1. A catalogue of the goods of a company for sale ….. a series of offers but only an invitation for offers.
Correct : B. Is not
2. Is telegraphing lowest price on request a mere invitation for an offer?
Correct : A. Yes
3. Is the Is promise defined under clause ………the same thing as an agreement which is defined under
clause (e) of section 2
Correct : B. ; (c)
4. After a proposal has been accepted and there is promise, can the promisor resile from the promise?
Correct : B. No
5. Can there be an acceptance of an offer which has not come to the knowledge of the offeree?
Correct : B. No
6. Can the mere writing on bills of medical practitioners that interest at one per cent, per mensum be
charged, amount to a contract?
Correct : B. No
7. Can a mere mental resolve to make an offer unless such intention is also communicated to the other party
has agreed to make such statement?
Correct : B. No
8. In the absence of any express or implied directions from the offeror to the contrary, can an offer be
accepted by a letter?
Correct : A. Yes
9. Should both offer and acceptance be absolute, unqualified and unconditional?
Correct : B. No
10. Can a letter of acceptance to a Proposer, not correctly addressed, although posted, be said to have been
"Put in a course of transaction" to him?
Correct : B. No
11. After a transaction has ripened into a contract, does it require the consent of both parties to revoke or
modify it?
Correct : A. Yes
12. An offer does not lapse if the
Correct : C. Acceptance is made by the offeree in ignorance of the death of the offeror
13. A telephonic acceptance is complete when the offer is
Correct : C. heard and understood by the offeror
14. When goods are displayed in a show-window bearing price-tags, it indicates
Correct : B. an invitation to make an offer
15. Which one of the following statements about a valid acceptance of an offer is NOT correct?
Correct : D. Acceptance should in all cases be through registered post
16. A counter offer is
Correct : C. A rejection of the original offer
17. Consider the following statements: 1. There is no difference between the English law and Indian law with regard to acceptance through post. 2. Both under the English law and the Indian law a contract is concluded when the letter of acceptance is posted 3. Under the Indian law when the letter of acceptance is posted it is complete only as against the proposer. 4. It is complete only as against the proposer.
Which of the above statements is/are correct?
Correct : C. 3 alone
18. For binding contract both the parties to the contract must
Correct : C. Agree upon the same thing in the same sense
19. Where a particular mode of communication of acceptance is not prescribed and the parties are not in
each other's presence, the most authentic mode of communication of acceptance is the
Correct : D. Letter
20. When a person without expressing his final willingness, proposes certain terms on which he is willing to
negotiate, he makes
Correct : D. Invitation to treat
21. The communication of acceptance through telephone is regarded as complete when
Correct : B. Acceptance comes to the knowledge of party proposing
22. The term consensus ad-idem means
Correct : C. Meeting of minds
23. Which one of the following has the correct sequence?
Correct : B. Offer, acceptance, consideration, contract
24. When a person signifies his assent to a proposal made to him to refrain from doing something, the resultant
transaction is known as
Correct : A. Promise
25. A notice in the newspapers inviting tenders is
Correct : B. An invitation to proposal
26. Which one of the following statements is true?
Correct : C. An offer can be revoked but acceptance cannot
27. The doctrine of privity of contract is laid down in the case of
Correct : D. Dunlop Pneumatic Tyre Co. Ltd. v. Self ridge & Co.
28. Which one of the following is not the legal requirement of valid offer?
Correct : C. It must be made to a specific person and not to public at large
29. Sections 4 and 5 of the Indian Contract Act provide for communication of offer and acceptance and
revocation thereof. In this relation, which one of the following is not correct?
Correct : D. Acceptance may be revoked any time before communication of acceptance
30. 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
31. Consider the following statements: 1. General offer require the communication of acceptance. 2. All contracts are agreements 3. All agreements are contracts 4. All illegal agreements are void agreements Which of the statements given above are correct?
Correct : A. 2 and 4
32. Consideration is
Correct : D. All the above
33. If there is no consideration, then
Correct : A. The agreement is void
34. Consideration must be
Correct : D. Something
35. Which section of Indian Contract Act defines consideration?
Correct : D. Section 2(d)
36. A valid consideration includes,
Correct : D. All of these
37. A valid consideration has the following essential elements :
Correct : D. All the above
38. Consideration contemplated under Indian law is,
Correct : C. Past, present or future consideration
39. An agreement without consideration is void under
Correct : D. None of the above clauses in sec. 25
40. The exceptions to the doctrine of Privity of Contract include
Correct : D. All of these
41. The latin term "quid pro quo" refers to :
Correct : A. Something in return
42. A stranger to a consideration can file a suit and such a stranger is
Correct : D. A person who is a party to the contract but not given consideration
43. Consideration must move at the desire of:
Correct : A. Promisor
44. Consideration may be given by
Correct : D. The promisee or any other person
45. A promise to pay a time-barred debt must be :
Correct : B. Written and signed
46. Which are of the following statements is false.
Correct : D. Consideration should be adequate
47. Which of the following statements is not true
Correct : C. Past consideration is no consideration
48. The exceptions to the rule A stranger to a con tract cannot sue are
Correct : D. All the above
49. A stranger to a consideration
Correct : A. Can file a suit
50. A stranger to a contract
Correct : D. Cannot file a suit
51. 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
52. Consideration in a contract:
Correct : D. May be past, present and future
53. An agreement not supported by consideration is called:
Correct : D. Nudum Pactum
54. Which one of the following is the correct statement:
Correct : B. Stranger to consideration can file a suit
55. 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
56. Past consideration means
Correct : C. A past act done before the promise is made
57. An agreement without consideration is void except in case of compensation for
Correct : A. Voluntary services rendered
58. A contract without consideration is void. There are exceptions. Which one of the following exceptions is
correct?
Correct : C. Promise to pay time-barred debt which is in writing and signed ; (d)
59. Which one of the following statements is incorrect with regard to nature of a valid consideration?
Correct : A. Consideration must be adequate
60. Which one of the following statements about the doctrine of privity is correct?
Correct : D. Both (a)&(b)
61. 'Consideration is the price for which the promise of the other is bought, and the promise thus given for the
value is enforceable.' This definition of consideration is
Correct : A. By Pollock
62. When 'at the desire of the promisor, the promisee or any other person has done or abstained from doing or
does or abstain from doing some thing'- such act or abstinence or promise is called
Correct : C. Consideration
63. An agreement without consideration is
Correct : A. Void
64. In India, a person who is stranger to the consideration
Correct : A. Can sue on the contract, if he is a party
65. When one of the parties to the contract has performed its part of the promise which constitutes the
consideration for the promise by the other side, it is known as
Correct : B. Executed consideration
66. Which of the following statement regarding past consideration is incorrect
Correct : C. It is done with the making of the contract
67. Past consideration means
Correct : C. Consideration is provided prior to the making of the contract
68. An executed consideration is
Correct : A. An act of mutual exchange of promises
69. An executory consideration is
Correct : D. Both (b)&(c)
70. 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
71. P renders some service to D at D's desire. After a month D promises to compensate P for the service
rendered to him, it is a
Correct : B. Past consideration
72. Where consideration is illegal or physically impossible, uncertain or ambiguous, it shall not be
Correct : C. Enforceable by law
73. Which section of Indian Contract Act declares that an agreement made without consideration is void?
Correct : C. Section 25
74. A promise not supported by consideration is called a
Correct : D. Nudum pactum
75. A promise to pay a time-barred debt must be
Correct : B. Written and signed
76. Which of the following statement is incorrect
Correct : D. Agreements without consideration are always void
77. A promise to pay a time barred debt is enforceable, if some conditions are fulfilled. Which of the following conditions is not required?
Correct : D. It must be registered
78. A man cannot acquire rights under a contract to which he is not a party. Which one of the following is not
an exception to this rule
Correct : C. Gift
79. A person is competent to contract if:
Correct : C. He fulfills the conditions of sec. 11
80. Capacity to contract has been defined in
Correct : B. Section 11
81. Which of the following is not competent to contract?
Correct : D. All of these
82. Two persons have the capacity to contract
Correct : D. All of the above
83. For necessaries supplied to a minor
Correct : C. his estate is liable
84. A minor is a person who has not attained the age of:
Correct : B. 18 years
85. An agreement with a minor is:
Correct : A. Void
86. A contract for the benefit of the minor is :
Correct : A. Valid
87. A married woman is under no disability as regards capacity to contract
Correct : C. under both English and Indian laws
88. An agreement entered into by a minor is
Correct : C. Void ab initio
89. A minor enters into agreement representing himself to be a major consider the following statement: 1. Minor commits fraud if the other party does not have personal knowledge of his age 2. Such agreement is not enforceable 3. The doctrine of estoppel does not apply in minor's case 4. Other party is entitled to get back the benefit passed to minor, if innocent about his age
Which of the statements given above are correct?
Correct : B. 2 and 3
90. M is a 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
91. When a minor has been supplied with necessaries in credit
Correct : B. The minor's property' is liable
92. A supplies B, a lunatic, with necessaries suitable to his condition in life. A is:
Correct : B. Entitled to be reimbursed from B's property
93. When a person incurred expenses of ` 5000 for the necessaries supplied to the minor, he can recover the
said amount from the
Correct : B. Property of the minor
94. The principle of Estoppel cannot be applied against a minor since
Correct : D. He has not attained the age of maturity
95. A convict when undergoing imprisonment
Correct : B. Is incapable of entering into a contract
96. A person who is not an Indian citizen is an Alien. Contracts with an alien friend, subject to certain
restrictions are
Correct : C. Valid
97. A minor's agreement is void. This was held in case of
Correct : A. Mohori Bibee v. Dharmodas Ghosh
98. A mortgage executed by minor is……………
Correct : A. Void
99. Is a pronote executed in favour of a minor good in law?
Correct : A. Yes
100. Is purchase of property for the benefit of a minor by his maternal uncle valid?