1. Thecollateral transactions to an illegal agreement are
a) Void,
b) illegal,
c) voidable,
d) not affected at all
2. Which of the following are contingent contracts?
a) contract of insurance
b) contract of guarantee,
c) contracts for the sale of goods on credit
d) Wagering agreements
3. If a new contract is substituted in place of an existing contract, it is called
a) alteration
b) rescission
c) novation
d) waiver,
4. The right of subrogation in a contract of guarantee is available to the
a) creditor
b) principal debtor
c) surety
d) indemnified
5. Ifa contract contains an undertaking to perform an impossibility , the contract is
a) void ab initio
b) void
c) voidable at the option of the plaintiff
d) illegal.
6. A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A ‗s
promise can beenforced when the ship
a) arrives Mumbai a damaged condition during the years
b) is lost during the year
c) is sunk during the years
d) arrives Mumbai in a good condition during the year.
7. An employee , by the terms of his service agreement , is prevented from accepting a similar
engagement after the termination of his service .The restraint
a) valid
b) void
c) illegal
d) unenforceable
8. A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal representation of A are
a) Liable for Rs. 10000
b) liable for Rs. 6000
c) not liable at all
d) liable for Rs. 3000.
9. Regulationas to the opening and closing of business in a market are
a) not unlawful even if they are in restraint of trade.
b) unlawful because they are in restraint of trade.
c) void
d) not valid
10. Where both the parties to an agreement are under a mistake as a matter of fact essential to the
agreement ,theagreement I
a) void
b) voidable
c) illegal
d) not affected at all.