1. Express offers and acceptances may be proved by the agreement between the parties but implied offers can be proved only by
Correct : D. both (B) and (C)
2. Sections 4 and 5 of the Ind ian Contract Act provide for c ommunication of offer and acceptance and revocation thereof. In this relation, which one of the fo llowing is not correct?
Correct : D. Acceptance may be revoked any time before communication of acceptance.
3. Consider the following statements: Consideration is 1. A motive for any promise 2. A price for any promise 3. Only a moral obligation 4. Something of value in the eye of law of these statements.
Correct : C. 2 and 4 are correct
4. Two persons have the capacity to contract
Correct : D. All of the above
5. Which of the following types of persons are not disqualified from contracting?
Correct : D. None of the above
6. A agrees to sell to B a “hundred tons of oil”. There is nothing whatever to show what kind of
oil was intended. The agreement is
Correct : B. void for uncertainty
7. A promised B to obtain an employment for him in a public office. B promised to pay 2,000 to A for this. B gets a job through A but refuses to pay the money. A can
Correct : C. do nothing
8. Which one of the following is not a characteristics of a contingent contract?
Correct : D. there must be reciprocal promises
9. A gives a recognizance binding him in a penalty of 500 to appear in the court on a certain
day. He forfeits his recognizance. He is
Correct : A. liable to pay the whole penalty.
10. Agreement by way of wager are
Correct : B. void
11. A valid tender or offer of performance must be
Correct : D. all of the above
12. A, dealing in baby foods, sends samples by train for being exhibited at a Consumer Product’s Show which fact was made known to the railway company. The goods reached the destination after the show was over. A sued the railway company for damages. A will be entitled to
Correct : D. special damages
13. Goods means
Correct : A. every kind of movable property other than actionable claims and money.
14. Future Goods
Correct : A. can be the subject matter of sale.
15. The doctrine of Caveat emptor is not applicable
Correct : C. where the seller is guilty of fraud
16. “Nemo dat quad non habet”, means
Correct : B. none can give who does not himself posses.
17. Unpaid seller can exercise his right of withholding delivery of goods
Correct : A. even when property in goods has passed to the buyer
18. Where the s ale is n ot notified to be su bject to a right to bid on behalf of seller, and the Auctioneer knowingly takes any bid from the seller or any such person, the sale shall be treated as ____________ by the buyer.
Correct : D. fraudulent
19. When a cheque is payable across the counter of a bank it is called
Correct : B. Open cheque
20. Law of Contract
Correct : C. deals with only such legal obligation which arise from agreement.
21. For an acceptance to be valid, it must be
Correct : B. absolute and unqualified
22. If the communication is made by an unauthorized person, it does not result in a/an
Correct : B. Agreement
23. An offer does not lapse if the
Correct : C. acceptance is made by the offeree in ignorance of the death of the offeror.
24. An agreement without consideration is void under
Correct : D. None of the above clauses in Sec. 25
25. An agreement without consideration is void except in case of compensation for
Correct : A. voluntary services rendered
26. Which of the following is not competent to contract?
Correct : D. all of the above
27. ‘Active Concealment of fact’ is associated with which one of the following?
Correct : C. Fraud
28. The validity of contract is not affected by
Correct : B. Mistake of Indian Law
29. A promises B to pay 100 if it rains on Monday and B promises A to pay 100 if it does not
rain on Monday. This agreement is
Correct : C. a wagering agreement
30. A borrows from B 500 to bet with C. Can B recover the amount of his loan?
Correct : D. No, the a greement is wagering agreement and falls under Section 23 and hence void.
31. Which of the following statements is true in connection with the contingent contract?
Correct : A. The collateral event is contingent
32. Quasi-Contracts are
Correct : B. relations which create certain obligations resembling those created by a contract
33. If the performance of contract becomes impossible because the subject matter of contract
has ceased to exist then
Correct : B. neither party is liable
34. A valid contract of sale
Correct : A. includes ‘an agreement to sell’
35. Transfer of documents of title to the goods sold to the buyer, amounts to
Correct : B. Symbolic delivery
36. Right of Stoppage in transit can be exercised by the Unpaid Seller, where he
Correct : B. still enjoys his right of lien
37. The Sale of Goods Act, 1930 governs the transfer of property in
Correct : A. movable property
38. Property in the goods in the Sale of Goods Act, 1930 means
Correct : A. Ownership of goods
39. Right of Stoppage in transit may be exercised by the Unpaid Seller, by
Correct : C. Either (a) or (b)
40. The term ‘Negotiable Instrument’ is defined in the Negotiable Instruments Act, 1881, under
Section.
Correct : B. 13
41. The Negotiable Instruments Act 1881 came into force on