Professional Documents
Culture Documents
Law of Contract
4. Which of the following are the requirements for application of section 25(2)?
(a) The promise must be in writing and signed by the debtor or his authorised agent
(b) A mere acknowledgment of debt is sufficient
(c) The promise must be given by the person to be charged therewith and not by any
third party.
(d) Both (a) and (c)
5. A wagering agreement -
(a) is void and unenforceable
(b) is not forbidden by law
(c) the object of a collateral agreement of a wagering transaction is not unlawful
(d) All of the above
7. An offer to one of several joint promises has the same legal consequences–
(a) as an offer to all of them
(b) as an offer to only one of them
(c) as an offer to none of them
(d) None of the above
17. A proposal as defined under Section 2(a) of the Indian Contract Act, 1872, is:
(a) Communication from one person to another
(b) Suggestion by one person to another
(c) Willingness to do something
(d) Willingness to do or abstain from doing an act in order to obtain the assent of other
thereto
18. A, B and C jointly promise to pay ‘D’ a sum of Rs. 3,000. A and B are
untraceable. What is the liability of C?
(a) ‘C’ is liable to pay ‘D’ in full
(b) ‘C’ is liable to pay ‘D’ in part
(c) Liability of ‘C’ does not arise
(d) None of these
19 . Which statement is true regarding “agency” under the Indian law of contract?
(a) Principal should be competent to contract
(b) The authority of agent may be expressed and not implied
(c) Consideration is necessary to create an agency
(d) Any person can become an agent
21. The Plaintiff on the oral request of an officer of the State of Bihar made certain
constructions which were voluntarily enjoyed by the State. The State, however,
refused payment on the ground that there was no valid contract in accordance with
law. Which of the following is true?
(a) The plaintiff is entitled to nominal damages
(b) The plaintiff is not entitled to payment as the contract was made orally and not in
accordance with law
(c) The Plaintiff is entitled to exemplary damages
(d) None of the above
22. A contract is not voidable merely because it was caused by one of the parties to it
being under a mistake as to -
(a) a matter of fact
(b) a matter of law
(c) both a matter of fact and law
(d) neither a matter of fact nor a matter of law
23. An invitation by the Company to the public to subscribe for its shares is-
(a) an offer
(b) an invitation to offer
(c) a promise
(d) None of the above
24. Which of the following would not amount to coercion under the Indian Contract
Act, 1872?
(a) Compulsion of law
(b) To threaten a criminal prosecution
(c) Both (a) and (b)
(d) Neither (a) nor (b)
25. A owes B, under a contract, a sum of money the amount of which has not been
ascertained. A without ascertaining the amount, gives to B, and B, in satisfaction
thereof, accepts, the sum of Rs. 2,000. Which of the following is true?
(a) This is a valid discharge of the whole debt
(b) This is not a valid discharge of the debt
(c) This is a partial discharge of the debt
(d) None of the above
27. Which of the following is true with respect to an agreement made with inadequate
consideration?
(a) An agreement to which the consent of the promisor is freely given is not void
merely
because the consideration is inadequate;
(b) The inadequacy of the consideration may be taken into account by the Court in
determining the question whether the consent of the promisor was freely given.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
29. When a party to a contract has refused to perform, or disabled himself from
performing,
his promise in its entirety –
(a) the promisee may put an end to the contract
(b) the promise need not put an end to the contract if he has signified, by words or
conduct,
his acquiescence in its continuance
(c) the promise is not entitled to put an end to the contract
(d) Both (a) and (b)
30. When a promisee accepts performance of the promise from a third person –
(a) he cannot afterwards enforce it against the promisor
(b) he can afterwards enforce it against the promisor
(c) he may afterwards enforce it against the promisor
(d) None of the above
31. Who among the following are empowered to fulfil the promise in case of a joint
promise by two or more persons?
(a) All such persons during their joint lives
(b) After the death of any of them, his representative jointly with the survivor or
survivors
(c) After the death of the last survivor the representatives of all jointly, must fulfil the
promise
(d) All of the above
35. When a promise is to be performed on a certain day, and the promisor has not
undertaken to perform it without application by the promisee, it is the duty -
(a) of the promisee to apply for the performance at a proper place within the usual
hours of business
(b) of the promisor to apply for the performance at a proper place within the usual
hours of business
(c) of either the promisor or the promisee to apply for the performance at a proper
place
within the usual hours of business
(d) None of the above
43. If, in case of a contract voidable on account of the promisor’s failure to perform
his promise at the time agreed, the promisee accepts performance of such promise at
any time other than agreed, the promisee -
(a) can claim compensation of any loss occasioned by the non-performance of the
promise at the time agreed
(b) cannot claim compensation of any loss occasioned by the non-performance of the
promise at the time agreed, unless, at the time of acceptance, he give notice to the
promisor of his intention to do so.
(c) cannot claim compensation of any loss occasioned by the non-performance of the
promise at the time agreed
(d) None of the above
(a)Only after performance of the contract, unless a contrary intention appears from the
contract
(b) before performance, unless a contrary intention appears from the contract
(c) before performance of the contract
(d) after performance of the contract
46. A hires B's ship to take in and convey, from Calcutta to 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. In this case -
(a) A can claim the performance of B's promise
(b)A cannot claim the performance of B's promise, and must take compensation to B
for the loss which B sustains by the non performance of the contract as per Section 54
(c) A cannot claim the performance of B's promise, and must take compensation to B
for the loss which B sustains by the non performance of the contract as per Section 55
(d) A can claim the performance of B's promise as per Section 51
47.Where a debtor, owing several distinct debts to one person, makes a payment to
him, either with express intimation, or under circumstances implying, that the
payment is to be applied to the discharge of some particular debt, the payment if
accepted -
(a) must be applied accordingly
(b) must be applied in the manner specified under the contract
(c) must be applied in the manner specified by the creditor
(d) None of the above
48.Where the debtor has omitted to intimate, and there are no other circumstances
indicating to which debt the payment is to be applied -
(a) the creditor may apply it at his discretion to any lawful debt actually due and
payable to
him from the debtor, whether its recovery is or is not barred by the law in force for the
time
being as to the limitations of suits.
(b) the creditor may apply it in accordance with the usage of trade
(c) the creditor may apply it in accordance with the contract
(d) the creditor may apply it in the manner as agreed by both the parties
49. In a case where neither party makes any appropriation, the payment shall be
applied in discharge of the debts -
(a) in order of time, whether they are or are not barred by the law in force for the time
being
as to the limitation of suits
(b) if the debts are of equal standing, the payment shall be applied in discharge of each
proportionably
(c) Both (a) and (b)
(d) Neither (a) nor (b)
52. If any promisor neglects or refuses to afford the promisee reasonable facilities for
the
performance of his promise, the promisor is -
(a) excused by such neglect or refusal as to non-performance caused thereby.
(b) not excused by such neglect or refusal as to non-performance caused thereby.
(c) entitled to seek compensation for such neglect or refusal as to non-performance
(d) None of the above
53. A person to whom money has been paid, or anything delivered, by mistake or
under coercion, must repay or return it. This is provided in –
(a) Section 55
(b) Section 71
(c) Section 72
(d) Section 54
56. In which of the following cases, the agent becomes personally liable?
(a) When acting for a foreign principal
(b) When acting for an undisclosed principal
(c) Both (a) and (b)
(d) Neither (a) nor (b)
58. X says to Y “I shall not return the documents of title relating to your wife’s
property, unless you agree to sell your house to me for Rs. 5000. ‘Y’ says, “All right, I
shall sell my house to you for Rs. 5000; do not detain my wife’s documents of title”.
In this case –
(a) X has employed coercion and hence cannot enforce the contract
(b) X has employed undue influence and hence cannot enforce the contract
(c) The contract can be enforced by Y if it so benefits him.
(d) Both (a) and (c)
59. A enquires from ‘B’, “Will you purchase my car for Rs. 2 lakhs?” ‘B’ replies “I
shall purchase your car for Rs. 2 lakhs subject to availability of valid Registration
Certificate/Book for the car. In this case –
(a) the acceptance by B is unconditional
(b) the acceptance by B is conditional
(c) the contract between A and B is valid
(d) Both (a) and (c)
60. M offered to sell his land to N for Rs. 280. N replied purporting to accept the offer
but
enclosed a cheque for Rs. 80 only. He promised to pay the balance of Rs. 200 by
monthly
instalments of Rs. 50 each. In this case -
(a) N cannot enforce his acceptance because it was not an unqualified one
(b) N can enforce his acceptance as it a qualified one
(c) N may enforce his acceptance
(d) None of the above
63. ‘A’ agrees to print a book of ‘B’ which has been clearly published by ‘W’. This
agreement is –
(a) void
(b) valid
(c) voidable
(d) None of the above
64. ‘B’ is a doctor and he employs ‘A’ a junior Doctor as his assistant. A agrees not to
practice during the period of his employment with ‘B’ as a doctor independently.
(a) Such an agreement will be invalid
(b) Such an agreement will not be in restraint of trade under section 27 of the Contract
Act
and hence valid
(c) Such an agreement will be voidable
(d) None of the above
65. In a contract of indemnity, the promise is entitled to recover from the promisor-
(a) all damages which he may be compelled to pay in any suit in respect of any matter
to which the promise to indemnify applies
(b) all costs which he may be compelled to pay in any such suit
(c) all sums which he may have paid under the terms of any compromise of any such
suit
66. A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal
by a letter sent by post. In this case -
(a) A may revoke his proposal at any time before at the moment when B posts his
letter of acceptance, but not afterwards.
(b) B may revoke his acceptance to any time before or at the moment when B posts
his letter of acceptance, but not afterwards.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
68. Performance of the conditions of proposal, for the acceptance of any consideration
for a reciprocal promise which may be offered with a proposal, is ________ of the
proposal
(a).revocation
(b)refusal
(c)acceptance
(d) consideration
69. What is a sound mind for the purposes of contracting?
(a).A person is said to be of sound mind for the propose of making a contract, if, at the
time when he makes it, he is capable of understanding it and of forming a rational
judgement as to its effect upon his interest.
(b) A person who is usually of unsound mind, but occasionally of sound mind, may
make a contract when he is of sound mind.
(c)A person who is usually of sound mind, but occasionally of unsound mind, may not
make a contract when he is of unsound mind.
(d) All of the above
71. A applies to a banker for a loan at a time when there is stringency in the money
market, the banker declines to make the loan except at an unusually high rate of
interest. A accepts the loan on these terms.
(a) This is a transaction in the ordinary course of business, and the contract is not
induced by undue influence.
(b) The contract is induced by undue influence under section 16 of the Indian Contract
Act
(c) The contract is induced by undue influence under section 17 of the Indian Contract
Act
(d) The contract is not induced by undue influence under section 18 of the Indian
Contract Act
78. Where a contact could not be performed because of the default by a third party on
whose work the promisor relied, it ______________.
A. it is not discharged.
B. is discharged.
C. becomes void.
D. becomes voidable.
79. A creditor agrees with his debtors and a third party to accept that the third party as
debtor the contract is discharged by ________________.
A. performance.
B. alteration.
C. waiver.
D. rescission.
80. The case of Satyabrata Ghose V. Mugneeram Bangur and co., deals with
__________.
A. agreement opposed to public policy.
B. supervening impossibility.
C. contract of guarantee.
D. agencies.
81. A undertakes to paint a picture of B. he die before he paints the picture. The
contract ________.
A. is discharged by death.
B. becomes voidable at the options of b.
C. becomes of voidable at the options of legal representatives of a.
D. will have to performed by legal representatives of A.
82. The court may grant rescission where the contract is __________.
A. voidable at the option of the plaintiff.
B. void.
C. unenforceable.
D. illegal.
83. The foundation of modern law damages was laid down in ___________________.
A. Tinn v. Hoffman.
B. Taylor v. Caldwell.
C. Hadley v. Baxendale.
D. Addis v. Gramophone co.
84. Which of the following is true with respect to a wagering agreement?