1. A borrowed ` 1,000 from B. A dies before paying back the loan. Can B recover the amount from A's legal representative?
Correct : B. Yes, subject to any estate left by him
2. An anticipatory repudiation has the effect of
Correct : B. Putting an end to the contract only on acceptance of the repudiation by the other party
3. The law regarding Novation, i.e., where a new contract is substituted in place of the old one by means of
an agreement between the parties to a contract or between them and a third party, is contained in
Correct : A. Sec. 62
4. Ordinary damages will be awarded in cases where
Correct : A. The loss naturally flows from the breach of contract
5. The law relating to damages is spelt out in -------- of the contract Act.
Correct : B. Sec. 73
6. Where the parties to a contract have agreed that a certain sum of money would be paid in case of
breach of contract, the Court will ensure that
Correct : C. Reasonable compensation not exceeding the amount stipulated is awarded
7. 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 rail way 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
8. A stipulation in a contract in the nature of penalty is
Correct : D. none of these
9. Stipulations in a contract providing for enhanced rate of interest from date of default of payment of
principal or compound interest are considered to be in the nature of
Correct : B. Penalty
10. The word 'impossible' in section 56 connotes
Correct : D. Impracticability of performance
11. A and B contract to marry each other. Before the time fixed for the marriage A goes mad. The contract is
Correct : B. Void
12. A agrees to pay `5,000 for each article written by B, a famous author and the contract was for writing 10 articles in a year. B wrote 4 articles and A did not want him to write the other 6 articles for which B has prepared notes. In this case :
Correct : D. B can claim `20,000 for 4 articles published (4 X 5000) and compensation for preparation of notes on
13. Unliquidated damages connote
Correct : D. All of these
14. In the case of wrongful dishonour of a cheque by a banker the damages awarded will be
Correct : C. Exemplary
15. If loss or damage arose naturally and directly in the usual course of things from a breach of contract, the
aggrieved party would be eligible for
Correct : C. Ordinary damages
16. Where there is an infringement of a contractual right, but no actual loss has been suffered, the Court will
award
Correct : A. Nominal damages
17. Anticipatory breach of contract takes place when there is
Correct : C. Breach of contract prior to the date of performance
18. In case of remote and indirect loss or damage sustained by reason of breach of contract, the aggrieved
party is entitled to
Correct : C. No damages
19. Impossibility of performance occurs due to:
Correct : D. Destruction of subject-matter
20. By pre-contractual impossibility an agreement becomes:
Correct : B. Void
21. Object of granting damages is:
Correct : B. to monetarily compensate the party,
22. Specific performance is ordered where:
Correct : C. monetary compensation is not an adequate remedy.
23. An injunction order is granted by the Court in case:
Correct : C. the Court wants to restrain a party from committing a breach of contract.
24. The doctrine of frustration is covered by which section of the Indian Contract Act?
Correct : C. Section 56
25. In the Indian Contract Act, Novation means
Correct : A. Substitution of an existing contract with a new one
26. When there is breach of contract, special dam ages are awarded
Correct : C. Only when there is a notice of the likely special loss
27. Hadley v. Baxendale case is a leading case on
Correct : C. Law of damages
28. Damages which arise naturally in usual course of things from breach itself are called
Correct : D. General damages
29. In case of breach of contract, the Indian law awards damages
Correct : B. Which arose naturally or which parties knew to be likely when they entered into the contract
30. In case of anticipatory breach, the damages will be assessed
Correct : A. From the date on which the breach occurred
31. If the compensation to be paid on breach of contract is the genuine pre-estimate of the prospective
damages, it is known as
Correct : B. Liquidated damages
32. A stipulation for increased interest from the date of default is known as
Correct : B. Penalty
33. In a contract of debt when a sum is expressed to be payable on a certain date and a further sum is
stipulated to be payable in the event of default, then latter sum is by way of
Correct : B. Penalty
34. The damages awarded by way of punishment are called
Correct : C. Exemplary or indicative damages
35. The remedies open to a person, suffering from breach of contract are
Correct : D. All of the above
36. The provisions regarding the measure of damages for breach of contract are laid down in
Correct : C. Sections 73 to 75 of the Contract Act
37. Where the parties to a contract agree to substitute a new contract for it, it is known as
Correct : B. Novation
38. The rule of impossibility is contained in
Correct : A. Section 56 of Indian Contract Act
39. In the matter of liquidated damages
Correct : C. The plaintiff is entitled to recover the agreed amount of compensation without having to prove the exact loss suffered
40. A person, who sues for damages, under the law of contract
Correct : A. Has a duty to mitigate the loss consequent upon the breach of contract
41. The first case on the 'doctrine of frustration' as decided by the Supreme Court of India is
Correct : D. Satyabrata Ghosh v. Mugneeram
42. A party who suffers loss as a result of breach of contract, can, in the usual course, claim
Correct : A. Ordinary damages
43. A party to a contract committing breach, is liable to pay compensation in respect of
Correct : A. The direct consequences flowing from the breach
44. A party who does not suffer any loss in case of breach of contract, is entitled to
Correct : D. Nominal damages
45. Which one of the following is relevant in normal circumstances in determining the amount of damages for
breach of contract?
Correct : A. Normally expected loss
46. Which one of the following statements explains correctlv the law of frustration?
Correct : D. Waiver of frustration by one party does not bind the other party (promisor) for the remaining part of the contract
47. In India, the doctrine of impossibility of performance rendering contracts void is based on
Correct : C. Supervening impossibility as laid down in I Section 56 of the Indian Contract Act
48. If the performance of contract becomes impossible, because of a supervening event, the promisor is excused from the performance. This is known as
Correct : B. Doctrine of frustration
49. Damages awarded with a view to punish the party who commits the breach of contract are known as
Correct : B. Punitive damages
50. The code governing sale of goods was earlier contained in
Correct : A. the Indian Contract Act
51. The Sale of Goods Act, 1930 governs the transfer of property in
Correct : A. movable property
52. "Goods" means
Correct : A. every kind of movable property other than actionable claims and money
53. Which one of the following does not connote 'goods' as defined in the Sale of Goods Act.
Correct : D. both 'a' and 'c'
54. Which of the following is/are not included in the meaning of 'goods' as defined in the Sale of Goods Act.
Correct : D. both 'b' and 'c'
55. A contract of sale of goods is a contract whereby
Correct : C. the seller transfers or agrees to transfer the property in goods to the buyer for a price.
56. A valid contract of sale
Correct : A. includes 'an agreement to sell'
57. An essential element of a contract of sale is
Correct : A. transfer of ownership in goods
58. Where under a contract of sale the property in goods is transferred from the seller to the buyer, the
contract is called.
Correct : B. a sale
59. Where under a contract of sale the property in goods is to be transferred at a future time, the contract is
called.
Correct : A. an agreement to sell
60. A valid sale must have two parties who
Correct : A. must be competent to contract
61. In a valid sale
Correct : B. absolute ownership with the goods must be transferred to the buyer
62. The subject matter of a valid sale are such goods which are
Correct : A. transferred by seller to the buyer for a price
63. An agreement to sell is
Correct : A. an executory contract
64. An 'agreement to sell' becomes 'sale' when
Correct : A. the conditions are satisfied
65. 'Goods' as defined in Sale of Goods Act will
include
Correct : B. growing crops agreed to be severed before sale, old coins, and copyrights
66. Specific goods are such goods which are
Correct : A. existing and identified at the time of making the contract
67. 'Future goods'
Correct : A. can be the subject matter of sale
68. Where a contract of sale purports to effect a present sale of future goods, the contract operates as
Correct : B. an agreement to sell
69. Where there is a contract for the sale of specific goods, and the goods perish before the making of
contract, without the knowledge of the seller, the contract is
Correct : B. void
70. When there is a contract for unascertained goods, and goods perish without the fault of the seller or buyer
before the risk passes to the buyer, the contract
Correct : B. cannot be avoided
71. To constitute a Contract of Sale, the transfer of property in goods
Correct : A. must be for monetary consideration
72. Price must either be certain or definite or
Correct : C. All the above
73. If a contract of sale stipulates that price will be fixed by a third party on valuation of the goods, and the
third party shows inability to do so, then,
Correct : A. the agreement is void
74. Where there is an agreement to sell goods on the price fixed by a third party on valuation, but the third
party refuses to do so, and the buyer appropriates part of the goods delivered to him.
Correct : A. the buyer shall pay reasonable price
75. The Sale of Goods Act, 1930 extends to the whole of India, except the state of—
Correct : B. Jammu and Kashmir
76. The Sale of Goods Act, 1930 came into force on —
Correct : A. 1st day of July 1930
77. The Sale of Goods Act, 1930 deals with —
Correct : D. Sale of Goods in general
78. Conditions are stipulations
Correct : A. essential to the main purpose of the contract
79. A warranty is stipulation
Correct : B. collateral to the main purpose of the contract
80. Breach of a condition gives rise to
Correct : C. both 'a' and 'b'
81. Breach of a warranty gives rise to
Correct : A. claim for damages
82. Whether a stipulation is a condition or a warranty depends on
Correct : A. the construction of the contract
83. If a contract of a sale contains a stipulation which is impossible to fulfill then
Correct : B. the law excuses such a stipulation by reason of impossibility
84. Where a contact of sale is subject to any condition to be fulfilled by the seller and the seller commits a
breach of that condition
Correct : B. the buyer may voluntarily waive the condition
85. What are implied stipulations of a contract?
Correct : B. incorporated by law unless specifically agreed otherwise.
86. Once the buyer decides to waive the condition
Correct : B. he cannot insist on its fulfillment thereafter
87. When will breach of condition be treated as breach of warranty only?
Correct : B. when the contract is indivisible and the buyer accepts the goods in full or part.
88. What is the implied condition as to the title of goods?
Correct : D. both 'a' and 'b'
89. If the condition as to the title of goods is not fulfilled, the buyer
Correct : C. may reject the goods and claim damages
90. The implied condition as to the description of goods means that
Correct : A. the goods shall perfectly correspond to the description
91. In a sale by sample and description, there is an implied condition
Correct : B. that bulk of goods must correspond to the description as well as the sample thereof
92. "If you contract to sell peas, you cannot oblige a party to have beans": this statement applies to
Correct : A. a implied condition as to be description of goods
93. Where goods are bought by description from a seller who deals in goods of that description, what is the
implied condition?
Correct : A. that goods shall be of merchantable quality
94. In a contract of sale, unless otherwise stated, there is an implied warranty.
Correct : B. that the buyer shall have and enjoy quiet possession, and if there is a breach of this warranty, he is entitled to sue the seller for damages
95. Where goods are known to be dangerous to the seller, and he also knows that the buyer is ignorant
about it, there is an implied warranty
Correct : D. both 'a' and 'c'
96. Under section 11 of the Sale of Goods Act, 1930, the time of payment can be of the essence of the contract —
Correct : A. by agreement between the parties
97. Whether or not any stipulation other than time of payment is of the essence of the contract depends upon —
Correct : C. terms of the contract
98. The doctrine of Caveat emptor is not applicable
Correct : C. where the seller is guilty of fraud
99. A stipulation in a contract of sale which is collateral to the main purpose of contract is called as