Important MCQs of Contract Act 1872 Fully Solved

The relationship between the principal and the agent is called:

A. master and servant relationship
B. boss and secretary relationship
C. agency relationship
D. none of above

An agency cannot be established in The absence of one of the following.

A. agent must be an educated man
B. principal must be an educated man
C. agreement between principal and agent
D. none of above

If the principal is not competent to contract he:

A. can even that make agency
B. cannot make an agency
C. can appoint someone else to make an agency
D. none of above

Afzal appointed Imran as his agent. Now the acts of Imran are:

A. binding for Afzal
B. binding for both
C. not binding for Afzal
D. none of above

Amir telling Talib within Nasir’s hearing that Amir is Talib’s agent: Here Agency:

A. is created between Amir and Talib
B. is not created between Amir & Talib
C. cannot be created
D. none of above

Afzal appointed Bashir as his agent and told the people about the acts he can do on his behalf. If Bashir also does something which has not been authorized than:

A. it will be binding for Afzal
B. it will not bound Afzal
C. Afzal is bound for all the acts of Bashir
D. none of above

Munir falsely represented himself to ‘be an authorized agent of Zaheer. Here Munir will be called:

A. ficticious agent
B. false agent
C. pretending agent
D. none of above

In the case of unforeseen emergencies, an agent can go beyond his authority

A. True
B. False

Ali consigns provisions to Karachi to Baber with directions to send them immediately to Lahore. After that Ali met with an accident. Now if Baber feels that provisions will not bear the journey of Lahore.

A. he may sell the things at Karachi
B. he is bound to work as directed
C. he is not entitled to take his own decision
D. none of above

Majid sends a horse through Railway company to Sahiwal. The horse was not received by anybody at Sahiwal station. The Railway Company had to tee the horse. Now:

A. Majid is liable to compensate. Railway company
B. Majid is not liable as he did not direct Railway company
C. Majid is not concerned with it
D. None of the above

Najma the wife of Zahid is entitled to buy the articles of household necessity in the credit of her husbands This will be called.

A. implied authority of the wife
B. influence of the wife
C. express authority of the wife
D. none of above

Naila being the wife of Munir has no implied authority to bind her husband if:

A. Munir does not like her
B. They are not living together
C. both A & B
D. none of above

A wife has an implied authority to bind her husband if they are:

A. living in the domestic establishment of their own
B. residents of the same country
C. resident of the different country
D. none of above

Ali appointed Kalim his agent. Kalim exceeds authority that actually vested in him by Ali. Now Ali:

A. may accept or revokes the agent’s act
B. must accept the agent’s act’
C. should revoke the agent’s act
D. none of above

Ramzan acts as Mirza’s, agent. Thought Ramzan has no prior authority, yet he purports to act as Mirza’a agent. Now Mirza:

A. may accept or revokes Ramzan act
B. should accept Rarnzan’ work
C. should not accept Ramzan’s work
D. none of above

In spite of exceeding the limits authorized, if the principal accepts the act of the agent is known as:

A. acceptance
B. agreement
C. ratification
D. none of above

Ratification must be done within:

A. 24 hours
B. a reasonable time
C. one demand of the other Party
D. none of above

A person employed by and acting under the control of the original agent in the business of the agency known as:

A. main agent
B. principal
C. sub agent
D. none of above

If the principal has not expressly consented the appointment of a sub-agent. The appointment will be sub-agent will be:

A. valid
B. voidable
C. void
D. none of above

A sub-agent can be appointed if:

A. original agent feels lus presence
B. custom of trade permits the appointment
C. sub-agent. applies for work
D. none of above