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Multiple Choice Questions


The Basics of the Indian Contract Act, 1872
1. The Indian Contract Act, 1872 is dividend c) Parties
into….. Chapters. d) Custom or Usage
a) 3 8. In India, the express provisions of the
b) 8 Contract Act applies to
c) 10 a) Hindus
d) 12 b) Mohammedan
2. The Law of Contract is noting but c) Business man
a) A child of commercial dealing d) All of the above
b) A child of religion 9. Who said “Contract is an agreement
c) A child of day to day politics creating and defining obligations between
d) A child of economics parties?”
3. The Contract Act came into force a) Peter Drucker
a) From 1 September, 1872 but with b) Salmond
retrospective effect c) Austin
b) Before 1 September, 1872 d) Drucker
c) From 1 September, 1872 10. Agreement is defined in Section……… of
d) After 1 September, 1872 the Indian Contract Act, 1872.
4. The Contract Act applies to a) 2(c)
a) Contracts made before 1 September, b) 2(e)
1872 c) 2(g)
b) Contracts made on 1 September, 1868 d) 2(i)
c) Contracts made before 1 September, 11. Every promise and every set of promise
1872 and to be enforced after 1 forming the consideration for each other is
September, 1872 a/an
d) Contracts made on and after 1 a) Contract
September, 1872 b) Agreement
5. An Indian mercantile law is based upon c) Offer
a) Indian culture d) Acceptance
b) British culture 12. Where there is no express provision in
c) England law Contract Act, the following prevails and
d) American law applied for deciding the cases
6. An agreement consists of reciprocal a) The provisions of any law of the land
promises between at least b) The usage of the trade
a) Four parties c) The provisions of personal law
b) Six parties d) Any of the above if not inconsistent
c) Three parties with the provisions of the Contract Act
d) Two parties 13. Who said, “Every Agreement and Promise
7. Contractual rights and duties are created enforceable at law is a contract?
by a) Austin
a) State b) Benjamin
b) Statute c) Pollock
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d) Balfour a) Rights in Personam


14. The provisions of Indian Contract Act b) Rights is Rem
override c) Constitutional Right
a) The provisions of Hindu law d) There is no right at all
b) The provisions of Mohammedan law 21. A contract creates
c) Usage or customs of trade a) Rights is Personam
d) All of the above b) Rights in Rem
15. A promises to deliver his watch to B and, c) No obligations
in return, B promises to pay a sum of Rs d) Only obligations and no rights
2,000. This is a/an 22. Valid Contracts
a) Agreement a) Are made by free consent
b) Proposal b) Are made by competent party
c) Acceptance c) Have lawful consideration and lawful
d) Offer object
16. Contract is defined as agreement d) All of the above
enforceable by law, vide Section…… of 23. A lends Rs 10 lakh to B for a year, After
the Indian Contract Act. one year A’s right to recover the money
a) 2(e) from B is a
b) 2(f) a) Right in rem
c) 2(h) b) Right in personam
d) 2(i) c) Moral right
17. A contract or an obligation to perform a d) Civil right
promise could arise by 24. What comes first in a valid contract is
a) Agreement and Contract a) Enforceability
b) Promissory Estoppel b) Money
c) Standard form of contracts by promise c) Force
d) All of the above d) None of the above
18. A sells his car to B.A has a right to recover 25. A has bought a house for Rs 50,000.
the price of the car from B. This right is a Which of the following right is available to
a) Right is rem A after the purchase?
b) Right is personam a) He has a right against the seller to have
c) Right in rem as well as right in quiet possession of the house and enjoy
personam in it
d) Moral right b) He has a right against the whole world
19. A owns a residential flat. He is entitled to to have quiet possession of the house
quiet possession and enjoyment of his and enjoy in it
property. This is called c) He has moral right over the house
a) Rights in Personam d) He has a right to live in the house but
b) Rights is Rem cannot sell
c) Moral Right 26. An agreement not enforceable by law is
d) There is no right at all said to be void under section…. Of the
20. A owes Rs 1 lakh to B. B is entitled to Indian Contract Act.
recover this amount from A. This is called a) 2 (a)
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b) 2 (b) b) B has no remedy against A


c) 2 (f) c) B can accept a lower pocket money also
d) 2 (g) d) B has to give Rs. 5,000 to his father
27. An agreement to commit a tort is
a) Void 33. A and B of Srinagar entered into a
b) Voidable contract on 1st September, 2006 as per
c) Valid the provisions of the Indian Contract Act.
d) Unenforceable Can they enforce the contract?
28. Agreement to murder a person a) Yes, because they made the contract
a) Cannot be enforceable by law as per the provisions of Indian
b) Is valid in law Contract Act
c) In invalid for want of consideration b) No, because Srinagar is not a part of
d) Has no consensus ad idem Indian
29. Agreements that do not give rise to c) No, because the Act does not extend to
contractual obligations are not contracts. the State of Jammu and Kashmir
a) True d) None of the above
b) Partly True 34. A promised to pay his son B a sum of Rs
c) False 1 lakh if B passed CA exams in the first
d) None of the above attempt. B passed the exam in the first
30. A invites B for his son’s wedding. B attempt, but A failed to pay the amount as
accepts the invitation. In this case, there is promised. B files a sit for recovery of the
an agreement but no contract, since amount. State whether B can recover the
a) There is no consideration amount under the Indian Contract Act,
b) There is no intention to create legal 1972.
relationship a) B can sue A
c) There is no written document b) B has to pay Rs 1 Lakh to A
d) There is no formal acceptance of the c) B has no remedy against A
offer d) B has to write the exam again, to claim
31. A invites B for coffee in coffe-day the reward
restaurant and B accepts the invitation. 35. A contract creates
On the appointed date, B goes there but A a) Rights and obligations of the parties to it
is not found. In this case b) Obligations of the parties to it
a) B has no remedy against A c) Mutual understanding between the
b) B has to wait for another invitation from parties to it
A d) Mutual lawful rights and obligations of
c) B has the right to sue A for not honoring the parties to it.
his words 36. In agreements of purely domestic nature,
d) A has to invite B again, to perform the the intention of the parties to create legal
promise. relationship is
32. A promises to give Rs. 5,000 per month a) To be proved to the satisfaction of the
pocket money to his son B. If A does not Court
give the pocket money b) Presumed to exist
a) B can sue his father c) Required to the extent of consideration
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d) Not relevant at all a) True


37. An agreement is valid b) False
a) Which creates legal and social c) Parlty True
obligations of the parties d) Parlty False
b) Which creates rights of a party 44. A contract needs to be written, registered
c) Which is written on a piece of paper and and signed by parties and witnessed
signed by the parties a) If any party wishes so
d) Which creates legally binding right and b) If the Contract Act directs so
obligations of the parties to it. c) If the law governing the contract
38. Voidable contract is one requires so
a) Which is lawful d) If the consideration is of large amount
b) Which is invalid 45. A and B contract to marry each other.
c) Which is valid as long as it is not Before the time for the marriage, A goes
avoided by the party entitled to do so and mad. The contract becomes
d) Which is unlawful a) Void
39. When the contract is perfectly valid but b) Illegal
cannot be enforced because of certain c) Valid
technical defects. This is called d) Voidable
a) Unilateral Contract 46. ……………. Is forbidden by law. The
b) Bilateral Contract Court will not enforce such a contract.
c) Unenforceable Contract a) Valid Contract
d) Void Contract b) Illegal agreement
40. ………….. is without any legal effect and c) Voidable Contract
cannot be enforced in a Court of Law. d) Unenforceable Contract
a) Valid Contract 47. A Contracts with B to beat his business
b) Void Contract competitor. This is an example of
c) Voidable Contract a) Valid Contract
d) Unenforceable Contract b) Illegal agreement
41. According to provisions of Indian Contract c) Voidable Contract
Act, 1872 void agreement and void d) Unenforceable Contract
contract is the same. 48. …………. Is made by words spoken.
a) True a) Express Contract
b) False b) Implied Contract
c) Parlty True c) Tacit Contract
d) Parlty False d) Unlawful Contract
42. The legal effect of void agreement and 49. ……….. is made by words written.
void contract is the same. a) Express Contract
a) True b) Implied Contract
b) False c) Tacit Contract
c) Parlty True d) Unlawful Contract
d) Parlty False 50. A appoints B as his agent, by way of a
43. A void agreement is void ab intio but a void power of attorney. This is an example of
contract is not void ab intio. a) Express Contract
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b) Implied Contract c) Unilateral Contract


c) Tacit Contract d) Bilateral Contract
d) Unlawful Contract 57. A agrees to sell his DVD player to B
51. ………… Implies a contract though the promising to deliver it on the date of
parties never expressed their intention to payment. B promises to pay the amounts
enter into a contract. within one month. This is an example of
a) Express Contract a) Void Contract
b) Implied Contract b) Illegal agreement
c) Tacit Contract c) Unilateral Contract
d) Unlawful Contract d) Bilateral Contract
52. Where a contract has to be inferred from 58. Where a particular type of contract is
the conduct of parties, it is called required by law to be in writing and
a) Express Contract registered, it must comply with necessary
b) Implied Contract formalities as to writing, registration and
c) Tacit Contract attestation. Otherwise, such a contract is
d) Unlawful Contract a) Void Contract
53. Drawing cash form ATM, sale by fall of b) Illegal agreement
hammer at an auction sale, etc., are c) Unilateral Contract
example of d) Bilateral Contract
a) Express Contract 59. All illegal agreement are void; but all void
b) Implied Contract agreements are not illegal.
c) Tacit Contract a) True
d) Unlawful Contract b) Partly True
54. ……………. Is a one-sided contract in c) False
which only one party has to perform his d) None of the above
promise or obligation. 60. An offer and its acceptance is the basic
a) Void Contract requirement of an agreement and as per
b) Illegal agreement this requirement, an offer by one party
c) Unilateral Contract a) Should be made to the other who is
d) Bilateral Contract related to him
55. An agreement is b) May also be made to himself
a) Enforceable by law if it meets the c) Should be made to another who may or
requirements of the law of the land may not be related to him
b) Enforceable by law if any one party want d) Should be made to another before the
it Registrar
c) Enforceable against the law 61. According to enforceability, the contracts
d) Enforceable by law if it is made by may be classified as
competent parties a) Valid Contracts
56. Where the obligation in a contract is out- b) Void Contracts
standing on the part of both parties, it is c) Voidable contracts
called d) All of the above
a) Void Contract 62. According to Enghlish Law, the contracts
b) Illegal agreement may be classified as
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a) Formal Contract a) Executed contract


b) Simple Contract b) Executory contract
c) Contract under seal c) Unilateral contract
d) All of the above d) None of the above
63. In social agreements, the usual 69. A contract entered on 31st October, 1872
presumption is is governed by the Indian Contract Act,
a) That parties do not intend to create 1872
social relations a) If it was entered into India
b) That parties intend to perform them b) If its performance was after 31st
c) That parties do not intend to make legal October 1872
and social relations c) If it was not performed at all
d) That the parties do not intend to create d) Any of the above
legal relations between them 70. Contracts classified on the basis of
64. A promised to marry B. Later on B died. performance are
This contract of marriage a) Executed Contracts
a) Becomes void b) Executory Contracts
b) Is void from very beginning c) Partly Executed or Partly Executory
c) Is valid Contracts
d) Is illegal now d) All of the above
65. An implied contract is the one which 71. Express contract means a contract made
comes into existence on account of by
a) Conduct of the parties a) Words either spoken or written
b) Non-availability of a paper for writing b) Documents
c) Inability of the parties to write or speak c) Both words and documents
d) Directions given by a court d) All of the above
66. A, a tradesman, left certain goods at B’s
house by mistake. B treated and used the Offer and Acceptance of the Offer
goods as his own. In this case, B is 72. The term “offer” has been defined in ….
a) Not liable to pay for the goods a) Section 2(a)
b) Liable to be prosecuted under law b) Section 2 (b)
c) Liable to pay for the goods c) Section 2 (C)
d) Bound to inform police d) Section (d)
67. A contract in which, under the terms of a 73. When a person signifies to another his
contract, nothing remains to be done by willingness to do or to abstain from do-
either party is known as ing anything, with a view to obtaining the
a) Executed contract assent of that other to such act or
b) Executory contract abstinence, he is said to
c) Unilateral contract a) Enter into a contract
d) None of the above b) Make a proposal
68. A contract in which, under the terms of a c) Entered into agreement
contract, one or both the parties have still d) Enter into contract
to perform their obligations in future, is 74. An implied offer means an offer made
known as a. By spoken words
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b. By SMS 82. B makes to memorize a proposal to his


c. By body language par-rot and sends him to A to recite the
d. By both (a) and (c) proposal. The parrot does so. The
75. A proposal may consist of a promise for proposal is
a) Doing an act a. Valid
b) Abstaining from doing an act b. Void
c) Either (a) or (b) c. Unlawful
d) Returning the consideration d. Illegal
76. An offer may be made 83. A bid at an auction sale is
a. By words a. An imlied offer
b. By conduct b. An express offer
c. Either (a) or (b) c. An invitation to offer
d. Neither (a) nor (b) d. An invitation to come
77. Offer can be accepted by 84. Forbearance of party from doing some-
a) Offeror thing also constitutes a valid offer.
b) Offeree a) True
c) Promisor b) Party True
d) Either (a) or (b) c) False
78. An acceptance of offer may be made d) None of the above
a) By words 85. An offer which is allowed to remain
b) By conduct open, for acceptance over a period of
c) Either (a) or (b) time is known as a/ an
d) Neither (a) nor (b) a. Standing Offer
79. A specific offer is the one which is made b. Specific Offer
a. By A to B c. Express offer
b. By a father to his only son for sale of d. Implied offer
his factory to him 86. An offer made to a specific person is
c. By a father of a girl, to the father of known as
the only son for her marriage a. Standing Offer
d. By all of the above b. Specific offer
80. If a says to b “I offer to sell may car to c. Special offer
you for Rs. 2 Lakhs and B accepts the d. Separate Offer
offer by saying clearly “I accept your 87. An offer made to group of persons is
offer”. It is an known as
a) Implied offer a) Standing Offer
b) Express offer b) Specific offer
c) General offer c) Special offer
d) Counter offer d) Separate Offer
81. A offers to sell his car on internet, it is 88. ……. Can be accepted only by the
a) Express offer person or group to whom the offer is
b) Implied offer made
c) Particular offer a. Standing Offer
d) No offer b. Specific offer
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c. Special offer a) True


d. Separate Offer b) Partly True
89. A advertises in paper that any person c) False
who found his lost dog can get a reward d) None of the above
of Rs. 5000. Any person who finds the 95. Terms of an offer must be
dog can claim the reward. This is a case a. Ambiguous
of b. Uncertain
a. General offer c. Definite
b. Specific offer d. Vague
c. Implied offer 96. An offer may be
d. Invalid offer a) conditional
90. To make a valid General offer, it is b) Unconditional
necessary for the offeree to be known to c) Both (a) and (b)
the Offeror at the time of Making the d) Either (a) or (b)
offer. 97. An offer may be
a. True a) Expressed
b. Party true b) Implied
c. False c) Both (a) and (b)
d. None of the above d) Either (a) or (b)
91. In a Specific offer, it is necessary for the 98. A offers B to sell his house for Rs. 15
offeree to be known to the Offerer at the lakh and directs him to send his
time of Making the offer. acceptance only by e-mail B sends a
a) True letter of acceptance by post. This is
b) Party true a) valid acceptance
c) False b) invalid acceptance
d) None of the above c) valid acceptance if a does not reject
92. Communication of a proposal is d) no acceptance at all
complete when it comes to the 99. A offered to take a house on lease for a
knowledge of period of 3 years if the house was hand-
a. The person to whom it is made solely decorated. Here, there is no offer
b. The proposer since
c. Either (a) or (b) a. there is no legal obligation
d. The central government b. there is no communication of offer
93. A proposes by letter, to sell his horse to c. The terms of offer are too vague
b at rs 10,000. Communication of the d. The offer is conditional
proposal is complete when 100. Offer should not contain a term, the
a) A posts the letter non compliance of which would amount
b) B receives the letter to acceptance.
c) B acknowledges to a that he has a) True
received the letter b) Party True
d) Either (b) or ( c), whichever is earlier c) False
94. The terms of an offer must be intended d) None of the above
to create legal relations.
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101. Which of the following conditions is c) An express contract


not necessary for a valid offer? d) No contract
a) Intention to create legal relation 108. Which of the following results in an
b) Unconditional terms offer ?
c) Certainty of terms a) A declaration of intention
d) Communication to the person to b) An invitation to offer
whom it is made c) An advertisement offering reward to
102. Which of the following conditions is anyone who finds the lost dog of the
not necessary for a valid offer? advertiser
a) intention to obtain consent of the d) An offer made in a joke
offeree 109. Which of the following is an invitation
b) Communication to the person to to offer?
whom it is made a) A tender to supply goods at a certain
c) Intention to create legal obligation time
d) Expressed in written form b) A request for a loan
103. When a person invites the other paty c) Bids in an auction sale
to make an offer he is said to make a/an d) A catalogue of goods for sale
a) Proposal 110. Price Lists and Catalogues,
b) Offer Advertisements in news papers, and
c) Invitation to offer enquiries from customers are
d) Acceptance a) Offers
104. ……. Is expression of initial intention. b) Invitations to offer
a) Invitation to offer c) Acceptances
b) Offer d) Cross-offers
c) Proposal 111. Goods displayed in a shop with a
d) Acceptance price label is
105. …… is expression of final will ingness a) An offer
to perform a promise. b) An Invitation to offer
a) Invitation to offer c) A Counter offer
b) Offer d) A contra-offer
c) Bid 112. A notice inviting tender is an offer.
d) Acceptance a) True
106. Application filled in by a prospective b) An Invitation to Offer
applicant to the Company is an example c) A Counter – Offer
of d) A Contra – Offer
a) Invitation to offer 113. ‘A’ invites tenders for the supply of 10
b) Offer quintals of cotton. ‘B’, ‘C’ and ‘D’ submit
c) Bid their tenders. A contract is concluded
d) Acceptance when
107. Statement of lowest price at which the a) ‘A’ invites tenders
seller would sell his goods constitutes b) ‘A’ receives tenders of B,C and D
a) A valid contract c) ‘A’ accepts the tender of any of the
b) A implied contract parties
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d) There is no contract at all a) Non Acceptance of Condition


114. There is a Counter- offer when b) Acceptance not in the prescribed
a. The offeree gives conditional mode
acceptance c) Change in law or circumstances
b. The Offeree makes fresh offer instead d) All of the above
of accepting original offer. 120. An offer comes to an end after the
c. The offeree makes some query expiry of
d. The offeree accepts it a) Time stipulated for acceptance
115. When the offers made by two persons b) A reasonable time
to each other containing similar terms of c) Either (a) or (b)
bargain cross each other in post, they d) Nether (a) nor (b)
are known as 121. An offer lapses to an end when the
a) Cross Offers Offeree
b) implied Offers a) Fails to fulfill a condition precedent to
c) Direct Offers acceptance
d) Express offers b) Does not accept the condition
116. A offers to sell his car for Rs. 50,000 c) Either (a) or (b)
to B.B says he would buy it for Rs. d) Neither (a) nor (b)
40,000. This is a case of 122. A proposal is revoked by the death of
a) Counter offers the Proposer, if the fact of his death
b) Implied offers comes to the Knowledge of the Acceptor
c) Direct offers a. Before acceptance
d) Express offers b. After acceptance
117. A sends a letter to B Proposing to sell c. During acceptance
his Land. B Sends his acceptance by d. Any of the above
post. A can revoke the offer at any time 123. Death of offeree before acceptance
before B posts his letter of acceptance, terminates the offer.
but not afterwards. a) True
a) True b) Partly True
b) Partly True c) False
c) False d) None of the above
d) None of the above 124. A applied for 1000 shares in a
118. In which of the following Company on 1st May. The Company
circumstances, does the offer come to allotted shares on 1st November of that
an end ? year A refused the Shares. Is A’s action
a) Lapse of time valid ?
b) Counteroffer a) Yes , Shares Cannot be allotted oon
c) Death of offerer or offeree before the faith of letter Written by A
acceptance b) Yes , Shares Cannot be allotted in the
d) All of the above second half of a calendar year
119. In which of the following c) Yes , Offer lapsed as it was not
Circumstances. Does the offer come to accepted within a reasonable time
an end ?
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d) No , A has to accept and pay for the c) may acquire the knowledge of the
shares of revocation of offer have offer after the performance of the
been condition amounting to acceptance
125. An offer can be accepted by d) should not accept at all
a) Notice of acceptance 132. acceptance can precede an offer
b) Performance of condition specified in a) true
the offer b) partly True
c) Acceptance of consideration for a c) false
reciprocal promise d) none of the above
d) All of the above 133. A offered a reward to anyone who
126. Acceptance may be has returned his lost dog. B brought the
a) Express dog to A without having heard of the
b) Implied offer which of the following statements is
c) Neither (a) nor (b) correct ?
d) Either (a) or (b) a) B is entitled to the reward
127. Implied offers can be proved only by b) B was not entitled to the reward
a. Words c) A has to find the dog himself
b. Conduct d) No reword can be given for return of
c. Circumstantial evidence lost dog
d. Prima facie evidence 134. An acceptance is valid
128. An acceptance containing additions, a) When offere adds his conditions with
limitations or other modifications shall acceptance
amount to b) When offeree accepts all the
a) Rejection of the offer conditions of the offer
b) A counter offer c) When it is not against the interest of
c) A valid acceptance any person
d) Both (a)& (b) d) When acceptance is caused by
129. specific offer can be accepted by coercion
a) any person 135. Acceptance to an offer may be given
b) any friend of offeror by
c) only the person to whom it is made a) Any person
d) any friend of offeree b) Competent person
130. a general offer can be accepted by c) Authorized person
a) sending a communication of d) Both by (b) and (c)
acceptance 136. In order to convert a proposal into a
b) mental acceptance of offer promise the acceptance must be
c) complying with the conditions of offer a) Absolute
d) making a counter offer b) Unqualified
131. in cases of general offer, for a valid c) Express
contract, the Acceptor d) All of the above
a) must have the knowledge of the offer 137. Acceptance to an offer may be iven
b) need not have the knowledge of the by
offer a) Adding conditions
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b) Accepting conditions of the offer d) An unenforceable contract


c) Accepting consideration sent by the 143. Communication of acceptance is
offer complete as against the Proposer
d) Both (b) and(c) a) Only when it comes to the Knowledge
138. Which of the following constitute of the Proposer
invalid acceptance? b) Only when the acceptance is
a) Mental acceptance without communicated to the Proposer
communicating to Proposer c) Only when it is put in the course of
b) Failure to respond to the Proposer transmission to him so as to be out
c) Silence on the part of the Offeree of power of the Acceptor
d) All of the above d) None of the above
139. An offer was sent by post. The 144. Communication of acceptance is
Acceptor wrote “Accepted” on the letter, complete as against the Acceptor, only
put it in his drawer and forgot about it. a) When it is put in the course
The transactions is transmission
a) A valid contract b) When it comes to the knowledge of
b) Not an agreement as the acceptance the Proposer
was never communicated to the c) When it is communicated to the
Proposer Acceptor that the acceptance has
c) A voidable Contract reached the Proposer
d) A void contract d) All of the above
140. A send a letter of acceptance to an 145. Where a letter of acceptance sent by
offer made by B. letter is stll in the post is lost in transit there is
transit of post. The part bound by he a) No contract as the acceptance has
acceptance s not come to the knowledge of the
a) A offeror
b) B b) No contract as the acceptance has
c) Both A and B not been communicated to the
d) None offeror
141. When no mode is prescribed by the c) A contract as the letter of acceptance
of feer for the acceptance of his offer, is put in the course of transmission
such acceptance shall be made. d) All of the above
a) By telephone 146. Which of the following is incorrect?
b) As desired by the offeree a) A valid contract results from identical
c) In some usual and reasonable cross offers
manner b) Communication of an offer is
d) None of the above complete when the letter of offer is
142. An acceptance is not according to the posted though it has not reached
mode prescribed, but the offeror decides the person to whom the offer is
to keep quiet. In such a case there is made
a) A contract c) An offer and invitation to the offer are
b) No contract the same
c) A voidable Contract d) All of the above
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147. Even if the letter is lost in transit c) The place where letter of acceptance
acceptance is still valid provided that the is posted
Acceptor has d) The place where offeror resides
a) Properly addressed is 153. If an acceptance on phone is owned
b) Affixed correct value of postage by noise and is not heard by the
stamps proposer
c) Either (a) and (b) a) A valid contract is concluded
d) Both (a) and (b) b) There is a voidable contract
148. In case of special conditions in a c) The contract is void
contract, it should be communicated to d) No contract is concluded
the offeree 154. When two persons agree to enter into
a) At any time an agreement in the future, there is
b) Before entering into contract or at the between them.
time of Making offer a) A valid contract
c) After contract is made b) No contract
d) Both (a) and (b) c) An agreement
149. Conditions on the reverse of a train d) A consensus
ticket, bill issued by service providers, 155. The person making the offer is known
etc, are examples of as ‘ offeror’ or promisor’ and to whom it
a) Normal business policy is made is known as
b) Space saving measure a) Acceptor
c) Special conditions b) Acceptor for honour
d) General rules of contract Law c) Offeree or promise
150. Where the acceptance is given on d) Contracting party
telephone or fax, the place of contract is 156. The mode of the revocation of
a) The place from where the telephone proposal other than by communication is
call is booked / are
b) The place where the acceptance is a) Verbal notice
heard or received b) Lapse of time
c) The place from where the offer was c) Death or insanity of the offeror
made d) Both (b) and (c) above
d) The place where the offeror resides. 157. Which of the following statement is
151. An acceptance on telephone should incorrect ?
be a) An offer may be made to the world at
a) Heard by the offeror large
b) Audible to the offeror b) An offer may be positive or negative
c) Understood by the offeror c) An offer may be expressed or limplied
d) All of the above d) An offer must be made to a specific
152. Where a contract is made by post, person
the place of contract is 158. A general offer made to the public at
a) The place from where the offer is large is valid and binding contract is
made made with person who is having the
b) The place where the offer is received knowledge of the offer
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a) Comes forward and acts accordingly 163. Which of the following is not the mode
b) Acts accordingly and his act is ratified of the lapse of offer ?
by the offeror a) Lapse of time
c) Seeks offeror’s permission to accept b) Case against the offeror
the offer c) Insanity of offeror
d) Informs the public that he is willing to d) Failure to accept condition precedent
accept the offer 164. An acceptance of offer, in ignorance
159. In which of the following cases, the of the fact of death or insanity of the
principle of an offer to public at large offeror, is
was recognized? a) Valid acceptance
a) Balfur vs Balfour b) Not valid
b) Harvey vs Facie c) Illegal acceptance
c) Carlill vs carbolic smoke ball co d) Fraudulent acceptance
d) Both (a) and (b) 165. Which of the following is correct ?
160. On the acceptance of an offer by the a) Acceptance can be made even
offeree, which of the following persons without the knowledge of the offer
becomes legally bound by the contract ? b) An agreement with intention to create
a) Only the acceptor as he has accepted legal liability is not enforceable in law
the offer c) If the offeree does not accept the
b) Only the offeror, as his terms are offer according to the mode
accepted prescribed by the offeror, the offer
c) Both the acceptor and the offeror does not lapse automatically
d) None of the above d) Communication of offer is complete
161. Which of the following is the legal rule when the letter of offer is posted
of a valid acceptance ? 166. A proposes, by letter, to sell a house
a) An acceptance must be given within to B for Rs 10,000. The communication
prescribed or reasonable time of the proposal is complete
b) An acceptance must be given before a) When B receives the letter
the lapse of offer b) When A dispatches the letter
c) An acceptance may be expressed or c) When A sign the letter
implied d) When B knows about the letter
d) All of the above 167. B accepts A’s proposal by a letter
162. Which of the following statement is sent by post. The communication of the
incorrect? acceptance is complete as against A
a) Death of the propser automatically a) When A receives the letter of
revkes the proposal acceptance
b) Cross offers constitute valid b) When B acknowledges it
agreement c) When it comes to the knowledge of A
c) The acceptor cannot reoke his d) When the letter is posted
acceptance even if the letter of 168. Which of the following is correct ?
acceptance sent by him to the offeror a) Acceptance is to an offer what a
is lost in the transit lighted mach to a train of gun powder
d) All of the above
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b) Two identical cross offers two are not 174. Which of the following is correct ?
independent and separate offers a) An offer may be made to a particular
c) A counter offer is conditional individual
acceptance b) An offer may be made to the public of
d) All of the above statements the whole world at large
169. A revokes his proposal to B by c) An offer may be made to a section of
telegram. The revocation is complete as a public at large
against A d) All of the above
a) When the telegram is dispatched 175. Which of the following is correct ?
b) When B receives the telegram a) Acceptance must precede an offer
c) When B confirms b) Acceptance may be given in any
d) When A receives confirmation from B manner unless the offeror insists
170. A revokes his proposal by telegram to acceptance in the prescribed manner
B. it is complete as against B c) Silence always amounts to
a) When the telegram is dispatched by acceptance
A d) Acceptance may be valid even if the
b) When B confirms it offeree adds certain conditions
c) When B receives it 176. Which of the following is incorrect ?
d) When A dispatches the telegram a) A rejected offer cannot be accepted
171. B revokes his acceptance by b) Cross offers cannot be constructed as
telegram. B’s revocation is complete as an agreement
against B c) Counter offer constitute valid
a) When the telegram is dispatched acceptance
b) When the proposer receives the d) All of the above
telegram
c) When the proposer confirms Capacity of the Party
d) When B receives the confirmation 177. Capacity to contract means
172. B revokes his acceptance to A by a. The parties are financially sound to
telegram. B’s revocation is complete as make contract
against A b. The parties are physically able to
a) When B dispatches the telegram enter into contract
b) When it reaches him when B confirms c. The parties are legally competent to
it enter into contracts
c) When B confirms it d. All of the above
d) When A notifies it to B 178. Capacity to contract has been defined
173. Which of the following statements is in
correct? a) Section 10
a) A valid contract cannot result from b) Section 11
identical cross offers c) Section 12
b) A proposal when accepted becomes d) Section 25
a promise 179. Competence to contract mans
c) A rejected offer cannot be accepted a) Age of the parties
d) All of the above statements b) Soundness of mind of the parties
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c) Both (a) and (b) 186. Only the official Receiver can enter
d) Intelligence of the parties into contracts on behalf of the insolvent.
180. These two person can enter into a a) True
valid contract b) Partly True
a) Convict c) False
b) Person of sound mind d) None of the above.
c) Divorcee lady 187. A corporation cannot enter into
d) Both (b) and (c) contracts that are
181. These two persons can enter into a a) Ultra vires its Memorandum of
valid contract association
a) One minor and a major person b) Strictly of a personal nature as t is
b) One minor and a person of sound only an artificial person
mind c) Either (a) or (b)
c) Husband and Wife d) Neither (a) nor (b)
d) One major person and an insolvent 188. Minor’s agreement is void but the
person minor can enforce the agreement
182. A convict when undergoing against the other major party if minor is
imprisonment a) A third party in the agreement
a) Is capable of entering into a contract b) Promisor in the agreement
b) Is incapable of entering into a c) A promise in the agreement and he
contract has performed his part of promise
c) Is capable of entering into a contract, under the agreement
if it is permitted by the court d) Relative of M.P
d) Is capable of passing the 189. A minor’s agreement is void. This was
consideration held in the case of
183. A convict can enter into contract a) Mohiri Bibee Vs Dharmadas Ghosh
when b) Salma begam Vs Jan Mohamed Khan
a) He is on bail c) Balfour vs balfour
b) He is released from imprisonment d) Chinnaiya vs Ramaya
c) All of the above 190. On attaining the age of majority, a
d) None of the above Minor’s agreement
184. Peron who is not an indian citizen is a) Is void
known as b) Cannot be ratified
a) alien enemy c) Becomes void
b) Alien friend d) Can be ratified
c) Either (a) or (b) 191. Which of the following statements are
d) Both (a) and (b) correct? A minor cannot
185. Contracts with an alien friend, subject a) Become a Partner
to certain restrictions are b) Be liable even in case of fraudulent
a) Void representation of age
b) Unenforceable c) Ask for specific performance of a
c) Valid contract
d) Invalid d) All of the above
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192. A minor cannot be declared insolvent. c) A principal of his agent


a) True d) All of the above
b) Partly True 198. A minor can
c) False a) Ratify his agreement after attaining
d) None of the above majority
193. Guardian shall …. For breach of b) Be directed by the Court for specific
contract by Minor. performance of the contract
a) be held liable c) Always plead his minority
b) Not be held liable d) Be held liable for cheques issued by
c) Be imprisoned him
d) Not be questioned 199. A contract to take a loan by boy of 17
194. Parents shall ------- for breach of con. years of age from a money lender of 34
Tact by minor. years is
a) Be held liable a) Valid contract
b) Not be held liable b) Void contract
c) Be imprisoned c) Quasi Contract
d) Not be questioned d) Void agreement
195. A , a Minor, entered into a contract for 200. A minor can be held personally liable
borrowing a sum of Rs 40,000 out of a) For chques issued by him
which lender paid him a sum of Rs b) For promises made by him with other
18,000A executed mortgage of property joint promisors
in favour of the lender. The mortagage c) For guarantee given by him
is d) None of the above
a) Valid for any amount 201. A, a Minor draws cheque in favour of
b) Valid to the extent of Rs. 40,000 B. on attaining majority, A makes out a
c) Invalid fresh cheque in lieu of the old one. In
d) Validated on attaining majority this case
196. A ia a minor, b approaches A for a a. The original cheque is invalid but the
loan on the basis of a mortgage of the fresh cheque is valid
house owned by B Hence, A advances b. The original cheque is valid but the
the money and b executed a mortagage fresh cheque is invalid
in favour of A, a minor. In these c. Both the original and fresh cheque
circumstances are valid
a) The mortgage is not enforceable by d. Both the original and Fresh cheque
A, because he is a minor are invalid.
b) The mortgage is enforceable but only 202. Which of the following is incorrect?
when a attains majority a) A minor can enter into contract
c) The mortgage is enforceable by A b) A minor cannot validly appoint an
even though he is a Minor agent
d) There is no mortgage at all c) A minor is liable for a chque issued by
197. Minor can be him
a) A partner in a firm d) All of the above
b) An agent 203. Which of the following is correct?
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a) An agreement with a minor is always 209. A minor enters into a contract for the
void purchase of certain necessaries. In such
b) A drunken person can never enter a case
into a contract a) He is liable to return the necessaries
c) A married woman can never make a b) He is liable to pay
contract c) His estate is liable to pay
d) All of the above d) His guardian is liable to pay
204. Which of the following is correct 210. Which of these has not been held as
position for minor under valid contract ? a “ Necessary’?
a) A minor can be a beneficiary a) Food
b) A minor can be a promise b) Clothing
c) Either (a0 and (b0 c) Shelter
d) A minor can be a full fledged partner d) Mobile Phone
in partnership firm 211. Which of these has been held as a
205. A minor, by misrepresenting his age, “Necessary?
borrows some money. He a) Mobile Phone
a) Can be sued for fraud b) Clothing to suit the person’s social
b) Cannot be sued for farud status
c) Is liable to return the money c) Intoxicating drinks
d) Is liable to return the money on d) Internet Connection
attaining majority 212. Education and Marriage of a Female
206. Which of the following is correct ? have also been held to be necessaries
a) A minor can make a valid contract for in India.
necessaries of life a) True
b) A married woman cannot enter into b) Partly True
contract with her husband c) False
c) A minor can never become partner of d) None of the above
any firm 213. Necessaries consist of
d) A minor can appoint an agent and is a) Tangible Goods
liable as principal b) Services
207. A minor’s guardian are not liable to c) Either (a) or (b)
Creditor for breach of contract by the d) Neither (a) nor (b)
minor, if the contract is for ------ 214. Which of these is a not a “necessary”
a) Supply of necessaries for a Minor?
b) Supply of non-necessaries a) Provision of education
c) Supply of services b) Provision of medical and legal advice
d) All of the above c) Provision of a houe on rent for the
208. A minor, though incompetent to purpose of living and Continuing his
contract studies
a) can act as an Agent d) Provision of alcoholic drinks
b) Can bind his principal 215. A person is permanently incompetent
c) Either (a) or (b) to contract, if he is
d) Both (a) and (b) a) Lunatic
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b) Idiot insolvent 221. An intoxicated person is not


c) All of the above competent to contract as he falls in the
216. A, a minor bought 11 expensive category of
coasts from B. he was, at that time, a) Persons disqualified by law
adequately provided with clothes, but B b) Persons of unsound mind
did not know this fact. In such a case c) Persons of discarded by society
a) Minor is personally liable to pay for d) Enemies of society
the coast 222. Which of the following are the
b) Minor’s property can be attached for persons of unsound mind ?
payment a) Idiot
c) Minor is liable since he has Misled b) Lunatic
into supply of coats c) Drunken
d) Minor is not liable at all d) All of the above
217. A minor having ample supply of 223. Which of the following persons are
clothes according to his position, bought not competent to Contract being the
number of new dresses including eleven persons disqualified by law?
fancy waist-coasts. In which of the a) Alien enemies
following case, these were held not to b) Insolvents
be necessaries? c) Convicts
a) Chapel Vs Cooper d) All of the above
b) Balfour Vs Balfour 224. Which of the following person do not
c) Nash Vs Inman fall in the category of person of unsound
d) None of these mind.
218. A person is said to be of Sound Mind, a) Idiots
if at the time of contracting b) Lunatics
a) He is able to understand the terms of c) Alien
Contract d) Drunken persons
b) He is capable of forming a rational 225. Minority is a personal …….
judgment about contract and about a) Matter
his interests b) Incompetence.
c) Either (a) or (b) c) Talent
d) Either (a) and (b) d) Competence
219. A minor can be held liable for …. 226. The doctrine of restitution refers to
a) Necessaries of life supplied to him the restoration of property or goods
b) For a tort committed by him obtained by false representation. This
c) Cheques endorsed by him doctrine is
d) All of the above a) Beneficial to minors
220. A drunken person is not competent to b) Not applicable to minors
contract as he falls in the category of c) Applicable to minors
a) Persons disqualified by law d) None of the above
b) Persons of unsound mind 227. A minor
c) Persons of discarded by society a) Can be appointed as an agent.
d) Enemies of society b) Cannot be appointed as an agent
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c) Can appoint others as his agent c) Both (a) & (b)


d) None of these d) May not contract whilst such delirium
228. Which of the following is considered lasts
to fall in the category of ‘necessaries’? 234. A sane man, who is delirious from
a) Expenses for funeral ceremonies of fever
minor’s father a) Can contract at any time
b) Money borrowed to save minors b) Cannot contract whilst such delirium
property lasts
c) Expenses for education c) Cannot contract at all
d) All of the above d) May not contract whilst such delirium
229. A, a minor borrowed Rs. 30,000 from lasts
B as an education loan to compete his 235. A sane man, who is so drunk that the
education. B can …… cannot understand the terms of a
a) Recover amount from A contract
b) Recover amount from A’s guardian a) Cannot contract while such
c) Recover amount from A’s property drunkenness lasts
d) Not recover at all b) Cannot contract at all
230. In a case where a lunatic enters into a c) May not contract while such
contract for the purpose of ‘necessaries, drunkenness lasts
then d) Can contract at any time
a) Lunatic’s is personally liable to pay
b) Lunatic’s guardian’s is liable to pay Consideration
c) Lunatic’s estate is liable to pay 236. Consideration means
d) Guardian’s estate is liable to pay. a) Quid pro lo
231. A minor can be lawfully …. Of a b) Quid pro quo
cheque. c) Qui pro quo
a) Drawer d) Quid pro quod
b) Drawee 237. Consideration in a contract
c) Payee a) May be anything
d) All of the above b) Noting in return
232. Contracts with an alien enemy before c) Some thing in return
the declaration of war, which are against d) May be illusory
the national interest, are 238. Section ---- of the Indian Contract Act
a) Terminated defines” Consideration”
b) Not affected at all a) Section 2(a)
c) Suspended and revived after war b) Section 2 (b)
d) None of the above c) Section 2 (c )
233. The contractual capacity of a d) Section 2 (d)
company registered under the 239. “Consideration” means a reasonable
companies Act, 1956, is regulated by equivalent or other valuable benefit
the passed on
a) Memorandum of association a) By the Promisor to the beneficiary
b) Provisions of the Companies Act b) By the Promisee to the Promisor
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c) By the promisor to the promisee c) illegal consideration


d) By the promise to the beneficiary d) unlawful consideration
240. Consideration means something 246. past consideration is ------- in India.
which is of some value in the eyes of a) Valid consideration
law. it may be some benefit to the b) No consideration
plaintiff or somedetriment to the c) Illegal consideration
defedent. It was held in case of d) Unlawful consideration
a) Fazaladdin vs Panchanan Das 247. Which of the following is correct ?
b) Thomas Vs Thomas a) Consideration is essential for a
c) Currie vs Misa contract
d) None of the above b) Consideration is required for a
241. Out of the following which is/are valid contract when parties intend to
consideration ? c) Both (a) or (b)
a) Not to sue any person d) Neither (a) nor (b)
b) Compromise of dispute 248. Consideration must be something
c) Composition of creditors which the Promisor
d) All of the above a) Is already bound to do
242. An essential feature of consideration b) Is not already bound to do
is that c) May voluntarily do
a) It must be cash d) Must not do
b) It must be given by the prmisee alone 249. If a renders some service to B at B’s
c) It must be at the request of the desire and after a Month B promises to
Promisor compensate A for the service rendered
d) It must be in kind to him, it is a
243. Past consideration means a) Present consideration
a) Voluntary services rendered in the b) Past consideration
past c) Future consideration
b) Something given by a party to d) Not a consideration at all
another at the request of the 250. An Executory consideration
Promisor and contract is made a) Is an outstanding liability on both the
thereafter parties
c) Something done at the time of making b) Consists of a promise in future
a contract c) Is a promise for a promise
d) Something to be given after d) All of the above
formation of the contract 251. Executor consideration can be
244. Consideration may be a) Positive
a) past b) Negative
b) present c) Neither (a) nor (b)
c) future d) Either (a) or (b)
d) either (a) or (b) or (c) 252. An executed consideration
245. past consideration is ___ in England a) Can be positive or negative
a) valid consideration b) Liability is outstanding in one side
b) no consideration only
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c) Is an act against future promise a) Void


d) All of the above b) Valid
253. Past consideration means c) Unlawful
a) The price received in the past without d) illegal
making even a proposal 260. a finds B’s mobile Phone, and gives it
b) More price is received than expected back to him. B promises to give A rs.
c) The service rendered at the request 500. This is a/an
of the promisor in the past followed a) agreement
by a subsequent promise b) contract
d) All of the above c) acceptance
254. Executor consideration means d) offer
a) Past consideration 261. an agreement not supported by
b) Present consideration consideration is called
c) Future consideration a) Nudum Pactum
d) Both (a) and (b) b) Invalid consideration
255. Executed consideration means c) Ab intio
a) Present consideration d) Namo dat quod non habet
b) Past consideration 262. Promise without consideration is
c) Future consideration a) Gratuitous
d) Voluntary services rendered in the b) Devoid any legal obligation
past c) Not binding on the Promisor
256. A promises to pay an existing debt d) All of the above
punctually if, B, the creditor, gives him a 263. The consideration is to be moved
discoint. Is this consideration valid ? some-time after the formation of a
a) Yes , it is genuine consideration contract, it is known as ……
b) No , Promisor is already bound to pay a) present consideration
punctually b) Executor consideration
c) No, inadequate consideration c) Past consideration
d) Yes , enforceable consideration d) Executed consideration
257. Present consideration is valid in ---- 264. A for natural love and affection,
a) India promises to give his son B Rs 1,000. A
b) England puts his promise to b into writing and
c) Both (a) and (b) registers it. This is a
d) Either (a) or (b) a) Contract
258. Consideration may be b) Agreement
a) Executor c) Promise
b) Executed d) Offer
c) Either (a) or (b) 265. Mere nearness of relation does not
d) Both (a) and (b) necessarily imply natural love and
259. Where a witness who has received ffection for making contracts without
summons to appear at a trial, a promise consideration is valid.
to pay him anything beyond his a) True
expenses is b) Partly True
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c) False d) Either (b) or (c)


d) None of the above 272. Consideration may move from
266. A husband, by a registered a) Promisor
agreement promised to pay wife Rs b) Promise
5,000 p.m. there was no consideration c) Either (a) or (b)
moving from the wife to the husband. d) Both (a) and (b)
This contract is 273. Consideration is not necessary to
a) Void effect a alid Gratuitous Bailment of
b) Illegal goods.
c) Valid a) True
d) Unenforceable b) Partly True
267. The consideration ----- benefit the c) False
promise himself d) None of the above
a) Must 274. Inadequacy of consideration does not
b) Need not make the contract
c) Must always a) Void
d) Must never b) Voidable
268. A supports B’s infant Son. B c) Valid
Promises to Pay A’s expense. The d) Neither (a) nor (b)
contract is 275. Which of the following is correct ?
a) Void a) Consideration may be past, present
b) Illegal but not future
c) Valid b) A contract is void if the consideration
d) Unenforceable is inadequate
269. A owes B Rs 1,000 but the debt is c) Acceptance to lesser sum in
barred by Limitation Act. A sins a written satisfaction of payment of a larger
promise to pay B Rs 500 on Account of sum is valid in spite of inadequate
this debt. The contract is consideration
a) Void d) A stranger to contract can enforce the
b) Illegal contract
c) Valid 276. When the consideration is unlawful,
d) Unenforceable the courts
270. ‘No Consideration No Contract’ does a) Allows an action on contract
not apply to completed gifts. b) Does not allow an action on contract
a) True c) Takes it for consideration
b) Partly True d) Either (a) or (c)
c) False 277. A person who is not a party to a
d) None of the above contract
271. Consideration must move at the a) Cannot sue
desire of b) Can sue
a) Promisor c) Can sue only in well recognized
b) Promise cases
c) Stranger d) Can sue the Government
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278. Under the Indian contract Act, a third arty to the contract, only if such
person agreement is
a) Beneficiary under the contract can a) Registered
sue b) Reduced to Writing
b) From whom the consideration has c) Either (a) or (b)
proceeded can sue d) Both (a) and (b)
c) Cannot sue even if the consideration 284. Which of the following is incorrect ?
has proceeded from him a) Consideration must be something
d) Cannot sue at all for want of privity of which the promise is aleady under a
contract duty to do
279. Stranger to contract means b) Consideration must be valuable in the
a) First party to contract eye of the promisor
b) Second party to contract c) Consideration must be which the
c) Third party to contract promise wants to do voluntarily
d) Either (a) or (b) d) All of the above
280. The term privity of contract means 285. A promises to pay Rs. 1,000 to B if he
a) Stranger of contract brings a star from sky to earth and B
b) Contract is private agrees to bring the star to earth. In this
c) First party to contract case, contract is
d) Second party to contract a) Valid
281. Consideration need not necessarily b) Void as consideration is illusory
be provided by the promisee, it may flow c) Illegal
from a third party also. Such a person is d) Contingent
called 286. The forbearance to sue is regarded
a) Stranger to contract as
b) Stranger to consideration a) Invalid consideration
c) Stranger to the court b) No consideration
d) Either (a) or (c) c) Valid consideration
282. Which of the following is correct ? d) None of the above
a) Consideration passed on behalf of 287. Compromise of disputed claims is
another is valid a) Valid consideration
b) A ather promises his son while talking b) Invalid consideration
on cell phone to give half of his c) For bidden by law
property. It is an enforceable d) Unlawful consideration
promise 288. A promise to pay for past services is
c) A contracts B in writing to pay all the valid and binding even though it is
time barred debts of C. it is a valid without consideration. However, for the
contract validity of such promise, the past
d) Both (b) and (c) above services should have been rendered
283. Marriage Settlement, Partition and a) Voluntarily
other family Arrangements can be b) At promisor’s request
enforced by a beneficiary who is not a c) Under compulsion
d) Under some contract
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289. For the enforcement of promise to b) The trust or charge in his favour must
pay a time –barred debt without be of specific property
consideration, which of the following c) The benefit to the beneficiary must be
conditions is not required ? of Rs. 50,000 or more
a) It must be in writing d) Both (a) and (b)
b) It must be express 294. A person for whose benefit a prvision
c) It must be signed by the promisor is made in partition deed of joint family
d) It must be rgistered in a Court of law property but he is not a party to such
290. Which of the following statements are settlement,
correct ? a) Cannot sue as partition of property is
I.Consideration is not required for the not a recognized exeption
creation of an agency. b) Can sue as it is a recognized
II.Consideration is not required for exception to the rule of privity of
making an actual gift. contract
III.Consideration is not required while c) Can sue after becoming party to the
entering into contract with relative. settlement
IV.Consideration is not required for d) Can sue only if court allow him to do
promise to pay time-barred debt. so
a) (i),(ii), (iii) 295. A promises, for no consideration, to
b) (i), (i), (iv) give to B Rs 1,000.
c) (ii) (iii) (iv) a) This is a void agreement
d) (i), (iii), (iii) b) This is a valid agreement
291. Which of the following is the c) This is a voidable agreement
recognized exception to the rule of d) None of the above
privity of contract ?
a) Trust or charge Free Consent
b) Marriage settlement and family 296. Consent means parties agreeing on
arrangements a) The terms of the contract
c) Acknowledgement of payment b) Some terms of the contract
d) All of the above c) The same thing in the same sense
292. In which of, the following important d) Any matter of the contract
cases, the exception of ‘trust or charge’ 297. Section ….. of the Indian contract act
to the rule of privity of contract was deals with consent.
recognized? a) 12
a) Lalman shukla Vs Gauri Dutt b) 13
b) Khuaja Mohdkhan vs Hussani Begum c) 14
c) Carlill vs Carbolic smoke ball Co d) 15
d) Balfour vs Balfour 298. Consent Means
293. A person who is not a party to the a) Unity of minds on the same thing
trust can enforce the same if the b) Meeting of minds on the same thing
following conditions are satisfied. in the same sense
a) He must be clearly named as a c) Agreeing on same thing in the same
beneficiary under the trust or charge sense
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d) Either (a) or (b) or (c) d) All of the above


299. “ Free Consent” is ealt with under 306. The act amount to coercion is
Section …. Of the Indian Contract Act. a) Threat to sue
a) 12 b) Threat to strike
b) 12 c) Threat to suicide
c) 14 d) Threat to detain property under
d) 15 mortgage
300. Consent and free consent are same 307. A contract is said to be caused by
and one thing. undue influence
a) True a) When one party is a dominant party
b) Partly true b) When one party uses its dominant
c) False position to get unfair advantage over
d) Partly False the other in a contract
301. Sec …. Of Indian Contract Act deals c) When parties to contract are close
with “Coercion”. friends
a) 15 d) When parties to a contract are near
b) 16 relatives
c) 17 308. A threatens to kill B, if B does not
d) 18 agree to sell his property to A. B’s
302. Consent is said to be free when it is Consent is obtained by
not obtained by a) Fraud
a) Coercion b) Undue Influence
b) Fraud c) Coercion
c) Bilateral Mistake d) Misrepresentation
d) Either (a) or (b) or (c) 309. D threatens to kill A if he does not sell
303. Two person are said to be in consent his hose to B at a very low price. Even if
a) When they agree on any things D is a stranger to the transaction
b) When they agree upon the same between A and B, the agreement is
thing in the same sense caused by
c) When they agree upon the same a) Undue Influence
thing in different sense b) Coercion
d) When they agree upto the same thing c) Fraud
in different sense d) Misrepresentation
304. …… means forcibly compelling a 310. A, Hindu widow, was forced to adopt
person to enter into a contract. B under threat that her husband’s dead-
a) Intimidation body would not be allowed for funeral,
b) Fraud unless she adopts B. the adoption is
c) Mistake void-able since the consent is caused by
d) Coercion a) Undue Influence
305. Coercion includes b) Coercion
a) Causing fear c) Fraud
b) Threat to detain property d) Mistake
c) Detain goods unlawfully
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311. A contract is said to be made without a) He holds a real or apparent authority


consent when the contract is caused by over the other
a) Coercion b) He stands in a fiduciary relation to the
b) Undue influence other
c) Fraud c) All of the above
d) Bilateral Mistake of fact d) None of the above
312. To make a contract voidable, 318. A person is deemed to be in a
coercion must have been exercised position to dominate the will of another if
against a) He stands in a fiduciary relation to the
a) promisor other
b) Any other person b) He makes a contract with a person
c) Either (a) or (b) whose mental capacity is temporarily
d) Neither (a) nor (b) or permanently affected by reason of
313. Duress under English Contract Law is age, illness or mental or bodily
similar to distress
a) Undue influence c) All of the above
b) Coercion d) None of the above
c) Fraud 319. The agreement entered into with free
d) Misrepresentation consent is
314. To avoid a contact under the claim of a) Valid
“Coercion” , the Indian Pena code b) Void
should be in force where the coercion is c) Voidable
employed. d) Illegal
a) True 320. The agreement entered into without
b) Partly True free consent is
c) False a) Valid
d) None of the above b) Void
315. ….. means unfair use of one’s c) Voidable
superior power in order to obtain the d) Illegal
consent of a person who is in a weaker 321. A person is deemed to be in a
position. position to dominate the will of another
a) Coercion by undue influence if the mental
b) Undue influence capacity is affected temporarily or
c) Fraud permanently by reasons of
d) ‘Misrepresentation a) Age
316. Section …. Of the Indian Contract Act b) Illness
deals with “Undue Influence”. c) Mental or bodily distress
a) 15 d) All of the above
b) 16 322. Who has defined that “ undue
c) 17 influence is the unconscientions use, by
d) 18 one person, of power possessed by him
317. A person is deemed to be in a over another in order to induce the other
position to dominate the will of another if party to enter into contract ?
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a) Holland 328. Which of the following relationships


b) Pollack raise presumption of undue influence ?
c) Lord Halsbury a) Doctor and Patient
d) Salmond b) Solicitor and Client
323. A contract which is aboided on c) Trustee and Beneficiary
grounds of undue Inflence may be set d) All of the above
aside 329. Which of the following relationship
a) Absolutely raise presumption of Under influence?
b) Upon such terms and conditions as a) Landlord and Tenant
the Court may deem fit b) Husband and Wife
c) Either (a) or (b) c) Fiancé and Fiancee
d) Both (A) and (B) d) Creditor and Debtor
324. An illiterate old woman made a gift 330. undue influence is npt preumed
deed of her entire property to her when the relationship between the
nephew who managed her affairs. The parties is
gift can be set aside on the grounds of a) master- Servant
a) Mistake b) doctor-patent
b) Coercion c) husband-wife
c) Fraud d) shopkeeper-buyer
d) Undue Influence 331. Coercion and Under Influence,
325. A applies to a Banker for a loan when involve physical force or threat.
the money market is very stringent a) True
Banker says that loan could be provided b) Partly True
only at such high interest A’s consent is c) False
a) Not obtained by ndue Infuence d) None of the above
b) Obtained by undue influence 332. To employ “coercion”, relationship
c) Not obtained by coercion between the parties is
d) Obtained by fraud a) Necessary
326. Mere proof of nearness of relationship b) Not necessary
is not sufficient for the Court to assume c) Required
that one relation was in a position to d) Presumed
dominate the will of another 333. To employ “undue Influence”,
a) True relationship between the parties is
b) Partly true a) Necessary
c) False b) Not necessary
d) None of the above c) Required
327. Which of the following relationships d) Presumed
raise presumption of undue influence ? 334. Section 17 of the Indian Contract Act
a) Parent and Child deals with
b) Guardian and Ward a) Coercion
c) Spiritual Guru and Disciple b) Undue Influence
d) All of the above c) Fraud
d) Mistake
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335. Fraud means b) Stranger to the contract


a) Suggestion as a Fact, of something c) An agent of the party to the contract
which is not true, by a person who d) Both (a) and (c)
does not believe it to be true 341. Which of these constitute essential
b) Active concealment of a fact elements of Fraud?
c) Promise made without any intention a) Representation should relate to a
of performing it material fact
d) All of the above b) Representation should be Falsse
336. Which of these constitute Fraud? c) The intention must be to induce the
a) Any act fitted to deceive other party to act upon it
b) Any such act or omission as d) All of the above
specifically declared by law to be 342. If a sells, by auction to B a horse
fraudulent which A Knows to be unsound and A
c) Both (a) and (b) says nothing to B about the horse’s
d) Neither (a) nor (b) unsoundness, this amount to
337. Which of these does not constitute a) Fraud
Fraud? b) Not farud
a) Suggestion as a fact, of something c) Unlawful
which is not true, by a person who d) Illegal
does not believe it to be true 343. If A sells, by auction to B a horse
b) Active concealment of a Fact which A knows to be unsound and A
c) Innocent statement, honestly says nothing to B about the horse’s
believing the same to be true. unsoundness, this amount to
d) Promise made without any intention a) Fraud
of performing it b) Not fraud
338. Which of these does not constitute c) Unlawful
Fraud? d) Illegal
a) Promise made without any intention 344. Duty to speak exists in case
of performing it. a) Where the parties stand in a fiduciary
b) Physical threat to the person relationship
c) Any act fitted to deceive b) Where contract is a one of ubberima
d) Any such act or omission as fidei
specifically declared by Law to be c) Both (a) and (b)
fraudulent d) Neither (a) nor (b)
339. A mere attempt at deceit by one party 345. Uberima fidei means
a) Is not fraud unless the other party is a) Bad faith
actually deceived b) Utmost god faith
b) Is fraud whether the other party has c) Goo faith
been deceived or not d) No faith at all
c) Amounts to mistake 346. Which of the following is correct?
d) Amount to undue influence a) Consent obtained by fraud makes the
340. Fraud may be committed by agreement void
a) A party to the contract
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b) Silence as to material facts always b. Voidable


amount to fraud c. Not voidable
c) A deceit which does not deceive is no d. Conditional
fraud 353. A, fraudulently sold his car to B. After-wards ,
B came to known about the fraud, but instead of
d) Unilateral mistake of fact alwys
complaining, he further sold the car to C. in this
renders the contract voild
case, B’s right to rescind the contract is
347. In which of the following cases, the a. lost
contract cannot be avoided on grounds b. not lost
of fraud? c. strengthened
a) A fraud which did not cause the d. None of the above
consent of the party to the 354. The important element which distinguishes
agreement mispresentation from fraud is that the
b) If the party had the means to discover misrepresentation is an
the truth with ordinary dillgence a. intentional statement
c) Where a party enters into a contract b. innocent statement
c. important statement
in ignorance of fraud
d. irrelevant statement
d) All of the above
355. In a contract of insurance, keeping silent as to
348. A bought shares in a Company on the material facts amounts to fraud.
faith of a prospectus that contained an a. True
untrue statement as to the directorship b. Partly True
of B. A had never heard of B and hence c. False
such statement was immaterial from his d. None of the above
view point. A claimed damages for 356. For a marriage contract, the relatives speaking
fraud. His claim will be dismissed on the for the girl failed to disclose that she was suffering
ground that from epileptic fits. In this case, engagement is
a) There was no fraud voidable on account of
a. Fraud
b) It is a subject matter covered under
b. Misrepresentation
Companies Act
c. undue influence
c) The untrue statement had not d. None of the above
induced him to buy the shares 357. Section ………. of the Indian Contract Act
d) All of the above deals with “Misrepresentation”
a. 15
351. In Derry Vs Peek it was observed that fraud b. 16
exists when it is shown that the false representation c. 17
has been made d. 18
358. Misrepresentation means
a. Knowingly
a. causing a party entering into an agreement
b. Unintentionally
to make a mistake as to the subject matter
c. Recklessly careless whether it be true or
of contract
false
b. a positive assertion, in a manner warranted
d. Both (a) and (c)
by the information of the person making it,
352. In cases of silence amounting to fraud where
not true but he believes it to be true
the other party had the means of discovering truth
with ordinary diligence, the contract is
a. Void
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c. Any breach of duty, which gains an 365. Where consent is caused by Fraud or
advantage to the person committing it by Misrepresentation, the aggrieved party can sue for
misleading another to his prejudice. damages.
d. All of the above a. True
359. When the contract is entered into under b. Partly True
misrepresentation, it is c. False
a. void d. None of the above
b. valid 366. Sohan induced Suraj to buy his motorcycle
c. invalid saying that it was in a very good condition. After
d. voidable taking the motorcycle, Suraj complained that there
360. Which of these are features of were many defects in the motorcycle. Sohan
Misrepresentation, not treated as Fraud? proposed to get it repaired and promised to pay
a. Innocent and Unintentional 40% cost of repairs after a few days. the
b. Believes the representation to be true motorcycle did not work at all. In this case, Suraj
c. No intention to deceive or defraud the other a. can rescind the contract
party. b. has affirmed to the contract and cannot
d. All of the above rescind the contract
361. Any breach of duty bringing gains to the Doer, c. can return the motorcycle
by misleading another to his prejudice is a case of d. all of the above
a. Suppression of Facts 367. …….. Is an erroneous belief about
b. Breach of Contract something?
c. Fraud a. Representation
d. Misrepresentation b. Mistake
362. Misrepresentation results not only from c. Fraud
misstatement of facts, but also from suppression of d. Misrepresentation
material facts. 368. When one of the parties is under a mistake as
a. True to a matter of fact essential to the agreement, it is
b. Partly True called
c. False a. Unilateral Mistake
d. None of the above b. Bilateral Mistake
363. Which of the following are essential features of c. Partial Mistake
Misrepresentation? d. Incomplete Mistake
a. Representation should be of a material fact 369. Unilateral Mistake may relate to
b. It must be made before the conclusion of a. Subject matter
the contract b. Understanding terms or legal effect of
c. There should not be an intention to deceive agreement
the other party c. Neither (a) nor (b)
d. All of the above d. Both (a) and (b)
364. A wrong statement of facts made to a third 370. Erroneous opinion as to value of subject
person with an intent to communicate it to the party matter is not a Mistake of Fact.
involved amounts to misrepresentation. a. True
a. True b. Partly True
b. Partly True c. False
c. False d. None of the above
d. None of the above 371. An old illiterate man was made to sign a bill of
exchange, by means of a false representation that
it was a guarantee. The contract is
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a. illegal Unknown to the parties, the procession had already


b. Valid been cancelled. The contract is void due to
c. Void a. Mistake as to Physical Impossibility
d. Voidable b. Mistake as to Legal Impossibility
372. When both parties are under a mistake as to a c. Object being opposed to public policy
matter of fact essential to the agreement, it is called d. All of the above
as 379. A contract to do a certain act which is not
a. Unilateral Mistake permitted by law, is void in itself.
b. Bilateral Mistake a. True
c. General Mistake b. Partly True
d. Total Mistake c. False
373. Section ………. of the Indian Contract Act d. None of the above
deals with “Bilateral Mistake”. 380. The maxim “Ignoranlia juris non excusa”
a. 19 stands for
b. 20 a. Law will not punish ignorant people
c. 21 b. Law will punish illiterate people
d. 22 c. Ignorance people can excuse law
374. Bilateral mistake may relate to d. Ignorance of law of land is no excuse
a. Subject Matter 381. A had two scooters, one blank and the other
b. Possibility of performance white, and offered to sell his black scooter to B for
c. Neither (a) nor (b) Rs 12,000. B accepted the other believing it to be
d. Both (a) and (b) for white. In this case, no contract arises between A
375. Bilateral Mistake as to fact renders an and B as there is no
agreement void since a. Consensus ad idem
a. There is no consideration b. error in consensus
b. Agreements is unlawful c. error in causa
c. There is no agreement d. both (a) and (b)
d. It is opposed to public policy 382. The case of ‘no consent’ i.e. when there is no
376. A agrees to sell his horse to B. But unknown consent at all, are described by Salmond as
to both the parties, the horse had already died at a. error in causa
the time of making of the contract. The contracts is b. error in consensus
a. Void c. consensus ad idem
b. Valid d. offer and acceptance
c. Voidable 383. In which of the following cases, of mistake of
d. Illegal both the parties, the contract is void ab initio
377. A wrote to B inquiring price of rifles suggesting because of complete absence of consent
that he might buy as many as 50. On receipt of a. Where there is error as to the nature of
information he telegraphed, “Send three rifles” the contract
Due to telegraphic mistake, message was b. Where there is error as to the identity of
transmitted as “Send the rifles”. B dispatched 50 the parties
rifles. In this case c. Where there is error as to the subject
a. There is no contract matter of the contract
b. There is a valid contract d. All of the above
c. A has to accept the loss on 50 rifles 384. threatening to commit any act forbidden by
d. A has to accept the loss on 3 rifles IPC amounts to coercion under Section 15, if such
378. A contracted to take on rent, a property for act is done with the intention of
viewing the coronation procession of the King. a. causing the other party to enter into contract
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b. injuring the other party a. One party must be in a position to dominate


c. causing loss to the other party the will of the other party
d. All of the above b. The dominant party must use his dominant
385. Unlawful detaining or threatening to detain any position to obtain an unfair advantage over
property amounts to coercion under Section 15, if the other party
such act is done with the intention of c. The dominant party must obtain an unfair
a. causing the other party to enter into contract advantage over the other party
b. injuring the other party d. One party must be in a dominant position,
c. causing loss to the other party but he may or may not use his position to
d. All of the above obtain unfair advantage over the weaker
386. The threatening act amounting to coercion party
a. Must be initiated by a party to the contract 392. A party is presumed to dominate the will of
only another, where he
b. Must be initiated by a stranger only a. holds a real or apparent authority over the
c. May be initiated by a party or by any other
person, even by a stranger b. makes a contract with another in mental
d. Must be initiated by both the party as well distress
as stranger c. Both (a) and (b)
387. The threatening act amounting to coercion d. None of the above
a. Must be directed against the party to 393. A party is presumed to dominate the will of
contract another, where he
b. Must be directed against stranger only a. holds a real or apparent authority over the
c. Both (a) and (b) other
d. May be directed against the party or against b. stands in a fiduciary relation to the other
any person who is not a party c. Both (a) and (b)
388. Threat to commit suicide amount to d. None of the above
i. Fraud 394. The fiduciary relations means the relationship
ii. Coercion of
iii. Undue influence a. trust and confidence
iv. Offence under IPC b. master and servant
a. (i) and (ii) c. none of the above
b. (ii) and (iii) d. both (a) and (b)
c. (iii) and (iv) 395. Which of the following relations fall in the
d. (ii) and (iv) category of ‘fiduciary relations’ and usually raise the
389. Threat to detain property in unlawful manner presumption of undue influence?
amount as a. Solicitor and client
a. Fraud b. doctor and patient
b. Coercion c. spiritual adviser and devotee
c. Mistake d. all of the above
d. All of the above 396. Which of the following relations do not fall in
390. Undue influence is a kind of the category of ‘fiduciary relationship and thus does
a. Mental not raise the presumption of undue influence?
b. Physical a. solicitor and client
c. Both (a) and (b) b. doctor and patient
d. None of the above c. spiritual adviser and devotee
391. Which of the following is not an essential d. None of the above
element of undue influence?
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397. Which of the following relations do not fall in d. illegal


the category of fiduciary relationship and thus dose 404. A, intending to deceive B, falsely represents
not raise the presumption of undue influence? that 500 bags are made daily at his factory, and
a. Parent and child thereby induces B to buy the factory. The contract
b. Trustee and beneficiary is
c. Landlord and tenant a. voidable at the option of B
d. Woman and her confidential managing b. voidable at the option of A
agents c. void
398. Contracts with a pardanashin woman d. none of the above
raises the presumption of 405. The husband asks his wife that he would
a. domination of will commit suicide, if she does not give him her
b. undue influence ornaments.
c. fraud a. The contract can be avoided by the wife
d. None of the above b. The contract is void
399. When a contract is challenged in a court of law c. The husband can enforce the contract
on the ground of undue influence, the burden of d. Both (b) and (c)
proof lies uponthe 406. A agrees to sell a horse worth Rs 20,000 for
a. stronger party Rs 100. A’s consent to the agreement was freely
b. weaker party given.
c. court to prove the undue influence a. This is a valid contract
d. None of the above b. This is a void contract
400. On account of bilateral mistake, a contract to c. This is a voidable contract
be declared as void under Section 20, the mistake d. This is an illegal contract
must be about the
a. Existing fact
b. Future fact Void Agreements and Contigent
c. Both of the above
d. None of the above Contract
401. When both the parties to an agreement have
different subject-matter In mind, the agreement is 407. Consideration and object of an agreement is
a. not void unlawful if it
b. void a. is forbidden by law
c. voidable b. would defeat the provisions of any law
d. valid c. Either (a) or (b)
402. When contract entered into by way of d. Neither (a) nor (b)
unilateral mistake is void? 408. Consideration and object of an agreement is
a. Mistake as to identity of the parties to an unlawful if it
agreement a. would defeat the provisions of any low
b. Mistake as to nature of the agreement b. creates injury to the person
c. None of the above c. is fraudulent
d. Either (a) or (b) d. All of the above
403. A, by fraudulent representation, got signed a 409. Which of the following is incorrect?
gift deed from B in his favour representing it to be a a. All agreements are unlawful if court
power of attorney. The gift deed is consider it as immoral
a. valid b. Champerty agreements are always void
b. voidable c. Either (a) or (b)
c. void d. Both (a) and (b)
410. Which of the following is incorrect?
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a. An agreement to create monopoly is void 418. An agreement is void if the court considers it
b. An agreement to defraud others is unlawful as
c. Both of the above a. Immoral
d. None of the above b. Within moral standards
411. Consideration and object of an agreement is c. Either (a) or (b)
unlawful if it d. Neither (a) nor (b)
a. is fraudulent 419. A enters into agreement on behalf of her minor
b. creates injury to property of any other daughter that her daughter will act in an adult
person movie. Agreement is
c. against public policy a. Void
d. all of the above b. Voidable
412. Consideration and object of an agreement is c. Valid
unlawful if it d. Contingent
a. is fraudulent 420. In the above questions, agreement is void,
b. is possible because it is
c. is impossible a. without consideration
d. all of the above b. immoral
413. An act forbidden by law means c. fraudulent
a. it is punishable by the Criminal Law d. contingent
b. it is prohibited by a Special Act 421. A gave a lone to the guardian of a Minor to
c. Either (a) or (b) celebrate the Minor’s marriage. The agreement is
d. Neither (a) nor (b) a. Valid
414. The stifling agreement is b. Valid at the option of Minor
a. Wagering c. not enforceable
b. Contigent d. voidable
c. Voidable 422. An agreement for improper promotion of
d. Void litigation is
415. In the above question the agreement is void a. voidable
on ground of b. not void
a. Unlawful consideration c. against public policy
b. Public policy d. valid
c. Both (a) and (b) 423. Which of the following agreements are valid?
d. Neither(a) nor (b) a. Uncertain agreements
416. A borrows money from B to purchase b. Wagering agreements
smuggled cameras from C. B knows the purpose. c. Agreements to do impossible events
The agreement between A and B is d. None of the above
a. illegal 424. Which of the following agreements are void?
b. void a. Agreements to do impossible acts
c. legal b. Illegal agreements
d. voidable c. Both (a) and (b)
417. A, B and C enter into an agreement for d. Neither (a) nor (b)
sharing the money obtained by fraud. This 425. If in a contract where promises are seperable
agreement is from other, one promise is legal and the other
a. Valid promise is illegal, the legal promise is……..
b. Wagering a. enforceable
c. Void b. unenforceable
d. Voidable c. unlawful
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d. none of the above b. Trade Combinations not opposed to public


426. if in a contract where promises are seperable policy
from other, one promise is leagal and other promise c. Partnership Agreements
is illegal, the illegal promise is ……. d. All of the above
a. enforceable 434. Where a Seller of Goodwill of a business
b. unenforceable agrees not to carry on similar business, the limits
c. unlawful and conditions imposed have to be …………
d. none of the above having regard to the nature of the business.
427. Which one of the following is a void a. Considerable
agreement? b. Understandable
a. An agreement without consideration c. Reasonable
b. An agreement in restraint of marriage d. Suitable
c. An agreement in restraint of trade 435. Trade combination agreements like opening
d. All of the above and closing of business ventures, licensing of
428. Of the following agreements, which one is not traders, supervision and control of dealers, etc., are
void? a. void
a. Agreement without consideration b. valid
b. Agreement in restraint of marriage c. voidable
c. Wagering agreement d. immoral
d. Agreement with physically disabled person 436. When two companies enter into an joint
429. Section ……. of the Indian contract Act deals venture agreement, the agreement is
with “Void Contract”. a. opposed to public policy
a. 2 (i) b. void
b. 2 (j) c. either (a) or (b)
c. 2 (d) d. neither (a) nor (b)
d. 2 (e) 437. When two companies enter into an joint
430. Section …… of the Indian Contract Act deals ventures agreement, the agreement is
with “Voidable Contract”. a. opposed to public policy
a. 2 (i) b. void
b. 2 (j) c. either (a) or (b)
c. 2 (d) d. both (a) nor (b)
d. 2 (e) 438. Out of the following, which is a valid restriction
431. Section …… of the Indian contract Act deals on an employee?
with “Agreements in restraint of Trade”. a. During employment, he will not work at any
a. 26 other place
b. 27 b. After the period of employment, he will not
c. 28 work anywhere
d. 29 c. He will not resign from job
432. The agreement to create monopoly is d. Both (b) and (b)
a. Valid 439. An agreement between ice manufacturers not
b. Void to sell ice below a stated price and to divide the
c. Illegal profits in a certain proportion is
d. Wagering a. Valid
433. In which of the following agreements, b. Void
Restraint of Trade is valid? c. Enforceable
a. Agreement with Buyer of Goodwill d. Voidable
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440. An agreement among the members of a co- 446. “Agreements in restraint of Legal proceedings”
operative society to deliver all crops grown by them is provided under
to the society. The society sells it and divides the a. Section 26
profit amongst its member is b. Section 27
a. Void c. Section 28
b. Unenforceable d. Section 29
c. Valid 447. Which of the following agreements is valid?
d. Voidable a. Restricting person from enforcing his rights
441. Service agreement where an employee under any contract, by the court
agrees that he will not serve anybody else b. Limiting the time within which any party may
during service period, is a enforce his rights by order of court
a. Valid agreement c. Waiver the rights of any party to the
b. Void agreement agreement
c. Illegal agreement d. All of the above
d. Unlawful agreement 448. An agreement not to enforce any legal remedy
442. Where an employee enters into an agreement or enforce the right is
with his employer not to engage in similar work a. Valid
after the termination of this service, the agreement b. Void
is c. Voidable
a. Valid d. Unenforceable
b. Void 449. An agreement between two parties to refer to
c. Enforceable arbitration for any dispute between them is valid
d. Voidable a. If any party wishes so
443. An agreement with employees to serve the b. If it is in writing
organization for a few years after training is c. Either (a) or (b)
a. Voidable d. Neither (a) nor (b)
b. Void 450. Uncertain Agreements are defined in section
c. Unenforceable ….. of the Indian contract Act ,1872.
d. Valid a. 26
444. Which of the following agreements in restraint b. 27
of trade is valid? c. 28
a. Partner not to carry on any business other d. 29
than that of the firm while he is a partner 451. Uncertain agreement is
b. Outgoing Partner not to carryon any business a. Voidable
similar to Firm’s within specified periods or b. Void
local limits. c. Valid
c. Partners not to carry on similar business d. Illegal
within specified periods, upon dissolution of 452. An agreement is void, if the meaning of such
Firm agreement is
d. All of the above a. not certain
445. Where an employee undertook to serve his b. not capable of being made certain
employer for a period of 1 year but leaves the c. either (a) or (b)
service after 6 months , the agreements is d. neither (a) nor (b)
a. Void 453. A says to B ‘’shall sell my house; will you
b. Enforceable buy?’’ B says, ‘’yes, I will buy’’. The agreement is
c. Illegal a. Valid
d. Voidable b. Void
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c. Voidable b. Punishable
d. Illegal c. Prohlbited
454. A says to B ‘’ I shall sell my house; will you d. Illegal
buy?’’ B says, ’’yes, I will buy’’. The agreement is 462. Illegal agreements may be punishable with
void due to a. Fine
a. Uncertainty of meaning b. Imprisonment
b. Uncertainty of price c. Both (a) and (b)
c. Uncertainty of subject matter d. Any of the above
d. Uncertainty about the quality 463. All void agreements may not be illegal but all
455. A promised to pay an extra Rs 5,000 to B if illegal agreements are always void.
the horse he purchased from B proved to a. True
be lucky. The promise is b. False
a. Valid c. Partly True
b. Void d. Partly False
c. Voidable 464. An Agreement to murder a person is an
d. Enforceable example of
456. A agreed to pay a certain sum, when he a. Voidable Agreement
wishes to pay. The agreement is void on b. Illegal Agreement
grounds of c. Either (a) or (b)
a. inadequacy of consideration d. Both (a) and (b)
b. agreement to agree in future 465. No action can be taken for breach of an illegal
c. Uncertainty agreement.
d. all of the above a. True
457. A agrees with B to sell all his goods stored in b. Partly True
warehouse at Ahmedabad for Rs 50,000. The c. False
agreement is d. None of the above
a. Valid 466. “A Wagering Agreement is a promise to give
b. Void money or money’s worth upon the determination or
c. illegal ascertainment of an uncertain event”. It is a said by
d. contigent a. Anson
458. Illegal agreements are b. Pollock
a. Not enforceable by law c. Drucker
b. Prohibited d. Cockbum
c. Either (a) or (b)
d. Both (a) and (b) 467. “A Wagering Agreement is a contract by A to
459. All illegal agreements are pay money to B on the happening of a given event
a. void ab – initio in contract of B’s promise to pay money to A on the
b. valid event of non happening.” It is said by
c. voidable a. Anson
d. enforceable b. Pollock
460. All void agreements are always c. Drucker
a. illegal d. Cockbum
b. valid 468. Which of the following is not a feature of a
c. enforceable Wagering Agreement?
d. None of the above a. Chances of gain or loss
461. Void agreements are b. Uncertainty of future event
a. Not punishable c. Neither party have control over future event
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d. Neither parties should have an interest in the a. Voidable


event b. Illegal and Void
469. If either of the parties may win but cannot lose, c. Valid and Enforceable
or both may lose and can not win, it is d. Contingent
a. a Wagering Agreement 477. In India, Unauthorized Lottery is
b. not a Wagering Agreement a. Illegal
c. a Voidable Agreement b. Void
d. an illegal Agreement c. Both (a) and (b)
470. Athletic competitions are valid because they d. Neither (a) nor (b)
are 478. A, in Ahmedabad, bets with B and loses. A
a. games of skill applies to C for a loan in order to pay B. C gives the
b. just games lone to A to enable him to pay B. In this case C can
c. games of luck a. recover the loan from A
d. all of the above b. not recover the loan from A
471. Neither party should have interest in the c. C can recover the loan from B
happening or non-happening of the event other d. Either (a) or (b)
than 479. “Wagering Agreements cover Insurance
a. His goodwill Contracts also”. This statement is
b. The sum he stands to win or loss a. True
c. Neither (a) nor (b) b. Partly True
d. Both (a) and (b) c. False
472. A “Wagering Contract ‘’ is void under ……… of d. None of the above
the Indian Contract Act, 1872. 480. Share market transactions with a clear
a. Section 30 intention only to settle the price difference are
b. Section 31 a. Wagering Agreements
c. Section 32 b. Not Wagering Agreements
d. Section 33 c. Contingent Contract
473. In a Wagering Agreement, the winning party d. Voidable Agreements
cannot recover the money. 481. Share market transaction with a clear intention
a. True not only to settle the price difference but delivery of
b. Partly True shares of goods are
c. False a. Wagering Agreements
d. None of the above b. Not Wagering Agreements
474. Wagering Agreement, have been declared c. Contingent Contracts
illegal and hence void in d. Voidable Agreements
a. Gujarat 482. Prize Competitions which involve skill are
b. Maharashtra a. Wagering Agreements
c. Both (a) and (b) b. Not Wagering Agreements
d. neither (a) nor (b) c. Void Agreements
475. In the State of Karnataka, Collateral d. Voidable Agreements
Transactions to a Wagering Agreement are 483. Any agreements to solve picture puzzles are
a. Voidable a. Wagering Agreements
b. Illegal and Void b. Not Wagering Agreements
c. Valid c. Void Agreements
d. Contingent d. Voidable Agreements
476 .In the States of Gujarat and Maharashtra, 484. Which of the following is correct?
collateral Transaction to a Wagering Agreement are
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a. Prize competitions exceeding Rs 1000 is b. Maintenance


wagering c. Stifling agreement
b. Horse race agreements are always unlawful d. Interference with course of justice
c. An agreement in restraint of legal proceedings 492. An agreement whereby one party assists
is valid another in recovering money or property and, in
d. All of the above turn share in the proceeds of the action is called
485. Which of the following is correct? a. Champerty
a. Prize competition for horse race exceeding Rs b. Maintenance
100 is wagering c. Stifling with Prosecution
b. Prize competitions for horse race exceeding d. Traficking the public office
Rs 100 is wagering 493. A agrees to pay B Rs 15,000 for suing
c. Prize competitions exceeding Rs 1000 is C and in turn seeking 50 per cent share in
wagering the proceeds received by B in the suit, This
d. Both (a) and (b) is an example of
486. A contract entered into during war with an a. Stifling with Prosecution
alien enemy is b. Champerty
a. Ineffective c. Maintenance
b. Valid d. Interfere with course of justice
c. Voidable 494. An agreement in restraint of Parental Right is
d. Void-ab-initio a. Enforceable
487. A contract entered into during war with an b. valid
alien friend is c. voidable
a. Ineffective d. void
b. Valid 495. Agreements which restricts freedom of
c. Voidable persons are
d. Void-ab-initio a. void
488. Which of these are not opposed to public b. against public policy
Policy? c. both (a) and (b)
a. Trading with enemy d. Neither (a) nor (b)
b. Stifling Prosecution 496. Marriage Brokerage Contracts are
c. Compromise of compoundable offences a. Enforceable
d. Agreement to commit a crime b. Valid
489. Which of these are not opposed to public c. Void
Policy? d. voidable
a. Champerty and Maintenance agreements 497. An agreement in which a person promises, for
b. Agreements in restraint of parental rights a monetary consideration, to procure the marriage
c. Agreements in restraint of marriage of another is
d. Agreements to refer disputes to arbitration a. Enforceable
490. Which of these are opposed to public policy? b. Void
a. Restraint of marriage c. Valid
b. Restraint of personal freedom d. Voidable
c. Interference with course of Justice 498. A promises to pay B Rs 50,000 if B secures
d. All of the above him an employment in the public service. The
491. Where a person agrees to maintain a suit, in agreement is
which he has no interest, the proceeding is known a. Enforceable
as b. Void
a. Champerty c. Valid
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d. Voidable 507. Contingent contracts are


499. A promises to pay B Rs 30,000 if B procure for a. Illegal
him the title “Padma Shri”. The agreement is b. not contract at all
a. Enforceable c. wagering in nature
b. Void d. None of the above
c. Valid 508. Contingent Contracts are
d. Voidable a. Valid contract
500. Agreements which create monopolies are b. Illegal agreement
a. in restraint of Freedom of Trade c. Voidable contracts
b. opposed to public policy d. None of the above
c. void 509. A contract based on the happening or non-
d. All of the above happening of a future event is called
501. Agreement intended to defraud Income Tax a. a wagering contract
Authorities is b. uncertain agreement
a. Contrary to public policy c. a contingent contract
b. void d. voidable contract
c. both (a) nor (b) 510. A Contingent Contract is a contract to do or
d. neither (a) nor (b) not to do something, if some event, collateral to
502. An agreement to remain unmarried is such contract
a. Valid a. happens
b. Void b. does not happen
c. Voidable c. Neither (a) nor (b)
d. Enforceable d. Either (a) or (b)
503. An agreement not to marry by minor is 511. Which of the following is a Contingent
a. Valid Contract?
b. Void a. Contract of Insurance
c. Voidable b. Contract for doing impossible acts
d. enforceable c. Marriage Contracts
504. An agreement which restricts a person’s d. Wagering Agreements
freedom to marry person of his choice is against 512. The collateral event to a Contingent Contract
public policy and is should be a/an
a. Lawful a. Uncertain Event
b. Illegal b. Certain Event
c. Void c. Either (a) or (b)
d. Enforceable d. Neither (a) nor (b)
505. Unconditional Contracts are called 513. A contract is not contingent contract
…… Contracts. a. If the event is bound to happen
a. Unenforceable b. If the promisor has control over the event
b. Contingent c. If the event is a part of the promise of the
c. Quasi contract
d. None of the above d. All of the above
506. Conditional Contracts are called 514. If A promises to pay B Rs 10,000 if he so
contracts. chooses, it is a contingent contract
a. Absolute a. True
b. Contingent b. Partly True
c. Quasi c. False
d. Illegal d. None of the above
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515. A contingent contract to do or not to do 522. A agrees to pay B Rs 50 if two parallel straight
anything on the happening of an uncertain future lines intersect each other. The agreement is
event a. Void
a. Is never enforceable b. Voidable
b. Is enforceable only at the time of making it c. Valid
c. Becomes enforceable immediately when d. Illegal
event becomes impossible 523. Wagering Agreements
d. Becomes enforceable only on the happening a. is a valid contract
of that event b. is a game of chance
517. A agrees to pay B Rs 50,000 if a Titanic ship c. is a voidable contract
does not return. The ship is sunk. The contract can d. is a quasi-contract
be enforced 524. An agreement for lawful consideration but with
a. When the ship sinks an unlawful object, is ……..
b. before the ship sinks a. Void
c. when the ship returns b. Wager
d. when ship does not starts its journey c. Voidable
518. Contracts contingent upon the happening of d. Partially Illegal
an Uncertain future Event within a fixed time, 525. An agreement with lawful object but for an
becomes void unlawful consideration, is______
a. At the expiry of time fixed, if such event has a. Void
not happened b. Voidable
b. Before the time fixed, such event becomes c. Wager
impossible d. Partially unlawful
c. Either (a) or (b) 526. An agreement is said to be opposed to public
d. Neither (a) nor (b) when it
519. A promises to pay B Rs 10,000 if a “Titanic” a. Against the welfare of the society
ship returns within a year. The contract b. Prejudical to the public interest or public policy
a. may be a enforced if the ship returns within the c. Either (a) and (b)
year d. is against provision of any law
b. becomes void, if the ship is burnt within the 527. Which of the following statement are correct?
year i. An agreement with voters to procure their
c. Both (a) and (b) votes for notes is void.
d. either (a) nor (b) ii. An agreement with a person for is procuring
520. The performance of contingent contract a seat in a college for monetary
depends upon consideration is void
a. main event iii. Wagering agreement is voidable.
b. collateral event iv. An agreement restricting personal freedom
c. both (a) and (b) is void
d. either (a) or (b) a. (i), (ii),(iii)
521. The event upon which performance of a b. (ii),(iii),(iv)
contingent contract depends must not depend upon c. (i), (ii),(iv)
the ………… of the promisor. d. (i),(iii), (iv)
a. mere will 528. A agrees to pay Rs 20,000 to B if he produces
b. act false evidence in his favour. This agreement is
c. rules a. Valid
d. principles b. Void
c. Enforceable
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d. Voidable a. Whole agreement is valid


529. A champertous agreement which is fair and b. Whole agreement is void and unenforceable
made with bonafide object of assisting a person is c. Unrestricted part is enforceable
valid. d. None of the above
a. True 537. A agrees to pay Rs 30,000 to B, a rival
b. False shopkeeper, if he closes his business in A’s locality
c. Partly true only. This agreement is
d. Partly false a. Valid
530. A collateral transaction to an illegal agreement b. Voidable
is c. Void
a. Valid d. None of the above
b. Voidable 538. A agrees to pay a certain sum of money to B,
c. Void a rival shopkeeper, if he closes his business for
d. Uncertain three months in a year. This agreement is
531. Which of the following statements is correct? a. Void
a. An illegal agreements is voidable b. Voidable
b. A transaction collateral to illegal agreement c. Valid
is valid d. None of the above
c. Illegal agreements is enforceable 539. An agreement which restrains the seller of a
d. In case of illegal agreements, courts donot goodwill from carrying on a similar business within
help any party specified local limits, is
532. An agreement which in restraint of marriage is a. Void
void if the restraint is b. Voidable
a. Complete only c. Valid
b. Partial only d. Contingent
c. Complete or partial 540. An agreement which restrains a continuing
d. Approved by parties partner of a firm from carrying on
533. An agreement which prevents a person from any business, other than the business of the firm, is
marrying a particular person, is a. Void
a. Void b. Voidable
b. Voidable c. Valid
c. Valid d. Unlawful
d. Allowed with court permission 541. A partner of a firm, so long as he is partner,
534. An agreement which prevents a person from can be restrained from carrying on
marrying a particular class is a. Any business
a. Void b. Similar business
b. Voidable c. Both of the above
c. Valid d. None of the above
d. Allowed with permission of parties 542. An agreement which restrains an outgoing
535. Where an agreement in restraint of trade is partner from carrying on the business similar to that
divisible, than the of the firm, is
a. Unrestricted part is valid and enforceable a. Void
b. Whole agreement is void b. Voidable
c. Whole agreement is enforceable c. Valid
d. Restraint is not valid in the eyes of law d. Unlawful
536. Where an agreement in restraint of trade is not 543. An outgoing partner can be restrained from
divisible, than the carrying on
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a. Similar business only b. Contingent contract


b. Any business c. Void contract
c. Both of these d. Voidable contract
d. None of the above 551. A agrees to pay Rs 5,000 to be if B’s car is
544. An agreement restraining the outgoing partner brunt, it is
from carrying on business similar to that firm will be a. Void
valid and enforceable if the restriction b. Voidable contract
a. Is reasonable c. Wagering agreement
b. Specifies the local limits d. Contingent contract
c. Specifies the period for which it will remain 552. Which of the following is not an essential
in force requirement of a valid contingent contract?
d. All of the above a. The performance must be conditional
545. Regulations as to the opening and closing of b. The event must be uncertain
business in the market, are c. The event must from a part of the contract
a. Not legal d. The event must be independent
b. Valid 553. A agrees to purchase B’s horse for Rs 5,000.
c. Void if the house proved lucky. It is
d. Illegal a. A contingent contract
546. An agreement which partially restrains a b. Not contingent contract
person from enforcing his legal right ,is c. Void agreement
a. Void d. Valid contract
b. Valid 554. A agrees to purchase B’s horse for Rs 5,000.
c. Voidable It is
d. None of the these a. A contingent contract
547. A and B entered into an agreement, that A can b. Not contingent contract
enforce his rights at Bombay only. This agreement c. Void agreement
is d. Valid contract
a. Valid 555. A contract dependent on the will of the
b. Void promisor is
c. Contingent contract a. An uncertain contract
d. Illegal b. A contingent contract
548. A agrees to sell to B all the production of this c. A forbidden contract
only factory situated at Ahmedabad. This d. A voidable contract
agreement is 556. A promises to pay Rs 5,000 to B if he feels like
a. Void to pay. This agreement is
b. Valid a. Valid
c. Voidable, at the option of B b. Voidable
d. None of these c. Void
549. A new promise to pay the stake money d. Illegal
already won upon a wager, is 557. Which of the following statements is correct?
a. Valid a. Contingent contracts are void
b. Void b. Contingent contracts are valid
c. Voidable c. Contingent contracts are voidable
d. Contingent d. Contingent contracts fall in the category of
550. A promises to pay Rs 500 to be if it rains on wagering agreements
the first Monday of the next month. It is a 558. B agrees to sell to A ‘’1 kg of grain at a price to
a. Wagering agreement be fixed by C’’.
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a. The agreement is valid c. Jus in personam


b. The agreement is void d. Jus in rem
c. The agreement is voidable 565. When the parties under the contract fulfill their
d. The agreement is illegal respective promises, the contract is said to be
559. The difference between contingent contract discharged
and wagering agreements’ are as follows a. By breach of contract
a. A wagering agreement, consists of b. By impossibility of performance
reciprocal promises whereas a contingent c. By agreement and novation
contract may not contain reciprocal d. By performance of contract
promises 566. An attempted performance discharges the
b. In wagering agreement the uncertain event promisor from his liability
is the sole determining factor while in a a. to deliver the goods
contingent contract the event is only b. to pay the price
collateral c. to pay the damages
c. Wagering agreement consists of reciprocal d. above (a) and (b)
promises whereas a contingent contract 567. Which is not the essential of valid tender?
may not contain such promises a. Tender must be conditional
d. All of the above b. Tender must be made at proper place
560. A agrees to pay Rs 50,000 to B if she brings a c. Tender must be for whole obligation
Dinosaur from forest. d. Tender must be made at a proper time
a. This is void agreement 568. Which are the essential of valid tender?
b. This is a quasi contract a. Tender must be unconditional
c. This is an implied contract b. Tender must be made at proper place
d. This is a wagering conduct c. Tender must be to proper person
561. Which of the following is correct? d. All of the above
a. A wagering agreement is void 569. The Parties to a Contract must
b. A contingent contract is valid a. perform their respective promises
c. A contract of insurance is not a wagering b. offer to perform their respective promises
agreement c. either (a) or (b)
d. All of the above d. neither (a) nor (b)
570. The performance of a promise is not required
Performance of contract a. when the parties substitute the contract
b. when performance is possible
562. Performance of a contract may be in the form
c. when the promisee rejects a tender of
of
performance
a. actual
d. both (a) and (b)
b. attempted
571. The parties to a contract need not perform
c. either (a) or (b)
when the performance is
d. both (a) and (b)
a. dispensed with
563. Performance of contract means
b. excused under the provisions of any law
a. fulfilling all the obligations by a promisee
c. either (a) or (b)
b. fulfilling all the obligations by the promisor
d. neither (a) nor (b)
c. performing all the promises and fulfilling all
572. In case of death of the Promisor before
the obligations by all the parties
performance, the Representatives of the Promisor
d. both (a) or (b)
are not bound when
564. offer to perform is called
a. It involves the personal skill
a. Attempted performance
b. Caveat emptor
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b. agreement exempt the performance of a. The tender must be unconditional


promise on part of legal representative b. The tender must be made at proper place
c. either (a) or (b) c. The Promisee must be given an opportunity
d. neither (a) nor (b) d. All of the above
573. A promises to deliver goods to B for Rs 580. The Offer to perform must be made to
20,000. A dies before performance of promises a. the Promisee
a. The contract becomes void b. anyone of the Joint Promises
b. The contract becomes impossible c. Authorized of Promisee
c. The contract can be enforced against A’s d. Either (a) or (b) or (c)
representatives and B is bound to pay Rs 581. In which of the following cases, the Promisor
20,000 to A;s representatives is at fault?
d. The contract is void a. Promisee does not give reasonable facilities
574. A promises to paint a picture for B. A dies for performance
before painting picture. Which one of the following b. Promisor has disabled himself from
is the correct legal position? performing his promise in entirety
a. The agreement becomes unlawful c. Promisor has refused to perform his
b. The agreement becomes impossible promise
c. The agreement becomes voidable d. Both (b) and (c)
d. The agreement is void ab initio 582. Who cannot demand performance of a
575. Where the Promisor offers to perform to the Promise?
Promisee, the Promisee is bound a. Promisee
a. to provide reasonable facilities for the b. Any of the Joint Promisees
performance c. Legal representative on death of Promisee
b. to provide unreasonable opportunity d. Stranger to the Contract
c. both (a) or (b) 583. A promisee can accept the performance from
d. neither (a) nor (b) a. Promisor
576. A contracts to repair B’s house. B does not b. Legal representative of the Promisor
show him the places that require repairs. In this c. Third party
case d. Any of the above
a. A must request B to show the required 584. In which situation only the Promisor should
places perform the promise personally?
b. A is excused from non-performance where it a. Where promisee intended that performance
is so caused by B’s neglect of the promise by the Promisor himself
c. B can sue A for non-performance b. Where contract involves the use of personal
d. A can sue B for non-co-operation skills
577. An offer of performance is known as c. Where the promise is founded on personal
a. Offer confidence between the parties
b. Proposal d. All of the above
c. Tender 585. “A” promises to act in a movie for “B”. In this
d. Acceptance case
578. The offer to perform the contract must be a. Legal representative of A can perform the
a. Unconditional promise
b. Conditional b. A’s agent can perform the promise
c. Rational c. A’s employer can perform the promise
d. Provisional d. A must perform this promise personally
579. Which one of the following is correct about the 586. It is not always required of the parties to
essentials of valid Tender? perform the contract ……
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a. in time a. all the Joint Promisors to perform


b. before time b. any one of them to perform
c. personally c. some of them to perform
d. both (a) and (b) d. any of the above
587. A contract to marry a person shall be 593. The liability of Joint Promisors is
performed by a. Joint
a. Promisor b. Several
b. Representative of the Promisor c. Joint or several
c. Relative of promisor d. Joint and several
d. Either (a) or (b) 594. A, B, and C Jointly promise to pay Rs 1000 to
588. Where a Promisee accepts performance from D. D files a suit to recover the amount against
a third person, he a. D must sue all of them
a. can also claim performance from the b. D can recover Rs 1000 only from A
Promisor c. D can recover the amount from any one of
b. cannot afterwards enforce the promise them
against the promisor d. D cannot sue any of them
c. can still sue the third person 595. If any one of Joint Promisors makes default in
d. can sue promisor for breach contract such contribution, remaining Joint Promisors must
589. When two or more persons have made a joint share the loss arising from such default
promise, then, unless a contrary intention appears a. Equally
from the contract, the promise shall be performed, b. Not equally
during their joint lives c. In the ratio of their properties
a. By any one of them d. Either (a) or (b)
b. By a majority of the Joint Promisors 596. In case of a Joint Promise, release of one of
c. By all of the Joint Promisors Joint Promisors by the Promisee
d. All of the above a. discharges all Promisors
590. When three person have made a joint b. discharges the other Joint Promisors
promise, then, unless a contrary intention appears c. does not discharge the other Joint
from the contract, the promise shall be performed, Promisors
after the death of the last survivor d. discharge the Promisee
a. By the Representatives of all the Promisors 597. When a person has made a promise to two or
jointly more persons jointly, then unless a contrary
b. By the Representatives of a majority of the intention appears from the contract, then, during
Promisors their joint lives, the right to claim performance rests
c. By the Representative of any one of the with
Promisors a. any one of the Joint Promises
d. Any one of the above b. a majority of the Joint Promisees
591. When two or more persons have made a joint c. all of the Joint Promisees
promise, then, unless a contrary intention appears d. either (a) or (b)
from the contract, all such persons must fulfill the 598. When a person has made a promise to two or
promise more persons jointly, then unless a contrary
a. Jointly intention appears from the contract, and, after the
b. Severally death of all of them, the right to claim performance
c. Both (a) and (b) rests with
d. Jointly or severally a. by the Representatives of all the Promisees
592. In case of Joint Promise, a Promise can ask or jointly
force
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b. by the Representatives of any one of the a. at any time on that specified day
Promisees b. at any time during the usual hours of
c. Either (a) or (b) business on the specified day
d. None of the above c. at any time on any day
599. Where time for performance is specified In a d. after the usual hours of business on the
contract specified day
a. the Promisor has to perform without 605. Where place of performance is not specified,
application by the Promisee the Promisor shall
b. the Promisor shall perform after specified a. ask Promisee as to where performance of
time in contract promise made
c. either (a) or (b) b. perform the promise at any place
d. both (a) and (b) c. not perform the promise
600. In a contract where time is not specified for d. either (a) or (b)
performance, the Promisor can perform the 606. Whether time is the essence of the contract
contract depends on
a. at any time he wishes a. the intention of the parties
b. within the shortest time b. the facts and circumstances of each case
c. within a reasonable time c. the provisions of law
d. within the latest time d. all of the above
601. In a contract where time is specified for 607. Where time is the essence of the contract and
performance, the Promisor shall perform the the Promisor fails to perform within specified time,
contract the contract is
a. Within specified time a. voidable at the option of the Promisee
b. within the shortest time b. voidable at the option of the promisor
c. within a reasonable time c. not voidable
d. within the latest time d. valid
602. If time is the essence of the contract and the 608. Where time of performance is specified in the
Promisor fails to perform the contract within the contract and the Promisee has accepted
specified time, the contract performance at any time other than the agreed
a. becomes void time, the Promisee
b. is valid a. cannot claim compensation
c. becomes voidable at the instance of the b. can claim compensation for loss
Promisee c. cannot claim performance of the promise
d. voidable at the instance of the promisor d. is entitled to rescind thee contract
603. If time is not the essence of the contract, and 609. Where time fixed for performance of promise
there is a failure to perform the contract by the was extended by the Promisee and the object of
specified time, then, the contract the contract is not a commercial one
a. becomes void a. Time is not the essence of the contract
b. becomes voidable at the instance of the b. Time is the essence of the contract
Promisee c. No presumption can be made
c. becomes invalid and can’t claim loss d. None of the above
suffered by the Promisee 610. In a contract for sale and purchase of goods,
d. remains valid but the Promisee can recover the prices of which fluctuate in the market, time is
damage a. not presumed to be the essence of the
604. If the promise is to be performed on a contract
specified day, the Promisor may perform the b. presumed to be the essence of the contract
promise c. no presumption as to time can be made
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d. All of the above appropriated towards the first sum of Rs 10,000 he


611. Where reciprocal promises are to be took from B. B shall appropriate it
simultaneously performed a. towards any debt due from A
a. Promisor need not perform his part of b. towards any time barred debt due from A
promise at all c. towards any disputed debt due from A
b. Promisor need not perform his part of d. towards that debt as indicated by A
promise unless Promisee is ready and 617. A valid tender of promises
willing to perform his reciprocal promise a. is equal to performance of promise
c. Promisor has to compel Promisee to b. Something more than performance of
perform his promise first Promise
d. Promises are not valid at all c. Both (a) and (b)
612. If a contract provides for the order of d. Neither (a) nor (b)
performance of reciprocal promises, the promises 618. A entered into contract with B to deliver certain
shall be performed goods to B. A offered the goods to B at proper time
a. in the order mentioned and place, but B refused to accept the goods. In
b. in any reasonable order this case,
c. in any appropriate order a. A does not have any right against B
d. in any order whatsoever b. A can sue B for breach of contract, but not
613. If a contract does not provide for the order of discharged from his liability
performance of reciprocal promises, the promises c. A is discharged from his liability and can also
shall be performed sue B fore breach of contract
a. in any suitable order d. B is not liable for breach of contract
b. in any reasonable order 619. A owes Rs 60,000 to B. Before clearing his
c. in such order which the nature of liability, A dies leaving behind an estate worth Rs
transactions require 40,000. In this case, A’s legal representatives are
d. in any order liable for
614. Where a contract contains Reciprocal a. Rs 20,000
Promises and one party to the contract prevents b. Rs 40,000
the other from performing his promise, the contract c. Rs 60,000
is d. None of the above
a. Valid 620. The promises forming consideration for each
b. Void other are called
c. voidable at the option of the party a. Reciprocal Promises
preventing the other b. Mutual Promises
d. voidable at the option of the party so c. Independent promises
prevented d. None of the above
615. Where a contract contains Reciprocal 621. A and B promise to marry each other. It is an
Promises and one party to the contract prevents example of
the other from performing his Promises, the party a. Reciprocal promise
so prevented can b. A’s promise is the consideration for B’s
a. avoid the contract promise
b. recover compensation from the party c. B’s promise is the consideration for A’s
preventing promise
c. Both (a) and (b) d. All of the above
d. Either (a) or (b) 622. The promises which are to be performed
616. A owes B total of Rs 25,000. He sends a simultaneously, are known as
cheque for Rs 10,000 stating that it shall be a. Mutual and concurrent
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b. Conditional and dependent 629. A promises to deliver goods at B’s godown. A


c. Mutual and independent delivers the goods during business hour to B’s
d. None of these house.
623. The sale of goods for cash is an example for a. A has not performed his promise
reciprocal promise known as b. A has not performed his promise
a. Mutual and concurrent c. B has not performed his promise
b. Conditional and dependent d. Both (b) and (c)
c. Mutual and independent 630. When a promise is to be performed on a
d. Cash and concurrent certain day the question ‘’what is proper time and
624. Where the performance of a promise by one place”
party depends upon the prior performance of a. Is determined by the promisor
promise by the other, the promise is known as b. Is question of fact
a. Mutual and concurrent c. Is determined by the promisee
b. Conditional and dependent d. All of the above
c. Mutual and independent 631. A desires B, who owes him Rs 100 , to send
d. Concurrent and dependent him a note for Rs 100 by post. B puts into the post
625. Where the promise by one party can be a letter containing the note duly addressed to A.
performed without waiting for the other party to a. The debt is discharged as soon as B posts
perform his promise, the promise is known as a letter addressed to A
a. Conditional and dependent b. The debt is not discharged even if B posts
b. Concurrent and independent the letter containing the note duly
c. Mutual and concurrent addressed to A
d. Mutual and independent c. The debt is discharged as soon as B posts
626. Where each party is a promisor as well as the letter containing the note duly
promisee, it is a case of addressed to A
a. unenforceable contract d. None of the above
b. reciprocal promises 632. A promise B to sell him 100 bales of cotton, to
c. unasertained agreement be delivered next day and B promises A to pay for
d. contingent contracts them within a month. A does not deliver according
627. When the intention of the parties is that the to promise.
promise should be performed by the promisor a. B’s promises to pay need not be performed.
himself. Such promise must be performed by and A must make compensation
a. The promisor b. A’s promise to deliver must be performed
b. Any person with authority of the promisor c. B’s must clam compensation
c. Third party d. B’s promises to pay need not be performed,
d. All of the above and A must make compensation
628. A,B, and C jointly promise to pay D the sum of 633. A contracts to act at a theatre for six months in
Rs 6,000. C is compelled to pay the whole. A is a consideration of a sum paid in advance by B. On
insolvent, but his assets are sufficient to pay one- several occasions, A is too ill to act
half of his debts. a. The contract becomes void
a. C is entitled to receive Rs 1000 from A’s b. The contract becomes voidable
estate, and Rs 2,500 from B c. The contract becomes illegal
b. C is entitled to receive Rs 1,000 from A’s d. Any one of the above
estate, and Rs 2,000 from B 634. A owes B Rs 10,000. A enters into a contract
c. C is entitled to receive Rs 1.000 from A’s with B and gives his estate to B as mortgage for Rs
estate, and Rs 3,000 from B 5,000 in place of the earlier debt of Rs 10,000
d. None of the above
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a. This is a new contract and extinguishes the


old one
b. This is a new contract but does not
extinguish the old one
c. Both are independent contracts
d. None of the above
635. A hired a music hall to B for performing
concerts. The hall accidentally burnt before
beginning of the concert. The contract becomes
a. void Discharge of contract
b. voidable 638. A contract is discharged by breach when a
c. illegal party to a contract
d. Any of the above a. refuses to perform his promise
636. Ex turpi causa non oritur action means b. fails to perform his promise
a. From an illegal cause, no action arises c. disables himself from performing his part of
b. From an illegal cause action may arises the promise
c. From an legal cause action may arises d. all of the above
d. From an legal cause action may not arises 639. A agrees to marry B and B Promises to bring
637. A contracted to supply certain quantity of for A , stars in consideration of marriage. The
timber to B. Before supply of any timber, war was agreement is
broke out resulting disruption of supply of the a. Void
timber. b. Valid
a. A was discharged from performing the c. Voidable
contract d. Illegal
b. A was not discharged from performing the 640. A agrees with B to bring back the life of dead
contract patient for Rs 50,000. The agreement is
c. A has to pay compensation a. Void
d. A has to pay penalty b. Voidable
c. Unenforceable
d. Illegal
641. Which of the following is correct?
a. Performance of contract means discharge
of the contract
b. Rescission of contract cannot discharge a
contract
c. Material alteration in a contract discharges
the contract
d. Both (a) and (c)
642. Breach of a contract may be
a. Actual Breach
b. Anticipatory Breach
c. Either (a) or (b)
d. Neither (a) nor (b)
643. Which of the following is correct?
a. Performance of contract means contract
becomes void
b. Cancelation of contract cannot discharge a
contract
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c. Alteration with the consent of party b. is discharged


discharges the contract c. becomes void
d. None of the above d. becomes voidable
644. Which of the following is incorrect? 651. A entered into a contract with B for supply of
a. Impossibility to perform promise discharges 100 bicycles manufactured by C. C did not
the contract manufacture it. In this case
b. merger discharges the contract a. A is not discharged
c. Initial impossibility discharges the contract b. A is discharged
d. All of the above c. Contract becomes void
645. The doctrine of impossibility of performance d. Contract becomes voidable
rendering a contract void is based on 652. A contracts with Indian Cricket Board to play
a. Commercial impossibility for IPL-2 at south Africa. A falls ill and is advised by
b. supervening impossibility doctor to rest. The contract
c. just and reasonable ground a. is valid
d. unjust enrichment b. is void ab initio
646. Because of supervening event, the Promisor is c. becomes void
excused from the performance of the contract. This d. is voidable at A’s option
is known as 653. When a contract becomes void, any benefit
a. Doctrine of frustration received under such contract is bound …………. to
b. Initial impossibility the person from whom he received it.
c. Doctrine of ultra-vires a. to restore such benefit
d. Operation of law b. to make compensation for such benefit
647. A contract is not considered void by c. either (a) or (b)
commercial impossibility. d. neither (a) nor (b)
a. True 654. Which of the following is correct?
b. Partly True a. Novation means making a new contract in
c. False place of an old contract
d. None of the above b. Alteration means making a new contract in
648. Which of the following is correct? place of an existing one
a. Supervening impossibility never discharges c. Performance of contract is not a method of
a contract discharge of contract
b. Anticipatory breach of contract does not d. All of the above
discharges the contract till the other party 655. If the subject matter of a contract is destroyed
elects to treat the contract as discharged after formation of the contract, without fault of either
c. Both (a) and (b) party, the contract
d. None of the above a. is rendered voidable
649. Which of the following is correct? b. becomes void
a. Supervening impossibility sometimes c. continues to be valid
discharges a contract d. becomes unlawful
b. Actual breach of contract takes place before 656. If the subject matter of a contract is destroyed
the due date of performance after formation of the contract, without fault of either
c. Both (a) and (b) party, the contract is
d. None of the above a. voidable
650. Third party’s failure to perform promise on b. discharged
whose performance your performance of promise is c. not discharged
depend upon. In this case, contract d. unlawful
a. is not discharged
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657. A musical hall was agreed to be let out on b. Performed


certain dates, but before those dates the hall was c. Obliged
destroyed by fire. The contract becomes void on d. Rescinded
the ground of 664. In which of the ways can a contract be
a. impossibility of performance discharged?
b. illegality of object a. By performance
c. unlawful consideration b. By operation of law
d. All of the above c. By lapse of Time
658. When the contract is made for several d. All of the above
purposes, failure of one of them 665. In which of the ways can a contract be
a. terminates the entire contract discharged?
b. does not terminate the entire contract a. By Performance
c. makes the contract unlawful b. By Operation of law
d. renders the object illegal c. By Mutual Agreement
659. A agreed to supply certain goods to B. d. All of the above
As a result of an increase in raw material costs, it is 666. An obligation under a contract stands
a no longer profitable for A to supply them at the discharged by
agreed rate. In this case a. dispensing with the performance
a. Contract becomes void b. impossibility of performance
b. Contract is discharged c. death of the party and contract is personal
c. A cannot be excused for in nature
d. d. All of the above
e. non-performance 667. Which of the following is incorrect?
f. A can be excused for non-performance a. Performance of contract and discharge of
660. Which of the following is incorrect? contract have the same effects
a. Contracts are discharged by lapse of time b. Commercial impossibility is not impossibility
b. Discharge of a party and discharge of c. Commercial impossibility does not make the
contracts are same and one thing contract void
c. Cancelation of contract discharges the d. Cancellation of a contract by mutual
contract consent of both parties is called waiver
d. All of the above 668. A contract stands discharged
661. Where performance has become more difficult a. By performance of the contract
than estimated at the time of entering into contract, b. By breach of the contract
the contract c. By agreement
a. is not discharged d. All of the above
b. is discharged 669. A contract can be discharged by performance
c. becomes void in which of the following ways?
d. becomes voidable a. Actual performance
662. …………. indicates that the parties are not b. By valid tender
further bound under the contract, c. Either (a) or (b)
a. Waiver of a Contract d. Both (a) and (b)
b. Breach of a Contract 670. A contracts to sell his scooter to B for Rs
c. Rescission of a Contract 50,000 and B agrees to pay on delivery. Both
d. Discharge of a Contract parties perform promises. This is called
663. When a contract ceases to bind the parties to a. Waiver
it, it is said to be b. Breach of a Contract
a. Discharged c. Attempted performance of contract
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d. Actual performance of a Contract b. responsible for


671. Which of the following is correct? c. discharged from
a. Anticipatory breach of contract takes place d. both (a) and (c)
after due date of performance 678. A took a house on rent from B. during tenancy,
b. In case of anticipatory breach of contract, A purchases that house. The earlier contract of
contract may be kept alive tenancy is
c. In case of actual breach of contract, the a. Void
contract becomes void if the time is the b. Discharged
essence of the contract c. Rescinded
d. There is no consideration in novation of d. Voidable
contract 679. Where any party makes any material alteration
672. In which of the ways can a contract be to the terms of contract, with the consent of the
discharged by operation of law? other party, the new contract is
a. Death of Promisor a. Void
b. Insolvency of Promisor b. Voidable
c. Merger of Right c. Valid
d. All of the above d. Discharged
673. In which of the ways can a contract be 680. Where any party makes any material alteration
discharged by operation of law? to the terms of contract, without the consent of the
a. Unauthorized material alteration contract other party. The contract is
b. Vesting of right and liabilities in the same a. Void
person b. Voidable
c. Neither (a) nor (b) c. Valid
d. Both (a) and (b) d. Discharged
674. In case of contracts involving personal skill or 681. A bill of exchange which was accepted by B,
expertise of the Promisor, death of the Promisor reaches B’s hands after being negotiated and
leads to endorsed through several other parties. The
a. Discharge of a Contract contract is
b. Breach of a Contract a. Void
c. Rescission of a Contract b. Discharged
d. Waiver of a Contract c. Cancelled
675. A promises to perform a dance in B’s theatre. d. Void ab initio
A dies. The contract is 682. The alternation of a contract means alteration
a. Void in the ……. of an existing contract.
b. Discharged a. parties
c. Rescinded b. time
d. Voidable c. parties and terms
676. Assignment by operation of law takes place d. terms
a. by the mutual consent of the parties 683. In which of the ways can a contract be
b. by the will of either party discharged by impossibility of performance?
c. when the subject matter of a contract a. Initial Impossibility
ceases to exist b. Supervening Impossibility
d. by the death of a party to a contract c. Either (a) or (b)
677. When person is declared insolvent, he is d. Neither (a) nor (b)
………… all his contractual liabilities incurred prior 684. In which of the ways can a contract be
to date of insolvency order. discharged by impossibility of performance?
a. penalized for a. Pre contractual Impossibility
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b. Post contractual Impossibility a. the same parties


c. Either (a) or (b) b. different parties
d. Neither (a) nor (b) c. either (a) or (b)
685. In which of the ways can a contract be d. neither (a) nor (b)
discharged by breach? 693. Alteration may take place between
a. Anticipatory Breach a. the same parties
b. Actual Breach b. different parties
c. Either (a) or (b) c. either (a) or (b)
d. Neither (a) nor (b) d. neither (a) nor (b)
686. In which of the ways can a contract be 694. Remission may take place between
discharged by agreement between parties? a. the same parties
a. Novation b. different parties
b. Rescission c. either (a) or (b)
c. Alteration d. neither (a) nor (b)
d. All of the above 695. Waiver may take place between
687.In which of the ways can a contract be a. the same parties
discharged by agreement between parties? b. different parties
a. Novation c. either (a) or (b)
b. Merger d. neither (a) nor (b)
c. Remission 696. In discharge of contract by novation, the
d. All of the above consideration for the new contract is
688. In which of the ways can a contract be a. the discharge of the old contract
discharged by agreement between parties? b. separately supplied
a. Remission c. decided by the parties
b. Waiver d. all of the above
c. Either (a) or (b) 697. For discharge of a contract by novation,
d. Neither (a) nor (b) consent of …………. is required
689. The original contract need not be performed if a. Promisee only
there is b. all the parties
a. rescission of contract c. at least two of the parties
b. novation of contract d. promisor only
c. alteration of contract 698. Rescission of a contract means
d. All of the above a. termination of contract
690. If a new contract is substituted in place of an b. the renewal contract
existing contract, it is called c. alteration of contract
a. Alteration d. substitution of new contract in place of
b. Rescission earlier one
c. Novation 699. Rescission may occur
d. Waiver a. by mutual agreement
691. For a valid novation, new contract must be b. where one party fails to perform his part of
made the promise
a. before making of the original contract c. either (a) or (b)
b. during the continuance of the original d. neither (a) nor (b)
contract 700. Where a party under a voidable contract,
c. after the conclusion of the original contract decides to rescind the same, the other party is
d. all of the above a. guilty of breach of contract
692. Novation may take place between b. discharged from his promise
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c. entitled for damages b. Remission


d. All of the above c. Alteration
701. Rescission of a voidable contract shall be d. Rescission
communicated or revoked in the same manner as 708. Remission is the acceptance of
the communication or revocation of a. a lesser sum than what was contracted for
a. Breach b. a lesser fulfillment of the Promise made
b. Acceptance c. either (a) or (b)
c. Proposal d. Neither (a) nor (b)
d. Impossibility 709. Under remission, a Promisee may
702. A contracts with B to deliver goods to B on 1st a. remit the whole or part of the performance
July. A does not deliver goods on 1st July. B may of a promise
rescind the contract. The contract is rescinded due b. extend time of performance
to c. accept any other satisfaction instead of
a. Mutual decision performance
b. A’s failure to perform d. All of the above
c. Impossibility of performance 710. A owes B Rs 50,000, Due date for payment is
d. Revocation of proposal 25th March. A pays to B Rs 30,000 on 25th March
703. A contracts with B to deliver goods to B on 10 who accepts it in full satisfaction of the debt. The
th July. A fails to deliver goods on 10th July. It is debt is discharged on account of
said a. remission
a. Anticipatory Breach of contract b. extension time of performance
b. Actual Breach of contract c. novation
c. Novation of contract d. All of the above
d. Revocation of proposal 711. Abandonment of a right under the contract is
704. A, Hindu, who was already married, contracts called
to marry B, a Hindu girl. The contract is void on the a. Waiver
ground of b. Breach
a. Initial impossibility c. Rescission
b. Supervenining impossibility d. Alteration
c. Social impossibility 712. Intentional relinquishment of a right under the
d. No consideration contract is called
705. When the parties mutually agree to change a. Waiver
certain terms of contract. This is called b. Breach
a. rescission of contract c. Rescission
b. novation of contract d. Alteration
c. alteration of contract 713. Giving up of right under the contract is called
d. remission of contract a. Waiver
706. In case of alteration, there is a change in the b. Breach
parties and new parties may be included. c. Rescission
a. True d. Alteration
b. Partly True 714. No consideration is necessary for a waiver.
c. False a. True
d. None of the above b. Partly True
707. If a person accepts a lesser sum of money c. False
than what was contracted for in discharge of the d. None of the above
whole debt, it is known as 715. In case of Novation, there is
a. Waiver
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a. change to some of the terms and conditions 723. Where one party to a contract declares his
of the original Contract intention of not performing the contract before the
b. substitution of an existing contract with new performance is due, it is called
one a. Actual Breach
c. either (a) or (b) b. Anticipatory Breach
d. neither (a) nor (b) c. Either (a) or (b)
716. In case of Alteration, there is d. Neither (a) nor (b)
a. change to some of the terms and conditions 724. Anticipatory Breach may take place
of the original contract a. Expressly
b. substitution of an existing contract with new b. Impliedly
one c. Either (a) nor (b)
c. either (a) or (b) d. Neither (a) nor (b)
d. neither (a) nor (b) 725. Anticipatory Breach may take place when a
717. Novation can be made by party
a. change in the terms of the contract a. Refuses to perform his promise Under the
b. change in the contracting Parties contract
c. either (a) or (b) b. Deliberately disables himself from
d. neither (a) nor (b) performing the promise before due date of
718. Alteration can be made by performance
a. change in the terms of the contract c. Neither (a) or (b)
b. change in the contracting Parties d. Either (a) nor (b)
c. either (a) or (b) 726. A agreed to supply certain goods to B which
d. neither (a) nor (b) were to be imported by c. But C failed to import the
719. In case of Alteration goods. In this case, the contract is
a. Old terms and conditions need not be a. Discharged
performed b. Not discharged
b. New terms and conditions must be performed c. Voidable
c. Both (a) and (b) d. Impossible to perform
d. neither (a) nor (b) 727. The breach of contract means the
720. Where one party to a contract fails or refuses a. Performance of contract by both the parties
to do his part of the promises it is called b. Failure of a party to perform his obligations
a. Breach of contract c. Payment of compensations due to
b. Cancelation of contract nonperformance
c. Either (a) or (b) d. Postponement of the performance of
d. Neither (a) nor (b) contract
721. Actual Breach may take place 728. A contracted to supply 200 bags of rice to B
a. Expressly on 30th December, 2008. After supplying 20 bags
b. Impliedly of rice. A informed B that he will not supply
c. Either (a) or (b) remaining bags of rice to B. In this case,
d. Neither (a) nor (b) a. There is anticipatory breach of contract
722. Actual Breach may take place b. There is actual breach of contract
a. on the due date of performance c. Both of the above
b. during the course of performance d. None of the above
c. neither (a) or (b) 729. A contracts to marry B. Before the agreed date
d. either (a) or (b) of marriage, A marries C. Here, B is entitled to sue
A for
a. Actual Breach in an express manner
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b. Anticipatory Breach in an express manners 736. In case the performance of a contract


c. Actual Breach in an implied manner becomes more difficult due to some unexpected
d. Anticipatory Breach in an implied manner events, than the contract
730. In case of Anticipatory Breach, the Promisee a. Becomes void on account of impossibility
can b. Becomes voidable on account difficulty
a. Put an end to the contract c. is discharged on account of impossibility
b. Elect to keep the contract alive till the date d. is not discharged on account of impossibility
of performance 737. A contract to buy B’s scooter for Rs 10,000,
c. Either (a) or (b) but breaks the promise. What compensation must
d. Neither (a) nor (b) A pay to B?
731. Where in an anticipatory breach, the Promisee a. The excess amount of the contract price
opts to put an end to the contract and treat the over the price which B can obtain for the
anticipatory breach as actual breach of contract, scooter at the time of breach of promise
the Promisee b. The contract price of Rs 10,000
a. is excused from performance of his Promise c. The price which B demands
b. has to perform his part of the promise d. None of the above
c. has to perform his part of the promise to the 738. In ………………. contracting parties may not
extent of benefits received by him remain same.
d. has to consider the contract as illegal a. Remission
732. Where a party to contract transfers his rights b. Recission
under the contract to another person, it is legally c. Novation
known as d. Alteration
a. Novation of contract
b. Rescission of contract
c. Waiver of contract Remedies for Breach of Contract
d. Assignment of contract
739. The remedies available to a person, suffering
733. The assignment of contract by operation of
from breach of contract are
law takes place
a. Suit for Damages
a. On the death of party
b. Suit for Injunction
b. With mutual consent of parties
c. Quantum Meruit
c. On confirmation by legal representatives
d. All of the above
d. Either (b) or (c)
740. The remedies available to a person, suffering
734. The term “frustration” is used in the English
from breach of contract are
law which is the parallel concept
a. Recession of Contract
a. Initial impossibility
b. Stay order from court
b. Supervening impossibility
c. Quantum Meruit
c. Commercial impossibility
d. All of the above
d. Public policy
741. Which of these are remedies to the aggrieved
735. A contract is void on the ground of initial
party, in case of breach of contract?
possibility
a. Rescission of contract
a. Only where it is unknown to the parties
b. Suit for Specific Performance
b. Only where it is known to the parties
c. Both (a) and (b)
c. Whether it is known or unknown to the
d. Neither (a) nor (b)
parties at the time of agreement
742. The contract may be rescind by
d. When it is known to the third parties
a. Aggrieved party
b. Court
c. Either (a) or (b)
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d. None of the above 750. In which of the following situations, specific


743. The Court may grant rescission where the Performance is not granted?
contract is a. where monetary compensation is an
a. unlawful adequate relief
b. void b. where the contract is impersonal in nature
c. unenforceable c. where monetary compensation is not an
d. All of the above adequate relief
744. The court may grant rescission where the d. Both (a) and (b)
contract is 751. In which of the following situations specific
a. unlawful performance is not granted?
b. valid a. where monetary compensation is an
c. unenforceable adequate relief
d. All of the above b. where the contract is of a personal skill
745. Where the Court orders the defaulting party to c. either (a) or (b)
carry out the promise according to the terms of the d. neither (a) nor (b)
contract, it is called 752. In which of the following situations, specific
a. Quantum Meruit Performance is not granted?
b. Rescission a. where it is not possible for the Court to
c. Injunction supervise Performance of contract
d. Specific Performance b. where the contract is ultra-vires
746. Which remedy for breach of contract may be c. either (a) or (b)
ordered by the court? d. neither(a) nor (b)
a. specific performance 753. …………. means an order of the Court
b. injunction restraining a person from doing what he promised
c. either (a) or (b) not to do.
d. both (a) or (b) a. Quantum Meruit
747. Specific Performance may be ordered by the b. Rescission
Court when c. Injunction
a. the contract is voidable d. Specific Performance
b. damages are an adequate remedy 754. A, a singer, agreed with B to perform at his
c. damages are not an adequate remedy theatre for two months, on a condition that during
d. Quantum meruit is not possible that period, he would not perform anywhere else, B
748. Specific Performance can be granted by court could move to the Court for
where a. grant of injunction restraining A from
a. monetary compensation is not an adequate performing in other places
relief b. specific performance
b. it is not possible to measure the actual c. allowing B to perform in other places
damages d. all of the above
c. either (a) or (b) 755. Quantum Meruit is __________ word
d. neither (a) or (b) a. English
749. In case of breach of contract of sale of some b. French
antique goods, the Court may grant c. Latin
a. Quantum Meruit d. German
b. Rescission 756. Quantum Meruit means
c. Specific Performance a. a non-gratuitous promise
d. Injunction b. as gratuitous promise
c. as much as is earned
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d. as much as is paid a. There need not be any contract between the


757.When a person has done some work under a parties
contract, and other party repudiates the contract b. The contract between the parties may also
then the party who performed the work, can claim be void
remuneration for done. This is based on the c. Either (a) or (b)
principle of d. Neither (a) nor (b)
a. Rescission 764. When an indivisible contract for lump sum
b. Quantum Meruit amount is completely performed but badly, the
c. Injunction person who has performed, can
d. Specific Performance a. claim the lump sum amount
758. To claim remedy under Quantum Meruit, the b. claim the lump sum amount less deduction
original contract for bad work
a. should remain intact c. not claim any amount at all
b. must be discharged d. perform the work again
c. must be fully performed 765. The aggrieved party is entitled to claim
d. all of the above monetary compensation for the loss caused due to
759. Remedy under Quantum Meruit, is available to non-performance of promise. This is called
a. Party at fault a. Damages
b. Party not at the fault b. Restitution
c. Either (a) or (b) c. Quantum Meruit
d. Both (a) and (b) d. Injunction
760. Quantum Meruit is not applicable when 766. In case of breach of contract, the
a. Indivisible Contract not performed compensation can be claimed for
completely a. remote consequence of the breach
b. Divisible contract not performed at all b. the natural consequence of breach
c. Work is performed gratuitously c. indirect consequence of the breach
d. All of the above d. All of the above
761. if an agreement has become void, any 767. In case of breach of contract, the Indian Law
advantage received by party under such agreement awards damages
shall restore it, or to make compensation for it. This a. For loss of profit which may have been
is based on the principle of earned
a. Specific Performance b. Which arose naturally
b. Rescission c. As matter of penalty
c. Injunction d. To compensate party from physical loss
d. Quantum Meruit 768. While determining damages, which of the
762. A, a businessman leaves his goods at B’s following are taken into account?
place by mistake. B treats the same as his own and a. inconvenience caused by nonperformance
uses it. B is bound to compensate A for it, under b. motive of breach
the principle of c. manner of breach
a. Specific Performance d. All of the above
b. Reemission 769. The measure of damages in case of breach of
c. Special damages a contract is the difference between the
d. Quasi contract a. contract price and the market price at the
763. Compensation is to be paid by the party date of breach
receiving the benefit, where an act is done by b. contract price and the maximum market
another party, without an intention of price during last 6 months
gratuitousness. For this purpose
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c. contract price and the price at which the b. Anticipatory Breach


plaintiff might have sold the goods c. Remoteness of Damages
d. contract price and the price fixed by Court d. Bilateral Mistake of Fact
770. A contracts to deliver 1,000 bags of rice at Rs 776. H’s mill stopped due to breakdown of a shaf,
100 per bag on a future date. On the due date he which in was delivered to B, a common carrier to be
refuses to deliver. Market Price on that day is Rs taken to the manufacturer for repairs. H did not
120 per bag. Which Damages can be granted by communicate to B, that delay in delivery would
court? cause loss of profits. For some reason, the delivery
a. Ordinary damage was delayed by B beyond reasonable time. Here
b. Special damages a. H can rescind the contract
c. Remote damages b. H cannot claim loss of profits from B
d. Vindicative damages c. H can claim loss of profits from B
771.A contract to deliver 1,000 bags of rice at Rs d. H can claim loss of profits from the
100 per bag on a future date. On due date he manufacturer
refuses to deliver. Market price on that day is Rs 777. The damages awarded by way of punishment
120 per bag. The ordinary Damages will be are called
a. Rs 20,000 a. Special Damages
b. Rs 1,20,000 b. Ordinary Damages
c. Rs 1,00,000 c. Exemplary Damages
d. Rs 20 d. Nominal Damages
772. Damages which an aggrieved party claims. 778. Nominal damages are awarded to indicate that
beside general damages for any loss he has the party has …………….
suffered owing to special circumstances known to a. won the case
both the parties at the time of signing the contract b. actually suffered the loss
are called c. suffered huge loss
a. Vindictive Damages d. suffered unusual loss
b. Nominal Damages 779. Exemplary damage is also known as
c. General Damages a. vindictive damages
d. Special Damages b. punitive damages
773. When there is breach of contract, special c. Direct damages
damages are awarded d. Either (a) or (b)
a. Only when there are special circumstances 780. Vindictive Damages have been awarded
b. Only when there is special loss a. for a breach of promise to marry
c. When there is a notice of the likely special b. for wrongful dishonour of a cheque
loss c. Either (a) or (b)
d. All of the above d. Neither (a) nor (b)
774. When there are certain extraordinary 781. Nominal Damages can be
circumstances present and it is communicated to a. Claimed by the aggrieved party as a matter
the promisor, non-performance of promise entitles of right
the Promisee to claim b. awarded only at the discretion of the Court
a. Ordinary Damages c. claim by the aggrieved party for loss
b. Special Damages d. all of the above
c. Either (a) or (b) 782. Liquidated damages means an amount of
d. Both (a) and (b) ………. that may result from breach of contract
775. Hadley vs. Baxendale case is a leading case a. actual loss
on b. loss suffered
a. Breach of Implied Term c. pre-estimated probable loss
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d. pre-estimated actual loss c. less than probable damages


783. General damages arises d. any of the above
a. Naturally in the usual course from the 790. Where the amount payable in case of breach
breach of contract itself is fixed in advance by way of liguidated damages,
b. In the unsual circumstance from the breach the aggrieved party may claim
of contract a. a reasonable compensation for the breach
c. In the special circumstance from breach of b. the amount so fixed in the contract
contract c. (a) or (b) whichever is lower
d. When special loss from breach of contract d. (a) or (b) whichever is higher
784. Duty to mitigate damages on the part of 791. Liquidated damages are calculated ………. A
injured party arises in case of contract
a. anticipatory breach a. at the time of making
b. actual breach b. after making
c. neither (a) nor (b) c. at the time of performance of
d. either (a) or (b) d. either (a) or (b)
785. Pre estimated amount of compensation 792. Penalty for breach of contract are estimated
payable in case of breach of contract is called …… a contract
a. Penalty a. at the time of making
b. Liquidated damages b. after making
c. Either (a) or (b) c. at the time of performance of
d. Neither (a) nor (b) d. either (b) or (c)
786. Which of the following is correct? 793. A stipulation for increased interest from the
a. Liquidated damages are pre-estimated date of default is known as
probable damages a. compensation
b. Penalty is imposed by way of punishment b. penalty
for breach of contract c. Liquidated damages
c. Courts generally do not award vindictive d. Damages
damages 794. Quasi Contract is based upon the principle of
d. All of the above a. Equality
787. The intention for fixing Liquidated Damages is b. No unjust enrichment of a part at the
a. Recovery of damages that might arise due cost of another
to breach c. Neither (a) nor (b)
b. Recover more amount of damages than d. Both (a) and (b)
suffered due to breach 795. A Quasi Contract
c. neither (a) or (b) a. is a contract
d. both (a) and (b) b. is an agreement
788. If parties make no attempt to estimate the loss c. has only a legal obligation
but in advance, fix an amount payable on non- d. is none of these
performance of the contract, such amount is called 796. Which of the following is incorrect?
a. Exemplary Damages a. In Quasi-contract, the promise to pay is
b. Special damages always an implication of law and not of
c. Liquidated Damages facts
d. Penalty b. Quasi-contracts are not contracts at all
789. The essence of Liquidated damages is that is c. A quasi-contracts is implied in law
should be d. A quasi-contracts is not a real contract
a. genuine pre-estimate of damages
b. more than probable damages
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797. Claim for necessaries supplied to a person c. made by


incompetent to contract, from the property of such d. both (a) and (c)
person. It is covered under concept of 804. Which of the following is incorrect?
a. Quasi contract a. Claim on quantum meruit arises when a
b. Caveat emptor contract has become void
c. Contigent contract b. Claim on quantum meruit does not arise
d. Wagering agreement when the contract is divisible
798. Which of the following is correct? c. Specific performance order is possible only
a. Quasi contracts are intentionally made by by a Court
the parties d. Both liquidated damages and are stipulated
b. Quasi contracts are imposed by law at the time of formation of contract
c. Quasi contracts are based on implied 805. A person enjoying the benefits of a lawful non-
intentions of the parties gratuitous act of another
d. Both (b) and (c) a. is not liable to compensate that another
799. In case of necessaries supplied to a person b. that another cannot claim any compensation
incompetent to contract, which of the following is c. is liable to compensate for that
true? d. has to perform the same non-gratuitous act
a. Property of the incapable person shall be in return
liable 806. Obligation of a person enjoying benefit of non-
b. The incapable person is not liable gratuitous act arises in respect of
personally a. Lawful acts only
c. Where the incapable person does not own b. Illegal acts only
any property, nothing shall be payable c. Either (a) nor (b)
d. All of the above d. Both (a) and (b)
800. Which of the following is correct? 807. A saves B’s goods from fire.
a. A quasi contract is not based on the ground a. A is not entitled to compensation from B
of natural justce b. A is entitled to any compensation from B
b. Quasi contract are based on express c. B must compensate A
intentions of the parties d. None of the above
c. Quasi contract give rise to obligations 808. A finder of goods means
similar to that of a true contract a. a person who finds the goods belonging to
d. All of the above another
801. A who supplies the wife and children of B, a b. a person who returns any goods to the
lunatic, with necessaries suitable to their condition owner
in life, is entitled to be reimbursed from c. a person who finds goods belonging to
a. B’s property another, and takes them into his custody
b. B’s personally d. any of the above
c. B’s wife and children 809. A finder of goods
d. As directed by Court a. has no responsibility for the goods
802. A quasi contract is not a ……. Contract. b. is subject to the same responsibility as a
a. real bailee
b. valid c. is the owner of the goods
c. real and valid d. None of the above
d. voidable 810. Responsibility of finder of lost goods is
803. A quasi contract is …….. law. covered by concept of ___________
a. entered by a. Quasi contract
b. creature of b. Wagering agreement
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c. Contigent contract 818. A contracts toi repair B’s house and receive
d. Caveat emptor payment in advance. A repairs the house, but not
811. A finder of lost goods is a according to contract.
a. Bailor a. B is entitled to recover from A the additional
b. Bailee cost of making the repairs as per the
c. True owner contract
d. Thief b. B is not entitled to recover any cost from A
812. A and B jointly owe Rs 10 lakhs to c. A pays c. B is entitled to recover penalty from A for
the amount to C and B, not knowing this fact, pays non performance of the contract
Rs 10 lakhs over again to C. d. None of the above
a. C is bound to repay the amount to be 819. A give B a bound for the repayment of Rs
b. C is bound to repay the amount to B and A 1,000 with interest at 12 percent at the end of six
jointly months, with a stipulation that, in case of default,
c. C is bound to repay the amount to A and B interest shall be payable at the rate of 15 percent
equally from the date of default.
d. C is not bound to repay the amounts to B a. B is entitled to recover from A, a reasonable
813. A Quasi- contract arises from compensation
a. the intention of parties b. B is not entitled to recover from A any
b. compliance of all legal formalities compensation
c. from a true contract c. B is entitled to recover from A,
d. from the principle of natural justice compensation and interest
814. Which of the following statements is correct d. Any of the above
with reference to quasi-contractual obligations? 820. Which of the following state is correct?
a. There is no real contract in existence a. Ordinarily, the damages for loss of
b. There is no offer and acceptance reputation are not recoverable
c. There is no intention to make a contract b. Nominal damages are very small in amount
d. All of the above c. Nominal damages are not small in amount
815. Ordering the relief by way of specific d. Both (a) or (b)
performance of contract, is
a. At the discretion of the Court
b. Right of a person and the court must give it
c. Provided in the Indian Contract Act
d. Both (a) and (b)
816. In which of the following cases, can specific
performance be allowed?
a. Contract to sing a song
b. Contract to paint a picture
c. Contract to enter into partnership at will
d. None of the above
817. Where the banker wrongfully dishonours a
customer’s cheque, the court may award
a. Ordinary damages
b. Special damages
c. Exemplary damages
d. None of the above
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The Basic of the Indian Contract Act, 1872


1.c 2. a 3. c 4. d 5.c

6. d 7. c 8. d 9.b 10 . b

11. b 12. d 13. c 14.d 15. a

16.c 17. d 18. b 19. b 20. a

21. a 22. d 23. b 24. a 25. b

26. d 27. d 28. a 29. a 30. b

32. b 33. c 34. c 35. d 36. a

37. d 38. c 39. c 40. b 41. b

42. a 43. a 44.c 45.a 46.b

48. a 49. a 50. a 51. b 52. c

53. c 54. c 55. a 56. d 57. d

58. d 59. a 60. c 61. d 62. d

63. d 64. a 65. a 66. c 67. a

68. b 69. a 70. d 71. d

Offer and Acceptance of the Offer


72. a 73. b 74. c 75. c 76. c

77. b 78. c 79. d 80. b 81. a

82. a 83. a 84. a 85. a 86. b


PANCHAKSHARI’s PROFESSIONAL ACADEMY Pvt. Ltd.

87. b 88. c 89. a 90. c 91. a 217.c 218.d 219.b 220.b 221.b

92. a 93. b 94. a 95. c 96. d 222.d 223.d 224.c 225.b 226.c

97. d 98. c 99. c 100. a 101. b 227.a 228.d 229.c 230.c 231.c

102. d 103. c 104. a 105. b 106. b 232.a 233.c 234.b 235.a

107. d 108. c 109. d 110. b 111. b


Consideration
112. c 113.c 114. a 115. a 116. a 236.b 237.c 238.d 239.c 240. b
117. a 118. d 119. d 120. c 121. c 241.d 242.c 243.b 244.d 245.b
122. a 123. a 124. c 125. d 126.d 246.a 247.a 248.b 249. b 250. d
127. b 128. d 129.c 130.c 131.a 251.d 252.d 253.c 254.c 255.b
132.c 133.b 134.b 135.d 136.d 256.b 257.c 258.c 259.a 260.b
137.d 138.d 139. b 140. b 141. c 261.a 262.d 263.b 264.a 265.c
142. a 143.c 144.b 145.c 146.d 267.b 268.c 269.c 270.a 271.a
147.d 148.b 149.c 150.b 151.d 272.b 273.a 274.d 275.c 276.b
152.c 153.d 154.b 155.c 156.d 277.a 278.a 279.c 280.a 281.b
157.d 158.a 159.c 160.c 161.d 282.a 283.c 284.d 285. b 286.c
162.d 163.b 164.a 165.c 166.d 287. a 288.a 289.d 290.b 291.d
167.d 168.d 169.a 170.c 171.a 292.b 293.d 294.b 295.a
172.b 173.d 174.d 175.b 176.c
Free Consent
296.c 297.b 298 d 299.c 300.c
Capacity of the Party
177.c 178. b 179. c 180. d 181. c 301.a 302.d 303.c 304.d 305.d
182. c 183. c 184. c 185. c 186. a 306.c 307.b 308.c 309.b 310.b
187. c 188. c 189. a 190. b 191. d 311.d 312.c 312 b 314.c 315.b
192. a 193. b 194. b 195.c 196.c 316.b 317.c 318.c 319.a 320.c
197. b 198. c 199. b 200. d 201. d 321.d 322.c 323.c 324.d 325.a
202. d 203.a 204.c 205.b 206.a 326.a 327.d 328.d 329.c 330.d
207.d 208.d 209.c 210.d 211.b 331.b 332.b 333.a 334.c 335.d
212.a 213.c 214.d 215.b 216.d 336.c 337.c 338.b 339.a 340.d
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341.d 342.c 343.b 344.c 345.b 462. d 463. a 464. b 465. a 466. a

346.c 347.d 348.a 349.d 350.d 467. d 468. d 469. b 470. a 471. b

351. d 352. c 353. a 354. b 355. a 472. a 473. a 474. c 475. c 476. b

356. a 357. d 358. d 359. d 360. d 477. c 478. b 479. c 480. a 481. b

361. d 362. a 363. d 364. a 365. b 482. b 483. b 484. a 485. d 486. d
366. b 367. b 368. a 369. d 370. a 487. b 488. c 489. d 490. d 491. b
371. c 372. b 373. b 374. d 375. c
492. a 493. b 494. d 495. c 496. c
376. a 377. a 378. a 379. a 380. d
497. b 498. b 499. b 500. d 501. c
381. d 382. b 383. d 384. a 385. a
502. b 503. a 504. c 505. d 506. b
386. c 387. d 388. d 389. b 390. a
507. d 508. a 509. c 510. d 511. a
391. d 392. c 393. d 394. a 395. d
512. a 513. d 514. c 515. d 516. c
396. d 397. c 398. b 399. b 400. a
517. a 518. c 519. c 520. b 521. a
401. b 402.d 403. c 404. a 405. a
522. a 523. b 524. a 525. a 526. c
406. a
527. c 528. b 529. a 530. c 531. d

532. c 533. a 534. a 535. a 536. b


Void Agreements and Contigent Contract
407. c 408. d 409. d 410. c 411.d 537. c 538. a 539. c 540. c 541. c

412. a 413. c 414. d 415. b 416. b 542. c 543. a 544. d 545. b 546. b

417. c 418. a 419. a 420. b 421. c 547. a 548. b 549. b 550. b 551. d

422. c 423. d 424. c 425. a 426. b 552. c 553. c 554. d 555. a 556. c
427. d 428. d 429. b 430. a 431. b 557. b 558. a 559. d 560. a 561. d
432. b 433. d 434. c 435. b 436. d Performance of the Contract
562. c 563. c 564. a 565. d 566. d
437. d 438. a 439. a 440. c 441. a
567. a 568. d 569. c 570. d 571. c
442. b 443. d 444. d 445. b 446. c
572. c 573. c 574. b 575. a 576. b
447. d 448. b 449. b 450. d 451. b

452. c 453. b 454. b 455. b 456. c 577. c 578. a 579. d 580. d 581. d

457. a 458. d 459. a 460. d 461. a 582. d 583. d 584. d 585. d 586. c
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587. a 588. b 589. c 590. a 591. d 713. a 714. a 715. b 716. a 717. c

592. d 593. d 594. c 595. a 596. c 718. a 719. c 720. a 721. c 722. d

597. c 598. a 599. a 600. c 601. a 723. b 724. c 725. d 726. b 727. b

602. c 603. d 604. b 605. a 606. d 728. b 729. d 730. c 731. a 732. d

607. a 608. a 609. a 610. b 611. b 733. a 734. b 735. c 736. d 737. a
612. a 613. c 614. d 615. c 616. d 738. c
617. d 618. c 619. b 620. a 621. d
Remedies for Breach of contract
622. a 623. a 624. b 625. d 626. b 739. d 740. d 741. c 742. c 743. a

627. a 628. a 629. a 630. b 631. c 744. a 745. d 746. c 747. c 748. c

632. d 633. a 634. a 635. a 636. a 749. c 750. d 751. c 752. c 753. c

637. b 754. a 755. c 756. c 757, b 758. b

759. c 760. d 761. d 762. d 763. c


Discharge of Contract
638. d 639. a 640. a 641. d 642. c 764. b 765. a 766. b 767. b 768. d
643. c 644. c 645. b 646. a 647. a
769. a 770. a 771. a 772. d 773. c
648. b 649. d 650. a 651. a 652. c
774. d 775. c 776. b 777. c 778. a
653. c 654. a 655. b 656. b 657. a
779. d 780. c 781. b 782. c 783. a
658. b 659. c 660. b 661. a 662. d
784. d 785. c 786. d 787. a 788. d
663. a 664. d 665. d 666. d 667. a
789. a 790. c 791. a 792. a 793. d
668. d 669. c 670. d 671. b 672. d
794. d 795. d 796. b 797. a 798. b
673. d 674. a 675. b 676. d 677. c
799. d 800. c 801. a 802. a 803. b
678. b 679. c 680. d 681.b 682. d
804. b 805. c 806. a 807. a 808. c
683. c 684. c 685. c 686. d 687. d
809. b 810. a 811. b 812. a 813. d
688. c 689. d 690. c 691. b 692. c
814. d 815. a 816. d 817. c 818. a
693. a 694. a 695. a 696. a 697. b
819. a 820. d
698. a 699. c 700. b 701. c 702. b

703. b 704. a 705. c 706. c 707. b

708. c 709. d 710. a 711. a 712. a