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5-question demo · BPSC Bihar Judiciary – Civil Judge PCS Mains Exam – Commercial Law

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Question 1 of 5
How many persons are required to form a contract?
A A) one
B B) two
C C) two or more
D D) four
Why: A contract requires two parties: the promisor and the promisee. Under Section 2(b) of the Indian Contract Act, 1872, a contract is an agreement enforceable by law, which necessitates at least two competent persons exchanging offer and acceptance with consideration. A single person cannot form a contract with themselves. Thus, option B is correct.[2]
Question 2 of 5
Where is the definition of the term 'Contract' enshrined under the Indian Contract Act, 1872?
A A) Section 2(a)
B B) Section 2(b)
C C) Section 2(d)
D D) Section 2(h)
Why: Section 2(h) of the Indian Contract Act, 1872 defines 'contract' as 'an agreement enforceable by law'. Section 2(e) defines 'agreement' as every promise and every set of promises forming consideration for each other. This forms the basis of contract formation involving offer, acceptance, and consideration. Option D is correct.[2]
Question 3 of 5
How can the acceptance of the proposal be made?
A A) by notice of acceptance
B B) by performance of condition of proposal
C C) by acceptance of consideration for a reciprocal promise
D D) by performing conditions or receiving consideration
Why: Under Section 8 of the Indian Contract Act, 1872, acceptance can be by performing conditions of the proposal or by receiving consideration for a reciprocal promise. This covers both express and implied acceptance in contract formation. Options A, B, C are partial; D is comprehensive and correct.[2]
Question 4 of 5
________________ is absolute and capable of converting an agreement into a contract
A A) Invitation to offer
B B) Offer
C C) Acceptance
D D) all the above
Why: Acceptance under Section 2(b) read with Section 7 of the Indian Contract Act converts an agreement into a contract by creating mutual assent. Offer alone or invitation to offer does not suffice without acceptance and consideration. Thus, acceptance is absolute for enforceability. Option C is correct.[2]
Question 5 of 5
A valid proposal can be made in which of the following manner?
A A) words (written only)
B B) words (written or spoken)
C C) words
D D) a letter
Why: Section 3 of the Indian Contract Act, 1872 provides that communication of proposal (offer) can be by words (spoken or written) or conduct. This enables formation of contract through various modes. Option B accurately captures this.[2]