Legal Aspects of Business MCQs

UNIT-9 MCQ FOR COMMERCE LEGAL ASPECTS DIWAKAR EDUCATION HUB
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) Polloc
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)
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
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 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
contract is not void ab intio. of
a) Express Contract
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
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 A contract entered on 31st October, 1872 is
presumption 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)
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
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
B makes to memorize a proposal to
b. By SMS
his par-rot and sends him to A to
c. By body language
recite the proposal. The parrot does
d. By both (a) and (c)
so. The proposal is
A proposal may consist of a promise for
a. Valid
a) Doing an act
b. Void
b) Abstaining from doing an act
c. Unlawful
c) Either (a) or (b)
d. Illegal
d) Returning the consideration
A bid at an auction sale is
76. An offer may be made
a. An imlied offer
a. By words
b. An express offer
b. By conduct
c. An invitation to offer
c. Either (a) or (b)
d. An invitation to come
d. Neither (a) nor (b)
84. Forbearance of party from doing some-
77. Offer can be accepted by
thing also constitutes a valid offer.
a) Offeror
a) True
b) Offeree
b) Party True
c) Promisor
c) False
d) Either (a) or (b)
d) None of the above
78. An acceptance of offer may be made
85. An offer which is allowed to remain
a) By words
open, for acceptance over a period of
b) By conduct
time is known as a/ an
a. Standing Offer
d) Neither (a) nor (b)
b. Specific Offer
A specific offer is the one which is made
c. Express offer
a. By A to B
d. Implied offer
b. By a father to his only son for sale of
86. An offer made to a specific person is
his factory to him
known as
c. By a father of a girl, to the father of
a. Standing Offer
the only son for her marriage
b. Specific offer
d. By all of the above
c. Special offer
80. If a says to b “I offer to sell may car to
d. Separate Offer
you for Rs. 2 Lakhs and B accepts the
87. An offer made to group of persons is
offer by saying clearly “I accept your
known as
offer”. It is an
a) Standing Offer
a) Implied offer
b) Specific offer
b) Express offer
c) Special offer
c) General offer
d) Separate Offer
d) Counter offer
88. ……. Can be accepted only by the
A offers to sell his car on internet, it is
person or group to whom the offer is
a) Express offer
made
b) Implied offer
a. Standing Offer
c) Particular offer
b. Specific offer
d) No offer
a) True
c. Special offer
b) Partly True
d. Separate Offer
c) False
A advertises in paper that any person
who found his lost dog can get a reward
95. Terms of an offer must be
of Rs. 5000. Any person who finds the
a. Ambiguous
dog can claim the reward. This is a case
b. Uncertain
of
c. Definite
a. General offer
d. Vague
b. Specific offer
96. An offer may be
c. Implied offer
a) conditional
d. Invalid offer
b) Unconditional
90. To make a valid General offer, it is
c) Both (a) and (b)
necessary for the offeree to be known to
the Offeror at the time of Making the
97. An offer may be
offer.
a) Expressed
a. True
b) Implied
b. Party true
c) Both (a) and (b)
c. False
d. None of the above
A offers B to sell his house for Rs.
91. In a Specific offer, it is necessary for the
15 lakh and directs him to send
offeree to be known to the Offerer at the
his acceptance only by e-mail B
time of Making the offer.
sends a letter of acceptance by
a) True
post. This is
b) Party true
a) valid acceptance
c) False
b) invalid acceptance
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
A offered to take a house on lease
knowledge of
for a period of 3 years if the house
a. The person to whom it is made
was hand- solely decorated. Here,
b. The proposer
there is no offer since
a. there is no legal obligation
d. The central government
b. there is no communication of offer
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
to create legal relations.
c) An express contract
101. Which of the following conditions is
d) No contract
not necessary for a valid offer?
108. Which of the following results in an
a) Intention to create legal relation
offer ?
b) Unconditional terms
a) A declaration of intention
c) Certainty of terms
b) An invitation to offer
d) Communication to the person to
c) An advertisement offering reward to
whom it is made
anyone who finds the lost dog of the
102. Which of the following conditions is
advertiser
not necessary for a valid offer?
d) An offer made in a joke
a) intention to obtain consent of the
109. Which of the following is an invitation
offeree
to offer?
b) Communication to the person to
a) A tender to supply goods at a certain
whom it is made
time
c) Intention to create legal obligation
b) A request for a loan
d) Expressed in written form
c) Bids in an auction sale
103. When a person invites the other paty
d) A catalogue of goods for sale
to make an offer he is said to make a/an
110. Price Lists and Catalogues,
a) Proposal
Advertisements in news papers, and
b) Offer
enquiries from customers are
c) Invitation to offer
a) Offers
d) Acceptance
b) Invitations to offer
104 Is expression of initial intention.
c) Acceptances
a) Invitation to offer
d) Cross-offers
b) Offer
111. Goods displayed in a shop with a
c) Proposal
price label is
d) Acceptance
a) An offer
105 is expression of final will ingness
b) An Invitation to offer
to perform a promise.
c) A Counter offer
d) A contra-offer
b) Offer
112. A notice inviting tender is an offer.
c) Bid
a) True
d) Acceptance
b) An Invitation to Offer
106. Application filled in by a prospective
c) A Counter – Offer
applicant to the Company is an example
d) A Contra – Offer
of
113. ‘A’ invites tenders for the supply of 10
quintals of cotton. ‘B’, ‘C’ and ‘D’ submit
b) Offer
their tenders. A contract is concluded
c) Bid
when
d) Acceptance
a) ‘A’ invites tenders
107. Statement of lowest price at which the
b) ‘A’ receives tenders of B,C and D
seller would sell his goods constitutes
c) ‘A’ accepts the tender of any of the
a) A valid contract
parties
b) A implied contract
a) Non Acceptance of Condition
d) There is no contract at all
b) Acceptance not in the prescribed
114. There is a Counter- offer when
mode
a. The offeree gives conditional
c) Change in law or circumstances
acceptance
d) All of the above
b. The Offeree makes fresh offer instead
120. An offer comes to an end after the
of accepting original offer.
expiry of
c. The offeree makes some query
a) Time stipulated for acceptance
d. The offeree accepts it
b) A reasonable time
115. When the offers made by two persons
to each other containing similar terms of
d) Nether (a) nor (b)
bargain cross each other in post, they
121. An offer lapses to an end when the
are known as
Offeree
a) Cross Offers
a) Fails to fulfill a condition precedent to
b) implied Offers
acceptance
c) Direct Offers
b) Does not accept the condition
d) Express offers
116. A offers to sell his car for Rs. 50,000
to B.B says he would buy it for Rs.
122. A proposal is revoked by the death of
40,000. This is a case of
the Proposer, if the fact of his death
a) Counter offers
comes to the Knowledge of the Acceptor
b) Implied offers
a. Before acceptance
c) Direct offers
b. After acceptance
d) Express offers
c. During acceptance
117. A sends a letter to B Proposing to sell
d. Any of the above
his Land. B Sends his acceptance by
123. Death of offeree before acceptance
post. A can revoke the offer at any time
terminates the offer.
before B posts his letter of acceptance,
a) True
but not afterwards.
b) Partly True
a) True
c) False
b) Partly True
c) False
124. A applied for 1000 shares in a
Company on 1st May. The Company
118. In which of the following
allotted shares on 1st November of that
circumstances, does the offer come to
year A refused the Shares. Is A’s action
an end ?
valid ?
a) Lapse of time
a) Yes , Shares Cannot be allotted oon
b) Counteroffer
the faith of letter Written by A
c) Death of offerer or offeree before
b) Yes , Shares Cannot be allotted in the
acceptance
second half of a calendar year
d) All of the above
c) Yes , Offer lapsed as it was not
119. In which of the following
accepted within a reasonable time
Circumstances. Does the offer come to
an end ?
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
d) An unenforceable contract
b) Accepting conditions of the offer
143. Communication of acceptance is
c) Accepting consideration sent by the
complete as against the Proposer
offer
a) Only when it comes to the Knowledge
d) Both (b) and(c)
of the Proposer
138. Which of the following constitute
b) Only when the acceptance is
invalid acceptance?
communicated to the Proposer
a) Mental acceptance without
c) Only when it is put in the course of
communicating to Proposer
transmission to him so as to be out
b) Failure to respond to the Proposer
of power of the Acceptor
c) Silence on the part of the Offeree
d) All of the above
144. Communication of acceptance is
139. An offer was sent by post. The
complete as against the Acceptor, only
Acceptor wrote “Accepted” on the letter,
a) When it is put in the course
put it in his drawer and forgot about it.
transmission
The transactions is
b) When it comes to the knowledge of
a) A valid contract
the Proposer
b) Not an agreement as the acceptance
c) When it is communicated to the
was never communicated to the
Acceptor that the acceptance has
Proposer
reached the Proposer
c) A voidable Contract
d) All of the above
d) A void contract
145. Where a letter of acceptance sent by
140. A send a letter of acceptance to an
post is lost in transit there is
offer made by B. letter is stll in the
a) No contract as the acceptance has
transit of post. The part bound by he
not come to the knowledge of the
acceptance s
offeror
a) A
b) No contract as the acceptance has
b) B
not been communicated to the
c) Both A and B
offeror
d) None
c) A contract as the letter of acceptance
141. When no mode is prescribed by the
is put in the course of transmission
of feer for the acceptance of his offer,
d) All of the above
such acceptance shall be made.
146. Which of the following is incorrect?
a) By telephone
a) A valid contract results from identical
b) As desired by the offeree
cross offers
c) In some usual and reasonable
b) Communication of an offer is
manner
complete when the letter of offer is
posted though it has not reached
142. An acceptance is not according to the
the person to whom the offer is
mode prescribed, but the offeror decides
made
to keep quiet. In such a case there is
c) An offer and invitation to the offer are
a) A contract
the same
b) No contract
d) All of the above
c) A voidable Contract
c) The place where letter of acceptance
147. Even if the letter is lost in transit
is posted
acceptance is still valid provided that the
d) The place where offeror resides
Acceptor has
153. If an acceptance on phone is owned
a) Properly addressed is
by noise and is not heard by the
b) Affixed correct value of postage
proposer
stamps
a) A valid contract is concluded
c) Either (a) and (b)
b) There is a voidable contract
d) Both (a) and (b)
c) The contract is void
148. In case of special conditions in a
d) No contract is concluded
contract, it should be communicated to
154. When two persons agree to enter into
the offeree
an agreement in the future, there is
a) At any time
between them.
b) Before entering into contract or at the
a) A valid contract
time of Making offer
b) No contract
c) After contract is made
c) An agreement
d) Both (a) and (b)
d) A consensus
149. Conditions on the reverse of a train
155. The person making the offer is known
ticket, bill issued by service providers,
as ‘ offeror’ or promisor’ and to whom it
etc, are examples of
is made is known as
a) Normal business policy
a) Acceptor
b) Space saving measure
b) Acceptor for honour
c) Special conditions
c) Offeree or promise
d) General rules of contract Law
d) Contracting party
150. Where the acceptance is given on
156. The mode of the revocation of
telephone or fax, the place of contract is
proposal other than by communication is
a) The place from where the telephone
/ are
call is booked
a) Verbal notice
b) The place where the acceptance is
b) Lapse of time
heard or received
c) Death or insanity of the offeror
c) The place from where the offer was
d) Both (b) and (c) above
made
157. Which of the following statement is
d) The place where the offeror resides.
incorrect ?
151. An acceptance on telephone should
a) An offer may be made to the world at
be
large
a) Heard by the offeror
b) An offer may be positive or negative
b) Audible to the offeror
c) An offer may be expressed or limplied
c) Understood by the offeror
d) An offer must be made to a specific
d) All of the above
person
152. Where a contract is made by post,
158. A general offer made to the public at
the place of contract is
large is valid and binding contract is
a) The place from where the offer is
made with person who is having the
made
knowledge of the offer
b) The place where the offer is received
163. Which of the following is not the mode
a) Comes forward and acts accordingly
of the lapse of offer ?
b) Acts accordingly and his act is ratified
a) Lapse of time
by the offeror
b) Case against the offeror
c) Seeks offeror’s permission to accept
c) Insanity of offeror
the offer
d) Failure to accept condition precedent
d) Informs the public that he is willing to
164. An acceptance of offer, in ignorance
accept the offer
of the fact of death or insanity of the
159. In which of the following cases, the
offeror, is
principle of an offer to public at large
a) Valid acceptance
was recognized?
b) Not valid
a) Balfur vs Balfour
c) Illegal acceptance
b) Harvey vs Facie
d) Fraudulent acceptance
c) Carlill vs carbolic smoke ball co
165. Which of the following is correct ?
d) Both (a) and (b)
a) Acceptance can be made even
160. On the acceptance of an offer by the
without the knowledge of the offer
offeree, which of the following persons
b) An agreement with intention to create
becomes legally bound by the contract ?
legal liability is not enforceable in law
a) Only the acceptor as he has accepted
c) If the offeree does not accept the
the offer
offer according to the mode
b) Only the offeror, as his terms are
prescribed by the offeror, the offer
accepted
does not lapse automatically
c) Both the acceptor and the offeror
d) Communication of offer is complete
when the letter of offer is posted
161. Which of the following is the legal rule
166. A proposes, by letter, to sell a house
of a valid acceptance ?
to B for Rs 10,000. The communication
a) An acceptance must be given within
of the proposal is complete
prescribed or reasonable time
a) When B receives the letter
b) An acceptance must be given before
b) When A dispatches the letter
the lapse of offer
c) When A sign the letter
c) An acceptance may be expressed or
d) When B knows about the letter
implied
167. B accepts A’s proposal by a letter
d) All of the above
sent by post. The communication of the
162. Which of the following statement is
acceptance is complete as against A
incorrect?
a) When A receives the letter of
a) Death of the propser automatically
acceptance
rvoke the proposal
b) When B acknowledges it
b) Cross offers constitute valid
c) When it comes to the knowledge of A
agreement
d) When the letter is posted
c) The acceptor cannot reoke his
acceptance even if the letter of
a) Acceptance is to an offer what a
acceptance sent by him to the offeror
lighted mach to a train of gun powder
is lost in the transit
d) All of the above
b) Two identical cross offers two are not
a) An offer may be made to a particular
independent and separate offers
individual
c) A counter offer is conditional
b) An offer may be made to the public of
acceptance
the whole world at large
d) All of the above statements
c) An offer may be made to a section of
169. A revokes his proposal to B by
a public at large
telegram. The revocation is complete as
d) All of the above
against A
a) When the telegram is dispatched
a) Acceptance must precede an offer
b) When B receives the telegram
b) Acceptance may be given in any
c) When B confirms
manner unless the offeror insists
d) When A receives confirmation from B
acceptance in the prescribed manner
170. A revokes his proposal by telegram to
c) Silence always amounts to
B. it is complete as against B
acceptance
a) When the telegram is dispatched by
d) Acceptance may be valid even if the
A
offeree adds certain conditions
b) When B confirms it
176. Which of the following is incorrect ?
c) When B receives it
a) A rejected offer cannot be accepted
d) When A dispatches the telegram
b) Cross offers cannot be constructed as
171. B revokes his acceptance by
an agreement
telegram. B’s revocation is complete as
c) Counter offer constitute valid
against B
acceptance
a) When the telegram is dispatched
d) All of the above
b) When the proposer receives the
telegram
Capacity of the Party
c) When the proposer confirms
177. Capacity to contract means
d) When B receives the confirmation
a. The parties are financially sound to
172. B revokes his acceptance to A by
make contract
telegram. B’s revocation is complete as
b. The parties are physically able to
against A
enter into contract
a) When B dispatches the telegram
c. The parties are legally competent to
b) When it reaches him when B confirms
enter into contracts
it
d. All of the above
c) When B confirms it
178. Capacity to contract has been defined
d) When A notifies it to B
in
173. Which of the following statements is
a) Section 10
correct?
b) Section 11
a) A valid contract cannot result from
c) Section 12
identical cross offers
d) Section 25
b) A proposal when accepted becomes
179. Competence to contract mans
a promise
a) Age of the parties
c) A rejected offer cannot be accepted
b) Soundness of mind of the parties
d) All of the above statements
186. Only the official Receiver can enter
c) Both (a) and (b)
into contracts on behalf of the insolvent.
d) Intelligence of the parties
a) True
180. These two person can enter into a
b) Partly True
valid contract
c) False
a) Convict
d) None of the above.
b) Person of sound mind
187. A corporation cannot enter into
c) Divorcee lady
contracts that are
d) Both (b) and (c)
a) Ultra vires its Memorandum of
181. These two persons can enter into a
association
valid contract
b) Strictly of a personal nature as t is
a) One minor and a major person
only an artificial person
b) One minor and a person of sound
mind
c) Husband and Wife
188. Minor’s agreement is void but the
d) One major person and an insolvent
minor can enforce the agreement
person
against the other major party if minor is
182. A convict when undergoing
a) A third party in the agreement
imprisonment
b) Promisor in the agreement
a) Is capable of entering into a contract
c) A promise in the agreement and he
b) Is incapable of entering into a
has performed his part of promise
contract
under the agreement
c) Is capable of entering into a contract,
d) Relative of M.P
if it is permitted by the court
189. A minor’s agreement is void. This was
d) Is capable of passing the
held in the case of
consideration
a) Mohiri Bibee Vs Dharmadas Ghosh
183. A convict can enter into contract
b) Salma begam Vs Jan Mohamed Khan
when
c) Balfour vs balfour
a) He is on bail
d) Chinnaiya vs Ramaya
b) He is released from imprisonment
190. On attaining the age of majority, a
c) All of the above
Minor’s agreement
a) Is void
184. Peron who is not an indian citizen is
b) Cannot be ratified
known as
c) Becomes void
a) alien enemy
d) Can be ratified
b) Alien friend
191. Which of the following statements are
correct? A minor cannot
d) Both (a) and (b)
a) Become a Partner
185. Contracts with an alien friend, subject
b) Be liable even in case of fraudulent
to certain restrictions are
representation of age
a) Void
c) Ask for specific performance of a
b) Unenforceable
contract
c) Valid
d) All of the above
d) Invalid
.
c) A principal of his agent
192. A minor cannot be declared insolvent.
d) All of the above
a) True
198. A minor can
b) Partly True
a) Ratify his agreement after attaining
c) False
majority
b) Be directed by the Court for specific
193. Guardian shall …. For breach of
performance of the contract
contract by Minor.
c) Always plead his minority
a) be held liable
d) Be held liable for cheques issued by
b) Not be held liable
him
c) Be imprisoned
199. A contract to take a loan by boy of 17
d) Not be questioned
years of age from a money lender of 34
194. Parents shall --------for breach of con.
years is
Tact by minor.
a) Valid contract
a) Be held liable
b) Void contract
b) Not be held liable
c) Quasi Contract
c) Be imprisoned
d) Void agreement
d) Not be questioned
200. A minor can be held personally liable
195. A , a Minor, entered into a contract for
a) For chques issued by him
borrowing a sum of Rs 40,000 out of
b) For promises made by him with other
which lender paid him a sum of Rs
joint promisors
18,000A executed mortgage of property
c) For guarantee given by him
in favour of the lender. The mortagage
is
201. A, a Minor draws cheque in favour of
a) Valid for any amount
B. on attaining majority, A makes out a
b) Valid to the extent of Rs. 40,000
fresh cheque in lieu of the old one. In
c) Invalid
this case
d) Validated on attaining majority
a. The original cheque is invalid but the
196. A ia a minor, b approaches A for a
fresh cheque is valid
loan on the basis of a mortgage of the
b. The original cheque is valid but the
house owned by B Hence, A advances
fresh cheque is invalid
the money and b executed a mortagage
c. Both the original and fresh cheque
in favour of A, a minor. In these
are valid
circumstances
d. Both the original and Fresh cheque
a) The mortgage is not enforceable by
are invalid.
A, because he is a minor
b) The mortgage is enforceable but only
a) A minor can enter into contract
when a attains majority
b) A minor cannot validly appoint an
c) The mortgage is enforceable by A
agent
even though he is a Minor
c) A minor is liable for a chque issued by
d) There is no mortgage at all
him
197. Minor can be
d) All of the above
a) A partner in a firm
203. Which of the following is correc
b) An agent
209. A minor enters into a contract for the
a) An agreement with a minor is always
purchase of certain necessaries. In such
void
a case
b) A drunken person can never enter
a) He is liable to return the necessaries
into a contract
b) He is liable to pay
c) A married woman can never make a
c) His estate is liable to pay
contract
d) His guardian is liable to pay
d) All of the above
210. Which of these has not been held as
204. Which of the following is correct
a “ Necessary’?
position for minor under valid contract ?
a) Food
a) A minor can be a beneficiary
b) Clothing
b) A minor can be a promise
c) Shelter
c) Either (a0 and (b0
d) Mobile Phone
d) A minor can be a full fledged partner
211. Which of these has been held as a
in partnership firm
“Necessary?
205. A minor, by misrepresenting his age,
a) Mobile Phone
borrows some money. He
b) Clothing to suit the person’s social
a) Can be sued for fraud
status
b) Cannot be sued for farud
c) Intoxicating drinks
c) Is liable to return the money
d) Internet Connection
d) Is liable to return the money on
212. Education and Marriage of a Female
attaining majority
have also been held to be necessaries
in India.
a) A minor can make a valid contract for
a) True
necessaries of life
b) Partly True
b) A married woman cannot enter into
c) False
contract with her husband
c) A minor can never become partner of
213. Necessaries consist of
any firm
a) Tangible Goods
d) A minor can appoint an agent and is
b) Services
liable as principal
207. A minor’s guardian are not liable to
Creditor for breach of contract by the
214. Which of these is a not a “necessary”
minor, if the contract is for ------
for a Minor?
a) Supply of necessaries
a) Provision of education
b) Supply of non-necessaries
b) Provision of medical and legal advice
c) Supply of services
c) Provision of a houe on rent for the
d) All of the above
purpose of living and Continuing his
208. A minor, though incompetent to
studies
contract
d) Provision of alcoholic drinks
a) can act as an Agent
215. A person is permanently incompetent
b) Can bind his principal
to contract, if he is
a) Lunatic
d) Both (a) and (b)
221. An intoxicated person is not
b) Idiot insolvent
competent to contract as he falls in the
c) All of the above
category of
216. A, a minor bought 11 expensive
a) Persons disqualified by law
coasts from B. he was, at that time,
b) Persons of unsound mind
adequately provided with clothes, but B
c) Persons of discarded by society
did not know this fact. In such a case
d) Enemies of society
a) Minor is personally liable to pay for
222. Which of the following are the
the coast
persons of unsound mind ?
b) Minor’s property can be attached for
a) Idiot
payment
b) Lunatic
c) Minor is liable since he has Misled
c) Drunken
into supply of coats
d) All of the above
d) Minor is not liable at all
223. Which of the following persons are
217. A minor having ample supply of
not competent to Contract being the
clothes according to his position, bought
persons disqualified by law?
number of new dresses including eleven
a) Alien enemies
fancy waist-coasts. In which of the
b) Insolvents
following case, these were held not to
c) Convicts
be necessaries?
d) All of the above
a) Chapel Vs Cooper
224. Which of the following person do not
b) Balfour Vs Balfour
fall in the category of person of unsound
c) Nash Vs Inman
mind.
d) None of these
a) Idiots
218. A person is said to be of Sound Mind,
b) Lunatics
if at the time of contracting
c) Alien
a) He is able to understand the terms of
d) Drunken persons
Contract
225. Minority is a personal …….
b) He is capable of forming a rational
a) Matter
judgment about contract and about
b) Incompetence.
his interests
c) Talent
d) Competence
d) Either (a) and (b)
226. The doctrine of restitution refers to
219. A minor can be held liable for ….
the restoration of property or goods
a) Necessaries of life supplied to him
obtained by false representation. This
b) For a tort committed by him
doctrine is
c) Cheques endorsed by him
a) Beneficial to minors
d) All of the above
b) Not applicable to minors
220. A drunken person is not competent to
c) Applicable to minors
contract as he falls in the category of
a) Persons disqualified by law
227. A minor
b) Persons of unsound mind
a) Can be appointed as an agent.
c) Persons of discarded by society
b) Cannot be appointed as an agent
d) Enemies of society
c) Both (a) & (b)
c) Can appoint others as his agent
d) May not contract whilst such delirium
d) None of these
lasts
228. Which of the following is considered
234. A sane man, who is delirious from
to fall in the category of ‘necessaries’?
fever
a) Expenses for funeral ceremonies of
a) Can contract at any time
minor’s father
b) Cannot contract whilst such delirium
b) Money borrowed to save minors
lasts
property
c) Cannot contract at all
c) Expenses for education
d) May not contract whilst such delirium
d) All of the above
lasts
229. A, a minor borrowed Rs. 30,000 from
235. A sane man, who is so drunk that the
B as an education loan to compete his
cannot understand the terms of a
education. B can ……
contract
a) Recover amount from A
a) Cannot contract while such
b) Recover amount from A’s guardian
drunkenness lasts
c) Recover amount from A’s property
b) Cannot contract at all
d) Not recover at all
c) May not contract while such
230. In a case where a lunatic enters into a
drunkenness lasts
contract for the purpose of ‘necessaries,
d) Can contract at any time
then
a) Lunatic’s is personally liable to pay
Consideration
b) Lunatic’s guardian’s is liable to pay
236. Consideration means
c) Lunatic’s estate is liable to pay
a) Quid pro lo
d) Guardian’s estate is liable to pay.
b) Quid pro quo
231. A minor can be lawfully …. Of a
c) Qui pro quo
cheque.
d) Quid pro quod
a) Drawer
237. Consideration in a contract
b) Drawee
a) May be anything
c) Payee
b) Noting in return
d) All of the above
c) Some thing in return
232. Contracts with an alien enemy before
d) May be illusory
the declaration of war, which are against
238. Section ---- of the Indian Contract Act
the national interest, are
defines” Consideration”
a) Terminated
a) Section 2(a)
b) Not affected at all
b) Section 2 (b)
c) Suspended and revived after war
c) Section 2 (c )
d) Section 2 (d)
233. The contractual capacity of a
239. “Consideration” means a reasonable
company registered under the
equivalent or other valuable benefit
companies Act, 1956, is regulated by
passed on
the
a) By the Promisor to the beneficiary
a) Memorandum of association
b) By the Promisee to the Promisor
b) Provisions of the Companies Act
c) illegal consideration
c) By the promisor to the promisee
d) unlawful consideration
d) By the promise to the beneficiary
246. past consideration is ------- in India.
240. Consideration means something
a) Valid consideration
which is of some value in the eyes of
b) No consideration
law. it may be some benefit to the
c) Illegal consideration
plaintiff or somedetriment to the
d) Unlawful consideration
defedent. It was held in case of
a) Fazaladdin vs Panchanan Das
a) Consideration is essential for a
b) Thomas Vs Thomas
contract
c) Currie vs Misa
b) Consideration is required for a
contract when parties intend to
241. Out of the following which is/are valid
c) Both (a) or (b)
consideration ?
a) Not to sue any person
248. Consideration must be something
b) Compromise of dispute
which the Promisor
c) Composition of creditors
a) Is already bound to do
d) All of the above
b) Is not already bound to do
242. An essential feature of consideration
c) May voluntarily do
is that
d) Must not do
a) It must be cash
249. If a renders some service to B at B’s
b) It must be given by the prmisee alone
desire and after a Month B promises to
c) It must be at the request of the
compensate A for the service rendered
Promisor
to him, it is a
d) It must be in kind
a) Present consideration
243. Past consideration means
b) Past consideration
a) Voluntary services rendered in the
c) Future consideration
past
d) Not a consideration at all
b) Something given by a party to
250. An Executory consideration
another at the request of the
a) Is an outstanding liability on both the
Promisor and contract is made
parties
thereafter
b) Consists of a promise in future
c) Something done at the time of making
c) Is a promise for a promise
a contract
d) All of the above
d) Something to be given after
251. Executor consideration can be
formation of the contract
a) Positive
244. Consideration may be
b) Negative
a) past
c) Neither (a) nor (b)
b) present
c) future
252. An executed consideration
d) either (a) or (b) or (c)
a) Can be positive or negative
245. past consideration is in England
b) Liability is outstanding in one side
a) valid consideration
only
b) no consideration
a) Void
c) Is an act against future promise
b) Valid
d) All of the above
c) Unlawful
253. Past consideration means
d) illegal
a) The price received in the past without
260. a finds B’s mobile Phone, and gives it
making even a proposal
back to him. B promises to give A rs.
b) More price is received than expected
500. This is a/an
c) The service rendered at the request
a) agreement
of the promisor in the past followed
b) contract
by a subsequent promise
c) acceptance
d) All of the above
d) offer
254. Executor consideration means
261. an agreement not supported by
a) Past consideration
consideration is called
b) Present consideration
a) Nudum Pactum
b) Invalid consideration
d) Both (a) and (b)
c) Ab intio
255. Executed consideration means
d) Namo dat quod non habet
a) Present consideration
262. Promise without consideration is
b) Past consideration
a) Gratuitous
b) Devoid any legal obligation
d) Voluntary services rendered in the
c) Not binding on the Promisor
past
d) All of the above
256. A promises to pay an existing debt
263. The consideration is to be moved
punctually if, B, the creditor, gives him a
some-time after the formation of a
discoint. Is this consideration valid ?
contract, it is known as ……
a) Yes , it is genuine consideration
a) present consideration
b) No , Promisor is already bound to pay
b) Executor consideration
punctually
c) Past consideration
c) No, inadequate consideration
d) Executed consideration
d) Yes , enforceable consideration
264. A for natural love and affection,
257. Present consideration is valid in ----
promises to give his son B Rs 1,000. A
a) India
puts his promise to b into writing and
b) England
registers it. This is a
c) Both (a) and (b)
a) Contract
b) Agreement
258. Consideration may be
c) Promise
a) Executor
d) Offer
b) Executed
265. Mere nearness of relation does not
necessarily imply natural love and
d) Both (a) and (b)
ffection for making contracts without
259. Where a witness who has received
consideration is valid.
summons to appear at a trial, a promise
a) True
to pay him anything beyond his
b) Partly True
expenses is
d) Either (b) or (c)
c) False
272. Consideration may move from
a) Promisor
266. A husband, by a registered
b) Promise
agreement promised to pay wife Rs
5,000 p.m. there was no consideration
d) Both (a) and (b)
moving from the wife to the husband.
273. Consideration is not necessary to
This contract is
effect a alid Gratuitous Bailment of
a) Void
goods.
b) Illegal
a) True
c) Valid
b) Partly True
d) Unenforceable
c) False
267. The consideration ------ benefit the
promise himself
274. Inadequacy of consideration does not
a) Must
make the contract
b) Need not
a) Void
c) Must always
b) Voidable
d) Must never
c) Valid
268. A supports B’s infant Son. B
Promises to Pay A’s expense. The
contract is
a) Consideration may be past, present
a) Void
but not future
b) Illegal
b) A contract is void if the consideration
c) Valid
is inadequate
d) Unenforceable
c) Acceptance to lesser sum in
269. A owes B Rs 1,000 but the debt is
satisfaction of payment of a larger
barred by Limitation Act. A sins a written
sum is valid in spite of inadequate
promise to pay B Rs 500 on Account of
consideration
this debt. The contract is
d) A stranger to contract can enforce the
a) Void
contract
b) Illegal
276. When the consideration is unlawful,
c) Valid
the courts
d) Unenforceable
a) Allows an action on contract
270. ‘No Consideration No Contract’ does
b) Does not allow an action on contract
not apply to completed gifts.
c) Takes it for consideration
a) True
d) Either (a) or (c)
b) Partly True
277. A person who is not a party to a
c) False
contract
a) Cannot sue
271. Consideration must move at the
b) Can sue
desire of
c) Can sue only in well recognized
a) Promisor
cases
b) Promise
d) Can sue the Governmen
c) Stranger
arty to the contract, only if such
278. Under the Indian contract Act, a third
agreement is
person
a) Registered
a) Beneficiary under the contract can
b) Reduced to Writing
sue
b) From whom the consideration has
d) Both (a) and (b)
proceeded can sue
284. Which of the following is incorrect ?
c) Cannot sue even if the consideration
a) Consideration must be something
has proceeded from him
which the promise is aleady under a
d) Cannot sue at all for want of privity of
duty to do
contract
b) Consideration must be valuable in the
279. Stranger to contract means
eye of the promisor
a) First party to contract
c) Consideration must be which the
b) Second party to contract
promise wants to do voluntarily
c) Third party to contract
d) All of the above
285. A promises to pay Rs. 1,000 to B if he
280. The term privity of contract means
brings a star from sky to earth and B
a) Stranger of contract
agrees to bring the star to earth. In this
b) Contract is private
case, contract is
c) First party to contract
a) Valid
d) Second party to contract
b) Void as consideration is illusory
281. Consideration need not necessarily
c) Illegal
be provided by the promisee, it may flow
d) Contingent
from a third party also. Such a person is
286. The forbearance to sue is regarded
called
as
a) Stranger to contract
a) Invalid consideration
b) Stranger to consideration
b) No consideration
c) Stranger to the court
c) Valid consideration
d) Either (a) or (c)
287. Compromise of disputed claims is
a) Consideration passed on behalf of
a) Valid consideration
another is valid
b) Invalid consideration
b) A ather promises his son while talking
c) For bidden by law
on cell phone to give half of his
d) Unlawful consideration
property. It is an enforceable
288. A promise to pay for past services is
promise
valid and binding even though it is
c) A contracts B in writing to pay all the
without consideration. However, for the
time barred debts of C. it is a valid
validity of such promise, the past
contract
services should have been rendered
d) Both (b) and (c) above
a) Voluntarily
283. Marriage Settlement, Partition and
b) At promisor’s request
other family Arrangements can be
c) Under compulsion
enforced by a beneficiary who is not a
d) Under some contract
b) The trust or charge in his favour must
289. For the enforcement of promise to
be of specific property
pay a time –barred debt without
c) The benefit to the beneficiary must be
consideration, which of the following
of Rs. 50,000 or more
conditions is not required ?
d) Both (a) and (b)
a) It must be in writing
294. A person for whose benefit a prvision
b) It must be express
is made in partition deed of joint family
c) It must be signed by the promisor
property but he is not a party to such
d) It must be rgistered in a Court of law
settlement,
290. Which of the following statements are
a) Cannot sue as partition of property is
correct ?
not a recognized exeption
I. Consideration is not required for the
b) Can sue as it is a recognized
creation of an agency.
exception to the rule of privity of
II. Consideration is not required for
contract
making an actual gift.
c) Can sue after becoming party to the
III. Consideration is not required while
settlement
entering into contract with relative.
d) Can sue only if court allow him to do
IV. Consideration is not required for
so
promise to pay time-barred debt.
295. A promises, for no consideration, to
a) (i),(ii), (iii)
give to B Rs 1,000.
b) (i), (i), (iv)
a) This is a void agreement
c) (ii) (iii) (iv)
b) This is a valid agreement
d) (i), (iii), (iii)
c) This is a voidable agreement
291. Which of the following is the
recognized exception to the rule of
privity of contract ?
Free Consent
a) Trust or charge
296. Consent means parties agreeing on
b) Marriage settlement and family
a) The terms of the contract
arrangements
b) Some terms of the contract
c) Acknowledgement of payment
c) The same thing in the same sense
d) All of the above
d) Any matter of the contract
292. In which of, the following important
297. Section ….. of the Indian contract act
cases, the exception of ‘trust or charge’
deals with consent.
to the rule of privity of contract was
a) 12
recognized?
b) 13
a) Lalman shukla Vs Gauri Dutt
c) 14
b) Khuaja Mohdkhan vs Hussani Begum
d) 15
c) Carlill vs Carbolic smoke ball Co
298. Consent Means
d) Balfour vs Balfour
a) Unity of minds on the same thing
293. A person who is not a party to the
b) Meeting of minds on the same thing
trust can enforce the same if the
in the same sense
following conditions are satisfied.
c) Agreeing on same thing in the same
a) He must be clearly named as a
sense
beneficiary under the trust or charge
d) All of the above
d) Either (a) or (b) or (c)
306. The act amount to coercion is
299. “ Free Consent” is ealt with under
a) Threat to sue
Section …. Of the Indian Contract Act.
b) Threat to strike
a) 12
c) Threat to suicide
b) 12
d) Threat to detain property under
c) 14
mortgage
d) 15
307. A contract is said to be caused by
300. Consent and free consent are same
undue influence
and one thing.
a) When one party is a dominant party
a) True
b) When one party uses its dominant
b) Partly true
position to get unfair advantage over
c) False
the other in a contract
d) Partly False
c) When parties to contract are close
301. Sec …. Of Indian Contract Act deals
friends
with “Coercion”.
d) When parties to a contract are near
a) 15
relatives
b) 16
308. A threatens to kill B, if B does not
c) 17
agree to sell his property to A. B’s
d) 18
Consent is obtained by
302. Consent is said to be free when it is
a) Fraud
not obtained by
b) Undue Influence
a) Coercion
c) Coercion
b) Fraud
d) Misrepresentation
c) Bilateral Mistake
309. D threatens to kill A if he does not sell
d) Either (a) or (b) or (c)
his hose to B at a very low price. Even if
303. Two person are said to be in consent
D is a stranger to the transaction
a) When they agree on any things
between A and B, the agreement is
b) When they agree upon the same
caused by
thing in the same sense
a) Undue Influence
c) When they agree upon the same
b) Coercion
thing in different sense
c) Fraud
d) When they agree upto the same thing
in different sense
310. A, Hindu widow, was forced to adopt
304. …… means forcibly compelling a
B under threat that her husband’s dead-
person to enter into a contract.
body would not be allowed for funeral,
a) Intimidation
unless she adopts B. the adoption is
b) Fraud
void-able since the consent is caused by
c) Mistake
a) Undue Influence
d) Coercion
b) Coercion
305. Coercion includes
c) Fraud
a) Causing fear
d) Mistake
b) Threat to detain property
c) Detain goods unlawfully
a) He holds a real or apparent authority
311. A contract is said to be made without
over the other
consent when the contract is caused by
b) He stands in a fiduciary relation to the
a) Coercion
other
b) Undue influence
c) All of the above
c) Fraud
d) Bilateral Mistake of fact
318. A person is deemed to be in a
312. To make a contract voidable,
position to dominate the will of another if
coercion must have been exercised
a) He stands in a fiduciary relation to the
against
other
a) promisor
b) He makes a contract with a person
b) Any other person
whose mental capacity is temporarily
or permanently affected by reason of
age, illness or mental or bodily
313. Duress under English Contract Law is
distress
similar to
c) All of the above
a) Undue influence
b) Coercion
319. The agreement entered into with free
c) Fraud
consent is
a) Valid
314. To avoid a contact under the claim of
b) Void
“Coercion” , the Indian Pena code
c) Voidable
should be in force where the coercion is
d) Illegal
employed.
320. The agreement entered into without
a) True
free consent is
b) Partly True
a) Valid
c) False
b) Void
c) Voidable
315.......... means unfair use of one’s
d) Illegal
superior power in order to obtain the
consent of a person who is in a weaker
position to dominate the will of another
position.
by undue influence if the mental
a) Coercion
capacity is affected temporarily or
b) Undue influence
permanently by reasons of
c) Fraud
a) Age
d) ‘Misrepresentation
b) Illness
316. Section …. Of the Indian Contract Act
c) Mental or bodily distress
deals with “Undue Influence”.
d) All of the above
a) 15
322. Who has defined that “ undue
b) 16
influence is the unconscientions use, by
c) 17
one person, of power possessed by him
d) 18
over another in order to induce the other
party to enter into contract ?
position to dominate the will of another if
328. Which of the following relationships
a) Holland
raise presumption of undue influence ?
b) Pollack
a) Doctor and Patient
c) Lord Halsbury
b) Solicitor and Client
d) Salmond
c) Trustee and Beneficiary
323. A contract which is aboided on
d) All of the above
grounds of undue Inflence may be set
329. Which of the following relationship
aside
raise presumption of Under influence?
a) Absolutely
a) Landlord and Tenant
b) Upon such terms and conditions as
b) Husband and Wife
the Court may deem fit
c) Fiancé and Fiancee
d) Creditor and Debtor
d) Both (A) and (B)
330. undue influence is npt preumed
324. An illiterate old woman made a gift
when the relationship between the
deed of her entire property to her
parties is
nephew who managed her affairs. The
a) master- Servant
gift can be set aside on the grounds of
b) doctor-patent
a) Mistake
c) husband-wife
b) Coercion
d) shopkeeper-buyer
c) Fraud
331. Coercion and Under Influence,
d) Undue Influence
involve physical force or threat.
325. A applies to a Banker for a loan when
a) True
the money market is very stringent
b) Partly True
Banker says that loan could be provided
c) False
only at such high interest A’s consent is
a) Not obtained by ndue Infuence
332. To employ “coercion”, relationship
b) Obtained by undue influence
between the parties is
c) Not obtained by coercion
a) Necessary
d) Obtained by fraud
b) Not necessary
326. Mere proof of nearness of relationship
c) Required
is not sufficient for the Court to assume
d) Presumed
that one relation was in a position to
333. To employ “undue Influence”,
dominate the will of another
relationship between the parties is
a) True
a) Necessary
b) Partly true
b) Not necessary
c) False
c) Required
d) Presumed
327. Which of the following relationships
334. Section 17 of the Indian Contract Act
raise presumption of undue influence ?
deals with
a) Parent and Child
a) Coercion
b) Guardian and Ward
b) Undue Influence
c) Spiritual Guru and Disciple
c) Fraud
d) All of the above
d) Mistake
b) Stranger to the contract
335. Fraud means
c) An agent of the party to the contract
a) Suggestion as a Fact, of something
d) Both (a) and (c)
which is not true, by a person who
341. Which of these constitute essential
does not believe it to be true
elements of Fraud?
b) Active concealment of a fact
a) Representation should relate to a
c) Promise made without any intention
material fact
of performing it
b) Representation should be Falsse
d) All of the above
c) The intention must be to induce the
336. Which of these constitute Fraud?
other party to act upon it
a) Any act fitted to deceive
d) All of the above
b) Any such act or omission as
342. If a sells, by auction to B a horse
specifically declared by law to be
which A Knows to be unsound and A
fraudulent
says nothing to B about the horse’s
c) Both (a) and (b)
unsoundness, this amount to
a) Fraud
337. Which of these does not constitute
b) Not farud
Fraud?
c) Unlawful
a) Suggestion as a fact, of something
d) Illegal
which is not true, by a person who
343. If A sells, by auction to B a horse
does not believe it to be true
which A knows to be unsound and A
b) Active concealment of a Fact
says nothing to B about the horse’s
c) Innocent statement, honestly
unsoundness, this amount to
believing the same to be true.
a) Fraud
d) Promise made without any intention
b) Not fraud
of performing it
c) Unlawful
338. Which of these does not constitute
d) Illegal
Fraud?
344. Duty to speak exists in case
a) Promise made without any intention
a) Where the parties stand in a fiduciary
of performing it.
relationship
b) Physical threat to the person
b) Where contract is a one of ubberima
c) Any act fitted to deceive
fidei
d) Any such act or omission as
c) Both (a) and (b)
specifically declared by Law to be
fraudulent
345. Uberima fidei means
339. A mere attempt at deceit by one party
a) Bad faith
a) Is not fraud unless the other party is
b) Utmost god faith
actually deceived
c) Goo faith
b) Is fraud whether the other party has
d) No faith at all
been deceived or not
346. Which of the following is correct?
c) Amounts to mistake
a) Consent obtained by fraud makes the
d) Amount to undue influence
agreement void
340. Fraud may be committed by
a) A party to the contract
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
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
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
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?
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)
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
.
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
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
.
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
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 ev
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 competition
collateral Transaction to a Wagering Agreement are
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
.
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
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
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
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’’.
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
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 ……
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
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
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
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
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
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
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
a. Performance of contract means contract
becomes void
b. Cancelation of contract cannot discharge a
contract
.
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
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
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
.
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
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
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
.
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
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
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
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
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
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
.
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
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
817. Where the banker wrongfully dishonours a
customer’s cheque, the court may award
a. Ordinary damages
b. Special damages
c. Exemplary damages
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

217.c 218.d 219.b 220.b 221.b
87. b 88. c 89. a 90. c 91. a
222.d 223.d 224.c 225.b 226.c
92. a 93. b 94. a 95. c 96. d
227.a 228.d 229.c 230.c 231.c
97. d 98. c 99. c 100. a 101. b
232.a 233.c 234.b 235.a
102. d 103. c 104. a 105. b 106. b
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
.
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
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
PART-2
1. Which the following strikes only at document and not transactions?
A. The Transfer of Property Act, 1882
B. The Registration Act, 1908
C. both (A) and (B)
D. None of these
Ans. (B)
2. A stipulation in a bond for payment of compound interest on failure to pay simple
interest at the same rate as was payable upon the principal is not a penalty within the
meaning of:
A. Section 74 of the Indian Contract Act, 1872
B. Section 75 of the Indian Contract Act, 1872
C. Section 76 of the Indian Contract Act, 1872
D. None of these
Ans. (A)
3. A sub-bailee is a person to whom the actual possession of goods is transferred by
someone:
A. who is not himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. both (A) and (B)
D. None of these
Ans. (C)
4. A successful plaintiff in an action for detenue, is, therefore entitled to the return of
the goods or recovery of its value and damages for detention and is entitled to have
been assessed separately:
A. the value of the goods at the date of the assessment
B. damages sustained by him up to that date
C. both (A) and (B)
D. None of these
Ans. (C)
5. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
Ans. (A)
6. A supplies the wife and children of B, a lunatic, with necessaries suitable to their
condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
Ans. (A)
7. A supports B’s infant son. B promise to pay A’s expenses in so doing.
A. This is not a contract
B. This is a contract
C. either (A) or (B)
D. None of these
Ans. (B)
8. A surety is discharged if the creditor, without consent, unconditionally releases
the principal-debtor; the reason for this principle being that:
A. The release extinguishes the principal obligation
B. Such release adversely affects the right of the surety to sue the principal-debtor and deprives the
surety of his right to compel the debtor to perform his own obligation to the creditor
C. both (A) and (B)
D. None of these
Ans. (C)
9. A transaction by which A promised to pay B and C for consideration during their
joint lives and after the death of one of them, to the survivor, the consideration
moved from B but the agreement was signed by all three, i.e., A, B and C.
A. There was privity between A and B but not with C
B. There was privity between A and C but not with B
C. There was privity between A on one side and B and C on the other
D. None of these
Ans. (C)
10. A undertakes to deliver a thousand maunds of jute to B on a fixed day Applying
Section 47, Indian Contract Act:
A. A need not apply to B to appoint a reasonable place for the purpose of receiving it, and must
deliver it to him at such place
B. A must apply to B to appoint a reasonable place for the purpose of receiving it, and can choose to
later change the place
C. A must apply to B to appoint a reasonable place for the purpose of receiving it, and must deliver
it to him at such place
D. None of these
Ans. (C)
11. A undertakes to repay B a loan of Rs.1,000 by five equal monthly instalments with
a stipulation that, in default of payment of any instalment, the whole shall become
due.
A. This stipulation is by way of penalty, and the contract cannot be enforced according to its terms
B. This stipulation is not by way of penalty, and the contract cannot be enforced according to its
terms
C. This stipulation is not by way of penalty, and the contract may be enforced according to its terms
D. None of these
Ans. (C)
12. A, a builder, contracts to erect and finish a house by the first of January, in order
that B may give possession of it at that time to C, to whom B has contracted to let it. A
is informed of the contract between B and C. A builds thehouse so badly that, before
the first of January, it falls down and has to be rebuilt by B, who in consequence,
loses the rent which he was to have received from C, and is obliged to make
compensation to C for the breach of his contract.
A. A must make compensation to B for the cost of rebuilding the house
B. A must make compensation to B for the rent lost
C. A must make compensation to B for the compensation made to C
D. All of them
Ans. (D)
13. A, a decree-holder, and entitled to execution of B’s goods, requires the officer of
the court to seize certain goods, representing them to be the goods of B. The officer
seizes the goods, and issues by C, the true owner of the goods.
A. A is not liable to indemnify the officer for the sum which he is compelled to pay to C, in
consequence of obeying A’s directions
B. A is partially liable to indemnify the officer for the sum which he is compelled to pay to C, in
consequence of obeying A’s directions
C. A is liable to indemnify the officer for the sum which he is compelled to pay to C, in consequence
of obeying A’s directions
D. None of these
Ans. (C)
14. A, a man enfeebled by disease or age, is induced, by B’s influence over him as his
medical attendant, to agree to pay B an unreasonable sum for his professional
services.
A. B did not employs undue influence
B. B employs undue influence
D. None of these
Ans. (B)
15. A, a merchant in Calcutta, has an agent, B, in London to whom a sum of money is
paid on A’s account, with orders to remit. B retains the money for considerable time.
A, in consequence of not receiving the money, becomes insolvent.
A. B is not liable for the money and interest, from the day on which it ought to have been paid,
according to the usual rate
B. B is liable for any further direct loss – as e.g. by variation of rate of exchange
C. B is liable for the money and interest, from the day on which it ought to have been paid,
according to the usual rate, and for any further direct loss – as e.g. by variation of rate of exchange
– but not further
D. None of these
Ans. (C)
16. A, a merchant in England, directs B, his agent or Bombay, who accepts the agency,
to send him 100 bales of cotton by a certain ship. B, having it in his power to send the
cotton, omits to do so. The ship arrives safely in England. Soon after her arrival, the
price of cotton rises.
A. B is not bound to make good to A profit which he might have made by 100 bales of cotton at the
time the ship arrived
B. B is bound to make good to A any profit he might have made by the subsequent rise
C. B is bound to make good to A profit which he might have made by 100 bales of cotton at the time
the ship arrived. But not any profit he might have made by the subsequent rise
d. None of these
Ans. (C)
17. A, a money-lender advances Rs.100/- to B, an agriculturist, and by undue
influence, induces B to execute a bond for Rs.200/- with interest at 6 per cent per
month.
A. The Court will not set the bond aside and not take any legal action against B
B. The Court may set the bond aside, ordering B to repay the Rs. 100/- with such as may seem just
d. None of these
Ans. (B)
18. A, a ship-owner, contracts with b to convey him from Calcutta to Sydney in A’s
ship, sailing on the first of January, and B pays to A, by way deposit, one-half of his
passage money. The ship does not sail on the first of January and B, after being, in
consequence, detained in Calcutta for some time, and thereby put to some expense,
proceeds to Sydney in another vessel, and, in consequence, arriving too late in
Sydney, loses a sum of money.
A. A is liable to repay to B his deposit, with interest and the expense to which he is put by his
detention in Calcutta, and the excess, if any, of the passage-money paid for the second ship over
that agreed upon the first
B. A is liable to repay to B his deposit, with interest and the expense to which he is put by his
detention in Calcutta, and the excess, if any, of the sum of money which B lost by arriving in Sydney
too late
C. A is liable to repay to B his deposit, with interest and the excess, if any, of the passage-money
paid for the second ship over that agreed upon the first, but not the sum of money which B lost by
arriving in Sydney too late
D. None of these
Ans. (A)
19. A, a signer, contracts with B, the manager of a theatre for two nights in every
week during the next two months, and B engages to pay her a hundred rupees for
each night’s performance. On the sixth night, A willfully absents herself from the
theatre, and B, in consequence rescinds the contract.
A. B must pay A for the three nights on which she had sung
B. B must pay A for the four nights on which she had sung
C. B must pay A for the five nights on which she had sung
d. None of these
Ans. (C)
20. A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for
two nights in every week during the next two months, and B engages to pay her 100
rupees for each night’s performance. On the sixth night, A wilfully absents herself
from the theatre, and B, in consequence, rescinds the contract.
A. B is not entitled to claim compensation the damage which he has sustained through the non-
fulfilment of the contract
B. B is entitled to claim compensation the damage which he has sustained through the non-
fulfilment of the contract
C. A is entitled to claim compensation the damage which she has sustained due to the rescinding of
the contract by B.
D. None of these
Ans. (B)
21. A, a singer, enters into a contract with B, the manager of a theatre, to sing at his
theatre two nights in every week during the next two months, and B engages to pay
her 100 rupees for each night’s performance. On the sixth night A willfully absent
herself from the theatre.
A. B is at liberty to put an end to the contract
B. B cannot put an end to the contract
D. None of these
Ans. (A)
22. A, a singer, enters into a contract with B, the manager of a theatre, to sing at his
theatre two nights in every week during the next two months, and B engages to pay
her at the rate of 100 rupees for each night. On the sixth night A wilfully absents
herself. With the assent of B, A sings on the seventh night.
A. B has signified his acquiescence in the continuance of the contract, and cannot now put an end
to it, but is entitled to compensation for the damage sustained by him through A’s failure to sing on
the sixth night
B. B has signified his acquiescence in the continuance of the contract, and but can still put an end
to it, but is entitled to compensation for the damage sustained by him through A’s failure to sing on
the sixth night
C. B has signified his acquiescence in the continuance of the contract, and cannot now put an end
to it, but is not entitled to compensation for the damage sustained by him through A’s failure to
sing on the sixth night
D. None of these
Ans. (A)
23. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his
own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
Ans. (C)
24. A, an agent engaged in carrying on for B a business, inwhich it is the custom to
invest from time-to-time, at interest, the moneys which may be in hand, omits to
make such investments.
A. A need not make good to B the interest usually obtained by such investments
B. A can partially make good to B the interest usually obtained by such investments
C. A must make good to B the interest usually obtained by such investments
D. None of these
Ans. (C)
25. A, an agent for the sale of goods, having authority to sell on credit, sells to B on
credit, without making the proper and usual inquires as to the solvency of B. B at the
time of such sale is insolvent.
A. A need not make compensation to his principal in respect of any loss thereby sustained
B. A can partially make compensation to his principal in respect of any loss thereby sustained
C. A must make compensation to his principal in respect of any loss thereby sustained
D. None of these
Ans. (C)
26. A, an insurance broker, employed by B to effect an insurance on a ship, omits to
see that usual clauses are inserted in the policy. The ship is afterwards lost. In
consequence of the omission of the clauses nothing can be recovered from the
underwriters.
A. A is not bound to make good the loss to B
B. A is bound to partially make good the loss to B
C. A is bound to make good the loss to B
D. None of these
Ans. (C)
27. A, as surety for B, makes a bond jointly with B to C, to secure a loan from C to B.
Afterwards, C obtains from B a further security for the same debt. Subsequently, C
gives up the further security.
A. A is partly discharged
B. A is discharged
C. A is not discharged
D. None of these
Ans. (C)
28. A, at Madras, by letter directs B to sell for him some cotton lying in a warehouse
in Bombay, and afterwards, by letter revokes his authority to sell, and directs, B to
send, the cotton to Madras, B, after receiving the second-letter, enters into a contract
with C, who known of the first letter, but not of the second for the sale to him of the
cotton. C pays B the money, with which B absconds.
A. C’s payment is not good as against A
B. C’s payment is good as against A
D. None of these
Ans. (B)
29. A owns a shop in Serampur, living himself in Calcutta, and visiting the shop
occasionally. The shop is managed by B, and he is in the habit of ordering goods from
C in the name of A for the purposes of the shop, and of paying for them out of A’s
funds without A’s knowledge.
A. B has no implied authority from A to order goods from C in the name of A for the purposes of the
shop
B. B has an implied authority from A to order goods from C in the name of A for his own purposes
C. B has an implied authority from A to order goods from C in the name of A for the purposes of the
shop
D. None of these
Ans: C
30. A contracts to indemnify B against the consequences of any proceedings which C
may take against B in respect of a certain sum of 200 rupees.
A. This is contract of indemnity
B. This is not a valid contract of indemnity
C. This is contract of stipulation
D. None of these
Ans: A
31. A contracts to marry B, being already married to C, and being forbidden by the
law to which he is subject to practice polygamy. This causes loss to B
A. A need not make compensation to B for the non-performance of his promise
B. A must make compensation to B for the non-performance of his promise
C. Either (A) or (B)
D. None of these
Ans: B
32. A contracts to pay B a sum of money when B marries C. C dies without being
married to B.
A. The contract still can be forced
B. The contract becomes void
D. None of these
Ans: B
33. A contracts to sell and deliver 50 maunds of saltpetre to B, at a certain price to be
paid on delivery. A breaks his promise.
A. B is not entitled to receive from A, by way of compensation, the sum, if any, by which the
contract price falls short of the price for which B might have obtained 50 maunds of saltpetre of
like quality at the time when the saltpetre ought to have been delivered
B. B is entitled to receive from A, by way of compensation, the sum, if any, by which the contract
price does not fall short of the price for which B might have obtained 50 maunds of saltpetre of like
quality at the time when the saltpetre ought to have been delivered
C. B is entitled to receive from A, by way of compensation, the sum, if any, by which the contract
price falls short of the price for which B might have obtained 50 maunds of saltpetre of like quality
at the time when the saltpetre ought to have been delivered
D. None of these
Ans: C
34. A contracts to sell and deliver to B, on the first of January, certain cloth which B
intends to manufacture into caps of a particular kind, for which there is not demand,
except at that season. The cloth is not delivered till after the appointed time, and too
late to be used that year in making the caps.
A. B is entitled to receive from A, by way of compensation, the difference between the contract price
of the cloth and its market price at the time of delivery
B. B is entitled to receive from A, by way of compensation, the difference between the contract price
of the cloth and the profits which he expected to obtain by making caps
C. B is entitled to receive from A, by way of compensation, the difference between the contract price
of the cloth and the expenses which he has been put to in making preparation for the manufacture
D. None of these
Ans: A
35. A contracts to take in cargo for B at a foreign port. A’s Government afterwards
declares war against the country in which the port is situated.
A. The contract cannot become void when war is declared
B. The contract becomes partly void when war is declared
C. The contract becomes void when war is declared
D. None of these
Ans: C
36. A contracts with B that, if A practices as a surgeon within Calcutta, he will pay B
Rs. 5,000. A practices as a surgeon in Calcutta.
A. B is entitled to such compensation, not exceeding Rs. 3,000 as the Court considers reasonable
B. B is entitled to such compensation, not exceeding Rs. 4,000 as the Court considers reasonable
C. B is entitled to such compensation, not exceeding Rs. 5,000 as the Court considers reasonable
D. None of these
Ans: C
37. A contracts with B to deliver to him, at a specified price, certain merchandise on
board a ship which cannot arrive for a month, and B engages to pay for the
merchandise within a week from the date of the contract. B does not pay within a
week.
A. A’s promise to deliver and need not be performed
B. A’s promise to deliver and needs to be performed
C. B must make compensation
D. Both (A) and (C)
Ans: D
38. A contracts with B to grow a crop of indigo on A’s land and to deliver it to B at a
fixed rate, and C guarantees A’s performance of this contract. B diverts a stream of
water which is necessary for irrigation of A’s land, and thereby prevents him from
raising the indigo.
A. A is liable on his guarantee
B. A is partly liable on his guarantee
C. A is no longer liable on his guarantee
D. None of these
Ans: C
39. A contracts with B to repair B’s house. B neglects or refuses to point out to A the
places in which his house requires repair.
A. A is excused for the non-performance of the contract if it is caused by such neglect or refusal
B. A cannot be excused for the non-performance of the contract even if it is caused by such neglect
or refusal
C. B is excused for his negligence or refusal to point out to A the places in which his house requires
repair
D. None of these
Ans: A
40. A delivers a rough diamond to B, a jeweller, to be cut and polished, which is
accordingly done.
A. B is not entitled to retain the stone till he is paid for the services he has rendered
B. B is entitled to retain the stone till he is not paid for the services he has rendered
C. B is entitled to retain the stone till he is paid for the services he has rendered
D. None of these
Ans: C
41. A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post.
A. The debt is discharged only when A receives the due amount
B. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed
to A
D. None of these
Ans: B
42. A directs B to sell A’s estate. B boys the estate for himself in the name of C. A, on
discovering that B has bought the estate for himself, may repudiate the sale:
A. If he can show that B has dishonestly concealed any material fact
B. If he can show that the sale has been disadvantageous to him
D. None of these
Ans: C
43. A directs B, his agent, to buy a certain house for him. . B tells A it cannot be
bought, and buys the house for himself.
A. A cannot, on discovering that B has bought the house, compel him to sell it to A at the price he
gave for it
B. A can, on discovering that B has bought the house, file a suit against him
C. A may, on discovering that B has bought the house, compel him to sell it to A at the price he gave
for it
D. None of these
Ans: C
44. A directs B, his solicitor, to sell his estate by auction, and so employ an auctioneer
for the purpose. B names C, an auctioneer, to conduct the sale.
A. C is a sub-agent, and A’s sub-agent for the conduct of the sale
B. C is not a sub-agent, but B’s agent for the conduct of the sale
C. C is not a sub-agent, but A’s agent for the conduct of the sale
D. None of these
Ans: C
45. A employs B to beat C, and agrees to indemnify him against all consequence of the
act. B thereupon beats C, and to pay damages to C for so doing.
A. A is liable to indemnify B for those damages
B. A is partially liable to indemnify B for those damages
C. A is not liable to indemnify B for those damages
D. None of these
Ans: C
46. A employs B to recover 100,000 rupees from C, and to lay it out on good security.
B recovers 1,00,000 rupees and lays out 90,000 rupees on good security, but lays out
10,000 rupees, on security which he ought to have known to be bad, whereby A loses
2,000 rupees.
A. B is not entitled to remuneration for recovering the 1,00,000 rupees and for investing the
90,000 rupees. He is entitled to any remuneration for investing the 10,000 rupees, and he must
make good the 2,000 rupees to B
B. B is entitled to remuneration for recovering the 1,00,000 rupees and not for investing the
90,000 rupees. He is entitled to any remuneration for investing the 10,000 rupees, and he must
make good the 2,000 rupees to B
C. B is entitled to remuneration for recovering the 1,00,000 rupees and for investing the 90,000
rupees. He is not entitled to any remuneration for investing the 10,000 rupees, and he must make
good the 2,000 rupees to B
D. None of these
Ans: C
47. A engages B as clerk to collect money for him. B fails to account for some of his
receipts, and A in consequence calls upon him to furnish security for his duly
accounting. A does not acquaint C with B’s previous conduct. B afterwards makes
default.
A. The guarantee is not invalid
B. The guarantee is partly invalid
C. The guarantee is invalid
D. None of these
Ans: C
48. A entrusts B with negotiable instrument endorsed in blank. B sells them to C in
violation of private orders from A.
A. The sale is not good
B. The sale is partly good
C. The sale is good
D. None of these
Ans: C
49. A fraudulently inform B that A’s estate is free from encumbrance. B thereupon
buys the estate. The estate is subject to a mortgage.
A. B may avoid the contract
B. B may insist on its being carried out, and the mortgage- debt redeemed
D. None of these
Ans: C
50. A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a
certain day. He forfeits his recognizance.
A. He is not liable to pay the penalty
B. He is liable to partially pay the penalty
C. He is liable to pay the whole penalty
D. None of these
Ans: C
51. A gives B a bond for the repayment of Rs. 1,000 with interest at 12 percent at the
end of six months, with a stipulation that, in case of default, interest shall be payable
at the rate of 75 percent from the date of default. This is a stipulation by way of
penalty.
A. B is only entitled to recover from A such compensation as the Court considers reasonable
B. B is only entitled to recover from A such compensation he considers reasonable
C. B is not entitled to recover from A such compensation
D. None of these
Ans: A
52. A gives to C a continuing guarantee to the extent of 3,000 rupees for any oil
supplied by C to B on credit. Afterwards B becomes embarrassed, and, without the
knowledge of A, B and C contract that C shall continue to supply B with oil for ready
money, and that the payments shall be applied to the then, existing debts between B
and C.
A. A is liable on his guarantee for any goods supplied after this new arrangement
B. A is not liable on his guarantee for any goods supplied after this new arrangement
C. A is partly liable on his guarantee for any goods supplied after this new arrangement
D. None of these
Ans: B
53. A guarantees C against the misconduct of B in an office to which B is appointed by
C, and of which the duties are defined by an Act of the Legislature. By a subsequent
Act the nature of the office is materially altered. Afterwards, B misconduct’s himself.
A. A is not discharged by the change from future liability under the guarantee, though the
misconduct of B is in respect of a duty not affected by the later Act
B. A is discharged by the change from future liability under the guarantee, though the misconduct
of B is in respect of a duty affected by the later Act
C. A is discharged by the change from future liability under the guarantee, though the misconduct
of B is in respect of a duty not affected by the later Act
D. None of these
Ans: C
54. A guarantees payment to B, a tea-dealer, to the amount of Rs. 100, for any tea he
may from time to time supply to C. B supplies C with tea to above the value of Rs. 100,
and C pays B for it. Afterward B supplies C with tea to the value of Rs. 200. C fails to
pay.
A. The guarantee given by A was not a continuing guarantee, and he is not accordingly liable to b to
the extent of Rs. 100
B. The guarantee given by A was a continuing guarantee, and he is also liable to B to the extent of
Rs. 200
C. The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the
extent of Rs. 100
D. None of these
Ans: C
55. A guarantees to B, the extent of 10,000 rupees, that C shall pay all the bills that B
shall draw upon him. B draws upon C, C accepts the bill. A gives notice of revocation.
C dishonors the bill at maturity.
A. A is liable upon his guarantee
B. A is not liable upon his guarantee
C. A is partly liable upon his guarantee
D. None of these
Ans: A
56. A guarantees to C, to the extent of 2,000 rupees, payment for rice to be supplied
by C to B. C supplies to B rice to a less amount than 2,000 rupees but obtains from A
payments of the sum of 2,000 rupees in respect of the rice supplied.
A. A can recover from B more than the price of the rice actually supplied
B. A can recover from B only the price of the rice actually supplied
C. A cannot recover from B more than the price of the rice actually supplied
D. None of these
Ans: C
57. A having advanced money to his son, B, during his minority, upon B’s coming of
age obtains, by misue of parental influence, a bond from B for a greater amount than
the sum due in respect of the advance.
A. A did not employ undue influence
B. A employs undue influence
D. None of these
Ans: B
58. A hires a horse in Calcutta from B expressly to march to Benaras. A rides with
due care, but marches to Cuttack instead. The horse accidentally falls and is injured.
A. A is not liable to make compensation to B for the injury to the horse
B. A is partially liable to make compensation to B for the injury to the horse
C. A is liable to make compensation to B for the injury to the horse
D. None of these
Ans: C
59. A hires B’s ship to take in and convey, from Calcutta to the Mauritius, a cargo to
be provided by A, B receiving a certain freight for its conveyance. A does not provide
any cargo for the ship.
A. A cannot claim the performance of B’s promise
B. A must make compensation to B for the loss which B sustains by the non-performance of the
contract
D. Both (A) and (B)
Ans: D
60. A is employed by B by buy from C certain goods, of which C is the apparent
owner, and buys them accordingly. In the course of the treaty for the sale. A learns
that the goods really belonged to D, but B is ignorant of that fact.
A. B is entitled to set-off a debt owning to him from C against the price of the goods
B. B is partially entitled to set-off a debt owning to him from C against the price of the goods
C. B is not entitled to set-off a debt owning to him from C against the price of the goods
D. None of these
Ans: C
61. A is employed by B, residing in London, to recover at Bombay a debt due to B.
A. A may adopt any illegal process necessary for the purpose of recovering the debt, and may give a
valid discharge for the same
B. A may not adopt any legal process necessary for the purpose of recovering the debt, and may
give a valid discharge for the same
C. A may adopt any legal process necessary for the purpose of recovering the debt, and may give a
valid discharge for the same
D. None of these
Ans: C
62. A leaves a cow in the custody of B to be taken care of. The cow has a calf.
A. B is not bound to deliver the calf but the cow to A
B. B is bound to deliver the calf but not the cow to A
C. B is bound to deliver the calf as well as the cow to A
D. None of these
Ans: C
63. A lends a horse, which he knows to be vicious, to B. He does not disclose the fact
that the horse is vicious. The horse runs away. B is thrown and injured.
A. A is not responsible to B for damage sustained
B. A is partly responsible to B for damage sustained
C. A is responsible to B for damage sustained
D. None of these
Ans: C
64. A makes a contract with B to buy B’s horse if A survives C.
A. This contract cannot be enforced by law unless and until A dies in C’s lifetime
B. This contract cannot be enforced by law unless and until C dies in A’s lifetime
C. This contract can be enforced by law during C and A’s lifetime
D. None of these
Ans: B
65. A owes B 1,000 rupees under a contract. B owes B 1,000 rupees. B order A to
credit C with 1,000 rupees in his books, but C does not assent to the arrangement.
A. B does not owes C 1,000 rupees, as new contract has been entered into
B. B still owes C 1,000 rupees, even though a new contract has been entered into
C. B still owes C 1,000 rupees, and no new contract has been entered into
D. None of these
Ans: C
66. A owes B 2,000 rupees, B accepts some of A’s goods in reduction of the debt.
A. The delivery of the goods operates as a part payment
B. The delivery of the goods does not amount to part payment
D. None of these
Ans: A
67. A owes B 5,000 rupees. C pays to B 1,000 rupees and B accepts them, in
satisfaction of his claim on A.
A. This payment is a partial discharge of the whole claim
B. This payment is not a discharge of the whole claim
C. This payment is a discharge of the whole claim
D. None of these
Ans: C
68. A owes B, among other debts, 1,000 rupees upon a promissory note, which falls
due on the first June. He owes B no other debt of that amount. On the first June A
pays to B 1,000 rupees.
A. The payment is to be applied equally to all the debts owed by A
B. The payment is to be applied to the discharge of the promissory note
D. Both (A) and (B)
Ans: B
69. A owes money to B under a contract. The old debt of A to B is at an end. It is
agreed between A, B and C, that B shall thenceforth accept C as his debtor instead of
A.
A. New debt from C to B has been contracted
B. New debt from A to C has been contracted
D. None of these
Ans: A
70. Section 75 of the Indian Contract Act, 1872 must be read as supplementary to
_____________
I. Section 39 of the Indian Contract Act, 1872
II. Section 53 of the Indian Contract Act, 1872
III. Section 55 of the Indian Contract Act, 1872
IV. Section 64 of the Indian Contract Act, 1872
V. Section 65 of the Indian Contract Act, 1872
A. II, III, IV
B. IV, V
C. I, V
D. All of them
Ans. (D)
71. Severance can be effected when the part severed can be removed by running a
through it.
A. blue pencil
B. white pencil
C. black pencil
D. None of these
Ans. (A)
72. Since a contract is concluded by the mere acceptance of an offer, the terms of the
intended or proposed agreement must be indicated with sufficient definiteness in the
offer itself. The terms of the offer must therefore be definite and certain. Which of
the following cases held that the proposal must be sufficiently definite to permit the
conclusion of the contract by mere acceptance?
A. Coffee Board Bangalore v. Janab Dada Haji Ibrahim Halari
B. Gorakh Nand Yadav v. District Magistrate, Gorakhpur
C. Sanwarmal Goenka v. Soumyendra Chandra Gooptu
D. Nandganj Sihori Sugar Co. Ltd., v. Badri Nath Dixit
Ans. (A)
73. Subject to a contract between the partners, the firm shall indemnify a partner in
respect to payments made and liabilities incurred by him:
A. in the ordinary and proper conduct of the business
B. in doing such act, in an emergency, for the purpose of protecting the firm from loss, as would be
done by a person of ordinary prudence, in his own case, under similar circumstances
C. both (A) and (B)
D. None of these
Ans. (C)
74. Sub-section 1 of Section 16 of Indian Contract Act, 1872 requires the Court trying
a case to consider which of the following?
A. Are the relations between the donor and the done such that the done is in a position to dominate
the will of the donor?
B. Has the done use that position to obtain an unfair advantage over the donor?
D. both (A) and (B)
Ans. (D)
75. Sub-section of which of the following Section of the Indian Contract Act, 1872
shall not affect the provisions of section 111 of the Indian Evidence Act, 1872 (1 of
1872)?
A. Section 7
B. Section 16
C. Section 20
D. None of these
Ans. (B)
76. Suit by bailor or bailee against wrong-doer is dealt under which of the following
in the Indian Contract Act, 1872?
A. Section 176
B. Section 179
C. Section 180
D. Section 178
Ans. (C)
77. Termination of an agency with public authority or a public body may attract
judicial intervention in writ petition:
A. If the termination be unreasonable
B. If the termination be arbitrary
C. If the termination be unconscionable
D. All of them
Ans. (D)
78. Terms of contract relate to statements, assertions, or representations contained
in a written contract which relate to the subject matter of the contract and:
A. to something to be done
B. to something not be done under the contract
C. has no application to a provision in the nature of a condition precedent to the very existence or
formation of a contract
D. All of them
Ans. (D)
79. The acts or omission contemplated by S. 134 of the Indian Contract Act, 1872, may
be those referred to in of the Indian Contract Act:
I. Section 39
II. Section 53
III. Section 54
IV. Section 55
V. Section 63
VI. Section 67
A. II, III, IV
B. IV, V
C. I, VI
D. All of them
Ans. (D)
80. The agency extends to receiving notice on behalf of his principal of whatever is
material to be stated in the course of the proceedings. For this rule to operate:
I. the agent must be under a duty to communicate
II. the information must be material
III. it must have been obtained in the course of business for which the agent has been engaged
IV. the agent is not privy to a fraud on the principal
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)
81. The agency type described in S. 202 of the Indian Contract Act, 1872:
A. cannot be revoked by the principal
B. it cannot be terminated by the death, unsoundness of mind or insolvency of the principal
D. None of these
Ans. (C)
82. The agent may be disentitled to relief under S. 226 of the Indian Contract Act,
1872:
A. If the injury was due to his own contributory negligence
B. If the injury is on the ground of common employment
D. None of these
Ans. (C)
83. The application of the principles in Section 45 of the Indian Contract Act, 1872
may be excluded by statutes, especially those relating to securities, which provides
that:
A. securities payable to one or more persons jointly shall, on death of any of them, be payable to the
survivor or survivors
B. securities payable to one or more persons severally, shall be payable on death of any of them to
any of the survivors or the legal representative(s) of the deceased holder
C. any one or more joint holder can give effectual receipt for interest, unless notice is given by the
other holders to the promisor
D. all of them
Ans. (D)
84. The article of Fuller and Perdue on “The Reliance Interest in Contract Damages”
adopted the method of viewing the remedies for breach of contract in terms of the
interests which the remedies served to protect. Which of the following interests were
identified by them?
A. The expectation interest
B. The reliance interest
C. The restitution interest
D. All of them
Ans. (D)
85. The award of damage involves a detailed investigation of facts:
A. is not normally an appropriate matter for a writ petition under Article 30 or Article 225 of the
Constitution, but it might be exercised in extraordinary circumstances, rarely and sparingly, when
no disputed questions of facts arose
B. is not normally an appropriate matter for a writ petition under Article 32 or Article 226 of the
C. is not normally an appropriate matter for a writ petition under Article 33 or Article 227 of the
D. None of these
Ans. (B)
86. The balance to the provisions of Section 11 of the Indian Contract Act, 1872 is
found in:
A. Section 66 of the Indian Contract Act, 1872
B. Section 67 of the Indian Contract Act, 1872
C. Section 68 of the Indian Contract Act, 1872
D. None of these
Ans. (C)
87. The branches Section 30 of the Indian Contract Act, 1872 declares:
A. Agreement of wager void
B. Prevents the winner from bringing an action to recover amount won (even under a substituted
contract)
C. Prevents the winner from suing the stakeholder
D. All of them
Ans. (D)
88. The basis of relief on the ground of economic duress is not clear from the
judgment in case of Dai-ichi Karkaria Pvt. Ltd. v. Oil Natural Gas Commission
because:
A. the decision has been given in proceedings seeking interim injunction, where the Court has to
decide whether interim injunction ought to be issued. The decision can be sustained solely on the
equitable principles on which the Court may refuse to grant injunction
B. the Court has discussed the effect of economic duress as a ground of invalidating a contract on
the basis of a prima facie case in interlocutory proceedings
C. the effect of such duress on the contract, i.e. whether it is voidable for lack of free consent, or is
void being against public policy is not clear from the judgment
D. All of them
Ans. (D)
89. The capacity of a woman to contract is not affected by her marriage under which
of the following?
A. The Hindu Law
B. The Mohammedan Law
C. both (A) and (B)
D. None of these
Ans. (C)
90. The cases in which power under Article 226 or 14 of the Constitution can be
exercised for breaches of alleged obligations of the state, or its agents, can be divided
which of the following types?
I. Where a petitioner makes a grievance of breach of promise on the part of the state in cases where
on assurance or promises made by the state, he has acted to his prejudice and predicament, but the
agreement is short of a contract within the meaning of Article 299 of the Constitution.
II. Where the contract entered into between the person aggrieved and the state is in exercise of a
statutory power under certain Acts or rules framed there under and the petitioner alleges a breach
on the part of the state.
III. Where the contract entered into heaven between the state and the person aggrieved is non-
statutory and purely contractual and the rights and liabilities of the parties are governed by the
terms of the contract and the petitioner complains about breach of such contract by the State.
IV. Where the contract entered into between the State and the person aggrieved is non statutory
and purely contractual, but such a contract has been cancelled on a ground de hors any of the terms
of the contract, and which is per se violative of Article 14 of the Constitution.
A. I, III
B. II, IV
C. II, III, IV
D. All of them
Ans. (D)
91. The circumstances in which the creditor must make disclosure to the proposed
surety are:
I. Where the surety has asked specific questions to the creditor
II. Where the bank misleads the surety by volunteering only part of the truth
III. Where the surety makes a statement in the creditor’s presence that demonstrates that he
entirely misunderstands the principal-debtor’s position
IV. Where there is anything that might not naturally be expected to take place between the
principal-debtor and the creditor
A. II, III
B. I, IV
C. I, II
D. All of them
Ans. (D)
92. The conditions which entitle an agent to exceed his authority under the doctrine
of necessity are:
A. That he could not communicate with his principal
B. That the course he took was necessary in the sense that it was in the circumstances the only
reasonable and prudent course to take
C. That he acted bona fide in the interest of the parties concerned
D. All of them
Ans. (D)
93. The consideration for a family arrangement may be preservation of family
property, preservation of peace and honour of the family or the avoidance of
litigation; or avoiding the possibility of a future dispute. In which of the following
cases it was held?
A. Sundar Sahu Gountia v. Chamra Sahu Gauntia
B. Dwarampudi Nagaratnamba v. Kunuku Ramayya
C. Balbhaddar Prasad v. Dhanpat DayaI
D. None of these
Ans. (A)
94. The creditor may file a suit at his option only against the surety. In which of the
following cases it was upheld?
A. K. C. Skaria v. The Government of State of Kerala
B. Purabi Dasgupta v. A run Kumar
C. Infrastructure Leasing and Financial Services Ltd. v. Vijay V. Prabhu
D. None of these
Ans. (C)
95. The decisions of the expert or technical or commercial committees in scrutinizing
the tenders under Section 10 of the Indian Contract Act, 1872 will not be interfered
unless:
A. the decision is taken with a mala fide intention
B. the decision is arbitrary
D. None of these
Ans. (C)
96. The defence of invalidity of contract for non-compliance of Article 299 must be
specifically pleaded, unless it is patent from allegations in the plaint or evidence
adduced by the plaintiff. This question has arisen in which of the following types of
cases:
A. cases under ss. 7 (d) and 9A of the Representation of People’s Act, 1951 in connection with
disqualification from being elected to the Parliament of state legislature
B. where the contracts did not comply with the exact requirements of Article 299 (1)
C. contracts entered in the exercise of statutory powers
D. All of them
Ans. (D)
97. The doctrine of apparent authority applies:
I. where a person allows another who is not his agent to appear as his agent
II. where a principal allows his agent to appear to possess more authority than he actually has
III. where the principal reserves or limits the authority of an agent which the agent would have in
ordinary course of business, but does make this known to third parties
IV. where the principal allows it to appear that the agent has authority although his authority has
been terminated
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)
98. The doctrine of privity means:
A. That a person cannot acquire rights to liabilities arising under a contract to which he is not a
party
B. That a person cannot be subject to liabilities arising under a contract to which he is not a party
C. That a contract between A and B can affect the legal rights of C indirectly
D. All of them
Ans. (D)
99. The duty of the disclosure is limited to cases of:
A. unusual features of the transaction
B. unusual features of the risk
C. both (A) and (B)
D. None of these
Ans. (A)
100. The duty of utmost good faith is of universal application to all policies of
insurance although there are differences in the detail affecting the way in which the
duty is applied. In practical application it means that either party has the right to
avoid the contract if:
A. there has been a failure by the other party to disclose a material fact
B. that there has been on the part of the other party a misrepresentation of a material fact
D. None of these
Ans. (C)
101. The English Unfair Contract Act, 1977 covers terms:
A. marking the liability or its enforcement subject to restrictive or onerous conditions
B. excluding or restricting any right or remedy in respect of liability, or subjecting a person to any
prejudice in consequence of his pursuing any right or remedy
C. excluding or restricting rules of evidence or procedure
D. All of them
Ans. (D)
102. The extent of an agent’s authority, whether express or implied, depends upon:
A. The nature of act or business for which he has been appointed
B. Things which are incidental to the business or are usually done in carrying it out
C. The usual customs and usages of the trade
D. All of them
Ans. (D)
103. The extent of the liability under an indemnity depends on:
A. the nature and terms of the contract
B. the case which must be governed by his own facts and circumstances
C. both (A) and (B)
D. None of these
Ans. (C)
104. The final draft of the Indian Contract Act, 1872 was the work of:
A. Sir James Fitzjames Stephen
B. Sir Frederick Pollock
D. both (A) and (B)
Ans. (D)
105. The functions of the provisions of Section 11 of the Indian Contract Act, 1872
relating to personal competency is ___________.
A. to protect those whose mental powers are undeveloped or underdeveloped
B. preventing them from doing themselves an injury by their legal declarations
C. both (A) and (B)
D. None of these
Ans. (C)
106. The general principle of the common law is that in the formation of a contract:
A. the consideration is given
B. the consideration is to accepted in exchange of a promise
C. both (A) and (B)
D. None of these
Ans. (C)
107. The grounds on which administrative action would be subject to control by
judicial review could be classified as:
A. illegality (namely, failure to give effect to the law that regulates the decision making power)
B. irrationality, namely Wednesbury unreasonableness, the question ‘whether or not they [the local
authority] have taken into account matters which they ought not have taken into account, or …
have refused to take into account or neglected to take into account matters which they ought to take
into account’
C. procedural impropriety
D. All of them
Ans. (D)
108. The guarantor’s right to indemnification is a right to be reimbursed:
I. the amount which he actually paid for the principal- debtor – with interest
II. because, he is entitled to full indemnification from the principal-debtor
A. I is true but II is false
B. I is false but II is true
C. both (I) and (II) are true
D. None of these
Ans. (C)
PART-3
1. What is the purpose behind the enactment of Sale of Goods Act, 1930?
A. To define the laws relating to the sale of goods
B. To consolidate and amend the laws relating to the sale of goods
C. To consolidate, amend and define the laws relating to the sale of goods
D. To define and amend the laws relating to the sale of goods
2. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
A. Person who buys goods and services
B. Person who agrees to buy goods
C. Person who buys or agrees to buy goods
D. Person who buys or agrees to buy goods and services
3. Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods were contained in:
A. Indian Contract Act, 1872
B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
4. Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of
Goods Act, 1930:
A. Stock
B. Shares
C. Growing crops
D. Actionable claims
5. Which of the following most appropriately describes the term “sale” as per Sale of Goods Act, 1930:
A. A contract whereby seller transfers the property in goods
B. A contract whereby seller transfers or agrees to transfer the property in goods to the buyer
for a price
C. A contract where transfer of the property in goods is to take place at a future time
D. A contract where transfer of the property in goods is to take place subject to some condition thereafter to be
fulfilled
6. When does an agreement to sell become a sale as per the provisions of Sale Of Goods Act, 1930:
A. When the seller transfers the property in goods
B. When the seller agrees to transfer the property in goods
C. When the time elapses or the conditions subject to which the property in the goods is to be
transferred are fulfilled
D. Agreement to sell is deemed to be sale
7. What can be the subject matter of the contract of sale as per section 6 of Sale of Goods Act:
A. Only existing goods owned or possessed by the owner
B. Only Future goods
C. Existing goods which are neither owned nor possessed by the owner
D. Existing goods, owned or possessed by the owner or future goods
8. Where in a contract of sale the seller purports to effect the present sale of the future goods, the contract operates as:
A. A Contract of sale
B. An agreement to sell the goods
C. A Contact of sale or agreement to sell
D. It is not a valid contract
9. In a contract for sale of specific goods, the goods, without the knowledge of seller perished at the time when the
contract was made, the contract is:
A. A voidable contract at the instance of seller
B. A voidable contract at the instance of buyer
C. A voidable contract subject to approval of the civil court
D. A void contract
10. Can the agreement be avoided when there is an agreement to sell specific goods but subsequently the goods perish
or become so damaged without any fault of the seller or buyer:
A. It can be avoided by the parties
B. It can’t be avoided by the parties
C. It can be avoided only with the approval of Court
D. It can be avoided only if there is a contract in this regard between the parties
11. A contract of sale may be made:
A. A in writing or by word of mouth
B. partly in writing of partly by word of mouth
C. by the implied conduct of parties
D. All of the above
12. A is a stipulation essential to main purpose of the contract and the breach of which gives rise to a right to treat the
contract as repudiated:
A. Condition
B. Warranty
C. Disclaimer
D. Guarantee
13. A is a stipulation collateral to main purpose of the contract and the breach of which gives rise to a right to claim for
damages but not to a right to reject goods and treat the contract as repudiated:
A. Condition
B. Warranty
C. Terms of contract
D. Disclaimer
14. When can a breach of condition be treated as a breach of warranty by the seller as per the provisions of Sale of
Goods Act, 1930:
A. When the buyer fulfils the condition stipulated to the contract of sale
B. When the contract of sale is severable and the buyer has accepted the entire goods
C. When the contract of the sale is not severable and the buyer has accepted the goods or part
thereof, subject to an express or implied term in the contract
D. When the contract of the sale is severable and the buyer has accepted the entire goods or part thereof
15. In the Contract of Sale, there is an implied warranty that:
A. Seller has a right to sell the goods
B. The buyer has the right to have and enjoy the quiet possession of goods only.
C. The goods shall be free from any charge or encumbrance
D. The buyer has the right to have and enjoy the quiet possession of goods and that the goods
shall be free from any charge or encumbrance
16. In a Contract for Sale of goods by sample and description, it is necessary that:
A. The bulk of goods shall correspond with the sample as well as description
B. The bulk of goods shall correspond with sample while it is not necessary that the bulk of goods shall
correspond with the description
C. The bulk of goods shall correspondent with the description and it is not necessary that the bulk of goods
correspond with the sample
D. Variation of the bulk of goods with the sample and description of goods is only to be treated as a breach of
warranty
17. In which of the following cases, there is an implied condition as to particular quality or fitness of goods:
A. When buyer makes known to the seller the particular purpose for which goods are required
as to show that buyer relies on seller’s skill and judgment and the goods are of description
which it is in the ordinary course of seller’s business to supply
B. When buyer makes known to the seller the particular purpose for which goods are required as to show that
buyer relies on seller’s skill and judgment though the seller does not, in the ordinary course of its business,
supply such goods
C. When goods are bought by description from seller who deals in goods of that description, whether as a
manufacturer or otherwise and the buyer has examined the goods and found defects in the same
D. When there is a contract for sale of a specified article under its patent or other trade name
18. When does the property in the goods pass to the buyer in case of contract for the sale of specific or ascertained
goods:
A. When the contract for sale is made
B. When the parties to the contract intend it to be transferred
C. When the price is paid for the goods
D. When the delivery of goods has been made
19. When does the property in the goods pass to the buyer in case of an unconditional contract for the sale of specific
goods in a deliverable state:
A. When the contract is made irrespective of whether the time of payment of price or delivery
of goods is postponed or not
B. When the party Intends to transfer
C. At the time of the payment of the price of goods
D. At the time of delivery of goods
20. When does the property in the goods pass to the buyer in case of a contract for the sale of unascertained or future
goods by description:
A. When the goods of that description and in a deliverable state are unconditionally
appropriated to the contract either by the seller or by the buyer with the assent of each other
B. When the goods of that description and in a deliverable state are conditionally appropriated to the contract
either by the seller or by the buyer with the assent of each other
C. When the goods of that description and in a non-deliverable state are conditionally appropriated to the
contract either by the seller or by the buyer with the assent of each other
D. When the goods of that description and in a non-deliverable state are unconditionally appropriated to the
contract either by the seller or by the buyer with the assent of each other
21. In which of the following cases property in the goods does not pass to the buyer when the goods are delivered to the
buyer on approval or “on sale or return” or other similar terms:
A. When the buyer signifies his approval or acceptance to the seller as to goods
B. When the buyer retains the goods without giving a notice of rejection and upon expiry of reasonable time
C. When buyer gives a notice of rejection to the seller
D. When buyer does any other act adopting the transaction
22. Choose the most appropriate answer. Unless otherwise agreed, the goods remain at seller’s risk until:
A. The goods have been delivered to the buyer
B. The goods have been utilised by the buyer
C. The price to the goods has been received by seller
D. The property therein has been transferred to the buyer
23. When is the sale by mercantile agent who is in the possession of the goods or documents of the title to the goods not
valid:
A. When the mercantile agent acts in the ordinary course of business
B. When the buyer is acting in good faith and
C. When the buyer acts in good faith and has notice that the seller has no authority to sell at the
time of the contract of sale
D. When the owner has expressly authorised the act
24. When the seller has obtained possession of goods under a voidable contract, what title does the buyer acquire when
the goods are passed under the contract of sale:
A. Buyer acquires good title to the goods if he acts in good faith though he had notice of seller’s defect of title
B. Buyer acquires good title to the goods if he had no notice of seller’s defect of title though he did not act in
good faith
C. Buyer does not acquire a good title to the goods even though he acts in good faith and without notice of
seller’s defect of title
D. Buyer acquires good title to the goods if he acts in good faith and without notice of seller’s
defect of title
25. Which of the following cannot be treated as ‘Delivery’ under the Sale of Goods Act, 1930:
A. Doing anything which has the effect of putting goods in possession of legal representatives of
seller
B. Doing anything which has the effect of putting goods in possession of any person authorised by the buyer
C. Doing anything which has the effect of putting goods in possession of the buyer
D. Doing anything which the parties agree to be treated as delivery
26. What is the effect of part delivery of goods made in the progress of delivery of the whole of the goods as per section
34 of the Sale of Goods Act, 1930:
A. Part delivery does not operate as a delivery of remainder.
B. Part delivery of the goods cannot be made under the Act.
C. Part delivery has the same effect as the delivery of the whole only in case of perishable goods.
D. Part delivery has the same effect as the delivery of the whole irrespective of the type of goods
unless part delivery is made with intention of severing it from whole
27. Which of the following statement is correct with regard to delivery of goods by a seller:
A. The seller is bound to deliver the goods under all circumstances
B. The seller is bound to deliver the goods when there is either an express contract or when the
buyer applies for delivery
C. The seller is bound to deliver the goods only when there is an express contract to that effect
D. The seller is bound to deliver the goods only when the buyer applies for delivery
28. Which of the following statements is incorrect in respect of Rules as to delivery:
A. Where the goods are in the possession of a third person, the goods are not delivered to buyer unless such
third person acknowledges to the buyer that the goods are held by him on seller’s behalf
B. Where no time is fixed for sending the goods it should be delivered within a reasonable time
C. The expenses of and incidental to putting the goods into a deliverable state shall be borne by the buyer
D. Demand or tender of delivery may be treated as effectual only when made at a reasonable
hour
29. As per the provisions of Sale of Goods Act, 1930 which of the following is not a consequence of delivery of wrong
quantity of goods to the buyer:
A. Where the seller delivers less than the contracted quantity the buyer may reject the same
B. Where the seller delivers more than the contracted quantity, the buyer can only reject the
goods not included in the contract
C. Where the seller delivers the contracted goods mixed with the goods of a different description, the buyer
can reject the goods of different description or may reject the whole of the goods.
D. Where the seller delivers more than the contracted quantity, the buyer may accept the goods included in the
contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so
delivered, he shall pay for them at the contract rate
30. Which of the following is true as regards delivery of goods in instalments as provided under Sale of Goods Act:
A. The buyer is bound to accept the instalment deliveries only in case of perishable goods
B. The buyer is bound to accept the instalment deliveries only in case of sale of goods by description
C. The buyer is bound to accept the instalment deliveries only if agreed between the parties
D. Delivery of goods can’t be made in instalments
31. Choose the most appropriate option out of the following in respect to return of rejected goods by the buyer:
A. Buyer is not bound to return any type of rejected goods, having right to do so, if he intimates
to the seller that he refuses to accept the same
B. Buyer is bound to return all types of rejected goods
C. Buyer is bound to return only those rejected goods which are perishable
D. Buyer is bound to return only those rejected goods which are sold by description.
32. Out of the following persons which of the following does not come under the definition of the ‘’unpaid seller’’ as per
Chapter V of Sale of Goods Act:
A. A seller to whom the whole of the price has not been paid or tendered
B. A seller to whom more than half of the price has been paid or tendered
C. A seller who has received a bill of exchange as conditional payment and the condition on
which it was received has not been fulfilled by reason of the dishonour of the instrument or
otherwise.
D. A seller who has received a negotiable instrument as conditional payment and the condition on which it was
received has not been fulfilled by reason of the dishonour of the instrument or otherwise
33. Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
A. Right of lien on goods for the price while the goods are in possession of seller.
B. Right of stopping the goods in transit, in case of insolvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to the buyer
34. In which of the following cases the unpaid seller cannot exercise the right of lien on goods in his possession:
A. Where goods have been sold without any stipulation regarding credit
B. Where the goods have been sold on credit but the term of the credit has expired
C. Where the buyer becomes insolvent
D. Where the goods have been sold on credit but the term of credit has not expired
35. In which of the following cases an unpaid seller does not lose his right of lien:
A. When seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer
without reserving the right of disposal
B. When buyer or his agent lawfully obtains possession of the goods
C. When the unpaid seller has obtained the decree for the price of the goods
D. When the unpaid seller himself waives off his right of lien
36. In which of the following cases an unpaid seller who has parted with the possession of the goods has the right of
stopping such goods in transit:
A. When the buyer of goods has been declared as a person of unsound mind
B. When the buyer of goods has been has been sentenced to imprisonment for a term of more than six months
under any law
C. When the buyer of goods has been declared as an insolvent
D. When the buyer of goods has been sentenced to imprisonment for a term of more than two years under any
law
37. In which of the following cases, transit of goods is not deemed to be at an end:
A. When the goods are rejected by the buyer and the carrier or bailee continues in possession
of goods
B. When the buyer or his agent in that behalf obtains delivery of goods before their arrival at the appointed
destination
C. When goods are in the possession of the carrier or bailee on buyer’s behalf after their arrival at the
appointed destination
D. When the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent
38. Which of the following is incorrect with regard to the manner through which right of stoppage in transit can be
exercised by an unpaid seller:
A. An unpaid seller can exercise his right of stoppage in transit by taking actual possession of the goods
B. An unpaid seller can exercise his right of stoppage in transit by giving notice of his claim to the carrier who
is in the possession of goods
C. An unpaid seller can exercise his right of stoppage in transit by giving notice of his claim to the bailee who is
in the possession of the goods
D. Unpaid seller can exercise the right of stoppage in transit by giving an advertisement in
leading newspaper of the place where the buyer ordinarily carries on his business
39. Choose the most appropriate option in respect of a Sale which is not generally rescinded by lien or stoppage in
transit:
A. A contract of sale is rescinded by the exercise of an unpaid seller’s right of lien or stoppage of lien
B. Where an unpaid seller who has exercised his right of lien or stoppage in transit resells the goods, the buyer
of such goods does not acquire a good title thereto as against the original buyer.
C. Where the seller resells the goods in case of buyer’s default the original contract of sale is not rescinded
D. Where the unpaid seller who has exercised his right of lien or stoppage in transit gives
notice to buyer of his intention to resell, the unpaid seller may resell the goods within a
reasonable time and recover damages incurred due to his breach of the contract from the
original buyer
40. Which of the following does not fall in the category of “goods”:
A. Stock and shares
B. Money and actionable claims
C. Growing crops and grass
D. Things attached to or forming the part of land which are agreed to be severed before sale or under contract
of sale
41. Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the
buyer at the time when the:
A. Parties intend the property in goods to pass
B. Contract is entered into
C. Price is paid
D. Delivery of goods has been made
42. A contract of sale can be:
A. Absolute only
B. Conditional only
C. Absolute or conditional
D. Conditional only with the consent of the buyer
43. Where the transfer of the property in the goods is to take place at a future time or subject to some condition, then
such contract is called:
A. An agreement to sell
B. A contract to Sale
C. Future Contract
D. Conditional contract
44. What are the requisites of contract of sale:
A. An Offer and delivery of goods
B. An Offer to buy or sell goods, for a price and its acceptance
C. An Offer, delivery, possession and acceptance
D. An Offer, price, delivery and acceptance
45. According to Sale of Goods Act, 1930, ‘seller’ means a person:
A. who only agrees to sell the goods
B. who only sells the goods
C. who sells or agrees to sell
D. who transfers the possession of the goods to the other party
46. Where the goods are of perishable nature or where the unpaid seller exercises his right of lien or right of stoppage of
goods in transit and gives notice to buyer for payment and buyer does not pay or tender within reasonable time, an
unpaid seller may:
A. Resell the goods and can recover the damages from the original buyer
B. Cannot resell the goods
C. Ask the buyer again to make payment
D. Take possession and mark the goods as bad
47. _____________ is termed as consideration in a contract of sale:
A. Exchange money
B. Barter money
C. Price
D. Reward
48. When the buyer chooses to treat a breach of a condition as a breach of warranty, then the buyer may:
A. Repudiate the contract
B. Reject the goods
C. Ask for indemnification
D. set up against the seller the breach of warranty in diminution or extinction of the price or
can sue the seller for damages
49. When the price is not determined in the contract or agreed between the parties, the buyer shall pay the seller:
A. a fair price
B. a reasonable price
C. market price
D. average price
50. In case of breach of condition, the breach gives rise to:
A. Claim for damages
B. Rejection of goods
C. A right to repudiate the contract
D. A right of indemnification
51. Which of the following is not an implied condition or warranty in a contract of sale:
A. The seller may take back the possession of the goods at a future date
B. The seller has a right to sell the goods and that in the case of an agreement to sell he will have a right to sell
the goods at the time when the property is to pass
C. The buyer shall have and enjoy quiet possession of the goods
D. The goods shall be free from any charge or encumbrance in favour of any third party not declared or known
to the buyer before or at the time when the contract is made.
52. If the contract of sale is by sample as well as by description:
A. It is sufficient if the bulk of goods correspond to sample only
B. It is sufficient if the bulk of goods correspond to description only
C. It is not necessary to conform to the sample or description
D. It is not sufficient that the bulk of the goods correspond with the sample if the goods do not
correspond with the description
53. Where under a contract of sale, the property in the goods has passed to the buyer and the buyer wrongfully neglects
or refuses to pay for the goods, the seller may:
A. Ask for indemnification
B. Sue the buyer for damages of non-acceptance
C. Sue the buyer for compensation
D. Sue the buyer for the price of goods
54. The position of the finder of lost goods is that of:
A. Bailee
B. Bailor
C. Creditor
D. True owner
55. X purchases a car from Y. After 6 months, Z, the true owner of the car, demanded it from X. X had to return it to its
true owner. X was entitled to recover the full price even though several months have passed. This is an example of:
A. Condition as to description
B. Condition as to sample
C. Condition as to title
D. Condition as to fitness
56. A drug was sold by an auction and according to the usage of trade it was to disclose in advance of any vast damage
caused in the quality of the drug but such disclosure was not made and the drug was found to be defective. This is an
example of:
A. Warranty as to undisturbed possession
B. Warranty as to quality or fitness by usage of trade
C. Warranty as to non-existence of encumbrances
D. Disclosure of dangerous nature of goods
57. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue for:
A. Damages for non-delivery
B. Damages for non-acceptance
C. Specific performance
D. Compensation
PART-4
1. Compensation to states under GST (Compensation to States) Act , 2017 is paid by

a) Central Government from consolidated fund of India
b) Central Government from GST compensation fund of India
c) Central Government directly from the collection of compensation cess
d) GST Council under Constitution of India.
2. While computing compensation to states, tax revenue of this tax/ these taxes is
excluded
a) petroleum crude, diesel, petrol, ATF and natural gas
b) Alcohol for human consumption
c) entertainment tax collected by local authorities
d) All of the above
3. Input tax credit on compensation cess paid under GST (Compensation to States) Act,
2017
a) is not available c) is available
b) is available but not fully d) is available after one year
4. Maximum rate of CGST prescribed by law for intrastate supply made is----
a) 18% c) 20%
b) 40% d) 28%+cess
5. Input tax credit on Compensation cess paid
IGP-CS GST MCQs CA Vivek Gaba
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b) neutral with no change d) None of the above
9. The first committee to design GST model was headed by
a) Vijay Kelkar c) Asim Das Gupta
b) Dr. Chidambaram d) None of the above
10. First discussion paper (FDP) which formed the basis for GST in 2009 was released by
a) Union Finance Ministry c) Dr. Manmohan Singh
b) GST Council d) Empowered Committee
11. Roll out of GST requires constitutional amendment because—
a) existing laws were cascading
b) the powers to levy were exclusive i.e. the state had power to tax the goods but not
services and centre had power to tax services and levy on goods
c) there are separate laws for goods and services
d) All of the above
12. Works contract under GST is goods used in work relating toa) Immovable property
b) Both movable and immovable property
c) Immovable property treated as supply of service
d) Immovable property treated as supply of goods
13. IGST deals with
a) Composition scheme
b) Time of supply
c) Service tax on imported services
d) All of the above
14. The turnover limit of Rs. 50 Lakh for composition scheme is not applicable to the state
of
a) Himachal Pradesh c) Assam
b) Uttarakhand d) None of the above
15. A supplier is liable to get registered under GST if his aggregate turnover in a financial
year crosses Rs. 20 lakh in a state or UT other than special category states if he isa) an interstate supplier
b) an intra-state supplier
c) Electronic commerce operator
d) Person liable to pay GST under reverse charge
16. One of the following states does not fall under special category given under Art. 279A
of the Constitution
a) Himachal Pradesh c) Uttarakhand
b) Chhattisgarh d) Jammu & Kashmir
17. Exemption from registration is available to
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a) Central & State Govt. Departments c) Agriculturists
b) a) & b) above d) None of the above
18. Agriculturist
a) Individual or HUF c) Individual and HUF
b) Partnership d) All the above
19. A person is having multiple business requires registration
a) Single c) Each business separately
b) Either A or B d) None of the above
20. Article _____ of constitution of India empowers parliament to impose IGST in India.
a) 69A c) 265A
b) 279A d) none of the above
21. Full-fledged GST was recommended by
a) Raja Chellaiah committee c) Vijay Kelkar Task Force
b) GST Council d) Man Mohan Singh Commission
22. One of the following taxes is already subsumed under GST
a) Tax on motor spirit c) Luxury Tax
b) Tax on production of alcohol d) Tax on electricity
23. One of the following taxes is not subsumed under GST
a) Octroi by local authorities c) Entertainment tax by local authorities
b) Entry tax by State Governments d) Tax on lottery by State Governments
24. GST is ______________
a) a value added tax c) tax on goods and services
b) tax on consumer goods and services d) none of the above
25. Dual model of GST as adopted in India has been drawn majorly from
a) Australia c) France
b) USA d) Canada
26. GST is ____________
a) applicable to the state of J&K
b) not applicable to the state of J&K
c) going to be applicable to the state of J&K from later date
d) both (b) and (c) above
27. The rate of GST as applicable on goods and services are:
a) 0% 5% 12% 16% 28% c) 0% 6% 12% 18% 28%
b) 0% 5% 12% 18% 28% d) 0% 5% 12% 18% 26%
28. Under which Constitutional Amendment Act, 2016, constitution was amended to
introduce GST in India
a) 122 c) 121
b) 101 d) none of the above
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29. Under the provisions of GST law, tax is levied
a) simultaneously by Union and State laws c) only by the Union laws
b) only by the State laws d) exclusively by Union and State laws
30. GST Laws are implemented on the recommendation of
a) Central Government c) GST Network (GSTN)
b) GST Council d) President of India
31. When did the President of India gave assent to the Central GST Law?
a) 18th April 2017 c) 22nd April 2017
b) 5
th April 2017 d) 12th April 2017
32. Money means:
a) Indian legal tender c) Cheque/ Promissory note
b) Foreign currency d) all of the above
33. Where is GST applicable?
a) All over India except the state of Jammu and Kashmir
b) All over India except the state of Sikkim
c) All over India except the state of Meghalaya
d) All over India
34. What is the meaning of non-taxable territory?
a) Outside taxable territory c) Inside taxable territory
b) Interstate taxable territory d) None of the above
35. What does the term “person” includes?
a) HUF c) Individual
b) LLP d) All of the above
36. GST Council is referred under which Article of the Constitution?
a) 279 c) 279A
b) 277 d) 276
37. What is the weight of vote that the Centre has in the GST Council?
a) 1/4th of total votes cast c) 1/3rd of total votes cast
b) 1/2th of total votes cast d) none of the above
38. What is the weight of vote that the all the States together have in the GST Council?
c) 1/4th of total votes cast c) 2/3rd of total votes cast
d) 1/2th of total votes cast d) 3/4th of total votes cast
39. Who is the Chairperson of the GST Council
a) Finance Secretary c) Union Finance Minister
b) State’s Finance Minister by rotation d) Prime Minister
40. Taxable turnover below ` 1.5 crore is under the control of
a) State c) Centre
b) Both Centre and State d) exempt from the purview of GST
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41. Under which Schedule, power to declare certain activity/ transaction as neither supply
of goods nor of services
a) Schedule I c) Schedule III
b) Schedule II d) Schedule IV
42. When was GST Council constituted?
a) 12th September 2016 c) 13th September 2016
b) 20th September 2016 d) 16th September 2016
43. What is address for delivery?
a) Recipient address mentioned in the invoice
b) Recipient address mentioned in delivery challan
c) Not necessarily recipient address
d) Recipient address mentioned in the gate pass
44. Who is an agriculturist?
a) Individual or HUF c) Individual and HUF
b) Partnership d) All of the above
45. An Associated Enterprise is mentioned in?
a) Income Tax Act, 1961 c) Central GST Law, 2017
b) State GST Law, 2017 d) Companies Act, 2013
46. Appointed day is __________________
a) date on which the provisions of the act shall come into force
b) date on which President gave assent
c) date on which both houses passed the act
d) date on which it is sent to Finance Ministry
47. What is conveyance?
a) vessel c) vehicle
b) aircraft d) all of the above
48. Which section mentions about inter-state supply of service?
a) section 8 c) section 18
b) section 14 d) section 12
49. Place of supply referred in Integrated Goods and Service Tax Act is mentioned in
which Chapter?
a) Chapter II c) Chapter V
b) Chapter III d) Chapter VIII
50. Deemed Export is mentioned in which section?
c) section 137 c) section 147
d) section 142 d) section 145
51. When does Quarter end?
a) March c) September
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b) December d) All of the above
52. What is the rate of levy under composite scheme on the Manufacturer?
a) 2 percent c) 3 percent
b) ½ percent d) 1 percent
53. An assessee who has opted for the Composite Scheme, is he eligible to take input tax
credit?
a) Yes c) No
b) May be d) In certain cases
54. An assessee who has opted for the Composite Scheme, can he collect tax under GST?
c) Yes c) No
a) May be d) In certain cases
55. What is the threshold limit for composite tax levy?
a) ` 60 lakh c) ` 50 lakh
b) ` 70 lakh d) ` 1 crore
56. When does the liability to pay tax on goods arise?
a) at the time of supply
b) at the time when goods reach supplier
c) at the time of preparing invoice
57. The time of supply of goods shall be the earlier of _____________
a) date of issue of invoice c) last date
b) date of receipt of payment d) either of the above
58. What does Taxable event mean?
a) Tax on supply c) either a) or b)
b) Tax on services d) both a) or b)
59. Tax is paid on which value?
a) Transaction value c) manufacturing value
b) manufacturing value plus profit d) notional value
60. Which of the following condition/s must be satisfied to be eligible to avail Input tax
credit?
a) on receipt of goods
b) on payment of taxes paid by supplier to Govt.
c) supplier has to be file return under section 39
d) all of the above
61. Input Tax Credit is available _________
a) in the course or furtherance of business c) on other than business expenditure
b) both a) and b) d) none of the above
62. How is Input Tax Credit on capital goods available?
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a) in single installment c) equally in five installment
b) 10% every year d) none of the above
63. Which sections mentions about the Appellate Tribunal?
64. Authorised representative is mentioned in which section?
65. In which section is Common portal referred to?
66. Debit note and Credit note is mentioned in which section?
b) section 39 d) none of the above
67. Valid return is mentioned in which section?
68. What is the threshold limit for an individual limit for GST registration?
a) ` 10 lakh c) ` 15 lakh
b) ` 12 lakh d) ` 20 lakh
69. In which section is “invoice” or “tax invoice” in?
70. Electronic cash ledger and Electronic credit ledger is mentioned in which section?
71. A person is having multiple businesses required registration
a) Single c) either of the two
b) each business separately d) none of the above
72. GST registration is
a) PAN based c) passport based
b) Aadhar based d) none of the above
73. Deemed registration is
a) after four working days c) after five working days
b) after three common working days d) after seven working days
74. Annual Return has to be filed every year:
a) 30th June c) 30th September
b) 31st December d) 31st October
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75. IGST is levied on supply of goods and provision of services ____________
a) within state c) either of a) or b)
b) between two states d) none of the above
76. IGST is levied on supply of goods and provision of services by ___________
a) Centre c) State
b) Union Territory d) both b) and c)
77. Tax deduction at the rate of 1% on certain persons, who are recipients of supply, from
the payment made or credited to the supplier where total value of supply, under
contract, is exceeding rupees:
a) ` 1,00,000 c) ` 2,50,000
b) ` 1,50,000 d) ` 5,00,000
78. The credit of CGST can be utilised for the payment of:
a) SGST c) IGST
b) UTGST d) none of the above
79. GST would not be applicable to:
a) alcohol for human consumption
b) petrol
c) natural gas
d) diesel
e) all of the above
80. Which of the following GST bill have been passed by the Parliament?
a) GST (Compensation to States) Bill c) IGST Bill
b) UTGST Bill d) All of the above
81. Which of the following is not eligible for Composition Scheme:
a) Inter-state supply of goods
b) manufacture of notified goods
c) Person supplying goods through e-commerce sector
d) All of the above
82. The following tax will not be subsumed into GST:
a) Luxury Tax c) entertainment tax
b) Electricity duty d) value added tax
83. Utilisation of integrated GST would be in which order?
a) IGST, CGST, SGST c) IGST, SGST, CGST
b) CGST, SGST, IGST d) SGST, IGST, CGST
84. Which of the following does Aggregate Turnover under GST does not include?
a) Exempt supplies
b) export of goods and/ or services
c) All taxable supplies
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d) value of inward supplies on which tax has been paid under reverse charge
85. Which of the following is subsumed under Central GST?
a) Central Sales Tax c) Customs Duty
b) Service Tax d) all of the above
86. Which of the following true in respect of Goods and Service Tax
a) It is destination based tax c) it is a consumption tax
b) It is levied on supply of goods or services d) All of the above
87. What is the threshold limit for composition levy?
a) ` 40 lakh c) ` 1 crore
b) ` 30 lakh d) ` 70 lakh
88. Which of the following require themselves to be registered compulsory, irrespective of
threshold limit?
a) Casual taxable person c) non-resident taxable person
b) Input service distributor d) all of the above
89. The time of supply of voucher in respect of goods and services shall be
a) date of issue of voucher, in case of identifiable supply
b) date of redemption of voucher
c) both a) and b)
d) none of the above
90. Which article of constitution of India empowers the Parliament to impose IGST in India?
a) 69A c) 279A
b) 265A d) none of the above
91. What does the conditions for supply includes?
a) Supply is a taxable service
b) Supply is made in the taxable territory
c) Supply is made by taxable person
d) All of the above
92. Which form has to be filed for withdrawal from composition levy?
a) GST CMP 04 c) GST CMP 03
b) GST PCT 2 d) GST MIS 1
93. When the taxable turnover is above ` 1.5 crore, it is under the control of
a) State c) Centre
b) Both Centre and State d) exempt from the purview of GST
94. Which of the following statement is correct:-
I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods
or services at every point in the supply chain
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IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I b) I & II Both
b) I, II & III d) I, II, III & IV all statement is correct
95. Which of the following State Taxes have not been subsumed under GST?
i. Road & passenger tax
ii. Central Sales Tax
iii. Toll tax
iv. Luxury Tax
v. Property tax
vi. Electricity duty.
a) i, iii, v & vi c) Only iii, iv & v.
b) Only vi d) None of the above
96. Over the Counter Payment can be made in branches of Banks Authorized (for deposits
up to ____________ per challan per tax period, by cash, cheque or demand draft) to
accept deposit of GST –
a) ten thousand rupees c) One thousand rupees
b) Two thousand rupees d) None of the above
97. The audit needs to be completed within a period of _____ months from the date of
commencement of the audit, but a further extension for a period of ____ months may
be provided by the Commissioner for the reasons recorded in writing –
a) Three, Six c) Six, Six
b) Nine, Three d) Four, Three
98. Where the amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or the amount of refund wrongly taken exceeds 200 lakhs upto 500 lakhs then –
a) imprisonment for a term which may extend to 5 years and with fine
b) imprisonment for a term which may extend to 7 years and with fine
c) imprisonment for a term which may extend to 5 years and without fine
d) imprisonment for a term which may extend to 3 years and with fine
99. What is the threshold limit of Registration under GST?
a) 10 lakhs (for special category States) and Rs. 20 lakhs for other states and Union
territories
b) 20 lakhs (for special category States) and Rs. 10 lakhs for other states and Union
territories
c) 5 lakhs (for special category States) and Rs. 10 lakhs for other states and Union
territories
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100.Where Goods or services or both are used partly for taxable supplies including zero
rated supplies under IGST or under CGST Act, and partly for exempted supplies –
a) only that amount of input tax which is attributable to the taxable supplies including
zero rated supplies will be allowed as credit and not for exempted supplies
b) 100% ITC Allowed irrespective of the usage of Goods/Services
c) Fix 50% ITC allowed in this cases
101.Proper officer shall pass an order (Provisional assessment request), within a period not
later than _______ from the date of receipt of such request –
a) 90 days c) 30 days
b) 100 days d) 120 days
102.The time duration for retention of accounts and records under GST is until expiry of
________ from the due date of furnishing of annual return for the year pertaining to
such accounts and records–
a) Seventy-two months c) seventy months
b) seventy-one months d) none of the above
103.Tax rate applicable in hands of Restaurant under composition scheme –
a) 2% (CGST + SGST) c) 5% (CSGT + SGST)
b) 18% (CGST + SGST) d) 2.5% (CGST + SGST)
104.To be eligible for registration under Composition scheme it is required that the
aggregate turnover of a registered tax payer should not exceed _______ in the
preceding financial year & the limit is ______ for North Eastern & Special Category
States)
a) ` 75,00,000/-, ` 50,00,000/- c) ` 50,00,000/-, ` 25,00,000/-
b) ` 100,00,000/-, ` 50,00,000/- d) ` 75,00,000/-, ` 20,00,000/-
105.________ is excluded from the definition of goods as well as services
a) securities and money c) Only Securities
b) Only Money d) None of the above
106.What is the correct procedure of file return under GST?
i. Submission of return
ii. Rectification of discrepancies in ITC
iii. Matching of claim in reduction in output tax liability
iv. Final acceptance of ITC
v. Matching of ITC
a) i, ii, iii, iv & v c) i, v, iv, ii & iii
b) v, ii, iii, iv & vi d) none of the above
107.What shall be time of supply in case of reverse charge?
a) the date of the receipt of goods
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b) the date of payment as entered in the books of account or payment is debited in his
bank account, whichever is earlier
c) the date immediately following thirty days from the date of issue of invoice or any
other document
d) earlier of the above
108.Which of the following states covered North Eastern and Special Category States –
i. Assam, Arunachal Pradesh,
ii. Manipur, Meghalaya,
iii. Mizoram, Nagaland,
iv. Tripura, Sikkim,
v. Delhi, Bihar
vi. Jammu & Kashmir
vii. Himachal Pradesh
a) i, ii, iii, iv & vi c) i, ii, iii, iv & vii
b) Only vi d) Only i, ii & iii
109.Which of the following Bills passed by parliament?
i. Central Goods and Services Tax (CGST)Bill
ii. Integrated Goods and Services Tax(IGST) Bill
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (CGST)Bill
a) i, ii, iii & iv c) Only i
b) Only i, ii & iii d) None of the above
110.The time duration for retention of accounts and records under GST is until expiry of
________ from the due date of furnishing of annual return for the year pertaining to
such accounts and records–
a) Seventy-two months c) seventy months
b) seventy-one months d) none of the above
111.Taxable Person whose registration has been cancelled or surrendered file final return
on ________
a) within three months of the date of cancellation of date of order of cancellation
whichever is later
b) within Six months of the date of cancellation of date of order of cancellation
whichever is later
c) within three months of the date of cancellation of date of order of cancellation
whichever is Earlier
Page13
112.Section 56 of the CGST Act, 2017 states that if any tax ordered to be refunded under
section 54 is not refunded within sixty days from the date of receipt of application
interest at such rate __________
a) not exceeding six per cent c) not exceeding nine per cent
b) not exceeding eighteen per cent d) none of the above
113.A report of Special audit signed and certified by the appointed Chartered Accountant
or Cost Accountant is required to be submitted within _____ days although this period
can be further extended to _____ days –
a) 90, 90 c) 90, 30
b) 30, 90 d) 60, 60
114.________ with respect to goods lost, stolen, destroyed or written off as well as on
goods given as gifts or free samples ________?
a) Input tax credit is not allowed, will also be not allowed
b) Input Tax credit will be allowed, will not be allowed
c) 100% Allowed in both cases
115.if a recipient fails to pay the amount of supply along with tax payable thereon
_________ from the date of issue of invoice, the recipient will be liable to pay along
with the output tax liability an amount equal to the input tax credit availed by the
recipient along with interest thereon –
a) within 3 months c) within 6 months
b) within 90 days d) none of the above
116.Which of the following activity deemed as Supply under Schedule I even if no
consideration exists –
a) sale of business assets (goods) on which ITC has been availed
b) supply of goods and/or services between related person, except gift upto Rs. 50,000
to employees.
c) agent to principal of vice-versa, if agent supplies / receives goods on behalf of
principal
d) All of the above
117.What is cut off turnover limit for compulsory registration under GST?
a) ` 9 lacs c) exceeds ` 20 lacs
b) ` 50 lacs d) No limit for registration
118.Which of the followings goods are kept out from GST whether Temporarily of
permanent?
a) alcoholic liquor for human consumption
b) petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation
turbine fuel
Page14
c) Electricity
d) All of the above
119.Import of services for a consideration __________ is deemed as Supply?
a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above
120.Which of the following taxes leviable on Imports?
a) CGST c) SGST
b) IGST d) all of the above
121.Which of the following subjects will be omitted from the Seventh Schedule?
i. Entry 54 from State List
ii. Entry 55 from State List
iii. Entry 92 and 92C from Union List
iv. Entry 97 of Union List
a) i) & ii) c) ii) & iii)
b) iii) & iv) d) all of the above
122.________ is payable on all intra-state supply of goods and/or services and _______ is
payable on all inter- State supply of goods and/or services.
a) CGST + SGST/UTGST, IGST c) IGST, CGST
b) IGST, SGST d) None of the above
123. Gift upto value of ` 50,000 in a year to an employee __________ & Gifts in value in
excess of ` 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
124.Which of the following persons are not eligible of composition scheme?
a) The scheme is not available for services sector, except restaurants.
b) Supplier of goods which are not taxable under the CGST Act/SGST Act/UTGST Act is
not eligible to register under this scheme
c) Tax payers making interstate supplies is not eligible for composition scheme
d) All of the above
125.Every taxable person shall discharge his tax and other dues under this Act or the
rules made thereunder in the following order, namely:–
i. self-assessed tax, and other dues related to the return of the current tax period
ii. self-assessed tax, and other dues related to returns of previous tax periods
Page15
iii. any other amount payable under this Act or the rules made thereunder including the
demand determined under section 73 or section 74
a) i, ii & iii c) ii, i & iii
b) iii, ii & I d) iii, i & ii
126.What shall be Time of Supply in case of reverse charge?
a) the date of the receipt of goods
b) the date of payment as entered in the books of account or payment is debited in his
bank account, whichever is earlier
c) the date immediately following thirty days from the date of issue of invoice or any
other document
d) earlier of the above
127.Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above
128.Which of the following person is not liable for registration?
a) Person supplying exempted goods or services or goods or services which are not
liable for tax under GST
b) An agriculturist, to the extent of supply of produce out of cultivation of land
c) Both a) & b)
129.Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above
130.The details of outward supplies of goods or services shall be submitted by
a) 10th of the succeeding month
b) 18th of the succeeding month
c) 15th of the succeeding month
d) 20th of the succeeding month
ANSWERS-
1 b) 23 c) 45 a) 67 b) 89 c) 111 a)
2 d) 24 a) 46 a) 68 d) 90 d) 112 a)
3 c) 25 d) 47 d) 69 c) 91 d) 113 a)
4 c) 26 a) 48 a) 70 a) 92 a) 114 a)
5 c) 27 b) 49 71 b) 93 b) 115 a)
6 a) 28 b) 50 c) 72 a) 94 d) 116 d)
7 c) 29 a) 51 d) 73 b) 95 a) 117 c)
8 a) 30 b) 52 a) 74 b) 96 a) 118 d)
9 c) 31 d) 53 c) 75 b) 97 a) 119 a)
10 d) 32 d) 54 c) 76 a) 98 d) 120 b)
11 b) 33 d) 55 d) 77 c) 99 d) 121 c)
12 c) 34 a) 56 a) 78 c) 100 a) 122 a)
13 c) 35 d) 57 d) 79 e) 101 a) 123 a)
14 b) 36 c) 58 c) 80 d) 102 a) 124 d)
15 b) 37 c) 59 a) 81 d) 103 c) 125 c)
16 b) 38 c) 60 d) 82 c) 104 a) 126 d)
17 c) 39 c) 61 a) 83 a) 105 a) 127 d)
18 a) 40 b) 62 a) 84 d) 106 c) 128 c)
19 c) 41 c) 63 a) 85 d) 107 d) 129 a)
20 d) 42 a) 64 c) 86 d) 108 c) 130 a)
21 c) 43 a) 65 d) 87 c) 109 a)
22 c) 44 a) 66 c) 88 d) 110 a)

Legal Aspects of Business MCQs

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UNIT-9 MCQ FOR COMMERCE LEGAL ASPECTS DIWAKAR EDUCATION HUB

Multiple Choice Questions

d. none of the above b. Trade Combinations not opposed to public

d. Voidable 507. Contingent contracts are

c. Alteration with the consent of party b. is discharged

b. Post contractual Impossibility a. the same parties

b. Anticipatory Breach in an express manners 736. In case the performance of a contract

797. Claim for necessaries supplied to a person c. made by

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

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

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

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

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

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

432. b 433. d 434. c 435. b 436. d Performance of the Contract

612. a 613. c 614. d 615. c 616. d 738. c

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

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

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

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

1. Compensation to states under GST (Compensation to States) Act , 2017 is paid by

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