Objective Questions With Answers of BRFW

Objective Questions with Answers on Law Of Contracts - 18
1) Which one of the following element is not necessary for a contract ?
A) Competent parties
B) Reasonable terms and conditions.
C) Free consent
D) Lawful concentration .
Answer : B
2) An agreement becomes a contract if :
A) It is by free consent of the parties.
B) Parties are competent.

C) It is enforceable by law.
D) None of the above .
Answer : C
3) In a standardized contract :
A) The individual has no choice but to accept and sign on the dotted line.
B) The individual must be protected in contract.
C) The agreement is without consideration.
D) None of the above.
Answer : A
5) The correct sequence in the formation of a contract is :
A) Offer, acceptance, agreement, consideration.
B) Agreement, consideration, offer,acceptance.
C) Offer , Consideration, acceptance, agreement.
D) Offer,acceptance, consideration, agreement.
Answer :D
1) Consider the following statements :
A) Every promise is an agreement.
B) Every agreement is a contract.
C) A contractor which cease to be enforceable by law becomes void .
D) A minor who is supplied necessaries is personally liable to pay for them.
Which of the statements given above are correct?

A) A and C only.
B) A and B only.
C) A, B and C .
D) B, C and D .
Answer :A
2) Consider the following statements :
1. If an infant obtains property or goods by misrepresenting his age, he can be

compelled to restore it even though the infant has sold the Goods or converted
them.
2. There is no estoppel against minor.

Which of the statement given above are correct?
A) 1 only .
B) 2 only .
C) Both 1 and 2.
D) Neither 1 nor 2.
Answer : B
3) A petient in a lunatic Asylum who is at intervals of sound mind :
A) May not contract.
B) May contract.
C) May contact during those intervals when he is of sound mind.
D) May contract only after he becomes completely of sound mind .
Answer : C
4) A sells, by auction to B a horse which A knows to be unsound. A says

nothing to B about the horse unsoundness. A does :
A) Fraud
B) Misrepresentation
C) No fraud
D) Undue Influence
Answer : C
5) Where both parties are under mistake as to matter of fact, the

agreement will be :
A) Enforceable
B) Voidable
C) Not void
D) Void
Answer : C
1) What will be the effect of mistakes as to law in force in India on the

agreement?
A) Not voidable
B) Voidable
C) Void
D) Not void
Answer. : A
2) An agreement made without free consent is:
A) Always void
B) Voidable
C) Unlawful
D) Either void or voidable.
Answer. : B
3) Which of the following statement is not correct ?
A) Minor's agreement is void.
B) Wagering agreement is void

C) Agreement caused by mutual mistake is void.
D) Contract without consideration is void.
Answer. : C
4) A Guru. ( spiritual advisor) induced the Chela ( his devotee) to gift him a
whole of his property to secure benefit of his soul in the next World.
The gift shall be...
A) Void
B) Voidable
C) Valid
D) Immoral
Answer. :B
5) A contract caused by one of the parties to it being under a mistake as to

matter of fact is :
A) Void
B) Valid
C) Voidable at the option of either party.
D) Voidable at the option of the party who under mistake.
Answer. : B
1) Unlawful detaining or threatening to detain any property with the

intention of causing any person to enter into an agreement would amount
to which one of the following ?
A) Duress
B) Undue. influence.
C) Coercion
D) Unlawful detaintion.
Answer. : C
2) A promise made without intention to perform is:
A) Misrepresentation.
B) Fraud
C) Undue influence
D) Coercion.
Answer. : B
3) Under which one of the following sections of The Indian Contract Act,
for the purpose of contract, the term sound mind has been defined :
A) Section 12
B) Section 10
C) Section 11
D) Section 13
Answer. : A
4) Which statement is not correct ?
A) Coercion renders a contract voidable
B) Undue influence renders a contract voidable.

C) fraud renders a contract voidable.
D) Mistakes of Indian law renders a contract voidable.
Answer: D
5) A and B makes a contract grounded on the erroneous belief that a

particular Debt is barred by the Indian law of limitation.
The contract is :
A) Void
B) Voidable
C) Not voidable .
D) All of the above
Answer : C

1) Which one of the following sections of the Indian Contract Act,1872
relates to the rule no consent, no agreement ?
A) Section 13
B) Section 21
C) Section 20
D) Section 22
Answer : A
2) Which is not the correct statement ?
A) If consent is the result of coercion, the agreement is void.
B) If a party is minor, the agreement is void .
C) If the object of an agreement is unlawful, the agreement is void.
D) If the consideration of an agreement is unlawful, the agreement is void .
Answer. : A
3) Which section of The Indian Contract Act, 1872 provides that where
both parties to an agreement are under a mistake of fact, the agreement is
void.
A) Section 13
B) Section 20
C) Section 21
D) Section 22.
Answer. : B
4) Which may render an agreement void ?
A) Coercion causing consent.
B) Undue influence causing consent.
C) Fraud causing consent.
D) Agreement in restraint of trade.
Answer. : D
5) Where both the parties to an agreement under a mistake of fact essential

to the agreement, the agreement is :
A) Voidable at the option of sufferer
B) Illegal
C) Void
D) Not enforceable in a court.
Answer. : C
1) A being entitled to an estate for the life of B , agrees to sell it to C, B

was dead at the time of agreement, but both parties were ignorant of that
fact. The agreement is :
A) Valid
B) Void
C) Voidable
D) Illegal
Answer : C
2) A intending to deceive B falsely represents that 500 mounds of Indigo
are made annual at A's factory and thereby induces B to buy the factory.
The contract is :
A) Voidable at the option of B.
B) Voidable at the option of A.
C) Valid.
D) Void .
Answer : A
3) B, having discovered a vein of ore on the estate of A, adopts the means

to conceal, and does conceal the existence of the ore from A. Through A's
ignorance B is entitled to buy the estate at an under value . The contract :
A) Is voidable at the option of A.
B) Is voidable at the option of B.
C) Is valid
D) Is Void
Answer : A.
4) A agrees to buy from B a certain house. It turns out that the house was
dead at the time of bargain, through neither party was aware of the fact.
The agreement :
A) Void
B) Valid
C) Voidable
D) Illegal
Answer : A
5) B says to A if you do not deny it .I shall assume that is sound'. A says

nothing. Here A's silence is equivalent to :
A) Fraud
B) misrepresentation
C) Coercion
D) Speech
Answer : D
Multiple Choice Questions on the Law of Contract (Indian Contract Act)
1. Which the following strikes only at document and not transactions?
A. The Transfer of Property Act, 1882
B. The Registration Act, 1908
C. both (A) and (B)
D. None of these
Ans. (B)
2. A stipulation in a bond for payment of compound interest on failure to

pay simple interest at the same rate as was payable upon the principal is
not a penalty within the meaning of:
A. Section 74 of the Indian Contract Act, 1872
B. Section 75 of the Indian Contract Act, 1872
C. Section 76 of the Indian Contract Act, 1872
D. None of these
Ans. (A)
3. A sub-bailee is a person to whom the actual possession of goods is

transferred by someone:
A. who is not himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. both (A) and (B)

D. None of these
Ans. (C)
4. A successful plaintiff in an action for detenue, is, therefore entitled to the

return of the goods or recovery of its value and damages for detention and
is entitled to have been assessed separately:
A. the value of the goods at the date of the assessment
B. damages sustained by him up to that date
C. both (A) and (B)
D. None of these
Ans. (C)
5. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
Ans. (A)
6. A supplies the wife and children of B, a lunatic, with necessaries suitable

to their condition in life.
D. None of these
Ans. (A)
7. A supports B’s infant son. B promise to pay A’s expenses in so doing.
A. This is not a contract

B. This is a contract
C. either (A) or (B)
D. None of these
Ans. (B)
8. A surety is discharged if the creditor, without consent, unconditionally

releases the principal-debtor; the reason for this principle being that:
A. The release extinguishes the principal obligation
B. Such release adversely affects the right of the surety to sue the principal-
debtor and deprives the surety of his right to compel the debtor to perform his
own obligation to the creditor
C. both (A) and (B)
D. None of these
Ans. (C)
9. A transaction by which A promised to pay B and C for consideration

during their joint lives and after the death of one of them, to the survivor,
the consideration moved from B but the agreement was signed by all three,
i.e., A, B and C.
A. There was privity between A and B but not with C
B. There was privity between A and C but not with B
C. There was privity between A on one side and B and C on the other
D. None of these
Ans. (C)
10. A undertakes to deliver a thousand maunds of jute to B on a fixed day

Applying Section 47, Indian Contract Act:
A. A need not apply to B to appoint a reasonable place for the purpose of

receiving it, and must deliver it to him at such place
B. A must apply to B to appoint a reasonable place for the purpose of receiving
it, and can choose to later change the place
C. A must apply to B to appoint a reasonable place for the purpose of receiving

it, and must deliver it to him at such place
D. None of these
Ans. (C)
11. A undertakes to repay B a loan of Rs.1,000 by five equal monthly

instalments with a stipulation that, in default of payment of any instalment,
the whole shall become due.
A. This stipulation is by way of penalty, and the contract cannot be enforced

according to its terms
B. This stipulation is not by way of penalty, and the contract cannot be enforced
C. This stipulation is not by way of penalty, and the contract may be enforced
D. None of these
Ans. (C)
12. A, a builder, contracts to erect and finish a house by the first of

January, in order that B may give possession of it at that time to C, to
whom B has contracted to let it. A is informed of the contract between B
and C. A builds the house so badly that, before the first of January, it falls
down and has to be rebuilt by B, who in consequence, loses the rent which
he was to have received from C, and is obliged to make compensation to C
for the breach of his contract.
A. A must make compensation to B for the cost of rebuilding the house
B. A must make compensation to B for the rent lost
C. A must make compensation to B for the compensation made to C
D. All of them
Ans. (D)
13. A, a decree-holder, and entitled to execution of B’s goods, requires the
officer of the court to seize certain goods, representing them to be the goods
of B. The officer seizes the goods, and issues by C, the true owner of the
goods.
A. A is not liable to indemnify the officer for the sum which he is compelled to
pay to C, in consequence of obeying A’s directions
B. A is partially liable to indemnify the officer for the sum which he is

compelled to pay to C, in consequence of obeying A’s directions
C. A is liable to indemnify the officer for the sum which he is compelled to pay
to C, in consequence of obeying A’s directions
D. None of these
Ans. (C)
14. A, a man enfeebled by disease or age, is induced, by B’s influence over

him as his medical attendant, to agree to pay B an unreasonable sum for
his professional services.
A. B did not employs undue influence
B. B employs undue influence
D. None of these
Ans. (B)
15. A, a merchant in Calcutta, has an agent, B, in London to whom a sum

of money is paid on A’s account, with orders to remit. B retains the money
for considerable time. A, in consequence of not receiving the money,
becomes insolvent.
A. B is not liable for the money and interest, from the day on which it ought to
have been paid, according to the usual rate
B. B is liable for any further direct loss – as e.g. by variation of rate of exchange
C. B is liable for the money and interest, from the day on which it ought to have
been paid, according to the usual rate, and for any further direct loss – as e.g. by
variation of rate of exchange – but not further
D. None of these
Ans. (C)
16. A, a merchant in England, directs B, his agent or Bombay, who accepts

the agency, to send him 100 bales of cotton by a certain ship. B, having it in
his power to send the cotton, omits to do so. The ship arrives safely in
England. Soon after her arrival, the price of cotton rises.
A. B is not bound to make good to A profit which he might have made by 100
bales of cotton at the time the ship arrived
B. B is bound to make good to A any profit he might have made by the

subsequent rise
C. B is bound to make good to A profit which he might have made by 100 bales
of cotton at the time the ship arrived. But not any profit he might have made by
the subsequent rise
d. None of these
Ans. (C)
17. A, a money-lender advances Rs.100/- to B, an agriculturist, and by

undue influence, induces B to execute a bond for Rs.200/- with interest at 6
per cent per month.
A. The Court will not set the bond aside and not take any legal action against B
B. The Court may set the bond aside, ordering B to repay the Rs. 100/- with
such as may seem just
d. None of these
Ans. (B)
18. A, a ship-owner, contracts with b to convey him from Calcutta to

Sydney in A’s ship, sailing on the first of January, and B pays to A, by way
deposit, one-half of his passage money. The ship does not sail on the first of
January and B, after being, in consequence, detained in Calcutta for some
time, and thereby put to some expense, proceeds to Sydney in another
vessel, and, in consequence, arriving too late in Sydney, loses a sum of
money.
A. A is liable to repay to B his deposit, with interest and the expense to which
he is put by his detention in Calcutta, and the excess, if any, of the passage-
money paid for the second ship over that agreed upon the first
B. A is liable to repay to B his deposit, with interest and the expense to which
he is put by his detention in Calcutta, and the excess, if any, of the sum of
money which B lost by arriving in Sydney too late
C. A is liable to repay to B his deposit, with interest and the excess, if any, of
the passage-money paid for the second ship over that agreed upon the first, but
not the sum of money which B lost by arriving in Sydney too late
D. None of these
Ans. (A)
19. A, a signer, contracts with B, the manager of a theatre for two nights in
every week during the next two months, and B engages to pay her a
hundred rupees for each night’s performance. On the sixth night, A
willfully absents herself from the theatre, and B, in consequence rescinds
the contract.
A. B must pay A for the three nights on which she had sung
B. B must pay A for the four nights on which she had sung
C. B must pay A for the five nights on which she had sung
d. None of these
Ans. (C)
20. A, a singer, contracts with B, the manager of a theatre, to sing at his

theatre for two nights in every week during the next two months, and B
engages to pay her 100 rupees for each night’s performance. On the sixth
night, A wilfully absents herself from the theatre, and B, in consequence,
rescinds the contract.
A. B is not entitled to claim compensation the damage which he has sustained

through the non-fulfilment of the contract
B. B is entitled to claim compensation the damage which he has sustained

C. A is entitled to claim compensation the damage which she has sustained due
to the rescinding of the contract by B.
D. None of these
Ans. (B)
21. 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 rupees for each night’s performance. On the
sixth night A willfully absent herself from the theatre.
A. B is at liberty to put an end to the contract
B. B cannot put an end to the contract
D. None of these
Ans. (A)

and B engages to pay her at the rate of 100 rupees for each night. On the
sixth night A wilfully absents herself. With the assent of B, A sings on the
seventh night.
A. B has signified his acquiescence in the continuance of the contract, and

cannot now put an end to it, but is entitled to compensation for the damage
sustained by him through A’s failure to sing on the sixth night
B. B has signified his acquiescence in the continuance of the contract, and but
can still put an end to it, but is entitled to compensation for the damage
C. B has signified his acquiescence in the continuance of the contract, and

cannot now put an end to it, but is not entitled to compensation for the damage
D. None of these
Ans. (A)
23. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods
as his own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
Ans. (C)
24. A, an agent engaged in carrying on for B a business, in which it is the

custom to invest from time-to-time, at interest, the moneys which may be in
hand, omits to make such investments.
A. A need not make good to B the interest usually obtained by such investments
B. A can partially make good to B the interest usually obtained by such

investments
C. A must make good to B the interest usually obtained by such investments
D. None of these
Ans. (C)
25. A, an agent for the sale of goods, having authority to sell on credit, sells
to B on credit, without making the proper and usual inquires as to the
solvency of B. B at the time of such sale is insolvent.
A. A need not make compensation to his principal in respect of any loss thereby
sustained
B. A can partially make compensation to his principal in respect of any loss

thereby sustained
C. A must make compensation to his principal in respect of any loss thereby

sustained
D. None of these
Ans. (C)
26. A, an insurance broker, employed by B to effect an insurance on a ship,
omits to see that usual clauses are inserted in the policy. The ship is
afterwards lost. In consequence of the omission of the clauses nothing can
be recovered from the underwriters.
A. A is not bound to make good the loss to B
B. A is bound to partially make good the loss to B
C. A is bound to make good the loss to B
D. None of these
Ans. (C)
27. A, as surety for B, makes a bond jointly with B to C, to secure a loan

from C to B. Afterwards, C obtains from B a further security for the same
debt. Subsequently, C gives up the further security.
A. A is partly discharged
B. A is discharged
C. A is not discharged
D. None of these
Ans. (C)
28. A, at Madras, by letter directs B to sell for him some cotton lying in a
warehouse in Bombay, and afterwards, by letter revokes his authority to
sell, and directs, B to send, the cotton to Madras, B, after receiving the
second-letter, enters into a contract with C, who known of the first letter,
but not of the second for the sale to him of the cotton. C pays B the money,
with which B absconds.
A. C’s payment is not good as against A
B. C’s payment is good as against A
D. None of these
Ans. (B)
29. A owns a shop in Serampur, living himself in Calcutta, and visiting the
shop occasionally. The shop is managed by B, and he is in the habit of
ordering goods from C in the name of A for the purposes of the shop, and
of paying for them out of A’s funds without A’s knowledge.
A. B has no implied authority from A to order goods from C in the name of A

for the purposes of the shop
B. B has an implied authority from A to order goods from C in the name of A

for his own purposes
C. B has an implied authority from A to order goods from C in the name of A

D. None of these
Ans: C
30. A contracts to indemnify B against the consequences of any proceedings

which C may take against B in respect of a certain sum of 200 rupees.
A. This is contract of indemnity
B. This is not a valid contract of indemnity
C. This is contract of stipulation
D. None of these
Ans: A
31. A contracts to marry B, being already married to C, and being

forbidden by the law to which he is subject to practice polygamy. This
causes loss to B
A. A need not make compensation to B for the non-performance of his promise
B. A must make compensation to B for the non-performance of his promise
C. Either (A) or (B)
D. None of these
Ans: B
32. A contracts to pay B a sum of money when B marries C. C dies without
being married to B.
A. The contract still can be forced
B. The contract becomes void
D. None of these
Ans: B
33. A contracts to sell and deliver 50 maunds of saltpetre to B, at a certain

price to be paid on delivery. A breaks his promise.
A. B is not entitled to receive from A, by way of compensation, the sum, if any,

by which the contract price falls short of the price for which B might have
obtained 50 maunds of saltpetre of like quality at the time when the saltpetre
ought to have been delivered
B. B is entitled to receive from A, by way of compensation, the sum, if any, by

which the contract price does not fall short of the price for which B might have
C. B is entitled to receive from A, by way of compensation, the sum, if any, by

which the contract price falls short of the price for which B might have obtained
50 maunds of saltpetre of like quality at the time when the saltpetre ought to
have been delivered
D. None of these
Ans: C
34. A contracts to sell and deliver to B, on the first of January, certain cloth
which B intends to manufacture into caps of a particular kind, for which
there is not demand, except at that season. The cloth is not delivered till
after the appointed time, and too late to be used that year in making the
caps.
A. B is entitled to receive from A, by way of compensation, the difference

between the contract price of the cloth and its market price at the time of
delivery
B. B is entitled to receive from A, by way of compensation, the difference
between the contract price of the cloth and the profits which he expected to
obtain by making caps
C. B is entitled to receive from A, by way of compensation, the difference

between the contract price of the cloth and the expenses which he has been put
to in making preparation for the manufacture
D. None of these
Ans: A
35. A contracts to take in cargo for B at a foreign port. A’s Government

afterwards declares war against the country in which the port is situated.
A. The contract cannot become void when war is declared
B. The contract becomes partly void when war is declared
C. The contract becomes void when war is declared
D. None of these
Ans: C
36. A contracts with B that, if A practices as a surgeon within Calcutta, he

will pay B Rs. 5,000. A practices as a surgeon in Calcutta.
A. B is entitled to such compensation, not exceeding Rs. 3,000 as the Court

considers reasonable
B. B is entitled to such compensation, not exceeding Rs. 4,000 as the Court

C. B is entitled to such compensation, not exceeding Rs. 5,000 as the Court

D. None of these
Ans: C
37. A contracts with B to deliver to him, at a specified price, certain

merchandise on board a ship which cannot arrive for a month, and B
engages to pay for the merchandise within a week from the date of the
contract. B does not pay within a week.
A. A’s promise to deliver and need not be performed
B. A’s promise to deliver and needs to be performed
C. B must make compensation
D. Both (A) and (C)
Ans: D
38. A contracts with B to grow a crop of indigo on A’s land and to deliver it
to B at a fixed rate, and C guarantees A’s performance of this contract. B
diverts a stream of water which is necessary for irrigation of A’s land, and
thereby prevents him from raising the indigo.
A. A is liable on his guarantee
B. A is partly liable on his guarantee
C. A is no longer liable on his guarantee
D. None of these
Ans: C
39. A contracts with B to repair B’s house. B neglects or refuses to point

out to A the places in which his house requires repair.
A. A is excused for the non-performance of the contract if it is caused by such

neglect or refusal
B. A cannot be excused for the non-performance of the contract even if it is

caused by such neglect or refusal
C. B is excused for his negligence or refusal to point out to A the places in

which his house requires repair
D. None of these
Ans: A
40. A delivers a rough diamond to B, a jeweller, to be cut and polished,

which is accordingly done.
A. B is not entitled to retain the stone till he is paid for the services he has
rendered
B. B is entitled to retain the stone till he is not paid for the services he has
rendered
C. B is entitled to retain the stone till he is paid for the services he has rendered
D. None of these
Ans: C
41. A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by
post.
A. The debt is discharged only when A receives the due amount
B. The debt is discharged as soon as B puts into the post a letter containing the
note duly addressed to A
D. None of these
Ans: B
42. A directs B to sell A’s estate. B boys the estate for himself in the name
of C. A, on discovering that B has bought the estate for himself, may
repudiate the sale:
A. If he can show that B has dishonestly concealed any material fact
B. If he can show that the sale has been disadvantageous to him
D. None of these
Ans: C
43. A directs B, his agent, to buy a certain house for him. . B tells A it
cannot be bought, and buys the house for himself.
A. A cannot, on discovering that B has bought the house, compel him to sell it
to A at the price he gave for it
B. A can, on discovering that B has bought the house, file a suit against him
C. A may, on discovering that B has bought the house, compel him to sell it to
A at the price he gave for it
D. None of these
Ans: C
44. A directs B, his solicitor, to sell his estate by auction, and so employ an
auctioneer for the purpose. B names C, an auctioneer, to conduct the sale.
A. C is a sub-agent, and A’s sub-agent for the conduct of the sale
B. C is not a sub-agent, but B’s agent for the conduct of the sale
C. C is not a sub-agent, but A’s agent for the conduct of the sale
D. None of these
Ans: C
45. A employs B to beat C, and agrees to indemnify him against all

consequence of the act. B thereupon beats C, and to pay damages to C for
so doing.
A. A is liable to indemnify B for those damages
B. A is partially liable to indemnify B for those damages
C. A is not liable to indemnify B for those damages
D. None of these
Ans: C
46. A employs B to recover 100,000 rupees from C, and to lay it out on good
security. B recovers 1,00,000 rupees and lays out 90,000 rupees on good
security, but lays out 10,000 rupees, on security which he ought to have
known to be bad, whereby A loses 2,000 rupees.
A. B is not entitled to remuneration for recovering the 1,00,000 rupees and for
investing the 90,000 rupees. He is entitled to any remuneration for investing the
10,000 rupees, and he must make good the 2,000 rupees to B
B. B is entitled to remuneration for recovering the 1,00,000 rupees and not for
C. B is entitled to remuneration for recovering the 1,00,000 rupees and for

investing the 90,000 rupees. He is not entitled to any remuneration for investing
the 10,000 rupees, and he must make good the 2,000 rupees to B
D. None of these
Ans: C
47. A engages B as clerk to collect money for him. B fails to account for
some of his receipts, and A in consequence calls upon him to furnish
security for his duly accounting. A does not acquaint C with B’s previous
conduct. B afterwards makes default.
A. The guarantee is not invalid
B. The guarantee is partly invalid
C. The guarantee is invalid
D. None of these
Ans: C
48. A entrusts B with negotiable instrument endorsed in blank. B sells them

to C in violation of private orders from A.
A. The sale is not good
B. The sale is partly good
C. The sale is good
D. None of these
Ans: C
49. A fraudulently inform B that A’s estate is free from encumbrance. B

thereupon buys the estate. The estate is subject to a mortgage.
A. B may avoid the contract

B. B may insist on its being carried out, and the mortgage- debt redeemed
D. None of these
Ans: C
50. A gives a recognizance binding him in a penalty of Rs. 500 to appear in

Court on a certain day. He forfeits his recognizance.
A. He is not liable to pay the penalty
B. He is liable to partially pay the penalty
C. He is liable to pay the whole penalty
D. None of these
Ans: C
51. A gives B a bond for the repayment of Rs. 1,000 with interest at 12
percent at the end of six months, with a stipulation that, in case of default,
interest shall be payable at the rate of 75 percent from the date of default.
This is a stipulation by way of penalty.
A. B is only entitled to recover from A such compensation as the Court

B. B is only entitled to recover from A such compensation he considers

reasonable
C. B is not entitled to recover from A such compensation
D. None of these
Ans: A
52. A gives to C a continuing guarantee to the extent of 3,000 rupees for

any oil supplied by C to B on credit. Afterwards B becomes embarrassed,
and, without the knowledge of A, B and C contract that C shall continue to
supply B with oil for ready money, and that the payments shall be applied
to the then, existing debts between B and C.
A. A is liable on his guarantee for any goods supplied after this new
arrangement
B. A is not liable on his guarantee for any goods supplied after this new
arrangement
C. A is partly liable on his guarantee for any goods supplied after this new
arrangement
D. None of these
Ans: B
53. A guarantees C against the misconduct of B in an office to which B is

appointed by C, and of which the duties are defined by an Act of the
Legislature. By a subsequent Act the nature of the office is materially
altered. Afterwards, B misconduct’s himself.
A. A is not discharged by the change from future liability under the guarantee,
though the misconduct of B is in respect of a duty not affected by the later Act
B. A is discharged by the change from future liability under the guarantee,

though the misconduct of B is in respect of a duty affected by the later Act
C. A is discharged by the change from future liability under the guarantee,

D. None of these
Ans: C
54. A guarantees payment to B, a tea-dealer, to the amount of Rs. 100, for

any tea he may from time to time supply to C. B supplies C with tea to
above the value of Rs. 100, and C pays B for it. Afterward B supplies C
with tea to the value of Rs. 200. C fails to pay.
A. The guarantee given by A was not a continuing guarantee, and he is not

accordingly liable to b to the extent of Rs. 100
B. The guarantee given by A was a continuing guarantee, and he is also liable to

B to the extent of Rs. 200
C. The guarantee given by A was a continuing guarantee, and he is accordingly

liable to B to the extent of Rs. 100
D. None of these
Ans: C
55. A guarantees to B, the extent of 10,000 rupees, that C shall pay all the
bills that B shall draw upon him. B draws upon C, C accepts the bill. A
gives notice of revocation. C dishonors the bill at maturity.
A. A is liable upon his guarantee
B. A is not liable upon his guarantee
C. A is partly liable upon his guarantee
D. None of these
Ans: A
56. A guarantees to C, to the extent of 2,000 rupees, payment for rice to be

supplied by C to B. C supplies to B rice to a less amount than 2,000 rupees
but obtains from A payments of the sum of 2,000 rupees in respect of the
rice supplied.
A. A can recover from B more than the price of the rice actually supplied
B. A can recover from B only the price of the rice actually supplied
C. A cannot recover from B more than the price of the rice actually supplied
D. None of these
Ans: C
57. A having advanced money to his son, B, during his minority, upon B’s
coming of age obtains, by misue of parental influence, a bond from B for a
greater amount than the sum due in respect of the advance.
A. A did not employ undue influence
B. A employs undue influence
D. None of these
Ans: B
58. A hires a horse in Calcutta from B expressly to march to Benaras. A

rides with due care, but marches to Cuttack instead. The horse accidentally
falls and is injured.
A. A is not liable to make compensation to B for the injury to the horse
B. A is partially liable to make compensation to B for the injury to the horse
C. A is liable to make compensation to B for the injury to the horse
D. None of these
Ans: C
59. A hires B’s ship to take in and convey, from Calcutta to the Mauritius,
a cargo to be provided by A, B receiving a certain freight for its
conveyance. A does not provide any cargo for the ship.
A. A cannot claim the performance of B’s promise
B. A must make compensation to B for the loss which B sustains by the non-
performance of the contract
D. Both (A) and (B)
Ans: D
60. A is employed by B by buy from C certain goods, of which C is the

apparent owner, and buys them accordingly. In the course of the treaty for
the sale. A learns that the goods really belonged to D, but B is ignorant of
that fact.
A. B is entitled to set-off a debt owning to him from C against the price of the
goods
B. B is partially entitled to set-off a debt owning to him from C against the price
of the goods
C. B is not entitled to set-off a debt owning to him from C against the price of
the goods
D. None of these
Ans: C
61. A is employed by B, residing in London, to recover at Bombay a debt

due to B.
A. A may adopt any illegal process necessary for the purpose of recovering the
debt, and may give a valid discharge for the same
B. A may not adopt any legal process necessary for the purpose of recovering
the debt, and may give a valid discharge for the same
C. A may adopt any legal process necessary for the purpose of recovering the
D. None of these
Ans: C
62. A leaves a cow in the custody of B to be taken care of. The cow has a
calf.
A. B is not bound to deliver the calf but the cow to A
B. B is bound to deliver the calf but not the cow to A
C. B is bound to deliver the calf as well as the cow to A
D. None of these
Ans: C
63. A lends a horse, which he knows to be vicious, to B. He does not disclose

the fact that the horse is vicious. The horse runs away. B is thrown and
injured.
A. A is not responsible to B for damage sustained
B. A is partly responsible to B for damage sustained
C. A is responsible to B for damage sustained
D. None of these
Ans: C
64. A makes a contract with B to buy B’s horse if A survives C.
A. This contract cannot be enforced by law unless and until A dies in C’s
lifetime
B. This contract cannot be enforced by law unless and until C dies in A’s
lifetime
C. This contract can be enforced by law during C and A’s lifetime
D. None of these
Ans: B
65. A owes B 1,000 rupees under a contract. B owes B 1,000 rupees. B order
A to credit C with 1,000 rupees in his books, but C does not assent to the
arrangement.
A. B does not owes C 1,000 rupees, as new contract has been entered into
B. B still owes C 1,000 rupees, even though a new contract has been entered
into
C. B still owes C 1,000 rupees, and no new contract has been entered into
D. None of these
Ans: C
66. A owes B 2,000 rupees, B accepts some of A’s goods in reduction of the
debt.
A. The delivery of the goods operates as a part payment
B. The delivery of the goods does not amount to part payment
D. None of these
Ans: A
67. A owes B 5,000 rupees. C pays to B 1,000 rupees and B accepts them, in
satisfaction of his claim on A.
A. This payment is a partial discharge of the whole claim
B. This payment is not a discharge of the whole claim
C. This payment is a discharge of the whole claim
D. None of these
Ans: C
68. A owes B, among other debts, 1,000 rupees upon a promissory note,
which falls due on the first June. He owes B no other debt of that amount.
On the first June A pays to B 1,000 rupees.
A. The payment is to be applied equally to all the debts owed by A
B. The payment is to be applied to the discharge of the promissory note
D. Both (A) and (B)
Ans: B
69. A owes money to B under a contract. The old debt of A to B is at an

end. It is agreed between A, B and C, that B shall thenceforth accept C as
his debtor instead of A.
A. New debt from C to B has been contracted
B. New debt from A to C has been contracted
D. None of these
Ans: A
70. Section 75 of the Indian Contract Act, 1872 must be read as

supplementary to _____________
I. Section 39 of the Indian Contract Act, 1872

II. Section 53 of the Indian Contract Act, 1872
III. Section 55 of the Indian Contract Act, 1872
IV. Section 64 of the Indian Contract Act, 1872
V. Section 65 of the Indian Contract Act, 1872
A. II, III, IV
B. IV, V
C. I, V
D. All of them
Ans. (D)
71. Severance can be effected when the part severed can be removed by
running a through it.
A. blue pencil
B. white pencil
C. black pencil
D. None of these
Ans. (A)
72. Since a contract is concluded by the mere acceptance of an offer, the

terms of the intended or proposed agreement must be indicated with
sufficient definiteness in the offer itself. The terms of the offer must
therefore be definite and certain. Which of the following cases held that the
proposal must be sufficiently definite to permit the conclusion of the
contract by mere acceptance?
A. Coffee Board Bangalore v. Janab Dada Haji Ibrahim Halari
B. Gorakh Nand Yadav v. District Magistrate, Gorakhpur
C. Sanwarmal Goenka v. Soumyendra Chandra Gooptu
D. Nandganj Sihori Sugar Co. Ltd., v. Badri Nath Dixit

Ans. (A)
73. Subject to a contract between the partners, the firm shall indemnify a
partner in respect to payments made and liabilities incurred by him:
A. in the ordinary and proper conduct of the business
B. in doing such act, in an emergency, for the purpose of protecting the firm
from loss, as would be done by a person of ordinary prudence, in his own case,
under similar circumstances
C. both (A) and (B)
D. None of these
Ans. (C)
74. Sub-section 1 of Section 16 of Indian Contract Act, 1872 requires the

Court trying a case to consider which of the following?
A. Are the relations between the donor and the done such that the done is in a
position to dominate the will of the donor?
B. Has the done use that position to obtain an unfair advantage over the donor?
D. both (A) and (B)
Ans. (D)
75. Sub-section of which of the following Section of the Indian Contract

Act, 1872 shall not affect the provisions of section 111 of the Indian
Evidence Act, 1872 (1 of 1872)?
A. Section 7
B. Section 16
C. Section 20
D. None of these
Ans. (B)
76. Suit by bailor or bailee against wrong-doer is dealt under which of the
following in the Indian Contract Act, 1872?
A. Section 176
B. Section 179
C. Section 180
D. Section 178
Ans. (C)
77. Termination of an agency with public authority or a public body may

attract judicial intervention in writ petition:
A. If the termination be unreasonable
B. If the termination be arbitrary
C. If the termination be unconscionable
D. All of them
Ans. (D)
78. Terms of contract relate to statements, assertions, or representations

contained in a written contract which relate to the subject matter of the
contract and:
A. to something to be done
B. to something not be done under the contract
C. has no application to a provision in the nature of a condition precedent to the

very existence or formation of a contract
D. All of them
Ans. (D)
79. The acts or omission contemplated by S. 134 of the Indian Contract Act,
1872, may be those referred to in of the Indian Contract Act:
I. Section 39
II. Section 53
III. Section 54
IV. Section 55
V. Section 63
VI. Section 67
A. II, III, IV
B. IV, V
C. I, VI
D. All of them
Ans. (D)
80. The agency extends to receiving notice on behalf of his principal of

whatever is material to be stated in the course of the proceedings. For this
rule to operate:
I. the agent must be under a duty to communicate
II. the information must be material
III. it must have been obtained in the course of business for which the agent has
been engaged
IV. the agent is not privy to a fraud on the principal
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)
81. The agency type described in S. 202 of the Indian Contract Act, 1872:
A. cannot be revoked by the principal

B. it cannot be terminated by the death, unsoundness of mind or insolvency of
the principal
D. None of these
Ans. (C)
82. The agent may be disentitled to relief under S. 226 of the Indian
Contract Act, 1872:
A. If the injury was due to his own contributory negligence
B. If the injury is on the ground of common employment
D. None of these
Ans. (C)
83. The application of the principles in Section 45 of the Indian Contract

Act, 1872 may be excluded by statutes, especially those relating to
securities, which provides that:
A. securities payable to one or more persons jointly shall, on death of any of

them, be payable to the survivor or survivors
B. securities payable to one or more persons severally, shall be payable on death

of any of them to any of the survivors or the legal representative(s) of the
deceased holder
C. any one or more joint holder can give effectual receipt for interest, unless
notice is given by the other holders to the promisor
D. all of them
Ans. (D)
84. The article of Fuller and Perdue on “The Reliance Interest in Contract
Damages” adopted the method of viewing the remedies for breach of
contract in terms of the interests which the remedies served to protect.
Which of the following interests were identified by them?
A. The expectation interest
B. The reliance interest
C. The restitution interest
D. All of them
Ans. (D)
85. The award of damage involves a detailed investigation of facts:
A. is not normally an appropriate matter for a writ petition under Article 30 or

Article 225 of the Constitution, but it might be exercised in extraordinary
circumstances, rarely and sparingly, when no disputed questions of facts arose
B. is not normally an appropriate matter for a writ petition under Article 32 or

C. is not normally an appropriate matter for a writ petition under Article 33 or

D. None of these
Ans. (B)
86. The balance to the provisions of Section 11 of the Indian Contract Act,
1872 is found in:
D. None of these
Ans. (C)
87. The branches Section 30 of the Indian Contract Act, 1872 declares:
A. Agreement of wager void

B. Prevents the winner from bringing an action to recover amount won (even
under a substituted contract)
C. Prevents the winner from suing the stakeholder
D. All of them
Ans. (D)
88. The basis of relief on the ground of economic duress is not clear from
the judgment in case of Dai-ichi Karkaria Pvt. Ltd. v. Oil Natural Gas
Commission because:
A. the decision has been given in proceedings seeking interim injunction, where
the Court has to decide whether interim injunction ought to be issued. The
decision can be sustained solely on the equitable principles on which the Court
may refuse to grant injunction
B. the Court has discussed the effect of economic duress as a ground of

invalidating a contract on the basis of a prima facie case in interlocutory
proceedings
C. the effect of such duress on the contract, i.e. whether it is voidable for lack of
free consent, or is void being against public policy is not clear from the
judgment
D. All of them
Ans. (D)
89. The capacity of a woman to contract is not affected by her marriage

under which of the following?
A. The Hindu Law
B. The Mohammedan Law
C. both (A) and (B)
D. None of these
Ans. (C)
90. The cases in which power under Article 226 or 14 of the Constitution
can be exercised for breaches of alleged obligations of the state, or its
agents, can be divided which of the following types?
I. Where a petitioner makes a grievance of breach of promise on the part of the

state in cases where on assurance or promises made by the state, he has acted to
his prejudice and predicament, but the agreement is short of a contract within
the meaning of Article 299 of the Constitution.
II. Where the contract entered into between the person aggrieved and the state is
in exercise of a statutory power under certain Acts or rules framed there under
and the petitioner alleges a breach on the part of the state.
III. Where the contract entered into heaven between the state and the person
aggrieved is non-statutory and purely contractual and the rights and liabilities of
the parties are governed by the terms of the contract and the petitioner
complains about breach of such contract by the State.
IV. Where the contract entered into between the State and the person aggrieved
is non statutory and purely contractual, but such a contract has been cancelled
on a ground de hors any of the terms of the contract, and which is per se
violative of Article 14 of the Constitution.
A. I, III
B. II, IV
C. II, III, IV
D. All of them
Ans. (D)
91. The circumstances in which the creditor must make disclosure to the
proposed surety are:
I. Where the surety has asked specific questions to the creditor
II. Where the bank misleads the surety by volunteering only part of the truth
III. Where the surety makes a statement in the creditor’s presence that
demonstrates that he entirely misunderstands the principal-debtor’s position
IV. Where there is anything that might not naturally be expected to take place
between the principal-debtor and the creditor
A. II, III
B. I, IV
C. I, II
D. All of them
Ans. (D)
92. The conditions which entitle an agent to exceed his authority under the
doctrine of necessity are:
A. That he could not communicate with his principal
B. That the course he took was necessary in the sense that it was in the
circumstances the only reasonable and prudent course to take
C. That he acted bona fide in the interest of the parties concerned
D. All of them
Ans. (D)
93. The consideration for a family arrangement may be preservation of

family property, preservation of peace and honour of the family or the
avoidance of litigation; or avoiding the possibility of a future dispute. In
which of the following cases it was held?
A. Sundar Sahu Gountia v. Chamra Sahu Gauntia
B. Dwarampudi Nagaratnamba v. Kunuku Ramayya
C. Balbhaddar Prasad v. Dhanpat DayaI
D. None of these
Ans. (A)
94. The creditor may file a suit at his option only against the surety. In
which of the following cases it was upheld?
A. K. C. Skaria v. The Government of State of Kerala
B. Purabi Dasgupta v. A run Kumar

C. Infrastructure Leasing and Financial Services Ltd. v. Vijay V. Prabhu
D. None of these
Ans. (C)
95. The decisions of the expert or technical or commercial committees in

scrutinizing the tenders under Section 10 of the Indian Contract Act, 1872
will not be interfered unless:
A. the decision is taken with a mala fide intention
B. the decision is arbitrary
D. None of these
Ans. (C)
96. The defence of invalidity of contract for non-compliance of Article 299

must be specifically pleaded, unless it is patent from allegations in the
plaint or evidence adduced by the plaintiff. This question has arisen in
which of the following types of cases:
A. cases under ss. 7 (d) and 9A of the Representation of People’s Act, 1951 in
connection with disqualification from being elected to the Parliament of state
legislature
B. where the contracts did not comply with the exact requirements of Article
299 (1)
C. contracts entered in the exercise of statutory powers
D. All of them
Ans. (D)
97. The doctrine of apparent authority applies:
I. where a person allows another who is not his agent to appear as his agent
II. where a principal allows his agent to appear to possess more authority than
he actually has
III. where the principal reserves or limits the authority of an agent which the
agent would have in ordinary course of business, but does make this known to
third parties
IV. where the principal allows it to appear that the agent has authority although
his authority has been terminated
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)
98. The doctrine of privity means:
A. That a person cannot acquire rights to liabilities arising under a contract to

which he is not a party
B. That a person cannot be subject to liabilities arising under a contract to which

he is not a party
C. That a contract between A and B can affect the legal rights of C indirectly
D. All of them
Ans. (D)
99. The duty of the disclosure is limited to cases of:
A. unusual features of the transaction
B. unusual features of the risk
C. both (A) and (B)
D. None of these
Ans. (A)
100. The duty of utmost good faith is of universal application to all policies
of insurance although there are differences in the detail affecting the way in
which the duty is applied. In practical application it means that either
party has the right to avoid the contract if:
A. there has been a failure by the other party to disclose a material fact
B. that there has been on the part of the other party a misrepresentation of a
material fact
D. None of these
Ans. (C)
101. The English Unfair Contract Act, 1977 covers terms:
A. marking the liability or its enforcement subject to restrictive or onerous

conditions
B. excluding or restricting any right or remedy in respect of liability, or

subjecting a person to any prejudice in consequence of his pursuing any right or
remedy
C. excluding or restricting rules of evidence or procedure
D. All of them
Ans. (D)
102. The extent of an agent’s authority, whether express or implied,

depends upon:
A. The nature of act or business for which he has been appointed
B. Things which are incidental to the business or are usually done in carrying it
out
C. The usual customs and usages of the trade
D. All of them
Ans. (D)
103. The extent of the liability under an indemnity depends on:

A. the nature and terms of the contract
B. the case which must be governed by his own facts and circumstances
C. both (A) and (B)
D. None of these
Ans. (C)
104. The final draft of the Indian Contract Act, 1872 was the work of:
A. Sir James Fitzjames Stephen
B. Sir Frederick Pollock
D. both (A) and (B)
Ans. (D)
105. The functions of the provisions of Section 11 of the Indian Contract

Act, 1872 relating to personal competency is ___________.
A. to protect those whose mental powers are undeveloped or underdeveloped
B. preventing them from doing themselves an injury by their legal declarations
C. both (A) and (B)
D. None of these
Ans. (C)
106. The general principle of the common law is that in the formation of a
contract:
A. the consideration is given
B. the consideration is to accepted in exchange of a promise
C. both (A) and (B)
D. None of these
Ans. (C)
107. The grounds on which administrative action would be subject to

control by judicial review could be classified as:
A. illegality (namely, failure to give effect to the law that regulates the decision
making power)
B. irrationality, namely Wednesbury unreasonableness, the question ‘whether or

not they [the local authority] have taken into account matters which they ought
not have taken into account, or … have refused to take into account or neglected
to take into account matters which they ought to take into account’
C. procedural impropriety
D. All of them
Ans. (D)
108. The guarantor’s right to indemnification is a right to be reimbursed:
I. the amount which he actually paid for the principal- debtor – with interest
II. because, he is entitled to full indemnification from the principal-debtor
A. I is true but II is false
B. I is false but II is true
C. both (I) and (II) are true
D. None of these
Ans. (C)
Multiple Choice Questions on the Law of Contract (Indian Contract Act)
C. both (A) and (B)
D. None of these
Ans. (B)

D. None of these
Ans. (A)

C. both (A) and (B)
D. None of these
Ans. (C)

C. both (A) and (B)
D. None of these
Ans. (C)
D. None of these
Ans. (A)

D. None of these
Ans. (A)
D. None of these
Ans. (B)
C. both (A) and (B)
D. None of these
Ans. (C)

i.e., A, B and C.
D. None of these
Ans. (C)




D. None of these
Ans. (C)

D. None of these
Ans. (C)

D. All of them
Ans. (D)

goods.

D. None of these
Ans. (C)

D. None of these
Ans. (B)

becomes insolvent.
D. None of these
Ans. (C)


subsequent rise
the subsequent rise
d. None of these
Ans. (C)

per cent per month.
d. None of these
Ans. (B)

money.
D. None of these
Ans. (A)
the contract.
d. None of these
Ans. (C)



D. None of these
Ans. (B)

D. None of these
Ans. (A)

seventh night.


D. None of these
Ans. (A)
as his own.
D. None of these
Ans. (C)


investments
D. None of these
Ans. (C)
sustained

thereby sustained

sustained
D. None of these
Ans. (C)


D. None of these
Ans. (C)

B. A is discharged
D. None of these
Ans. (C)
D. None of these
Ans. (B)


D. None of these
Ans: C

D. None of these
Ans: A

causes loss to B
D. None of these
Ans: B

being married to B.
D. None of these
Ans: B




have been delivered
D. None of these
Ans: C
caps.

delivery


D. None of these
Ans: A

D. None of these
Ans: C




D. None of these
Ans: C

D. Both (A) and (C)
Ans: D
D. None of these
Ans: C


neglect or refusal


D. None of these
Ans: A

rendered
rendered
D. None of these
Ans: C
post.
D. None of these
Ans: B
repudiate the sale:
D. None of these
Ans: C
D. None of these
Ans: C
D. None of these
Ans: C

so doing.
D. None of these
Ans: C

D. None of these
Ans: C
D. None of these
Ans: C

C. The sale is good
D. None of these
Ans: C

D. None of these
Ans: C


D. None of these
Ans: C


reasonable
D. None of these
Ans: A

arrangement
arrangement
arrangement
D. None of these
Ans: B


D. None of these
Ans: C




D. None of these
Ans: C

D. None of these
Ans: A

rice supplied.
D. None of these
Ans: C
D. None of these
Ans: B

D. None of these
Ans: C
D. Both (A) and (B)
Ans: D

that fact.
goods
of the goods
the goods
D. None of these
Ans: C

due to B.
D. None of these
Ans: C
calf.
D. None of these
Ans: C

injured.
D. None of these
Ans: C
lifetime
lifetime
D. None of these
Ans: B
arrangement.
into
D. None of these
Ans: C
debt.
D. None of these
Ans: A
D. None of these
Ans: C
D. Both (A) and (B)
Ans: B

D. None of these
Ans: A

A. II, III, IV
B. IV, V
C. I, V
D. All of them
Ans. (D)
A. blue pencil
B. white pencil
C. black pencil
D. None of these
Ans. (A)

Ans. (A)
C. both (A) and (B)
D. None of these
Ans. (C)

D. both (A) and (B)
Ans. (D)

A. Section 7
B. Section 16
C. Section 20
D. None of these
Ans. (B)
A. Section 176
B. Section 179
C. Section 180
D. Section 178
Ans. (C)

D. All of them
Ans. (D)

contract and:

D. All of them
Ans. (D)
I. Section 39
II. Section 53
III. Section 54
IV. Section 55
V. Section 63
VI. Section 67
A. II, III, IV
B. IV, V
C. I, VI
D. All of them
Ans. (D)

rule to operate:
been engaged
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)

the principal
D. None of these
Ans. (C)
Contract Act, 1872:
D. None of these
Ans. (C)



deceased holder
D. all of them
Ans. (D)
D. All of them
Ans. (D)



D. None of these
Ans. (B)
1872 is found in:
D. None of these
Ans. (C)
D. All of them
Ans. (D)
Commission because:

proceedings
judgment
D. All of them
Ans. (D)

A. The Hindu Law
C. both (A) and (B)
D. None of these
Ans. (C)

A. I, III
B. II, IV
C. II, III, IV
D. All of them
Ans. (D)
A. II, III
B. I, IV
C. I, II
D. All of them
Ans. (D)
D. All of them
Ans. (D)

D. None of these
Ans. (A)
D. None of these
Ans. (C)
D. None of these
Ans. (C)

legislature
299 (1)
D. All of them
Ans. (D)
he actually has
third parties
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)


he is not a party
D. All of them
Ans. (D)
C. both (A) and (B)
D. None of these
Ans. (A)
material fact
D. None of these
Ans. (C)

conditions

remedy
D. All of them
Ans. (D)

depends upon:
out
D. All of them
Ans. (D)
C. both (A) and (B)
D. None of these
Ans. (C)
D. both (A) and (B)
Ans. (D)

C. both (A) and (B)
D. None of these
Ans. (C)
contract:
C. both (A) and (B)
D. None of these
Ans. (C)

making power)
D. All of them
Ans. (D)
D. None of these
Ans. (C)
C. both (A) and (B)
D. None of these
Ans. (B)

D. None of these
Ans. (A)

C. both (A) and (B)
D. None of these
Ans. (C)

C. both (A) and (B)
D. None of these
Ans. (C)

D. None of these
Ans. (A)

D. None of these
Ans. (A)
D. None of these
Ans. (B)

C. both (A) and (B)

D. None of these
Ans. (C)

i.e., A, B and C.
D. None of these
Ans. (C)




D. None of these
Ans. (C)


D. None of these
Ans. (C)

D. All of them
Ans. (D)

goods.

D. None of these
Ans. (C)
D. None of these
Ans. (B)

becomes insolvent.
D. None of these
Ans. (C)


subsequent rise
the subsequent rise
d. None of these
Ans. (C)

per cent per month.
d. None of these
Ans. (B)

money.
D. None of these
Ans. (A)
the contract.
d. None of these
Ans. (C)



D. None of these
Ans. (B)


D. None of these
Ans. (A)

seventh night.


D. None of these
Ans. (A)
as his own.
D. None of these
Ans. (C)


investments
D. None of these
Ans. (C)
sustained

thereby sustained

sustained
D. None of these
Ans. (C)

D. None of these
Ans. (C)
B. A is discharged
D. None of these
Ans. (C)
D. None of these
Ans. (B)



D. None of these
Ans: C

D. None of these
Ans: A

causes loss to B
D. None of these
Ans: B

being married to B.
D. None of these
Ans: B



have been delivered
D. None of these
Ans: C
caps.

delivery


D. None of these
Ans: A
D. None of these
Ans: C




D. None of these
Ans: C

D. Both (A) and (C)
Ans: D
D. None of these
Ans: C


neglect or refusal


D. None of these
Ans: A

rendered
rendered
D. None of these
Ans: C
post.
D. None of these
Ans: B
repudiate the sale:
D. None of these
Ans: C
D. None of these
Ans: C
D. None of these
Ans: C

so doing.
D. None of these
Ans: C

D. None of these
Ans: C
D. None of these
Ans: C

C. The sale is good
D. None of these
Ans: C

D. None of these
Ans: C


D. None of these
Ans: C


reasonable
D. None of these
Ans: A

arrangement
arrangement
arrangement
D. None of these
Ans: B


D. None of these
Ans: C




D. None of these
Ans: C

D. None of these
Ans: A

rice supplied.
D. None of these
Ans: C
D. None of these
Ans: B

D. None of these
Ans: C
D. Both (A) and (B)
Ans: D

that fact.
goods
of the goods
the goods
D. None of these
Ans: C

due to B.
D. None of these
Ans: C
calf.
D. None of these
Ans: C

injured.
D. None of these
Ans: C
lifetime
lifetime
D. None of these
Ans: B
arrangement.
into
D. None of these
Ans: C
debt.
D. None of these
Ans: A
D. None of these
Ans: C
D. Both (A) and (B)
Ans: B

D. None of these
Ans: A

A. II, III, IV
B. IV, V
C. I, V
D. All of them
Ans. (D)
A. blue pencil
B. white pencil
C. black pencil
D. None of these
Ans. (A)

Ans. (A)
C. both (A) and (B)
D. None of these
Ans. (C)

D. both (A) and (B)
Ans. (D)

A. Section 7
B. Section 16
C. Section 20
D. None of these
Ans. (B)
A. Section 176
B. Section 179
C. Section 180
D. Section 178
Ans. (C)

D. All of them
Ans. (D)

contract and:

D. All of them
Ans. (D)
I. Section 39
II. Section 53
III. Section 54
IV. Section 55
V. Section 63
VI. Section 67
A. II, III, IV
B. IV, V
C. I, VI
D. All of them
Ans. (D)

rule to operate:
been engaged
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)

the principal
D. None of these
Ans. (C)
Contract Act, 1872:
D. None of these
Ans. (C)



deceased holder
D. all of them
Ans. (D)
D. All of them
Ans. (D)



D. None of these
Ans. (B)
1872 is found in:
D. None of these
Ans. (C)
D. All of them
Ans. (D)
Commission because:

proceedings
judgment
D. All of them
Ans. (D)

A. The Hindu Law
C. both (A) and (B)
D. None of these
Ans. (C)

A. I, III
B. II, IV
C. II, III, IV
D. All of them
Ans. (D)
A. II, III
B. I, IV
C. I, II
D. All of them
Ans. (D)
D. All of them
Ans. (D)

D. None of these
Ans. (A)
D. None of these
Ans. (C)
D. None of these
Ans. (C)

legislature
299 (1)
D. All of them
Ans. (D)
he actually has
third parties
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans. (D)


he is not a party
D. All of them
Ans. (D)
C. both (A) and (B)
D. None of these
Ans. (A)
material fact
D. None of these
Ans. (C)

conditions

remedy
D. All of them
Ans. (D)

depends upon:
out
D. All of them
Ans. (D)
C. both (A) and (B)
D. None of these
Ans. (C)
D. both (A) and (B)
Ans. (D)

C. both (A) and (B)
D. None of these
Ans. (C)
contract:
C. both (A) and (B)
D. None of these
Ans. (C)

making power)
D. All of them
Ans. (D)
D. None of these
Ans. (C)
1. A letter of acceptance sufficiently stamped a duly addressed is put into a

course of transmission. There is ____________
A. a contract voidable at the option of acceptor
B. contract voidable at the option of offerer
C. a voidable contract.
D. no contract at all.
ANSWER: C
2. Acceptance may be revoked by the acceptor _____________.
A. before the letter of acceptance reaches the offerer.
B. at any time
C. after the letter of acceptance reaches the offerer.
D. before the death of acceptor.
ANSWER: A
3. An advertisement to sell a thing by auction is _____________.
A. an invitation to offer.
B. an offer.
C. no offer at all.
D. a contract
ANSWER: A
4. On the face of the ticket for a journey the words for conditions see
back are printed in a small print. The passenger _____________.
A. is bound by the conditions whether he takes care to read them or not.
B. is not bound by the conditions
C. may not take note of the conditions.
D. . may take note of the conditions.
ANSWER: A
5. Consideration must move at the desire of _____________.
A. the promisee
B. the promisor
C. promisor or any third party
D. both the promisor and the promise
ANSWER: B
6. Consideration _____________.
A. must move from the promise.
B. may move from the promisee or any other person
C. may from the third party.
D. may move form the promisor.
ANSWER: B
7. An agreement not enforceable by law is said to _____________.
A. voidable.
B. void.
C. valid.
D. unenforceable.
ANSWER: B
8. A contract is _____________.
A. an agreement plus a legal obligation
B. legal obligation.
C. consensus ad idem.
D. an agreement plus a legal object.
ANSWER: A
9. A specific offer can be accepted by ______
A. any person.
B. any friend of offered.
C. any friend of offeree.
D. a person to whom it is made.
ANSWER: D
10. A person who is not a party to contract _____________.
A. cannot sue.
B. can sue.
C. can sue only in well- recognized cases.
D. can sue under contract of guarantee.
ANSWER: C
11. An agreement made without consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
12. A person is usually of unsound mind, but occasionally of sound
mind_____________.
A. he may enter into a contract when he is of sound mind.
B. he may not make a contract when even when he is of sound mind.
C. he cannot enter into a contract at all.
D. he can enter all the time.
ANSWER: A
13. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. void ab initio
D. invalid.
ANSWER: C
14. Where consent is caused by fraud or misrepresentation, the contract is
A. voidable at the option of the aggrieved party
B. void.
C. unenforceable.
D. not affected in any manner.
ANSWER: A
15. Consent given to a contract under some misrepresentation by the
other party makes the contract_____________.
A. void.
B. invalid.
C. unenforceable.
D. . voidable.
ANSWER: D
16. Fraud exists when it is shown that a false representation had been
made_____________.
A. knowingly.
B. unknowingly.
C. unintentionally.
D. recklessly, not caring whether true or false.
ANSWER: A
17. Which of the relationships raise presumption of undue influence
_____
A. landlord and tenant
B. parents and child.
C. doctor and patient.
D. husband and wife.
ANSWER: B
18. If there is error in causal, the contract is _____________.
A. void.
B. voidable.
C. valid.
D. illegal.
ANSWER: B
19. The collateral transaction to an illegal agreement are_________.
A. void.
B. illegal.
C. voidable.
D. not affected at all.
ANSWER: B
20. An agreement made with an alien enemy is _________.
A. unlawful on the ground of public policy.
B. unlawful because it becomes difficult to be performed.
C. valid.
D. voidable.
ANSWER: A
21. In which year IRDA Act passed in __________
A. 1999
B. 2000
C. 2001
D. 2002
ANSWER: A
22. When the promisee refuses to accept performance from the promiser
who offers to perform, it is
A. attempted performance
B. vicarious performance
C. tender.
D. frustration of contract
ANSWER: A
23. When a party to a contract transfers his contractual rights to another,
it is known as ________.
A. rescission of contract
B. waiver of contract.
C. discharge of contract.
D. assignment of contract
ANSWER: D
24. Assignment by operation of law takes place_______________.
A. . by the mutual consent of the parties.
B. by the will of either party.
C. when the subject matter of a contract cases to exist.
D. by the death of a party to a contract.
ANSWER: D
25. A who ooze 10,000 to B dies living and estate of Rs 6,000. The legal
representatives of A are _______________.
A. liable for rs 10,000
B. liable for rs 6,000.
C. no liable at all.
D. liable for Rs 3,000.
ANSWER: B
26. If a contract contains an undertaking to perform impossibility, the
contract is __________.
A. void ab initio.
B. void.
C. voidable at the option of the plaintiff.
D. illegal.
ANSWER: A
27. An agreement to do an act impossible in itself__________.
A. is void.
B. is voidable.
C. is void ab initial.
D. becomes void when impossibility is discovered.
ANSWER: A
28. Were a contact could not be performed because of the default by a
third party on whose work the promiser relied, it ______________.
A. it is not discharged.
B. is discharged.
C. becomes void.
D. becomes voidable.
ANSWER: A
29. The Head Quarters of IRDA in which place ________
A. Chennai
B. Delhi
C. Coimbatore
D. Bangalore
ANSWER: B
30. Specific performance may be ordered by the court when
______________.
A. . the contract is voidable
B. the damages are an adequate remedy
C. the damages are not an adequate remedy.
D. the contract is uncertain.
ANSWER: C
31. The measure of damages in case of breach of a contract is the
difference between the
_______________.
A. contract price and the market price at the date of breach.
B. contract price when the maximum market price during the terms of the
contract.
C. contract and the price at which the plane tiff might have sold the
goods.
D. contract price and the price fixed by the court. Answer: A
ANSWER: A
32. Anticipatory breach of a contract takes place _____________
A. During the performance of the contract
B. At the time when the performance is due
C. Before the performance is due
D. At the time when the contract is entered into
ANSWER: C
33. In case of wrongful dishonour of a cherub by a banker having
sufficient fund to the credit of the customer, the court nay award
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
D. Contemptuous damages
ANSWER: C
34. The contract of indemnity is a _____________
A. Contingent contract
B. Wagering contract
C. Quasi-contract
D. Void agreement
ANSWER: A
35. S and P go into a shop. S says to the shopkeeper, C let P have the
goods, and if he does not pay you, I will. This is a __________
A. contract of guarantee
B. contract of indemnity.
C. Wagering contract
D. Quasi-contract
ANSWER: A
36. A bailer is a _________
A. a right of a particular lien over the goods bailed
B. a right of generation
C. a right of both particular and general lien
D. no lien at all over the goods bailed
ANSWER: A
37. The position of a finder of lost goods is that of a ______________
A. Bailer
B. Bailee
C. Surety
D. Principal debtors
ANSWER: A
38. The gratuitous bailer is liable to the bailer for the defects in the goods
bailed_______________
A. Even if he is not aware of them
B. Only if he is aware of them
C. In all cases of loss
D. In certain case of loss
ANSWER: B
39. A who purchases certain goods from B by a misrepresentation
pledges them with C . the pledge is _________________
A. valid
B. void
C. voidable
D. invalid
ANSWER: B
40. In a sale, the property in goods_______________
A. Is transferred to the buyer.
B. Is yet to be transferred to the buyers.
C. May be transferred at a future time.
D. Is transferred when goods are delivered to the buyer.
ANSWER: A
41. In a sale, if the goods are destroyed, the loss falls
on________________
A. The buyer.
B. The seller.
C. Partly on the buyer and partly on the seller.
D. The seller if price has not been paid.
ANSWER: A
42. The term property as used in the Sale of Goods Act, 1930
means_____________
A. Possession.
B. Ownership.
C. Ownership and possession both.
D. the subject matter of contract of sale.
ANSWER: B
43. If a price is not determined by the parties in a contract of sale, the
buyer is bound to
pay________________
A. The price demanded by the seller.
B. A reasonable price.
C. The price which the buyer thinks is reasonable.
D. The price to be determined by a third independent person.
ANSWER: B
44. The doctrine of caveat emptor applies______________
A. In case of implied conditions and warranties
B. When the buyer does not intimate the purpose to the seller and
depends upon his own skill and judgment.
C. When goods are sold by sample.
D. When goods are sold by description.
ANSWER: A
45. If a sale is by sample as well as by description, the implied condition
is that the goods shall correspond
with_______________
A. Sample.
B. Description.
C. Both sample and description.
D. Either sample or description.
ANSWER: C
46. In a sale, there is an implied condition on the part of the seller that
he______________
A. Has a right to sell the goods.
B. Is in possession of the goods.
C. Will have the right to sell.
D. Will acquire the goods.
ANSWER: A
47. A condition is a stipulation which is__________
A. Essential to the main purpose of contract of sale.
B. Not essential to the main purpose of contract of sale.
C. Collateral to the main purpose of contract of sale.
D. Not mandatory.
ANSWER: A
48. In case of breach of a warranty, the buyer can__________
A. Cannot return the goods.
B. Repudiate the contract.
C. Return the goods.
D. Refuse to pay the price.
ANSWER: B
49. Insurance act was established_____________
A. 1938
B. 1939
C. 1940
D. 1941
ANSWER: A
50. Life insurance act was established ___________
A. 1956
B. 1957
C. 1958
D. 1940
ANSWER: A
51. The main objective of a contract of sale is _____________

A. Transfer of possession of goods.
B. Transfer of property in goods.
C. Delivery of goods.
D. Payment of price.
ANSWER: B
52. Risk follows ownership__________
A. Only when goods have been delivered.
B. Only when price has been paid.
C. Whether delivery has been made or not.
D. Even when price has not been paid.
ANSWER: A
53. In an agreement to sell, the seller gets for price if________
A. The goods have been delivered to the buyer.
B. The goods have not been delivered to the buyer.
C. There is specific agreement.
D. It is not a specific agreement.
ANSWER: C
54. In a contract of sale, unless goods are ascertained, there
is______________
A. A sale.
B. An agreement to sell.
C. A void agreement.
D. An unenforceable agreement.
ANSWER: B
55. Where there is an unconditional contract for the sale of specific goods
in a deliverable state, the property in the goods passes to the buyer
when_______________
A. The goods are delivered to the buyer.
B. The price is paid by the buyer.
C. The contract is made.
D. The buyer accepts the good.
ANSWER: C
56. If the contract is silent as to the party who is to appropriate the
goods__________
A. The buyer is to appropriate
B. Goods seller is to be appropriate.
C. The party who under the contract is first to act is to appropriate.
D. Any party may appropriate.
ANSWER: C
57. In a C.I.F., contract the property in goods passes from the seller to the
buyer when the______________
A. Goods are shipped
B. Goods are received by the buyer
C. Contract is entered into.
D. Price is paid.
ANSWER: A
58. There is a constructive delivery of goods_____________
A. a. When the seller hands over to the buyer the key of the warehouse
where the goods are lying.
B. a. Where a third person in possession of the goods acknowledged to
the buyer that he holds them on his behalf
C. When the seller physically delivers the goods to the buyers.
D. When the seller asks the buyer to take delivery of the goods.
ANSWER: B
59. The contractual capacity of a company is regulated
by_____________.
A. its memorandum of association and the provision of the companies
act, 1956.
B. the terms of contract entered into with a third party.
C. its article of association.
D. its prospectus.
ANSWER: A
60. A seller delivers goods in excess of the quantity ordered for. The
buyer may_________
A. Accept the whole
B. Rejects the whole.
C. Accept the goods ordered for and return the excess.
D. Accept the part of goods.
ANSWER: A
61. The sale of goods act was enacted during
A. 1930.
B. 1931.
C. c1932.
D. 1933
ANSWER: A
62. A contract of sale may be __________.
A. absolute only.
B. condition only.
C. absolute and conditional.
D. indemnity.
ANSWER: C
63. The term goods exclude_________.
A. stock and shares.
B. growing crops.
C. actionable claim.
D. services.
ANSWER: C
64. Which of the following is not an implied condition in a contract of
sale _________.
A. Condition as to title.
B. Condition as to description
C. Condition as to freedom from the encumbrance.
D. Condition as to a sample
ANSWER: C
65. Gives the buyer only a right to claim damages is known
as___________.
A. condition.
B. guarantee.
C. warranty.
D. indemnity.
ANSWER: C
66. In a hire purchase agreement, the hirer ____________.
A. has an option to buy the goods.
B. must but the goods.
C. must return the goods.
D. is not given the possession of the goods
ANSWER: A
67. A contract for the sale of furniture goods is_____________.
A. sale.
B. agreement to sell.
C. void.
D. voidable.
ANSWER: B
68. The term, goods for the purpose of sale of goods act, does not include
_________.
A. money.
B. actionable claims.
C. immovable property.
D. all of these.
ANSWER: B
69. The sale of goods act, 1930 deals with_________.
A. movable goods only.
B. immovable goods only.
C. both movable and immovable goods
D. all goods except ornaments.
ANSWER: A
70. An unpaid seller has not given notice of resale to the buyer. On the
resale there is a loss____________.
A. the unpaid seller can recover it from the buyer.
B. the unpaid seller cannot recover it from the buyer
C. the buyer can recover it from an unpaid seller.
D. the buyer must compensate the unpaid seller.
ANSWER: B
71. If the goods are rejected by the buyer and the carrier or the bailee
continuous to be in possession of them the transit ________.
A. is deemed to be an end.
B. is not deemed to be an end.
C. commences.
D. not yet commences.
ANSWER: B
72. An unpaid seller can excise the right of stoppage in transit when the
carrier holds the goods ____________.
A. as sellers agent.
B. as buyer s agent.
C. as agent of both of them.
D. in his own name.
ANSWER: D
73. The right of lien excised by an unpaid seller is to ___________.
A. retain possession.
B. regain possession.
C. recovery price and other charges.
D. Damages.
ANSWER: A
74. An unpaid seller can excises his rights of lien ___________.
A. where the goods have been sold on credit and terms of credit has not
expired
B. where the buyer has not become insolvent.
C. for the price of the goods.
D. for the price of the goods and expenses.
ANSWER: C
75. The lien of an unpaid seller depends on _____________.
A. possession.
B. title.
C. ownership.
D. possession and ownership.
ANSWER: A
76. Where the neglected or refusal of the buyer to take delivery of goods
amounts to a repudiation of the
contract, the seller may sue for the __________.
A. price of damages.
B. price only.
C. damages only.
D. both for price and damages.
ANSWER: A
77. A seller delivers goods in excess of the quantity ordered for. The
buyer may_______.
A. accept the whole.
B. reject the whole.
C. accept the goods ordered for and returns.
D. accept the part of goods.
ANSWER: A
78. Unless otherwise agreed, where goods are sent by the seller to the
buyer by a route involving a sea transit of the seller____
A. must inform the buyer in time to get the goods insured
B. may insure the goods.
C. must insure the goods.
D. no need to insure the goods.
ANSWER: A
79. When there is n specific agreement as to place, the goods sold are to
be delivered at the place__________.
A. at which they are at the time of sale.
B. of the buyer.
C. decide by the seller.
D. to be determined by the seller.
ANSWER: A
80. There is a constrictive delivery of goods ___________.
A. when the seller hands over to the buyer to the key of warehouse where
the goods are lying
B. where a third person in possession of the goods acknowledgement to
the buyer that he holds them on his behalf.
C. when the seller physically delivers the goods
D. possession and ownership
ANSWER: B
81. Where there is a contract for the sale of unascertained goods, the
property in goods___________.
A. passes when the buyer pays the price.
B. does not pass until the goods are ascertained .
C. when the contract is entered into.
D. when the buyer accepts the goods.
ANSWER: B
82. where there is an unconditional contract for the sale of specific goods
in a deliverable state, the property in the goods passes to the buyer
when________.
A. the goods are delivered to the buyer.
B. the price is paid by the buyer.
C. the contract is made.
D. the buyer accepts the goods.
ANSWER: C
83. In an agreement to sell, the seller can sue for price if_____________.
A. the goods have been delivered to the buyer.
B. the goods have not been delivered to the buyer.
C. there is a specific agreement.
D. there is a general agreement.
ANSWER: C
84. Risk follows ownership ___________.
A. only when goods have been delivered .
B. only when price has been paid.
C. whether delivery has been made or not.
D. even when the price has not been paid.
ANSWER: C
85. How many parties are there to a Promissory note?
A. Two parties
B. one party
C. four parties
D. five parties
ANSWER: C
86. The main objective of a contract of sale is ______________.
A. transfer of possession of goods.
B. transfer of property in goods from seller to buyer.
C. delivery of goods.
D. Payment of price.
ANSWER: B
87. Public Law is divided into ________ categories?
A. three
B. four
C. two
D. none of these
ANSWER: B
88. In the case of breach of a warranty, the buyers can __________.
A. repudiate the contract.
B. claim damage only.
C. refuses to pay the price.
D. refuses to take the delivery of the goods.
ANSWER: B
89. A condition is a stipulation which is____________.
A. essential to the main purpose of contract of sale.
B. not essential to the main purpose of the contract of sale.
C. collateral to the main purpose of contract of sale .
D. additional security.
ANSWER: A
90. In a sale, there is an implied condition on the part of the seller that he
__________.
A. Has right to sell the goods.
B. Is in position of the goods.
C. Will have the right to sell.
D. Has the right to sell the goods
ANSWER: A
91. If sale is by sample as well as by description, the implied condition is
that the goods shall correspond with ____________.
A. sample.
B. description.
C. both sample and description.
D. either sample or description.
ANSWER: C
92. The doctrine of caveat emptor applies______________
A. When the buyer does not intimate the purpose to the seller and
depends upon his own skill and judgment
B. In case of implied conditions and warranties.
C. When goods are sold by sample.
D. When goods are sold by description.
ANSWER: B
93. If a price is not determined by the parties in a contract of sale, the
buyer is bound to
pay________________
A. The price demanded by the seller
B. A reasonable price
C. The price which the buyer thinks is reasonable.
D. The price to be determined by a third independent person
ANSWER: B
94. The term property as used in the Sale of Goods Act, 1930
means_____________
A. Possession.
B. Ownership.
C. Ownership and possession both.
D. The subject matter of contract of sale.
ANSWER: B
95. In a sale, if the goods are destroyed, the loss falls
on________________
A. The buyer.
B. The seller.
C. Partly on the buyer and partly on the seller
D. The seller if price has not been paid.
ANSWER: A
96. In a sale, the property in goods_____________________
A. Is transferred to the buyer.
B. Maybe transferred at a future time.
C. Is transferred when the buyer pays the price.
D. b. Is transferred when goods are delivered to the buyer.
ANSWER: A
97. A who purchases certain goods from B by a misrepresentation
pledges them with C. the pledge is _________________
A. valid
B. void
C. voidable
D. invalid
ANSWER: B
98. A bailee fails to return the goods according to the bailers direction.
He takes reasonable care of the goods but still the goods are lost. The loss
will fall on____________________
A. the bailee
B. the bailer
C. on both of them
D. neither of them
ANSWER: A
99. If the goods of the bailer get missed up with the like goods of the
bailer by the act of god, the mixture belongs to the bailer and the bailer in
proportion to their shares but the cost of separation will have to be borne
by_____________
A. the bailee
B. the bailer
C. both of them in proportion to the value of their goods
D. Third party
ANSWER: A
100. The gratuitous bailer is liable to the bailer for the defects in the
goods bailed_______________
A. Even if he is not aware of them
B. Only if he is aware of them
C. In all cases of loss
D. In certain case of loss
ANSWER: B

A. Bailer
B. Bailee
C. Surety
ANSWER: A
102. A bailer is a _________
ANSWER: A
goods and if he does not pay you I will. This is a __________
B. Contract of indemnity
D. Quasi-contract
ANSWER: A
C. Quasi-contract
D. Void agreement
ANSWER: A
105. Ordinary damages are damages which _____________
A. Arise in the usual course of things from the breach
B. Which are in the contemplation of the parties at the time when the
contract is made?
C. Are agreed in advance
D. Are given by way of punishment for breach of contract
ANSWER: A
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
ANSWER: C
ANSWER: C
108. The case of Hadely Bv. Baxendale (1854) 8 Ex .Ch 341 deals with
A. Anticipatory breach of contract
B. Quantum of damages
C. Supervening impossibility
D. Quasi-contract
ANSWER: B
_______________.
contract.
goods.
D. contract price and the price fixed by the court.
ANSWER: A
______________.
A. the contract is voidable.
B. the damages are an adequate remedy.
ANSWER: C
111. The foundation of modern law damages was laid down in
___________________.
A. Tinn v. Hoffman.
B. Taylor v. Caldwell.
C. Hadley v. Baxendale.
D. Addis v. Gramophone co.
ANSWER: C
112. The court may grant rescission were the contract is __________.
A. voidable at the option of the plaintiff
B. void.
C. unenforceable.
D. illegal.
ANSWER: A
113. A undertakes to paint a picture of B. he die before he paints the
picture. The contract ________.
A. is discharged by death
B. becomes voidable at the options of b.
C. becomes of voidable at the options of legal representatives of a.
D. will have to performed by legal representatives of A.
ANSWER: A
114. The case of Satyabrata Ghose V. Mugneeram Bangur and co., (195d.
SC 44) deals with__________
A. agreement opposed to public policy.
B. supervening impossibility.
C. contract of guarantee.
D. agencies.
ANSWER: A
115. A creditor agrees with his debtors and a third party to accept that the
third as his third patty as debtor the contract is discharged by
________________.
A. alteration.
B. waiver.
C. rescission.
D. performance.
ANSWER: B
B. is discharged.
C. becomes void.
ANSWER: A
117. A contract has become more difficult of performance due to some
uncontemplated events or delays. The contract______________.
A. is discharged.
B. is not discharged.
C. becomes void.
ANSWER: B
118. A lends Rs 500 to B. he later tells B that he need not repay the
amount, the contract is discharged by __________.
A. breach
B. waiver.
C. notation.
D. performance.
ANSWER: B
119. The case of Taylor V. Coldwell, (188c. 3 B & S. 8b.6) deals with.
A. Discharge of contract by destruction of subject matter.
B. Anticipatory breach of contract
C. Discharge of contract by death of a party
D. Breach of contract.
ANSWER: A
120. If a new contract is substituted in place of an existing contract, it is
called________.
A. alteration.
B. rescission.
C. novation.
D. waiver.
ANSWER: C
121. An agreement to do an act impossible in itself_________.
A. is void.
B. is voidable.
D. becomes void when impossibility is discovered
ANSWER: A
A. void ab initio.
B. void.
C. voidable at the option of the plaintiff
D. illegal.
ANSWER: A
123. Owing to a strike in the factory of A, he is not able to supply the
goods to B as per the terms of the
agreement. The agreement in such a case
A. discharged.
C. becomes void.
D. is voidable
ANSWER: A
A. liable for rs 10,000.
ANSWER: B
A. by the mutual consent of the parties.
ANSWER: D
126. When two or more persons have made a joint promise, then unless a
contrary intention appears from the contract all such person must fulfil
the promise__________.
A. jointly.
B. severally.
C. jointly and severally.
D. jointly or severally.
ANSWER: A
127. Where the deports does not expressly intimate or were the
circumstances attending on the payment do not indicate any intention, the
creditor __________.
A. may apply it top any lawful debt due.
B. may apply it even to a time-barred debt.
C. it is not apply it even to a time-barred debt.
D. no loss.
ANSWER: A
it is known as_________.
A. rescission of contract.
C. discharge of contract
ANSWER: D
129. Sale of goods for cash is an example of__________.
A. mutual and independent promises.
B. mutual and dependent promises.
C. mutual and contract promises.
D. conditional and dependent promises.
ANSWER: C
who offers to perform, it is __________.
B. vicarious performance.
C. tender.
D. frustration of contract.
ANSWER: A
131. Each party is a promisor and a promise in case of
A. Past consideration.
B. Present consideration
C. Every contract.
D. Reciprocal promises.
ANSWER: D
132. Promises forming consideration for each other are known as
A. Independent promises.
B. Dependent promises.
C. Reciprocal promises.
D. Mutual promises.
ANSWER: C
133. The case of Nordenfelt V. Maxim Nordenfelt Gun Co., (190d.b.9
B.L.R 107 deals with.
A. Agreements in restraint of legal proceedings.
B. Minors agreement.
C. Agreements in restraint of trade.
D. Agreements in restraint of marriage.
ANSWER: C
134. An employee, by the terms of his service agreement, is prevented
from accepting a similar engagement after the termination of service. The
restraint is __________.
A. valid.
B. void.
C. illegal.
D. unenforceable.
ANSWER: B
135. Regulation as to the opening and closeting of business in a market
are
A. Not unlawful even if they are in restraint of trade.
B. Unlawful because they are restraint of trade.
C. Void.
D. Not valid.
ANSWER: A
136. Where both the parties to an agreement are under a mistake as a
matter of fact essential to the agreement, the agreement is
A. void.
B. voidable.
C. illegal.
ANSWER: A
137. Where consent is caused by fraud or misrepresentation, the contract
is _____________.
A. voidable at the option of the aggrieved party.
B. void.
C. unenforceable.
ANSWER: A
138. Flaw of capacity to contract may arise from _____________.
A. want of consideration.
B. unsoundness of mind.
C. illegality of object.
D. uncertainty of object.
ANSWER: B
139. Where there is no specific agreement as to place, the goods sold are
to be delivered at the place______________
A. At which they are at the time of sale.
B. To be determined by the seller
C. Desired by the buyer.
D. Of the buyer.
ANSWER: A
140. Contracts made before war with an alien enemy which are against
public policy are _____________.
A. suspended and are revived after the war is over.
B. dissolved.
C. not affected at all.
D. void ab initio.
ANSWER: B
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
mind_____________.
ANSWER: A
143. A minor enters into a contract for the purchase of certain
necessaries. In such a case_____________.
A. he is not personally liable to pay.
B. he is liable to pay.
C. his estate is liable to pay.
D. his guardian is liable to pay.
ANSWER: C
144. A minor, by misrepresenting his age, borrows some
money_____________.
A. he can be sued for fraud.
B. he cannot be sued for fraud.
C. he is liable to return the money.
D. he is not liable to return the money.
ANSWER: B
145. On attaining the age of majority a minors agreement
_____________.
A. can be ratified by him.
B. cannot be ratified by him.
C. becomes void.
D. becomes valid.
ANSWER: B
146. An agreement with or by a minor is _____________.
A. void.
B. voidable at the option of the minor.
C. voidable at the option of the other party.
D. valid.
ANSWER: A
147. A promise to subscribe to a charity. The promise is a
_____________.
A. voidable contract.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
148. An agreement made with out consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
149. Consideration in a contract _____________.
A. may be past, present, or future.
B. may be present or future only.
C. must be present only.
D. must be future only.
ANSWER: A
A. cannot sue.
B. can sue.
ANSWER: C

A. Bailer
B. Bailee
C. Surety
ANSWER: A
102. A bailer is a _________
ANSWER: A
D. Quasi-contract
ANSWER: A
C. Quasi-contract
D. Void agreement
ANSWER: A
contract is made?
ANSWER: A
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
ANSWER: C
ANSWER: C
D. Quasi-contract
ANSWER: B
_______________.
contract.
goods.
ANSWER: A
______________.
ANSWER: C
___________________.
A. Tinn v. Hoffman.
ANSWER: C
B. void.
C. unenforceable.
D. illegal.
ANSWER: A
ANSWER: A
D. agencies.
ANSWER: A
________________.
A. alteration.
B. waiver.
C. rescission.
D. performance.
ANSWER: B
B. is discharged.
C. becomes void.
ANSWER: A
A. is discharged.
C. becomes void.
ANSWER: B
A. breach
B. waiver.
C. notation.
D. performance.
ANSWER: B
ANSWER: A
called________.
A. alteration.
B. rescission.
C. novation.
D. waiver.
ANSWER: C
A. is void.
B. is voidable.
ANSWER: A
A. void ab initio.
B. void.
D. illegal.
ANSWER: A
A. discharged.
C. becomes void.
D. is voidable
ANSWER: A
ANSWER: B
ANSWER: D
A. jointly.
B. severally.
ANSWER: A
D. no loss.
ANSWER: A
ANSWER: D
ANSWER: C
C. tender.
ANSWER: A
C. Every contract.
ANSWER: D
D. Mutual promises.
ANSWER: C
ANSWER: C
A. valid.
B. void.
C. illegal.
D. unenforceable.
ANSWER: B
are
C. Void.
D. Not valid.
ANSWER: A
A. void.
B. voidable.
C. illegal.
ANSWER: A
is _____________.
B. void.
C. unenforceable.
ANSWER: A
ANSWER: B
D. Of the buyer.
ANSWER: A
B. dissolved.
D. void ab initio.
ANSWER: B
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
mind_____________.
ANSWER: A
ANSWER: C
money_____________.
ANSWER: B
_____________.
C. becomes void.
D. becomes valid.
ANSWER: B
A. void.
D. valid.
ANSWER: A
_____________.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
ANSWER: A
A. cannot sue.
B. can sue.
ANSWER: C

A. Bailer
B. Bailee
C. Surety
ANSWER: A
102. A bailer is a _________
ANSWER: A
D. Quasi-contract
ANSWER: A
C. Quasi-contract
D. Void agreement
ANSWER: A
contract is made?
ANSWER: A
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
ANSWER: C
ANSWER: C
D. Quasi-contract
ANSWER: B
_______________.
contract.
goods.
ANSWER: A
______________.
ANSWER: C
___________________.
A. Tinn v. Hoffman.
ANSWER: C
B. void.
C. unenforceable.
D. illegal.
ANSWER: A
ANSWER: A
D. agencies.
ANSWER: A
________________.
A. alteration.
B. waiver.
C. rescission.
D. performance.
ANSWER: B
B. is discharged.
C. becomes void.
ANSWER: A
A. is discharged.
C. becomes void.
ANSWER: B
A. breach
B. waiver.
C. notation.
D. performance.
ANSWER: B
ANSWER: A
called________.
A. alteration.
B. rescission.
C. novation.
D. waiver.
ANSWER: C
A. is void.
B. is voidable.
ANSWER: A
A. void ab initio.
B. void.
D. illegal.
ANSWER: A
A. discharged.
C. becomes void.
D. is voidable
ANSWER: A
ANSWER: B
ANSWER: D
A. jointly.
B. severally.
ANSWER: A
D. no loss.
ANSWER: A
ANSWER: D
ANSWER: C
C. tender.
ANSWER: A
C. Every contract.
ANSWER: D
D. Mutual promises.
ANSWER: C
ANSWER: C
A. valid.
B. void.
C. illegal.
D. unenforceable.
ANSWER: B
are
C. Void.
D. Not valid.
ANSWER: A
A. void.
B. voidable.
C. illegal.
ANSWER: A
is _____________.
B. void.
C. unenforceable.
ANSWER: A
ANSWER: B
D. Of the buyer.
ANSWER: A
B. dissolved.
D. void ab initio.
ANSWER: B
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
mind_____________.
ANSWER: A
ANSWER: C
money_____________.
ANSWER: B
_____________.
C. becomes void.
D. becomes valid.
ANSWER: B
A. void.
D. valid.
ANSWER: A
_____________.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
ANSWER: A
A. cannot sue.
B. can sue.
ANSWER: C
Objective Questions with Answers on Law Of Contract - 59
1) The promisee in a contract of indemnity, acting within the scope of his

authority, is entitled to recover from the promiso :
A) All damages which he may be compelled to pay in any suit in respect to any
matter to which he promise
to indemnity applies
B) All costs which he may be compelled to pay in any such suit

C) All sums which he may have paid under the terms any compromise of any
such suit
D) All of the above
Answer : D
2) A contract to perform the promise, or discharge the liability, of a third

person in case of default is known as :
A) Contract of indemnity
B) Contract of guarantee
C) Contingent contract
D) Quasi contract
Answer : B
3) Section 128 of Indian Contract Act 1872 provides :
A) Surety's liability
B) Continuing guarantee
C) Revocation of Continuing guarantee
D) Consideration for guarantee
Answer : A
4) A guarantee which extends to a series of transaction is known as :
A) Specific guarantee
B) Continuing guarantee
C) Both (A) and (B)
D) None of the above
Answer : B
5) The death of the Surety operates in the absence of any contract to the
contrary, as a Revocation of a Continuing guarantee, so far as regards
future transactions, it is given in :
A) Section 131
B) Section 132
C) Section 133
D) Section 134
Answer : A
Objective Questions with Answers on Law Of Contract - 61
1) In contract of guarantee, the person to whom guarantee is given is

known as :
A) Creditor
B) Surety
C) Principal debtor
D) Debtor
Answer : A
2) In contract of guarantee, the person in respect of whose default the

guarantee is given, is known as :
A) Creditor
B) Surety
C) Principal debtor
D) Debtor
Answer : C
3) Section 134 of Indian Contract Act, 1872 provides :
A) Discharge of Surety by release or discharge of Principal debtor
B) Liability of two persons, primarilly liable, not affected by arrangement

between them that one shall be Surety on other's default
C) Continuing guarantee
D) Revocation of Continuing guarantee
Answer : A
4) Section 148 of Indian Contract Act,1872 provides :
A) Bailment, bailor and bailee defined
B) Bailee when not liable for loss etc., For things bailed
C) Bailor's duty to disclose faults in goods bailed

D) Effect of mixture, without Bailor's consent, when the goods can be
separated.
Answer : A
5) If the bailee, with the consent of the bailor, mixes the goods of the bailor
with his own goods, the bailor and the bailee shall have an interest, in
production to their respective shares, in the mixture thus produced , it is :
A) True
B) False
C) Partly False
D) Not clear
Answer : A
) If the bailee, without the consent of the bailor, mixes the goods of the
bailor with his own goods in such a manner that it is impossible to separate
the goods bailed from the other goods and deliver them back, the bailor is
entitled to be :
A) Compensated by the bailee for the loss of the goods
B) Compensated by the bailee for the 1/3 of loss
C) Compensated by the bailee for the 1/2 of loss
D) Compensated by the bailee for rupees 500
Answer : A
2) The Bailment of goods as security for payment of a debt or performance

of a promise is called :
A) Pledge
B) Bailment
C) Contingent contract
D) Agreement
Answer : A
3) The delivery of goods by one person to another for some purpose, upon a
contract and that they shall, when the purpose is accomplished, be
returned or otherwise disposed of by accounting to the directions of the
person delivering them, then it is called :
A) Contingent contract
B) Bailment
C) Pledge
D) Contract of indemnity
Answer : B
A) Pledge where pownor has only a limited interest
B) Suit by bailor or bailee against wrongdoer
C) Appointment of relife or compensation obtained by such suit
D) Pawne's right where pawnor makes default
Answer : B
5) When thing which is commonly the subject of sale is lost, if the owner
cannot with reasonable diligence be found, or if he refuses upon demand, to
pay the lawful charges of the finder, the finder may sell :
A) When the thing is in danger or perishing or of losing the greater part of its
value, or
B) When the lawful charges of the finder, in respect of the things found amount
to two-thirds of its
value
C) Both (A) and (B)
Answer : C
1) Section 170 of Indian contract Act 1872 provides :
A) Bailee's particular lien
B) Care to be taken by bailee

C) Bailor's responsibility to bailee
D) Pawnee's right to retainer
Answer : A
2) Who may employ agent ?
A) Any person who is of the age of majority according to the law to which he is
subject
B) Any person who is of sound mind
C) Any person who is of the age of majority according to the law to which he is
subject and who is of sound mind
D) Citizen of India
Answer : C
A) Agent and Principal defined

B) Who may be an agent
C) Consideration not necessary
D) Agent's authority in an emergency
Answer : A
4) Agent's authority may be :
A) Express
B) Implied
C) Both (A) and (B)
D) None of these
Answer : C
5) Section 228 of Indian Contract Act , 1872 provides :
A) Principal not bound when excess of agent's authority is not separable
B) Consequences of noties given to agent

C) Liability of pretended agent
D) Effect on Agreement of misrepresentation or fraud by agent
Answer : A
MCQs of Sale of Goods Act
MCQ’s on The Sale of Goods Act, 1930
1. What is the purpose behind the enactment of Sale of Goods Act, 1930? A.
To define the laws relating to the sale of goods B. To consolidate and
amend the laws relating to the sale of goods C. To consolidate, amend
and define the laws relating to the sale of goods D. To define and amend
the laws relating to the sale of goods
2. Section 2(1) of Sale of Goods Act defines ‘buyer’ as: A. Person who buys
goods and services B. Person who agrees to buy goods C. Person who
buys or agrees to buy goods D. Person who buys or agrees to buy goods
and services
3. Before the enactment of Sale of Goods Act, the provisions regarding Sale
of Goods were contained in:
4. A. **Indian Contract Act, 1872**
5. B. Indian Registration Act, 1908
6. C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
7. Which of the following cannot be said to be included in the term “goods”

defined under section 2(7) of the Sale of Goods Act, 1930:
8. A. Stock
9. B. Shares
10. C. Growing crops
D. **Actionable claims**
5. Which of the following most appropriately describes the term “sale” as

per Sale of Goods Act, 1930:
6. A. A contract whereby seller transfers the property in goods
7. B. **A contract whereby seller transfers or agrees to transfer the property
in**
8. **goods to the buyer for a price**
9. C. A contract where transfer of the property in goods is to take place at a
future time
10. D. A contract where transfer of the property in goods is to take place
subject to some
condition thereafter to be fulfilled
11. When does an agreement to sell become a sale as per the provisions of
Sale Of Goods Act, 1930:
12. A. When the seller transfers the property in goods
13. B. When the seller agrees to transfer the property in goods
14. C. **When the time elapses or the conditions subject to which the
property in the**
15. **goods is to be transferred are fulfilled**
D. Agreement to sell is deemed to be sale
16. What can be the subject matter of the contract of sale as per section 6 of
Sale of Goods Act:
17. A. Only existing goods owned or possessed by the owner
18. B. Only Future goods
19. C. Existing goods which are neither owned nor possessed by the owner
D. **Existing goods, owned or possessed by the owner or future goods**
20. Where in a contract of sale the seller purports to effect the present sale of
the future goods, the contract operates as:
21. A. A Contract of sale
22. B. **An agreement to sell the goods**
23. C. A Contact of sale or agreement to sell
D. It is not a valid contract
13. A is a stipulation collateral to main purpose of the contract and the breach
of which gives rise to a right to claim for damages but not to a right to
reject goods and treat the contract as repudiated: A. Condition B.
Warranty C. Terms of contract D. Disclaimer
14. When can a breach of condition be treated as a breach of warranty by the
seller as per the provisions of Sale of Goods Act, 1930: A. When the
buyer fulfils the condition stipulated to the contract of sale B. When the
contract of sale is severable and the buyer has accepted the entire goods
C. When the contract of the sale is not severable and the buyer has
accepted the
**goods or part thereof, subject to an express or implied term in the

contract**
D. When the contract of the sale is severable and the buyer has accepted
the entire
goods or part thereof
15. In the Contract of Sale, there is an implied warranty that: A. Seller has a
right to sell the goods B. The buyer has the right to have and enjoy the
quiet possession of goods only. C. The goods shall be free from any
charge or encumbrance D. The buyer has the right to have and enjoy
the quiet possession of goods and that the goods shall be free from
any charge or encumbrance
16. In a Contract for Sale of goods by sample and description, it is necessary
that: A. The bulk of goods shall correspond with the sample as well as
description B. The bulk of goods shall correspond with sample while it is
not necessary that the bulk of goods shall correspond with the description
C. The bulk of goods shall correspondent with the description and it is not
necessary that the bulk of goods correspond with the sample
D. Variation of the bulk of goods with the sample and description of goods is
only to be treated as a breach of warranty 17. In which of the following cases,
there is an implied condition as to particular quality or fitness of goods: A.
When buyer makes known to the seller the particular purpose for which
goods are required as to show that buyer relies on seller’s skill and
judgment and the goods are of description which it is in the ordinary
course of seller’s business to supply B. When buyer makes known to the seller
the particular purpose for which goods are required as to show that buyer relies
on seller’s skill and judgment though the seller does not, in the ordinary course
of its business, supply such goods C. When goods are bought by description
from seller who deals in goods of that description, whether as a manufacturer or
otherwise and the buyer has examined the goods and found defects in the same
D. When there is a contract for sale of a specified article under its patent or
other trade name 18. When does the property in the goods pass to the buyer in
case of contract for the sale of specific or ascertained goods: A. When the
contract for sale is made B. When the parties to the contract intend it to be
transferred C. When the price is paid for the goods D. When the delivery of
goods has been made 19. When does the property in the goods pass to the buyer
in case of an unconditional contract for the sale of specific goods in a
deliverable state: A. When the contract is made irrespective of whether the
time of payment of price or delivery of goods is postponed or not B. When
the party Intends to transfer
C. The price to the goods has been received by seller D. The property therein
has been transferred to the buyer 23. When is the sale by mercantile agent
who is in the possession of the goods or documents of the title to the goods not
valid: A. When the mercantile agent acts in the ordinary course of business B.
When the buyer is acting in good faith and C. When the buyer acts in good
faith and has notice that the seller has no authority to sell at the time of the
contract of sale D. When the owner has expressly authorised the act 24. When
the seller has obtained possession of goods under a voidable contract, what title
does the buyer acquire when the goods are passed under the contract of sale: A.
Buyer acquires good title to the goods if he acts in good faith though he had
notice of seller’s defect of title B. Buyer acquires good title to the goods if he
had no notice of seller’s defect of title though he did not act in good faith C.
Buyer does not acquire a good title to the goods even though he acts in good
faith and without notice of seller’s defect of title D. Buyer acquires good title
to the goods if he acts in good faith and without notice of seller’s defect of
title 25. Which of the following cannot be treated as ‘Delivery’ under the Sale
of Goods Act, 1930: A. Doing anything which has the effect of putting goods
in possession of legal representatives of seller B. Doing anything which has
the effect of putting goods in possession of any person authorised by the buyer
C. Doing anything which has the effect of putting goods in possession of the
buyer D. Doing anything which the parties agree to be treated as delivery
26. What is the effect of part delivery of goods made in the progress of
delivery of the whole of the goods as per section 34 of the Sale of Goods
Act, 1930: A. Part delivery does not operate as a delivery of remainder.
B. Part delivery of the goods cannot be made under the Act. C. Part
delivery has the same effect as the delivery of the whole only in case of
perishable goods.
D. Part delivery has the same effect as the delivery of the whole
irrespective of
**the type of goods unless part delivery is made with intention of

severing it from**
**whole**
27. Which of the following statement is correct with regard to delivery of

goods by a seller: A. The seller is bound to deliver the goods under all
circumstances B. The seller is bound to deliver the goods when there is
either an express contract or when the buyer applies for delivery C.
The seller is bound to deliver the goods only when there is an express
contract to that effect D. The seller is bound to deliver the goods only
when the buyer applies for delivery
28. Which of the following statements is incorrect in respect of Rules as to
delivery: A. Where the goods are in the possession of a third person, the
goods are not delivered to buyer unless such third person acknowledges
to the buyer that the goods are held by him on seller’s behalf B. Where no
time is fixed for sending the goods it should be delivered within a
reasonable time C. The expenses of and incidental to putting the goods
into a deliverable state shall be borne by the buyer D. Demand or tender
of delivery may be treated as effectual only when made at a
reasonable hour
C. Buyer is bound to return only those rejected goods which are perishable D.
Buyer is bound to return only those rejected goods which are sold by
description. 32. Out of the following persons which of the following does not
come under the definition of the ‘’unpaid seller’’ as per Chapter V of Sale of
Goods Act: A. A seller to whom the whole of the price has not been paid or
tendered B. A seller to whom more than half of the price has been paid or
tendered C. A seller who has received a bill of exchange as conditional
payment and the condition on which it was received has not been fulfilled
by reason of the dishonour of the instrument or otherwise. D. A seller who
has received a negotiable instrument as conditional payment and the condition
on which it was received has not been fulfilled by reason of the dishonour of the
instrument or otherwise 33. Which of the following is not the right of an unpaid
seller under Sale of Goods Act, 1930: A. Right of lien on goods for the price
while the goods are in possession of seller. B. Right of stopping the goods in
transit, in case of insolvency of buyer C. Right of resale as limited by the Act D.
Right of withholding delivery where the property in the goods has passed to
the buyer 34. In which of the following cases the unpaid seller cannot exercise
the right of lien on goods in his possession: A. Where goods have been sold
without any stipulation regarding credit B. Where the goods have been sold on
credit but the term of the credit has expired C. Where the buyer becomes
insolvent D. Where the goods have been sold on credit but the term of
credit has not expired 35. In which of the following cases an unpaid seller
does not lose his right of lien:
A. When seller delivers the goods to a carrier or other bailee for the purpose of
transmission to the buyer without reserving the right of disposal B. When buyer
or his agent lawfully obtains possession of the goods C. When the unpaid
seller has obtained the decree for the price of the goods D. When the unpaid
seller himself waives off his right of lien 36. In which of the following cases an
unpaid seller who has parted with the possession of the goods has the right of
stopping such goods in transit: A. When the buyer of goods has been declared
as a person of unsound mind B. When the buyer of goods has been has been
sentenced to imprisonment for a term of more than six months under any law C.
When the buyer of goods has been declared as an insolvent D. When the
buyer of goods has been sentenced to imprisonment for a term of more than two
years under any law 37. In which of the following cases, transit of goods is not
deemed to be at an end: A. When the goods are rejected by the buyer and the
carrier or bailee continues in possession of goods B. When the buyer or his
agent in that behalf obtains delivery of goods before their arrival at the
appointed destination C. When goods are in the possession of the carrier or
bailee on buyer’s behalf after their arrival at the appointed destination D. When
the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or
his agent 38. Which of the following is incorrect with regard to the manner
through which right of stoppage in transit can be exercised by an unpaid seller:
A. An unpaid seller can exercise his right of stoppage in transit by taking actual
possession of the goods
41. Where there is a contract for the sale of specific or ascertained goods the
property in them is transferred to the buyer at the time when the: A.
Parties intend the property in goods to pass B. Contract is entered into C.
Price is paid D. Delivery of goods has been made
42. A contract of sale can be: A. Absolute only B. Conditional only C.
Absolute or conditional D. Conditional only with the consent of the
buyer
43. Where the transfer of the property in the goods is to take place at a future
time or subject to some condition, then such contract is called: A. An
agreement to sell B. A contract to Sale C. Future Contract D.
Conditional contract
44. What are the requisites of contract of sale: A. An Offer and delivery of
goods B. An Offer to buy or sell goods, for a price and its acceptance C.
An Offer, delivery, possession and acceptance D. An Offer, price,
delivery and acceptance
45. According to Sale of Goods Act, 1930, ‘seller’ means a person: A. who
only agrees to sell the goods B. who only sells the goods C. who sells or
agrees to sell D. who transfers the possession of the goods to the other
party
46. Where the goods are of perishable nature or where the unpaid seller
exercises his right of lien or right of stoppage of goods in transit and
gives notice to buyer for payment and buyer does not pay or tender within
reasonable time, an unpaid seller may: A. Resell the goods and can
recover the damages from the original buyer B. Cannot resell the
goods C. Ask the buyer again to make payment D. Take possession and
mark the goods as bad
47. _____ is termed as consideration in a contract of sale: A. Exchange
money B. Barter money C. Price D. Reward
48. When the buyer chooses to treat a breach of a condition as a breach of
warranty, then the buyer may: A. Repudiate the contract B. Reject the
goods C. Ask for indemnification D. set up against the seller the breach
of warranty in diminution or extinction of
**the price or can sue the seller for damages**
49. When the price is not determined in the contract or agreed between the
parties, the buyer shall pay the seller: A. a fair price B. a reasonable
price C. market price D. average price
50. In case of breach of condition, the breach gives rise to: A. Claim for
damages
D. True owner 55. X purchases a car from Y. After 6 months, Z, the true owner
of the car, demanded it from X. X had to return it to its true owner. X was
entitled to recover the full price even though several months have passed. This
is an example of: A. Condition as to description B. Condition as to sample C.
Condition as to title D. Condition as to fitness 56. A drug was sold by an
auction and according to the usage of trade it was to disclose in advance of any
vast damage caused in the quality of the drug but such disclosure was not made
and the drug was found to be defective. This is an example of: A. Warranty as
to undisturbed possession B. Warranty as to quality or fitness by usage of
trade C. Warranty as to non-existence of encumbrances D. Disclosure of
dangerous nature of goods 57. Where the seller wrongfully neglects or refuses
to deliver the goods to the buyer, the buyer may sue for: A. Damages for non-
delivery B. Damages for non-acceptance C. Specific performance D.
Compensation
58. Condition is a stipulation which is
A. Essential to the main purpose of contract B. Collateral to the main

purpose of contract C. Not essential to the main purpose of contract D.
Collateral to the main purpose of contract
59. The sale of goods Act deals only with goods which are __ in nature
A. Immovable B. Movable C. Specific D. All of the above
60. Goods that are identified at the time of contract of sale is called ____
goods
A. Specific Goods B. ascertained goods C. clear Goods D. both a &
61. _____ is a Stipulation which is Collateral to purpose of contract
A. Condition B. Warranty C. Guaranty D. Collateral Contract
62. __ is the concept of “LET THE BUYER BEWARE”.

A. Information Center B. Unfair Trade Practices C. Caveat Emptor D. Buyer
Kingdom
63. ___ and ___ are the two parties involved in Contract of sale
A. Seller & Buyer B. Agent & Principle
68. In sale the transfer of property in goods from the seller to the buyer takes
place
A. At the end of contract B. Immediately C. In a future Date D. Both a &

b
69. In Agreement to sell the transfer of property in goods from the seller to
the buyer takes place
A. At the end of contract B. Immediately C. In a future Date D. Both b &

c
70. Which of the following is not a subject matter in a Sale of goods Act
A. Trade mark B. Good will C. Money D. Water
71. As per Sale of goods Act Movable goods does not include
A. Gas B. Growing crop C. Electricity D. Money
72. The goods must be ____ goods for transferring the property in the goods
A. Ascertained B. Unascertained C. Future D. All of the above
73. The subject matter of the contract must necessarily be _____
A. Sale B. Product C. Service D. Goods
74. A consideration in contract of sale must be __ only
A. Goods B. Movable only C. Price D. Purchase.
75. Transfer or agree to transfer the _____ of the goods is the purpose of sale
of goods Act
A. Property B. Possession C. Value D. Usage
1. What is the purpose behind the enactment of Sale of Goods Act, 1930?
A. To define the laws relating to the sale of goods
B. To consolidate and amend the laws relating to the sale of goods
C. To consolidate, amend and define the laws relating to the sale of goods
D. To define and amend the laws relating to the sale of goods
2. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
A. Person who buys goods and services
B. Person who agrees to buy goods
C. Person who buys or agrees to buy goods
D. Person who buys or agrees to buy goods and services
3. Before the enactment of Sale of Goods Act, the provisions regarding Sale of
Goods were
contained in:
A. Indian Contract Act, 1872
B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
4. Which of the following cannot be said to be included in the term “goods”
defined under
section 2(7) of the Sale of Goods Act, 1930:
A. Stock
B. Shares
C. Growing crops
D. Actionable claims
5. Which of the following most appropriately describes the term “sale” as per
Sale of Goods
Act, 1930:
A. A contract whereby seller transfers the property in goods
B. A contract whereby seller transfers or agrees to transfer the property in
goods to the buyer for a price
C. A contract where transfer of the property in goods is to take place at a future
time
D. A contract where transfer of the property in goods is to take place subject to
some
condition thereafter to be fulfilled
6. When does an agreement to sell become a sale as per the provisions of Sale
Of Goods
Act, 1930:
A. When the seller transfers the property in goods
B. When the seller agrees to transfer the property in goods
C. When the time elapses or the conditions subject to which the property in the
goods is to be transferred are fulfilled
D. Agreement to sell is deemed to be sale
7. What can be the subject matter of the contract of sale as per section 6 of Sale
of Goods
Act:
A. Only existing goods owned or possessed by the owner
B. Only Future goods
C. Existing goods which are neither owned nor possessed by the owner
D. Existing goods, owned or possessed by the owner or future goods
8. Where in a contract of sale the seller purports to effect the present sale of the
future
goods, the contract operates as:
A. A Contract of sale
B. An agreement to sell the goods
C. A Contact of sale or agreement to sell
D. It is not a valid contract
9. In a contract for sale of specific goods, the goods, without the knowledge of
seller
perished at the time when the contract was made, the contract is:
A. A voidable contract at the instance of seller
B. A voidable contract at the instance of buyer
C. A voidable contract subject to approval of the civil court
D. A void contract
10. Can the agreement be avoided when there is an agreement to sell specific
goods but
subsequently the goods perish or become so damaged without any fault of the
seller or buyer:
A. It can be avoided by the parties
B. It can’t be avoided by the parties
C. It can be avoided only with the approval of Court
D. It can be avoided only if there is a contract in this regard between the parties
11. A contract of sale may be made:
A. A in writing or by word of mouth
B. partly in writing of partly by word of mouth
C. by the implied conduct of parties
D. All of the above
12. A is a stipulation essential to main purpose of the contract and the breach of
which gives
rise to a right to treat the contract as repudiated:
A. Condition
B. Warranty
C. Disclaimer
D. Guarantee
13. A is a stipulation collateral to main purpose of the contract and the breach of
which gives
rise to a right to claim for damages but not to a right to reject goods and treat the
contract as
repudiated:
A. Condition
B. Warranty
C. Terms of contract
D. Disclaimer
14. When can a breach of condition be treated as a breach of warranty by the
seller as per the
provisions of Sale of Goods Act, 1930:
A. When the buyer fulfils the condition stipulated to the contract of sale
B. When the contract of sale is severable and the buyer has accepted the entire
goods
C. When the contract of the sale is not severable and the buyer has accepted the
goods or part thereof, subject to an express or implied term in the contract
D. When the contract of the sale is severable and the buyer has accepted the
entire
goods or part thereof
15. In the Contract of Sale, there is an implied warranty that:
A. Seller has a right to sell the goods
B. The buyer has the right to have and enjoy the quiet possession of goods only.
C. The goods shall be free from any charge or encumbrance
D. The buyer has the right to have and enjoy the quiet possession of goods and
that the goods shall be free from any charge or encumbrance
16. In a Contract for Sale of goods by sample and description, it is necessary
that:
A. The bulk of goods shall correspond with the sample as well as description
B. The bulk of goods shall correspond with sample while it is not necessary that
the
bulk of goods shall correspond with the description
C. The bulk of goods shall correspondent with the description and it is not
necessary
that the bulk of goods correspond with the sample
D. Variation of the bulk of goods with the sample and description of goods is
only to
be treated as a breach of warranty
17. In which of the following cases, there is an implied condition as to particular
quality or
fitness of goods:
A. When buyer makes known to the seller the particular purpose for which
goods are required as to show that buyer relies on seller’s skill and judgment
and the goods are of description which it is in the ordinary course of seller’s
business to supply
B. When buyer makes known to the seller the particular purpose for which
goods are
required as to show that buyer relies on seller’s skill and judgment though the
seller
does not, in the ordinary course of its business, supply such goods
C. When goods are bought by description from seller who deals in goods of that
description, whether as a manufacturer or otherwise and the buyer has examined
the
goods and found defects in the same
D. When there is a contract for sale of a specified article under its patent or
other
trade name
18. When does the property in the goods pass to the buyer in case of contract for
the sale of
specific or ascertained goods:
A. When the contract for sale is made
B. When the parties to the contract intend it to be transferred
C. When the price is paid for the goods
D. When the delivery of goods has been made
19. When does the property in the goods pass to the buyer in case of an
unconditional
contract for the sale of specific goods in a deliverable state:
A. When the contract is made irrespective of whether the time of payment of
price or delivery of goods is postponed or not
B. When the party Intends to transfer
C. At the time of the payment of the price of goods
D. At the time of delivery of goods
20. When does the property in the goods pass to the buyer in case of a contract
for the sale of
unascertained or future goods by description:
A. When the goods of that description and in a deliverable state are
unconditionally appropriated to the contract either by the seller or by the buyer
with the assent of each other
B. When the goods of that description and in a deliverable state are
conditionally
appropriated to the contract either by the seller or by the buyer with the assent
of each
other
C. When the goods of that description and in a non-deliverable state are
conditionally appropriated to the contract either by the seller or by the buyer
with the
assent of each other
D. When the goods of that description and in a non-deliverable state are
unconditionally appropriated to the contract either by the seller or by the buyer
with
the assent of each other
21. In which of the following cases property in the goods does not pass to the
buyer when the
goods are delivered to the buyer on approval or “on sale or return” or other
similar terms:
A. When the buyer signifies his approval or acceptance to the seller as to goods
B. When the buyer retains the goods without giving a notice of rejection and
upon
expiry of reasonable time
C. When buyer gives a notice of rejection to the seller
D. When buyer does any other act adopting the transaction
22. Choose the most appropriate answer. Unless otherwise agreed, the goods
remain at
seller’s risk until:
A. The goods have been delivered to the buyer
B. The goods have been utilised by the buyer
C. The price to the goods has been received by seller
D. The property therein has been transferred to the buyer
23. When is the sale by mercantile agent who is in the possession of the goods
or documents
of the title to the goods not valid:
A. When the mercantile agent acts in the ordinary course of business
B. When the buyer is acting in good faith and
C. When the buyer acts in good faith and has notice that the seller has no
authority to sell at the time of the contract of sale
D. When the owner has expressly authorised the act
24. When the seller has obtained possession of goods under a voidable contract,
what title
does the buyer acquire when the goods are passed under the contract of sale:
A. Buyer acquires good title to the goods if he acts in good faith though he had
notice of seller’s defect of title
B. Buyer acquires good title to the goods if he had no notice of seller’s defect of
title
though he did not act in good faith
C. Buyer does not acquire a good title to the goods even though he acts in good
faith
and without notice of seller’s defect of title
D. Buyer acquires good title to the goods if he acts in good faith and without
notice of seller’s defect of title
25. Which of the following cannot be treated as ‘Delivery’ under the Sale of
Goods Act,
1930:
A. Doing anything which has the effect of putting goods in possession of legal
representatives of seller
B. Doing anything which has the effect of putting goods in possession of any
person
authorised by the buyer
C. Doing anything which has the effect of putting goods in possession of the
buyer
D. Doing anything which the parties agree to be treated as delivery
26. What is the effect of part delivery of goods made in the progress of delivery
of the whole
of the goods as per section 34 of the Sale of Goods Act, 1930:
A. Part delivery does not operate as a delivery of remainder.
B. Part delivery of the goods cannot be made under the Act.
C. Part delivery has the same effect as the delivery of the whole only in case of
perishable goods.
D. Part delivery has the same effect as the delivery of the whole irrespective of
the type of goods unless part delivery is made with intention of severing it from
whole
27. Which of the following statement is correct with regard to delivery of goods
by a seller:
A. The seller is bound to deliver the goods under all circumstances
B. The seller is bound to deliver the goods when there is either an express
contract or when the buyer applies for delivery
C. The seller is bound to deliver the goods only when there is an express
contract to
that effect
D. The seller is bound to deliver the goods only when the buyer applies for
delivery
28. Which of the following statements is incorrect in respect of Rules as to
delivery:
A. Where the goods are in the possession of a third person, the goods are not
delivered to buyer unless such third person acknowledges to the buyer that the
goods
are held by him on seller’s behalf
B. Where no time is fixed for sending the goods it should be delivered within a
reasonable time
C. The expenses of and incidental to putting the goods into a deliverable state
shall
be borne by the buyer
D. Demand or tender of delivery may be treated as effectual only when made at
a reasonable hour
29. As per the provisions of Sale of Goods Act, 1930 which of the following is
not a
consequence of delivery of wrong quantity of goods to the buyer:
A. Where the seller delivers less than the contracted quantity the buyer may
reject
the same
B. Where the seller delivers more than the contracted quantity, the buyer can
only reject the goods not included in the contract
C. Where the seller delivers the contracted goods mixed with the goods of a
different
description, the buyer can reject the goods of different description or may reject
the
whole of the goods.
D. Where the seller delivers more than the contracted quantity, the buyer may
accept
the goods included in the contract and reject the rest, or he may reject the
whole. If
the buyer accepts the whole of the goods so delivered, he shall pay for them at
the
contract rate
30. Which of the following is true as regards delivery of goods in instalments as
provided
under Sale of Goods Act:
A. The buyer is bound to accept the instalment deliveries only in case of
perishable
goods
B. The buyer is bound to accept the instalment deliveries only in case of sale of
goods by description
C. The buyer is bound to accept the instalment deliveries only if agreed between
the parties
D. Delivery of goods can’t be made in instalments
31. Choose the most appropriate option out of the following in respect to return
of rejected
goods by the buyer:
A. Buyer is not bound to return any type of rejected goods, having right to do
so, if he intimates to the seller that he refuses to accept the same
B. Buyer is bound to return all types of rejected goods
C. Buyer is bound to return only those rejected goods which are perishable
D. Buyer is bound to return only those rejected goods which are sold by
description.
32. Out of the following persons which of the following does not come under
the definition
of the ‘’unpaid seller’’ as per Chapter V of Sale of Goods Act:
A. A seller to whom the whole of the price has not been paid or tendered
B. A seller to whom more than half of the price has been paid or tendered
C. A seller who has received a bill of exchange as conditional payment and the
condition on which it was received has not been fulfilled by reason of the
dishonour of the instrument or otherwise.
D. A seller who has received a negotiable instrument as conditional payment
and the
condition on which it was received has not been fulfilled by reason of the
dishonour
of the instrument or otherwise
33. Which of the following is not the right of an unpaid seller under Sale of
Goods Act, 1930:
A. Right of lien on goods for the price while the goods are in possession of
seller.
B. Right of stopping the goods in transit, in case of insolvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to
the buyer
34. In which of the following cases the unpaid seller cannot exercise the right of
lien on
goods in his possession:
A. Where goods have been sold without any stipulation regarding credit
B. Where the goods have been sold on credit but the term of the credit has
expired
C. Where the buyer becomes insolvent
D. Where the goods have been sold on credit but the term of credit has not
expired
35. In which of the following cases an unpaid seller does not lose his right of
lien:
A. When seller delivers the goods to a carrier or other bailee for the purpose of
transmission to the buyer without reserving the right of disposal
B. When buyer or his agent lawfully obtains possession of the goods
C. When the unpaid seller has obtained the decree for the price of the goods
D. When the unpaid seller himself waives off his right of lien
36. In which of the following cases an unpaid seller who has parted with the
possession of
the goods has the right of stopping such goods in transit:
A. When the buyer of goods has been declared as a person of unsound mind
B. When the buyer of goods has been has been sentenced to imprisonment for a
term
of more than six months under any law
C. When the buyer of goods has been declared as an insolvent
D. When the buyer of goods has been sentenced to imprisonment for a term of
more
than two years under any law
37. In which of the following cases, transit of goods is not deemed to be at an
end:
A. When the goods are rejected by the buyer and the carrier or bailee continues
in possession of goods
B. When the buyer or his agent in that behalf obtains delivery of goods before
their
arrival at the appointed destination
C. When goods are in the possession of the carrier or bailee on buyer’s behalf
after
their arrival at the appointed destination
D. When the carrier or other bailee wrongfully refuses to deliver the goods to
the
buyer or his agent
38. Which of the following is incorrect with regard to the manner through which
right of
stoppage in transit can be exercised by an unpaid seller:
A. An unpaid seller can exercise his right of stoppage in transit by taking actual
possession of the goods
B. An unpaid seller can exercise his right of stoppage in transit by giving notice
of
his claim to the carrier who is in the possession of goods
C. An unpaid seller can exercise his right of stoppage in transit by giving notice
of
his claim to the bailee who is in the possession of the goods
D. Unpaid seller can exercise the right of stoppage in transit by giving an
advertisement in leading newspaper of the place where the buyer ordinarily
carries on his business
39. Choose the most appropriate option in respect of a Sale which is not
generally rescinded
by lien or stoppage in transit:
A. A contract of sale is rescinded by the exercise of an unpaid seller’s right of
lien or
stoppage of lien
B. Where an unpaid seller who has exercised his right of lien or stoppage in
transit
resells the goods, the buyer of such goods does not acquire a good title thereto
as
against the original buyer.
C. Where the seller resells the goods in case of buyer’s default the original
contract
of sale is not rescinded
D. Where the unpaid seller who has exercised his right of lien or stoppage in
transit gives notice to buyer of his intention to resell, the unpaid seller may
resell
the goods within a reasonable time and recover damages incurred due to his
breach of the contract from the original buyer
40. Which of the following does not fall in the category of “goods”:
A. Stock and shares
B. Money and actionable claims
C. Growing crops and grass
D. Things attached to or forming the part of land which are agreed to be severed
before sale or under contract of sale
41. Where there is a contract for the sale of specific or ascertained goods the
property in them
is transferred to the buyer at the time when the:
A. Parties intend the property in goods to pass
B. Contract is entered into
C. Price is paid
D. Delivery of goods has been made
42. A contract of sale can be:
A. Absolute only
B. Conditional only
C. Absolute or conditional
D. Conditional only with the consent of the buyer
43. Where the transfer of the property in the goods is to take place at a future
time or subject
to some condition, then such contract is called:
A. An agreement to sell
B. A contract to Sale
C. Future Contract
D. Conditional contract
44. What are the requisites of contract of sale:
A. An Offer and delivery of goods
B. An Offer to buy or sell goods, for a price and its acceptance
C. An Offer, delivery, possession and acceptance
D. An Offer, price, delivery and acceptance
45. According to Sale of Goods Act, 1930, ‘seller’ means a person:
A. who only agrees to sell the goods
B. who only sells the goods
C. who sells or agrees to sell
D. who transfers the possession of the goods to the other party
46. Where the goods are of perishable nature or where the unpaid seller
exercises his right of
lien or right of stoppage of goods in transit and gives notice to buyer for
payment and buyer
does not pay or tender within reasonable time, an unpaid seller may:
A. Resell the goods and can recover the damages from the original buyer
B. Cannot resell the goods
C. Ask the buyer again to make payment
D. Take possession and mark the goods as bad
47. _____________ is termed as consideration in a contract of sale:
A. Exchange money
B. Barter money
C. Price
D. Reward
48. When the buyer chooses to treat a breach of a condition as a breach of
warranty, then the
buyer may:
A. Repudiate the contract
B. Reject the goods
C. Ask for indemnification
D. set up against the seller the breach of warranty in diminution or extinction of
the price or can sue the seller for damages
49. When the price is not determined in the contract or agreed between the
parties, the buyer
shall pay the seller:
A. a fair price
B. a reasonable price
C. market price
D. average price
50. In case of breach of condition, the breach gives rise to:
A. Claim for damages
B. Rejection of goods
C. A right to repudiate the contract
D. A right of indemnification
51. Which of the following is not an implied condition or warranty in a contract
of sale:
A. The seller may take back the possession of the goods at a future date
B. The seller has a right to sell the goods and that in the case of an agreement to
sell
he will have a right to sell the goods at the time when the property is to pass
C. The buyer shall have and enjoy quiet possession of the goods
D. The goods shall be free from any charge or encumbrance in favour of any
third
party not declared or known to the buyer before or at the time when the contract
is
made.
52. If the contract of sale is by sample as well as by description:
A. It is sufficient if the bulk of goods correspond to sample only
B. It is sufficient if the bulk of goods correspond to description only
C. It is not necessary to conform to the sample or description
D. It is not sufficient that the bulk of the goods correspond with the sample if
the goods do not correspond with the description
53. Where under a contract of sale, the property in the goods has passed to the
buyer and the
buyer wrongfully neglects or refuses to pay for the goods, the seller may:
A. Ask for indemnification
B. Sue the buyer for damages of non-acceptance
C. Sue the buyer for compensation
D. Sue the buyer for the price of goods
54. The position of the finder of lost goods is that of:
A. Bailee
B. Bailor
C. Creditor
D. True owner
55. X purchases a car from Y. After 6 months, Z, the true owner of the car,
demanded it from
X. X had to return it to its true owner. X was entitled to recover the full price
even though
several months have passed. This is an example of:
A. Condition as to description
B. Condition as to sample
C. Condition as to title
D. Condition as to fitness
56. A drug was sold by an auction and according to the usage of trade it was to
disclose in
advance of any vast damage caused in the quality of the drug but such
disclosure was not
made and the drug was found to be defective. This is an example of:
A. Warranty as to undisturbed possession
B. Warranty as to quality or fitness by usage of trade
C. Warranty as to non-existence of encumbrances
D. Disclosure of dangerous nature of goods
57. Where the seller wrongfully neglects or refuses to deliver the goods to the
buyer, the
buyer may sue for:
A. Damages for non-delivery
B. Damages for non-acceptance
C. Specific performance
D. Compensation
58. Condition is a stipulation which is
A. Essential to the main purpose of contract
B. Collateral to the main purpose of contract
C. Not essential to the main purpose of contract
D. Collateral to the main purpose of contract
59. The sale of goods Act deals only with goods which are ______________ in
nature
A. Immovable
B. Movable
C. Specific
D. All of the above
60. Goods that are identified at the time of contract of sale is called
________________ goods
A. Specific Goods
B. ascertained goods
C. clear Goods
D. both a &
61. _________________ is a Stipulation which is Collateral to purpose of
contract
A. Condition
B. Warranty
C. Guaranty
D. Collateral Contract
62. __________________________ is the concept of “LET THE BUYER
BEWARE”.
A. Information Center
B. Unfair Trade Practices
C. Caveat Emptor
D. Buyer Kingdom
63. ___________________ and _______________ are the two parties involved
in Contract of
sale
A. Seller & Buyer
B. Agent & Principle
C. Customer & Sales man
D. Customer and supplier
64. It is a standard rule that risk follows ____________________
A. Seller
B. buyer
C. Property
D. Possession
65. The sale of Goods Act enforces in the year
A. 1935
B. 1930
C. 1945
D. 1955
66. The subject matter of the contract under Sale of goods Act must be
A. Money
B. Goods
C. Immovable Goods
D. All of the above
67. Sale under Sale of goods Act is a/an ____________________ contract
A. Executory
B. Executable
C. Executed
D. None of the above
68. In sale the transfer of property in goods from the seller to the buyer takes
place
A. At the end of contract
B. Immediately
C. In a future Date
D. Both a & b
69. In Agreement to sell the transfer of property in goods from the seller to the
buyer takes place
A. At the end of contract
B. Immediately
C. In a future Date
D. Both b & c
70. Which of the following is not a subject matter in a Sale of goods Act
A. Trade mark
B. Good will
C. Money
D. Water
71. As per Sale of goods Act Movable goods does not include
A. Gas
B. Growing crop
C. Electricity
D. Money
72. The goods must be ________ goods for transferring the property in the
goods
A. Ascertained
B. Unascertained
C. Future
D. All of the above
73. The subject matter of the contract must necessarily be _____________
A. Sale
B. Product
C. Service
D. Goods
74. A consideration in contract of sale must be ______________ only
A. Goods
B. Movable only
C. Price
D. Purchase.
75. Transfer or agree to transfer the _____________ of the goods is the purpose
of sale of goods
Act
A. Property
B. Possession
C. Value
D. Usage
MCQ on Negotiable Instrument Act 1881 with Answers
1) When did the Negotiable Instruments Act come into force?
A) 1 April 1882
B) 1 March 1936
C) 01 May 1989
D) 01 March 1882
Answer –D) 01 March 1882
2) Which section of the Negotiable Instruments Act,1881 deals with Partial

failure of consideration not consisting of money?
A. Section 21 of the Negotiable Instruments Act,1881

B. Section 45 of the Negotiable Instruments Act,1881
C. Section 4 of the Negotiable Instruments Act,1881
D. Section 20 of the Negotiable Instruments Act,1881
Answer B. Section 45 of the Negotiable Instruments Act,1881
3. Which section of the Negotiable Instruments Act,1881 deals with

Promissory note__ ?

Answer – A. Section 4 of the Negotiable Instruments Act,1881
4. Section 35 of the Negotiable Instruments Act,1881 deals

with_______?
A. Liability of indorser
B. Suretyship
C.Liability of the maker of note and acceptor of a bill
D. Negotiation by delivery
Ans-A. Liability of indorser
5. . Liability of legal representative signing is provided in section____ of

the Negotiable Instruments Act,1881


Ans- C. Section 29 of the Negotiable Instruments Act,1881
6. Section 25 of the Negotiable Instruments Act,1881 provides _?
A. . When the day of maturity is a holiday

B. Liability of drawer
C. Agency
D. Liability of drawee of the cheque
Ans- A. . When the day of maturity is a holiday.

MCQ on the Negotiable Instruments Act,1881 with answers pdf
7. Which section of the Negotiable Instruments Act,1881 deals with

Rules as to compensation?

Answer – C. Section 117 of the Negotiable Instruments Act,1881
8. Section 18 of the Negotiable Instruments Act,1881 deals_______?
A. Where the amount is stated differently in figures and words

B. Presentment for acceptance.
C. Dishonour by non-acceptance
D. Payment for honour
Ans- A. Where the amount is stated differently in figures and words
9) Which section of the Negotiable Instruments Act,1881 deals with

Presumption in favour of holder. ?

Answer B. Section 139 of the Negotiable Instruments Act,1881
10) Section 123 of the Negotiable Instruments Act,1881 deals with_______?
A. Cheque crossed specially

B.. Set of bills.
C. Cheque crossed generally
D. Cognizance of offences
Answer- C. Cheque crossed generally

More Important MCQ on Negotiable Instrument Act with Answers:
Candidates can find the Negotiable Instrument Act 1881 Multiple Choice
Questions and Answers PDF, which was highly expected questions in Banking
Awareness Section.
1) Which of the following section in the Negotiable Instruments Act deals

with the Bill of Exchange?
A. Section 5
B. Section 6
C. Section 4
D. Section 13
E. Section 8
2) Which of the followings are not the Negotiable Instruments as defined by

the Statute…
A. Banker’s Note
B. Promissory Note
C. Bill of Exchange
D. Cheques
E. All of the Instruments are Negotiable Instruments
3) Which of the following is/are true about the Negotiable Instruments Act,
the Promissory Note is …
(I) Definition of Promissory Note is given in section 8 of the Negotiable

Instrument Act
(II) Containing an unconditional undertaking
(III) To pay a certain sum of money only to a specific person or the bearer
(IV) The seller is bound to accept the promissory note
(V) A document was written and signed by the payer/maker
A. (I), (II) and (III)

B. (II), (III) and (V)
C. (II), (III), and (IV)
D. (I), (III) and (IV)
E. All of the above
4) Dishonour of Negotiable Instrument by Non Payment is covered under
section in Negotiable Instrument Act 1882…
A. Section 90
B. Section 91
C. Section 92
D. Section 93
E. Section 94
5) The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision

allowing a court trying an offence related to cheque bouncing, to direct the
drawer (person who writes the cheque) to pay interim compensation to the
complainant. The interim compensation will not exceed ___% of the
cheque amount?
A. 15%
B. 25%
C. 30%
D. 33%
E. 20%
6) Which of the following is/are true about Bill of Exchange?
(I) A bill of exchange requires in its inception two parties.
(II) A bill of exchange or “draft” is a written order by the drawer to the drawee
to pay money to the payee.
(III) Bills of exchange are used primarily in international trade, and are written
orders by one person to his bank to pay the bearer a specific sum on a specific
date.
(IV) Definition of ‘ Bill of Exchange’ is mentioned in Section 6 of the

Negotiable Instrument Act.
A. (I) and (IV)

B. (I), (II) and (IV)
C. (II) and (III)
D. (III) and (IV)
E. All of the Above
(7) If the holder of a bill of exchange allows the drawee more than ___
hours, exclusive of public holidays, to consider whether he will accept the
same, all previous parties not consenting to such allowance are thereby
discharged from liability to such holder.
A. 24
B. 12
C. 36
D. 48
E. 60
(8) Section 6 of the Negotiable Instruments Act defines ___
A. Cheque
B. Bill of Exchange
C. Promissory Notes
D. Dishonour by non-payment
E. Dishonour by non-acceptance
(9) If a Minor draw, indorse, deliver and negotiate Negotiable Instruments,

it binds __
A. All the parties except minor

B. All the parties including minor
C. Minor Only
D. Minor and Only Drawer
E. Minor and the Drawee
(10) Which of the following is/are false about Dishonour of Cheque ?
(I) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in
the account.
(II) Such cheque has been presented to the bank within a period of twelve
months from the date on which it is drawn or within the period of its validity,
whichever is earlier
(III) Imprisonment for such offence may be extended for period of five year
(IV) Section 138 apply unless – the drawer of such cheque fails to make the
payment of the said amount of money to the payee or, as the case may be, to the
holder in due course of the cheque, within fifteen days of the receipt of the said
notice.
A. (I) and (IV)

B. (II) and (III)
C. (II),(III) and (IV)
D. Only (IV)
E. Only (III)
Check Below Answer with explanation for the above questions.
The negotiable instruments act 1881 multiple choice questions and answers
pdf:
1). Answer :Section 5 of the Negotiable Instruments Act, 1881 defines bills of
exchange. According to this definition, a bill of exchange is an instrument in
writing containing an unconditional order.
2). Answer : Banker’s Note. Promissory Notes, Bill of Exchange and Cheques
are Negotiable Instruments.
3). Answer :(II), (III) and (V)
A promissory note refers to a written promise to its holder by an entity or an

individual to pay a certain sum of money by a pre-decided date. Definition is
mentioned in the section 4 of Negotiable Instrument Act. The seller isn’t bound
to accept the promissory note.
4). Answer : Section 92 : Dishonour by non-payment.—A promissory note, bill

of exchange or cheque is said to be dishonoured by non-payment when the
maker of the note, acceptor of the bill or drawee of the cheque makes default in
payment upon being duly required to pay the same.
5). Answer :The Bill inserts a provision allowing a court trying an offence
related to cheque bouncing, to direct the drawer (person who writes the cheque)
to pay interim compensation to the complainant. This interim compensation
may be paid under certain circumstances, including where the drawer pleads not
guilty of the accusation. The interim compensation will not exceed 20% of the
cheque amount, and will have to be paid by the drawer within 60 days of the
trial court’s order to pay such a compensation.
6). Answer :(II) and (III). A bill of exchange requires in its inception three
parties—the drawer, the drawee, and the payee. Definition of ‘ Bill of
Exchange’ is mentioned in the Section 5 of Negotiable Instrument Act.
7). Answer :If the holder of a bill of exchange allows the drawee more than 48
hours, exclusive of public holidays, to consider whether he will accept the same,
all previous parties not consenting to such allowance are thereby discharged
from liability to such holder.
8). Answer :Section 6 of Negotiable Instruments Act 1881: “Cheque” A
“cheque” is a bill of exchange drawn on a specified banker and not expressed to
be payable otherwise than on demand.
9). Answer :A minor may draw, indorse, deliver and negotiate such
instrument so as to bind all parties except himself.
10). Answer : (II) and (III) Section 138 : Where any cheque drawn by a
person on an account maintained by him with a banker for payment of any
amount of money to another person from out of that account for the discharge,
in whole or in part, of any debt or other liability, is returned by the bank unpaid,
either because of the amount of money standing to the credit of that account is
insufficient to honour the cheque or that it exceeds the amount arranged to be
paid from that account by an agreement made with that bank, such person shall
be deemed to have committed an offence and shall, without prejudice to any
other provision of this Act, be punished with imprisonment for 8 [a term which
may be extended to two years’], or with fine which may extend to twice the
amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless—
(a) the cheque has been presented to the bank within a period of six months
from the date on which it is drawn or within the period of its validity, whichever
is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be,
makes a demand for the payment of the said amount of money by giving notice;
in writing, to the drawer of the cheque, 9 [within thirty days] of the receipt of
information by him from the bank regarding the return of the cheque as unpaid;
and
(c) the drawer of such cheque fails to make the payment of the said amount of
money to the payee or, as the case may be, to the holder in due course of the
cheque, within fifteen days of the receipt of the said notice.
Consumer Protection Act MCQs
Question 1
Consumer Protection Act is significant to

A) Immovable Goods
B) Movable Goods
C) Particular Goods and Services
D) All Goods and Services
Answer: D
Question 2
How many rights does a consumer have under the Consumer Protection Act?
A) 8
B) 6
C) 4
D) 5
Answer: B
Question 3
Under the Consumer Protection Act, the rights of a consumer do not include to
be
A) Safety
B) Choose
C) Presented
D) Informed
Answer: C
Question 4
When the seller manipulates the price, it is known as
A) Caveat Emptor
B) Unfair trade practices

C) Restricted trade practices
Answer: C
Question 5
Under this act, the minimum age of forum member of a district forum should be
A) 30
B) 40
C) 35
D) 65
Answer: C
Question 6
The maximum age for a state commission member should be
A) 60
B) 35
C) 70
D) 67
Answer: D
Question 7
The maximum age national commission member should be
A) 60
B) 35
C) 70
D) 65
Answer: C
Question 8
Which of the following forum can reappoint the same person as its member?
A) National commission
B) State commission
C) District commission
Answer: D
Question 9
In which forum is it compulsory to have a female member?
B) State commission
D) All of the above
Answer: D
Question 10
Within how many days does the opposite party have to answer after they are
informed about the complaint?
A) 30
B) 5
C) 20
D) 15
Answer: A
1. Rights of consumer are protected under ___________
(a) Consumer protection 1986
(b) Consumer protection 1990
(c) Consumer protection 1982
(d) Consumer protection 1991
2. The consumer has the right to get compensation against unfair trade
practices under right to
(a) Right to choose
(b) Right to seek redressal
(c) Right to safety
(d) Right to safety
3. Which of the following are the ways and means of consumer

protection?
(a) Self-regulation by the business
(b) Business associations
(c) Government
(d) All of the above
4. ______ is the standardized mark on jewellery

(a) ISI
(b) FPO
(c) Hallmark
(d) CERC
5. _______ are made to hear complaints of the value less than 5 lakhs.
(a) Consumer forum at district level
(b) State commission
(c) National commission
(d) None of the above
6. Which of the following is not an organization working for consumer
protection?
(a) Consumer VOICE
(b) Consumer forum
(c) The bureau of Indian standard
(d) Consumer utility & trust society
Answer Keys
1 a 2 b 3 d 4 c 5 a 6 b
Consumer Protection Act provides rights to the consumer to prevent consumers

from fraud or specified unfair practices. These rights ensure that consumers can
make better choices in the marketplace and get help with complaints.
Similarly, consumer responsibilities indicate that customers have a specific

responsibility towards the society and other consumers and help them to fight
against unfair practices or at least be aware of them. These rights and
responsibilities were registered under the Consumer Protection Act 1986. It was
replaced with the Consumer Protection Bill in 2019.
Given below are essential MCQs on the Consumer Protection Act to analyse
your understanding of the topic. The answers are also given for your reference.
Consumer Protection Act MCQs
Question 1
Consumer Protection Act is significant to
A) Immovable Goods
B) Movable Goods
C) Particular Goods and Services
D) All Goods and Services
Answer: D
Question 2
How many rights does a consumer have under the Consumer Protection Act?
A) 8
B) 6
C) 4
D) 5
Answer: B
Question 3
Under the Consumer Protection Act, the rights of a consumer do not include to
be
A) Safety
B) Choose
C) Presented
D) Informed
Answer: C
Question 4
When the seller manipulates the price, it is known as
A) Caveat Emptor
B) Unfair trade practices
C) Restricted trade practices
Answer: C
Question 5
Under this act, the minimum age of forum member of a district forum should be
A) 30
B) 40
C) 35
D) 65
Answer: C
Question 6
The maximum age for a state commission member should be
A) 60
B) 35
C) 70
D) 67
Answer: D
Question 7
The maximum age national commission member should be
A) 60
B) 35
C) 70
D) 65
Answer: C
Question 8
Which of the following forum can reappoint the same person as its member?
B) State commission
Answer: D
Question 9
In which forum is it compulsory to have a female member?
B) State commission
D) All of the above
Answer: D
Question 10
Within how many days does the opposite party have to answer after they are
informed about the complaint?
A) 30
B) 5
C) 20
D) 15
Answer: A
Partnership MCQs
1. To start a partnership business, what should be the minimum number of

partners?
A) 2
B) 10
C) 4
D) 20
Answer: A
2. What type of agreement is used to form a partnership business?
A) Written agreement
B) Oral agreement
C) Written or oral agreement
D) None of them
Answer: C
3. In partnership, partners liabilities are
A) Unlimited
B) Limited to the capital of the business
C) Limited
D) Both A and C
Answer: A
4. Is a partnership firm considered as a separate legal entity?
A) No
B) Yes
C) Partially Yes
Answer: A
5. What happens when interest on drawings is charged to partner?
A) Credited to partner’s current a/c
B) Not shown in current account
C) Debited to partner’s capital a/c

Answer: C
6. What is the partnership written agreement known as?:
A) Partnership contract
B) Agreement
C) Partnership deed
D) Partnership Act
Answer: C
7. In absence of a partnership agreement, what will be the percentage of profit

sharing ratio between the partners?
A) Unequal
B) Equal
C) It will depend on the experience of a partner
D) It will depend on a partner’s capital
Answer: B
8. Which is not a feature of a partnership business?
A) Ease of formation
B) Limited liability
C) Limited life
D) Mutual agency
Answer: B
9. In which kind of partnership one partner has unlimited liability and other
partner have limited liability?
A) Partnership-at-will
B) Limited liability partnership
C) General partnership
D) Particular partnership
Answer: B
10. Which types of partnership have no agreement in terms of the duration of

partnership?
B) Limited partnership
Answer: C
Partnership MCQs
1. To start a partnership business, what should be the minimum number of

partners?
A) 2
B) 10
C) 4
D) 20
Answer: A
2. What type of agreement is used to form a partnership business?
A) Written agreement
B) Oral agreement
C) Written or oral agreement
D) None of them
Answer: C
3. In partnership, partners liabilities are
A) Unlimited
B) Limited to the capital of the business
C) Limited
D) Both A and C
Answer: A
4. Is a partnership firm considered as a separate legal entity?
A) No
B) Yes
C) Partially Yes
Answer: A
5. What happens when interest on drawings is charged to partner?
A) Credited to partner’s current a/c
B) Not shown in current account
C) Debited to partner’s capital a/c
Answer: C
6. What is the partnership written agreement known as?:
A) Partnership contract
B) Agreement
C) Partnership deed
D) Partnership Act
Answer: C
7. In absence of a partnership agreement, what will be the percentage of profit

sharing ratio between the partners?
A) Unequal
B) Equal
C) It will depend on the experience of a partner
D) It will depend on a partner’s capital
Answer: B
8. Which is not a feature of a partnership business?
A) Ease of formation
B) Limited liability
C) Limited life
D) Mutual agency
Answer: B
9. In which kind of partnership one partner has unlimited liability and other
partner have limited liability?
B) Limited liability partnership
Answer: B
10. Which types of partnership have no agreement in terms of the duration of

partnership?
B) Limited partnership
Answer: C
MCQ’s On Indian Partnership Act , 1932
1. Under Section 2(b) of the Indian Partnership Act, ‘business’ Includes

(a) every trade and occupation
(b) every occupation and profession
(c) every trade, occupation and profession
(d) every trade and profession
Ans.C
2. State which of the statements is true?

(a) Partner is an agent of the firm
(b) Partner is owner of the firm
(c) Partner is director of the firm
Ans.A
3. What is a partnership at will?

(a) Created under a will by testator
(b) Created by consent of all partners
(c) Partnership without provision for duration
Ans.C
4. A partnership not for any fixed duration is

(a) partnership at will
(b) indissoluble partnership
(c) either (a) or (b)
(d) none of the above
Ans.A
5. Which of the following is a strong but not sufficient test of

partnership
(a) sharing of profits
(b) sharing of losses
(c) either of the two
Ans.A
6. In which of the following cases, a partnership exist:

(a) Several persons jointly purchase goods for resale with a view to
divide the profits arising from the transaction.
(b) Persons (co-owners) who join in the purchase of goods for the
purpose of dividing the goods themselves.
(c) A. B and C agreed that each should furnish Rs. 3000 worth of goods
to be shipped on a joint venture, the profits is to be divided between
them according to the amount of their several shipments
(d) Two tenants in common of a house and divide the rent equally
Ans.A
7. In which of the following cases a partnership does not exist?

I. Lender of money receiving profit
II. Servants or agents receiving profit
III. Widow or child of a deceased receiving profits.
IV. Seller of goodwill receiving profits
(a) I, II and III
b) I, II and IV
(c) II, III and IV
d) All of the above
Ans.D
8. A partnership firm is
(a) a distinct legal entity from its partner
(b) not a distinct legal entity from its partner
(c) a juristic person
Ans.B
9. A partner can retire by notice of intention to retire, where

(a) the partnership is at will
(b) the partnership is for a specified period
(c) where a contract has been made between the partners for its
determination
Ans.A
10. In a partnership at will

(a) a partner of a firm can retire from firm at any time by giving a notice
of his intention to retire to his co-partner
(b) a partner of a firm can dissolve the at any time by giving a notice of
intention to dissolve the firm to his co partners
(c) either (a) or (b)
(d) neither (a) nor (b)
Ans.C
11. Where a partnership firm is constituted a fixed period and after

the expiration that term the firm continues to carry business without
any agreement
A) the partnership stands extended till the new agreement is made
B) The partnership becomes the partnership at will
C) The partnership becomes illegal
D) the partnership stands dissolved on the date of the expiry of the
term and no partnership can be said to be in existence
Ans.B
12. As per Section 5 of the Indian Partnership Act, the relationship of

partnership is created by:
a) Status
(b) Contract
(c) Statute
d) None of the above
Ans.B
13. Partnership” means

(a) joint venture
(b) agreement between the persons to share the profit of a business
carried on between them
(c)agreement between the persons to do some work
Ans.B
14.The relation of partnership according to Section 5 of Indian

Partnership Act, 1932 arises from
(a) status
b) Contract
(c) friendship
d) None of these
Ans.B
15. The mode of determining the existence of partnership has been

laid down in
(a) Section 5
b) Section 6
(c) Section 9
d) Section 10
Ans.B

Objective Questions With Answers of BRFW

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Objective Questions With Answers of BRFW

Uploaded by

Copyright:

Available Formats

Objective Questions with Answers on Law Of Contracts - 18

1) Which one of the following element is not necessary for a contract ?

B) Reasonable terms and conditions.

2) An agreement becomes a contract if :

A) It is by free consent of the parties.

B) Parties are competent.

D) None of the above .

B) The individual must be protected in contract.

C) The agreement is without consideration.

D) None of the above.

A) Offer, acceptance, agreement, consideration.

B) Agreement, consideration, offer,acceptance.

C) Offer , Consideration, acceptance, agreement.

D) Offer,acceptance, consideration, agreement.

Objective Questions with Answers on Law Of Contracts - 19

1) Consider the following statements :

A) Every promise is an agreement.

B) Every agreement is a contract.

C) A contractor which cease to be enforceable by law becomes void .

D) A minor who is supplied necessaries is personally liable to pay for them.

Which of the statements given above are correct?

2) Consider the following statements :

1. If an infant obtains property or goods by misrepresenting his age, he can be

2. There is no estoppel against minor.

3) A petient in a lunatic Asylum who is at intervals of sound mind :

A) May not contract.

C) May contact during those intervals when he is of sound mind.

D) May contract only after he becomes completely of sound mind .

4) A sells, by auction to B a horse which A knows to be unsound. A says

5) Where both parties are under mistake as to matter of fact, the

Objective Questions with Answers on Law Of Contracts - 20

1) What will be the effect of mistakes as to law in force in India on the

2) An agreement made without free consent is:

D) Either void or voidable.

3) Which of the following statement is not correct ?

A) Minor's agreement is void.

B) Wagering agreement is void

D) Contract without consideration is void.

5) A contract caused by one of the parties to it being under a mistake as to

C) Voidable at the option of either party.

D) Voidable at the option of the party who under mistake.

Objective Questions with Answers on Law Of Contracts - 22

1) Unlawful detaining or threatening to detain any property with the

2) A promise made without intention to perform is:

4) Which statement is not correct ?

A) Coercion renders a contract voidable

B) Undue influence renders a contract voidable.

D) Mistakes of Indian law renders a contract voidable.

5) A and B makes a contract grounded on the erroneous belief that a

D) All of the above

Objective Questions with Answers on Law Of Contracts - 21

2) Which is not the correct statement ?

A) If consent is the result of coercion, the agreement is void.

B) If a party is minor, the agreement is void .

C) If the object of an agreement is unlawful, the agreement is void.

D) If the consideration of an agreement is unlawful, the agreement is void .

4) Which may render an agreement void ?

A) Coercion causing consent.

B) Undue influence causing consent.

C) Fraud causing consent.

D) Agreement in restraint of trade.

5) Where both the parties to an agreement under a mistake of fact essential