GK questions and answers on the law of contract especially compiled for law students!
1. B, a broker at Calcutta, by the orders of A, a merchant there, contracts with C for the purchase of 10 casks of oil for A. Afterwards A refuses to receive the oil, and C sues B. B informs A, who repudiates the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses.
A. A is not liable to B for such damages, costs and expenses
B. A is partially liable to B for such damages, costs and expenses
C. A is liable to B for such damages, costs and expenses
D. None of these
Ans. (C)
2. B, a broker, in whose business, it is not the custom to sell on credit, sells goods of A on credit to C, whose credit at the time was very high. C, before payment becomes insolvent.
A. B need not make good the loss to A
B. B can partially make good the loss to A
C. B must make good the loss to A
D. None of these
Ans. (C)
3. B, at Singapore; under instructions from A of Calcutta, contracts with C to deliver goods to him. A does not send the good to B, and C sues B for breach of contract. B informs A of the suit, and A authorizes him to defend the suit, B defends the suit, and is compelled to pay damages and costs, and incurs expenses.
A. A is not liable to B for such damages, costs and expenses
B. A is partially liable to B for such damages, costs and expenses
C. A is liable to B for such damages, costs and expenses
D. None of these
Ans. (C)
4. B, at the request of A, sells goods in the possession of A, but which A had no right to dispose of. B does not know this, and hands over the proceeds of the sale to A. afterwards C, the true owner of the goods, sues B and recovers the value of the goods and costs.
A. A is not liable to indemnify B for what he has been compelled to pay to C, and for B’s own expenses
B. A is liable to indemnify B for what he has been compelled to pay to C, and not for B’s own expenses
C. A is liable to indemnify B for what he has been compelled to pay to C, and for B’s own expenses
D. None of these
Ans. (C)
5. B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Through A’s ignorance B is enabled to buy the estate at an under-value.
A. The contract is not voidable at the option of A
B. The contract is voidable at the option of A
C. either (A) or (B)
D. None of these
Ans. (B)
6. B, the proprietor of a newspaper, publishes, at A’s request, a libel upon C in a paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of any action in respect thereof. B is sued by C and has to pay damages, and also incurs expenses.
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)
7. Bailee when not liable for loss, etc. of thing bailed is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 151
B. Section 156
C. Section 155
D. Section 152
Ans. (D)
8. Bailment by several joint owners is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 169
B. Section 159
C. Section 163
D. Section 165
Ans. (D)
9. Bailor entitled to increase or profit from goods bailed under which of the following in the Indian Contract Act, 1872?
A. Section 169
B. Section 159
C. Section 163
D. Section 160
Ans. (C)
10. Bailor’s responsibility to bailee is given under which of the following in the Indian Contract Act, 1872?
A. Section 169
B. Section 159
C. Section 164
D. Section 160
Ans. (C)
11. Before the amendment in 1899, undue influence is said to be employed in which of the following cases:
A. When a person in whom confidence is reposed by the another, or who holds a real or apparent authority over that other, makes use of such confidence or authority for the purpose of obtaining an advantage over that other which, but for such confidence or authority, he could not have obtained
B. When a person whose is enfeebled by old age, illness or mental or bodily distress, is so treated as to make him consent to that which, but for such treatment, he would not have consented, although such treatment may not amount to coercion
C. both (A) and (B)
D. None of these
Ans. (C)
12. Before the plaintiff can repudiate which of the following circumstances must concur?
A. a term held fundamental
B. refusal to perform that term by the defendant
C. either (A) or (B)
D. both (A) or (B)
Ans. (D)
13. 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 duty 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. A is liable for subsequent misconduct of B
B. A is not liable for subsequent misconduct of B
C. A is partly liable for subsequent misconduct of B
D. None of these
Ans. (B)
14. C contracts to lend B 5,000 rupees on the 1st March. A guarantees repayment. C pays the 5000 rupees to B on the 1st January.
A. A is not discharged from his liability, as the contract has been varied in as much as C might sue B for the money before 1st March
B. A is not discharged from his liability, as the contract has not been varied in as much as C might sue B for the money before 1st March
C. A is discharged from his liability, as the contract has been varied in as much as C might sue B for the money before 1st March
D. None of these
Ans. (C)
15. C lends B a sum of money, and A at the request of B, accepts a bill of exchange drawn by B upon A to secure the amount. C, the holder of the bill, demands payment of it from A, and, on A’s refusal to pay, sues him upon the bill. A, not having reasonable grounds for so doing, defends the suit, and has to pay the amount of the bill and costs.
A. He cannot recover from B the amount of the bill
B. He can only recover from B the sum paid for costs
C. He can recover from B the amount of the bill, but not the sum paid for costs, as there was no real ground for defending the action
D. None of these
Ans. (C)
16. C lends money to B on the security of a joint and several promissory notes made in C’s favour by B, and by A as surety for B, together with a bills of sale of B’s furniture, which gives power to C to sell the furniture, and apply the proceeds in discharge of the note. Subsequently, C sells the furniture, but owing to his misconduct and willful negligence, only a small price is realized.
A. A is partly discharged from liability on the note
B. A is discharged from liability on the note
C. A is not discharged from liability on the note
D. None of these
Ans. (B)
17. C, a creditor, whose advance to B is secured by a decree, receives also a guarantee for that advance from A.C afterwards takes B’s goods in execution under the decree, and then, without the knowledge of A, withdraws the execution.
B. A is not discharged
C. A is discharged
D. None of these
Ans. (C)
18. C, advanced to B, his tenant, 2,000 rupees on the guarantee of A. C has also a further security for the 2,000 rupees by a mortgage of B’s furniture. C, cancels the mortgage. B becomes insolvent and C sues A on his guarantee.
A. A is not discharged from liability to the amount of value of the furniture
B. A is partly discharged from liability to the amount of value of the furniture
C. A is discharged from liability to the amount of value of the furniture
D. None of these
Ans. (C)
19. C, the holder of an overdue bill of exchange draw by A as surety for B, and accepted by B, contract with M to give time to B.
A. A is partly discharged
B. A is discharged
C. A is not discharged
D. None of these
Ans. (C)
20. Capacity to contract means:
A. Power to bind oneself
B. Power to release oneself
C. either (A) or (B)
D. None of these
Ans. (A)
21. Chapter V of the Indian Contract Act, 1872 deals with:
A. the rights or liabilities accruing from the contract
B. the rights or liabilities accruing from relations resembling those created by the contract
C. both (A) and (B)
D. None of these
Ans. (B)
22. Chapter XI of the Contract Act on partnership was repealed by which of the following?
A. S. 73 of the Indian Partnership Act, 1932 (9 of 1932)
B. Schedule II of the Indian Partnership Act, 1932 (9 of 1932)
C. both (A) and (B)
D. None of these
Ans. (C)
23. Circumstances evincing insanity must be considered:
A. individually
B. together along with their cumulative effect
C. both (A) and (B)
D. None of these
Ans. (B)
24. Clause (1) of Section 6 of the Indian Contract Act, 1872 requires that the notice of revocation must be given:
A. by the proposer
B. to the offeree, being the other party i.e. the person to whom the proposal is made
C. both (A) and (B)
D. None of these
Ans. (C)
25. Coercion is the:
A. Committing, or threatening, any act forbidden by the Indian Penal Code (45 of 1860) with the intention of causing any person to enter into an agreement
B. Unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement
C. either (A) or (B)
D. None of these
Ans. (C)
26. Compensation to agent for injury caused by principal’s neglect is discussed under which of the following in the Indian Contract Act, 1872?
A. Section 220
B. Section 225
C. Section 226
D. Section 210
Ans. (B)
27. Consequences of notice given to agent are discussed under which of the following in the Indian Contract Act, 1872?
A. Section 220
B. Section 219
C. Section 226
D. Section 229
Ans. (D)
28. Consequences of rescission of voidable contract falls under which of the following in the Indian Contract Act, 1872?
A. Section 68
B. Section 64
C. Section 61
D. Section 59
Ans. (B)
29. Consideration not necessary under which of the following in the Indian Contract Act, 1872?
A. Section 180
B. Section 190
C. Section 187
D. Section 185
Ans. (D)
30. Contract by deed is a type of contract that is binding only if made by:
A. Conditional bills of sale
B. Mortgages of land
C. both (A) and (B)
D. None of these
Ans. (C)
31. Contract is:
A. An agreement between two or more parties creating obligations those are enforceable or otherwise recognizable at law (a binding contract)
B. The writing that sets forth such an agreement (a contract is valid if valid under the law of the residence of the party wishing to enforce the contract)
C. An unenforceable agreement between two or more parties to do or not to do a thing or set of things; a compact (when they finally agreed, they had a contract)
D. All of them
Ans. (D)
32. Contract note is:
A. A note issued by a broker to his constituent setting out the number of securities bought or sold in the market along with the rate and date of contract
B. A document issued by a broker setting out details of a recent transaction, such as buying or selling price, inclusion or exclusion of benefits (dividends),tax, fee and commission
C. both (A) and (B)
D. None of these
Ans. (C)
33. Contract of guarantee is:
A. A contract to perform the promise of a third person in case of his default
B. A contract to perform the discharge the liability of a third person in case of his default
C. either (A) or (B)
D. None of these
Ans. (C)
34. Contract of indemnity is:
A. A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself,
B. A contract by which one party promises to save the other from loss caused to him by the conduct of any other person
C. either (A) or (B)
D. None of these
Ans. (C)
35. Contract of novation is:
A. A new contract that is enforced alongside an existing one, usually retaining the same rights and liabilities, as when one partner in a partnership is replaced by another
B. A new contract that replaces an existing one, without retaining the same rights and liabilities, as when one partner in a partnership is replaced by another
C. A new contract that replaces an existing one, usually retaining the same rights and liabilities, as when one partner in a partnership is replaced by another
D. None of these
Ans. (C)
36. Contract of Sale:
A. includes an agreement to sell
B. includes an agreement to a sale
C. both (A) and (B)
D. None of these
Ans. (C)
37. Contracts may be of two classes, one where consideration is executed and the other where it is executor. This distinction was approved by the Supreme Court in which of the following cases?
A. Board of Revenue Madras v. Annamalai & Co. (Pvt.) Ltd.
B. Suraj Narain Dube v. Sukhu Aheer
C. Union of India v. Chaman lal Loona and Co.
D. Lala Babu Ram v. Ganga Devi
Ans. (C)
38. Contracts with commission agents can fall in which of the following classes?
A. Where the agent is promised a commission by his principal if he succeeds in introducing to his principal a person who makes an adequate offer
B. Where the property is put into the hands of the agent to dispose of for the owner and the agent accepts the employment, and it may be, expends money and time in endeavouring to carry it out
C. Where the agent is promised his commission only upon completion of the transaction which he had endeavoured to bring about between the offer or and his principal
D. All of them
Ans. (D)
39. Co-sureties need:
A. not be bound under the same contract
B. the right to contribution being independent of any agreement for that purpose
C. both (A) and (B)
D. None of these
Ans. (C)
40. Definitions of express and implied authority are dealt under which of the following in the Indian Contract Act, 1872?
A. Section 180
B. Section 187
C. Section 185
D. Section 181
Ans. (B)
41. Decisions under Section 178 of the Indian Contract Act may be divided into which of the following groups according to the character of the pawnor’s possession?
I. Pledge by a commission agent employed to sell goods or by a broker employed to sell goods on jangad terms i.e. on terms that he shall take offers to his principal, who accept or reject them
II. Pledge by seller who has been left in possession of the goods sold
III. Pledge by a person in bare custody of goods
IV. Pledge by a person who has agreed to buy goods under a hire purchase agreement and who has not made default in payment of the instalments
V. Pledge by a person entrusted with goods for a specific purpose
A. I, II
B. II, IV
C. Ill, V
D. All of them
Ans. (D)
42. Discharge of contract means termination of a contractual obligation by:
I. performance of contract
II. express agreement, which may involve either bilateral discharge or unilateral discharge
III. breach of contract
IV. frustration of contract
B. II, IV
C. II, III, IV
D. All of them
Ans. (D)
43. Disclosure or non-disclosure of principal is immaterial for application of:
A. S. 230(1) of the Indian Contract Act, 1872
B. S. 230(2) of the Indian Contract Act, 1872
C. S. 230(3) of the Indian Contract Act, 1872
D. None of these
Ans. (A)
44. Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 56
B. Section 50
C. Section 55
D. Section 54
Ans. (D)
45. Effect of failure to perform at fixed time, in contract in which time is essential is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 55
B. Section 50
C. Section 52
D. Section 59
Ans. (A)
46. Estoppel by contract is a party is bound by the terms of his own contract until set aside or annulled:
A. Fraud
B. Accident
C. Mistake
D. All of them
Ans. (D)
47. Except the equitable principles, in terms which of the following sections of the Indian Contract Act, 1872 cannot be applied to transactions where the bond is given to the Court in view of the fact that there is no creditor as required by S. 126 of the Indian Contract Act, 1872?
A. Section 133
B. Section 135
C. Section 139
D. All of them
Ans. (D)
48. Express Contract is one:
A. Where the intention of the parties and terms of the agreement are declared or expressed by the parties, in writing or orally, at the time it is entered into
B. Where some of its terms are dependent upon the happening of a future event
C. both (A) and (B)
D. None of these
Ans. (C)
49. Fiduciary contract:
A. An agreement by which a person delivers a thing to another on the condition that he will restore it to him
B. A contract based on mutual trust and confidence
C. both (A) and (B)
D. None of these
Ans. (C)
50. For Section 41 of the Indian Contract Act, 1872 to apply, the payment must have been made by a:
A. stranger in full
B. a known person in full
C. either (A) or (B)
D. None of these
Ans. (A)
51. Apportionment of relief or compensation obtained by such suits is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 176
B. Section 171
C. Section 181
D. Section 178
Ans: C
52. As per principle mentioned in the second paragraph of Section 56 of the Indian Contract Act, 1872, a promise is discharged if, for some cause which the promisor could not prevent, performance may become impossible by:
I. Change in law rendering a contract unlawful or impossible of performance
II. Destruction or non-existence of the specific subject matter assumed by the parties to exist or continue in existence
III. The non-existence of a state of things assumed as the foundation of the contract
IV. Such circumstances intervening which render the performance within the time in the way contemplated, impossible, although, performance of the contract according to its terms may be literally possible, the death or disability of the promisor, where the promise was to perform something in person
A. II, III
B. IV
C. I
D. All of them
Ans: D
53. B contracts to build a ship for C for a given sum, to be paid by instalments as the work reaches certain stages. A becomes surety to C for B’s due performance of the contract. C, without the knowledge of A, prepays to B the last two instalments.
A. A is partly discharged by this pre-payment
B. A is not discharged by this pre-payment
C. A is discharged by this pre-payment
D. None of these
Ans: C
54. B is indebted to C and A is surety for the debt. C demands payment from A, and on his refusal sues him for the amount. A defends the suit, having reasonable grounds for doing so, but he is compelled to pay the amount of the debt with costs.
A. He cannot recover from B the amount paid by him for costs
B. He can recover from B only the principal debt
C. He can recover from B the amount paid by him for costs, as well as the principal debt
D. None of these
Ans: C
55. B owes to C a debt guaranteed by A. The debt becomes payable. C does not due B for a year after the debt has become payable.
A. A is partly discharged from his surety ship
B. A is discharged from his surety ship
C. A is not discharged from his surety ship
D. None of these
Ans: C
56. B, a broker at Calcutta, by the orders of A, a merchant there, contracts with C for the purchase of 10 casks of oil for A. Afterwards A refuses to receive the oil, and C sues B. B informs A, who repudiates the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses.
A. A is not liable to B for such damages, costs and expenses
B. A is partially liable to B for such damages, costs and expenses
C. A is liable to B for such damages, costs and expenses
D. None of these
Ans: C
57. B, at Singapore; under instructions from A of Calcutta, contracts with C to deliver goods to him. A does not send the good to B, and C sues B for breach of contract. B informs A of the suit, and A authorizes him to defend the suit, B defends the suit, and is compelled to pay damages and costs, and incurs expenses.
A. A is not liable to B for such damages, costs and expenses
B. A is partially liable to B for such damages, costs and expenses
C. A is liable to B for such damages, costs and expenses
D. None of these
Ans: C
58. B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Through A’s ignorance B is enabled to buy the estate at an undervalue.
A. The contract is not voidable at the option of A
B. The contract is voidable at the option of A
C. Either (A) or (B)
D. None of these
Ans: B
59. Bailee when not liable for loss, etc. of thing bailed is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 151
B. Section 156
C. Section 155
D. Section 152
Ans: D
60. Bailor entitled to increase or profit from goods bailed under which of the following in the Indian Contract Act, 1872?
A. Section 169
B. Section 159
C. Section 163
D. Section 160
Ans: C
61. Before the amendment in 1899, undue influence is said to be employed in which of the following cases:
A. When a person in whom confidence is reposed by the another, or who holds a real or apparent authority over that other, makes use of such confidence or authority for the purpose of obtaining an advantage over that other which, but for such confidence or authority, he could not have obtained
B. When a person whose is enfeebled by old age, illness or mental or bodily distress, is so treated as to make him consent to that which, but for such treatment, he would not have consented, although such treatment may not amount to coercion
C. Both (A) and (B)
D. None of these
Ans: C
62. 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 duty 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. A is liable for subsequent misconduct of B
B. A is not liable for subsequent misconduct of B
C. A is partly liable for subsequent misconduct of B
D. None of these
Ans: B
63. C lends B a sum of money, and A at the request of B, accepts a bill of exchange drawn by B upon A to secure the amount. C, the holder of the bill, demands payment of it from A, and, on A’s refusal to pay, sues him upon the bill. A, not having reasonable grounds for so doing, defends the suit, and has to pay the amount of the bill and costs.
A. He cannot recover from B the amount of the bill
B. He can only recover from B the sum paid for costs
C. He can recover from B the amount of the bill, but not the sum paid for costs, as there was no real ground for defending the action
D. None of these
Ans: C
64. C, a creditor, whose advance to B is secured by a decree, receives also a guarantee for that advance from A.C afterwards takes B’s goods in execution under the decree, and then, without the knowledge of A, withdraws the execution.
A. A is partly discharged
B. A is not discharged
C. A is discharged
D. None of these
Ans: C
65. C, the holder of an overdue bill of exchange draw by A as surety for B, and accepted by B, contract with M to give time to B.
A. A is partly discharged
B. A is discharged
C. A is not discharged
D. None of these
Ans: C
66. Chapter V of the Indian Contract Act, 1872 deals with:
A. The rights or liabilities accruing from the contract
B. The rights or liabilities accruing from relations resembling those created by the contract
C. Both (A) and (B)
D. None of these
Ans: B
67. Circumstances evincing insanity must be considered:
A. Individually
B. Together along with their cumulative effect
C. Both (A) and (B)
D. None of these
Ans: B
68. Coercion is the:
A. Committing, or threatening, any act forbidden by the Indian Penal Code (45 of 1860) with the intention of causing any person to enter into an agreement
B. Unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement
C. Either (A) or (B)
D. None of these
Ans: C
69. Consequences of notice given to agent are discussed under which of the following in the Indian Contract Act, 1872?
A. Section 220
B. Section 219
C. Section 226
D. Section 229
Ans: D
70. Consideration not necessary under which of the following in the Indian Contract Act, 1872?
A. Section 180
B. Section 190
C. Section 187
D. Section 185
Ans: D
71. Coercion which vitiates free consent under section 15 is:
(a) committing or threatening to commit any act which is forbidden by law
(b) committing or threatening to commit any act which is forbidden by Indian Penal Code
(c) unlawful detaining or threatening to detain any property with an intention to causing any person to enter into an agreement
(d) all the above.
Ans. (d)
72. What is correct of a standard form contract:
(a) it is a valid contract
(b) one party has no choice but to accept & sign the contract
(c) both (a) & (b)
(d) the consent is not a free consent.
Ans. (a)
73. Law of contract primarily:
(a) specifies the circumstances in which promises are binding on the parties to the contract
(b) lays down certain norms by which the parties are bound
(c) lays down the circumstances under which a promise may be made
(d) all the above.
Ans. (a)
74. Misrepresentation under section 18 means:
(a) a positive assertion, in a manner not warranted by the information of the person making it, not true but he believes it to be true
(b) any breach of duty, which gains an advantage to the person committing it, by misleading another to his prejudice
(c) causing a party to make an agreement to make a mistake as to the subject matter of contract
(d) all the above.
Ans. (d)
75. A person is deemed to be in a position to dominate the will of another by undue influence if the mental capacity is affected temporarily or permanently by:
(a) reason of age
(b) reason of illness
(c) mental or bodily distress
(d) all the above.
Ans. (d)
76. An agreement to remain unmarried is:
(a) valid
(b) voidable
(c) void
(d) unenforceable.
Ans. (c)
77. A general offer open for world at large can be accepted:
(a) by sending a communication of acceptance
(b) by complying with the conditions of offer
(c) by tendering himself to comply the conditions of offer
(d) none of the above.
Ans. (b)
78. The term consensus ad-idem means:
(a) general consensus
(b) reaching an agreement
(c) meeting of minds upon the same thing in the same sense
(d) all the above.
Ans. (c)
79. Which one of the following does not amount to fraud:
(a) suggestion as a fact which is not true, by one who does not believe it to be true
(b) active concealment of a fact
(c) a representation made without knowing it to be false, honestly believing it to be true
(d) a promise made without any intention of performing it.
Ans. (c)
80. Contract without consideration made in writing & registered and made on account of natural love and affection is:
(a) void
(b) voidable
(c) valid
(d) unenforceable.
Ans. (c)
81. Inadequacy of consideration does not make the contract:
(a) void
(b) voidable
(c) unenforceable
(d) neither void nor voidable.
Ans. (d)
82. Inadequacy of consideration is relevant in determining the question of:
(a) fraud
(b) misrepresentation
(c) undue influence
(d) free consent.
Ans. (d)
83. Agreement without consideration is valid:
(a) when made out of love & affection due to near relationship
(b) when made to compensate a person who has already done something voluntarily
(c) when made to pay a time barred debt
(d) all the above.
Ans. (d)
84. A contract based on the happening or non- happening of a future event under section 31 is called:
(a) a contingent contract
(b) a wagering contract
(c) a contract marked with uncertainty and hence void
(d) none of the above.
Ans. (a)
85. A contingent contract to do or not to do anything on the happening of an uncertain future event under section 32:
(a) is never enforceable
(b) becomes enforceable only on the happening of that event
(c) enforceable since the time of making it
(d) becomes enforceable in the immediate possibility of happening of that event.
Ans. (b)
(a) is void
(b) never becomes void
(c) becomes void when the event becomes impossible
(d) is voidable.
Ans. (c)
87. A contingent agreement based on an impossible event under section 36:
(a) is void
(b) is void till the impossibility is known
(c) becomes void on the knowledge of impossibility
(d) all the above.
Ans. (a)
88. What is true of misrepresentation:
(a) it is the same thing as fraud
(b) it renders the contract voidable
(c) it may be due to innocence
(d) both (b) & (c).
Ans. (d)
89. Two persons have the capacity to contract under section 11:
(a) if both are major
(b) if both are not of unsound mind
(c) if none is declared unqualified to contract
(d) all are correct.
Ans. (d)
(a) voidable at the instance of the minor
(b) voidable at the instance of other party
(c) void
(d) valid.
Ans. (c)
91. An agreement to do an act impossible in itself under section 56 is:
(a) void
(b) valid
(c) voidable
(d) unenforceable.
Ans. (a)
92. A contingent contract based on the specified uncertain event happening within a fixed time under section 35:
(a) remains valid even if the event does not happen within that fixed time
(b) becomes void at the expiration of the time fixed
(c) becomes void if the happening of that event becomes impossible before the expiry of time fixed
(d) both (b) & (c).
Ans. (c)
93. A contingent contract based on the specified uncertain event not happening within a fixed time under section 35:
(a) can be enforced if the event does not happen within the time fixed
(b) can be enforced if before the expiry of time fixed, it becomes certain that such an event shall not happen
(c) cannot be enforced at all, being void
(d) both (a) & (b).
Ans. (d)
(a) the promise himself
(b) the promise through his representative competent to perform
(c) the promise through his representative irrespective of the competency of that representative
(d) both (a) & (b).
Ans. (d)
95. A promisee can accept the performance:
(a) from the promisor himself
(b) from the representative of the promisor competent to perform
(c) from a third person
(d) all the above.
Ans. (d)
96. In case of joint promise, generally the performance must be by:
(a) all the promisors jointly
(b) any one of them individually
(c) one not authorised to perform
(d) none of the above.
Ans. (a)
97. In cases of joint promise generally a promisee can compel:
(a) all the joint promisors to perform
(b) any one of them to perform
(c) some of them to perform
(d) all the above.
Ans. (d)
98. Generally, the joint promisors can:
(a) compel each other to contribute equally
(b) not to compel each other to contribute equally
(c) cannot compel each other to contribute
(d) none of the above.
Ans. (a)
99. Where one of the joint promisors makes a default in contribution of performance:
(a) the other joint promisors have no right against the defaulter
(b) have to bear the loss in equal share
(c) not supposed to bear the loss
(d) the contract becomes void to that extent.
Ans. (b)
100. In case of default by joint promisors the promisee:
(a) can sue any one of them for the entire promise
(b) can sue any one of them to the extent of his share in the joint promise
(c) both (a) & (b)
(d) cannot sue any single promisee.
Ans. (a)
101. In case of death of a joint promisor(s) the promisee:
(a) can enforce the contract against the survivor(s) of the said joint promisor(s) alongwith the joint promisors who are alive
(b) cannot enforce the contract against the survivor(s) of the said joint promisor(s)
(c) both (a) & (b)
(d) cannot enforce the contract against any of them.
Ans. (a)
102. In a contract not specifying the time for performance, the promisor can perform the contract:
(a) within any time howsoever long it may be
(b) within the shortest time
(c) within a reasonable time
(d) none of the above.
Ans. (c)
103. What is a reasonable time for performance of a contract:
(a) is a question of fact
(b) is a question of law
(c) is a mixed question of fact & law
(d) is a question of prudence.
Ans. (a)
104. A contract not specifying the place of performance:
(a) performed at any place to the knowledge of the promisee
(b) the promisor has to apply to the promisee for appointment of a place of performance & perform the promise at that place
(c) the promisor need not seek any instructions from the promisee as to the place of performance
(d) the promisor can perform the promise at a place other than the place appointed by the promisee.
Ans. (b)
105. In case the promisee prescribes the manner and time of performance of promise:
(a) the performance must be in the manner and at the time prescribed
(b) the performance can be in a different manner but at the time prescribed
(c) the performance can be in the manner prescribed but at a time beyond the time prescribed
(d) the performance need not be in the manner and time prescribed.
Ans. (a)
(a) the contract becomes void
(b) the contract remains valid
(c) the contract becomes voidable at the instance of the promisee
(d) the contract becomes unenforceable.
Ans. (c)
107. If the time is not the essence of the contract the failure to perform the contract by the specified time makes the contract:
(a) void
(b) voidable at the instance of the promisee
(c) remains valid but the promisee can claim compensation for the loss suffered by him by such failure
(d) remains valid & can be performed at any subsequent time without being liable for the loss suffered by the promisee.
Ans. (c)
108. In contract for sale of immovable property the presumption is that the time is:
(a) the essence of the contract
(b) not the essence of the contract
(c) the essence of the contract but failure does not make the contract voidable
(d) not the essence of the contract but makes the contract voidable at the instance of the other party.
Ans. (b)
109. Reciprocal promises provide for doing certain things which are legal & certain others which are illegal, under section 57:
(a) the entire set of promises is void
(b) the first set is voidable, but the second set is void
(c) the first set is valid but the second set is void
(d) the entire set of promises is valid.
Ans. (c)
110. A contract, performance of which becomes impossible or unlawful becomes:
(a) void when the performance becomes unlawful or impossible
(b) void
(c) voidable when the performance becomes impossible.
(d) neither becomes void nor voidable
Ans. (a)