Quiz questions and answers on the law of contract for law students!
1. A, authorizes B to buy 500 sheep for him. B buys 500 sheep and 200 lambs for a sum of 6,000 rupees.
A. A may not repudiate the whole transition
B. A may partially repudiate the whole transition
C. A may repudiate the whole transition
D. None of these
Ans. (C)
2. A, B and C are sureties to D for the sum of 1,000 rupees lent to E, and there is a contract between A, B and C that A is to be responsible to the extent of one-quarter, B to the extent of one-quarter, and C to the extent of one-half. E makes default in payment.
A. As between the sureties, A is liable to pay 500 rupees, B 250 rupees and C 500 rupees
B. As between the sureties, A is liable to pay 250 rupees, B 250 rupees and C 250 rupees
C. As between the sureties, A is liable to pay 250 rupees, B 250 rupees and C 500 rupees
D. None of these
Ans. (C)
3. A, B and C are sureties to D for the sum of 3,000 rupees lent to E. E makes default in payment.
A. A and B are liable, as between themselves, to pay 1,000 rupees each
B. A and C are liable, as between themselves, to pay 1,000 rupees each
C. A, B and C are liable, as between themselves, to pay 1,000 rupees each
D. None of these
Ans. (C)
4. A, B and C are under a joint promise to pay D 3,000 rupees. A and B being only sureties for C. C fails to pay. A and B compelled to pay the whole sum.
A. They are entitled to recover it from C
B. They are not entitled to recover it from C
C. They are entitled to recover it from D
D. None of these
Ans. (A)
5. A, B and C are under a joint promise to pay D 3,000 rupees. C is unable to pay anything and A is compelled to pay the whole.
A. A is entitled to receive 1,500 rupees from B
B. A is not entitled to receive any money from B
C. A is entitled to receive 1,500 rupees from C
D. None of these
Ans. (A)
6. A, B and C enter into an agreement for the division among them of gains acquired, or to be acquired, by them by fraud.
A. The agreement is void, as it is unlawful
B. The agreement is void but is not unlawful
C. The agreement is not void as it is lawful
D. None of these
Ans. (A)
7. A, B and C jointly promise to pay D 3,000 rupees.
A. D may compel A to pay him 3,000 rupees
B. D may compel B to pay him 3,000 rupees
C. D may compel C to pay him 3,000 rupees
D. All of them
Ans. (D)
8. A, B and C, as sureties for D, enter into three several bonds, each in a different pearly, namely, A in the penalty of 10,000 rupees, B in that of 20,000 rupees, C is that of 40,000 rupees, conditioned for D’s duly accounting to E. D makes default to the extent of 30,000 rupees.
A. A and C are each liable to pay 15,000 rupees
B. B and C are each liable to pay 15,000 rupees
C. A, B and C are each liable to pay 10,000 rupees
D. None of these
Ans. (C)
9. A, B and C, as sureties for D, enter into three several bonds, each in a different penalty, namely, A in the penalty of 10,000 rupees, B in that of 20,000 rupees, C that of 40,000 rupees, conditioned for D’s duly accounting to E. D makes default to the extent of 40,000 rupees.
A. A is liable to pay 15000 rupees, and B and C 1000 rupees each
B. A is liable to pay 5000 rupees, and B and C 10000 rupees each
C. A is liable to pay 10000 rupees, and B and C 1500 rupees each
D. None of these
Ans. (C)
10. A, B and C, as sureties for D, enter into three several bonds, each in a different penalty, namely, A in the penalty of 10,000 rupees, B in that of 20,000 rupees, C that of 40,000 rupees, conditioned for D’s duly accounting to E. D makes default to the extent of 70,000 rupees.
A. A and C have to pay each the full penalty of his bond
B. B and C have to pay each the full penalty of his bond
C. A, B and C have to pay each the full penalty of his bond
D. None of these
Ans. (C)
11. A, Band C jointly promise to pay D the sum of 3,000 rupees. C is compelled to pay the whole. A is insolvent, but his assets are sufficient to pay one-half of his debts.
A. C is entitled to receive 1250 rupees from A’s estate, and 500 rupees from B
B. C is entitled to receive 500 rupees from A’s estate, and no money from B
C. C is entitled to receive 500 rupees from A’s estate, and 1,250 rupees from B
D. None of these
Ans. (C)
12. A, being agent for a landed proprietor, agrees for money, without the knowledge of this principle to obtain for B a lease of land belonging to his principal.
A. The agreement between A and B is void, as it implies a fraud by concealment, by A, on his principle
B. The agreement between A and B is not void, as it does not imply a fraud by concealment, by A, on his principle
C. The agreement between A and B is void, but it does not imply a fraud by concealment, by A, on his principle
D. None of these
Ans. (A)
13. A, being B’s agent for the sale of goods, induces C to buy them by misrepresentation, which he was not authorized by B to make.
A. The contract is not voidable, as between B and C, at the option of C
B. The contract is partially voidable, as between B and C, at the option of C
C. The contract is voidable, as between B and C, at the option of C
D. None of these
Ans. (C)
14. A, being B’s agent with authority to receive money on his behalf, receives from C a sum of money due to B.
A. C is not discharged of his obligation to pay the sum in question to B
B. C is discharged of his obligation to pay the sum in question to B
C. either (A) or (B)
D. None of these
Ans. (B)
15. A, being entitled to an estate for the life of B, agrees to sell it to C, B was dead at the time of the agreement, but both parties were ignorant of the fact.
A. The agreement cannot be voided
B. The agreement is void
C. either (A) or (B)
D. None of these
Ans. (B)
16. A, being in debt to B, the money-lender of his village, contracts a fresh loan on terms which appear to be unconscionable.
A. It lies on A to prove that the contract was not induced by undue influence
B. It lies on B to prove that the contract was not induced by undue influence
C. either (A) or (B)
D. None of these
Ans. (B)
17. A, being owner of a ship and cargo, authorizes B to procure an insurance for 4,000 rupees on the ship. B procures a policy for 4,000 rupees on the ship, and another for the like sum on the cargo.
A. A is bound to pay the premium for the policy on the ship
B. A is bound to pay the premium for the policy on the cargo
C. A is bound to pay the premium for the policy on the ship, but not the premium for the policy on the cargo
D. None of these
Ans. (C)
18. A, by a misrepresentation leads B erroneously to believe that 500 maunds of indigo are made annually at A’s factory. B examines the accounts of the factory, which show that only 400 maunds of indigo have been made. After this B buys the factory.
A. The contract is voidable on account of A’s misrepresentation
B. The contract is not voidable on account of A’s misrepresentation
C. either (A) or (B)
D. None of these
Ans. (B)
19. A, contracts to buy B’s ship for 60,000 rupees, but breaks his promise.
A. A must pay to B, by way of compensation, the excess, if any, of the contract price for which B can obtain for the ship at the time of the breach of promise
B. A must pay to B, by way of compensation, a partial amount of the contract price for which B can obtain for the ship at the time of the breach of promise
C. A must pay to B, by way of compensation, the excess, if any, of the contract price over the price which B can obtain for the ship at the time of the breach of promise
D. None of these
Ans. (C)
20. A, for natural love and affection, promises to give his son, B, Rs.1,000/-, A puts his promise to B into writing and registers it.
A. This is not a contract
B. This is a contract
C. either (A) or (B)
D. None of these
Ans. (B)
21. A, having contracted with B to supply B with 1,000 tons of iron at 100 rupees a ton, to be delivered at a stated time, contracts with C for the purchase of 1,000 tons of iron at 80 rupees a ton, telling C that he does so for the purpose of performing his contract with B. C fails to perform his contract with A, who cannot procure other iron, and B, in consequence, rescinds the contract.
A. C must pay to A 5000 rupees, being the profit which A would have made by the performance of his contract with B
B. C must pay to A 10,000 rupees, being the profit which A would have made by the performance of his contract with B
C. C must pay to A 20,000 rupees, being the profit which A would have made by the performance of his contract with B
D. None of these
Ans. (C)
22. A, in consideration of 5,000 rupees lent to him by B and C, promises B and C jointly to repay them sum with interest on day specified. B dies.
A. The right to claim performance rests with B’s representatives jointly with C during C’s life with the representatives of B and C jointly
B. The right to claim performance rests with B’s representatives jointly with C after C’s death of C, with the representatives of B and C jointly
C. either (A) or (B)
D. both (A) and (B)
Ans. (D)
23. A party to a contract may lose its contractual rights or benefits under the contract because of the undue influence of the third party where:
A. He was in conspiracy with the third party exercising undue influence
B. He was the agent of the third party exercising undue influence
C. Either (A) or (B)
D. None of these
Ans: C
24. A person shall be deemed to have traded with the enemy, if he had any commercial, financial or other intercourse or dealings with, or for the benefits of, an enemy, and, in particular, if he has:
A. Supplied any goods to or for the benefit of the enemy or obtained any goods from an enemy, or traded in or carried, any goods consigned to or from an enemy or destined for or coming from enemy territory
B. Paid or transmitted any money, negotiable instrument or security for money to or for the benefit of an enemy or to take place in enemy territory
C. Performed any obligation to, or discharged an obligation of, an enemy, whether the obligation was undertaken before or after the commencement of the provisions
D. All of them
Ans: D
25. A principal is liable for the agent’s fraud acting within the scope of his authority?
A. Whether the fraud is committed for the benefit of the principal
B. Whether the fraud is committed for the benefit of the agent
C. Either (A) or (B)
D. None of these
Ans: C
26. A promise to abstain from suing can be a consideration, but only when the person suing has a subsisting right to sue. Therefore, non-payment of instalment of a debt fixed under the Debt Collection act, which had become barred under the Act, cannot be a good consideration of a promise to pay these instalments by a third party. In which of the following cases it was held?
A. Bank of New India Ltd., v. G. Govinda Prabhu
B. Tulsidas Nathudas v. Narayan Ajabrao Raut
C. Lakshmi Chand v. Niader Mai
D. Kedarnath Gangagopal Misra v. Sitaram Narayan Moharil
Ans: B
27. A promise to paint a picture for B by a certain day, at a certain price. A dies before the day.
A. The contractor cannot be enforced by A’s representatives only
B. The contractor cannot be enforced either by B’s representatives only
C. The contractor can be enforced by A’s representatives and not by B
D. Both (A) and (B)
Ans: D
28. A promises B to sell him one hundred bales of merchandise, to be delivered next day, and B promises A to pay for them within a month. A does not deliver according to his promise.
A. B’s promise to pay need not be performed
B. B’s promise to pay needs to be performed
C. A must make compensation
D. Both (A) and (C)
Ans: D
29. A promises to maintain B’s child, and B promises to pay A 1,000 rupees yearly for the purpose. Here the promise of each party is the consideration for the promise of the other party. They are lawful considerations.
A. These are unlawful considerations
B. These are lawful considerations
C. Either (A) or (B)
D. None of these
Ans: B
30. A promises to paint a picture for B. B afterwards forbids him to do so.
A. A needs to perform the promise
B. A is no longer bound to perform the promise
C. B cannot forbid A
D. None of these
Ans: B
31. A promises to pay B a sum of money if a certain ship returns within a year.
A. The contract cannot be enforced if the ship returns within the year; and can be enforced only if the ship is burnt within the year
B. The contract may be enforced if the ship returns within the year; and becomes void if the ship is burnt within the year
C. Either (A) or (B)
D. None of these
Ans: B
32. A promises to pay B a sum of money, if A dies before the time appointed for payment,
A. His representative must perform the promise
B. His representative must employ some proper person to do so
C. Either (A) or (B)
D. Both (A) and (B)
Ans: D
33. A promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certain voyage. Here, A’s promise is the consideration for B’s payment, and B’s payment is the consideration for A’s promise.
A. These are unlawful considerations
B. These are lawful considerations
C. Either (A) or (B)
D. None of these
Ans: B
34. A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post.
A. A cannot revoke his proposal at any time before or at the moment when B posts his letter of acceptance.
B. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but can afterwards
C. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards
D. None of these
Ans: C
35. A proposes, by letter, to sell a house to B at a certain price.
A. The communication of the proposal is complete when the letter is posted was posted by A
B. The communication of the proposal is complete when B receives the letter
C. Either (A) or (B)
D. None of these
Ans: B
36. A railway company refused to deliver up certain goods to the consignee except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods.
A. He is not entitled to recover so much of the charge as was illegally excessive
B. He is entitled to recover over and above the charge as was illegally excessive
C. He is entitled to recover so much of the charge as was illegally excessive
D. None of these
Ans: C
37. A saves B’s property from fire.
A. A is entitled to compensation from B, if the circumstances show that he intended to act gratuitously
B. A is not entitled to compensation from B, whatever the circumstances show that his intentions
C. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously
D. None of these
Ans: C
38. A solicitor in England is entitled to which of the following lien to protect his right to recover his costs from his client?
A. A passive or retaining lien
B. A common law lien on property recovered or preserved by his efforts
C. A statutory lien enforceable by a charging order
D. All of them
Ans: A
39. A sub-bailee is a person to whom the actual possession of goods is transferred by someone:
A. who is not himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. Both (A) and (B)
D. None of these
Ans: C
40. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
Ans: A
41. A supports B’s infant son. B promise to pay A’s expenses in so doing.
A. This is not a contract
B. This is a contract
C. Either (A) or (B)
D. None of these
Ans: B
42. A transaction by which A promised to pay B and C for consideration during their joint lives and after the death of one of them, to the survivor, the consideration moved from B but the agreement was signed by all three, i.e., A, B and C.
A. There was privity between A and B but not with C
B. There was privity between A and C but not with B
C. There was privity between A on one side and B and C on the other
D. None of these
Ans: C
43. A undertakes to repay B a loan of X 1,000 by five equal monthly instalments with a stipulation that, in default of payment of any instalment, the whole shall become due.
A. This stipulation is by way of penalty, and the contract cannot be enforced according to its terms
B. This stipulation is not by way of penalty, and the contract cannot be enforced according to its terms
C. This stipulation is not by way of penalty, and the contract may be enforced according to its terms
D. None of these
Ans: C
44. A, a decree-holder, and entitled to execution of B’s goods, requires the officer of the court to seize certain goods, representing them to be the goods of B. The officer seizes the goods, and issues by C, the true owner of the goods.
A. A is not liable to indemnify the officer for the sum which he is compelled to pay to C, in consequence of obeying A’s directions
B. A is partially liable to indemnify the officer for the sum which he is compelled to pay to C, in consequence of obeying A’s directions
C. A is liable to indemnify the officer for the sum which he is compelled to pay to C, in consequence of obeying A’s directions
D. None of these
Ans: C
45. A, a merchant in Calcutta, has an agent, B, in London to whom a sum of money is paid on A’s account, with orders to remit. B retains the money for considerable time. A, in consequence of not receiving the money, becomes insolvent.
A. B is not liable for the money and interest, from the day on which it ought to have been paid, according to the usual rate
B. B is liable for any further direct loss – as e.g. by variation of rate of exchange
C. B is liable for the money and interest, from the day on which it ought to have been paid, according to the usual rate, and for any further direct loss – as e.g. by variation of rate of exchange – but not further
D. None of these
Ans: C
46. A, a money-lender advances Rs. 100 to B, an agriculturist, and by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent per month.
A. The Court will not set the bond aside and not take any legal action against B
B. The Court may set the bond aside, ordering B to repay the Rs. 100 with such as may seem just
C. Either (A) or (B)
D. None of these
Ans: B
47. A, a signer, contracts with B, the manager of a theatre for two nights in every week during the next two months, and B engages to pay her a hundred rupees for each night’s performance. On the sixth night, A willfully absents herself from the theatre, and B, in consequence rescinds the contract.
A. B must pay A for the three nights on which she had sung
B. B must pay A for the four nights on which she had sung
C. B must pay A for the five nights on which she had sung
D. None of these
Ans: C
48. A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre two nights in every week during the next two months, and B engages to pay her 100 rupees for each night’s performance. On the sixth night A willfully absent herself from the theatre.
A. B is at liberty to put an end to the contract
B. B cannot put an end to the contract
C. Either (A) or (B)
D. None of these
Ans: A
49. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
Ans: C
50. A, an agent for the sale of goods, having authority to sell on credit, sells to B on credit, without making the proper and usual inquires as to the solvency of B. B at the time of such sale is insolvent.
A. A need not make compensation to his principal in respect of any loss thereby sustained
B. A can partially make compensation to his principal in respect of any loss thereby sustained
C. A must make compensation to his principal in respect of any loss thereby sustained
D. None of these
Ans: C
51. A, as surety for B, makes a bond jointly with B to C, to secure a loan from C to B. Afterwards, C obtains from B a further security for the same debt. Subsequently, C gives up the further security.
B. A is discharged
C. A is not discharged
D. None of these
Ans: C
52. A, authorizes B to buy 500 sheep for him. B buys 500 sheep and 200 lambs for a sum of 6,000 rupees.
A. A may not repudiate the whole transition
B. A may partially repudiate the whole transition
C. A may repudiate the whole transition
D. None of these
Ans: C
53. An agreement enforceable at law is a:
(a) enforceable acceptance
(b) accepted offer
(c) approved promise
(d) contract.
Ans. (d)
54. Every promise and every set of promises, forming the consideration for each other, is an:
(a) agreement
(b) contract
(c) offer
(d) acceptance.
Ans. (a)
55. Promises which form the consideration or part of the consideration for each other are called:
(a) reciprocal promises
(b) cross offers
(c) conditional offer
(d) conditional promises.
Ans. (a)
56. An agreement not enforceable by law is stated to be void under:
(a) section 2(d)
(b) section 2(e)
(c) section 2(f)
(d) section 2(g).
Ans. (d)
57. Void agreement signifies:
(a) agreement illegal in nature
(b) agreement not enforceable by law
(c) agreement violating legal procedure
(d) agreement against public policy.
Ans. (b)
58. Offer as defined under section 2(a) is:
(a) communication from one person to another
(b) suggestion by one person to another
(c) willingness to do or abstain from doing an act in order to obtain the assent of other thereto
(d) none of the above.
Ans. (c)
59. Under section 2(b) if the person to whom the proposal is made signifies his assent the proposal is said to have been:
(a) accepted
(b) agreed
(d) tentatively accepted.
Ans. (a)
60. A proposal when accepted becomes:
(a) promise under section 2(b)
(b) agreement under section 2(e)
(c) contract under section 2(h)
(d) none of the above.
Ans. (a)
61. When, at the desire of the promisor, the promisee or any other person has done or abstained from doing or, does or abstains from doing or promises to do or to abstain from doing something, such act or abstinence or promise under section 2(d) is called:
(a) reciprocal promise
(b) consideration for the promise
(c) counter offer
(d) acceptance.
Ans. (b)
62. Promises which form the consideration or part thereof, for each other under section 2(f) are called:
(a) acceptances for different proposals
(b) agreements
(c) reciprocal promises
(d) consideration.
Ans. (c)
63. Every promise or set of promises forming the consideration for each other under section 2(e) is called:
(a) reciprocal promise
(b) contract
(c) agreement
(d) none of the above.
Ans. (c)
64. An agreement enforceable by law at the instance of one party & not of other party under section 2(i) is called:
(a) a valid contract
(b) an illegal contract
(c) a void contract
(d) a voidable contract.
Ans. (d)
65. Which is correct:
(a) proposal + acceptance = promise
(b) promise + consideration = agreement
(c) agreement + enforceability = contract
(d) all the above.
Ans. (d)
66. In a valid contract, what comes first:
(b) acceptance
(c) promise
(d) proposal.
Ans. (d)
67. Under section 2(c) promisor is the:
(a) person who makes the proposal
(b) person who accepts the proposal
(c) person who makes the promise
(d) person to whom the proposal is made.
Ans. (a)
68. Under section 2(c) promisee is the:
(a) person who makes the proposal
(b) person who accepts the proposal
(c) person who makes the promise
(d) person to whom proposal is made.
Ans. (b)
69. Goods displayed in a shop with a price tag is an:
(a) offer
(b) invitation to offer
(c) counter offer
(d) none of the above.
Ans. (b)
(a) an offer
(b) an invitation to offer
(c) a counter offer
(d) a promise.
Ans. (b)
71. Communication of a proposal is complete:
(a) when it is put in the course of transmission
(b) when it comes to the knowledge of the person to whom it is made
(c) when the proposal is communicated to the person to whom it is made
(d) all the above.
Ans. (b)
72. Communication of acceptance is complete as against the proposer:
(a) when it comes 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 the acceptance is communicated to the proposer
(d) all the above.
Ans. (b)
73. Communication of acceptance is complete as against the acceptor:
(a) when it comes to the knowledge of the proposer
(b) when it is put in the course of transmission
(c) when it is communicated to the acceptor that the acceptance has reached the proposer
(d) when the proposer conveys the acceptance to the acceptor.
Ans. (a)
74. Revocation of offer by letter or telegram can be complete:
(a) when it is despatched
(b) when it is received by the offeree
(c) when it reaches the offeree
(d) both (a) and (c).
Ans. (a)
75. Acceptance to be valid must:
(a) be absolute
(b) be unqualified
(c) both be absolute & unqualified
(d) be conditional.
Ans. (c)
76. A contract with or by a minor is a:
(a) valid contract
(b) void contract
(c) voidable contract
(d) voidable at the option of either party.
Ans. (b)
77. A contract which ceases to be enforceable by law becomes void:
(a) when it ceases to be enforceable
(b) before it ceases to be enforceable
(c) no such condition necessary
(d) none of above.
Ans. (a)
78. An acceptance can be revoked:
(a) at any time before the communication of acceptance is complete as against the promisee
(b) after its acceptance comes to the knowledge of the promisee
(c) both (a) & (b)
(d) neither (a) nor (b).
Ans. (a)
79. A proposal stands revoked:
(a) by communication of notice of revocation by the proposer
(b) by failure of acceptor to fulfil a condition precedent
(c) by death or insanity of proposer to the knowledge of acceptor
(d) all the above.
Ans. (d)
80. A proposal can be accepted:
(a) by notice of acceptance
(b) by performance of condition of proposal
(c) by acceptance of consideration for a reciprocal promise
(d) all the above.
Ans. (d)
81. Enforceable agreements are the one:
(a) made by free consent
(b) parties to the contract are competent to enter into an agreement
(c) having lawful consideration & lawful object
(d) all the above.
Ans. (d)
82. Competency to contract relates to:
(a) age of the parties
(b) soundness of mind of the parties
(c) both age & soundness of mind
(d) intelligence of the parties.
Ans. (c)
83. Whether agent can invoke arbitration clause in contract:
(a) yes
(b) no
(c) can invoke if agreement provides for
(d) can invoke if principal authorizes him.
Ans. (a)
84. In which of the following cases it was held that the “Contract cannot be declared to have been frustrated because its performance had become more onerous on account of unforeseen circumstances”:
(a) Premier Explosives Ltd. v. Chairman and Managing Director, Singareni Collieries Co. Ltd., AIR 2010 AP 107.
(b) M.V. Ramma v. T.N. Reddy, AIR 2010 AP 114
(c) T. Mohan Reddy v. Potu, AIR 2010 AP 117
(d) P.T. Reddy v. Jyoti Reddy, AIR 2010 AP 119.
Ans. (a)
85. Arrange the following concepts in sequence in which they occur, using codes given below:
(i) Offer
(ii) Acceptance
(iii) Damage
(iv) Damages
Codes:
(a) (iv) (iii) (ii) (i)
(b) (i) (ii) (iv) (iii)
(c) (i) (iv) (ii) (iii)
(d) (i) (ii) (iii) (iv)
Ans. (b)
86. Get Correct answer using codes given below:
Assertion (A): A proposal, when accepted, results in an agreement.
Reason (R): It is only after the acceptance of the proposal that a contract between the two parties can arise: Code:
(a) Both ‘A’ and ‘R’ are true and ‘R’ is correct explanation of ‘A’
(b) Both ‘A’ and ‘R’ are true and ‘R’ is not correct explanation of ‘A’
(c) ‘A’ is true, but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true.
Ans. (a)
87. An agreement between a husband and a deserting wife whereby the husband promised a weekly maintenance and she promised to indemnify him against all debts and not to pledge his credit, is an agreement for consideration.
A. She had forfeited her right of maintenance by the desertion
B. She did not forfeit her right of maintenance by the desertion
C. She had partly forfeited her right to maintenance by the desertion
D. None of these
Ans: B
88. An application by an employee seeking voluntary retirement benefits can be withdrawn any time before it is accepted by the employer. In which of the following cases it was upheld?
A. Saurahh Prasad v. DLF Universal Ltd
B. Ceilena v. Ulhas
C. Food Corporation of India v. Ramesh Kumar
D. None of these
Ans: C
89. Anticipatory breach of contract is:
A. The refusal by any party to a contract before the due date for performance, to perform,
B. His disabling himself from being able then to perform
C. Either (A) or (B)
D. None of these
Ans: C
90. Any one of joint promisors may be compelled to perform under which of the following in the Indian Contract Act, 1872?
A. Section 42
B. Section 36
C. Section 43
D. Section 40
Ans: C
91. The term ostensible authority denotes:
A. No authority at all
B. The position which arises when one person has clothed another or not allowed him to assume an appearance of authority to act on his behalf, without actually giving him any authority either express or implied, by which appearance of authority a third party is misled into believing that a real authority exists
C. both (A) and (B)
D. None of these
Ans. (C)
92. The terms ‘benefit’ and ‘detriment’ have been used by courts in which of the following senses in Section 2 of the Indian Contract Act, 1872?
A. act which value
B. such acts, the performance of which is not already legal due from promise
C. both (A) and (B)
D. None of these
Ans. (C)
93. The terms implied may be of:
B. terms implied by law
C. other terms implied by Courts
D. All of them
Ans. (D)
94. The theories or juristic bases for the doctrine of frustration were evolved for justifying the departure from the doctrine of absolute contracts. The main theories are:
I. Implied term theory
II. Basis or foundation of the contracts
III. Just and reasonable solution
IV. Radical change in the obligation under the contracts
A. II, III
B. IV
C. I
D. All of them
Ans. (D)
95. The UNIDROIT principles enable avoidance of contract for mistake on which of the following conditions?
A. The mistake must be serious i.e. such importance that a reasonable person in the same situation as the party in error would only have concluded the contract on materially different terms or would not have only concluded the contract at all if it had known the true state of affairs
B. Both the parties laboured under the same mistake, or the error was caused by the other party, or the other party knew or ought to have known of the error of the mistaken party and that it was contrary to reasonable commercial standards of fair dealing to leave the mistaken party in error, or the other party has not, up to the time of avoidance, acted in reliance of the contract
C. both (A) or (B)
D. None of these
Ans. (C)
96. What does Section 69 of the Indian Contract Act, 1872 contemplates?
A. The existing interest which the payment is intended to protect
B. The interest created by the payment itself
C. The interest forming part of the same transaction as the payment itself and the security of the payment
D. None of these
Ans. (A)
97. What is the purpose of the rule of mitigation?
A. to prevent the waste of limited resources in society which forces the innocent party, the plaintiff to find a substitute after the defendant’s breach
B. to enable the defendant to commit efficient breach of contract where the defendant deliberately would break his contractual relationship for a better opportunity
C. both (A) and (B)
D. None of these
Ans. (C)
98. When a person becomes a surety without the knowledge and consent if the principal-debtor, the only rights, which he acquires, are those given by:
A. Section 139 of the Indian Contract Act, 1872
B. Section 140 of the Indian Contract Act, 1872
C. Section 141 of the Indian Contract Act, 1872
D. both (B) and (C)
Ans. (D)
99. When a statute clearly covers a case, it is hardly necessary to refer to decisions. In which of the following cases it was so upheld?
A. Lala Kapurchand Godha v. Mir Nawab Himayatalikhan Azamjah
B. State of Madras v. Gannon Durkerley & Co. Ltd.
C. Firm Kanhaiyalal v. Dineshchandra
D. Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co.
Ans. (A)
100. When a third party has a right under the contract, the contracting parties cannot (unless the express term of the contract enables rescission or variation of the contract without third party’s consent), rescind or vary the terms of the agreement in a way which affect the third party’s rights without the consent of the third party, if:
A. the third party has communicated his assent to the terms to the promisor
B. the promisor is aware that the third party has relied on the terms
C. the promisor can reasonably be expected to have foreseen that the third party would rely on the terms and the third party has in fact relied on it
D. All of them
Ans. (D)
101. When did the Indian Contract Act, 1872 come into force?
A. September 1
B. September 5
C. September 7
D. September 10
Ans. (A)
102. When does the surety’s right to contribution from his co-sureties arise?
A. It arises before the payment is made under his guarantee
B. It arises after the payment is made under his guarantee
C. either (A) or (B)
D. None of these
Ans. (A)
103. When the guarantee is expressed to be a continuing guarantee and to apply to the balance for time-to-time owing by the principal-debtor to the creditor times runs:
A. only from the date when each of such balance is constituted by the excess of total debits over total credits
B. not from the date when each advance is made to the principal-debtor
C. either (A) or (B)
D. None of these
Ans. (A)
104. Where a bail bond has been forfeited, the surety cannot recover from the person bailed on the grounds of:
A. public policy
B. a surety for appearance, where the sum under his surety-bond has been forfeited
C. both (A) and (B)
D. None of these
Ans. (C)
105. Where a contract is one of guarantee:
A. The surety need not be called upon to pay unless the principal-debtor has committed a default
B. The surety is entitled to all the rights, viz, of discharge, subrogation of securities, indemnity from the principal-debtor, etc. provided in ss. 133 to 145; though an indemnifier is entitled to rights given by ss. 140 and 141
C. both (A) and (B)
D. None of these
Ans. (C)
106. Where an agent fails in his duty towards the principal, the remedies of the principal against the agent are:
A. To recover damages for want of skill and care and for disregard of the terms of the mandate
B. To obtain an account and payment of secret and illicit profits which have come to the hands of the agent as an agent
C. To resist the agent’s claim for remuneration or indemnity
D. All of them
Ans. (D)
107. Where the bailment is for hire, it may be:
I. hiring the use of goods
II. hiring the use of labour or work on or with regard to the goods
III. hiring of custody i.e. of services in keeping the goods
IV. hiring of carriage of goods
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)