The CLAT exam requires strong analytical skills, critical thinking, and careful reading, along with a clear understanding of the Contract Law. This article provides a set of MCQs on Contract Law to help you practice and strengthen your knowledge with the help of detailed solutions, which will support your CLAT 2026 exam preparation.
Whether you're revising the basics or testing your knowledge, these MCQs will serve as a valuable practice resource.
The CLAT 2026 exam is expected to follow a similar trend to the CLAT 2025, with a total of 120 questions for one mark, and 0.25 marks are deducted for each incorrect answer.
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CLAT MCQs on Contract Law
Directions for all questions
The question consists of legal principle(s) (hereinafter referred to as ‘principle‘) and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. Principles have to be applied to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. In other words, in answering the following questions, you must not rely on any principle except the principles that are given herein below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your ability in legal aptitude, study of law, research aptitude and problem solving ability even if the ’most reasonable conclusion‘ arrived at may be absurd or unacceptable for any other reason.
1. Principle : Acceptance of proposal must be the exact mirror image of the proposal.
Facts : ‘A’ made a proposal to ‘B’ to sell a chair for Rs. 500. ‘B’ is desirous of buying the said chair for Rs. 400.
Facts : ‘A’ made a proposal to ‘B’ to sell a chair for Rs. 500. ‘B’ is desirous of buying the said chair for Rs. 400.
A B has accepted the proposal of A.
B B has not accepted the proposal of A.
C It is not clear if B has accepted the proposal of A.
D It is not clear whether A made a proposal to B.\r
2. Principle: An agreement with a boy below the age of eighteen years is not enforceable by law.
Facts: A man entered into an agreement with a girl of seventeen years of age.
Facts: A man entered into an agreement with a girl of seventeen years of age.
A The agreement is enforceable by law.
B The agreement is not enforceable by law.
C The agreement is enforceable by the girl.
D No inference can be drawn.
3. Principle: Sale of liquor is illegal. All agreements relating to prohibited items do not exist in the eyes of law.
Facts: ‘A’ entered into an agreement with ‘B’ for the sale of liquor. ‘A’ failed to supply the agreed quantity of liquor to B.
Facts: ‘A’ entered into an agreement with ‘B’ for the sale of liquor. ‘A’ failed to supply the agreed quantity of liquor to B.
A B can bring a legal action against A.
B B cannot bring any legal action against A.
C A can bring a legal action against B.\r
D A and B can initiate appropriate legal proceeding against each other.
4. Principle: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Facts: ‘A’ sent a letter making a proposal to ‘B’ to purchase the house of B.
Facts: ‘A’ sent a letter making a proposal to ‘B’ to purchase the house of B.
A The communication of proposal is complete when A sent the letter.
B The communication of proposal is complete when B's wife received it.
C The communication of proposal is complete when B's wife handed over the letter to B.
D The communication of proposal is complete when B reads the letter.
5. Principle: An agreement may be entered into orally, in writing, or by conduct.
Facts: ‘A’ went to the shop of ‘B’ and picked a tooth brush and gave a cheque of Rupees twenty to B and left the shop.
Facts: ‘A’ went to the shop of ‘B’ and picked a tooth brush and gave a cheque of Rupees twenty to B and left the shop.
A A entered into an agreement with B.
B A did not enter into an agreement with B.
C Payment of tooth brush cannot be made through a cheque.
D A should have carried a currency note of Rupees twenty to make the payment.
6. Principle: Property consists of right to posses, right to use, right to alienate and right to exclude others. Sale is complete when property gets transferred from the seller to the buyer.
Facts: ‘A’ sold his car to ‘B’ B requested A to keep the car in his care on behalf B for one month. A agreed.
Facts: ‘A’ sold his car to ‘B’ B requested A to keep the car in his care on behalf B for one month. A agreed.
A Sale of car is complete.
B Sale of car is not complete.
C Sale will be completed when B keeps the car in his own care.
D Sale will be automatically completed after the expiry of one month.
7. Principle: A person, who is usually mad, but occasionally not mad, may make a contract when he is not mad.
Facts: ‘A’ generally remains in the state of madness and rarely becomes capable of understanding anything.
Facts: ‘A’ generally remains in the state of madness and rarely becomes capable of understanding anything.
A A can make a contract.
B A can never make a contract.
C A can make a contract at any time whenever he pleases.
D A can make a contract only for his own benefit.
8. Principle: An agreement without free consent can be enforced only at the option of the party whose consent was not free.
Facts: A obtains the consent of B to enter into an agreement by putting a gun on the head of B‘s girl friend.
Facts: A obtains the consent of B to enter into an agreement by putting a gun on the head of B‘s girl friend.
A B can enforce the agreement.
B B cannot enforce the agreement.
C A can enforce the agreement.
D Neither A nor B can enforce the agreement.
9. Principle : Where one of the parties to a contract was in position to dominate the decision of the other party, the contract is enforceable only at the option of the party who was in a position to dominate decision of the other party.
Facts : A doctor asked his patient to make a payment of Rs. 10,00,000/- (Ten Lac Only) for treatment of his fever. The patient paid an amount of Rs. 5,00,000/- (Five Lac Only) and promised to pay the remaining amount after the treatment. After treatment the patient recovered from fever. The doctor demanded the remaining amount from the patient. The patient refused to pay.
Facts : A doctor asked his patient to make a payment of Rs. 10,00,000/- (Ten Lac Only) for treatment of his fever. The patient paid an amount of Rs. 5,00,000/- (Five Lac Only) and promised to pay the remaining amount after the treatment. After treatment the patient recovered from fever. The doctor demanded the remaining amount from the patient. The patient refused to pay.
A The contract is enforceable against the doctor.
B The contract is enforceable against the patient.
C The contract is not enforceable.
D The contract is not enforceable.
10. Principle : When, at the desire one person, any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the promise.
Facts : X, the uncle of Y, made a promise to pay him an amount of Rs. 1,00,000/- as reward if Y quits smoking and drinking within one year. Y quit smoking and drinking within six months.
Facts : X, the uncle of Y, made a promise to pay him an amount of Rs. 1,00,000/- as reward if Y quits smoking and drinking within one year. Y quit smoking and drinking within six months.
A Consideration has moved from the side of X.
B Consideration has moved from the side of Y.
C No consideration has moved from the side of Y.
D Quitting smoking and drinking cannot be a consideration.
11. Principle : Law never enforces an impossible promise.
Facts : 'A‘ made a promise to 'B‘ to discover treasure by magic.
Facts : 'A‘ made a promise to 'B‘ to discover treasure by magic.
A Law will enforce the promise.
B Law will not enforce the promise.
C Law will enforce the promise only at the option of A.
D Law will enforce the promise only at the option of B.
12. Principle : When a person who has made a promise to another person to do something does not fulfill his promise, another person becomes entitled to receive, from the person who did not fulfill his promise, compensation in the form of money.
Facts : X made a promise to Y to repair his car engine. Y made the payment for repair. After the repair, Y went for a drive in the same car. While driving the car, Y met with an accident due to bursting of the tyre.
Facts : X made a promise to Y to repair his car engine. Y made the payment for repair. After the repair, Y went for a drive in the same car. While driving the car, Y met with an accident due to bursting of the tyre.
A X will be entitled to receive compensation from Y in the form of money
B Y will be entitled to receive compensation from X in the form of money
C X will not be entitled to receive compensation
D Y will not be entitled to receive compensation from X
13. Principle : Whoever takes away any moveable thing from the land of any person without that person‘s consent is said to commit theft.
Facts : During his visit to the home of C, A asks B, the son of C, to accompany A to a forest. Neither A nor B inform C in this regard. B accompanies A to the forest.
Facts : During his visit to the home of C, A asks B, the son of C, to accompany A to a forest. Neither A nor B inform C in this regard. B accompanies A to the forest.
A A has committed theft.
B A has not committed theft.
C A has committed theft as soon as he entered the home of C.
D A has not committed theft till B did not accompany him.
14. Principle : Mere silence as to facts likely to affect the decision of a person to enter into a contract is not fraud.
Facts : A sells to B (A‘s daughter who is a minor) a horse which A knows to be unsound. A says nothing to B about the unsoundness of the horse.
Facts : A sells to B (A‘s daughter who is a minor) a horse which A knows to be unsound. A says nothing to B about the unsoundness of the horse.
A A has committed fraud
B A has committed no fraud
C There cannot be a contract between a father and daughter
D The daughter did not ask therefore the father did not tell, hence no fraud
15. Principle : When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the other party shall not put an end to the contract.
Facts : A engaged B on April 12 to enter his service on June 1, but on May 11, A wrote to B that his services would not be needed. On May 22, B joined C for employment.
Facts : A engaged B on April 12 to enter his service on June 1, but on May 11, A wrote to B that his services would not be needed. On May 22, B joined C for employment.
A B cannot put the contract to an end.
B B can put the contract to an end.
C C can put his contract with B to an end.
D A must pay damages to B.
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