1. A and B agree to deal in smuggled goods and share the profits. A refuses to give B's share of profit. In this
case:
Correct : C. B has no remedy as the contract is illegal.
2. A and B agree that law of limitation shall not apply to them. A debt becomes time barred and A refuses to
pay the amount. Can B recover the amount under the terms of the agreement?
Correct : D. no, the agreement falls under section 23 ! and hence void
3. A borrows ` 5,000 from B to purchase a revolver to shoot C. Can B recover his loan of ` 5,000.
Correct : D. no, the agreement falls under section 23 and hence void
4. A borrows from B ` 500 to bet with C. Can B recover the amount of his loan?
Correct : D. no, the agreement is wagering agreement and falls under section 23 and hence void
5. 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
6. A person contracted to deliver a part of a specific crop of potatoes. The potatoes were destroyed by blight though no fault of the party. The contract is
Correct : C. Void due to frustration of contract
7. A contractor entered into an agreement with Government to construct a godown and received advance payments for the same. He did not complete the work and the Government terminated the contract.
Correct : D. Both (a)&(b)
8. A and B agree to deal in smuggled goods and share the profits. A refuses to give B's share of profit. In this case:
Correct : C. B has no remedy as the contract is illegal
9. A and B agree that law of limitation shall not apply to them. A debt becomes time barred and A refuses to
pay the amount. Can B recover the amount under the terms of the agreement?
Correct : D. No, the agreement falls under section 23 and hence illegal
10. A borrows ` 5,000 from B to purchase a revolver to shoot C. Can B recover his loan of ` 5,000, assuming
that B knows the purpose of the loan.
Correct : D. no, the agreement falls under section 23 and hence illegal
11. 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
12. 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 falls under section 23 and hence illegal
13. A makes a contract with B to buy B's horse if A survives C. This is
Correct : C. a Contingent contract
14. An insurance contract is
Correct : A. Contingent contract
15. If the contingent depends on the mere will of the promisor it would be-
Correct : B. Void
16. For a contingent contract the event must be:
Correct : D. Uncertain and collateral
17. Which of the following is a contingent contract:
Correct : B. A promises to pay B ` 10,000 if his scooter is stolen
18. A contract of life insurance, the performance of which depends upon a future event falls under the
category of
Correct : C. Contingent Contract
19. Which one of the following is not a characteristic of a contingent contract?
Correct : D. There must be reciprocal promises
20. Which one of the following is not an essential feature of a wagering agreement?
Correct : A. Insurable interest
21. Which of the following types of contracts are generally termed uberrimae fidei contracts? 1. Insurance contracts. 2. Contract for purchase of car. 3. Partnership contracts. 4. Quasi-contract.
Select the correct answer using the code given below:
Correct : A. 1,3 and 4
22. 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
23. Contingent contracts to do or not to do anything if a specified uncertain event does not happen within a
fixed time become
Correct : B. Valid, if before the time fixed, such event becomes impossible
24. Which of the following statements is true in connection with the contingent contract:
Correct : A. The collateral event is contingent
25. Which of the following statement is false in connection with the contingent contract:
Correct : D. None of the above
26. The contingent contract dependent on the happening of the future uncertain event can be enforced when such event:
Correct : A. Happens
27. Contract contingent upon the happening of a future uncertain event becomes void.
Correct : A. If the event becomes impossible
28. Contracts contingent upon the non-happening of the future uncertain event becomes void when such
event:-
Correct : A. Happen
29. Contract contingent upon the non-happening of the future uncertain event becomes enforce able
Correct : A. When the happening of that event becomes impossible and not before
30. A promises to pay B a sum of money if a certain ship does not return within a year. The ship is sunk within a year. The contract is
Correct : A. Enforceable
31. Contingent contract to do or not to do anything, if an impossible event happens are:-
Correct : B. Void
32. Contingent contract dependent on the non-happening of the event within a fixed time can be enforced,
if the event:-
Correct : C. Both (a) & (b)
33. In a contingent contract which event is contingent
Correct : B. Collateral event
34. The obligation of a finder of lost goods is laid down in:
Correct : A. Sec. 71 of the Contract Act
35. Secs. 68 to 72 of the Indian Contract Act deal with:
Correct : C. Certain relations resembling those created by contract
36. Under section 70 of the Indian Contract Act, 1872, if a person who enjoys the benefit of any other person's work, the beneficiary must pay to the benefactor for the services rendered, pro vided the intention of the benefactor was :
Correct : B. Non-gratuitous
37. A finder of goods can:
Correct : C. can sue for a reward, if any
38. A finder of goods can sell the goods if the cost of finding the true owner exceeds:
Correct : D. 2/3 of the value of the goods.
39. The phrase "Quantum Meruit" literally means
Correct : A. As much as earned
40. Liability of a person getting benefit under mistake has been described in the Indian Contract Act under:
Correct : D. Section 72
41. Quasi-contracts or implied contracts are exceptional kinds of contracts by which:
Correct : D. All of these
42. 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
43. Which one of the following conditions must be satisfied for making claim under 'Necessaries supplied to a
person incapable of contracting?'
Correct : D. Necessaries should be supplied only to person in competent to contract
44. A contract implied by law is known as:
Correct : B. Quasi-contract
45. The juridical basis of quasi-contractual obligation can be explained through the theory of:
Correct : B. Unjust enrichment
46. An implied contract is made:
Correct : C. By conduct of parties
47. Who is liable for necessaries supplied to a minor?
Correct : C. His property
48. Under the Indian Contract Act some persons have the duty similar to that of a bailee but under which of
the following sections:
Correct : C. Section 71
49. The contract uberrimae fidei means a contract
Correct : C. Of utmost good faith
50. The term 'quasi-contracts' is:
Correct : D. Conspicuous by its absence in the Indian Contract Act
51. Which of the following statement is true in connection with Quasi-contract.
Correct : A. It is imposed by law
52. Which of the following statements regarding Quasi-contracts is incorrect
Correct : D. It is voluntarily created
53. Which of the following transactions cannot be described as Quasi-contracts
Correct : D. Right to claim money if given under fraud or misrepresentation
54. Quasi-contracts are:
Correct : B. relations which create certain obligations resembling those created by a contract
55. A finder can sell the goods if:
Correct : D. the goods are perishable
56. Mr. Kamal was levied Sales Tax on his forward transactions in bullion, which he paid. The levy of this tax was declared ultra vires. Mr. Kamal demanded refund on the amount of Sales Tax on the ground that payment was under a mistake of law. Which of the following is correct?
Correct : C. Mr. Kamal will succeed
57. An insurance company paid money by mistake on a policy which had lapsed. Though the company was not ignorant of the fact of the lapse, this was overlooked at the time of payment. Can the company recover the amount?
Correct : B. The company can recover the amount
58. Where a party to a contract fails to perform at or before a specified time and it was the intention of the
parties that time should be of the essence
Correct : A. The contract becomes voidable
59. Contracts which need not be performed are spelt out in
Correct : C. Sees. 62-67 of the Contract Act
60. Reciprocal promises include
Correct : D. All of these
61. A contracts with B to construct a building for a fixed price, B supplying the necessary timber. This
reciprocal promise is
Correct : B. Mutual and Dependent
62. A contract of personal nature can be performed by
Correct : A. The promisor,
63. Liability of the joint promisor is
Correct : C. Joint and several
64. Where the order of performance is not fixed the contract will be performed as per
Correct : D. The nature of transactions
65. If neither the debtor nor the creditor appropriates the payment, the payment will be appropriated:
Correct : C. In order of time,
66. Agreement by way of wager are
Correct : B. Void
67. An offer of performance is known as
Correct : C. Tender
68. Which one of the following is correct about the essentials of a valid tender?
Correct : D. All of the above are correct
69. A, B and C jointly promise to pay D ` 3,000. D may compel
Correct : D. A, B and C jointly and separately to pay ` 3,000
70. A contract stands discharged :
Correct : D. All of these
71. Where by the contract, a promisor is to perform his promise without application by the promise and no time for performance is specified the engagement must be performed within a reasonable time. The question "What is a reason able time" is in each particular case is a :
Correct : D. All of these
72. When time is not the essence of contract:
Correct : B. It must be performed within a reasonable time
73. How many contracts are there in a contract of guarantee?
Correct : B. Three contracts
74. When a contract ceases to bind the parties to it, it is said to be :
Correct : A. Discharged
75. Each party to a contract is bound to perform his part of the obligation. After the parties have made due
performance of the contract comes to an end. In such a case the contract is said to be discharged :
Correct : D. By performance of contract
76. A, a singer enters into a contract with B, the manager of a theatre to sing at his theatre two nights in every week during the next two months and B engages to pay her `100 for each night's performance. On the sixth night, A willfully absents herself from the theatre.
Correct : A. B is at liberty to put an end to the contract
77. A and B contract to marry each other before the time fixed for the marriage. A goes mad. The contract
becomes:
Correct : A. Void
78. If a contract is based on personal skill or confidence of parties, the death of a party in such a case:
Correct : A. Puts an end to the contract
79. When the performance of a contract becomes impossible, the purpose which the parties had in mind is frustrated. If the purpose becomes impossible because of supervening event, the promisor is excused from the performance of the contract. This is known as :
Correct : A. The doctrine of frustration
80. If a person accepts a lesser sum of money than what was contracted for in discharge of the whole debt, it
is known as :
Correct : D. Remission
81. Are rights under a contract assignable?
Correct : A. Yes
82. Are rights under a contract assignable unless the contract is personal in its nature?
Correct : A. Yes
83. Is offer of performance discharge of obligation?
Correct : A. Yes
84. A modification or revocation of the contract requires a ……… of each contracting party.
Correct : B. Consensus
85. Essence of ……. lies not in the dissimilarity of the terms between the two contracts but in the intention of
the parties to supersede the old by the new.
Correct : C. Novation
86. A change of nature of obligation of a contract is known as:
Correct : C. Alteration
87. In case of conflict of jurisdiction of the courts, the incidence of a contract shall be governed by the law of
the place where the :
Correct : A. Contract is made
88. If the performance of contract becomes impossible because the subject matter of contract has ceased
to exist then :
Correct : B. Neither party is liable
89. A, B and C jointly promise to pay ` 3,000 to X. In the absence of express agreement to the contrary, X can
bring an action against:
Correct : D. Either (b) or (c)
90. Which of the following is not a exception to the rule that the agreement in restraint of trade is void :
Correct : D. The seller of goodwill of business can be prevented for carrying any kind of business at any place
91. A doctor teaching in a medical college prevented from doing private practice, such a restriction is:
Correct : A. Valid
92. Agreement is restraint of trade is void. The restraint mentioned here is :
Correct : C. (a) & (b)
93. A valid tender or offer of performance must be:
Correct : D. all the above
94. A contracts to sing for B for a consideration of ` 5,000 which amount is paid in advance. A becomes
unwell and is not able to perform. B suffers a loss of ` 10,000. A is liable to pay B
Correct : B. ` 10,000
95. 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
96. By a contract B agreed to take A's son in adoption and A to give B enjoyment of certain properties. A refused to give his son in adoption, he made the adoption impossible by performing the marriage of the boy.
Correct : C. As adoption was not complete, the contract is not enforceable
97. A promises to paint a picture for B by a certain day at a certain price. A dies before the promised day.
Which one of the following is the correct legal position
Correct : B. The agreement lapses for both the parties
98. A promises to deliver goods at B's warehouse on the 1st January. On that day, A brings the goods to B's
warehouse but after the usual hour for closing it and they are not received. Which one of the following is correct?
Correct : A. A has not kept his promise
99. 'A' promises to paint a picture for 'B' by a certain day at a certain price. 'A' dies before that day. In this
situation, the contract
Correct : A. Cannot be enforced as it becomes void due to personal incapacity
100. X, Y and Z are under a joint promise to pay ` 8,000 to W. Z is unable to pay anything and Y is compelled
to pay the entire amount. What amount can Y successfully claim from X?
Correct : B. Y can claim ` 4,000 from X by way of contribution