Contract 15TH Edition MCQ

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An agreement enforceable at law is a
(a) enforceable acceptance (b) accepted offer
(c) approved promise
(d) contract.
Every promise and every set of promises, forming the consideration for each other, is an (a)
agreement
(b) contract
(c) offer
(d) acceptance.
1. Promises which form the consideration or part of
the consideration for each other are called
(a) reciprocal promises
(b) cross offers
(c) conditional offer
(d) conditional promises.
4 An agreement not enforceable by law is stated
to be void under
(a) section 2(d)
(b) section 2(e)
(c) section 2(f)
(d) section 2(g).
Void agreement signifies
(a) agreement illegal in nature
(b) agreement not enforceable by law
(Ç) agreement violating legal procedure
(a) agreement against public policy.

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Offer as defined under section 2(a) is
a) communication from one person to another 0) Suggestion by one person to another
) willingness to do or abstain from doing an t n order to obtain the assent of other thereto
() none of the above.
1. Under section 2(b) if the person to whom the Proposal is made signifies his assent the
Proposal is said to have been
la) accepted
b) agreed
O provisionally agreed tentatively: accepted.
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8. A proposal when accepted becomes (a) promise under section 2(6)
(b) agreement under section 2(e) (c) contract under section 2(h) (d) none of the above.
9. When, at the desire of the promisor, the promisee or any other person has done or
abstained from doing or, does or abstains from doing or promises to do or to abstain from
doing something, such act or abstinence or promise under section 2(d) is called
(a) reciprocal promise
(b) consideration for the promise
(c) counter offer
(d) acceptance.
10. Promises which form the consideration or part thereof, for each other under section 2()
are called
(a) acceptances for different proposals
(b) agreements
(c) reciprocal promises
(d) consideration.
11. Every promise or set of promises forming the consideration for each other under section
2(e) is called
(a) reciprocal promise
(b) contract
(c) agreement
(d) none of the above.
12. An agreement enforceable by law at the instance of one party & not of other party under
section 2(i) is called
(a) a valid contract
(b) an illegal contract
(c) a void contract (d) a voidable contract.
13. Which is correct
(a) proposal + acceptance = promise (b) promise + consideration = agreement
(c) agreement + enforceability = contract (d) all the above.
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14. In a valid contract, what comes first
(a) enforceability
(b) acceptance
(c) promise (d) proposal.
15. Under section 2(c) promisor is the (a) person who makes the proposal (b) person who
accepts the proposal (c) person who makes the promise (d) person to whom the proposal is
made.
16. Under section 2(c) promisee is the
(a) person who makes the proposal (b) person who accepts the proposal (c) person who
makes the promise (d) person to whom proposal is made.
17. Goods displayed in a shop with a price tag is an
(a) offet
(b) invitation to offer
(c) counter offer

18. Tender is
(a) an offer
(b) an ínvitation to offer
(c) a counter offer
(d) a promise.
19. Communication of a proposal is complete
(a) when it is put in the course of transmission (b) when it comes to the knowledge of the
person to whom it is made
(c) when the proposal is communicated to the person to whom it is made
(d) all the above.
20. Communication of acceptance is complete as against fhe proposer
(aj when it comes to the knowiedge of the proposer
(b) when it is put ín the course of transmissíon to hin so as to be out of power of the acceptot
() when the acceptance is Communicated to the propser
(d) all the above.
21. Communication of acceptance is complete as against the acceptor
(a) wher it comes to the knowiedge of the proposer
fbj when it is put in the ourse of trarsmission (c) whers it is Intruricated to the acceptor that
the acceptance has reached the propner
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(d) when the proposer conveys the acceptance
to the acceptor.
22. Revocation of offer by letter or telegram be complete
(a) when it is despatched
(b) when it is received by the offeree
(c) when it reaches the offeree (d) both (a) and (c).
23. Acceptance to be valid must (a) be absolute
(b) be unqualified
(c) both be absolute & ungualified (d) be conditional.
24. A contract with or by a minor is a
(a) valid contract
(b) void contract
(c) voidable contract
(d) voidable at the option of either party.
25. A contractwhich ceares to be enforceable by
law becomes void
(a) when it ceases to be enforceable
(b) before it ceases to be enforceable
(c) no such condition necessary
(d) none of above.
26. An acceptance can be revoked
(a) at any time before the communication of acceptance is complete as against the promisee
the
(b) after
to
its acceptance knowledge of the promisee
Comes
(c) both (a) & (b)
(d) neither (a) nor (b).
27. A proposal stands revoked
(a) by communication of notice of revocation
by the proposer
(b) by failure of acceptor to fulfil a condition precedernt
(c) by death or insanity of proposer to t knowledge of acceptor
(d) all the above.
28. A proposal can be accepted
(a) by notice of acceptance
(b) by performance of condition of proposal (C) by acceptarnce of consideration for

reciprocal promise
(d) all the above.
29. Enforceable agreements are the one
(a) made by free consent
(b) parties to the contract are competent enter into an agreement
(c) having lawful consideration & lawful
object
(d) all the above.
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Competency to contract relates to (a) age of the parties
b) soundness of mind of the parties both age && soundness of mind (d) intelligence of the
parties.
(c)
Which one of the following is correct
la) past consideration is no consideration
b) consideration can be past, present or future
i consideration can only be present
id) consideration can only be present & future.
2 Past consideration is valid in
(a) England only
(6) India only

(c) both in England & India
ia neither in England nor in India.
t. An agreement not to raise the plea of limitation is
(a) valid & binding
(b) void
(c) voidable
(d) illegal.
34 A letter of acceptance sent by post is lost in transit
(a) there is a concluded contract as the letter of acceptance is put in the course of
transmission
(b) there is no concluded contract as the acceptance has not come to the knowledge of the
proposer
(c) there is no concluded contract as the acceptance has not been communicated to the
proposer
(d) all the above.
D. When the consent to the contract is caused by COercion, the contract under section 19 is
la) valid
(b) voidable
() void (d) ilegal.
6. A's son forged B's name to a promissory note. B under threat of pprosecuting A's son
obtains a bond from A for the amount of the forged
tote, If B sues on this bond the court
a) has no jurisdiction in this case
must not set aside the bond
may set aside the bond (a) none of above.
When
by
caused
the
cOnsent
is
misrepresentation, the contract under section
19 is la) valid
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(c) voidable (d) illegal.
38. When the consent is caused by undue influence, the contract under section 19A is
(a) valid
(b) void
(c) voidable (d) illegal.
39. Where both the parties are under mistake as to matter of fact, the contract under section
20 is (a) voidable
(b) void
(c) valid
(d) illegal.
40. Where one of the parties is under a mistake as
to matter of fact the contract is
(a) valid
(b) void
(c) voidable
(d) illegal.
41. Considerations & objects are unlawful where
it is
(a) forbidden by law or defeat the provision of any law
(b) which is fraudulent

(c) which is immoral & against the public policy
(d) all the above.
42. If only a part of the consideration or object unlawful, the contract under section 24 shall
be (a) valid
(b) voidable
(c) void
(d) illegal.
43. A contract without consideration under section 25 is
(a) valid
(b) voidable
(c) void
(d) illegal.
44. Consideration should be something in return of promise which
(a) both the law and parties regard, as having some value
(b) only law regards a having some value
(c) only the parties regard some value
(d) only adequate value necessary.
45. If the proposer prescribes the mode & manner of acceptance, the acceptance
(a) can be in any manner & mode
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manner & mode
(b) should be in the prescribed
(c) can be in any reasonable mode & manner (d) all the above.
46. Parties are not competent to contract if any of
them is
(a) minor
(b) insane
(c) declared unqualified
(d) all the above.
47. Consent is free under section 14 if not caused
by
(a) coercion & undue influence
(b) fraud and misrepresentation
(c) mistake subject to the provisions of sections 20, 21 and 22
(d) all the above.
48. Consent under section 13 means
(a) agreeing on the same thing in the sane
sense
(b) agreeing on the same thing at the same time
(c) agreeing on the same thing at different time
(d) agreeing on different things at different
times.
49. A contract which is valid initially however, ceases to be enforceable subsequently, the
contract
(a) remnains valid
(b) becomes voidable when it ceases to be enforceable
(c) becomes void when it ceases to be enforceable
(d) becomes void since inception.
50. Agreements, the meaning of which is not certain or not capable of being made certain
under section 29 is
(a) void
(b) voidable
(c) illegal
(d) valid.
51. An agreement in restraint of trade under
section 27 is
(a) valid
(b) voidable
(c) void
(d) unenforceable.
52. An agreement in restraint of trade is valid under section 27 if relates to
(a) sale of goodwill
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(b) mutual adjustment (c) business contingency (d) none of the above.
53. An agreement not to pursue any legal remmed
to enforce the rights under section 28 is (a) valid
(b) voidable
(c) void
(d) unenforceable.
54. An agreement not to persue legal remedies L. to refer the dispute to the arbitrator, unde
section 28 is
(a) valid
(b) voidable
(c) void
(d) unenforceable.
55. An agreement to refer the dispute to the
arbitrator is valid
(a) in respect of disputes already arisen

(b) in respect of disputes which may arise i future
(c) both (a) & (b)
56. An agreement by way of wager under sectiot
30 is
.(a) void
(b) voidable
(c) valid
(d) unenforceable.
57. An agreement in connection with horse-racing under section 30 is
(a) unlawful
(b) void
(c) voidable
(d)
valid.
58. An agreement in restraint of marriage unde
section 26 is
(a) void
(b) voidable (c) valid
(d) unenforceable.
S9, lf only a part of the consideration or object unlawful, the contract under section 24 Sn be
(a) valid to the extent the same are lawtul (b) void to the extent the same are unlawtu (c)
void as a whole
(d) valid as a whole.
b0. An agreement shall be void on account of
(a) mistake of fact by one party
(b) mistake of fact by both the parties

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(c) mistake of foreign law (d) both (a) & (b).
Coercion which vitiates free consent under
section 15 is
a committing or threatenüng to commit any act which is forbidden by law
) committing or threatening to commit any act which is forbidden by Indian Penal Code
( undawful detaining or threatening to detain any property with an intention to causing any
person to enter into an agreement (d) all the above.
62 What is correct of a standard form contract (a) it is a valid contract
(b) one party has no choice but to accept &
sign the contract
(c) both (a) & (b)
(d) the consent is not a free consent.
63, Law of contract primarily
(a) specifies the circumstances in which promises are binding on the parties to the
contract
(b) lays down certain norms by which the parties are bound
(c) lays down the circumstances under which a promise may be made
(d) all the above.
6. Misrepresentation under section 18 means la) a positive assertion, in a manner not

warranted by the information of the person making it, not true but he believes it to be
true
(b) any breach of duty, which gains an advantage to the person committing it, by misleading
another to his prejudice
) causing a party to make an agreement to make a mistake as to the subject matter of

Contract
(d) all the above.

Petson is deemed to be in a position to dominate the will of another by undue influence if the
mental capacity is affected temporarily or permanently by
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(a) reason of age
(b) reason of illness
tC) mental or bodily distres$ {d) all the above.
Breement to remain umarried is a) valid
f6. An
(b) voidable (c) void
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(d) unenforceable.
67. A general offer open for world at large can be accepted
(a) by sending a communication of acceptance (b) by compiying with the conditions of offer
(c) by tendering himself to comply the conditions of offer
68. The term consensus ad-idem means
(a) general consensus
(b) reaching an agreement
(c) meeting of minds upon the same thing in the same sense
(d) all the above.
69. Which one of the following does not amount to fraud
(a) suggestion as a fact which is not true, by one who does not believe it to be true
(b) active concealment of a fact
(c) a representation made without knowing it to be false, honestly believing it to be true (d) a
promise made without any intention of performing it.
70. Contract without consideration made in writing & registered and made on account of
natural love and affection is
(a) void
(b) voidable
(c) valid
(d) unenforceable.
71. Inadequacy of consideration does not make
the contract
(a) void
(b) voidable
(c) unenforceable
(d) neither void nor voidable.
72. Inadequacy of consideration is relevant in determining the question of
(a) fraud
(b) misrepresentation
(c) undue influence
(d) free consent.
73. Agreement without consideration is valid (a) when made out of love & affection due to
near relationship
(b) when made ta compensate a person who has already done something voluntarily (c)
when made to pay a time barred debt (d) all the above.
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74. A contract based on the happening or non- happening of a future event under section 31
is called
(a) a contingent contract
(0) a Vagering contract
(c) a contract marked with uncertainty and hence void
75. A contingent contract to do or not to do anything on the happening of an uncertain future

event under section 32
(a) is never enforceable (b) becomes enforceable
only on the
happening of that event
(c) enforceable since the time of making it
(d) becomes enforceable in the immediate possibility of happening of that event.
76. A contingent contract
(a) is void
(b) never becomes void
(c) becomes void when the event becomes
impossible
(d) is voidable.
77. A contingent agreement based on an impossible event under section 36
(a) is void
(b) is void till the impossibility is known the knowledge of
(c) becomes void on
impossibility
(d) all the above.
78. What is true of misrepresentation
(a) it is the same thing as fraud
(b) it renders the contract voidable
(c) it may be due to innocence (d) both (b) & (c).
79. Two persons have the capacity to contract
under section 11
(a) if both are major
(b) if both are not of unsound mind
(c) if none is declared unqualified to contract (d) all are correct.

80. A contract with minor is
(a) voidable at the instance of the minor
(b) voidable at the instance of other party (c) void
(d) valid.
81. An agreement to do an act impossible in itself
under section 56 is
(a) void
(b) valid
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(c) voidable
(d) unenforceable.
82. A contingent contract based on the specifoa uncertain event happening within a fixed
ime under section 35
(a) remains valid even if the event does mos happen within that fixed time
(b) becomes void at the expiration of the time fixed
(c) becomes void if the happening of that event becomes impossible before the expiry of
time fixed
(d) both (b) & (c).
83. A contingent contract based on the specified uncertain event not happening within a
fixed time under section 35
(a) carn be enforced if the event does not happen within the time fixed
(b) can be enforced if before the expiry of time fixed, it becomes certain that such an event
shall not happen
(c) cannot be enforced at all, being void (d) both (a) & (b).
84. A promisor can perform
(a) the promise himself
(b) the promise through his representa-tive competent to perform
(c) the promise through his representa-tive irrespective of the competency of that
representative
(d) both (a) & (b).
85. A promisee can accept the performance (a) from the promisor himself
(b) from the representative of the promisor
Competernt to perform
(c) from a third person (d) all the above.
86. In case of joint promise, generally
performance must be by
(a) all the promisors jointly
(b) any one of them individually
(c) one not authorised to perform
87. In cases of joint promise generally a promuse
can compel
(a) all the joint promisors to perform
(b) any one of them to perform
(c) some of them to perform (d) all the above.
88. Generally, the joint promisors can (a) compel each other to contribute equally
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(b) not to compel each other to contribute
equally
() cannot compel each other to contribute (d) none of the above.
Where one of the joint promisors makes a default in contribution of performance
ia) the other joint promisors have no right against the defaulter
(b) have to bear the loss in equal share
(c) not supposed to bear the loss

(d) the contract becomes void to that extent,
. In case of default by joint promisors the promisee
(a) can sue any one of them for the entire promise
b) can sue any one of them to the extent of his share in the joint promise
(c) both (a) & (b)
(d) cannot sue any single promisee.
9L. In case of death of a joint promisor(s) the promisee
(a) can enforce the contract against the survivor(s) of the said joint promisor(s) alongwith the
joint promisors who are alive
b) cannot enforce the contract against the survivor(s) of the said joint promisor(s)
(c) both (a) & (b)
(a) cannot enforce the contract against any of them.
n a contract not specifying the time for performance, the promisor can perform the
contract
(a) within any time howsoever long it may be
(b) within the shortest time
(c) within a reasonable time
93. What is a reasonable time for performnance of a
contract
(a) is a question of fact
(b) is a question of law
isa mixed question of fact & law
I9) is a question of prudence.
94, A contract not specifying the place of
performance
(a) performed at any place to the knowledge of

the promisee
b) the promisor has to apply to the promisee
O appointment of a place of performance C perform the promise at that place
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(c) the promisor need not seek any instructions from the promisee as to the place of
performance
(d) the promisor can perform the promise at a place other than the place appointed by the
promisee.
95. In case the promisee prescribes the manner and time of performance of promise
(a) the performance must be in the manner and at the time prescribed
(b) the performance can be in a different manner but at the time prescribed
(c) the performance can be in the manner prescribed but at a time beyond the time
prescribed
(d) the performarnce need not be in the manner and time prescribed.
96. If the time of performance of the contract is the essence of the contract and the promisor
fails to perform the contract by the specified time
(a) the contract becomes void
(b) the contract remains valid
(c) the contract becomes voidable at the instance of the promisee
(d) the contract becomes unenforceable.
97. If the time is not the essence of the contract the failure to perform the contract by the
specified time makes the contract (a) void
(b) voidable at the instance of the promisee (c) remains valid but the promisee can claim
compensation for the loss suffered by him by such failure
(d) remains valid & can be performed at any subsequent time without being liable for the loss
suffered by the promisee.
98. In contract for sale of immovable property the presumption is that the time is
(a) the essence of the contract
(b) not the essence of the contract

(c) the essence of the contract but failure does not make the contract voidable
(d) not the essence of the contract but makes the contract voidable at the instance of the
other party.
99. Reciprocal promises provide for doing certain things which are legal & certain others
which are illegal, under section 57
(a) the entire set of promises is void
(b) the first set is voidable, but the second set is void
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(c) the first set is valid but the second set is void
(d) the entire set of promises is valid.
100. A contract, performance of which becomes impossible or unlawful becomes
(a) void when the performance becomes unlawful or impossible
(b) void
(c) voidable when the performance becomes impossible.
(d) neither becomes void nor voidable
101. Under section 62, the original contract need
not be performed if there is
(a) novation of contract
(b) rescission of contract (c) alteration of contract (d) all the above.
102. A promisee can
(a) dispense with the performance in whole only
(b) dispense with the performance in part only (c) dispense with the performance wholly or in
part (d) all the above.
103. If a person at whose instance the contract is voidable rescinds it
(a) the other party is relieved of his promise
(b) the other party is liable to compensate the person who has rescinded the contract
(c) the other party is not liable to compensate the person rescinding the contract

104. Benefits received by a party under a void contract
(a) is liable to restore the benefits to the party from whom the benefits are received
(b) not liable to restore the benefits to that
party
(c) liable to restore the benefits to third party (d) liable to surrender the benefits to the State.
105. In contracts of sale of movable properties
(a) time is presumed to be of the essence of the contract
(b) time is not presumed to be of the essence of the contract
(c) both (a) & (b).
(d) no presumption as to time can be raised.
106. Under the Indian Contract Act
(a) a stranger to the contract can sue
(b) a stranger to the contract cannot sue
(c) a stranger but beneficiary under the
Contract can Sue
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107. A contract can be discharged
(a) by performance of the contract (b) by frustration of the contract (c) both (a) & (b)
108. Novation of a contract means (a) the renewal of original contract
(b) substitution of a new contract in place ot
original contract
(c) cancellation of contract
(d) alteration of the contract.

109. Rescission of the contract means
(a) the renewal of original contract
(b) cancellation of contract
(c) alteration of contract
(d) substitution of new contract in place of
earlier one.
110. A person enjoying the benefits of a lawful non-gratuitous act of another
(a) is liable to compensate that another
(b) is not liable to compensate that another (c) that another cannot claim
any
Compensation
(d) both (b) & (c).
111. Claim for necessaries of life supplied to a
minor under section 68
(a) cannot be enforced at all
(b) can be enforced against the minor personally on attaining majority
(c) can be enforced against the minor's property or estate
(a) can be enforced against the guardian, it any, of the minor.
112. Claim for necessaries of life supplied to a
lunatic under section 68
(a) can be enforced against the lunatics Property or estate
(b) can be enforced against the unatic personaly when he ceases to be lunatic
(C) cannot be enforced against the lunatic or his estate
(d) can be enforced against the guardian of the lunatic.
113. In case of breach of contract, compensatio can be claimed under section 73
natural
(a) for the proximate
and
consequences of breach
(b) for remote conseguence of the breach (c) for indirect consequences of the breach (d) all
the above.
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114. In estimating the damage
(a) the means available with the party
minimise the
claiming damages, to
damages shall be considered
) such means shall not be considered
i the party is not under any obligation to take steps Within its reach to mininmise the loss
(d) both (b) & (c).
15, A and B being traders, entered upon a
contract. A has private information of a change in nrices which would affect B's willingness to
proceed with the contract
(a) A is bound to inform B
(o) A is not bound to inform B
(c) Bis bound to be informed
(d) none of above.
116. Under the Indian Contract Act consideration
(a) may proceed from the promisee
(b) may proceed from any other person
(c) both (a) & (b)
117. Under the Indian Contract Act

(a) a third person from whom the consideration has proceeded can sue
{b) a third person cannot sue even if the consideration has proceeded from him
() a third person who is the beneficiary under
the contract can sue
(a) a third person cannot sue at all for want of privity of contract.
16. An executed consideration
(a) is an act or actual forbearance against a future promise
(b) liability is outstanding on one side only
C) can be positive or negative (d) all the above.
9, Executory consideration
consists of a promise in future
iability is outstarnding on both the parties
(e) is a promise for a promise (d) all the above.
10.Where the proposal & acceptance is through
letters, the contract is made
at the place where the letter of acceptance is posted
a the place where the acceptance 1 received
(c)
at the place at which the acceptance i
addressed
(d) all the above.
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121. In cases of acceptance on phone, the contract is made
(a) at the place from where the acceptance is made
(b) at the place where the acceptance is communicated

(c) at the place where the offer was made (d) all the above.
122. An acceptance on telephone should be
(a) audible to the offeror
(b) heard by the offeror
(c) understood by the offeror
(d) all the above.
123. If an acceptance on phone is drowned by noise
& is not heard by the proposer
(a) no contract is concluded
(b) a valid contract is conciuded
(c) there is a voidable contract (d) the contract is void.
124. In cases of general offer to public at large (a) notifying the acceptance to the proposer
is
necessary
(b) the performance of his part of the contract amounts to acceptance
(c) the performance of condition as acceptance
is not necessary
125. Incidents of a contract are governed by the law
of the State
(a) where the proposal was made
(b) where the proposal was communicated
(c) where the acceptance was made (d) where the contract is made.
126. Minor entering into misrepresenting his age
contract
(a) is estopped from pleading his minority (b) cannot be estopped from pleading his
minority
(c) the contract is void
(d) both (b) & (c).
127. A minors agreement
(a) is void ab initio & cannot be ratified
(b) can be ratified by the minor during
minority
(c) can be ratified on attaining majority (d) both (b) & (c).
128. A contract is voidable under section 21
(a) because of nistake as to Indian law
(b) because of mistake as to foreign law on the
part of both the parties
(c) both (a) & (b)
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129. An agreement in restraint of legal proceedings (a) if imposes total prohibition shall be
void (b) if imposes total or partial prohibition shall be void
(c) if imposes partial prohibition shall be valid (d) if imposes total prohibition shall be valid.
130. Where there are twwo courts which would normally have the jurisdiction, an agreement
to file suit in one of those courts alone, is
(a) void
(b) valid
(c) voidable
(d) unenforceable.
131. An obligation under a contract stands discharged
(a) by proper performance
(b) by dispensation with the performance

(c) by death of the contracting party if the contract is personal in nature
(d) all the above.
132. Under assignment of contract
(a) benefits under the contract can be assigned without the consent of other party
(b) burden under the contract cannot be assigned without the consent of other party
(c) both (a) & (b)
133. 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.
134. 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.
135. 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
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(c) special damages can be claimed if the party breaking the contract is made known of the
special circumstances at the time o
contract
136. Section 73 of the Contract Act applies contract
(a) for sale of moveable properties (b) for sale of immoveable properties (c) both (a) & (b)
137. In cases of general offer, for a valid contract (a) the acceptor need not have the
knowledge of the offer
(b) the acceptor must have the knowledge of the offer before acceptance by performance
(c) the acceptor may acquire the knowledge of the offer after the performance of the
condition amounting to acceptance
138. The principle, performance of a condition is a sufficient acceptance without notification

is contained in
(a) section 8
(b) section 7
(c) section 6
(d) section 9.
139. No contract can arise
(a) if the offer is not made to an ascertained person
(b) if the offer is made to an ascertained person (c) if the acceptance is made by an
unascertained person
(d) if the acceptance is made by an ascertained
person.
140, An
acceptance containing additions, limitations or other modifications shal
amount to
(a) rejection of the offer (b) a valid acceptance
(c) a counter offer (d) both (a) & (c).
141. On approval of tender
(a) a concluded contract arises immediately
(b) a concluded contract arises only when order is placed on the basis of tender
(C) the tender is converted into a standib offer

(d) both (b) & (c).
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142. A clause in the tender authorising the party
inviting tenders to terminate the contract at any time for future supplies
(a) destroys the very basis of the contract & the clause is void
(b) does not destroy the basis of the contract && the clause is valid
(c) makes the entire contract void
(d) makes the contract voidable.
143. Presumption of undue influence can be raised in cases of
(a) apparently unconscious bargaining
(b) relationship of parties being such that one party is in a position to dominate the will of the
other
(c) contract with pardanashin lady (d) all the above.
144. Mere silence is not fraud unless
(a) there is a duty to speak
(b) the silence is deceptive
(c) there is a change in the circumstances to be brought to the notice of other party
(d) all the above.
145. Frustration of contract implies
(a) commercial hardship
(b) physical impossibility due to disappearance of the subject matter of the contract or the
object has failed to materialise
(c) both (a) & (b)
(d) neither (a) nor (b) nor (c).
146. In which of the following cases, the Supreme Court held that, in a case of breach of
contract, the proof of loss not necessary when gernuine pre-estimated loss is stipulated in
contract
(a) Roop Kumar v. Mohan Thedani, Supreme Court, 2003

(b) ONGC Ltd. v. Saw Pipes Lid., Supreme Court, 2003
(C) Pawan Hans Ltd. v. Union of India, Supreme Court, 2003
(d) SBI v. United Commercial Bank, Delhi High Court, 2003.
147. When a contract provides for a specified sum
in case of breach
a) t prescribes the minimum liability
tprescribes the maximum limit of liability
(c) it prescríbes neither the minimum nor the
maxímum extent of liability
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148. Section 74 applies
(a) where the actual damage or loss has been proved to be caused by breach
(b) where the actual damage or loss has not been proved to be caused by the breach (c) in
both (a) & (b)
(d) neither (a) nor (b) nor (c).
149. Section 74 applies to
(a) cases where the aggrieved party is seeking to recover a fixed amount on breach of
Contract
(b) cases where an amount received under the contract is sought to be forfeited
(c) both (a) & (b)
(d) cases where in consequence of breach no legal injury at all has resulted.
150. Earnest money is the sum of money deposited
for the performance of the contract, so which is not correct
(a) it is not a part of purchase price
(b) it is given at the time of conclusion of the contract

(c) it can be given at any time
(d) it is a guarantee of due performance of the contract.
151. Under section 74 the court cannot award
damages
(a) less than the amount stated in the contract (b) equal to the amount stated in the contract
c) more than the amount stated in the contract (d) none of the above.
152. Where the rate of interest prescribed in case of
breach is too high, the court can interfere (a) on the proof of coercion
(b) on the proof of undue influence
(c) on the satisfaction that the stipulation is by way of penalty
(d) on the ground of equity.
153. A partnership firm consists of three partners 'A', 'B' & 'C, and owes "R' sum of Rs.
15,000. 'A' wants to retire and it is agreed amongst all the three partners and 'R' that after
retirement of 'A', B & 'C as continuing partners shall be liable for the dues of R'. After the
retirement of 'A', R sues 'A' for recovery of Rs. 15,000.
'R' has an option to sue the firm consisting of 'B' & 'C' or the retired partner 'A'
(a)
R has a right to sue 'A to the extent of Rs. 5000 being the portion attributable to A'
(b)
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(c) R has no right to sue 'A' as after the retirement of 'A' a new agreement came nto being
between R' & the firm and 'A' stood discharged of his liability towards 'R'
(d) R can sue the firm consisting of B' & C alongwith 'A' as liability of all the partners is joint
& several.
154. The law relating to tender of performance is
laid down in
(a) section 37
(b) section 35
(c) section 36
(d) section 38.
155. For a loan, when there is stringency in money market, a banker asks for an unusually
high rate of interest, A' accepts the loan on these terms. This is
(a) a valid transaction in the ordinary course of business
(b) a transaction vitiated by coercion
(c) a transaction vitiated by undue influence
(d) a transaction vitiated by fraud.
156. A wagering contract is void under
(a) section 28
(b) section 29
(c) section 30
(d) section 31.
157. X and Y agreed to marry each other on a certain date and before that X goes mad. Y
cancelled the contract & sued for damages
(a) No cause of action arises till the date of marriage
(b) on account of X's going mad, the contract frustrated & void. Y has no right to sue for
damages
(c) the contract itself is void
(d) Y is guilty of breach of contract.
158. 'A' promises to make a sculpture for "B' (a) 'A' mnust perform this promise personally
(b) A's son can perform the promise
(c) A's servant can perform the promise (d) A's employer can perform the promise.
159. 'X', a Delhi merchant & native of Delhi entered into contract with Y, a Jabalpur merchant
for the purchase of 50 quintals of Sitaphal. In Delhi Sitaphal is a vegetable, while in Jabalpur
it is a fruit
(a) the terms of contract are to be interpreted as per meaning of the proposer
Page 24
(b) the terms of the contract have to interpreted as per the meaning understond by the
acceptor
(c) the contract is void on account of muhyal mistake as to the meaning of sitaphal (d) no
concluded contract has come into beine as there was no meeting of minds. 160. 1f a
promisee accepts an anticipatory breach committed by the promisor, then
(a) the promisee need not perform his part of the contract but he cannot claim damages from
the promisor
(b) the promisee need not perform his part of the contract but he can claim damages only
after the date of performance
(c) the promisee need not perform his part of the contract and can claim damages without
waiting till the date of performance
(d) the promisee must perform his part of the contract before claiming damages from the
promisor
161. "X enters into a contract with Y for which Y is guilty of fraud. X can
(a) set aside the contract & recover damages
(b) set aside the contract but cannot recover damages
(c) recover damages but cannot set aside the award
(a) recover damages for actual loss suffered
162. "X' agreed to supply 1000 tons of iron at Rs. 100 per ton to "Y to be delivered not later
than 31-1-2002. X also entered into a contract with 'A' for purchase of 1000 tons of iron at
Rs. S0 per ton telling 'A' clearly that the iron is needed before 31-1-2002 for supply to Y 0
fulfil the contract with Y. 'A' fails to supply the iron to X who in turn failed to supply the same
to Y. In an action by X against 'A" (a) X an recover damages for the loss o
profit at the rate of Rs. 20 per ton i.e., the loss of profit
(b) X can recover damages for the loss or prot he would have earned by timely supply o Y
and also the damages which 'X' might have paid to Y on account of breach o
contract
(c) X can recover damnages which X might
have paid to Y on account of breach o contract
(d) X can recover damages in the forn penalty.
Page 25
163. An offer was sent by post, the acceptor wrote 'accepted on the letter, put it in his drawer
&
forgot about it. The transaction is a

(a) valid contract
(b) a voidable contract
(c) a void contract
iA) no agreement as the acceptance was never communicated to the proposer.
14.X holds land on a lease granted by Y, The revenue payable by Y to the Government
heing in arrears, the land is advertised for sale hy the Government under the relevant law,
the consequent of which is annulment of X's lease. X in order to prevent the sale &
consequent annulment of lease pays the dues of Y to the Government
(a) X is entitled to re-imbursement of the amount so paid from Y
(b) X is not entitled to anything from Y for want of any contract between them
(c) X is not entitled to any amount from Y because X has paid the amount to save his own
tenancy
(d) X is not entitled to anything from Y, as it is a gratuitous act of X.
16. An employer asks his employee/servant to sell his servant's goods at a price for less
than the market price/fair price. Servant can avoid the contract on the ground
(a) undue influence
(b) coercion
(c) mistake
(d) fraud.
16.'A aggrees to let her daughter "B' for hire to 'C'
Or concubinage, without the consent of B, the contract is
14) void as the consent of B the daughter has not taken
b) void being immoral
() voidable at the instance of 'B'
(d) valid as A'&'C entered into contract with
their free consent.
consideration of Rs. 10,000 lent by Y & G provides Y & Z jointly to repay them that Sum with
interest on a specified day. Y dies.
(a) isa available to Y's representatives alone
ight to claim the performance

1s available to Z alone
S available to Y's representatives & Z both the death of Z, his representatives. available to
Y's representatives & after
Page 26
168. The doctrine of impossibility of performance rendering contracts void is based on (a)
implied term
(b) just & reasonable solution
(c) supervening impossibility (d) unjust enrichment.
169. The age of majority for the purpose of
Contract Act is
(a) 18 years
(b) 21 years
(c) 16 years for girls & 18 years for boys (d) 18 years for girls & 21 years for boys. 170. A
contract signed between two countries without specifying as to which country's law shall
govern in cases of dispute
(a) it shall be governed by the law of the country where the proposal was made
(b) it shall be governed by the law of the country where the contract was concluded
(c) it shall be governed by the law of the country which the parties intended to apply, i.e.,
where the contract is localised
(d) it shall be governed by the law where the contract is performed.
171. The damages under section 73 of Indian Contract Act are
(a) liquidated
(b) compensatory
(c) penal
172. While determining damages which of the following are taken into account
(a) motive of breach
(b) manner of breach

(c) inconvenience caused by non-performance (d) all the above.
173. Which of the following is not relevant in determining of quantum of damage
(a) motive
(b) manner
(c) loss suffered
(d) both (a) & (b).
174. Pre-contract expenditure may be recovered as
damage
(a) generally
(b) always
(c) only if it is within the contemplation of parties
Page 27
175. Duty to mitigate damages on the part of injured party arises
(a) in cases of anticipatory breach
(b) in cases of breach at the time fixed for performance of the contract
(c) both (a) & (b)
(d) either (a) or (b).
176. A sum fixed before hand as amount of
compensation payable in the event of breach of contract is called
(a) liquidated damages
(b) penalty
(c) either (a) or (b)
(d) neither (a) nor (b)
177. The essense of liquidated damage is (a) genuine pre-estimate of damage (b) less than
probatble damage
(c) more than probable damage (d) pavment of money in terrorem.
178. A contract of indemnity as a contract by which one party promises to save the other
party from the loss caused to him by the conduct of the promisor himseif or of any other
person, has been defined
(a) under section 124
b) under section 123
(c) under section 125
(d) under section 126.
179. A contract of guarantee has been defined
(a) under section 123
(b) under section 124 (c) under section 125 (d) under section 126.
180. Surety is a person
(a) in respect of whose default the guarantee is
given
(b) who gives the guarantee
(c) to whom the guarantee is given
181. Creditor is a person
(a) to whom the guarantee is given
(b) whogives the guarantee
(c) in sespect of whose default the guarantee is
given
182. A guarantee
(a) has to be in writing
(b) can be oral
(c) can be oral or in writing (d) neither (a) or (b).

Page 28
183. Liability of the surety is
(a) condítional on default (b) independent of default
(c) can be conditional and carn be independent
184. A valid guarantee can be given (a) only if there is no principai debt (b) only if there is a
principal debt (c) irrespective of arry debt (d) both (a) &e (c).
185. A guarantee to be valid
(a) can only be ofa present debt
(b) can be of past debt if some further debt íncurred after the guarantee
(c) cab be of future debt if some debt
incurred after the guarantee
(d) all the above.
186. A guarantee obtained by misrepresentation o concealment is
(a) invalid
(b) valid
(c) voidable
(d) illegal.
187. Which of the following is a valid guarantee
(a) guarantee ofa minors debt
(b) guarantee of a debt of a company acting ultra vires in obtaining the loan
(c) both (a) & (b)
188. The liability of the surety
(a) is co-extensive with that of the principai debtor
(b) extends to the whole of the amount rof which the principal debtor is liable
(c) both (a) & (b)
189. Under the contract of guarantee, the liabiity
of the surety
(a) can be limited
(b) cannot be timited & has to extend to the whole of the amount đue from principai debtor
(c) can be extended to penaities also (d) buth (b) & (c).
190. A guarantee which extends to a series transactions under section 129 is called
(a) an absolute guarantee (b) a caontinuing guarantee (c) an invalid guarantee (d) a
conditioral guarantee.
Page 29
91. A continuing guarantee applies to
(a) a specific transaction
(b) a specific number of transactions
ic) any number of transactions
iA) reasonable number of transactions.
continuing guarantee under section 130 is
a) revocable absolutely
b) irrevocable absolutely
i) revocable as regards future transaction (d) either (a) or (b).
s6 The liability of surety on his death under section 131 in case of continuing guarantee
(a) is terrminated absolutely
) does not stand terminated as regards past
transaction
regards future
ic) stands terminated

as
transaction
(a both (b) & (c).
4 The surety stands discharged
(z) by revocation
(b) bv death
(c by variance in terms of the contract without his consent
id in (a), (b) & (c) above.
5 Under the contract of guarantee, a creditor
(a) has to avail his remedies first against the principal debtor
(b) can avail his remedies against the principal debtor as well as the surety
iC can avail his remedy against the surety alone
id, both (b) & (c).
K Surety stands discharged
4) by an agreement between the creditor and the principal debtor
y an agreement between the creditor & a rurd party for not to sue the principal debtor
(c) both (a) & (b) above
92. Under a contract of guarantee
a) neither (a) nor (b).
principal debtor is not liable, guarantor is not liable
b) if principal debtor is not liable, guarantor is c) if principal debtor is liable, guarantor is
liable
liable d) all the above.
contract of guarantee (a) there are two parties and one contract b) there are two parties and
two contracts
Page 30
(c) there are three parties & three contracts (d) there are three parties & one contract.
199. In case of co-sureties, release of one surety by the creditor
(a) amounts to discharge of other sureties
(b) does not amount to discharge of other sureties
(c) amounts to discharge of the surety so released vis-a-vis co-sureties as well
200. On payment or performance of the liability the surety
(a) is invested with all the rights the creditor had against the principal debtor
(b) is entitled to the every security which the creditor has against the principal debtor (c) is
entitled to be indemnified by the principal debtor
(d) all the above.
201. Surety is entitled to be indemnified by the principal debtor
(a) in respect of a sum rightfully paid
(b) in respect of a sum wrongfully paid
(c) in respect of a sum paid rightfully or wrongfully
(d) all the above.
202. Under section 146, the co-sureties are liable to
contribute
(a) equally
(b) unequally
(c) according to their capacity
(d) either (a) or (b) or (c).
203. If the co-sureties are bound in different sums,
they are liable to pay
(a) equally subject to the limit of their respective obligation
(b) equally without any limit

(c) equally irrespective of their obligation but subject to the limit
(d) either (b) or (c).
204. Surety on payment or performance of his liability, against the principal debtor
(a) has right of subrogation
(b) has right like creditor had against principal
debtor
(c) both (a) & (b) (d) either (a) or (b).
205. Bailment involves
(a) change of custody
(b) change of possession
(c) change of custody and possession both
Page 31
(d) neither change of custody nor possession. 206. Bailment means
(a) the goods is delivered by one person to another for some purpose to be specifically
returned or otherwise disposed of as per the order of bailor
(b) the goods delivered to be returned by way of an equivalent in money
(c) the goods delivered to be returned by way of an equivalent in other commodities (d) all
the above.
207. Bailee' is a person
(a) who delivers the goods
(b) to whom the goods are delivered
(c) through whom the goods are delivered
on the
(d) any of the above depending
circumstances.
208. 'Bailor is a person
(a) who delivers the goods

(b) to whom the goods are delivered
(c) through whom the goods are delivered (d) who carries the goods.
209. Bailee is bound to take care of goods
(a) as an expert
(b) as a lay man
(c) as a man of ordinary prudence (d) both (b) & (c).
210. The liability of bailee, as regards the goods is
equivalent to that of
(a) of a common carrier
(b) an innkeeper
(c) both of common carrier and innkeeper (d) neither of common carrier nor innkeeper.
211. An agreement by a bailee purportive to exempt him wholly from liability for negligence
is (a) valid
(b) invalid
(c) voidable (d) void.
212. If the bailee does any act inconsistent with the conditions of bailment, with regard to
goods (a) the contract becomes void
(b) the contract becomes voidable at the option of the bailee
(c) the contract becomes voidable at the option of the bailor
(d) the contract remains valid.
213. If the bailee mixes the goods of the bailor with his own goods, without the consent of
the bailor
Page 32
(a) the bailee is liable to bear the expenses of separation of goods & damages arising
therefrom, if the goods can be separated
divided
(b) the bailee is liable to compensate the bail.
for the loss of goods, if the goods are

irresponsible
(c) both (a) & (b)
214. In case of a gratuituous bailment, the bailee t (a) entitled to necessary expenses
incurred by him for the purposes of bailment
(b) not entitled to any expenses
(c) entitled to necessary
expenses and
additional changes
(d) either (b) or (c).
215. After the expiry of time or accomplishment of
purpose of bailment
(a) the bailee is to return the goods without demand
(b) the bailee is to return the goods only on demand
(c) the bailee is to pay the money equivalent (a) the bailee is to pay the equivalent in other
commodity.
216. The bailee is excused from returning of the
goods
(a) if there is a breach of warranty in respect of goods bailed
(b) if the goods are seized by the Government (c) both (a) & (b)
217. A gratuituous bailment is terminated
(a) on the death of bailor
(b) on the death of bailee
(c) on the death of either bailor or bailee (d) on the death of bailor and bailee both.
218. In case of bailment by joint owners
(a) the bailee has to deliver the goods to all e joint owners
(b) the bailee has to deliver the goods to any one of the joint owners with the consent o other
joint owners
(c) the bailee can deliver the goods to one the joint owners even without the consen of other
joint owners
(d) either (a) or (c).
219. A particular lien under section 170 of the A
can be exercised
(a) has right to retain the goods until the
receipt of remuneration for incurred by him
services
Page 33
) for charges on account of labour o skill employed or expenses incurred
for general balance of accounts and the charges on account of labour & skill employed &
expenses incurred (d) either (b) or (c).
220. A finder of goods is
entitled to claim compensation
(b) entitled to retain the goods
ic) not entitled to claim compensation and thus not entitled to retain the goods
(d) both (a) & (b).
221. A finder of goods is
(a) entitled to the specific reward offered by the owner for the return of goods
(6) can retain the goods so long as the specific reward is not given by the owner
(c) both (a) and (b)
22. Pledge under section 172 of Indian Contract Act has been defined as
(a) a licence to take possession of goods
(b) an agreement to give possession of goods

(c) bailment of goods as a security for payment of a debt or for performance of a promise
(d) both (a) & (b).
23. For the purpose of pledge, delivery of
possession of goods
(a) has to be actual
(b) may be constructive
(c) either actual or constructive
(d) may be symbolic.
. In a pledge, the general property or ownership in 'goods
(a) continues in pledgor
(b) transferred to the pledgee
() cannot be transferred to the pledgee
25. A pawnee, in the event of default in payment
ot debt by the pawner, has a right
O retain the goods pledged as collateral security
(b) to sue the pawner
(c) to sell the goods pledgea
(d) all the above.
226.Period of limitation for a suit against pawnee
to recover the thing pledged is
(a)
year from the date of pawn years from the date of pawn 912 years from the date of pawn
b)
) 30 years from the date of pawn.

Page 34
227. The pawnee has a right to retain the goods pledged
(a) for payment of debt interest & all necessary expenses in respect of goods pledged
(b) for payment of debt other than the debt in respect of goods pledged
(c) for payment of interest & necessary expenses in respect of goods other than the one
pledged
(d) all the above.
228. The pawnee has no right to retain the goods (a) for payment of necessary expenses in
respect of goods pledged
(b) for payment of extraordinary expenses incurred in the preservation of goods
(c) for payment of debt or interest in respect of goods pledged
229. If the pawner makes a default in payment of debt, at the stipulated time
(a) the pawnee has a right to sell the goods pledged without notice to the pawner
(b) the pawnee has a right to sell the goods pledged after giving a reasonable notice of sale
to the pawner
(c) has no right to sell the goods pledged but has a right to retain the goods as collateral
security for the debt
(d) neither has a right to sell the goods nor retain the goods as collateral security but has a
right to sue for pawner upon the debt.
230. Goods may be pledged
(a) by the owner of goods
(b) by the servant in the absence of owner
(c) by the person who is left with the goods for some special purpose
(d) all the above.
231. Which of the following is correct
(a) pledge made by a mercantile agent is valid (b) pledge made by a person in possession
under voidable contract is valid
(c) pledge by a person having a limited interest is valid to the extent of that interest (d) all the
above.
232. Agent is a
(a) person employed to do any act for another or to represent in dealings with third person
(b) person for whom the act is done or who is represented in dealings with third person
Page 35
(c) person from whom the person employed to do any act, has to get the work done (d) all
the above.
233. Principal is a
(a) person employed to do any act for another or to represent in dealings with third person
(b) person for whom the act is done or who is so represented in dealings with third persons
(c) person from whom, the person employed to do any act, has to get the work done (d) all
the above.
234. Amongst the following who is an agent
(a) a domestic servant
(b) a person aiding another in the performance of his legal or contractual obligations of third
persons
(c) a person who tills another's field
235. Amongst the following who is not an agent
(a) an independent buyer
(b) a person who advices another in matters of business
(c) a procurement agent
(d) all the above.
236. Two or more persons can be employed to act
as agents
(a) jointly
(b) severally
(c) jointly & severally

237. An authority given to two or more persons is
generally given
(a) jointly
(b) severally
238. An agent appointed by more than one
principal is liable
(a) severally
(b) jointly
239. Who can appoint an agent (a) a minor of sound mind (b) a major of sound mind (c) a
person of unsound mind (d) both (a) & (b).
240. Who can become an agent (a) a major of sound mind
Page 36
(b) a major of unsound mind (c) a minor of sound mind (d) a minor of unsound mind.
241. Authority of an agent
(a) has to be expressed (b) has to be implied
(c) can be expressed or implied (d) either (a) or (b) or (c).
242. A wife has an implied authority of the husband to buy articles of household necessity
(a) if the wife is living with her husband
(b) if the wife is living separately
(c) if the wife is living with her husband not in a domestic establishment
(d) if the wife gets a reasonable allowance from the husband for her needs.
243. The principle of agency of necessity is

(a) unknown to the law of agency (b) applicable in normal situations
(c) applicable in emergent situations where communication with the principal is possible (d)
applicable in enmergent situation where the communication with the principal is not possible.
244. An agent can lawfully employ a sub-agent (a) originlly
(b) if the ordinary custom of trade permits (c) if the nature of the agency permits (d) both (b)
& (c).
245. In case of a sub-agent lawfully appointed, which of the following is correct
(a) as regards third parties the sub-agent bind5 the principal as an original agent can
(b) as regards third parties, the sub-agent cannot bind the principal as an original agent
(c) as regards third parties the sub-agent can bind only the original agent, who has
appointed the sub-agent
(@) as regards third parties, the sub-agent can neither bind the principal nor the original
agent.
246. For the acts of sub-agent, lawfully appointed (a) the agent is not responsible to the
principal (b) the agent is responsible to the principal (c) the sub-agent is responsible to the
principal directly
(d) the sub-agent is not responsible to principal.
Page 37
frand & wilful ng by he sub-
es-rt is directhy iable to the aret esubpe&te gert bo e liabe to te princpa! tezget aicre is abie
to the príncipal
54 pe the agent aes to art for the ialiabe besiness of agency, nder the egsr pied thoity to
nme, is called 2gert
hsituted agent
EFre 2ts cf the substituted azent a e 2gets rsporsble to the prinipal t egent is rot rsporse to
the principal tesbstituted eget is not respOrsible to tepriapi
re cf te zbore
S Sbsttted 22et is liable to the prinipal
t rspective of fraud wilful default, in al

i zicrgwih the azent
3LL 2se the sub22ent is not lzwfully pited, fox the ts of such sub-2gent, the gt appointing the
sub-zgent is liable 2) trards the prinipal oniy
C iwards the third perties orly
parties
3 towzds the prinipal end thírd bon
tztds noe
2Ay at is done, without the authority or Kwiedze of 2 person on behalf of that
person, tht person
a can disown the t
) an rztify the act
< eheraify or disown the act
j 3 cosown the act but cannot ratify the
32Rfcaion of an 2ct
a) has to be express only
6) has to be impied
canbe either express or implied hs to be both expressed and implied.
4 Ratification takes effect fa) pronpectively
prospectively ar retrospectively depending
tetrospectively
nthe fats cincumstances of case
Page 38
(d) pronpectively on retnpetivey deperdin% n the azeernert betweer the parties.
255. Which of the followinz acts cannot be ratified (a) lzwful or unlawtul acts capable of beinz
done bry the azert
b) where knovledge cf facts to the ratifyinz person is defective
(c) 2ct whách are unauthorised at the tirne of its being done
(d) all tthe above.
256. Agency can be terninated
(2) by revocation by the principal
b) try notice of rerunciation by the agert
(c) by effur of tine
(đ) either (a) or (b).
257. Agency stands terrminzted
(a) ty the death, insolvency or insarity of the principal
(b) by the death, insolvency or insarity of the aget
(c) by the death, insolvency or insanity of either the principal or the agent
(d) by the death, insolvency or insanity of the prinápal and the agent both.
258. Which of the following is correct
stands terminated by (a) agency destructiơn of subject matter of agency (b) agency stands
terminated by happening of an event rendering the object of the agerncy unlawful
the
(c) agency stands teriminated by the frustration of the objects of agency due to impossibility
259. Principal can revoke the authority given to the
(a) at any time before the authority has been exercised
agent
(b) at any time after the authority has been partly exercised without liability towards the acts
done
(c) at any time after the authority has been fully exercised
(d) all the above.
260. An authority given by two or more principals can be terminated
(a) by notice of revocation or renunciation given by or to all the principals
(b) by notice of revocation or renunciation given by or to any one of the principals

Page 39
(c) by notice of revocation or renunciation given by or to both the principals if there are only
two principals
261. With the termination of authority of an agent (a) the authority of sub-agent or
substituted agent does not come to an end
(b) the authority of sub-agent comes to an end but not of substituted agent
(c) the authority of sub-agent does not come to an end but that of a substituted agent
(d) the authority of sub-agent and substituted agent both comes to an end.
262. If the amount due to the agent for commission or remuneration is not paid or accounted
for, the agent
(a) has a right of lien only over the movable property of the principal
(b) has a right of lien only over the immovable property of the principal
(c) has a right of lien over the goods, papers and property movable or immovable of the
principal
(d) does not have a right of lien over the papers.
263. Right of lien, of an agent
(a) is extinguished by his parting with the possession of the goods
(b) is extinguished by destruction of goods accidentaly
(c) both (a) & (b) are correct
(d) neither (a) nor (b) is correct.
264. The agent has a right to be indemnified
(a) for all the consequences of all lawful acts done by the agent
(b) for all the consequences of all unlawful acts done in good faith by the agent
(c) for all the çonsequences of unlawful acts, known to be unlawful, but not criminal acts
(d) both (a) & (b).
265. Which of the following rights is/are not available to the agent
(a) right to retain

(b) right to compensation
(c) right to sell
(d) all the above.
266. Which of the following rights islare available to the agent
Page 40
(a) right to remuneration (b) right to retain
(c) right to indemníty (d) all the above.
267. B, the proprietor of a newspaper, publisha A's request, a libel upon Cin the paper, s4 of
the publícation, and all costs and Gama agrees to identify B against the consere
of any action in respect thereof. B and has to pay đamages, and als, i
expenses. Decide in the light of section 4
the Indian Contract Act, 1872
(a) A is not liable to B upon idemnity (b) A is liable to B upon idemnity (c) A is not liable
toCupon idermnity (d) none of above.
268. A entrusts B with negotiable instrume endorsed in blank. B sells then to C violation of
private orders from A. The sale (a) bad
(b) good
(c) no legal identity
(d) depends on the court.
269. A owes B, under a contract, a sum of mone the amount of which has not been ascertaie
A, without ascertaining the amount, gives tof and B, in satisfaction thereof accepts the s of
Rs. 2000.
This is a discharge of
(a) whole debt
(b) part debt
(c) earnest money (d) previous debt.
270. In which of the following judgments it told that: "the principle of unjust enrichm cannot
be extended to give a right to the to recover or realize vend fee after concerned statute for
realisation or recoven) vend fee has been struck down"
(a) Somaiya Organics (India) Ltd. v. State of Pradesh, AIR 2001 SC 1725
(b) V.R. Subramanyam v. B. Thayapa, (1961
SCR 663
(c) Jugapatiraja v. Sadnusannama, AIR 1916 M
980
(d) none of the above,
271. In which of the following cases, the Supre
Court held that the time was esse contract?
(a) A.K. Lakshmipathi v. R.S. Pannalal, AIR 20
SC 577
Page 41
) Ceilena v. lhas, AIR 2010 SC 603
i) Khanapuram v. Adm. Oficer, AIR 2010 Sc 615
Ià HDFC. Bank Lid. v. J.J. Mannan, AIR 2010 SC 618.
m in which case it was held that if arbitrator acts in disregard of the contract and without
iurisdiction then he commits legal misconduct (a) Beed District Central Co-operative Bank
Ltd. v. State of Maharashtra (2006)
(b) Food Corporation of India V. Chandu Construction (2007)
(c) Gurpreet Singhv. Union of India (2005) (d) Saurabh Prasad v. DLF Universal Ltd. (2004)
3If instead of avoiding the contract the
contractor accepts the belated performance of reciprocal obligation on the part of the
employer, the innocent party i.e., the contractor, cannot cdaim compensation for any loss
occasioned by the non-performance of the reciprocal promise by the employer at the time
agreed, unless at the time of such acceptance, he gives notice to the promisor of his
intention to đo so. In which case it was held
(a) State of Kerala v. M.A. Mathai (2007)
b) Punjab State Civil Supplies Co-op. Ltd. v. Sikander Singh (2006)
íc) Shin Satellite Public Co. Ltd. v. Jain Studios Limited (2005)
(d) KC. Skaria v. The Government of State of Kerala (2004).

J4 İn which case it was held that when charge or pledge is enforced by way of sale of the
pledged or hypothecated goods the sale is for COnsideration and falls within the ambit of
section 2oi) of Limitation Act
la) Federal Bank Ltd. v. State of Kerala (2007)
tb) Hardev Singh v. Gurmail Singh (2006)
(c) Jatinder Nath v. Chopra Land Developers
(2005)
{d) none of the above.
Z15. In w which of the following cases it was held
a the "Liability of guarantor is coextensive with that of principal debtors"?
(a) Infrastructure Leasing & Financial Services Lud. v. Vijay V. Prabhu, AIR 2010 Bom 72.
Manita Khurana v. Indra Khurana, AIR 2010
Del 69.
Bar Council of Delhi v. Surender, AIR 2010 Del 75
(d) Purabi Dasgupta v. Arun Kumar, AIR 2010
Gau 66.
Page 42
276. A valid Lease can be determined by
(a) efflux of time (b) frustration
(c) force majure
277. "Deed of cancellation of contract amounts to rescission of contract and any rescission
must be only bilateral1" This contention was held in case of
(a) E.R. Kalaiban v. I.G. of Registration Chennai, AIR 2010 Mad 18.
(b) K.L. Sahoo v. LIC, AIR 2010 Ori 19
(c) A.K. Mahato v. State of Bihar, AIR 2010 Pat 19
(d) Md. Moinuddin v. Md. Mustafa, AIR 2010 Pat 224.
278. Almost all insurances other than

insurances are contracts of indemnity (a) life & personal accidernt
(b) marine & general
(c) fire & life
(d) none of the above
279. Contract cannot be said to be void on ground
of
(a) over consideration
(b) inadequacy of consideration
(c) over consideration or inadequacy of consideration
280. Bank guarantee is independent contract between
(a) creditor and debtor (b) bank and beneficiary
(c) buyer and seller
281. When a sub-contractor had under-taken some
part of the work in connection with the project which was entrusted to contractor, he cannot
be treated as
(a) agent
(b) sub-agent
(c) sub-contractor
282. There can also be.......by estoppel
(a) ownership
(b) possession (c) fraud
(d) sale.
283, Under the Contract Act, if the existing cause of action gets substituted by new cause of
action arising out of agreement, then
(a) the admiralty claim is maintainable
Page 43
(b) the admiralty claim is not maintainable () admiralty claim is superseded by other claims
(d) changes in cause of action does not affect admiralty claim.
Z84. Whether agent can invoke arbitration clause in contract?
(a) ves
(b) no
(c) can invoke if agreement provides for
(d) can invoke if principal authorizes him.
285. In which of the following cases it was held that the "Contract cannot be declared to
have been frustrated because its performance had of onerous on account become more
unforeseen circumstances"?
(a) Premmier Explosives Ltd. v. Chairman and Managing Director, Singareni Collieries Co.
Ltd., AIR 2010 AP 107.
(b) MV. Ranma v. T.N. Reddy, AIR 2010 AP 114 (c) T. Mohan Reddy v. Potu, AIR 2010 AP
117 (d) P.T. Reddy v. Juoti Reddy, AIR 2010 AP 119.
286. Which one of the following is necessary for a
contract?
(a) Offer
(b) Immovable Property
(c) Movable Property
(d) None of the above.
287. The plaintiff sees the defendant's child falling in water. He saves the child from
drowning. Later the defendant promises to give him Rs. 1,000. In this regard which one of
the following propositions is correct.
(a) Defendant's liability is statutory
(b) The defendant is liable as the agreement is not nudum pactum
(c) Defendant is not liable as there is no contract
(d) Defendant liability arises in quasi-contract.

288. If a person accepts a lesser amount in discharge of the whole debt than what was
contracted between the parties is known as (a) Rescission
(b) Novation
(c) Alteration (d) Remission.
289. Under the Indian Contract Act, 1872 an agreement not enforceable by law is said to be
void. Under which of the following agreements is voidable?
(a) Agreement is restraint of marriage (b) Agreement is restraint of trade
Page 44
(c) Agreement in restraint of fraud (d) Wagering Agreement.
290. A contract of telephone becomes complete at;: place where an acceptance is heard. In
which
if the following cases it has been held?
(a) Manoharlal v. Seth Hiralal
(b) Barret v. Irvine
(c) Banwari Lal v. Sukhdarshan Lal
(d) Bhagwandas v. Girdhari Lal.
291. Where both the parties to an agreement ar. under a mistake as to a matter of fact
esseni
to an agreement is
(a) Void
(b) Voidable
(c) invalid
292. If the compensation agreed to be paid in the event of the breach of contract is
excessive and highly disproportionate, the amount thus fixed, is called
(a) Liquidated damages
(b) Penalty
() Unliquidated damages
(d) Contractual damages.

293. Under Indian law consideration may be:
(a) Adequate
(b) Something having same value in eyes of law
(c) Equivalent to promise (d) Neither (a) nor (b).
294. In case of Breach of Contract, the principles
for assessment of damages are given in:
(a) Hydev. Wrench
(b) Hadley v. Baxandale
(c) Scorfv. Jodine
(d) Carlil v. Carbolic Smoke Ball Co.
[U.P. Judicial Service Civil Judge (Junior Division (Prelim.) Exam, 2016]
295. A compromise which is voidable under Indian
Contract Act, 1872 shall not be deemed to be within the meaning of Order XXlll ku 3 of Code
of Civil Procedure, 1908
(a) void
(b) voidable
(c) illegal
(d) lawful
296. When consent to an agreement is caused by
misrepresentation, under Indian Contract
1872 the agreement is
(a) Void
(b) Valid
(c) Voidable
Page 45
(d) legal
297. Under Indian Contract Act, 1872, if the time is essence of a contract and the promisor
fails to perform the contract by the specified time, the
contract
(a) becomes void
(b) remains valid
i becomes voidable at the instance of the promisee
(d) becomes unenforceable
an0 Which one of the following statements is true under Indian Contract Act, 1872?
ia Intimation of minimum price is proposal
(b) An agreement against public policy is voidable
(c) An agreement, the meaning of which is not certain is void
(d) Wager contracts are illegal
case(s) in which specific performance of contract is enforceable
299. What is/are
ia) When there exists no standard to ascertain the actual damage caused by performance
non-
(b) When the act agreed to be done is such that compensation in money, for its non-
performance would not afford adequate relief
(c) When prima facie case is in favour of plaintiff
(a) Both (a) and (b)
U0. An agreement with minor is void, hence
(a) Minor is never allowed to enforce such agreemernt
(b) Minor is allowed to enforce such
agreement, if it was made for his benefit
() Minor is always allowed to enforce such
agreemernt
(0) Minor is allowed to enforce such contract when other party makes no objection
301, Under Indian Contract Act, 1872, destruction
Ot subject matter of contract leads to
la) Performance of contract
D) Discharge by impossibility
(c) Breach of contract
(d) Renovation of contract
302, In case of breach of contract, the principle for (a) Carlil v. Carbolic Smoke Ball
Company assessment of damages are given in
b) Hyde v. Wrench
(c) Scorfv. Jodine
(d) Hadley v. Baxandale
Page 46
303. 'A contract on telephone becomes complete at the place where acceptance is heard'. In
which of the following cases it has been held? (a) Bhagwandas v. Girdharilal
(b) Banuvari Lal v. Sukhdarshan Dayal
(c) Mohribibi v. Dharmodas Ghosh
(d) Satyabratta Ghosh v. Mugneeram
304. "X applied for the principalship of a local college and the governing body passed a
resolution appointing him. After the meeting, one of the members of the governing body
privately informed him of the resolution. Subsequently, the resolution was rescinded. X
claims damages.
In this context which one of the following propositions is correct?
(a) X cannot claim damages as there was no communication
(b) X can claim damages as there was private communication of resolution
(c) X is not qualified for principalship, so he cannot claim damages
(d) The governing body cannot rescind the resolution once passed, so X can claim
damages.
305. The first case on the Doctrine of frustration' as decided by the Supremne Court of India
is
(a) Raja Dhruv Dev v. Raja Harmohinder Singh (b) Sushila Devi v. Hari Singh
(c) Basanti Bastralaya v. River Steam Navigation Co Ltd
(d) Satyabrata Ghose v. Mugneeram
306. 'C let a music hall to X for a series of music concerts for certain days. The hall was
completely destroyed by fire before the scheduled date of concerts. In this case
(a) C cannot be discharged from performance of the contract
the
(b) The contract becomes voidable at the option of X
(c) The contract is discharged by the impossibility of performance
(d) The contract is void ab inito.
307. I, a usual customer of B, orders certain goods on the day on which B transfers his
business to the plaintiff. The plaintiff accepts the order and supplies the goods. Thereupon, J
refuses to pay alleging that he has intended to contract only with B since he is having a set
off against him. J
Page 47
(a) Has no liability to pay the price because he has never intended to contract with the
plaintiff.
(b) Is liable to pay as he has already been supplied in response to his order
(c) s liatble to pay because the plaintiff has supplied the goods as the agent of B
(d) Is iabłe to pay because he can claim reimbusement from B.
308. Which one of the following observations is most appropriate of the given problem?
"A agrees to serve B as his house keeper and also to live in adułtery with him at a fixed
salary of Rs 400 per Month"
(a) The agreement is void as a part of it is lawful and the other part is unlawful
b) The agreement is lawful as adultery does not amOunt to an offer
(c) The agreement is void as the lawful portion is not severable from unlawful portion. (d)
The first portion of the agreement being lawful is a contract whereas the later portion is void.
309. Which contract is specifically enforceable? (a) Contract by "B to deliver a lecture of law
at Jabaipur University
(b) Contract of Marriage

(c) Contract by B with 'A' to supply goods as of when "A' requires
(d) None of these
310. Under the Indian Contract Act, when does an
agreement becomes a contract?
(a) It is enforceable by law
(b) It is between parties competent to contract (c) It is by the free consent of the parties (d)
All of these
311. A farmer promises to pay B Rs 500 if it rains in the third week of June. t rains in the
third week of June. The agreement is
(a) A vaid contract
(b) An invalid aggreemernt
(c) An invahd agreemernt because it is a wager (d) An invalid agreenent because it is

contingent contract
312. Which among the following is generally referred to as the subtle species of fraud ?
(a) Undue influence
(b) Deliberate Mistake
(c) Misrepresentation (d) Coercion
313. X transfers possession or custody of the farmiand to his son, S. S shall pay rent or a
Page 48
lease fee in return. S only receives custody and control of the property, but X still owns it. X
is
thus responsible for paying the property tayes and is liable for what happens on the land,
This kind of contract or arrangement is called. (a) Guarantee
(b) Bailment
(c) Pledge (d) Set off
314. What is the minimum consideration required
to create an agency?
(a) Minimum of Rupees One Lakh

Minimum of Rupees One Thousand No consideration at all is required
(b)
(c)
(d) Minimum of Rupees Ten Thousand
315. Where a person pledges goods in which he has
only a limited interest, the pledge is:
(a) Invalid to the extent of that interest
(b) Entire contract is invalid
(c) Valid to the extent of that interest (d) Entire contract is valid 316. Section
of the Contract Act, deals
to
with principal's duty to agent (a) Section 222, 225
(b) Section 222, 230
(c) Section 222, 235 (d) All of above
317. An employer asks his employee/servant to sell his servant's goods at a price for less
than the market price/fair price. Servant can avoid the contract on the ground
(a) Undue influence
(b) Coercion
(c) Mistake (d) Fraud
318. An offer was sent by post, the acceptor wrote "accepted on the letter, put it in his
drawer and forgot about it. The transaction is a
(a) Valid contract
(b) A voidable contract
(c) A void contract
(d) No agreement as the acceptance was nevel communicated to the propoSer.
319. In which case it was held that when charge o pledge is enforced by way of sale of the
pledged or hypothecated goods the sale is for cOnsideration and falls within the ambit or
section 2(xxi) of Limitation Act
(a) Federa! Bank Ltd v. State of Kerela
(b) Hardev Smgh v. Gurmail Singh
(c) Jatinder Nath v. Chopra Land Developers (d) None of the above
Page 49
t here the acceptance to an offer is sent by the
frere by an e-mail:
pNstal rule will be applied for the prse of. determining the communication aeptane, as also
the place and time of
ntract
The nept (eipient) ule will be applied r the purpose of determining the ammunication of
acceptance, as also the plae and tìme of contract.
The law in lndia is unclear on this subject Neither of the above
Which of the following propositions is nernct about the doctrine of frustration of ontract:
ia) The event which causes frustration must have occurred without the fault of either party
) Frustration puts an end to a contract independently of the volition of the parties at the time
of the frustrating event (automatic discharge).
i) A contract Is not frustrated by an event arising from an act or election of the promisor
id The doctrine of frustration is applicable when the rights and obligations of the parties arise
under a transfer of property under a lease.
MX Owes Rs.10.000/- to Y under a contract. It is gred between X, Y & Z that Y shall

tenceforth accept Z as his debtor instead of X r the same amount. Old debt of X is scharged
and a new debt from Z to Y is contracted. This is:
la) Alteration of contract.
io) Rescission of contract
() Novation of contract
a) Change in contract
.Which of the following statement(s) is correct? la) An agreement enforceable by law is a
contract
b) Every promise and every set of promises, forming the consideration for each other, is
an agreement.
agreements enforceable by law are Contracts and valid. But all agreements are
not enforCeable by law.
a) All the above.
Page 50
324. Under The Indian Contract Act, 1872, a Contract to perform the promise or discharge
the liability of a third person in case of his default:
(a) is a contract of guarantee.
(b) is a contract of warranty.
(c) is a contract of Indemnity.
(d) None of the above option.
325. In which of the following case, presumption of contract to the contrary under section
230 of The Indian Contract Act, 1872, shall not be presumed?
(a) Where the contract is made by an agent for the sale or purchase of goods for a merchant
resident abroad.
(b) Where the principal does not disclose the name of his agent.
(c) Where the principal, though disclosed, cannot be sued.
(d) In all the above cases.
326. Under The Indian Contract Act, 1872, requisite
for a valid ratification is:
(a) Knowledge of the correct facts of the case. (b) Interest of the person ratifying, in the
case. (c) Right of the person ratifying, in the case.
(d) Liability of the person ratifying, in the case. 327. As per Section 58 of the Indian Contract
Act,
1872, in the case of an alternative promise, one branch of which is legal and the other illegal,
(a) both the branches will be enforceable.
(b) both the branches will be une:r:i.forceable.
(c) the legal branch alone can be enforceable. (d) None of the above.
328. As per Section 142 of the Indian Contract Act 1872, a guarantee obtained by
misrepresent- tation made by the creditor, is
(a) void.
(b) voidable
(c) valid.
(d) invalid.
329. When the damages cannot be assessed, the party may be awarded by the cout
(a) actual damages
(b) liquidated damages
(c) exemplary damages
(d) nominal damages
Page 51
S30,Non east factum' means
(a) document executed in ignorance
(b) document executed under erion (c) docunment exeruted under undue influene (d)
document exeuted outside India
331. A contract is not frustrated by
(a) commercial impISsibility
(b) imposition of government restrictions
(c) destrnaction of subjet matter of contract (d) All of the above
332. Which one of the following is a case on
promissory estoppel?
(a) Kedarnath v. Gre Moamad
(b) Delki Cloth and General Mills Ltd. v. Union of
(c) Both (A) and (B)
(d) None of the above
333. Which one of the following statements is correct?

The communication of an acceptance is complete as against the acceptor
(a) when it comes to the knowledge of the acceptor
(b) when it comes to the knowledge of the proposer
(c) when it comes to the knowledge of acceptor and proposer both
(d) when it comes to the knowledge of the third party
334. Which one of the following is not correctly matched?
(a) Cocrcion-Chikkam Ammiraju v. Chikkam Seshama
(b) Liquidated Damages: Dunlop Pneumatic Tyre Co. Ltd. v. New Garage & Motor Co. Ltd.
(c) Impossibility of performance: Alopi Parshad & Sons Ltd. v. Union of India
(d) Public policy: Hadley v. Baxendale
335. The change of the nature of the obligation in a contract is known as
(a) rescission
(b) novation
(c) renovatiorn
(d) alteration
336. Under Section 68 of the Indian Con tract Act
(a) the minor is personally liable
(b) only minor's liable property 1s
Page 52
(c) minor personally and his property both
liable
337. Indian Contract Act, 'A' Guru (spiritua advisor) induced the Chela (his ddevotee) o gift
him the whole of his property to secure
benefit to his soul in the next world. The shall be-
(a) Void
(b) Voidable
(c) Valid
(d) Immoral
338. Indian Contract Act, Finder of a lost thine which is commonly the subject of sale, mav
sell it when lawful charges of the finder, in respect of the thing find amount to.
(a) One-forth of its Value
(b) Half of its value
(c) One-third of its value
(d) Two-Thirds of its value
339. Indian Contract Act, "A" hires a carriage of "8". The carriage is unsafe though "B" is not
aware of it and "A" is injured then what will be consequence of it?
(a) B is not responsible to A for injury
(b) Bis responsible to A for injury (c) Both are contributory negligent (a) No one is
responsible for A's injury 340. Indian Contract Act, if a promisee accepts the anticipatory
breach by promisor then
(a) the promisee need not perform his part of contract but not entitled to claim damages from
promisor
(b) the promisee need not perform his part o contract but entitled to claim damages from
promisor only after the date of performance of
(c) the promisee need not perform his part contract but entitled to claim damages frot
promissory without waiting till the date of performance
(d) the promisee must perform his Part contract before claiming damages
341. Indian Contract Act, A contract by whic
Party promises to save the other from lo
caused to him by the conduct of the promisor himself, ,or by the conduct of any other person
is called:
Page 53
ta) Comtract of gtarantee ) Contact of srety
ic) Contract f indetnnity (di Nene of these

Act- A promises to paint a
tndist Contract
picture for B up to Dec. 31 and cOepts ar advanee of Rs. 1000/-. Aftet making of the
oontraet, A's hands are chopped off in an

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An agreement enforceable at law is a

(a) enforceable acceptance (b) accepted offer

(c) approved promise

1. Promises which form the consideration or part of

the consideration for each other are called

(a) reciprocal promises

(b) cross offers

(c) conditional offer

(d) conditional promises.

4 An agreement not enforceable by law is stated

(a) section 2(d)

(b) section 2(e)

(c) section 2(f)

(d) section 2(g).

Void agreement signifies

(a) agreement illegal in nature

(b) agreement not enforceable by law

(Ç) agreement violating legal procedure

(a) agreement against public policy.

Offer as defined under section 2(a) is

a) communication from one person to another 0) Suggestion by one person to another

() none of the above.

Proposal is said to have been

O provisionally agreed tentatively: accepted.

(a) reciprocal promise

(b) consideration for the promise

(c) counter offer

(a) acceptances for different proposals

(c) reciprocal promises

(d) none of the above.

(a) a valid contract

(b) an illegal contract

(c) a void contract (d) a voidable contract.

13. Which is correct

(a) proposal + acceptance = promise (b) promise + consideration = agreement

(c) agreement + enforceability = contract (d) all the above.

(c) promise (d) proposal.

16. Under section 2(c) promisee is the

17. Goods displayed in a shop with a price tag is an

(b) invitation to offer

(c) counter offer

(d) none of the above.

(b) an ínvitation to offer

(c) a counter offer

19. Communication of a proposal is complete

(c) when the proposal is communicated to the person to whom it is made

(d) all the above.

20. Communication of acceptance is complete as against fhe proposer

(aj when it comes to the knowiedge of the proposer

() when the acceptance is Communicated to the propser

(d) all the above.

21. Communication of acceptance is complete as against the acceptor

(a) wher it comes to the knowiedge of the proposer

22. Revocation of offer by letter or telegram be complete

(a) when it is despatched

(b) when it is received by the offeree

(c) both be absolute & ungualified (d) be conditional.

24. A contract with or by a minor is a

(a) valid contract

(b) void contract

(c) voidable contract

(d) voidable at the option of either party.