1. The test of……….. is whether the person is capable of understanding the business concerned and its
implications.
Correct : C. Soundness of mind
2. ……..is the most extreme form of mental unsoundness?
Correct : D. Idiocy
3. The onus of proving insanity is on the …………….
Correct : D. On person who alleges it
4. Which of the following statement is incorrect:
Correct : C. A parda-nashin women is of unsound mind
5. M, a minor, misrepresenting that he is a major induces Z to enter into a contract
Correct : B. M is a not liable on the contract
6. Select the false statement
Correct : B. Restitution of benefit is allowed in case of a minor
7. Which of the following types of persons are not disqualified from contracting?
Correct : D. None
8. Which of the following person do not fall under the category of persons of unsound mind?
Correct : D. Blind Person
9. If there is no consent the agreement is:
Correct : A. Void
10. If consent in not free due to coercion, undue influence, fraud, and misrepresentation then the agreement is:
Correct : B. Voidable
11. If the agreement is made by obtaining consent by doing an act forbidden by the Indian Penal Code, the
agreement would be caused by:
Correct : A. Coercion
12. A buys an article thinking that it is worth ` 100 when in fact it is worth only ` 50. There has been no
misrepresentation on the part of the seller. The contract is:
Correct : A. Valid
13. Where a person is in a position to dominate the will of another person and uses that position to obtain on
unfair advantage it is called:
Correct : C. Undue influence
14. An agreement caused by unilateral mistake of fact is:
Correct : D. Valid
15. Unlawfully detaining or threatening to detain any property, to the prejudice of any person making him to
enter into an agreement amounts to:
Correct : B. Coercion
16. An agreement made under mistake of fact, by both the parties, forming the essential subject matter of
the agreement is:
Correct : A. Void
17. "Threatening to commit certain acts forbidden by Indian Penal Code" is associated with which one of the
following?
Correct : C. Coercion
18. "Active concealment of fact" is associated with which one of the following?
Correct : C. Fraud
19. Lending money to a borrower, at high rate of interest, when the money market is tight renders the
agreement of loan:
Correct : B. Valid
20. When a person, who is in dominating position, obtains the consent of the other by exercising his influence
on the other, the consent is said to be obtained by:
Correct : D. Undue influence
21. An officer enters into a contract with his subordinate to sell his (subordinate's) house at a lower price than the market price. The subordinate may challenge the contract on the ground of
Correct : B. Undue influence
22. With regard to the contractual capacity of a person of unsound mind, which one of the following statements is most appropriate?
Correct : C. A person who is usually of unsound mind can contract when he is, at the time of entering into a contract, of sound mind
23. While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to
speak about the material facts, amounts to consent obtained by:
Correct : D. Fraud
24. 'A' threatened to commit suicide if his wife did not execute a sale deed in favour of this brother. The wife
executed the sale deed. This transaction is:
Correct : B. Voidable due to coercion
25. A contract which is vitiated by undue influence is declared as which one of the following by the Indian
Contract Act?
Correct : D. Voidable
26. Consider the following: 1. Active concealment of fact. 2. Promise made without any intention of performing it. 3. Breach of duty which gains an advantage to the person committing it. 4. Inducing mistake as to subject matter. Which of the above amount to fraud?
Correct : A. 1 and 2
27. Coercion is defined in which section of the Indian Contract Act?
Correct : A. Section 15
28. A threatens to shoot B, if B does not agree to sell his property to A at a stated price. B's consent in this
case has been obtained by
Correct : C. Coercion
29. What does Section 17 of the Indian Contract Act define?
Correct : C. Fraud
30. If A unlawfully detains B's son in order to coerce B to enter into the agreement, the case would be
covered within:
Correct : C. Section 15
31. Factors vitiating consent are:
Correct : D. All of these
32. A master asks his servant to sell his cycle to him at less than the market price. This contract can be
avoided by the servant on grounds of:
Correct : B. Undue influence
33. When the consent of a party to the contract has been obtained by fraud, in such a case the contract is:
Correct : B. Voidable
34. A, intending to deceive B, falsely represents that five hundred mounds of Indigo are made annually at A's
factory and, thereby, induces B to buy the factory. The contract is
Correct : A. Voidable
35. If A sells, by auction to B a horse which A knows to be unsound and A says nothing to B about the horse's
unsoundness, this amounts to:
Correct : B. Not fraud
36. When there is duty to speak, keeping silence is:
Correct : A. Fraud
37. Silence is fraud when silence is, in itself equivalent to speech. This statement is:
Correct : A. True
38. When the person making a false statement believes the statement to be true and does not intend to
mislead the other party to the contract it is known as:
Correct : B. Misrepresentation
39. Misrepresentation means:
Correct : D. All the above
40. If a party stands in a fiduciary relation to the other:
Correct : B. He can dominate the will of another
41. A person is deemed to be in a position to dominate the will of another if he:
Correct : C. Both (a) and (b)
42. If both the parties to a contract believe in the existence of a subject, which infact does not exist, the
agreement would be
Correct : B. Void
43. For a valid contract
Correct : C. Both (a) and (b)
44. When both the parties to an agreement are under a mistake as to a matter of fact essential to an
agreement, the agreement is:
Correct : A. Void
45. In Indian Contract Act, the term consensus ad idem means
Correct : C. Parties agreeing upon the same thing in same sense
46. To prove undue influence, the plaintiff has to prove that:
Correct : C. Both (a) and (b)
47. The validity of contract is not affected by
Correct : B. Mistake of Indian law
48. Error in causa means:
Correct : B. Absence of free consent
49. Error in consensus means:
Correct : A. Absence of consent
50. Unlawful agreements comprise
Correct : A. Illegal agreements
51. The period of limitation for simple contract in India is
Correct : B. 3 years
52. The exceptions to the rule that an agreement in restraint of trade is void, are contained in
Correct : C. Both the above mentioned provisions of the Contract Act & Partnership Act respectively
53. A contract to trade with an enemy is
Correct : C. an agreement opposed to public policy
54. An agreement to share the emoluments of a public office is
Correct : A. Void
55. An agreement, the object of which is to procure a public post, is
Correct : A. Void
56. Under which section of Indian Contract Act, agreements of wager are void?
Correct : C. Section 30
57. An agreement in restraint of parental rights is
Correct : A. Void
58. An agreement will be unlawful if:
Correct : D. The object is forbidden by law
59. An agreement in restraint of marriage is:
Correct : B. Void
60. An agreement in restraint of trade is:
Correct : C. Void
61. A wagering agreement is:
Correct : B. Void
62. A contract of insurance is a :
Correct : D. Contingent contract
63. In a wagering agreement:
Correct : D. One party wins and the other looses
64. Which one of the following statements is correct?
Correct : D. Illegal agreements are always void
65. Which one of the following is not a wagering agreement?
Correct : D. A contract of insurance
66. A wagering agreement in India is declared by the Contract Act as
Correct : B. Void but not illegal
67. Which one of the following is a void agreement?
Correct : D. All of the above
68. Agreement to do an impossible act has been declared
Correct : A. Void
69. Agreement in restraint of marriage has been defined in
Correct : D. Section 26
70. An agreement which restricts a person's freedom to marry or to marry any person of his choice is against public policy and is
Correct : C. Void
71. An agreement of service under which an employee agrees that he will serve a particular employer for a certain duration and that he will not serve anybody else during that period, is a
Correct : A. Valid agreement
72. If the seller agrees to supply all the goods produced by him to a certain buyer and to nobody else, and the buyer also, in turn undertakes to accept the whole of the quantity, the agreement is
Correct : D. None of these
73. Section 28 of the Indian Contract Act, speaks about
Correct : A. Agreement in restraint of legal proceedings
74. Ambiguous and uncertain agreements are defined in
Correct : D. Section 29
75. If an agreement suffers from any uncertainty, it is
Correct : B. Void
76. If the contract is impossible in itself physically or legally the agreement is
Correct : C. Void ab initio
77. If the consideration or object of an agreement is regarded by the court to be immoral or opposed to
public policy. The agreement is
Correct : A. Void
78. M, who is a dealer in mustard oil only, agrees to sell to N '500 litres of oil'. This agreement is
Correct : A. Valid contract
79. A and B agree that A shall pay ` 1000 for which B shall afterwards deliver to an either rice or smuggled
opium. In this case
Correct : C. The first is valid and the second is void
80. 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
81. A agrees to sell to B 'my white horse for `500 or ` 1,000'. There is nothing to show which of the two prices
was to be given. The agreement is
Correct : B. Void
82. Agreements between a husband and wife living in friendly environment are
Correct : C. Domestic arrangements
83. A promised to marry none else than Miss B and in default to pay her a sum of ` 1,000. Subsequently A
married Miss C and Miss B sued for recovery of ` 1,000. The contract is
Correct : B. Void
84. 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
85. P engages B to kill C and borrows ` 100 from D to pay B. If D is aware of the purpose of the loan, the
transaction is
Correct : C. Illegal
86. A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to
start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is
Correct : A. Valid
87. 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
88. 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 ignorance B is enabled to buy the estate at a low- price. The contract is
Correct : C. Voidable at the option of A
89. B let a cabin on hire to P a prostitute, knowing that it would be used for immoral purposes. The agreement is
Correct : D. Void
90. A enters into an agreement with B who has robbed A of `10,000 to drop prosecution against him (B) in
consideration of B's returning ` 8,000. Afterwards B refused to pay. A can get from B
Correct : C. Nothing
91. A agrees with B to discover treasure by magic for a consideration of ` 500. This is
Correct : A. A void agreement
92. X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall
not start the business of a tailor. This restraint is
Correct : A. Void
93. X leaves a firm doing a particular business in Delhi. He agrees with other partners of the firm not to start a
similar business as that of the firm in Delhi for 2 yea` This agreement is
Correct : B. Valid
94. X promises to supply Y one tola of gold brought from the sun. This is
Correct : C. a void agreement
95. A promises B not to carry on a similar business as that of B if B pays him a certain amount. B pays the
money but A continues to carry on the business. B can
Correct : A. Do nothing
96. 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 period
97. A promised to marry B and none else and promised her to pay a sum of `5000 in addition to what he gets
from the other party if he marries someone else. A marries C and gets ` 10,000 from C. B can get from A
Correct : C. Nothing
98. 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
99. A, a Hindu already married with a living wife B, enters into a marriage agreement with a widow of 30 years
of age. This agreement is
Correct : D. Void, because of being forbidden by law
100. Rajeev entered into a contract with Lata to marry her on a fixed date. However, before the marriage date. Rajeev went mad. With reference to the Indian Contract Act which is the valid response?