THE INDIAN CONTRACT ACT, 1872

1. According to Section 2 of the Indian Contract, 1872, when one person signifies to
another his willingness to do or to abstain from doing anything, with a view to
obtain the assent of that other to such act or abstinence, he is said to make a:
(a) Promise
(b) Consent
(c) Proposal
(d) Communication
Correct Option: C
2. Every promise and every set of promises, forming the consideration for each other,
is called as:

a. A voidable contract
b. A contract
c. A void contract
d. An agreement

Correct Option: D

3. An agreement enforceable by law is:

a. A voidable contract
b. Void
c. A contract
d. A void contract

Correct Option: C

4. An agreement which is enforceable by law at the option of other or others is:

a. A contract
b. A voidable contract
c. Void
d. A void contract

Correct Option: B

5. The Indian Contract Act, 1872 extends to:

a. The State of Jammu and Kashmir.

 b. The Union Territories of India
c. The whole of India except the State of Jammu and Kashmir.
d. The whole of India.

Correct Option: C

6. The Act which deals with the matters relating to the contract is titled as:

a. The Contract Act, 1872

b. The Indian Contract Act, 1872
c. The Indian Contract Act, 1882
d. The Indian Contract Act, 1972

Correct Option: B

7. An agreement not enforceable by law is said to be:

a. A contract
b. Void
c. A voidable contract
d. A void contract

Correct Option: B

When the communication of a proposal is complete:

a. When it do not comes to the knowledge of the person to whom it is made.

b. When it comes to the knowledge of another person that some communication was made
to the concerned person.
c. When it comes to the knowledge of the person to whom it is not made.
d. When it comes to the knowledge of the person to whom it is made.

Correct Option: D

8. The Indian Contract Act,1872 which was enacted on 25 April, 1872 came into force
with effect from:

a. 1st May, 1872

b. 1st September, 1872
c. 1st October, 1872
d. 1st November, 1872

Correct Option: B
 9. A contract which ceases to be enforceable by law becomes void when it ceases to be:

a. Void
b. Voidable
c. Enforceable
d. Unenforceable

Correct Option: A

10. An agreement was entered into with the minor. This is agreement is:

a. Void
b. Voidable
c. Bad
d. Illegal

Correct Option: A

11. Where a minor has entered into a contract for purchase of necessary items. In such
cases:

a. The minor is not personally liable.

b. Minor’s estates are liable to make good.
c. Minor’s guardian is liable.
d. The minor is personally liable

Correct Option: A

12. Consent is defined as:

a. Two or more persons are said to consent when they agree.

b. Two or more persons are said to consent when they agree upon the same thing in the
same sense.
c. Two or more persons are said to consent when they understand the same thing.
d. Two or more persons are said to consent when they agree upon the same thing.

Correct Option: B

13. In order to convert a proposal into a promise, the acceptance must:

a. Be absolute and qualified.

 b. Be expressed in some usual and reasonable manner, unless the proposal prescribes the
manner in which it is to be accepted.
c. Be absolute and unqualified
d. Both B and C only.

Correct Option: D

14. When consent to an agreement is caused by coercion, fraud or misrepresentation,

the agreement is a contract :

a. Voidable at the option of the party whose consent was so cause.

b. Illegal
c. Depends upon the circumstances of the case.
d. Void

Correct Option: A

15. If the consent was caused by misrepresentation or by silence, fraudulent within the
meaning of section 17, the contract, nevertheless, if the party whose consent was so
caused had the means of discovering the truth with ordinary diligence:

a. may be voidable
b. may not be not voidable
c. is voidable
d. is not voidable

Correct Option: D

16. A fraud or misrepresentation which did not cause the consent to a contract of the
party on whom such fraud was practised, or to whom such misrepresentation was
made, does not render a contract:

a. Void
b. Voidable
c. Bad
d. Illegal

Correct Option: B

17. Where both the parties to any agreement are under a mistake as to a matter of fact
essential to the agreement,

a. The agreement is voidable.

b. The agreement can’t be enforceable at law.
c. The agreement is void.
d. The agreement is not void.
Correct Option: C

18. When consent to an agreement is caused by undue influence, the agreement is a

contract

a. Bad
b. Void
c. Illegal
d. Voidable at the option of the party whose consent was so cause

Correct Option: D

19. What agreements are contracts?

a. All agreements are contracts if they are made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object, and are not hereby expressly
declared to be void.
b. All agreements are contracts if they are made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object, and may or may not be
expressly declared to be void.
c. All agreements are contracts if they are made by the consent of parties competent to
contract, for a lawful consideration and with a lawful object, and are not hereby expressly
declared to be void.
d. All agreements are contracts if they are made by the free consent of parties competent to
contract, for any object, and are not hereby expressly declared to be void.

Correct Option: A

20. Every agreement by which any party thereto is restricted absolutely from enforcing
his rights under or in respect of any contract, by the usual legal proceedings in the
ordinary tribunals, or which limits the time within which he may thus enforce his
rights:

a. Is valid.
b. Is voidable
c. Is void.
d. Is illegal

Correct Option: A

21. The agreements which are in restraint of trade are;

a. Valid
b. Illegal
c. Void
d. Voidable
Correct Option: C

22. An agreement in restraint of the marriage of a major persons is:

a. Legal
b. Illegal
c. Void
d. Voidable

Correct Option: C

23. If any part of a single consideration for one or more objects, or any one or any part
of any one of several considerations for a single object, is unlawful:

a. The agreement is void.

b. The agreement is voidable.
c. The agreement is enforceable.
d. The agreement is unenforceable.

Correct Option: A

24. A offers to sell his house for Rs. 5 lakhs to B by word of mouth and B agrees to buy
it for this price by word of mouth or in writing. It it a
a. Express Contract
b. Implied Contract
c. Constructive or Quasi Contract
d. E-Com Contracts / Contracts over Internet

Correct Option: A

25. A finder of lost goods is under obligation to find out the true owner and return the
goods. It is a
a. Express Contract
b. Implied Contract
c. Constructive or Quasi Contract
d. E-Com Contracts / Contracts over Internet

Correct Option: C

26. A agrees to make furniture for B for Rs. 5,000.Mr. A has yet to make furniture and
Mr. B has not made the payment. So, both A & B are yet to perform their
obligations. Suppose A has made the furniture but B has yet to make payment, it is
executed on A's part but executory on B's part. It is a
 a. Executed Contract
b. Executory Contract
c. Unilateral Contract
d. Bilateral Contract

Correct Option: B

27. A sells a TV set to B for Rs.20, 000. B pays the price and A hands over TV set to B.
It is a
a. Executed Contract
b. Executory Contract
c. Unilateral Contract
d. Bilateral Contract

Correct Option: A

28. A wagering contract is .................. whereas a contingent contract is........................:

a. Void/valid
b. Valid/void
c. Valid/voidable
d. Voidable/valid

Correct Option: A

29. A agrees to pay B Rs 10000, if two straight lines should enclose a space. The
agreement is.....................:

a. Void
b. Voidable
c. Valid
d. Illegal

Correct Option: A

THE NEGOTIABLE INSTRUMENT ACT, 1881

Negotiable Instruments Act Multiple

1. ______ means 'something legally transferable from one person to another for a
consideration'.
A. Instrument

B. Negotiable
 C. Negotiable Instruments

D. all of the above

Ans. B

2. _______means ' a written document by which some legal rights are created in favor of
some person'
A. Instrument

B. Negotiable

C. Negotiable Instruments

D. all of the above

Ans. A

3. Negotiable instrument means a promissory note, bill of exchange or cheque, payable to

_______
A. Bearer
B. b order
C. either to bearer or order
D. neither bearer nor order

Ans. C

4. A negotiable instrument is freely transferable, by delivery if it is a/an _____ instrument.

A. order
B. b. bearer
C. both a & B
D. None of the above

Ans. B

5. A negotiable instrument is freely transferable, by endorsement if it is a/an _________

instrument.
A. order
B. bearer
C. both a & b
D. None of the above
Ans. A

6. The transferee of a negotiable instrument is the one

A. who transfer the instrument

B. on whose name it is transferred

C. c who en chases it
D. none of the above

Ans. B

7. The transferor of a negotiable instrument is the one

A. who transfer the instrument
B. on whose name it is transferred
C. who en chases it
D. none of the above

Ans. A

8. The instrument must be taken in good faith and with a

A. Interest
B. consideration
C. legal relation
D. business motive

Ans. B

9. when an instrument has been lost it is presumed that it was

A. expired
B. duly stamped
C. stolen
D. misplaced

Ans. B

10. which of the below given sentence is proper as to considered to be written in negotiable
instruments
A. I promise to pay B rs.5oo
B. Mr. B I.0 (owe).0 Rs.l000.
C. I am liable to pay you Rs.1000.
 D. none of the above.

Ans. D

11. __________ an instrument in writing containing an unconditional undertaking signed by

the maker to pay a certain sum of money only to, or to the order of, a certain person or
to the bearer of the instrument
A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. A

12. ____________ is an instrument in writing, containing an unconditional order, signed by the

maker, directing a certain person, to a pay a certain sum of money only to, or to the order of a
certain person or to the bearer of the instrument
A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. B

13. The number of parties to a bill of exchange is _________

A. 2
B. 4
C. 6
D. 3

Ans. D

14. The number of parties to a Promissory Note is

A. 2
B. 4
C. 6
D. 3

Ans. A

15. Sec 4 of negotiable instruments Act 188o deals with

 A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. A

16. Sec 5 of negotiable instruments Act 188o deals with

A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. B

17. Sec 6 of negotiable instruments Act 1880 deals with

A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. C

18. The parties of a bill of exchange are

A. drawe acceptor and payee
B. banker drawee and payee
C. banker acceptor and payee
D. banker drawer and payee

Ans. A

19. ________ cannot be a bearer instrument

A. Promissory Note
B. bill of exchange
C. Cheque
D. none of the above

Ans. A

20. Acceptance is __________ in case of bill of exchange

A. compulsory
 B. optional
C. not compulsory
D. adequate

Ans. A

21. Drawer is both debtor to one and creditor to another in case of

A. Promissory Note
B. bill of exchange
C. Cheque
D. all of the above

Ans. D

22. To calculate the maturity date of a negotiable instrument the drawing date to be ______
for counting
A. included
B. considered
C. excluded
D. none of the above

Ans. C

23. If the instrument is not 'on demand' days of grace is grante

A. 7
B. 5
C. 3
D. 4

Ans. C

24. when the is crossed with Two parallel lines or with word lk Co.' et this crossing is known
as
A. general crossing
B. special crossing
C. restrictive crossing
D. none of the above

Ans. A
25. when the is crossed with Two parallel lines or with `A/c payee only.' et this crossing is
known as
A. general crossing
B. special crossing
C. restrictive crossing
D. none of the above

Ans. C

26. In the case of Bill of Exchange drawee is the _____________

A. maker
B. acceptor
C. payee
D. none of the above

Ans. B

27. When the loss of cheque is intimated to the bank. It is advisable to get the cheque
A. dishonored
B. cancelled
C. stalled
D. countermanded

Ans. D

28. When bank has reason to believe that the title of the presenter is defective, then the
cheque will be
A. dishonored
B. cancelled
C. stalled
D. countermanded

Ans. A

29. A holder in due course will get protected from earlier defect of
A. no consideration
B. conditional delivery
C. unlawful means
D. all of the above

Ans. D
30. _________ of an instrument means a person legally entitled to possess and receive in his
own name
A. owner
B. maker
C. holder
D. receiver

Ans. C

31. Holder of an instrument is a person who holds the instrument

A. for a longer period
B. before maturity
C. after maturity
D. on behalf of the owner

Ans. B

32. Countermanding of a cheque is also known as

A. cancellation
B. dishonor
C. stop payment
D. payment through counter

Ans. C

33. 'Something legally transferable from one person to another for a consideration' is known
as
A. Endorsement
B. bill of exchange
C. promissory note
D. negotiation

Ans. D

34. ' A written document by which some legal rights are created in favour of some person'
A. Endorsement
B. Instrument
C. promissory note
D. negotiation
Ans. B
THE SALE OF GOODS ACT, 1930

1. A contract for the sale of goods where property would pass to the buyer on payment of total price
would
be;
(a) sale (b)agreement to sell
(c) hire-purchase contract. (d)sale on approval.

Ans. :- B

2. The term "goods" under Sale of Goods Act, 1930 does not include
(a) goodwill. (b)actionable claims.
(c) stocks and shares. (d)harvested crops.

Ans. :- B

3. A contract for the sale of "future goods" is

(a) sale (b)agreement to sell.
(c) void. (d)hire-purchase contract.

Ans. :- B

4. The sale of Goods Act, 1930 deals with the

(a) movable goods only. (b)immovable goods only.
(c) both movable and immovable goods. (d) all goods except ornaments.

Ans. :- A

5. Under Sale of Goods Act, 1930 the terms "Goods" means every kind of movable property and it
includes
(a) stock and share. (b)growing crops, grass
(c) both (a) and (b). (d)none of the above

Ans. :- C
6. The Sale of Goods Act, 1930 deals with
(a) sale (b) mortgage.
(c) pledge. (d) all of the above.

Ans. :- A

7. Which one of the following is true?

(a)the provisions of Sale of Goods were originally with the Indian Contract Act,
1872.
(b)the Sale of Goods Act, 1930 deals with mortgage.
(c)the Sale of Goods Act restricts the parties to modify the provisions of law.
(d)none of the above.
Ans. :- A

8. Goods which are in existence at the time of the Contract of Sale is known as
(a) present Goods. (b)existing Goods.
(c) specific Goods. (d)none of the above.

Ans. :- B

9. Which of the following is not a form of delivery?

(a) constructive delivery. (b)structured delivery.
(c) actual delivery. (d)symbolic delivery.

Ans. :- B

10. Which one of the following is/are document of title to goods?

(a) railway receipt. (b)wharfinger's certificate.

(c) warehouse keeper's certificate. (d) all of the above

Ans. :- D
11. Which one of the following is not true?
(a)document showing title is different from document of title.
(b)bill of lading is a document of title to goods.
(c)specific goods can be identified and agreed upon at the time of the Contract of
Sale.
d) none of the above.

Ans. :- D

12. Mercantile Agent is having an authority to

(a) sell or consign goods. (b)raise money on the security of goods.
c) sell or buy goods. (d)any of the above.

Ans. :- D

13. Contract of Sale is

(a) executory Contract. (b)executed Contract.
(c) both of the above. (d)none of the above.

Ans. :- C

14. In which form of the contract, the property in the goods passes to the buyer immediately:
(a) agreement to sell. (b)hire purchase.
(c) sale (d)instalment to sell.

Ans. :- C

15. In case of hire purchase the hirer can pass title to a bona fide purchaser.
(a) true. (b) false.
Ans. :- B

16. In a contract of sale, the agreement may be expressed or implied from the conduct of the parties.
(a) true. (b) false.

Ans. :- A

17. In a contract of sale, subject matter of contract must always be money.

(a) true. (b) false.

Ans. :- B

18. If a seller handed over the keys of a warehouse containing the goods to the buyer results in
(a) constructive delivery (b)actual delivery
(c) symbolic delivery (d)none of the above

Ans. :- C

19. If A agrees to deliver 100 kg of sugar to B in exchange of 15 mts of cloth, then it is

(a) Contract of sale. (b)Agreement to sell.
(c) Sale on Approval. (d) Barter.

Ans. :- D

20. In a hire-purchase agreement, the hirer

(a) has an option to buy the goods. (b) must buy the goods.
(c) must return the goods. (d) is not given the possession of goods.

Ans. :- A
21. A agrees to deliver his old car valued at Z 80,000 to B, a car dealer, in exchange for a new car, and
agrees to pay the difference in cash it is
(a) Contract of sale. (b) Agreement to sell.
(c) Exchange. (d) Barter.

Ans. :- A

22. Legally, a contract of sale includes

(a) sale. (b) agreement to Sell.
(c) barter. (d) both (a) and (b)

Ans. :- D

23. The Sale of Goods Act, 1930 came into force on

(a) 15th March, 1930. (b) 1st July, 1930.
(c) 30th July, 1930. (d)30th June, 1930.

Ans. :- B

24. The person who buys or agrees to buy goods is known as

(a) consumer. (b) buyer.
(c) both (a) and (b) (d)none of the above.

Ans. :- B

25. Voluntary transfer of possession by one person to another is popularly known as

(a) transfer. (b) possession.
 (c) delivery. (d)none of the above.

Ans. :- C

26. If X commissioned Y, an artist, to paint a portrait of A for 200 dollars & Y uses his own canvas & paint
then it is
(a) Contract of sale. (b)Contract of work & materials.
(c) Sale on approval. (d)Hire-Purchase agreement.

Ans. :- B

27. The property in the goods means the

(a) possession of goods. (b)custody of goods.
(c) ownership of goods. (d) both (a) and (b)

Ans. :- C

28. The goods are at the risk of a party who has the
(a) Ownership of goods. (b)Possession of goods.
(c) Custody of goods. (d) both (b) and (c)

Ans. :- A

29. In case of sale of standing trees, the property passes to the buyer when trees are
(a) felled and ascertained. (b)not felled but earmarked.
(c) counted and ascertained. (d) both (b) and (c)

Ans. :- A

30. In case the delivery of goods is delayed due to the fault of party, the goods shall be at the risk of
defaulting party even though the ownership is with the other party.
 (a)True, if there is a provision to this effect.
(b)False, as it is against the general rule.
Ans. :- A

31. Which of the following modes of delivery of goods is considered effective for a valid contract of
sale?
(a) Actual delivery. (b)symbolic delivery.
(c) Constructive delivery. (d) all of these.

Ans. :- D
THE CONSUMER PROTECTION ACT, 2019

1. Unit State commission is established by

A) Central government
B) State government
C) Supreme government
D) All of the above
2. Establishment of state consumer dispute redressal commission is provided
in
A) Section 41 of the CPA 2019
B) Section 11 of the CPA 2019
C) Section 42 of the CPA 2019
D) Section 21 of the CPA 2019
3. The jurisdiction of a state commission is
A) Below 1 crore
B) Between 1 crore – 10 crore
C) Above 10 crore
 D) Between 20 laks – 1 crore
4. Appeal against state commission can be done
A) State Commission
B) High court
C) District Commission
D) National Commission
5. Any appeal against state commission must be done in national commission
within________ days.
A) 30
B) 45
C) 60
D) 90
6. The maximum age limit of a state commission
A) 65
B) 67
C) 35
D) 70
7. Who can be a president of state commission?
A) District court judge or equivalent
B) Supreme court judge or equivalent
C) High court judge or equivalent
D) All of the above
8. What is the minimum age for being a member in state commission
A) 35 years
 B) 40 years
C) 55 years
D) 67 years
9. How many members should be there other than president in state
commission
A) 4
B) 6
C) 8
D) 2
10. Who has right to transfer case from one state commission to other?
A) National commission
B) State commission
C) Supreme court
D) Both (a) and (b)

11.A _________ is generally understood as a person who uses or consumes

goods or avails of any service.
A) Mediator
B) Consumer
C) Seller
D) Retailer
12.Goods that are falsely claimed to be genuine are known as :
 A) Spurious Goods
B) Finished Goods
C) Goods in Inventory
D) Raw Materials
13.What is Defect, according to Consumer Protection Act 2019.
A) Any fault, imperfection, shortcoming or inadequacy in quality,
nature and manner of performance in relation to goods or a
product.
B) Any harm illegally caused to any person in body, mind or property.
C) Both
D) None
14.Which is not a Right of a Consumer as per Consumer Protection Act 2019
A) Right to Safety
B) Right to be informed
C) Right to Choose
D) Right to Stole
15.Which is a Consumer Right?
A) Right to Consumer Education
B) Right to seek redressal
C) All of these
D) Right to be heard

16.Which is the Consumer Responsibility?

 A) Be aware about various goods and services available in the market so
that an intelligent and wise choice can be made.
B) Assert yourself to ensure that you get a fair deal.
C) Respect the environment. Avoid waste, littering and contributing to
pollution.
D) All of these
17.What is the Full Form of CCPA?
A) Central Consumer Privacy Authority
B) Central Consumer Protection Authority
C) California Consumer Privacy Act
D) None
18.Which is the Object of CCPA?
A) violation of Rights of Consumers
B) unfair Trade Practices
C) to promote, protect and enforce the Rights of Consumers
D) All of these
19.Section 18 of Consumer Protection Act 2019 is about
A) Functions of CCPA
B) Powers of CCPA
C) investigation of CCPA
D) Objects of CCPA
20.Functions of CCPA:
Statement 1: To protect, promote and enforce rights of consumers as a
class including prevention of violation of such rights.
Statement 2: To prevent Unfair Trade Practices.
 A) Statement 1 is true and Statement 2 is false
B) Statement 1 is false and Statement 2 is true
C) Both 1 & 2 are true
D) Both 1 & 2 are false
21.Which is not the Redressal Agencies under Consumer Protection Act 2019?
A) District Commission
B) State Commission
C) National Commission
D) International Commission
22.Monetary Damage Range of State Commission is
A) Below 1 crore
B) 1 crore to 100 crore
C) More than 10 crore
D) 1 crore to 10 crore
23.SCDRC stands for
A) State Customer Disputes Redressal Commission
B) Secure Civil Disputes Redressal Centre
C) State Consumer Disputes Redressal Commission
D) None
24.How many District Commissions are there in India?
A) 35
B) 629
C) 22
D) 34
25.Section 53 to Section 73 is explaining
A) District Forum
B) State Commission
C) National Commission
D) None

26.Who is Responsible for Failed Transactions and No Cash in ATMs

A) RBI
B) Income Tax Department
C) State Commission
D) Banks
27.Value of Goods & Services paid as consideration in District Commission in
case of above Rs. 50 lakh upto Rs. 1 crore is
A) Nil
B) 1000
C) 2000
D) 300
28.Value of Goods & Services paid as consideration in National Commission
A) 4000
B) 5000
C) 6000
D) 7500
 29.Consideration paid in State Commission:
Statement 1: Above Rs. 1 crore and upto Rs. 2 crore is Rs. 2500
Statement 2: Above Rs. 8 crore and upto Rs. 10 crore is Rs. 6000
A) Statement 1 is false & Statement 2 is true
B) Statement 1 is true & Statement 2 is false
C) Both are false
D) Both are true

30.________ means one or more consumers, or any voluntary consumer

association, central or state government or the central authority or a legal
heir or legal representative or a parent or legal representative in case of a
minor.
A) Consumer
B) Complainant
C) Seller
Judge