, who is actually of a sound state of mind, but occasionally of unsound state of mind, enters into a contract with Mr Yan when he was of an unsound state of mind. Mr Yan, having come to know about this fact afterwards, wants to file a suit against Mr Xiu

Decision: 

A) Mr Xiu cannot enter into a contract because he is in an unsound state of mind when he entered into a contract

B) Mr Xiu cannot enter into a contract because he is in an unsound state of mind when he entered into the contract. 

C) M. Xiu can enter into a contract, but the burden is on Mr Xiu to prove that he was in an unsound state of mind at the time of the contract. 

D) Contract with a person of unsound mind is void. 

Answer - C) M. Xiu can enter into a contract, but the burden is on Mr Xiu to prove that he was in an unsound state of mind at the time of the contract. 

Check: Preparation Strategy for Criminal Law for CLAT PG 2023

Question 3 - Principle: A contract which is impossible to perform becomes void. 

Situation: Surender agreed to deliver the specific quality of rice to Sonakshi, identified by both of them. Before delivery, the rice was burnt by a short circuit. Is Surender discharged from the performance of the contract? 

A) Surender is discharged from performance as the subject matter of the contract is destroyed. 

B) Surender is discharged from performance as the subject matter had been specifically identified. 

C) Surender is not discharged from performance as he can procure rice from other sources. 

D) None of the above. 

Answer - B) Surender is discharged from performance as the subject matter had been specifically identified. 

Check: Important Concepts of Family Law for CLAT PG Exam

Question 4 - The acceptance of an offer will be valid only if it is made in the way it was expected to be made. 

Situation: There was a telephonic discussion between "J" and "K" to negotiate the sale of the shop from the former to the latter. Upon reaching an agreement as to the price of the shop of "J" at Rs. 20 lakhs, "J" and "K" are to send a letter to him within two weeks of confirming that she wishes to buy the shop for the price finalized. Two days thereafter, "K" gave her acceptance to "J" over the telephone but sent the letter of confirmation after the lapse of one month. Is "J" bound by the acceptance of "K"? 

Decision: 

A) Yes, because the acceptance was conveyed within two weeks over the telephone, and it was followed by a letter of acceptance as stipulated. 

B) No, because although the acceptance over the telephone was conveyed in time but not in the mode specified and the letter of acceptance was also not sent within 2 weeks. 

C) No, because the sale of immovable property cannot be finalized online; neither any acceptance can be given over the phone. Hence, the entire negotiation is invalid. 

D) Yes, because no law can compel the purchaser to give his acceptance through the mode prescribed by the vendor.

Answer - B) No, because although the acceptance over the telephone was conveyed in time but not in the mode specified and the letter of acceptance was also not sent within 2 weeks. 

Check: Important Concepts of Constitutional Law for CLAT PG

Conclusion

The explanation for all the questions is given in the video attached to the article. 

We have our experts from LegalEdge After College who gather these questions from the previous year's AILET PG paper explaining the answer to them. 

Solve sample questions, previous year papers and mocks to find more important Contract Act questions to crack the LLM entrance exams. 

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