3. Agreement caused by a bilateral mistake of fact is-
Correct : A. void
4. Which of these is a wagering contract?
Correct : C. lottery
5. Consideration must move at the desire of-
Correct : C. the promisor
6. A contract entered into between the parties by words is called-
Correct : A. express contract
7. When an offer can be accepted only by the person to whom it is made, it is called-
Correct : C. specific offer
8. A promise to subscribe to a charity is a
Correct : A. void agreement
9. A contract for the benefit of a minor entered into by his manager is
Correct : D. valid
10. Two or more persons are said to consent when they agree upon
Correct : C. the same thing in a specific sense
11. The term “Quid pro quo” means:
Correct : A. something in return
12. Which of the following is not an essential element of a valid contract:
Correct : A. adequacy of consideration
13. If a contract provides for the payment of a certain amount on breach of a contract, such
payment is termed as:
Correct : C. liquidated damages
14. Which of the following case is not covered by the concept of supervening impossibility?
Correct : D. difficulty of performance
15. Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of making
a contract if:
Correct : B. he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests.
16. A 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 is said to be a:
Correct : B. misrepresentation
17. A minor can:
Correct : A. be an agent
18. Choose the incorrect statement:
To constitute a wager, following elements should be present in the agreement:
Correct : D. there should be a promise to pay money only
19. The Indian Contract Act, 1872 applies to the
Correct : B. whole of india excluding jammu & kashmir
20. A jus in personam means a right against
Correct : A. a specific person
21. Which of the following statement is true
Correct : C. both (a) and (b)
22. A contract is made where
Correct : C. x takes a sit in a public omni bus
23. A void agreement is one which is
Correct : D. not enforceable in a court of law
24. In case of void agreements, collateral transactions are
Correct : C. not affected
25. General offer can be accepted by
Correct : A. any person
26. Which of the following does not constitute valid acceptance
Correct : C. it has been presumed from silence of offeree
27. Which of the following is not the legal requirements of a valid offer
Correct : D. it must be made to a specific person and not to public at large
28. As a general rule, an agreement made without consideration is
Correct : A. void
29. An agreement made with free consent to which the consideration is lawful but inadequate, is
Correct : B. valid
30. For the enforcement of a promise to pay a time-barred debt without consideration, which of
the following condition is not required?
Correct : D. it must be registered in court of law
31. A contract is discharged by the breach when a party to a contract
Correct : D. all of the above
32. Which of the following is incorrect?
Correct : C. an initial impossibility discharges the contract
33. The doctrine of impossibility of performance, rendering a contract void, is based on
Correct : B. a supervening impossibility
34. Because of supervening event, the promisor is excused from the performance of the contract.
This is known as
Correct : A. a doctrine of frustration
35. Which of the following is correct?
Correct : A. a novation means making a new contract in the place of an old contract
36. _________ indicates that the parties are not further bound under the contract
Correct : D. discharge of a contract
37. X contracts to sell his scooter to Y for Rs. 50,000 and Y agrees to pay on delivery. Both the
parties perform their promises. This is called
Correct : D. an actual performance of a contract
38. Assignment by the operation of law takes place
Correct : D. by the death of a party to a contract
39. The original contract needs not to be performed, if there is
Correct : D. all of the above
40. Rescission of a contract means
Correct : A. the termination of the contract
41. When the parties mutually agree to change certain terms of the contract. This is called
Correct : C. an alteration of a contract
42. If a person accepts a lesser sum of money than what was contracted for, in the discharge of
the whole debt, it is known as
Correct : B. a remission
43. Intentional relinquishment of a right under the contract is called
Correct : A. a waiver
44. Where a party to contract transfers his rights under the contract to another person, it is legally
known as
Correct : D. assignment of a contract
45. Performance of a contract means
Correct : C. performing all the promises, and fulfilling all the obligations by all the parties
46. Offer to perform is called
Correct : A. attempted performance
47. Which is not the essential of a valid tender?
Correct : A. tender must be conditional
48. An offer of performance is known as a/an
Correct : C. tender
49. The offer to perform the contract must be
Correct : A. unconditional
50. The promises forming consideration for each other are called
Correct : A. reciprocal promises
51. Ex turpi causa non oritur action means?
Correct : A. from an illegal cause, no action arises
52. Consideration and object of an agreement is unlawful if it
Correct : A. is fraudulent
53. The stifling agreement is
Correct : D. void
54. Which of the following agreements are valid?
Correct : D. none of the above
55. In which of the following agreements, restraint of trade is valid?
Correct : D. all of the above
56. An uncertain agreement is
Correct : B. void
57. An illegal agreement is
Correct : D. both (a) & (b)
58. Which of the following is not a feature of a wagering agreement?
Correct : D. neither parties should have an interest in the event
59. An athletic competitions are valid because they are
Correct : A. games of skill
60. Share market transactions with a clear intention only to settle the price difference are
Correct : A. wagering agreements
61. Which of these are not opposed to public policy?
Correct : C. compromise of compoundable offences
62. Where a person agrees to maintain a suit, in which he has no interest, the proceeding is
known as
Correct : B. maintenance
63. An agreement whereby one party assists another in recovering money or property and in turn
share in the proceeds of the action is called
Correct : A. champerty
64. Which of the following is a contingent contract?
Correct : A. contract of insurance
65. Consent means parties agreeing on
Correct : C. the same thing in the same sense
66. _________ means forcibly compelling a person to enter into a contract
Correct : D. coercion
67. Duress under English contract law is similar to
Correct : B. coercion
68. Ubberima fidei means
Correct : B. utmost good faith
69. When one of the parties is under a mistake as to a matter of fact essential to the agreement, it
is called
Correct : A. unilateral mistake
70. The maxim ‘Ignoranlia juris non excusa’ stands for
Correct : D. ignorance of law of land is no excuse
71. The case of ‘no consent’, i.e., when there is no consent at all, is described by Salmond as
Correct : B. error in consensus
72. Capacity to contract means
Correct : C. the parties are legally competent to enter into contracts
73. Competence to contract means
Correct : C. both (a) & (b)
74. A minor’s agreement is void. This was held in the case of
Correct : A. mohiri bibee vs. dharmadas ghosh
75. A minor can be
Correct : C. always plead his minority
76. A minor’s guardian is not liable to the creditor for breach of contract by the minor, if the
contract is for __________
Correct : D. all of the above
77. The doctrine of restitution refers to the restoration of property or goods, obtained by false
representation. This doctrine is
Correct : C. applicable to minors
78. A consideration in a contract
Correct : C. something in return
79. A consideration may be
Correct : D. either (a) or (b) or (c)
80. An agreement not supported by the consideration is called
Correct : A. nudum pactum
81. The consideration is to be moved sometime after the formation of a contract, it is known as
Correct : B. executory consideration
82. The term privity of contract means
Correct : A. stranger to contract
83. A proposal may consist of a promise for
Correct : C. either (a) or (b)
84. A offers to sell his car on internet, it is
Correct : A. an express offer
85. The offer which is allowed to remain open for the acceptance over a period of time is known
as a/an
Correct : A. standing offer
86. The offer made to a specific person or group of persons is known as a
Correct : B. specific offer
87. Terms of the offer must be
Correct : C. definite
88. When a person invites the other party to make an offer, he is said to make a/an
Correct : C. invitation to offer
89. Price lists, catalogues, advertisements in newspapers and enquiries from customers are
Correct : B. invitations to offer
90. Goods displayed in a shop with a price label is
Correct : B. an invitation to offer
91. When the offers made by two persons to each other containing similar terms of bargain cross
each other in post, they are known as
Correct : A. cross offers
92. Which of the following is not the mode of the lapse of an offer?
Correct : B. case against the offeror
93. Contract is defined as an agreement enforceable by law, vide section . . . . . of the Indian
Contract Act
Correct : C. 2 (h)
94. When the contract is perfectly valid but cannot be enforced because of certain technical
defects. This is called
Correct : C. unenforceable contract
95. Where a contract has to be inferred from the conduct of parties, it is called
Correct : B. implied contract
96. Where the obligation in a contract is outstanding on the part of both parties, it is called
Correct : D. bilateral contract
97. A contract in which, under the terms of a contract, nothing remains to be done by either
party is known as
Correct : A. executed contract
98. A contract in which, under the terms of a contract, one or both the parties have still to
perform their obligations in future is known as
Correct : B. executory contract
99. The unpaid seller can exercise his right of lien over the goods for