2. An agreement & contract are one and same thing.
Correct : B. False
3. The source of the law of contract is
Correct : D. All the above
4. Law of contract
Correct : C. Deals with only such legal obligation which arise from agreement
5. Social agreements are
Correct : B. Not enforceable in the courts
6. All contracts
Correct : A. Are agreements
7. Mercantile Law
Correct : B. Is applicable to everybody
8. A contract consist of
Correct : A. Mutual promises or agreement enforceable by law
9. An agreement to create legal liability
Correct : C. Is enforceable by law
10. Obligation between parties that form contract
Correct : B. Are legal obligation which spring from agreements
11. A contract means an agreement
Correct : A. Which is enforceable by law
12. A contract or an obligation to perform a promise could arise in the following ways
Correct : A. By agreement and contract
13. The Indian Contract law is based on
Correct : A. English law
14. Section 2(b) defines, "When the person to whom the proposal is made, signifies his assent thereto, the
proposal is said to be accepted. A proposal when accepted becomes a/an
Correct : C. Promise
15. When the consent of a party to a contract has been obtained by undue influence, fraud or
misrepresentation, the contract is
Correct : B. Voidable
16. All contracts
Correct : D. none of the above
17. A foreigner
Correct : A. is competent to enter into contract if he fulfils the conditions of section 11.
18. Voidable contract
Correct : A. are enforceable by law if they are not avoided
19. The terms of agreement
Correct : D. all the above
20. A contract is a contract
Correct : A. from the time it is made
21. In an executed contract
Correct : C. both the parties have fulfilled their promises
22. All illegal agreements
Correct : C. are void
23. A void agreement
Correct : C. may or may not be illegal
24. All kinds of obligations between the parties form part of the contract. This statement is
Correct : B. False
25. A contract is made where:
Correct : A. A buys a book from a shop
26. Right in rem implies:
Correct : A. a right available against the whole world
27. A void contract
Correct : B. is valid in the beginning but becomes void later on
28. A void agreement is one
Correct : C. which is not enforceable by law
29. An agreement created by words spoken or written is called
Correct : A. express agreement
30. An agreement consists of reciprocal promises between the
Correct : D. Two parties
31. Which of the following statements is false
Correct : A. Law of contract is the whole law of obligations
32. Parol contracts are also know as
Correct : A. Simple Contract
33. Which of the following contracts are not recognized by Indian Contract Act, 1872?
Correct : D. All the above
34. Which of the following statements is false in respect of formal contract?
Correct : C. It should have consideration
35. Under the English law which of the following are recognized as formal contract
Correct : D. Both (a) and (b)
36. An offer made by words spoken or written is called:
Correct : B. Express offer
37. Partial acceptance of offer result in
Correct : A. counter offer
38. A tender is
Correct : A. an offer
39. Acceptance is to offer what a lighted match is to a train of gun powder. This statement indicates
Correct : A. Once an offer is accepted it results in binding contract
40. An offer comes to an end by
Correct : C. revocation
41. Death or insanity of the proposer will revoke the proposal
Correct : B. If the fact of the death or insanity is known to the offeree
42. An offer stands revoked
Correct : D. All the above
43. Cross offer do not constitute a contract because
Correct : A. there is no acceptance
44. A proposal can be revoked
Correct : A. Before posting of letter of acceptance by the acceptor
45. Communication of acceptance is not necessary
Correct : D. All the above
46. When counter offer is given, the original offer
Correct : A. Lapses
47. A counter offer proposing different terms and conditions
Correct : B. Amount to rejection of the offer
48. Which of the following statements is false?
Correct : A. A response to invitation to treat lead to an agreement
49. When the promisee does not accept the offer of performance, the promisor is not responsible for nonperformance
Correct : A. True
50. For an acceptance to be valid, it must be
Correct : B. Absolute & unqualified
51. Acceptance takes place as against the proposer, when
Correct : A. When the letter of acceptance is posted by the acceptor
52. An advertisement for sale goods by auction
Correct : A. Amounts to an invitation to offer
53. Communication of offer is complete when
Correct : A. It comes to the knowledge of the offeree
54. Performance of conditions of a proposal is an acceptance to the proposal
Correct : A. True
55. An acceptance will be revoked at any time before the communication of acceptance is complete against
the acceptor, but not afterwards
Correct : A. True
56. An offer need not be made to a ascertained person
Correct : D. Either (a) or (c)
57. An agreement to agree in future upon terms to be settled afterwards between the parties is
Correct : B. Not valid
58. Acceptance once given cannot be revoked
Correct : A. True
59. A tender and a bid at an auction sale are
Correct : B. Offers
60. A quotation is
Correct : D. Invitation to offer
61. A contract is formed when the acceptor
Correct : A. has done something to signify his intention
62. If the offeree does not accept the offer according to the mode prescribed, then
Correct : A. The offeror may accept or reject such acceptance
63. When the mode of acceptance is prescribed in the proposal then
Correct : B. It should be accepted in that manner
64. A proposal when accepted becomes a
Correct : A. Promise
65. Acceptance takes place when and where the message is received
Correct : A. True
66. Mental acceptance is
Correct : A. No acceptance at all
67. The term 'proposal' used in the Indian Contract Act is synonymous with the term
Correct : B. Offer
68. The term 'Proposal or offer' has been defined in section
Correct : A. Section 2(a)
69. A bid at an auction sale is
Correct : B. An express offer to buy
70. A price list hanging outside the shop is meant for
Correct : B. An advertisement of goods and meaningless from legal point of view
71. The communication of a proposal is complete when it comes to
Correct : A. The knowledge of that person
72. 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
73. General offers open for world at large can be accepted by
Correct : A. Any person in the world
74. When the proposal or acceptance is made other wise than words, the promise is said to be
Correct : B. Implied
75. In order to convert a proposal into a promise, the acceptance must
Correct : D. Be absolute and unqualified
76. The communication of an acceptance is com plete as against the acceptor
Correct : C. When it comes to the knowledge of the proposer
77. If the communication is made by an unauthorised person, it does not result in a/an
Correct : B. Agreement
78. Which section, of Indian Contract Act defines "performance of the conditions of a proposal is an
acceptance of the proposal"?
Correct : C. Section 8
79. Various modes of revocation of offer have been described in
Correct : C. Section 6
80. Which section of Law of Contract defines, "A proposal may be revoked at anytime, before the
communication of its acceptance is complete as against the proposer, but not afterwards."
Correct : A. Section 5
81. According to Indian Contract Act, a promise is
Correct : B. A proposal which has been accepted
82. When parties enter into a contract on telephone the contract becomes complete at the place where
acceptance is heard by the proposer. This has been provided
Correct : A. In no section of Indian Contract Act but so decided by the Supreme Court
83. An advertisement inviting tender is
Correct : C. An invitation for proposal
84. Goods displayed in a shop window with a price label will amount to
Correct : B. Invitation to offer
85. A promisee is
Correct : C. A person to whom the promise is made
86. The person making the proposal is called
Correct : A. Promisor
87. A mere passing utterance will
Correct : B. Not amount to a proposal
88. Which of the following is an invitation for offer?
Correct : D. A catalogue of goods for sale
89. Which of the following is an offer?
Correct : D. Bids in an auction sale
90. Acceptance in ignorance of the offer is
Correct : B. Invalid
91. An offer or its acceptance or both may be made
Correct : C. Either by words or by conduct
92. When a proposal and its acceptance are made by words, they are known as
Correct : A. Expressed
93. In cases, where a proposal and its acceptance are not made by words and are inferred from the conduct
of the parties. They are known as
Correct : A. Implied offers
94. 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)&(c)
95. An offer which is allowed to remain offer for acceptance over a period of time is known as a
Correct : A. Standing offer
96. Voidable contract is one
Correct : C. Which is valid so long it is not avoided by the party entitled to do so
97. A contract is said to be executed when it has been performed wholly on
Correct : B. Two sides
98. When the contract is perfectly valid in its substance but which cannot be enforced because of certain
technical defects. This is called a
Correct : C. Unenforceable contract
99. The difference between an advertisement for sale and a proposal is
Correct : B. That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not
100. 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