Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 9

1.

The provisions of about communication of senses in Section 2 of the Indian Contract Act,
acceptance in various legal systems falls into 1872?
which of the following categories? A. Act which value
A. The system of information B. Such acts, the performance of which is not
B. The system of declaration already legal due from promise
C. The mixed or electric system C. Both (A) and (B)
D. All of them D. None of these
Ans: D Ans: C
2. The relation of dependence may arise: 8. The theories or juristic bases for the
A. From a special authority or confidence doctrine of frustration were evolved for
committed to the donee justifying the departure from the doctrine of
B. From the feebleness in body or mind of the absolute contracts. The main theories are:
donor I. Implied term theory
C. Either (A) or (B) II. Basis or foundation of the contracts
D. None of these III. Just and reasonable solution
Ans: C IV. Radical change in the obligation under the
3. The right to surety to indemnity is an contracts
incident of the guarantee: A. II, III
A. The principal-debtor will be liable B. IV
B. Without the necessity of any further request C. I
for all sums subsequently paid by the surety D. All of them
under the guarantee as money paid to the use of Ans: D
the principal-debtor 9. The UNIDROIT principles expressly
C. Both (A) and (B) provide that in ascertaining the intention of
D. None of these parties, be it the subjective intention or the
Ans: C ‘reasonableness’ test, regard shall be had to
4. The rule of limitation in a foreign country, which of the following circumstances:
where the contract is made, may be set up as a I. Preliminary negotiation between the parties
defence to a suit filed in India if: II. Practices which the parties have established
A. The rule has extinguished the contract between themselves
B. The parties were domiciled in that foreign III. The conduct of the parties subsequent to
country during the period prescribed by that rule conclusion of the contract
C. Both (A) and (B) IV. The nature and purpose of the contract
D. None of these V. The meaning commonly given to terms and
Ans: C expressions in the trade concerned
5. The subject-matter of Section 8 of the VI. Usages
Indian Contract Act, 1872 is divided in to: A. I, II, IV, V
A. Performance of the conditions of a proposal B. Ill, IV, VI
and C. IV, V
B. Acceptance of any consideration for D. All of them
reciprocal promise which may be offered with a Ans: D
proposal, 10. The use of the word person in Section 2 (c)
C. Both (A) and (B) of the Indian Contract Act, 1872 indicates:
D. None of these A. Just a human being
Ans: C B. It must be given extended sense to include
6. The term law in the expression “forbidden governments
by law” would include any enactment or rule C. Both (A) and (B)
of law for the time being in force in India D. None of these
which would fall under which of the following Ans: B
sub heads? 11. The word ‘loss or damage may be:
A. The provisions of any legislative enactment A. Harm to person
B. The rules of Hindu or Mahomedan law B. Harm to property
C. Other rules for the time being in force in India C. Injury to economic position
D. All of them D. All of them
Ans: D Ans: D
7. The terms ‘benefit’ and ‘detriment’ have 12. The word ‘signifies’ in the definition of S.
been used by courts in which of the following 2 of the Indian Contract Act, 1872 indicates:
A. That the offer must be communicated to the D. All of them
person to whom it is made Ans: D
B. That the offer need not be communicated to 18. Under Section 55 of the Indian Contract
the person to whom it is made Act a vendor has no right to make time of the
C. Either (A) or (B) essence of the contract unless:
D. None of these A. The vendor is able, ready and willing to
Ans: A proceed to completion
13. Time and place for performance of B. When the vendor purports to make time of the
promise, where time is specified and no essence of the contract, the purchaser must be
application to be made in which of the guilty of such default as to entitle the vendor to
following in the Indian Contract Act, 1872 rescind the contract, subject to it being done by a
A. Section 42 reasonable notice
B. Section 36 C. Both (A) and (B)
C. Section 47 D. None of these
D. Section 40 Ans: C
Ans: C 19. Under Section 55 of the Indian Contract
14. To constitute a bailment, the actual or Act, 1872 the intention of the parties can be
constructive possession of specific movable ascertained from:
property (goods) must be vacated by: I. The express words used in the contract
A. Its owner or possessor (bailor) II. The nature of the property which forms the
B. His agent duly authorised for that purpose, in subject matter of the contract
favour of another per son (the bailee) III. The nature of the contract itself
C. Either (A) or (B) IV. The surrounding circumstances
D. None of these A. II, III
Ans: C B. IV
15. To which of the following the lien C. I
claimable under S. 221 of the Indian Contract D. All of them
Act is confined to? Ans: D
A. Commission 20. Under which of the following any
B. Disbursement provision of the Indian Contract Act, 1872
C. Services in respect of the specific property would be void, if inconsistent with the
D. All of them fundamental rights?
Ans: D A. Article 11 of the Constitution of India
16. Unconscionable contract is an: B. Article 12 of the Constitution of India
A. Agreement that is so outrageously unfair to C. Article 13 of the Constitution of India
one party that a Court refuses to enforce it in a D. Article 14 of the Constitution of India
Court of law Ans: C
B. Agreement that is so outrageously unfair to 21. Under which of the following bailee is not
one party which can still be enforced it in a responsible on re-delivery to bailor without
Court of law title in the Indian Contract Act, 1872?
C. Either (A) or (B) A. Section 166
D. None of these B. Section 159
Ans: A C. Section 163
17. Under Section 18 of the Indian Contract D. Section 160
Act, 1872, misrepresentation falls under: Ans: A
A. A statement of fact, which is false, would be 22. Under which of the following
misrepresentation if the maker believes it to be circumstances as per the Special Relief Act,
true, but which is not justified by the information 1963, the Court may refuse to rescind the
he possesses contract in a suit for rescission?
B. Any breach of duty which gains an advantage I. The plaintiff was has expressly or implied
to the person committing it by misleading ratified the contract
another to his prejudice, there being no intention II. Due to change in circumstances after the
to deceive making of the contract (not due to the act of the
C. Causing a party to an agreement to make a defendant himself), the parties cannot be
mistake as to the substance of the thing which is substantially restored to the positions in which
the subject of the agreement, even though done they stood when the contract was made
innocently
III. Third parties have during the subsistence of D. All of them
the contract, acquired rights in good faith Ans: D
without notice and for value 27. What is the purpose of the rule of
IV. Only a part of the contract is sought to be mitigation?
rescinded and such part is not severable from the A. To prevent the waste of limited resources in
rest of the contract society which forces the innocent party, the
A. I, III plaintiff to find a substitute after the defendant’s
B. II, IV breach
C. IV B. To enable the defendant to commit efficient
D. All of them breach of contract where the defendant
Ans: D deliberately would break his contractual
23. Under which of the following pawnee is relationship for a better opportunity
not to retain for debt or promise other than C. Both (A) and (B)
that for which goods pledged in the Indian D. None of these
Contract Act, 1872? Ans: C
A. Section 174 28. When a statute clearly covers a case, it is
B. Section 171 hardly necessary to refer to decisions. In
C. Section 173 which of the following cases it was so upheld?
D. Section 178 A. Lala Kapurchand Godhav. MirNawab
Ans: A Himayatalikhan Azamjah
24. Unless the terms of the guarantee provide B. State of Madras v. Gannon Durkerley & Co.
other, the surety is entitled to claim relief Ltd.
from the principal-debtor immediately: C. Firm Kanhaiyalal v. Dineshchandra
A. As often as he pays anything under his D. Bhagwandas Goverdhandas Kedia v.
guarantee as it falls due Girdharilal Parshottamdas and Co.
B. And is not required to pay the whole debt due Ans: A
from the principal-debtor before compelling 29. When did the Indian Contract Act, 1872
reimbursement come into force?
C. Both (A) and (B) A. September 1
D. None of these B. September 5
Ans: C C. September7
25. Void contract is: D. September 10
A. A contract which ceases to be enforceable by Ans: A
law but is in effect 30. When the guarantee is expressed to be a
B. A contract which ceases to be enforceable by continuing guarantee and to apply to the
law is no longer enforceable balance for time-to- time owing by the
C. Either (A) or (B) principal-debtor to the creditor times runs:
D. None of these A. Only from the date when each of such balance
Ans: B is constituted by the excess of total debits over
26. What are the conditions for the total credits
application of the S. 235 of the Indian B. Not from the date when each advance is made
Contract Act? to the principal-debtor
I. The agent has made an untrue representation C. Either (A) or (B)
that he is authorised agent of another (which may D. None of these
also be a representation as to the extent of Ans: A
authority of the agent) 31. Where a contract is one of guarantee:
II. The representation relates to fact A. The surety need not be called upon to pay
III. The third party has been misled or induced to unless the principal-debtor has committed a
deal with the agent on the faith of such default
representation B. The surety is entitled to all the rights, viz, of
IV. The principal has repudiated or refused to discharge, subrogation of securities, indemnity
ratify the transaction from the principal-debtor, etc. provided in ss.
V. The third party has suffered a loss in 133 to 145; though an indemnifier is entitled to
consequence rights given by ss. 140 and 141
A. I, II C. Both (A) and (B)
B. II, IV D. None of these
C. Ill, IV Ans: C
32. Where the bailment is for hire, it may be: A. Bailment of goods
I. Hiring the use of goods B. Bailment by way of security
II. Hiring the use of labour or work on or with C. Security of payment of debt
regard to the goods D. All of them
III. Hiring of custody i.e. of services in keeping Ans: D
the goods 38. Which of the following are the conditions
IV. Hiring of carriage of goods for the application of Section 70 of the Indian
A. I, II Contract Act, 1872?
B. II, IV A. The goods are to be delivered lawfully or
C. Ill, IV something has to be done for another person
D. All of them lawfully
Ans: D B. The thing done or the goods delivered must be
33. Where the law is codified, it is of little done or delivered without intention to do so
avail enquire what is the law apart from such gratuitously
codification. The code itself must be looked to C. The person to whom goods are to delivered
as the guide in the matter. This refers to enjoys the benefit thereof
which of the following cases: D. All of them
A. Burn & Co. v. McDonald Ans: D
B. Produce Brokers Co. Ltd. v. Olympia Oil and 39. Which of the following are the
Cake Co. Ltd. requirements for the application of the
C. Moult v. Halliday provisions of Section 69 of the Indian
D. Llyod v. Guibert Contract Act, 1872?
Ans: A A. The plaintiff must have made an actual or
34. Where the seller wrongfully neglects or virtual payment of money
refuses to deliver the goods to the buyer, the B. The plaintiff must have been compelled to pay
buyer may sue the seller for: this money to a third party
A. Damages for non-delivery C. The defendant must have been legally liable
B. Specific performance subject to the provisions to pay the third party. Though the plaintiff would
of the Specific Relief Act, 1963 usually stand in some kind of relationship to the
C. Breach of warranty in which event the buyer person for whom he paid, no relationship of
may set up against the seller such breach in privity is necessary to give a right of action
diminution or extinction of the price or sue the D. All of them
seller for damages for breach of warranty Ans: D
D. All of them 40. Which of the following binds the principal
Ans: D under S. 229 of the Indian Contract Act?
35. Which of the deals with the effect of A. Notice or intimation given to an agent
novation, rescission and alteration of contract B. Knowledge of any fact material to such
in the Indian Contract Act, 1872? transaction acquired by the agent
A. Section 68 C. Either (A) or (B)
B. Section 50 D. None of these
C. Section 61 Ans: C
D. Section 62 41. Which of the following cases S. 235 of the
Ans: D Indian Contract Act, 1872 does not apply?
36. Which of the following Amendment Acts A. The case of a man who represents that he has
inserted Section 19A into the Indian Contract authority from another when he has no authority
Act? whatever
A. Indian Contract (Amendment) Act, 1899 (6 of B. The case of a man who represents that he has
1899) certain authority from another when he has
B. Indian Contract (Amendment) Act, 1899 (7 of authority of another description
1899) C. The case of an agent whose authority is
C. Indian Contract (Amendment) Act, 1899 (8 of terminated without his knowledge
1899) D. Both (A) and (B)
D. Indian Contract (Amendment) Act, 1899 (9 of Ans: D
1899) 42. Which of the following conditions are
Ans: A essential before the application of the second
37. Which of the following are essential paragraph of Section 56 of Indian Contract
conditions of pledge? Act, 1872?
A. A valid and subsisting contract before the 49. Which of the following deals with agent’s
parties duty to pay sums received for principal in the
B. There must be some part of the contract yet to Indian Contract Act, 1872?
be performed A. Section 211
C. The contract after it is entered into becomes B. Section 219
impossible of performance C. Section 218
D. All of them D. Section 210
Ans: D Ans: C
43. Which of the following damages are 50. Which of the following deals with
punitive in nature? agreement in restraint of marriage void in the
A. Aggravated damages Indian Contract Act, 1872?
B. Exemplary damages A. Section 22
C. Both (A) and (B) B. Section 26
D. None of these C. Section 19
Ans: B D. Section 20
44. Which of the following deals with Ans: B
“Continuing guarantee” in the Indian 51. Which of the following deals with
Contract Act, 1872? agreement to do impossible act in the Indian
A. Section 129 Contract Act, 1872?
B. Section 126 A. Section 52
C. Section 123 B. Section 56
D. Section 130 C. Section 55
Ans: A D. Section 59
45. Which of the following deals with “when Ans: B
agent cannot delegate” in the Indian Contract 52. Which of the following deals with
Act, 1872? agreement void where both parties are under
A. Section 190 mistake as to matter of fact in the Indian
B. Section 191 Contract Act, 1872?
C. Section 185 A. Section 14
D. Section 181 B. Section 18
Ans: A C. Section 19
46. Which of the following deals with “when D. Section 20
principal may revoke agent’s authority” in Ans: D
the Indian Contract Act, 1872? 53. Which of the following deals with
A. Section 203 agreements by way of wager, void in the
B. Section 205 Indian Contract Act, 1872?
C. Section 192 A. Section 22
D. Section 204 B. Section 30
Ans: A C. Section 19
47. Which of the following deals with agent’s D. Section 20
accounts in the Indian Contract Act, 1872? Ans: B
A. Section 211 54. Which of the following deals with
B. Section 219 agreements void, if consideration and objects
C. Section 213 unlawful in part in the Indian Contract Act,
D. Section 210 1872?
Ans: C A. Section 22
48. Which of the following deals with agent’s B. Section 28
duty on termination of agency by principal’s C. Section 19
death or insanity in the Indian Contract Act, D. Section 24
1872? Ans: D
A. Section 200 55. Which of the following deals with
B. Section 203 communication, acceptance and revocation of
C. Section 209 proposals in the Indian Contract Act, 1872?
D. Section 204 A. Section 1
Ans: C B. Section 2
C. Section 3
D. Section 4
Ans: C D. Section 59
56. Which of the following deals with contract Ans: C
caused by mistake of one party as to matter of 63. Which of the following deals with skill and
fact in the Indian Contract Act, 1872? diligence required from agent in the Indian
A. Section 14 Contract Act, 1872?
B. Section 22 A. Section 211
C. Section 19 B. Section 212
D. Section 10 C. Section 215
Ans: B D. Section 210
57. Which of the following deals with Ans: B
definition of “Undue influence” in the Indian 64. Promises, express or implied are dealt
Contract Act, 1872? under which of the following of the Indian
A. Section 14 Contract Act, 1872?
B. Section 18 A. Section 9
C. Section 19 B. Section 2
D. Section 16 C. Section 3
Ans: D D. Section 4
58. Which of the following deals with Effect of Ans. (A)
mistakes as to law in the Indian Contract Act, 65. Promisor not bound to perform, unless
1872? reciprocal promise ready and willing to
A. Section 21 perform is dealt under which of the following
B. Section 18 in the Indian Contract Act, 1872?
C. Section 19 A. Section 51
D. Section 10 B. Section 50
Ans: A C. Section 55
59. Which of the following deals with D. Section 59
enforcement of contracts contingent on an Ans. (A)
event happening in the Indian Contract Act, 66. Quasi or Constructive Contracts is one
1872? where an implied contract has also been
A. Section 22 applied to a class of obligations which are
B. Section 28 imposed or created by law without regard to
C. Section 19 the assent of the party bound:
D. Section 32 A. On the ground that they are dictated by reason
Ans: D and justice
60. Which of the following deals with how B. Which are allowed to be enforced by an
revocation of proposal is made in the Indian action ex contractu, for there is no agreement
Contract Act, 1872? C. But they are clothed with the semblance of
A. Section 2 contract for the purpose of remedy
B. Section 6 D. All of them
C. Section 3 Ans. (D)
D. Section 4 67. Reciprocal contract is:
Ans: B A. A contract in which the consideration consists
61. Which of the following deals with liability of mutual promises
of co-sureties bound in different sums in the B. A bilateral agreement
Indian Contract Act, 1872? C. both (A) and (B)
A. Section 149 D. None of these
B. Section 135 Ans. (C)
C. Section 147 68. Reimbursement under Section 69 of the
D. Section 140 Indian Contract Act, 1872 claimed
Ans: C ___________ from the date on which the
62. Which of the following deals with money was paid.
reimbursement of person paying money due A. within a year
by another, in payment of which he is B. within two years
interested in the Indian Contract Act, 1872? C. within three years
A. Section 68 D. within three and a half years
B. Section 50 Ans. (C)
C. Section 69
69. Relation between principal and person C. either (A) or (B)
duly appointed by agent to act in business of D. None of these
agency Ans. (A)
A. Section 180 76. Section 134 of the Indian Contract would
B. Section 190 not apply where the release or discharge:
C. Section 185 A. is not caused at the instance
D. Section 194 B. is not caused by any act of the creditor
Ans. (D) C. either (A) or (B)
70. Representees may be: D. None of these
A. persons to whom the representation is directly Ans. (C)
made and their principals 77. Section 135 of the Indian Contract Act,
B. persons to whom the representor intended the 1872 deals with:
representation to be passed A. The case in which the surety is discharged by
C. members of class at which the representation a contract between the creditor and the principal-
was directed debtor, entered into without the surety’s consent,
D. All of them to give time to, or not to sue, the principal-debtor
Ans. (D) B. The case of mere forbearance to sue as
71. Right of person dealing with agent distinguished from forbearance springing from a
personally liable is discussed under which of contract and provides that the surety shall not be
the following in the Indian Contract Act, discharged in such a case
1872? C. both (A) or (B)
A. Section 238 D. None of these
B. Section 222 Ans. (C)
C. Section 236 78. Section 13 8 of the Indian Contract Act,
D. Section 233 1872 is a necessary consequence of the
Ans. (D) principle laid down in___________ and must
72. Right of principal when agent deals, on his be taken as a deliberate extension of a rule
own account, in business of agency without which in the common law
principal’s consent is dealt under which of the A. S. 44; is limited to the case of co-sureties
following in the Indian Contract Act, 1872? contracting severally and not jointly
A. Section 211 B. S. 44; is limited to the case of co-sureties
B. Section 219 contracting severally
C. Section 217 C. S. 44; is limited to the case of co-sureties
D. Section 215 contracting jointly
Ans. (D) D. None of these
73. Section 11 of the Indian Contract Act, Ans. (A)
1872 deals with which of the following? 79. Section 139 of the Indian Contract Act,
A. personal capacity arising from age 1872 is a residual section, the object of which
B. personal capacity arising from soundness of is to:
mind A. Ensure that no arrangement different from
C. personal capacity arising from the provisions that contained in the surety’s contract is forced
of law upon him
D. All of them B. Ensure the surety, if he pays the debt, has the
Ans. (D) benefit of every remedy which the creditor has
74. Section 127 provides that ______________ against the principal-debtor
is sufficient consideration for the guarantee. C. both (A) and (B)
A. anything done D. None of these
B. a promise made for the benefit of the Ans. (C)
principal-debtor 80. Section 17(1) defines which of the
C. either (A) or (B) following ingredients?
D. None of these I. There should be a suggestion as to a fact
Ans. (C) II. The fact suggested should not be true
75. Section 128 of the Indian Contract Act, III. The suggestion should have been made by a
1872 explains the quantum of surety’s person who does not believe it to be true
obligation: IV. The suggestion should be made with intent
A. When the terms of the contract do not limit it either to deceive or to induce the other party to
B. When the terms of the contract limit it enter into contract
A. I, II, IV Ans. (C)
B. II, IV 86. Section 41 of the Indian Contract Act
C. III. IV applies to cases of:
D. All of them A. assignment
Ans. (D) B. subrogation
81. Section 201 of the Indian Contract Act is C. both (A) and (B)
not exhaustive. An agency may be terminated D. None of these
by other modes such as: Ans. (A)
I. my mutual agreement 87. Section 65 of the Indian Contract Act,
II. completion of the term of agency by expiry of 1872 provides that when the contract becomes
time agreed upon void, any person who has received any
III. destruction of the subject-matter of the advantage under it is:
agency A. bound to restore it
IV. the agency becoming subsequently unlawful B. make compensation for it to the person from
V. Dissolution of the principal firm whom it was received
A. I, II C. either (A) or (B)
B. II, IV D. None of these
C. Ill, V Ans. (C)
D. All of them 88. Section 69 of the Indian Contract Act,
Ans. (D) 1872 embodies which of the following
82. Section 202 of the Indian Contract Act, doctrines?
1872 does not require that the documents A. Doctrine of frustration
authorising the agent: B. Doctrine of unjust enrichment
A. contain reference to the interest of the agent C. Doctrine of implied contract
secured by the document D. None of these
B. give the power to appropriate the amounts Ans. (B)
collected towards any debt due to the agent 89. Section 72 of the Indian Contract Act,
C. either (A) or (B) 1872 has been restricted to cases of payment
D. None of these of delivery:
Ans. (C) A. made by mistake
83. Section 227 of the Indian Contract Act, B. made under coercion
1872, provides that where the agent exceeds C. either (A) or (B)
the authority and does certain acts, the D. None of these
principal would be bound only by those acts Ans. (C)
which are authorised, provided: 90. Section 74 of the Indian Contract Act,
A. they can be separated from unauthorised acts 1872 applies to:
B. they cannot be separated by those acts that are A. Compromise decrees
beyond authorisation B. It is open to a court executing such decree to
C. both (A) and (B) go behind it if it contains a stipulation which is
D. None of these by way of penalty
Ans. (C) C. both (A) and (B)
84. Section 27 of the Specific Relief Act gives D. None of these
power to the Courts to adjudge rescission of a Ans. (C)
contract where a contract is unlawful: 91. Section 74 of the Indian Contract Act,
A. for causes not apparent on its face 1872 requires proofs of:
B. the defendant is more to blame than the A. general damages
plaintiff B. actual or quantum of damages
C. both (A) and (B) C. either (A) or (B)
D. None of these D. None of these
Ans. (C) Ans. (A)
85. Section 39 deals with: 92. Where there are two courts which would
A. refusal or renunciation by the promisor to normally have the jurisdiction, an agreement
perform to file suit in one of those courts alone, is:
B. disabling himself from performing the (a) void
promise in its entirety (b) valid
C. either (A) or (B) (c) voidable
D. None of these (d) unenforceable.
Ans. (b) (b) the acceptor must have the knowledge of the
93. An obligation under a contract stands offer before acceptance by performance
discharged: (c) the acceptor may acquire the knowledge of
(a) by proper performance the offer after the performance of the condition
(b) by dispensation with the performance amounting to acceptance
(c) by death of the contracting party if the (d) none of the above.
contract is personal in nature Ans. (b)
(d) all the above. 100. The principle, performance of a
Ans. (d) condition is a sufficient acceptance
94. Under assignment of contract: without notification is contained in:
(a) benefits under the contract can be assigned (a) section 8
without the consent of other party (b) section 7
(b) burden under the contract cannot be assigned (c) section 6
without the consent of other party (d) section 9.
(c) both (a) & (b) Ans. (a)
(d) neither (a) nor (b).
Ans. (c)
95. In cases of refusal to perform by one
party, the other party:
(a) can ignore the notice of refusal for the time
being and wait till the time when the contract is
to be executed
(b) can treat the repudiation as wrongful putting
an end to the contract
(c) can waive his right to rescission by
acquiescence
(d) all the above.
Ans. (d)
96. A contract is not frustrated:
(a) by commercial impossibility
(b) by imposition of government restrictions or
orders
(c) by destruction of subject matter of contract
(d) all the above.
Ans. (a)
97. Under section 73 of the Contract Act:
(a) special damages cannot be claimed
(b) special damages can be claimed if the party
breaking the contract is made known of the
special circumstances at any time before the
breach
(c) special damages can be claimed if the party
breaking the contract is made known of the
special circumstances at the time of contract
(d) none of the above.
Ans. (c)
98. Section 73 of the Contract Act applies to
contract:
(a) for sale of moveable properties
(b) for sale of immoveable properties
(c) both (a) & (b)
(d) none of the above.
Ans. (c)
99. In cases of general offer, for a valid
contract:
(a) the acceptor need not have the knowledge of
the offer

You might also like