1. An agreement made without consideration is
a) valid,
b) illegal,
c) voidable
d) void
2. On the face of the ticket for a journey the words ― for conditions see back are printed in small print.
The passenger ________________
a) is bound by the conditions whether he takes care to read them or not.
b) is not bound by the conditions
c) may not take note of the conditions
d) none of the above.
3. A contract creates
a) rights in personam,
b) rights in rem,
c) only rights and no obligations,
d) only obligations and no rights.
4. A mere attempt at deceipt by a party to a contract ________________
a) is not fraud unless the other party is actually deceived
b) is fraud whether the other party has been deceived ornot
c) amounts to misrepresentation
d) none of the above.
5. If there is a fraudulent misrepresentation as to the character of a document , the contract is
________________
a) void,
b) voidable,
c) valid
d) illegal
6. The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with
a) agreement in restraint of legal proceedings,
b) minor‘s agreements
c) agreement in restraint of trade
d) agreement in restraint of marriage.
7. When promisee refuses to accept performance from the promisor who offers to perform, it is
________________
a) attempted performance,
b) vicarious performance,
c) tender
d) frustration of contract.
8. Assignment by operation of law takes place ________________
a) by the mutual consent of parties
b) by the will of either party
c) when the subject matter of a contract ceases to exist
d) by the death of a party to a contract.
9. Where a contract could not be performed because of the default by a third person on whose work
the promisor relied , it ________________
a) is not discharged
b) is discharged
c) becomes void
d) becomes voidable.
10. Specific performance may be ordered by the court when ________________
a) the contract is voidable
b) damages are an adequate remedy
c) damages are not an adequate remedy
d) the contract is uncertain.
11. If there is error in cause, the contract I
a) void
b) voidable
c) valid
d) illegal
12. A contingent contract is
a) void
b) voidable
c) valid
d) illegal
13. A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract is discharged by
a) breach
b) waiver
c) novation
d) performance
14. The measure of damages in case of breach of a contract is the difference between the
a) contract price and the market price at the date of breach
b) contract price and the maximum market price during the term of the contract
c) contract price and the price at which the plaintiff might have sold the goods,
d) contract price and the price fixed by court.
15. A minor has been supplied necessaries on credit
a) he is not liable
b) he is personally liable
c) his estate is liable
d) he is not personally liable
16. Any variance made without surety's consent in the terms of the contract between the principal
debtor and thecreditor discharges the surety
a) as to transactions prior to variance
Coffee
b) as to transactions subsequent to variance
c) as to all transactions
d) fromhis liability under the guarantee.
17. The doctrine of caveat emptor applies
a) incase of implied conditions and warranties
Coffee
b) when the buyer does not intimate the purpose to the seller and depends upon his own skill and
judgment
c) when goods are sold by sample
d) when goods are sold by description
18. A condition is a stipulation which is a
a) essential to the main purpose of contract of sale
b) not essential to the main purpose of contract of sale
c) collateral to the main purpose of contract of sale
d) none of the above.
19. A contract
a) may be void as originally entered into
b) may become void subsequent to its formation
c) cannot become void under any circumstances
d) may become void at the will of party
20. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission.
There is
a) a contract voidable at the option of acceptor
b) a contract voidable at the option of offerer,
c) no contract at all,
d) a valid
21. 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.
22. 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
23. 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.
24. 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
25. Promises forming consideration for each other are known as,
a) independent promises
b) dependent promises
c) reciprocal promises.
d) mutual promises
26. 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.
27. The court may grant rescission where the contract is
a) voidable at the option of the plaintiff
b) void
c) unenforceable
d) illegal
28. Quantum meruit means
a) a non gratuitous promise
b) an implied promise
c) as mush as earned
d) as much as is paid.
29. 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
30. 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.
31. The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954) deals with
a) agreement opposed to public policy
b) Supervening impossibility
c) contract of guarantee
d) agency
32. A person enters into an agreement whereby he is bound to do something which is against his public
orprofessional duty. The agreement is
a) void on the ground of public policy
b) valid
c) voidable
d) illegal
33. A minor enters into a contract for the purchase of certain necessaries , in such case
a) he is not personally liable to pay
b) he is liable to pay
c) his estate is liable to pay
d) his guardian is liable to pay.
34. Flaw in a capacity to contract may arise from
a) want of consideration
b) unsoundness of mind
c) illegality of object
d) uncertainty of object.
35. I there is error in consensus , the agreement is
a) void
b) voidable
c) avoid
d) illegal
36. An agreement to do an impossible act is,
a) void
b) voidable
c) illegal
d) enforceable under certain circumstances
37. When a party to a contract transfers his contractual rights to another, it is known as
a) rescission of contract
b) waiver of contract
c) discharge of contract,
d) assignment of contract.
38. A creditor agrees with his debtor and a third party to accept that third party as his debtor . The
contract is discharged by,
a) performance
b) alteration
c) waiver
d) remission
39. Anticipatory breach of a contract takes place
a) during the performance of the contract
b) at the time when the performance is due.
c) before the performance is due
d) at the time when the contract is entered into.
40. Exemplary damages are
a) allowed in case of dishounor of a cheque by a banker having sufficient funds
b) the difference between the contract price and the market price
c) allowed where in case of breach of a contract , the plaintiff has not suffered any loss.
d) none of these.
41. S and P go into a shop, S says to the shopkeeper, C let P have the goods and if he does not pay you, I
will ― This is a
a) contract of guarantee
b) contract of indemnity
c) wagering agreement
d) quasi contract
42. In a sale, the property in goods
a) is transferred to the buyer
b) is yet to be transferred to the buyer
c) may be transferred at a future time
d) istransferred when goods are delivered to the buyer
43. If a sale is by sample as well as by description , the implied condition is that the goods shall
correspond with
a) sample
b) description
c) both sample and description
d) either sample or description.
44. In a sale , there is an implied condition on the part of the seller that he
a) has a right to sell the goods
b) is in possession of the goods
c) will have the right to sell
d) will acquire the goods
45. In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the customer
,the court may award
a) ordinary damages,
b) nominal damages
c) exemplary damages
d) contemptuous damages.
46. An agreement is a voidable contract when it is
a) enforceable if certain conditions are fulfilled.
b) enforceable bylaw at the option of the aggrieved party.
c) enforceable by both parties d)not enforceable at all.
d) An agreement not enforceable by law is said to be
47. Acceptance may be revoked by the acceptor
a) at any time
b) before the letter of acceptance reaches the offerer
c) after the letter of acceptance reaches the offeree
d) before the death of the acceptor.
48. Consideration must move at the desire of
a) the promisor,
b) the promisee,
c) promisor or any other third party,
d) both the promisor and the promisee.
49. On attaining the age of majority a minor‘s agreement
a) can be ratified by him
b) cannot be ratified by him
c) becomes void
d) becomes valid.
50. When consent to an agreement is obtained by undue influence, the agreement is a
a) contract voidable at the option of the party whose consent was so obtained
b) void contract.
c) valid contract
d) void agreement.
51. A person who finds good belonging to another and takes them into his custody ,is subject to the
same responsibility as a
a) bailee
b) true owner
c) bailor
d) pledge.
52. Ordinary damages are damages which
a) arise in the usual course of things from the breach
b) which are in the contemplation of the parties at the time when the contract is made
c) are agreed in advance
d) are given by way of punishment for breach of contract.
53. An agreement to do an act impossible in itself
a) is void,
b) is voidable
c) is void ab initio
d) becomes void when impossibility is discovered
54. When two or more persons have made a joint promise, then unless a contrary intention appears
from the contract,all such persons must fulfill the promise
a) jointly
b) severally
c) jointly and severally
d) jointly or severally
55. A contract of insurance is a
a) contract of guarantee
b) contingent contract
c) wagering agreement
d) unilateral agreement.
56. If there is a unilateral mistake as regards identity of a party caused by fraud of he other party , the
contract is
a) void,
b) voidable,
c) valid
d) illegal
57. Consideration
a) must move from the promisee,
b) may move from the promisee or any other person
c) may move from the third party
d) may move from the promisor.
58. A contract is
a) a legal obligation
b) an agreement plus a legal obligation
c) consensus ad idem,
d) agreement plus a legal object.
59. Consideration must be something which the promisor
a) is already bound to do
b) is not already bound to do.
c) may voluntarily do
d) must not do.
60. Where consent is caused by fraud or misrepresentation , the contract is
a) voidable at the option of the aggrieved party
b) void
c) unenforceable
d) not affected in any manner
61. an agreement the meaning of which is not certain, is
a) void
b) voidable
c) valid
d) illegal
62. Owing to a strike in the factory of A, he is not able to supply the goods to B as per the terms of the
agreement > The agreement in such a case
a) is discharged
b) is not discharged
c) becomes void
d) is voidable at the option of A.
63. when an agreement is discovered to be void ,any person who has received any advantage under such
agreement
a) is bound to restore it
b) is not bound to restore it
c) is not bound to return it.
d) may retain it
64. A contract of indemnity is a
a) a contingent contract
b) wagering contract
c) quasi contract
d) void contract
65. The term property as used in the sale of goods act 1930 means
a) possession
b) ownership
c) ownership and possession both
d) the subject matter of contract of sale.
66. In case of breach of a warranty , the buyer can
a) claim damages only
b) repudiate the contract
c) cannot return the goods
d) refuse to take delivery of the goods
67. Sale of goods for cash is an example of
a) mutual and independent promises
b) mutual and dependent promises
c) mutual and concurrent promises
d) conditional and dependent promises,.
68. Where there are co-sureties ,a release by the creditor of one of them
a) discharges the other co-sureties
b) does not discharge the other co-sureties
c) makes all the co-suretiesimmediately liable
d) makes the contract of guarantee void.
69. The foundation of modern law of dameges was laid down in,
a) Tinn v. Hoffman
b) Taylor v. caldwell
c) Hadley v. Baxendale
d) Addis v. Gramophone
70. The case of Hadley v. Baxendale (1854) deals with
a) anticipatory breach of contract.
b) quantum of damages
c) supervening impossibility
d) quasi contract.
71. Thecollateral transactions to an illegal agreement are
a) Void,
b) illegal,
c) voidable,
d) not affected at all
72. 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
73. If a new contract is substituted in place of an existing contract, it is called
a) alteration
b) rescission
c) novation
d) waiver,
74. The right of subrogation in a contract of guarantee is available to the
a) creditor
b) principal debtor
c) surety
d) indemnified
75. 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.
76. 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.
77. 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
78. 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.
79. 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
80. 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.
81. The Law of Contract in India is contained in
a) Indian Contract Act 1862
b) Indian Contract Act 1962
c) Indian Contract Act 1872
d) Indian Contract Act 1972
82. In case of illegal agreements the collateral agreements are
a) Valid Contract
b) Void Contract
c) Voidable Contract
d) None of these
83. Consideration must move at the desire of:
a) Promisor
b) Promisee
c) Any other person
d) Any of these
84. A minor's liability for 'necessaries' supplied to him
a) Arises after he attains majority age
b) Is against only minor's property
c) Does not arise at all
d) Arises if minor gives a promise for it
85. When the consent of a party is obtained by fraud, the contract is
a) void
b) Voidable
c) Valid
d) Illegal
86. An agreement is void if it is opposed to public policy. Which of the following is not covered by heads
of public policy.
a) Trading with an enemy
b) Trafficking in public offices
c) Marriage brokerage contracts
d) Contracts to do impossible acts
87. A, B and C jointly promised to pay Rs.6000 to D. Before the performance of the contract, C dies.
Here the contract;
a) Becomes void on C's death
b) Should be performed by A and B along with C's legal representatives
c) Should be performed by A and B alone
d) Should be renewed between A, B and D
88. In case of breach of contract, which of the following remedy is available to the aggrieved party?
a) Suit for recission
b) Suit for damages
c) Suit for specific performance
d) All of these
89. A agrees to pay Rs.1,00,000 to B if he brings a star from the sky. This is a contingent contract and
a) Illegal
b) Valid
c) Voidable
d) Void
90. In the above question, the communication of acceptance is complete against A on 28th Dec.1998
and against B on;
a) 25th Dec.1998
b) 27th Dec.1998
c) 28th Dec.1998
d) 30th Dec.1998
91. Which of the following statement is true?
a) A contract with a minor is voidable at the option of the minor
b) An agreement with the minor can be ratified after he attains majority
c) A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind
d) A person who is usually of an sound mind cannot enter into contract even when he is of a unsound mind
92. Which of the following statement is true?
a) A threat to commit suicide does not amount to coercion
b) Undue influence involves use of physical pressure
c) Ignorance of law is no excuse
d) Silence always amounts to fraud
93. A contract is discharged by recission which means the;
a) Change in one or more terms of the contract
b) Acceptance of lesser performance
c) Abandonment of rights by a party
d) Cancellation of the existing contract
94. Generally, which of the following damages are not recoverable?
a) Ordinary damages
b) Special damages
c) Remote damages
d) Nominal damages
95. A, by a letter dated 25th December 1998, offers to sell his house to B for Rs.10 lakhs. The letter
reaches on 27th Dec.1998, who posts his acceptance on 28th Dec. 1998 which reaches A on 30th
Dec.1998. Here the communication of offer is completed on;
a) 25th Dec.1998
b) 27th Dec.1998
c) 28th Dec.1998
d) 30th Dec.1998
96. For entering into a contract, a minor is a person who has not completed the age of;
a) 16 years
b) 18 years
c) 20 years
d) 21 years
97. A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B's consent
is obtained by
a) A undue influence
b) Fraud
c) Coercion
d) None of these
98. Which of the following statement is false?
a) A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a
contract.
b) A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering
the truth with ordinary means
c) In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract
d) A party who affirms the contract , can also change his option afterwards if he so decides
99. The consideration or object of agreement is considered unlawful, if is
a) Forbidden by law
b) Fraudulent
c) Immoral
d) All of these
100. An agreement in restraint of marriage, ie, which prevents a person from marrying is
a) Valid
b) Voidable
c) Void
d) Contingent