LAW OF CONTRACT
1.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
2.An agreement enforceable by law is a
(a)Promise. (b) Contract.
(b)Obligation. (d) Lawful Promise.
3.A void agreement is one which is
(a)Valid but not enforceable
(b)Enforceable at the option of one party
(c)Enforceable at the option of one parties
(d)Not enforceable in a court of law.
4.An agreement which is enforceable by law at the option of one or
more of the parties thereon but not at the option of the other or
other is a
(a)Valid Contract. (b) Void Contract.
(b)Voidable Contract. (d) Illegal Contract.
5.Which of the following is false? An offer to be valid must:
(a)Intend to crease legal relations.
(b)Have certain & unambiguous terms.
(c)Contain a term the non-compliance of which would amount to acceptance.
(d)Be communicated to the person to whom it is made.
6.When the consent of a party is not free, the contract is
(a)Void. (b) Voidable
(c)Valid (d) Illegal.
7.Which of the following is false? An acceptance:
(a)Must be communicated.
(b)Must be absolute and unconditional.
(c)Must be accepted by a person having authority to accept.
(d)May be presumed from silence of offeree.
8.In case of illegal agreements, the collateral agreements are:
(a)Valid. (b) Void.
(b)Voidable(d) None of these.
9.An offer may lapse by:
(a)Revocation.
(b)Counter Offer.
(c)Rejecion of Offer by Offeree.
(d)All of these.
10.A Proposal when accepted becomes a
(a)Promise(b) Contract.
(c)Offer. (d) Acceptance.
11.Which of the following statement is true?
(a)Consideration must result in a benefit to both parties.
(b)Past consideration is no consideration in India.
(c)Consideration must be adequate
(d)Consideration must be something, which a promisor is not already bound to do.
12.Which of the following statement is false? Consideration:
(a)Must move at the desire of the promisor.
(b)May move from any person.
(c)Must be illusory.
(d)Must be of some value
13.Which of the following statement is false?
(a)Generally a stranger to a contract cannot sue.
(b)A verbal promise to a time barred debt is valid.
(c)Completed gifts need no consideration.
(d)No consideration is necessary to create an agency.
14.Consideration must move at the desire of
(a)Promisor. (b) Promisee.
(c)Any other person. (d) Any of these.
15.Which of the following statement is true?
(a)There can be a stranger to a contract.
(b)There can be a stranger to a consideration.
(c)There can be a stanger to a contract & consideration.
(d)None of the above.
16.Consideration may be
(a)Past (b) Present
(c)Future (d) All of the above.
17.Consideration in simple term means:
(a)Anything in return.
(b)Something in return.
(c)Everything in return.
(d)Nothing in return.
18.Which of the following is not an exception to the rule- No
consideration, No contract
(a)Compensation for involuntary
(b) Love & Affection.
(c) Contract of Agency.
(d) Gift.
19.Ordinarily, a minor's agreement is
(a) Void ab initio (b) Voidable.
(c) Valid. (d) Unlawful.
20.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.
21.Which of the following statements is not true about minor's
position in a firm?
(a) He cannot become a partner in an existing firm.
(b) He can become a partner in an existing firm.
(c) He can be admitted only to the benefits of any exiting firm.
(d) He can become partner on becoming a major.
22.Which of the following statement is true?
(a) A contract with a minor can be ratified after he attains majority.
(b) An agreement with a 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 a sound mind cannot enter into contract
when he is of unsound mind.
23.Consent is not said to be free when it is caused by
(a) Coercion. (b) Undue Influence.
(c) Fraud. (d) All of these
24.When the consent of a party is obtained by fraud, the contract is;
(a) Void. (b) Voidable.
(c) Valid. (d) Illegal.
25.The threat to commit suicide amounts to
(a) Coercion. (b) Undue Influence.
(c) Misrepresentation. (d) Fraud.
26.Moral pressure is involved in the case of
(a) Coercion. (b) Undue Influence.
(c) Misrepresentation. (d) Fraud.
27.A wrong representation when made without any intention to deceive
the other party amounts to
(a) Coercion. (b) Undue Influence.
(c) Misrepresentation. (d) Fraud.
28.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.
29.In case of illegal agreements, the collateral agreements are:
(a) Void (b) Valid
(c) Voidable (d) Any of these.
30.An agreement the object or consideration of which is unlawful, is
(a) Void. (b) Valid.
(c) Voidable. (d) Contingent.
31.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.
32.On the valid performance of the contractual obligations by the
parties, the contract
(a) is discharged. (b) becomes enforceable.
(c) Becomes void. (d) None of these.
33.Which of the following persons can perform the contract?
(a) Promisor alone.
(b) Legal representatives of promisor.
(c) Agent of the promisor.
(d) All of these.
34.A, B, and C jointly promised to pay Rs. 60,000 to D. Before
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.
35.A contract is discharged by novation which means the
(a) cancellation of the existing contract.
(b) change in one or more terms of the contract.
(c) substitution of existing contract for a new one.
(d) none of these.
36.A contract is discharged by rescission 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.
37.When prior to the due date of performance, the promisor absolutely
refuses to perform the contract, it is known as
(a) abandonment of contract.
(b) remission of contract.
(c) actual breach of contract.
(d) anticipatory breach the contract
38.In case of anticipatory breach, the aggrieved party may treat the contract.
(a) as discharged and bring an immediate action for damages.
(b) as operative and wait till the time for performance arrives.
(c) exercise option either (a) or (b)
(d) only option (a) is available.
39.In case of breach of contract, which of the following remedy is
available to the aggrieved party?
(a) Suit for rescission.
(b) Suit for damages.
(c) Suit for specific performance.
(d) All of these.
40.Sometimes, a party is entitled to claim compensation in proportion
to the work done by him. It is possible by a suit for
(a) damages (b) injunction
(c) quantum meruit (d) None of these.
41.Generally, the following damages are not recoverable?
(a) Ordinary damages.(b) Special damages.
(c) Remote damages. (d) Nominal damages.
42.A contract dependent on the happening or non-happening of future
uncertain event, is a
(a) Uncertain contract.(b) Contingent contract.
(c) Void contract. (d) Voidable contract.
43.A contingent contract is
(a) Void (b) Voidable
(c) Valid (d) Illegal
44.A contingent contract dependent on the happening of future
uncertain event can be enforced when the event
(a) happens (b) becomes impossible
(c) does not happen (d) either of these.
45.A agrees to pay Rs. One lakh to B if he brings on earth a star from
sky. This is a contingent contract and
(a) Illegal (b) Valid
(c) Voidable (d) Void.
46.Which of the following statements is true
(a) an agreement enforceable by law is a contract
(b) an agreement is an accepted proposal
(c) both (a) and (b)
(d) none of these.
47.A voidable contract is one which
(a) can be enforced at the option of aggrieved party
(b) can be enforced at the option of both the parties
(c) cannot be enforced in a court of law
(d) courts prohibit.
48.On the acceptance of an offer by a offeree,
(a) Only the acceptor becomes bound by accepting the offer.
(b) Only the offeror becomes bound as his terms are accepted.
(c) Both the acceptor and offeree becomes bound by the contract.
(d) None of these
49.A, by a latter dated 25th December, 1998, offers to sell his house
to B for Rs. 10 lakhs. The letter reaches B on 27th December, 1998,
who posts his acceptance on 28th December 1998 which reaches A on 30th
December, 1998. Here, the communication of offer is complete on
(a) 25th December, 1998 (b) 27th December, 1998
(c) 28th December, 1998 (d) 30th December, 1998
50.In the above question, the communication of acceptance is complete
against A on 28th December, 1998, and against B on
(a) 25th December, 1998 (b) 27th December, 1998
(c) 28th December, 1998 (d) 30th December, 1998
51.As a general rule, an agreement made without consideration is
(a) void (b) voidable
(c) valid (d) unlawful
52.A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000
only, and A's consent was obtained by coercion. Here, the agreement is
(a) void (b) valid
(c) voidable (d) unlawful
53.An agreement made with free consent to which the consideration is
lawful but inadequate, is
(a) void (b) valid
(c) voidable (d) unlawful
54.Which of the following persons are not competent to contract?
(a) minors
(b) persons of unsound mind
(c) persons disqualified by law
(d) all of these
55.For the purposes of 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
56.A contract with minor, which is beneficial for him, is
(a) void ab initio (b) voidable
(c) valid (d) illegal
57.Which of the following persons do not fall under the category of
persons of unsound mind?
(a) idiot (b) lunatics
(c) drunken person (d) alien.
58.Which of the following elements does not effect the free consent of
the parties
(a) coercion (b) fraud
(c) incompetency (d) undue influence
59.When the consent of a party is obtained by coercion undue
influence, fraud of misrepresentation, the contract is
(a) void (b) voidable
(c) valid (d) illegal
60.A threatens to kill B if he does not agree to sell his scooter to
him for Rs. 1000 only. Here B's consent is obtained by
(a) undue influence (b) fraud
(c) coercion (d) none of these
61.When the consent to an agreement is obtained by coercion, the
agreement is voidable at the option of
(a) either party to the agreement
(b) a party whose consent was so obtained
(c) a party who obtained the consent
(d) none of these.
62.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) coercion (b) undue influence
(c) fraud (d) misrepresentation.
63.Which of the following acts does not fall under the categories of fraud?
(a) International false statement of facts
(b) Active concealment of facts
(c) Innocent false statement
(d) Promise made without intention to perform.
64.Where the consent of a party is obtained by misrepresentation, the
contract is
(a) valid (b) void
(c) voidable (d) illegal
65.Which of the following statements is false?
(a) A contract is not voidable if fraud of misrepresentation does not
induce the other party to enter into 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 of 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.
66.Where the consent of both the parties is given by mistake, the contract is
(a) void (b) valid
(c) voidable (d) illegal
67.As per section 20. The contract is void on account of bilateral
mistake of fact, but as per Section 22, if there is mistake of only
one party, then the contract is
(a) void (b) valid
(c) voidable (d) illegal
68.A contract made by mistake about the India Law, is
(a) void (b) valid
(c) voidable (d) illegal
69.A contract made by mistake about the foreign Law, is
(a) void (b) valid
(c) voidable (d) illegal
70.A mistake as to law not in force in India has the same effect as:
(a) mistake of fact (b) mistake of Indian law
(c) fraud (d) misrepresentation
71.The consideration or object of an agreement is considered unlawful, if it is
(a) forbidden by law (b) fraudulent
(c) immoral (d) all of these.
72.A agrees to pay Rs. Lakhs to B if he (B) procures an employment for
A in Income Tax Department. This agreement is
(a) void (b) valid
(c) voidable (d) contingent.
73.A agrees to pay Rs. 50,000 to B if he kills C. The agreement is
(a) void (b) valid
(c) voidable (d) contingent.
74.An agreement in restraint of marriage, i.e, which prevents a person
from marrying, is
(a) valid (b) voidable
(c) void (d) contingent
75.An agreement in restraint of marriage is valid in case of following persons.
(a) Minors (b) Educated
(c) Married (d) None of these.
76.An agreement, which prevents a person from carrying a lawful business, is
(a) Valid (b) Void
(c) Voidable (d) Contingent
77.An agreement in restraint of legal proceedings is void. It does not
cover an agreement which
(a) Restricts absolutely the parties from enforcing their legal rights
(b) Cuts short the period of limitation
(c) Discharges a party from liability or extinguishes the rights of a party
(d) Provides for a reference to arbitration instead of court of law.
78.A agrees to sell his car to B at a price which B may be able to
pay. This agreements is
(a) void (b) valid
(c) voidable (d) contingent.
79.An agreement to pay money for money's worth on the happening or
non-happening of a specified uncertain event, is a
(a) wagering agreement (b) Contingent contract
(c) quasi contract (d) uncertain agreement
80.An agreement to do an illegal act e.g., to share the earnings of a
smuggling business, is
(a) Valid (b) Void
(c) Voidable (d) Contingent
81.Where an agreement consists of two parts once legal and the other
illegal, and the legal part is separable form the illegal one, such
legal part is
(a) void (b) valid
(c) voidable (d) illegal
82.A contingent contract dependent on the non-happening of a future
uncertain event becomes void when such event
(a) happens
(b) does not become impossible
(c) does not happen
(d) both (a) and (b)
83.A agrees to pay Rs. 1,000 to B if a certain ship returns within a
year. However, the ship sinks within the year. In this case, the
contract becomes
(a) valid (b) void
(c) voidable (d) illegal
84.A contingent contract dependent on the non-happening of specified
uncertain event within fixed time can be enforced if the event
(a) does not happen within fixed time
(b) becomes impossible before the expiry of fixed time
(c) happens within the fixed time
(d) both (a) and (b)
85.The basis of quasi contractual relations' is the
(a) existence of a valid contract between the parties
(b) prevention of unjust enrichment at the expense of others.
(c) Provisions contained on Section 10 of the Contract Act
(d) Existence of a voidable contract between the parties.
86.Sometimes, a person finds certain goods belonging to some other
persons. In such a case, the finder
(a) becomes the owner of the goods and can use them
(b) is under a duty to trace the true owner and return the goods
(c) can sell the perishable goods if true owner cannot be found
(d) both (b) and (c)
87.A, B and C jointly promised to pay Rs. 60,000 to D.A was compelled
by D to pay the entire amount of Rs. 60,000. Here
(a) A can file a suit against D for recovery of amount exceeding his share.
(b) A is entitled to recover Rs. 20,000 each from B and C
(c) On payment by A, the contract is discharged and B and C are also
not liable to A.
(d) D is not justified here, and is liable to refund the entire amount to A.
88.In commercial transactions, time is considered to be of the essence
of the contract, and if the party fails to perform the contract within
specified time, the contract becomes:
(a) voidable at the option of the other party
(b) void and cannot be enforced
(c) illegal for non-compliance of legal terms
(d) enforceable in higher court only.
89.Where the performance of a promise by one party depends on the
prior performance of promise by the other party, such reciprocal
promises fall under the category of
(a) Mutual and concurrent
(b) Conditional and concurrent
(c) Mutual and independent
(d) Both (a) and (b)
90.When after the formation of a valid contract, and event happens
which makes the performance of contract impossible, then contract
becomes:
(a) void (b) voidable
(c) valid (d) illegal
91.A party entitled to rescind to rescind the contract, loses the remedy where
(a) he has ratified the contract
(b) third party has acquired right in good faith
(c) contract is not separable and rescission is sought of a par only
(d) all of these
92.The special damages, i.e., the damages which arise due to so e
special of unusual circumstances-
(a) Are not recoverable altogether
(b) Are illegal being punitive in nature
(c) Cannot be claimed as a matter of right
(d) Can be claimed as a matter of right.
93.Which of the following statements is correct?
(a) Ordinary damages are recoverable.
(b) Special damage are recoverable only if the parties knew about them.
(c) Remote or indirect damages are not recoverable
(d) All of these.
94.When offer is made to a definite person, it is known as
(a) General Offer (b) Cross Offers
(c) Counter Offer (d) Special Offer
95.Standing Offer means
(a) Offer allowed to remain open for acceptance over a period of time.
(b) Offer made to the public in general.
(c) When the offeree offers to qualified acceptance of the offer.
(d) Offer made to a definite person.
96.When the offeree offers to qualified acceptance of the offer
subject to modifications and variations he is said to have made a
(a) Standing, open of continuing offer.
(b) Counter Offer.
(c) Cross Offers
(d) Special Offer
97.What is legal terminology for the doing or not doing of something
which the promisor desires to be done or not done?
(a) Desires. (b) Wishes.
(c) Consideration. (d) Promise.
98.Can a person who is usually of unsound, but occasionally of sound
mind, make a contract?
(a) Yes, he can always make a contract.
(b) Yes, but only when he is of sound mind.
(c) No, he cannot make a contract.
(d) Can't be determined.
99.A and B both believe that a particular kind of rice is being sole
in the market at Rs. 3,000 per quintal and A sells rice of that kind
to B at Rs. 3,000 per quintal. But, in fact, the market price was Rs.
4,000. The contract is
(a) Valid. (b) Void.
(c) Voidable (d) Illegal
100.A sells the goodwill of his business to B and agrees with him to
refrain from carrying on a similar business within specified local
limits. This contract is
(a) Valid. (b) Void.
(c) Voidable. (d) Illegal.
101.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) Valid. (b) Void.
(c) Voidable. (d) Illegal.
102.Agreement-the meaning of which is uncertain is
(a) Valid. (b) Void.
(c) Voidable. (d) Illegal
103.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) Quasi Contract (b) Contingent Contract
(c) wagering Agreement.(d) Voidable Contract.
104.Supreme the time fixed for performance of the contract has expired
but the time is not essential, what is the remedy of the promise in
the circumstances?
(a) Can rescind the contract.
(b) To claim compensation.
(c) No remedy available.
(d) Can't be determined.
105.A …….. agreement is one, which is enforceable at the option of one party.
(a) Voidable (b) Void
(c) Valid (d) Illegal
106.Agreement-the meaning of which is uncertain is ……..
(a) Valid. (b) Void.
(c) Voidable. (d) Illegal.
107.In case of illegal agreements, the collateral agreements are…..
(a) Voidable (b) Void
(c) Valid (d) Can't be said.
108.……. Consideration is no consideration in England.
(a) Past. (b) Present
(c) Future (d) Past and Present
109.Consideration must move at the desire of the …..
(a) Promisor
(b) Promisee.
(c) Any Person
(d) Promisee of promissory or any other person
110.There can be a stranger to a……
(a) Contract (b) Consideration
(c) Agreement (d) Promise
111.A minor is liable for the …… supplied to him.
(a) Necessaries. (b) Luxuries
(c) Necessities (d) All the things.
112.When the consent of a party is obtained by fraud, the contract is…..
(a) Valid (b) Void
(c) Illegal (d) Voidable
113.An agreement the object or consideration of which is unlawful, is……
(a) Valid (b) Void
(c) Voidable (d) Can't be said.
114.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) Valid. (b) Void.
(c) Voidable (d) Illegal
115.Implied contract, even if not in writing or express word, is
perfectly…. If other conditions are satisfied.
(a) Void (b) Void
(c) Voidable (d) Illegal
116.Threat to commit suicide amounts to
1.Coercion
2.Offence under the Indian Penal Code
3.Undue Influence
4.Fraud
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
117.Which of the following the covered under the heads Agreements Opposed to
1.Trading with enemy
2.Trafficking in Public Offices
3.Marriage Brokerage Contracts
4.Contracts to do impossible acts
(a) 1, 2, 3 (b) 2, 3, 4
(c) 1, 2, 4 (d) 1, 2, 3, 4
118.The consideration of an agreement is considered unlawful, if if is
1.Forbidden by law
2.Fraudulent
3.Immoral
4.Very expensive
(a) 1, 2, 3 (b) 2, 3, 4
(c) 1, 2, 4 (d) 1, 2, 3, 4
119.Contract caused by which of the following is voidable:
1.Fraud
2.Mis-representation
3.Coercion
4.Bilateral Mistake
(a) 1, 2, 3 (b) 2, 3, 4
(c) 1, 2, 4 (d) 1, 2, 3, 4
120.Who among the following is not disqualified by law to enter in to contract?
1.A major person.
2.A lunatic.
3.Insolvent person.
4.Diplomatic staff of foreign stats.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
121.Which the following is true with respect to minor entering a contract?
1.An agreement with or by a minor is void ab initio.
2.A minor can be a beneficiary of a contract.
3.The contracts involving a minor as a beneficiary may be enforced at
the option of the third party.
4.A minor can ratify a contract on attaining majority.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
122.Which of the following is/are not competent to enter into a contract?
1.A person of the age of majority.
2.A minor.
3.A person who is not capable of understanding the contract at the
time of its making
4.A lunatic during lucid intervals (period of soundness).
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
123.Which of the following statements is true?
1.Even if a proposal is not accepted properly it becomes a valid contract.
2.The agreements which are against the public policy can be enforced
if the parties are willing to contract.
3.For breach of contract a party can claim compensation for loss or damage.
4.Two are more persons are said to consent when they agree upon the
same thing in the same sense.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
124.Which of the following is/are false?
1.Consideration must be real.
2.Consideration can be inadequate.
3.A promise to do something which one is already bound to do by law,
will be treated as good consideration.
4.Consideration must be adequate.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
125.Which of the following is/are the essential elements of a valid offer?
1.Offeror must have an intention to be bound by his offer.
2.Offer must be made to a specific person/party and not to public at large.
3.Must be definite.
4.Offer can be vague.
(a) 1 & 3 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
126.Which of the following agreements is/are void?
1.Agreement in restraint of legal proceedings.
2.Agreement to stifle prosecution.
3.Agreement by an outgoing partner with his partners not to carry on
any business within a specified period or within specified local
limits.
4.Contingent Contracts.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
127.Which of the following offers do not constitute a valid offer?
1.An auctioneer displays a T.V. set before a gathering in an auction sale.
2.Ram who is in possession of three cars purchased in different years
says 'I will sell you a car'
3.A says to B, "Will you purchase my motor cycle for Rs. 20,000"?
4.Ram communicates to Shyam that he will sell his car for Rs. 1,50,000.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
128.Which of the following agreements are void?
1.Agreements made under the unilateral mistake of fact.
2.Agreements made under the bilateral mistake of fact.
3.Agreements the consideration of which is unlawful.
4.Contingent agreement.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
129.Which of the following is a requirement for misrepresentation to exist?
1.Misrepresentation should relate to a material fact.
2.The person making a misrepresentation should believe it to be true.
3.It must be made with an intention to deceive the other party.
4.The person making a misrepresentation should not believe it to be true.
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
130.A contracts with B to buy a necklace, believing it is made of
pears whereas in fact it is made of imitation pearls of no value. B
knows that A is mistaken and takes no steps to correct the error. Now
A wants to cancel the contract on the basis of fraud. Which of the
following statement is correct?
(a) A can cancel the contract alleging fraud.
(b) A cannot cancel the contract.
(c) A can cancel the contract alleging undue influence.
(d) A can claim damages.
131.Mr. J invited all his close friends for a dinner on the occasion
of the successful completion of his research. He wanted to take good
care of his friends and accordingly be arranged a very lavish dinner
in a star hotel. On the day, to his shock and surprise the friends
could not turn up to the dinner, consequently all the dishes and money
were wasted. He was terribly disappointed. In the above situation
which of the following remedies is/are available to Mr. J for the loss
caused to him?
(a)Mr. J can file a suit against his friends for not attending to the dinner.
(b)Mr. J cannot have any remedy.
(c)Mr. J can recover the expenses incurred for the arrangements from
his friends.
(d)Mr. J can file a suit for the special damages.
132.G paid Rs. 1,00,000 to H to influence the head of the Government
Organization in order to provide him some employment. On his failure
to provide the job, G sued H for recovery of the amount. Which of the
following is correct?
(a) The contract is valid and G can recover the amount from H.
(b) The contract is void as it is opposed to public policy and G cannot recover.
(c) G can recover the amount with interest.
(d) G can recover the amount of Rs. 1,00,000 and damages.
133.M a popular singer, enters into a contract with the manager of a
theatre, to sing at the theatre two evenings a week for the next two
months and the manager of the theatre agrees to pay him at the rate of
Rs. 1000 for each performance. From the sixth evening onwards, M
absents himself from the theatre. In this context, which of the
following remedies is/are available to the manager of the theatre
against M?
(a)He is at liberty to put an end to the contract.
(b)He cannot put an end to the contract.
(c)He is entitled to compensation for the damages sustained by him
through M on his failure to sing from the sixth evening onwards.
(d)Both (a) and (c) above.
134.Ram, Rohit and Kiran jointly borrowed Rs. 2,00,000 from Rahim by
executing a promissory note. Rohit and Kiran are not traceable. Rahim
wants to recover the entire amount from Ram. Ram objected this move by
saying he is liable to pay 1/3 of the debt only. Which of the
following statement(s) is correct?
(a) Ramim can recover the entire amount from Ram.
(b) Rahim can only recover 1/3 of Rs. 2,00,000 from Ram.
(c) Rahim cannot recover any amount from Ram.
(d) The promissory note is not executable against Ram as Rohit and
Kiran are not traceable.
135.At the time of marriage between A and B, A's father promised to
B's parents that he will pay five thousand rupees per month to B after
her marriage with his son. On his failure to pay the amount B wants to
sue A's father for the amount promised by him at the time of her
marriage with A. Which of the following statements(s) is correct?
(a) B cannot sue A's father as the contract is void for lack of consideration.
(b) B cannot sue A's father under the doctrine of privity of contracts.
(c) B can sue A's father for breach of contract.
(d) B cannot sue A's father as the contracts made at the time of
marriage are not enforceable by law.
136.V purchased a used computer from P thinking it as a computer
imported from USA, P failed to disclose the fact to V. On knowing the
fact V wants to repudiate the contract. Which of the following
statement(s) is correct?
(a) V can repudiate the contract on the ground of fraud.
(b) V can repudiate the contract on the ground of misrepresentation.
(c) V cannot repudiate the contract.
(d) V can repudiate the contract on the ground of mistake.
137.An auctioneer in Mumbai advertised in a newspaper that a sale of
office furniture would be held on December 23, 2003. A broker came
from Hyderabad to attend the auction, but all the furniture was
withdrawn. The broker from Hyderabad sued the auctioneer for loss of
his time and expenses. Which of the following statement(s) is correct?
(a) The broker can get damages from the auctioneer for loss of his
time and expenses.
(b) The broker will not get damages from the auctioneer for loss of
his time and expenses.
(c) An invitation to make offer is a valid offer.
(d) A declaration of intention by a person will give right of action to another.
138.Ankit, aged 17 years, falsely representing himself to be of 22
years, enters into an agreement to sell his property to Praveen and
receives from Praveen a sum of Rs.10,00,000 in advance. Out of this
sum, Ankit buys an imported car worth Rs. 5,50,000 and spends the rest
on a pleasure trip to France. After Ankit attained majority, Praveen
sues him for the conveyance of the property or, in the alternative,
for the refund of Rs. 10,00,000 and damages. The agreement between
Ankit and Praveen is:
(a) Void ab initio as it is a contract with a minor.
(b) Voidable at the if Ankit ratifies the agreement on attainting the
age of majority.
(c) Would be valid if Ankit ratifies the agreement on attainting the
age of majority
(d) Valid as Ankit has sold his own property for personal use.
139.Match the following:
(i) Void Contract
(ii) Voidable Contract
(iii) Illegal Contract
(iv) Valid Contract
(a)In case of this collateral agreements are void.
(b) Not enforceable in a court of law.
(c) An agreement enforceable by law at the option of one or more of
the parties thereon but not at the option of the other or others
(d) Enforceable at the option of both the parties.
140.Match the following:
(i) Executed Contract
(ii) Executory Contract
(iii) Unilateral Contract
(iv)Bilateral Contract
(a) Contract in which only one party has to perform his promise.
(b) Consideration for the promise in a contract a already given
(c) Promise in a contract is outstanding on part of both the parties.
(d) Reciprocal promises are to be performed in future.
141.Match the following:
(i) General Offer
(ii) Special Offer
(iii) Cross Offers
(iv)Continuing Offer
(a)Exchanging identical offers by two parties in ignorance
(b) Offer made to the public in general.
(c) Offer made to a definite person.
(d) Offer made to a definite person.
142.Match the following:
(i) Coercion
(ii) Undue Influence
(iii) Fraud
(iv) Misrepresentation
(a)Involves Moral Pressure.
(b) Person making false representation does not believe it to be true.
(c) Involves Physical force.
(d)The person making false representation believes it to be true.
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