Question :

A, by letter, offers to sell his iPod to B for Rs. 20,000. Without knowing A' s offer, B, by a letter, offers to buy the same iPod from A for Rs. 20,000. Here a. a binding contract comes into existence B' s letter is equivalent to acceptance of A' s offer
b. c. d.

no binding contract comes into existence as B' s letter is merely a cross offer No binding contract comes into existence as consideration is insufficient. The Indian Contract Act is silent on such issues

Question :

P agrees to sell and deliver to Y 300 quintals of Rice, but only 200 quintals are delivered. Y has the rice weighed and accepts the quintals sent. Y afterward objects that the whole of the 300 quintals of Rice was not delivered and he refuses to pay for 200 quintals. Is Y' s refusal to pay valid? a. Yes
b. c. d.

No Partly Yes None of the above

Question :

Which of the following statement is true? a. There can be a stranger to the contract.
b. c. d.

There can be a stranger to a consideration. There can be a stranger to a contract and consideration. None of the above

Question :

On the valid performance of the contractual obligations by the parties to the contract a. is discharged
b. c. d.

becomes enforceable becomes void becomes illegal

e. Question : A party who rightfully rescinds the contract is also entitled to receive compensation from the defaulting party.

a. b.

True Partly true

c. d.

False None of the above

Question : Which of the following person are not competent to contract?

a. b. c. d.

Minor Persons of unsound mind Persons disqualified by law All of these

Question : A minor's liability for necessariessupplied to him

a. b. c. d.

arises only after he attains majority age. is against only minor's property. does not arise at all. arises if minor gives a promise for it.

Question :

When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of a. b. c. d.

either party to the agreement a party whose consent was so obtained a party who obtained the consent none of these

Question :

Where an agreement consists of two parts one legal and the other illegal, and the legal part is separable from the illegal, one, such legal part is -

a. b.

Void Valid

c. d.

Voidable Illegal

Question :

A contract dependent on the happening or non-happening of future uncertain event is a -

a. b. c. d.

uncertain contract contingent contract void contract Voidable contract

Question : Where the consent of a party is obtained by misrepresentation, the contract is a. b. c. d.

void voidable valid illegal

Question :

G books a ticket with Indian Airlines from Delhi to Chennai on 16 June, date of arrival being 16 July. Indian Airlines has to perform its part of contract on 16t July. This is an example of -

th

th

a. b. c. d.

Void Illegal Unilateral Bilateral

Question : An essential feature of consideration is that a. b. c.

Is must be en cashable It must be given by the promise alone It must be at the desire or request of the Promisor

d.

It must be guaranteed

Question : Illegal agreements are -

a. b. c. d.

Not enforceable by law Forbidden under law Either (a) or (b) Both (a) or (B)

Question :

A promises to supply 50 sets of Men' s suit of a particular type to B three months hence. By that time there is o demand for those suits. A & B can rescind the contract. This is called a. b. c. d.

Mutual Rescission Breach Impossibility of Performance Revocation of Proposal

Question :

Nominal Damages can be a. Claimed by the aggrieved party as a matter of right

b. c. d.

Awarded only at the discretion of the court Should be specified/qualified in the contract All of the above

Question : Which of these does not constitute Fraud?

a.

Suggestion as a fact, of something which is not true, by a person who does not believe it to be true.

b.

Active concealment of a Fact by one having knowledge or belief of the fact.

c. d.

Innocent statement, honestly believing the same to be true. Promise made without any intention of performing it.

Question :

Coercion is a. committing or threatening to commit any act forbidden by law of the Indian Penal Code.
b. c. d.

unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever. either 1 or 2 neither 1 or 2

Question : M offers to sell his house for N for Rs. 36 Lakhs and states in his letter that the offer would be considered if acceptance is not communicated within a certain time. Her the letter of M would
a. b. c. d.

Amount to proposal Not amount to proposal Amount to a promise Amount to acceptance

Question : Which of the following results in an offer? a. Declaration of intention

b. c. d.

An invitation to offer As advertisement offering reward to anyone who finds the lost dog of the advertiser An offer made in a joke

Question : A person is deemed to be in a position to dominate the will of another by undue influence if the mental capacity is affected temporarily or permanently by reasons of -

a. b. c.

Age Illness Mental ability or bodily distress

d.

All of the above

Question : Which of these are opposed to public policy? a. Restraint of marriage

b. c. d.

Restraint of personal liberty Interference with course of justice All of the above

Question :

Which of the following persons can perform the contract?

a. b. c. d.

Promisor alone Legal Representatives of Promisor Agent of the Promisor All of these

Question : An anticipatory breach does not give any right to claim compensation.

a. b. c. d.

True Partly True False None of the above

Question : For the purposes of entering into a contract, a Minor is a person who has not completed he age of -

a.

16 years

b. c. d.

18 years 20 years 21 years

Question : A agrees to sell his act worth Rs.1, 00,000 to B for Rs. 20,000 only, and A' s consent was obtained by coercion. Here, the agreement is a. b. c. d.

Void Voidable Valid Unlawful

Question : If by agreement, a person is bound to do something which is against his personal or professional duty, or which intervenes in another' s personal or professional interest, it is -

a. b. c. d.

Void Valid Enforceable voidable

Question : A and B, being traders enter upon a contract. A has private information of a change in prices which would affect B' s willingness to proceed with the contact. Is A bound to inform to B?
a. b. c. d.

Yes No Partly Yes None of the above

Question :

R, an optical surgeon, employs S as the assistant for a term of three years and S agrees not to practice

as a surgeon during this period. This contract is -

a. b. c. d.

Valid Void Voidable Illegal

Question :

A agrees to pay Rs. 500 to b if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called a. b. c. d.

Quasi contract Contingent contract Wagering agreement Voidable contract

Question :

In case of illegal agreement, the collateral agreements are -

a. b. c. d.

valid void voidable enforceable

Question : Agreement, the meaning of which is uncertain is a. valid

b. c. d.

void voidable Illegal

Question :

An agreement which is enforceable by law at the option of one or more of the parties there on but not at t he option of the other or others is a a. valid contract
b. c. d.

voidable contract void agreement contingent agreement

Question :

The offer of Promisor to perform must be made to a. the promise

b. c. d.

an one of the joint promises Authorised agent(s) of (a) or (b) any one of the above

Question :

Where the promisee has to apply to the promisor for performance, such application should be made at a proper time and place. Proper time and place is a a. question of fact
b. c. d.

question of law question of general custom not a question at all

Question :

Novation of a contract under Indian Contract Act means -

a. b. c. d.

Cancellation of contract Alteration of the contract The renewal of original contract Substitution of a new contract in place of original contract

Question :

The phrase Quantum Meruitliterally means

a. b. c. d.

as much as earned the fact in itself a contract for the sale as much as gained

Question :

No consideration, No contractis the rule of law

a. b. c. d.

True Partly True False None of the above

Question : A quasi contract

a. b. c. d.

Is a contact Is an agreement Has only a legal obligation Is not any of these

Question :

In case, where a proposal and it as acceptance are not made by words and are inferred from the conduct of the parties. They are known as -

a. b.

Implied offers Expressed Offers

c. d.

Specific Offers General Offers

Question :

A contract where there is a mistake as to law of the land is voidable, when one party was induced by another.

a. b. c. d.

True Partly True False None of the above

Question :

Which of the following statements is true?

a. b. c. d.

An agreement enforceable by law is a contract An agreement is an accepted proposal Both (a) and (b) Neither (a) nor (b)

Question : Which of the following is not an exception to the rule - No Consideration, No Contract?

a. b. c. d.

Compensation for involuntary services Love and affection Contract of agency Gift

Question :

A, B and C jointly promised to pay Rs. 90,000 to D. Before performance of the contract, C dies. Here the contract -

a. b. c. d.

Becomes void on C' s death Should be performed by A and B along with C' s legal representatives Should be performed by A and B alone Should be renewed between A, B and D

Question :

A contract is discharged by Rescission, which means the-

a. b. c. d.

change in one or more terms of the contract acceptance of lesser performance abandonment of rights by a party Cancellation of the existing contract

Question :

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for

a. b. c. d.

damages injunction quantum meruit rescission

Question : When the consent of a party is obtained by misrepresentation, the contract is a. b. c. d.

void voidable valid illegal

Question :

Where one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by -

a. b. c. d.

undue influence fraud coercion misrepresentation

Question :

An agreement, which prevents a person from carrying a lawful business is-

a. b. c. d.

void valid voidable contingent

Question : Agreement with a view to defraud others isa. b. c. d.

legal void voidable valid