CMA Foundation MCQ – ConsiderationOctober 3, 2025 Maven Leave a Comment Welcome to the CMA Foundation - Consideration Quiz! Name Email 1. Which of the following is an example of unlawful consideration? A promise to sell a house for ₹1 lakh A promise to pay for future delivery of goods An agreement to share profits from smuggling activities A promise to pay for voluntary services None 2. Which of the following case laws established that a stranger to a contract cannot sue? Chinnayya vs Ramayya Durga Prasad vs Baldeo Dunlop Pneumatic Tyre Co. vs Selfridge Co. MK Rapai vs John None 3. Which of the following is a correct statement about privity of contract under Indian law? Only a party to a contract can sue to enforce it, subject to certain exceptions Any person who provides consideration can sue, even if not a party Consideration must always move from the promisee only Third-party beneficiaries can always sue under Indian law None 4. Which section of the Indian Contract Act states that completed gifts need no consideration? Section 127 Section 63 Explanation 1 to Section 25 Section 185 None 5. A promises to pay B ₹1,000 without requiring B to do anything. This agreement is: Valid, as consideration is not required for all agreements Void, as there is no consideration Voidable, at the option of B Valid, if in writing None 6. Under Section 25(1), an agreement based on natural love and affection must be: Oral and voluntary Written and registered Supported by consideration Between unrelated parties None 7. Which of the following statements about adequacy of consideration is correct? Consideration must always be equal in value to the promise. Inadequacy of consideration makes a contract void. Adequacy of consideration is immaterial, but may be considered in cases of undue influence or coercion. Adequacy of consideration is compulsory under Indian law. None 8. In which case was it held that a promise to contribute to charity is enforceable if the promisee incurs liability based on that promise? Abdul Aziz vs Mazum Ali Dunlop vs Selfridge Kedarnath vs Gorie Mohammad Venkatswamy vs Rangaswamy None 9. A finds B’s purse and returns it. B promises to give A ₹500. This agreement is: Void, as there is no consideration Valid, as it is a promise to compensate for voluntary services under Sec. 25(2) Voidable, at the option of A Enforceable only if written None 10. Which of the following is NOT an exception to the rule that a stranger to a contract cannot sue? Beneficiary under a trust Assignee of a contract Party under a marriage settlement Seller of goods in a cash sale None Time's upRelated Posts:CMA Foundation MCQ - Elements of a ContractCMA Foundation MCQ – Primary and Subordinate LegislationCMA Foundation MCQ – Void and Voidable AgreementsCMA Foundation BL - Lesson1.1
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