1. Compromise of dispute claims
a) is a good consideration for a contract
b) is not a good consideration for a contract
c) results in a void agreement
d) is not permitted by law.
2. Contracts made before war with an alien enemy which are against public policy are
a) suspended and are revived after the war is over.
b) dissolved
c) not affected at all
d) All of the above
3. When a person positively asserts that a fact is true when his information does not warrant it to be so,
though he believes it to be true, there is
a) misrepresentation
b) fraud
c) undue influence
d) coercion.
4. The Case of Cundy v. Lindsay (1878)deals with
a) Coercion
b) undue influence
c) mistake as to the nature of transaction
d) mistake as regards identity
5. Promises forming consideration for each other are known as,
a) independent promises
b) dependent promises
c) reciprocal promises.
d) mutual promises
6. A contract has become more difficult of performance due to some un-contemplated events or delays
.The contract
a) is discharged
b) is not discharged
c) becomes void
d) becomes voidable.
7. The court may grant rescission where the contract is
a) voidable at the option of the plaintiff
b) void
c) unenforceable
d) illegal
8. Quantum meruit means
a) a non gratuitous promise
b) an implied promise
c) as mush as earned
d) as much as is paid.
9. In a sale ,if the goods are destroyed , the loss falls on
a) the buyer
b) the seller
c) partly on buyer and partly on seller
d) the seller if price has not been paid
by the buyer
10. The omission of the creditor to sue within the period of limitation
a) discharges the surety
b) does not discharge the surety
c) makes the contract of guarantee void
d) makes thecontract of guarantee illegal.