4. An agreement which is enforceable by law at the portion of one or more of the parties
thereon but not at the option of the other or others is a :
Correct : C. Voidable Contract
5. Which is the following is false? An offer to be valid must;
Correct : C. Contain a term the non‐compliance of which would amount to acceptance
6. When the consent of a party is not free, the contract is:
Correct : B. Voidable
7. Which is the following is false? An acceptance:
Correct : D. May be presumed from silence of offeree
8. In case of illegal agreements the collateral agreements are
Correct : B. Void Contract
9. An offer may lapse by
Correct : D. All of these
10. A proposal when accepted becomes a:
Correct : A. Promise
11. Which of the following statement is true?
Correct : D. Consideration must be something which a promisor is not already bound to do
12. Which is the following is false? Consideration:
Correct : C. Must be illusory
13. Which of the following statement is false?
Correct : B. A verbal promise to pay a time barred debt is valid
14. Consideration must move at the desire of:
Correct : A. Promisor
15. Which of the following statement is true?
Correct : B. There can be a stranger to a consideration
16. Consideration may be
Correct : D. All of the above
17. Consideration in sample term means
Correct : B. Something in return
18. Which of the following is not an exception to the rule – No consideration, No contract.
Correct : A. Compensation for involuntary services
19. Ordinarily, a minor’s agreement is
Correct : A. Void ab initio
20. A minor’s liability for ‘necessaries’ supplied to him
Correct : B. Is against only minor’s property
21. Which of the following statement is not true about minor’s position in a form?
Correct : B. He can become a partner in an existing firm
22. Which of the following statement is true?
Correct : D. A person who is usually of an sound mind cannot enter into contract even when
23. Consent is not said to be free when it is caused by
Correct : D. All of these
24. When the consent of a party is obtained by fraud, the contract is
Correct : B. Voidable
25. The threat to commit suicide amounts to
Correct : A. Coercion
26. Moral pressure is involved in the case of
Correct : B. Undue influence
27. A wrong representation when made without any intention to deceive the other party
amounts to
Correct : C. Misrepresentation
28. Which of the following statement is true?
Correct : C. Ignorance of law is no excuse
29. In case of illegal agreements, the collateral agreements are;
Correct : B. Valid
30. An agreement the object or consideration of which is unlawful, is:
Correct : A. Void
31. An agreement is void if it is opposed to public policy. Which of the following is not
covered by heads of public policy.
Correct : D. Contracts to do impossible acts
32. On the valid performance of the contractual obligations by the parties, the contract;
Correct : A. Is discharged
33. Which of the following persons can perform the contract?
Correct : D. All of these
34. A, B and C jointly promised to pay Rs.6000 to D. Before the performance of the contract,
C dies. Here the contract;
Correct : B. Should be performed by A and B along with C’s legal representatives
35. A contract is discharged by novation which means the;
Correct : C. Substitution of existing contract for a new one
36. A contract is discharged by recission which means the;
Correct : D. Cancellation of the existing contract
37. When prior to the due date of performance, the promisor absolutely refuses to perform
the contract, it is known as:
Correct : D. Anticipatory breach of contract
38. In case of anticipatory breach, the aggrieved party may treat the contract;
Correct : C. Exercise option either (a) or (b)
39. In case of breach of contract, which of the following remedy is available to the aggrieved
party?
Correct : D. All of these
40. Sometimes, a party is entitled to claim compensation in proportion to the work done by
him. It is possible by a suit for;
Correct : C. Quantum merit
41. Generally, which of the following damages are not recoverable?
Correct : C. Remote damages
42. A contract depend on the happening or non happening of the future uncertain event,
is a
Correct : B. Contingent contract
43. A contingent contract is ;
Correct : C. Valid
44. A contingent contract depend on the happening of the future uncertain event can be
enforced when the event;
Correct : A. Happens
45. A agrees to pay Rs.1,00,000 to B if he brings a star from the sky. This is a contingent
contract and
Correct : D. Void
46. Which of the following statement is true?
Correct : C. Both (a) and (b)
47. A voidable contract is one which;
Correct : A. Can be enforced at the option of the aggrieved party
48. On the acceptance of an offer by a offeree
Correct : C. Both the acceptor and offeree becomes bound by the contract
49. A, by a letter dated 25th December 1998, offers to sell his house to B for Rs.10 lakhs. The letter reaches on 27th Dec.1998, who posts his acceptance on 28th Dec. 1998 which reaches A on 30th Dec.1998. Here the communication of offer is completed on;
Correct : B. 27th Dec.1998
50. In the above question, the communication of acceptance is complete against A on 28th
Dec.1998 and against B on;
Correct : D. 30th Dec.1998
51. As a general rule, an agreement made without consideration is;
Correct : A. Void
52. A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A’s consent was
obtained by coercion. Here, the agreement is;
Correct : C. Voidable
53. An agreement made with free consent to which the consideration is lawful but
inadequate is;
Correct : B. Valid
54. Which of the following persons are not competent to contract?
Correct : D. All of these
55. For entering into a contract, a minor is a person who has not completed the age of;
Correct : B. 18 years
56. A contract with the minor, which is beneficial for him, is;
Correct : C. Valid
57. Which of the following persons do not fall under the category of persons of unsound
mind?
Correct : D. Alien
58. Which of the following elements does not affect the free consent of the parties.
Correct : C. Incompetency
59. When the consent of a party is obtained by coercion undue influence, fraud or
misrepresentation, the contract is;
Correct : B. Voidable
60. A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here
B’s consent is obtained by
Correct : C. Coercion
61. When the consent to an agreement is obtained by coercion, the agreement is voidable
at the option of
Correct : B. A party whose consent was so obtained
62. When one party is in a position to dominate the will of another and uses his superior
position to obtain the consent of a weaker party, the consent is said to be obtained by;
Correct : B. Undue influence
63. Which of the following acts does not fall under the categories of fraud?
Correct : C. Innocent false statements
64. Where the consent of a party is obtained by misrepresentation, the contract is;
Correct : C. Voidable
65. Which of the following statement is false?
Correct : D. A party who affirms the contract , can also change his option afterwards if he so decides
66. Where the consent of both the parties is given by mistakes, the contract is;
Correct : A. Void
67. As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per
Section 22, if there is mistake of only one party, then the contract is;
Correct : B. Valid
68. A contract made by mistake about Indian Law, is;
Correct : B. Valid
69. A contract made by mistake about some foreign law, is;
Correct : A. Void
70. A mistake as to law not in force in India has the same effect as;
Correct : A. Mistake of fact
71. The consideration or object of agreement is considered unlawful, if is
Correct : D. All of these
72. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax
Department. This agreement is
Correct : A. Void
73. A agrees to pay Rs.50000 to B if he kills C. the agreement is
Correct : A. Void
74. An agreement in restraint of marriage, ie, which prevents a person from marrying is
Correct : C. Void
75. An agreement in restraint of marriage is valid incase of the following persons
Correct : A. Minors
76. An agreement, which prevents a person from carrying lawful business is
Correct : B. Void
77. An agreement in restraint of legal proceedings is void. It does not cover an agreement
which
Correct : D. Provides for a reference to arbitration instead of court of law
78. A agrees to sell his car to B at a price which B may be able to pay. This agreement is
Correct : A. Void
79. An agreement to pay money money’s worth on the happening or non happening of a
specified uncertain event is a
Correct : A. Wagering agreement
80. An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is
Correct : B. Void
81. Where an agreement consists of two parts once legal and the other illegal and the legal
part is separable from the illegal one, such legal part is
Correct : B. Valid
82. A contingent contract dependent on the non happening of a future uncertain event
becomes void when such event
Correct : D. Both (a) and (b)
83. A agrees to pay Rs.1000 to B if a certain ship returns within a year. However, the ship
sinks within the year. In this case, the contract becomes
Correct : B. Void
84. A contingent contract dependent on the non happening of specified uncertain event
within fixed time can be enforced if the event
Correct : D. Both (a) and (b)
85. The basis of ‘quasi contractual relations’ is the
Correct : B. Prevention of unjust enrichment at the expense of others
86. Sometimes, a person finds certain goods belonging to some persons. In such case, the
finder
Correct : D. Both (b) and (c)
87. A, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the
entire amount of Rs.60000. Here
Correct : B. A is entitled to recover Rs.20000 each from B and C
88. In commercial transactions, time is considered to be of the essence of contract, and if
the party fails to perform the contract within specified time, the contract becomes
Correct : A. Voidable at the option of the other party
89. Where the performance of a promise by one party depends on the prior performance of
promise by the other party, such reciprocal promises fall under category of
Correct : B. Conditional and dependent
90. When after the formation of a valid contract, an event happens which makes the
performance of contract impossible then the contract becomes
Correct : A. Void
91. A party entitled to rescind contract, losses the remedy where
Correct : D. All of these
92. The special damages ie, the damages which arise due to so a special or unusual
circumstances
Correct : C. Cannot be claimed as a matter of right
93. Which of the following statements is correct?
Correct : D. All of these
94. When offer is made to a definite person, it is known as
Correct : D. Special offer
95. Standing offer means
Correct : A. Offer allowed to remain open for acceptance over a period of times
96. When the offeree offers to qualified acceptance of the offer subject to modifications
and variations he is said to have made a
Correct : B. Counter offer
97. What is legal terminology for the doing or not doing of something which the promisor
desires to be done or not done?
Correct : C. Considerations
98. Can a person who is usually of unsound, but occasionally of sound mind, make a
contract?
Correct : B. Yes, but only when he is sound mind
99. A and B both believe that a particular kind of rice is being sold in the market@Rs.3000 per quintel and A sells rice of that kind to B @3000/quintel. But in fact, the market price was Rs.4000, the contract is
Correct : A. Valid
100. A sells the goodwill of his business to B and agrees with him to refrain from carrying
on a similar business within specified local limits. This contract is