Correct : B. is valid in the beginning but becomes void later on.
2. Which one of the following does not connote ‘goods’ as defined in the Sale of Goods Act?
Correct : D. Both (A) and (C)
3. Acceptance takes place as against the proposer.
Correct : A. when the letter of acceptance is posted by the acceptor.
4. Conditions are stipulations
Correct : A. Essential to the main purpose of the contract.
5. Which of the following is an offer?
Correct : D. Bids in an auction sale.
6. The general rule of Sale of Goods Act, is risk prima facie passes with
Correct : A. Ownership
7. Which one of the following has the correct sequence?
Correct : B. Offer, acceptance, consideration, contract
8. The exceptions to the rule A stranger to a contract cannot sue are
Correct : D. All of the above
9. Delivery of the keys of a godown where goods are kept amounts to
Correct : B. Symbolic delivery
10. In Indian Law consideration must have been done at the desire of the promisor, if it is done
at the instance of a third party or without the desire of the promisor, it is:
Correct : B. Not Consideration
11. Is a pronote executed in favour of a minor good in law?
Correct : A. Yes
12. Right of stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:
Correct : B. becomes insolvent
13. ‘A’ threatened to commit suicide if his wife did not execute a sale deed in favour of his
brother. The wife executed the sale deed. This transaction is
Correct : B. voidable due to coercion.
14. Which one of the following statements is correct?
Correct : D. illegal agreements are always void.
15. In pretended bidding, sale is
Correct : C. voidable at the option of the buyer
16. 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. Owing to A’s i gnorance B is enabled to buy the estate at a low price. The contract is:
Correct : C. Voidable at the option of A
17. A paid 500 to a Government servant to get him a contract for the canteen. The Government servant could not get the contract. Can A recover 500 paid by him to the Government servant?
Correct : D. No, the agreement is void.
18. Under Section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made:
Correct : B. before its maturity
19. Which of the following statement is false in connection with the contingent contract?
Correct : D. none of the above.
20. Who is liable for necessaries supplied to a minor?
Correct : C. His property
21. Cheque is a _______________
Correct : B. Bill of exchange
22. A contract stands discharged
Correct : D. all of the above
23. The maturity of a promissory note or bill of exchange is the date
Correct : A. at which it falls due
24. Where the parties to a contract have agreed that a certain sum of money would be paid in
case of breach of contract, the court will ensure that
Correct : C. reasonable compensation not exceeding the amount stipulated is award
25. ___________ days grace period is allowed for payment of a Cheque.
Correct : B. 3
26. A foreigner
Correct : A. is competent to enter into contract if he fulfills the conditions of section 11.
27. An agreement to sell is
Correct : A. an executory contract.
28. Cross offer does not constitute a contract because
Correct : A. there is no acceptance.
29. Whether a stipulation is a condition or a warranty depends on
Correct : A. the construction of the contract.
30. The communication of an acceptance is complete as against the acceptor
Correct : C. when it comes to the knowledge of the proposer.
31. A contractor had to supply the army charpoys in certain quantities by instalments. He failed to supply the requisite number and even after that breach the instalment of charpoys was received by army authorities. Meanwhile, the work orders were however cancelled. The orders cancelling the work order were
Correct : B. void
32. In a Book depot a catalogue of book enlisting the price of each book and specifying the
place where the particular book is available is
Correct : C. an invitation to visit the book shop.
33. Voluntary transfer of possession from one person to another is called as
Correct : B. Delivery
34. A valid consideration includes,
Correct : D. All of the above
35. The term ‘Unpaid Seller’ includes
Correct : C. Seller’s agent to whom the Bill of Lading is endors
36. In India, a person who is stranger to the consideration
Correct : A. can sue on the contract, if he is a party.
37. S sells certain goods to B of Bomba y. The goods are handed over to the ra ilways for transmission to B. In the meantime, B sells the goods to a third party T for consideration without the consent of S. B becomes insolvent. In this case—
Correct : C. Station Master has the right of stoppage in transit.
38. M is minor, B, the borrower, approaches M for a loan on the basis of a mortgage of the house owned by B. Hence, M advances the money and B executed a mortgage in favour of M, a minor. In these circumstances
Correct : C. the mortgage is enforceable by M even though he is minor.
39. “Threatening to commit certain acts forbidden by Indi an Penal Code” is asso ciated with
which one of the following?
Correct : C. Coercion
40. A contract to trade with an enemy is
Correct : C. an agreement opposed to public policy.
41. ________________ is a form of comb ination of buyers to prevent competition among
themselves at an auction sale.
Correct : A. Knock-out agreement
42. A, while filling up the insurance application form, states his age as 25 believing it to be true. His actual age was 27. The Life Insurance Corporation issued a policy in his favour charging a lower premium than what it should have charged if the actual age had been given. This is a case of
Correct : B. Misrepresentation
43. In a promissory note, the amount of money payable
Correct : A. must be certain.
44. R entered into a contract with L to marry her on a fixed date. However, before the marriage date, R went mad. With reference to the Indian Contract Act which is the valid response?
Correct : C. The contract becomes vo
45. The undertaking contained in a promissory note, to pay a certain sum of money is
Correct : B. unconditional.
46. A makes a contract with B to buy his house for ₹50,000 if he is able to secure to bank loan
for that amount. The contract is
Correct : C. contingent contract.
47. Ordinary damages will be awarded in cases where
Correct : A. the loss naturally flows from the breach of contract.
48. Which of the following statement is true in connection with Quasi-contract?
Correct : A. It is imposed by law.
49. A cheque is always payable on
Correct : B. demand.
50. Each party to a contract is bound to perform his part of the obligation. After the parties have made due performance, the contract comes to an end. In such a case the contract is said to be discharged
Correct : D. by performance of contract.
51. Right in rem implies:
Correct : A. A right available against the whole world
52. ‘Goods’ as defined in Sale of Goods Act will include
Correct : B. growing crops agreed to be severed before sale, old coins and copyrights.
53. Communication of acceptance is not necessary
Correct : D. All of the above
54. Merchantable quality of goods means
Correct : C. Both (A) and (B)
55. According to Indian Contract Act, a promise is
Correct : B. a proposal which has been accepted.
56. Contracts contingent upon the non-happening of the future uncertain event becomes void
when such event:
Correct : A. Happen
57. A telephonic acceptance is complete when the offer is
Correct : C. heard and understood by the offeror.
58. If a minor draws, endorses, delivers or negotiates an instrument, such instrument binds
Correct : C. all parties to the instrument except the minor.
59. What can a catalogue of books, listing price of each book and specifying the place where
the listed books are available be termed as?
Correct : C. An invitation to offer
60. Which of the statement is incorrect in connection with duties of seller and buyer?
Correct : C. It is not the duty of the seller to deliver the goods.
61. The inadequacy of consideration may be taken into account by the court
Correct : A. in determining the question whether the consent of the promisor was freely given.
62. A finder of goods can sell the goods if
Correct : D. the goods are perishable.
63. Where consideration is illegal or physically impossible, uncertain or ambiguous, it shall not be
Correct : C. enforceable by law.
64. There are __________________ modes of delivery.
Correct : A. three
65. The principle of Estoppel cannot be applied against a minor since
Correct : D. he has not attained the age of maturity.
66. The term “ a cheque in the ele ctronic form” is defined in the Negotiable Instruments Act, 1881-under
Correct : C. Explanation 1(a) of Section 6
67. Lending money to a borrower, at h igh rate of interest, when the mo ney market is tig ht renders the agreement of loan:
Correct : B. Valid
68. Where by the co ntract, a promisor is to perfor m his prom ise without application by the promise and no time for performance is specified, the engagement must be performed within a reasonable time. The question “What i s a reasonable time” is in e ach particular case is
Correct : D. All of the above
69. Unlawful agreements comprise
Correct : D. All the agreements mentioned above
70. In an auction sale, the property shall be sold to be
Correct : B. Highest bidder
71. A and B agree that A shall pay ₹1000 for which B shall afterwards deliver to either rice or
smuggled opium. In this case
Correct : C. the first is valid and the second is vo
72. When an Instrument is drawn conditionally or for a special purpose as a collateral security
and not for the purpose of transferring property therein, it is called an
Correct : A. Escrow Instrument
73. A purchases B’s business of selling neckties in Delhi. A can restrain B from
Correct : C. doing the business of selling neckties in Delhi for a limited peri
74. In case of contractual obligations where the promisor dies before performance,
Correct : B. the legal representatives of the promisor must perform the promise provided it is not one dependent on the personal qualifications of the promisor.
75. A borrows from B ₹500 to bet with C. Can B recover the amount of his loan?
Correct : D. No, the agreement falls under section 23 and hence illegal.
76. Asim unlawfully detains Anil to obtain his va cant flat at Safdarjang enclave (valuing 50,00,000) at 40,00,000. This is a case of
Correct : B. Coercion
77. A contract which ceases to be enforceable by law becomes
Correct : C. Void contract.
78. Mr. A promises to Mr. B without any intention of performing it. This is a case of
Correct : B. Fraud
79. An advertisement for sale of goods by auction. This is a case of
Correct : A. General offer
80. An offer comes to an end by
Correct : A. Revocation
81. A stranger to a contract can file
Correct : D. Cannot file a suit
82. Of the following who is competent to enter into a contract?
Correct : D. Sound mind
83. A minor can be appointed as agent.
Correct : B. Valid
84. Mr. A delivers a basket of mango to Mr. B mistaking him to be Mr. C and Mr. B consumes those mangos. Hence
Correct : A. Mr. B is bound to pay compensation to Mr. A for the value of Mango.
85. Agreement of which the consideration is inadequate is
Correct : C. Valid
86. Mr. A promises in writing to pay time barred debt to Mr. B. This is
Correct : B. Enforceable
87. When both the parties to an agreement are under a mistake as to matter of fact essential to an agreement, the agreement is
Correct : A. Valid
88. Mr. Ajit threatened to commit suicide if his wife did not execute sale deed in favour of his sister. Wife executed the sale deed. This is
Correct : B. Voidable
89. Under Sec. 2 (b) of the Indian Contract Act, 1872 if the person to whom the proposal is made signifies his assent thereto the proposal is said to have been
Correct : A. Accepted
90. An auction sale is complete on the
Correct : C. Fall of hammer
91. Seller can raise the price by fictitious bids in an auction sale with the help of
Correct : B. puffers
92. Mr. A obtained mobile set from Mr. B by fraud. Mr. A has a voidable title at the option of Mr. B. Before Mr. B could rescind the contract, Mr. A sold the same to Mr. C who purchased from Mr. A in good faith and without knowledge of fraud by Mr. A and paid for it. In this case.
Correct : A. Mr. C has a good title to the goods
93. Delivery of goods means
Correct : A. Voluntary transfer of possession
94. For a valid contract of sale, delivery may be
Correct : D. All of the above
95. Every instrument payable otherwise than on demand is entitled to_____days of grace period
Correct : B. 3
96. Inchoate instrument is
Correct : A. An instrument incomplete in some respect
97. Which of the following is not a Negotiable Instrument as per the Negotiable Instrument Act,
1881?
Correct : D. Share certificate
98. How many parties are involved in a bill of exchange?
Correct : B. 3
99. A void agreement is one
Correct : C. which is not enforceable by law
100. A contract is formed when the acceptor
Correct : A. has done something to signify his intention.