Question 1:- The legal term for tangible property is:

a) trust

b) chattel

c) mortgage

d) private property

Question 2:- Law is enforced by

a) Parliament

b) Legislature

c) Executive

d) Society

Question 3:- Ignorance of Law is:

a) a good excuse

b) cannot be excused

c) no excuse

d) always an excuse

Question 4:- Substantive Law defines:

a) methods by which law is made

b) the legal rights/ obligations

c) principle underlying a decision

d) decision of the judge

Question 5:- An artificial person is also called:

a) Corporation

b) Company

c) Office

d) legal entity

Question 6:- An offer made to specific person is called:

a) express offer

b) implied offer

c) specific offer

d) general offer

Question 7:- An agreement of a purely social nature is:

a) a valid contract

b) a void contract

c) a voidable contract

d) not a contract

Question 8:- The parties to a contract must be competent to contract. The flaw in capacity
to contract may be due to-

a) minority

b) lunacy

c) idiocity

d) All of these

Question 9:- At the time of entering into a contract, parties must be thinking of the same
thing in the same sense. This is also known as:
a) intention to create a legal relationship

b) lawful consideration

c) consensus-ad-idem

d) free and genuine consent

Question 10:- Which option is a true statement?

a) All contracts must be reduced to writing

b) No contract need to be in writing

c) If a particular type of contract is required by law to be in writing it must comply with

the necessary formalities

d) None of the given Options is correct

Question 11:- In the context of consideration for a contract, the Rule is that:

a) Consideration need not be adequate

b) Consideration must be real and competent

c) both the options i.e. A and B are correct

d) none of the options is correct

Question 12:- A saves B's life. B promises to pay A Rs. One lac out of gratitude.

a) There is no consideration, hence the contract is void

b) It is a void contract as Rs. One lac is too little for saving life.

c) it is a valid contract because the consideration for B's promise is present

consideration
d) it is a valid contract because the consideration for B's promise is past

consideration

Question 13:- A dealer enters into an agreement to sell a smuggled item to X. import of
such type of goods is illegal. A refuses to deliver the item as promised. What are the rights
of X?

a) sue the dealer for breach of a contract.

b) wait till such imports become legal and then sue the dealer.

c) it is a voidable contract.

d) it is a void contract

Question 14:- A' signed a promissory note which he was told was a letter of guarantee. Will
he be bound to honour the Promissory Note?

a) Yes, he affixed his signatures on the promissory note

b) No, he did not know how to sign properly.

c) He is not bound as there was no consent to the agreement entered into by

him
d) He could have made a verbal agreement

Question 15:- With respect to causing any person to enter into an agreement, "Coercion"
is-

a) the committing any act forbidden by Indian Penal Code

b) threatening to commit any act forbidden by Indian Penal Code

c) unlawful detaining any property to the prejudice of any person

d) all the three options under A, B, and C

Question 16:- The party to contract aggrieved or wronged by 'misrepresentation' can:

a) avoid the performance of the contract

b) avoid the contract and sue for damages

c) neither avoid the contract, nor can he sue for damages

d) none of the given option is correct

Question 17:- A clause in agreement provides that no action should be brought after two
years. The Limitation Act, 1963, however an action for breach of contract may be brought
within three years from the date of breach. In view of given facts, the correct position is:

a) parties are free to agree upon any terms they like, the clause in the Agreement is

operative.
b) the clause in the Agreement is valid, as there is no ambiguity in the language, and

both the parties have agreed upon it

c) the clause in the Agreement is void, as it is opposed to the provisions of the

Limitation Act
d) none of the given option is correct

Question 18:- A agrees to sell to B 100 tones of oil.

a) the agreement is void for uncertainity,as it does not show what kind of oil was

intended
b) this agreement is valid

c) this agreement s voidable at the option of A

d) this agreement is voidable at the option of B

Question 19:- A agrees to pay B Rs.ten lacs if B's house is burnt.

a) It is not a valid agreement

b) it is a void agreement being 'uncertain'

c) it is a void agreement being 'contingent 'upon happening or non happening of the

event
d) it is a valid 'contingent' contract

Question 20:- Quasi contract' is a situation in which law imposes upon one person an
obligation similar to that which arises from a true contract. It is based on natural justice. In
view of these provisions which of the option is a Quasi contract?

a) A supplies B, a lunatic, with necessaries suitable to his condition in

life
b) A a tradesman, leaves goods at B's house by mistake

c) a party pays to another money by mistake, which is not due to him

d) all the three cases mentioned under various options are quasi

contracts

Question 21:- the phrase 'quantum meruit means:

a) as much as earned

b) to each according to his need

c) to each according to his condition

d) none of the options is correct

Question 22:- Section 10 of the Contract Act enumerates some essentials of a valid
contract. Which if the options is thus enumerated in Section 10?

a) agreements made by free consent of parties, competent to contract

b) agreements made for a lawful consideration and with lawful object

c) agreements not expressed declared by law to be void

d) All given the options are enumerated in Section 10

Question 23:- A promisor offers performance of his obligation under the contract, at the
proper time and place, but the promise refuses to accept the performance. This is called:

a) Tender

b) Attempted performance

c) both A, and B options are correct

d) none of the options is correct

Question 24:- A contract is deemed to have become impossible of performance under the
circumstances that the subject matter of a contract is destroyed for no fault of the promisor.
Such circumstances are called:

a) inherent impossibility

b) supervening impossibility

c) Expected impossibility

d) all given options are correct

Question 25:- A contract is discharged by death of the promisor, by insolvency of the

promisor, by entering into a new contract where inferior rights under the previous agreement
are merged in the new one, such discharge of a contract is called : discharge by

a) Operation of law

b) by breach

c) supervening impossibility

d) all given options are correct

Question 26:- A contract to perform the promise or discharge the liability of a third person
in case of his default is called:

a) a contract of insurance

b) a contract of guarantee

c) a contact of bailment

d) none of the given options is correct

Question 27:- In a contract of guarantee the person for whom the guarantee is given is
called:

a) surety

b) principal debtor

c) creditor

d) none of the options is correct

Question 28:- Which of the options is correct, about a contract of guarantee?

a) a contract of guarantee is not a contract 'uberrimae fidei'

b) the creditor must inform the surety about all his previous dealings with the

debtor
c) both options A and B are correct

d) none of the options is correct

Question 29:- Which of the options is correct, about a contract of guarantee?

a) a contract of guarantee may either be oral or in writing

b) a contract of guarantee must be in writing

c) both options A and B are correct

d) none of the options is correct

Question 30:- which of the options is correct with regard to rights of a creditor in a contract
of guarantee?

a) all remedies against the principal debtor should be exhausted by the creditor before

proceeding against the surety

b) the creditor is entitled to demand payment from the surety as soon as the principal

debtor refuses to pay or makes a default in payment

c) both options A and B are correct

d) none of the options is correct