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Odisha Judicial Service Examination, 2021

Law of Contract

1. Which of the following case is related to Continuing Offer?


(a) Week vs. Tybald
(b) Bengal Coal Co. Ltd. vs. Homee Wadia and Co.
(c) Williams vs. Carwardine
(d) Upton Rural District Council vs. Powell

2. A contract which ceases to be enforceable by law -


(a) becomes valid
(b) becomes void when it ceases to been enforceable.
(c) becomes voidable
(d) becomes void

3. Which of the following is true?


(a) In case of illegal agreement, collateral transaction depending thereon, are also
void.
(b) All illegal agreements are void but all void agreements are not illegal.
(c) Both (a) and (b)
(d) Neither (a) nor (b)

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

6. Section 29 of the Indian Contract Act provides for -


(a) Agreements, the meaning of which is not certain are void
(b) Agreements, the meaning of which is not certain, or capable of being made certain,
are void
(c) Agreements, the meaning of which are uncertain, are voidable
(d) Agreements the meaning of which is not capable of being made certain, are void

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

8. The doctrine of Quantum Meruit is applicable to which of the following?


(a) Where a person has done work for another in pursuance of a contract which has
been discharged by the latter’s breach
(b) Where a person has done work for another on the assumption that there is a valid
contract, but in fact, the contract is a nullity
(c) Where a person lawfully does anything for another person, or delivers anything to
him, not intending to do so gratuitously, and such other person enjoys the benefit
thereof.
(d) All of the above

9. In bailment, delivery of goods shall be made –


(a) for some purpose
(b) not necessarily under a contract
(c) under a contract that when the purpose is accomplished the goods shall be returned
to the bailor
(d) Both (a) and (c)

10. The minimum standard of care as expected of a bailee –


(a) can be increased but not decreased
(b) can be decreased
(c) can be increased or decreased
(d) can neither be increased nor decreased

11. The Right to redeem is –


(a) not a right available to the pawnee against the pawnor
(b) an absolute right to redeem the property upon tender of the amount advanced
(c) exercised at any subsequent time before the actual sale of the goods pledged
(d) all of the above

12. In a contract of guarantee, creditor’s forbearance to sue the principal debtor


(a) does not discharge the surety of it’s liability
(b) discharges the surety of it’s liability
(c) may discharge the surety of it’s liability
(d) None of the above

13. A continuing guarantee -


(a) extends to a series of transactions over a period of time
(b) is also determined by the death of the surety unless there is a contract to the
contrary
(c) Both (a) and (b)
(d) Neither (a) nor (b)
14. Which of the following is true?
(a) A becomes surety to C for B's conduct as manager in C's bank. Afterwards, B and
C contract, without A' s consent, that B' s salary shall be raised, and that he shall
become liable for one-fourth of the losses on overdrafts. B allows a customer to over-
draw, and the bank loses a sum of money. A is not discharged from his suretyship by
the variance made without his consent, and is liable to make good this loss.
(b) 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
misconducts himself. A is discharged by the change from future liability under his
guarantee, though the misconduct of B is in respect of a duty not affected by the later
Act.
(c) C agrees to appoint B as his clerk to sell goods at a yearly salary, upon A's
becoming
surety to C for B's duly accounting for moneys received by him as such clerk.
Afterwards,
without A's knowledge or consent, C and B agree that B should be paid by a
commission on the goods sold by him and not by a fixed salary. A is liable for
subsequent misconduct of B.
(d) All of the above

15. Communication of acceptance is complete as against the proposer:


(a) When it come to the knowledge of the proposer
(b) When it is put in the course of transmission to him so as to be out of power of the
acceptor
(c) When it reaches the proposer
(d) When the letter of acceptance is handed over by the acceptor, to his agent, for
posting

16. Novation of a contract means –

(a) The renewal of original contract


(b) Alteration of the contract
(c) Substitution of a new contract in place of original contract
(d) Cancellation of contract

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

20. Which one of the following combinations is correctly matched?


1. Responsibility of finder of goods - Sec. 71
2. Surety’s liability - Sec. 128
3. Sub-agent - Sec. 191
4. Bailee’s particular lien - Sec. 171
Select the correct answer using the codes given below:
(a) 1, 2 and 4
(b) 1, 2 and 3
(c) 2, 3 and 4
(d) 3, 4 and 1

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

26. Which of the following is true?


(a) Fraud is an unintentional representation made to another person
(b) Fraud does not exist when a material fact is made with reckless indifference as to
whether
it is true or false, with the intention of causing the other party to enter into a contract
relying
upon the same
(c) Both (a) and (b)
(d) Neither (a) nor (b)

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)

28. Which of the following is true?


(a) Under a contract, the parties must either perform, or offer to perform, their
respective
Promises
(b) The parties can dispense with the performance of their respective promises
(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

32. When two or more persons make a joint promise -


(a) the promisee may compel any one or more of such joint promisors to perform the
whole
promise
(b) each of two or more joint promisors may compel every other joint promisor to
contribute
equally with himself to the performance of the promise, unless a contrary intention
appears
from the contract
(c) Both (a) and (b)
(d) Neither (a) nor (b)

33. Which of the following is true?


(a)A contracting party is not obliged to disclose each and everything to the other
party.
(b)Famous Case related to "Mere silence is no fraud" is Keates v The Earl of Cadogan
(1851)
(c) Both (a) and (b)
(d) Neither (a) nor (b)
34. It is immaterial whether the Indian Penal Code -
(a) is not in force in the place where the coercion is employed
(b) is or is not in force in the place where the coercion is employed
(c) is in force in the place where the coercion is employed
(d) is in force in some other place other than where coercion is employed

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

36. The performance of any promise may be made in -


(a) a manner prescribed by the promisor
(b) a manner decided by both the parties mutually
(c) any manner, or at any time which the promisee prescribes or sanctions
(d) None of the above
37. A fraudulently informs B that A's estate is free from encumbrance. B thereupon
buys the estate. The estate is subject to a mortgage. In this case –
(a) B may avoid the contract
(b) B may either avoid the contract or may insist on it’s being carried out and the
mortgage-debt redeemed
(c) B may continue with the contract with A
(d) The contract is void and hence unenforceable
38. Section 28 of the Contract Act provides that -
(a) Every agreement which restricts a party absolutely from enforcing his rights under
or in respect of any contract, by the usual legal proceedings in the ordinary tribunals,
is void
(b) Every agreement which limits the time within which a party may enforce his rights
is void
(c) Both (a) and (b)
(d) Neither (a) nor (b)
39. Which of the following is true?
(a)Section 32 of the Indian Contract Act provides for Enforcement of Contracts
contingent on an event happening
(b)Section 34 of the Indian Contract Act provides for Enforcement of contract
contingent on
an event not happening
(c) Both (a) and (b)
(d) Neither (a) nor (b)
40. In which of the following cases, the object is unlawful under Section 23 of the
Contract Act?
(a) A promises, for a certain sum paid to him by B, to make goods to B the value of
his ship of it is wrecked on a certain voyage.
(b) A promises to maintain B's child, and B promises to pay A 1,000 rupees yearly for
the
purpose.
(c) A, B and C enter into an agreement for the division among them of gains acquired
or to be acquired, by them by fraud.
(d) A promises to obtain for B an employment in the public service and B promises to
pay 1,000 rupees to A.

41. When a party to a contract promises to do a certain thing at or before a specified


time, or certain things at or before a specified time and fails to do such thing at or
before a specified time, the contract or so much of it as has not been performed,
becomes -
(a) voidable at the option of the promisee, if the intention of the parties was that time
should be of essence of the contract
(b) void
(c) voidable at the option of the promisor
(d) contingent

42. Contingent agreements to do or not to do anything, if an impossible event


happens, are –
(a) voidable
(b) void, whether the impossibility of the event is known or not to the parties to
agreement at the time when it is made.
(c) void, when the impossibility of the event is known to the parties to agreement at
the time when it is made
(d) void ab intio

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

44. When the contract itself provides for extension of time -


(a) it is to be termed to be the essence of the contract
(b) the default, in such a case does not make the contract voidable
(c) Both (a) and (b)
(d) Neither (a) nor (b)
45. Promises bind the representative of the promisor in case of the death of such
promisors –

(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)

50. Which of the following cannot be done by the promisee?


(a) Every promisee may dispense with or remit, wholly or in part, the performance of
the
promise made to him
(b) Every promisee may extend the time for such performance
(c) Every promisee may not accept any satisfaction which he thinks fit in place of
performance of the contract
(d) None of the above

51. Which of the following is true?


(a) The mode of communicating or revoking rescission of voidable contract is
provided in section 66 of the Indian Contract Act.
(b)The rescission of a voidable contract may be communicated or revoked in the same
manner, and subject to some rules, as apply to the communication or revocation of the
proposal.
(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

54.Which of the following is an exception to Section 74 of the Indian Contract Act?


(a) A stipulation for increased interest from the date of default may be a stipulation by
way of penalty.
(b) When any person enters into any bail bond, recognisance or other instrument of
the same
nature or, under the provisions of any law, or under the orders of the Central
Government or of any State Government, gives any bond for the performance of any
public duty or act in which the public are interested, he shall be liable, upon breach of
the condition of any such instrument, to pay the whole sum mentioned therein.
(c) A person who enters into a contract with the government does not necessarily
thereby
undertake any public duty, or promise to do an act in which the public are interested.
(d) All of the above

55. Which of the following is true?


(a) Agency coupled with interest is irrevocable
(b) In case of agency coupled with interest, the interest of agent need not exist at the
time of
creation of agency
(c) The doctrine is not restricted only to those cases where authority to agent is given
for
purpose of security
(d) All of the above

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)

57. Which one of the following statements is correct?


(a) an agreement is void unless supported by adequate consideration.
(b) under Indian Contract Act, 1872, consideration, need not move at the desire of
the promisor.
(c) the Indian Contract Act, does not recognize past consideration.
(d) an agreement made without consideration, is a contract, if it is a promise to
compensate a
person who has already voluntarily done something for the promisor.

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

61.Which of the following is true with respect to contracts by minors?


(a) Minor can be a beneficiary under a contract
(b) Minor can plead his minority
(c) Minor is not personally liable for the necessaries supplied to him
(d) All of the above
62. ‘A’ agrees to buy property from ‘B’ although ‘A’ knows ‘B’ had agreed to sell the
property to ‘C’. In this case -
(a) The intention of ‘A’ here is to cause injury to the property to C and hence the
agreement is made with an unlawful object as per section 23 of the Contract Act
(b) The agreement is void
(c) The agreement is valid and enforceable
(d) Both (a) and (b)

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

(d) All of the above

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)

67. Acceptance must be __________ and __________.


(a).unqualified and absolute
(b) absolute and unqualified
(c)conditional and expressed in some usual manner
(d) unqualified and conditional

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

70. "Undue influence" is defined -


(a) as where the relations subsisting between the parties are such that one of the
parties is in a position to dominate the will of the other and uses that position to obtain
an unfair advantage over the other.
(b) in section 17 of the Indian Contract Act
(c) Both (a) and (b)
(d) Neither (a) nor (b)

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

72. "Misrepresentation" means and includes -


(a) the positive assertion, in a manner not warranted by the information of the person
making it, of that which is not true, though he believes it to be true;
(b) any breach of duty which, without an intent to deceive, gains an advantage to the
person
committing it, or anyone claiming under him; by misleading another to his prejudice,
or to the prejudice of any one claiming under him;
(c) causing, however innocently, a party to an agreement, to make a mistake as to the
substance of the thing which is subject of the agreement.
(d) All of the above
73. Which section provides for voidability of agreements without free consent?
(a) Section 22
(a) Section 19
(a)Section 21
(a)Section 17
74. Which of the following is true?
(a) A, intending to deceive B, falsely represents that five hundred maunds of indigo
are made
annually at A's factory, and thereby induces B to buy the factory. The contract is
voidable at the option of B.
(b) A, by a misrepresentation, leads B erroneously to believe that five hundred
maunds
of indigo are made annually at A's factory. B examines the accounts of the factory,
which show that only four hundred maunds of indigo have been made. After this, B
buys the factory. The contract is voidable on account of A's misrepresentation.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
75. Section 19A provides for power to set aside contract induced by __________.
(a)Misrepresentation
(b) Fraud
(c)Undue Influence
(d) Coercion
76. A lends Rs 500 to B. He later tells B that he need not repay the amount, the
contract is discharged by __________.
A. breach.
B. waiver.
C. novation.
D. performance.
77. Which of the following may be a stipulation by way of penalty under the Indian
Contract Act, 1872?

(a) A stipulation for increased interest from the date of default


(b) A stipulation for decreased interest from the date of default
(c) A stipulation for increased interest from the date of contract
(d) A stipulation for increased interest from the date of suit

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?

A. A wagering agreement is void and unenforceable


B. It is not forbidden by law
C. The object of a collateral agreement of a wagering transaction is lawful
D. All of the above
85. The measure of damages in case of breach of a contract is the difference between
the
_______________.
A. contract price and the market price at the date of breach.
B. contract price when the maximum market price during the terms of the contract.
C. contract and the price at which the plaintiff might have sold the goods.
D. contract price and the price fixed by the court.
86. The case of Hadley v. Baxendale, deals with __________.
A. Anticipatory breach of contract
B. Quantum of damages
C. Supervening impossibility
D. Quasi-contract
87. Anticipatory breach of a contract takes place _____________.
A. During the performance of the contract
B. At the time when the performance is due
C. Before the performance is due
D. At the time when the contract is entered into
88. In case of wrongful dishonor of a cheque by a banker having sufficient fund to the
credit of the customer, the court may award
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
D. Contemptuous damages
89. Ordinary damages are damages which _____________.
A. arise in the usual course of things from the breach
B. which are in the contemplation of the parties at the time when the contract is made
C. are agreed in advance
D. are given by way of punishment for breach of contract
90. The contract of indemnity is a _____________
A. Contingent contract
B. Wagering contract
C. Quasi-contract
D. Void agreement
91. S and P go into a shop. S says to the shopkeeper, C “let P have the goods and if he
does not pay you, I will”. This is a __________
A. Contract of guarantee
B. Contract of indemnity
C. Wagering contract
D. Quasi-contract
92. A bailor is a _________
A. a right of a particular lien over the goods bailed
B. a right of generation
C. a right of both particular and general lien
D. no lien at all over the goods bailed
93. The position of a finder of lost goods is that of a ______________
A. Bailor
B. Bailee
C. Surety
D. Principal debtors
94. The gratuitous bailor is liable to the bailor for the defects in the goods
bailed_______________
A. Even if he is not aware of them
B. Only if he is aware of them
C. In all cases of loss
D. In certain case of loss
95. If the bailee, without the consent of the bailor, mixes the goods of the bailor with
his own goods and the goods can be separated or divided, the property in the goods
remains in the parties respectively; but the _______________ is bound to be bear the
expense of separation or division, and any damage arising from the mixture.
A. the bailee
B. the bailor
C. both of them in proportion to the value of their goods
D. Third party
96. A bailee fails to return the goods according to the bailors direction. He takes
reasonable care of the goods but still the goods are lost. The loss will fall
on____________________
A. the bailee
B. the bailer
C. on both of them
D. neither of them
97. A who purchases certain goods from B by a misrepresentation pledges them with
C. the pledge is _____________________
A. valid
B. void
C. voidable
D. invalid
98. Contract which is inferred from the act of the parties is called___________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
99. Contract is one which is made by words spoken or words is called____________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
100. A person to whom money has been paid, or anything is delivered, must repay or
return it if is paid to him:
(a) by mistake
(b) under coercion
(c) by means of fraud
(d) Both (a) and (b)
Answer Key
1. (b)
2. (b) Section 2(i) of Indian Contract Act
3. (c)
4. (d) Section 25(2) of the Indian Contract Act
5. (d)
6. (b) Section 29 of the Indian Contract Act
7. (a) Section 38 of the Indian Contract Act
8. (d) Cravan Ellis vs. Cannon
9. (d) Section 148 of the Indian Contract Act
10. (a) Sections 151 and 152 of the Indian Contract Act
11. (d) Section 177 of the Indian Contract Act
12. (a) Section 137 of the Indian Contract Act
13. (c) Sections 129 and 131 of the Indian Contract Act
14. (b) Illustrations to Section 133 of the Indian Contract Act
15. (b) Section 4 of the Indian Contract Act
16. (c) Section 62 of the Indian Contract Act
17. (d) Section 2(a) of the Indian Contract Act
18. (a) Illustration (a) to Section 43 of the Indian Contract Act
19. (a) Sections 183,185 and 186 of the Indian Contract Act
20. (b) Section 170 of the Indian Contract Act – Bailee’s particular lien
21. (a)Section 70 of the Indian Contract Act
22. (a) Section 22 of the Indian Contract Act
23. (b)
24. (c) Cases - Andhra Sugars Ltd. vs. State of A.P., Workmen of Appin Estate vs.
Industrial Tribunal
25. (a) Illustration (d) to Section 63 of the Indian Contract Act
26. (b) Section 17 of the Indian Contract Act
27. (c) Explanation (2) to Section 25 of the Indian Contract Act
28. (a) Section 37 of the Indian Contract Act
29. (d) Section 39 of the Indian Contract Act
30. (a) Section 41 of the Indian Contract Act
31. (d) Section 42 of the Indian Contract Act
32. (c) Section 43 of the Indian Contract Act
33.(c)
34. (b) Explanation to Section 15 of the Indian Contract Act
35. (a) Section 48 of the Indian Contract Act
36. (c) Section 50 of the Indian Contract Act
37. (b) Illustration (c) to Section 19 of the Indian Contract Act
38. (c) Section 28(a) of the Indian Contract Act
39. (a) Section 33 of the Indian Contract Act
40. (c) Section 23 of the Indian Contract Act
41. (a) Section 55 of the Indian Contract Act
42.(b) Section 36 of the Indian Contract Act
43.(b) Section 55 of the Indian Contract Act
44. (a) Section 55 of the Indian Contract Act; Case law – Pulgaon Cotton Mills vs.
Gulabai
45. (b) Section 37 of the Indian Contract Act
46. (b) Illustration (a) to Section 54 of the Indian Contract Act
47. (a) Section 59 of the Indian Contract Act
48. (a) Section 60 of the Indian Contract Act
49. (c) Section 61 of the Indian Contract Act
50. (c) Section 63 of the Indian Contract Act
51. (c) Section 66 of the Indian Contract Act
52. (a) Section 67 of the Indian Contract Act
53. (c) Section 72 of the Indian Contract Act
54. (b) Section 74 of the Indian Contract Act
55. (a) Section 202 of the Indian Contract Act
56. (c) The circumstances under which an agent is personally liable to his principal
acts are as follows:-
1. When he agrees with the concerned parties (Sec. 230).
2. An agent who is not having any authority to act as an agent or who has exceeded
the authority and the same has not been ratified by the principal, is personally liable
for any loss bearded by a third party (Sec. 235).
3. A person with whom a contract has been entered into in the character of agent is not
entitled to require the performance of it, if in reality he was acting not as agent, but as
principal (Sec. 236).
4. When he is acting for a foreign principal.
5. Where the agency is coupled with interest that is the agent has interest in the subject
matter of the agency.
6. When the agent signs a negotiable instrument in his own name without making it
clear that he is signing as an agent.
7. Where trade, usage or customs holds him liable in certain kinds of business.
8. Where the agent acts for a principal who cannot be sued an account of his being a
foreign sovereign Ambassador Etc.
9. Where the agents acts for an undisclosed principal.
57. (d) Section 25(2) of the Indian Contract Act
58. (d) Sections 15 and 19 of the Indian Contract Act
59.(d)
60. (b)
61. (d)
62. (d)
63. (a)
64. (b) Section 27 of the Indian Contract Act ; Case law- Charlseworth vs. Mac
Donald
65. (d) Section 125 of the Indian Contract Act
66. (c) Illustration to Section 5 of the Indian Contract Act
67. (b) Section 7(1) of the Indian Contract Act
68. (c) Section 8 of the Indian Contract Act
69. (d) Section 12 of the Indian Contract Act
70. (a) Section 16 of the Indian Contract Act
71. (a) Illustration (d) to Section 16 of the Indian Contract Act
72. (d) Section 18 of the Indian Contract Act
73. (a) Section 19 of the Indian Contract Act
74. (b) Illustration (a), (b) to Section 19 of the Indian Contract Act
75. (c)
76 b
77. a Section 74
78. a Section 41
79. c
80. a
81. a Section 40
82. (b) Section 64
82. a
83. c
84. d
85. a Illustration e to section 73
86. b
87. c
88. c
89. a Section 73
90. a
91 a
92. a Section 170
93. a
94. b Section 150
95 a Section 156
96 a Section 151
97 b
98 c
99 b
100. d Section 72

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