IMPORTANT MCQ

Indian Contract Act

(Section 148-238)
Que. 01

‘Bailee’ is a person:
a) To whom the goods are delivered
b) Who delivers the goods
c) Who fails to deliver the goods
d) None of the above
Que. 02
The delivery of goods by one person to another for some
specific purpose is known as
a) Bailment
b) Pledge
c) Hypothecation
d) Mortgage
Que. 03
In which one of the following, considerations is not
required?
a) Contract of insurance
b) Contract of bailment
c) Contract of guarantee
d) Contract of service
Que. 04
If the bailee, without the consent of the bailor, mixes the goods of the bailor
with his own goods in such a manner that it is impossible to separate the
goods bailed from the other goods and deliver them back, the bailor is
entitled to be:
a) Compensated by the bailee for the loss of the goods
b) Compensated by the bailee for the 1/3 of loss
c) Compensated by the bailee for the 1/2 of loss
d) Compensated by the bailee for rupees 500
Que. 05
A gratuitous bailment is terminated:
a) On the death of the bailor
b) On the death of the bailee
c) On the death either of bailor or bailee
d) On the death of bailor and bailee both
Que. 06

Section 170 of Indian Contract Act deals with:

a) General lien
b) Particular lien
c) Wharfing lien
d) Broker’s lien
Que. 07
The bailment of goods as security for payment of a debt or
performance of a promise is called
a) Bailment
b) Mortgage
c) Pledge
d) Charge
Que. 08
Section 180 provides:
a) Pledge where pawnor has only a limited interest
b) Suit by bailor or bailee against wrongdoer
c) Appointment of relief or compensation obtained by such suit
d) Pawnee’s right where pawnor makes default
Que. 09
Section 182 provides:
a) Agent and principal defined
b) Who may be an agent?
c) Consideration not necessary
d) Agent’s authority in an emergency
Que. 10
An agent can be appointed by:
a) A minor of sound mind
b) A major of sound mind
c) Any person of sound mind
d) Any major of sound or unsoundmind
Que. 11
To create an agency
a) Consideration is necessary
b) Consideration is not necessary
c) Some consideration is necessary
d) Adequate consideration is necessary
Que. 12
Agent’s authority may be:
a) Express
b) Implied
c) Both (a) and (b)
d) None of these
Que. 13
A person appointed by an agent under the authority of
Principal is known as:
a) Sub Agent
b) Substituted Agent
c) Mercantile Agent
d) Special Agent
Que. 14
A sub-agent is responsible to the principal on which
of the following grounds
a) Fraud or Negligence
b) Negligence or Deceit
c) Willful wrong or Fraud
d) Willful wrong or Negligence
Que. 15
Ratification takes effect.
a) Prospectively
b) Retrospectively
c) Prospectively or retrospectively depending on the fact
d) Prospectively or retrospectively depending on the
agreement between the parties.
Que. 16
Ratification of an act:
a) Has to be express only
b) Has to be implied
c) Has to be both - express and implied
d) Can either be express or implied
Que. 17
An agency under the Contract Act is terminated by
a) Principal revoking his authority
b) The death of either principal or agent
c) Principal being adjudicated an insolvent
d) All of the above
Que. 18
Section 201 provides:
a) Termination of agency
b) Termination of sub-agent’s authority
c) Agent’s accounts
d) Agent to be indemnified against consequences of lawful acts
Que. 19
Principal can revoke the authority given to the agent.
a) At any time before the authority been exercised
b) At any time 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.
Que. 20
Section 210 provides:
a) Termination of sub-agent’s authority
b) Agent’s accounts
c) Termination of agency
d) Agent’s duty to communicate with principal
Que. 21
An agent cannot claim remuneration for his
misconduct under
a) Section 220 of the Indian Contract Act, 1872
b) Section 221 of the Indian Contract Act, 1872
c) Section 223 of the Indian Contract Act, 1872
d) Section 224 of the Indian Contract Act, 1872
Que. 22
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 consequences of unlawful acts, known to be
unlawful, but not criminal acts
d) Both (a) & (b).
Que. 23
A consigns goods to B for sale and gives him instructions not to sell under
a fixed price. C, being ignorant of instructions, given to B, enters into a
contract with B to buy the goods at a price lower than the reserved price-

a) A is not bound by that contract

b) A is bound by that contract
c) A has the right to honor the contract or not.
d) The contract is void for A
Que. 24
X entrust Y with negotiable instruments endorsed in blank. Y
sells them to Z in violation of private orders from X. The sale
is-
a) Void
b) Valid
c) Voidable at the option of Y
d) Voidable at the option of Z
Que. 25
A person employed to do any act for another or to
represent another in dealings with the third person
is:
a) A principal
b) A pawnor
c) An agent
d) A bailor
THANKS !