Specific Relief and Contract Basics MCQs 2026

Rectification of instrument under the Specific Relief Act corrects

1. A criminal records ✓
2. B oral promises without writing always ✓
3. C errors in written contracts to reflect true intention ✓
4. D arbitration clauses only ✓

Cancellation of instrument may be ordered when

1. A the instrument is fully performed ✓
2. B the defendant is insolvent only ✓
3. C the instrument is void or voidable against the plaintiff ✓
4. D limitation has not expired ✓

Section 21 of the Contract Act provides mistake of law in force in Pakistan

1. A always voids contracts ✓
2. B does not avoid contracts ✓
3. C voids only oral contracts ✓
4. D makes contracts voidable ✓

Consideration need not be adequate but must be

1. A always equal to market price ✓
2. B real and something of value in the eyes of law ✓
3. C always in cash ✓
4. D approved by court in every case ✓

Privity of contract means

1. A any third party may always sue ✓
2. B only courts may enforce ✓
3. C only parties to the contract may generally sue on it ✓
4. D only government may enforce ✓

An illegal contract is

1. A voidable ✓
2. B valid if performed ✓
3. C enforceable in equity always ✓
4. D void and no action arises from it ✓

Rescission of contract returns parties to

1. A criminal prosecution automatically ✓
2. B permanent injunction only ✓
3. C arbitration without agreement ✓
4. D pre-contract position where contract is voidable and rescission is possible ✓

Liquidated damages clause provides

1. A pre-estimated compensation stipulated in the contract ✓
2. B criminal fine ✓
3. C specific performance always ✓
4. D limitation extension ✓

Penalty clause under Section 74 is

1. A always fully enforceable ✓
2. B a criminal sanction ✓
3. C void in all cases ✓
4. D not enforceable beyond reasonable compensation for breach ✓

Tender of performance under Section 38 may discharge

1. A only criminal liability ✓
2. B limitation period ✓
3. C the promisor's obligation when properly made and refused ✓
4. D marriage obligations ✓

Agency under the Contract Act creates authority for

1. A only criminal liability of agent ✓
2. B only family law disputes ✓
3. C only arbitration awards ✓
4. D an agent to affect the principal's legal relations with third parties ✓

Indemnity and guarantee differ in that guarantee involves

1. A only sale of goods ✓
2. B only personal service ✓
3. C only marriage contract ✓
4. D a promise to answer for another's debt or default to a third party ✓

The Specific Relief Act 1877 provides

1. A remedies of specific performance, injunction and declaratory relief ✓
2. B only criminal penalties ✓
3. C only divorce procedure ✓
4. D only arbitration procedure ✓

Specific performance is

1. A always available for every contract ✓
2. B a criminal sanction ✓
3. C only for oral gifts ✓
4. D an order directing a party to perform the contract as agreed ✓

Specific performance is generally granted when

1. A the contract is illegal ✓
2. B the contract is impossible to perform ✓
3. C the plaintiff has breached first ✓
4. D the subject matter is unique and damages are inadequate ✓

Section 12 of the Specific Relief Act restricts specific performance of

1. A every valid contract always ✓
2. B only government contracts ✓
3. C contracts that cannot be enforced for want of mutuality or other grounds ✓
4. D only oral contracts without exception ✓

A temporary injunction under the Specific Relief Act is governed by

1. A the Penal Code only ✓
2. B Order XXXIX CPC read with the Act ✓
3. C the Limitation Act only ✓
4. D the Family Courts Act ✓

A perpetual injunction permanently

1. A imposes criminal imprisonment ✓
2. B restrains the defendant from asserting a right or committing an act ✓
3. C dissolves marriage ✓
4. D creates a new contract ✓

Mandatory injunction compels the defendant to

1. A pay only criminal fine ✓
2. B remain silent forever without act ✓
3. C file a criminal FIR ✓
4. D perform a positive act restoring the status quo or rights ✓

A declaratory decree declares

1. A criminal guilt ✓
2. B the rights of parties without necessarily ordering further relief ✓
3. C tax liability of the state only ✓
4. D arbitration award always ✓

Injunction may be refused if

1. A the plaintiff has no personal interest or has acted inequitably ✓
2. B damages are adequate and balance of convenience favours refusal ✓
3. C the suit is valued at one rupee only always ✓
4. D the defendant is poor ✓

The Contract Act 1872 defines a contract as

1. A an agreement enforceable by law ✓
2. B any social promise ✓
3. C a moral obligation only ✓
4. D a criminal conspiracy ✓

An offer under the Contract Act is

1. A a mere invitation to treat always ✓
2. B a completed contract ✓
3. C a court judgment ✓
4. D a proposal made with intent to obtain assent and create legal relations ✓

Acceptance under the Contract Act must be

1. A absolute and unqualified and communicated to the offeror ✓
2. B conditional on new terms without communication ✓
3. C silent always ✓
4. D made only in court ✓

Consideration is defined as

1. A only love and affection without exception ✓
2. B past voluntary service without request always ✓
3. C something in return done or promised at the desire of the promisor ✓
4. D illegal gratification ✓

An agreement without consideration is

1. A always valid ✓
2. B void except in cases listed in Section 25 ✓
3. C voidable only ✓
4. D a criminal offence ✓

A void contract is

1. A not enforceable by law and creates no legal rights ✓
2. B enforceable at plaintiff's option ✓
3. C valid until repudiated ✓
4. D only voidable by minor ✓

A voidable contract is

1. A void from the start always ✓
2. B never enforceable ✓
3. C enforceable at the option of the aggrieved party ✓
4. D enforceable only by the wrongdoer ✓

A minor's agreement under Section 11 is

1. A valid and binding ✓
2. B void ab initio (person incompetent to contract) ✓
3. C voidable at minor's option only after majority ✓
4. D enforceable against minor ✓

Section 10 requires for a valid contract

1. A only written form always ✓
2. B lawful consideration, lawful object and competent parties with free consent ✓
3. C registration in every case ✓
4. D witnesses in all contracts ✓

Free consent excludes

1. A offer and acceptance ✓
2. B lawful consideration ✓
3. C written memorandum ✓
4. D coercion, undue influence, fraud, misrepresentation and mistake ✓

Coercion under Section 15 includes

1. A gentle persuasion only ✓
2. B commercial competition ✓
3. C committing or threatening to commit any act forbidden by the Pakistan Penal Code ✓
4. D lawful strike by workers ✓

Fraud under Section 17 involves

1. A false representation of fact with intent to deceive ✓
2. B honest opinion on future prices ✓
3. C mere silence in all cases ✓
4. D puffing in every advertisement ✓

A contract in restraint of marriage is

1. A valid if registered ✓
2. B void under Section 26 ✓
3. C voidable only ✓
4. D enforceable by parents ✓

A contract in restraint of trade is

1. A always valid ✓
2. B a criminal offence only ✓
3. C enforceable if written ✓
4. D void to that extent unless saved by Section 27 exception ✓

An agreement by way of wager is

1. A specifically enforceable ✓
2. B voidable at winner's option ✓
3. C void under Section 30 ✓
4. D a valid investment contract ✓

Breach of contract means

1. A only criminal breach of trust ✓
2. B failure to perform contractual obligations without lawful excuse ✓
3. C only tortious negligence ✓
4. D only frustration always ✓

Damages for breach are governed primarily by

1. A Section 73 — compensation for loss naturally arising or contemplated ✓
2. B Section 65 only ✓
3. C the Penal Code ✓
4. D the Limitation Act exclusively ✓

Anticipatory breach occurs when

1. A a party repudiates the contract before performance is due ✓
2. B performance is completed early ✓
3. C both parties agree to rescind ✓
4. D a minor attains majority ✓

Quantum meruit allows

1. A criminal punishment ✓
2. B specific performance of illegal contracts ✓
3. C reasonable remuneration for work done when contract fails ✓
4. D automatic injunction ✓

Communication of acceptance by post is complete when

1. A the offeror reads it ✓
2. B the offeror replies ✓
3. C the letter is posted (postal rule) under Section 4 read with authorities ✓
4. D the court approves it ✓

Counter-offer under Hyde v Wainwright principle

1. A accepts the original offer ✓
2. B destroys the original offer and amounts to rejection ✓
3. C extends the offer automatically ✓
4. D creates a void contract immediately ✓

Invitation to treat is

1. A always a binding contract ✓
2. B not an offer but an invitation to make offers ✓
3. C a criminal solicitation ✓
4. D specific performance order ✓

Revocation of offer under Section 5 must be

1. A communicated before acceptance is complete ✓
2. B made only after contract formation ✓
3. C made only in writing always ✓
4. D made by court order ✓

Impossibility of performance may discharge a contract under

1. A Section 56 (doctrine of frustration) ✓
2. B Section 73 only ✓
3. C the Penal Code ✓
4. D the Arbitration Act only ✓

An agreement to do an impossible act is

1. A voidable ✓
2. B valid if written ✓
3. C void ✓
4. D enforceable by injunction ✓

Novation under Section 62 means

1. A minor breach only ✓
2. B limitation extension ✓
3. C criminal compromise ✓
4. D substitution of a new contract or new parties discharging the old obligation ✓

Remission of performance under Section 63 allows

1. A promisee to dispense with or remit performance wholly or partly ✓
2. B only court to forgive debt ✓
3. C only creditor to sue criminally ✓
4. D automatic frustration ✓

Specific performance of a contract to render personal service is generally

1. A not granted ✓
2. B always granted ✓
3. C granted if damages exceed one lakh ✓
4. D granted against minors only ✓

Injunction to perform a negative agreement may be granted when

1. A the contract is oral only always ✓
2. B the contract contains an express negative stipulation ✓
3. C the plaintiff has unclean hands always ✓
4. D damages are always adequate ✓