4. 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

b. The contract is void on account of mutual mistake as to the meaning of sitaphal

c. The terms of the contract have to be interpreted as per the meaning understood by the acceptor

d. No concluded contract has come into being as there was no meeting of minds

5. A agrees to pay B Rs. 1,000 if B will marry to A’s daughter C. C was dead at the time of the agreement. The agreement is

a. invalid

b. voidable

c. void

d. valid

6. Unlawful consideration and object have been mentioned under which section of the Indian Contract Act, 1872?

a. Under Section 18

b. Under Section 20

c. Under Section 26

d. Under Section 23

7. An agreement is void if its object or consideration is.

a. forbidden by law.

b. of such nature that if permitted, it would defeat the provisions of law or is fraudulent.

c. the Court regards it as immoral or against public policy.

d. All these are correct.

8. Illegality renders a contract:

a. void

b. voidable

c. illegal

d. punishable

9. Assertion (A): All illegal agreements are void, but all void agreements are no illegal.

Reason (R): Only those agreements of which the object or consideration is unlawful, are known as illegal agreements.

Select the correct answer using the code given below:

a. Both (A) and (R) are true and (R) is the correct explanation of (A)

b. Both (A) and (R) are true, but (R) is not the correct explanation of (A)

c. (A) is true but (R) is false

d. (A) is false but (R) is true

10. A agrees to pay B, a teacher, Rs. 15,000 if B passed his son in the examination. B does so but A refuses to pay the money. In this case, which one of the following gives the correct legal position of the agreement?

a. The agreement is valid and enforceable

b. The agreement is void being opposed to public policy

c. The agreement is void because the object is unlawful and forbidden by law

d. The agreement is voidable at the option of B

11. B is wife of A. A during lifetime of B and with her consent makes an agreement with C to marry her. The agreement is:

a. void

b. voidable

c. valid

d. None of the above

12. “A” promises to obtain for “B” an employment in the public service and “B” promises to pay Rs. 1000 to “A”. The agreement is

a. Legal

b. Can be enforced at the option of the parties

c. Void

d. None of the above

13. Which contract is void ab initio?

a. A contracts to let her daughter on hire to B for concubinage.

b. While entering into contract to see a cow, a disclosed B that the cow gives five liters milk in a day whereas it gives four liters in a day

c. At the time of contract of selling a car, A told B that mileage of the car is 20 km per liter whereas its mileage is 18 km per liter.

d. At the time of contract, A told B that the area of his house is 1400 sq. feet but on measurement the area of the house is found 1398 sq. feet

14. X promises Y to drop a prosecution which he has instituted against Y for robbery and Y promises to restore the value of the things taken. Which one of the following is the correct answer?

a. The agreement is a contract

b. The agreement is immoral

c. The agreement is void as it is in restraint of legal proceedings

d. The agreement is void as its object is unlawful

15. A fraud has been discovered by a party in a contract and lodged a criminal case, afterwards the parties agreed to withdraw the case as only compensate the disadvantageous party such contract is

a. Void as against public policy

b. Illegal

c. Voidable

d. Valid

16. Contract forbidden by law are:

a. valid

b. void

c. illegal

d. Both (b) and (c)

17. Ajay grants a lease of a premises to Vijay for one year at a monthly rent of Rs. 5,000 knowing that the premises will be used for prostitution. This lease is:

a. Valid

b. Voidable

c. Void

d. None of these

18. An agreement to share the benefits of a public office is:

a. valid

b. voidable

c. void

d. none of these

19. Which one of the following statements is correct:

a. Void agreements are always illegal

b. Illegal agreements are voidable

c. Illegal agreements can be void

d. Illegal agreements are always void

20. Every agreement, of which the object or consideration is unlawful, is:

a. void

b. voidable

c. illegal

d. unfair

21. If only a part of the consideration or object is unlawful, the contract under Section 24 shall be

a. valid

b. voidable

c. void

d. illegal

22. A, a married woman, agreed to live in adultery with B and also agreed to serve him as his house keeper. In return, B agreed to pay A Rs. 500 per month for living in adultery and Rs. 500 per month for housekeeping. The agreement is:

a. valid

b. void

c. void as to the first object but valid with respect to the second object

d. unlawful being opposed to public policy

23. Nudum Pactum means

a. without consideration

b. invalid contract

c. void contract

d. voidable contract

24. A promise to pay wholly or in part a debt of which the creditor might have enforced payment, but for the law for the limitation of suits is a contract:

a. if it is made in writing only

b. if it is made in writing and registered under the law for the time being in force

c. if it is made in writing and signed by the person to be charged therewith

d. even if made orally

25. A agrees to pay Rs, 1,000 to B without consideration. This agreement is:

a. voidable

b. void

c. not enforceable

d. not enforceable as it was unwritten

26. Which one of the following statements is correct?

a. An agreement is void unless it is duly supported by adequate consideration

b. In a valid contract, there can be an oral promise to compensate a person who has already voluntarily done something for the promisor

c. Under Indian Law, consideration need not move at the desire of the promisor

d. Indian Law does not recognize past consideration

27. Under Indian Contract Act, which of the following contracts is not a valid contract?

a. By a written registered document A promises to give Rs. 5000 to B for natural love and affection

b. By an oral agreement B agrees to pay time barred debt of A

c. A went on a pilgrimage, B paid his electricity bills A agrees to pay back the amount paid by B to him

d. A supports B’s infant son, B promises to pay A's expenses in so doing

28. A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B in writing and registers it. This is a

a. Contract

b. Voidable contract

c. Void contract

d. None of the above

29. A without the request of anybody extinguishes the fire of B’s godown. A suffers injury thereby. B promises to compensate A for the whole amount he has spent for his treatment. The contract is

a. unenforceable

b. void

c. voidable

d. enforceable

30. A promise to pay a debt barred by the law of limitation, has been made enforceable under which section of the Indian Contract Act?

a. Section 32

b. Section 47

c. Section 8

d. Section 25

31. Which one of the following is a contract?

a. An agreement to do a lawful act by an unlawful means

b. An undertaking in writing duly signed to pay the time-barred debt

c. An agreement in restraint of a lawful trade

d. An agreement to pay Rs. 10,000 without consideration

32. Assertion (A): Agreement without consideration is void.

Reason (R): Consideration may be given by promisee or any other person.

a. (A) and (R) both are true and (R) is correct explanation of (A)

b. (A) and (R) both are true, but (R) is not the correct explanation of (A)

c. (A) is true; but (R) is false

d. (A) is false, but (R) is true

33. Ex undo pacto non oritur actio, means:

a. A stranger to the contract cannot sue

b. An agreement Without consideration is void

c. An agreement based on natural love and affections

d. All the above

34. Which of the following agreements is not void?

a. ‘A’ agrees to sell two hundred tons of oil to ‘B’

b. An agreement in restraint of legal proceedings.

c. An agreement if restraint of marriage of any person '

d. A finds B’s purse and gives it to him. B promises to give ‘A’ Rs. 100

35. Contract without consideration is void subject to the following exception

a. if it is between two brothers

b. if it is between father and son

c. if it is between husband and wife

d. if it is between by way of love and affection

36. Which of the statements given below is/are correct?

1. An agreement, without consideration, in writing and registered, made on account of natural love and affection between parties standing in a near relation, is a valid contract.

2. If any part of a single consideration for one or more objects, is unlawful, the agreement is a voidable contract.

a. 1 only

b. 2 only

c. both 1 and 2

d. neither 1 nor 2

37. Consider the following statements and point out which of them is correct?

1. An Agreement made without consideration is void.

2. Consideration should have some value in the eyes of the law.

3. Consideration has to be adequate.

Which of the statements given above is/are correct?

a. 1,2 and 3

b. 1 and 3

c. 3 only

d. 1 and 2

38. Inadequacy of consideration is relevant in determining the question of:

a. fraud

b. misrepresentation

c. undue influence

d. free consent

39. A sees that the child of B is drowning in the water. A saves the child from drowning in the water. B promises to give him Rs. 25,000. In this context, which one of the following propositions is correct?

a. B is liable because the agreement is not nudum pactum

b. B’s liability arises in quasi-contract

c. B is not liable as there is no contract

d. B’s liability is statutory

40. The mother owes Rs. 10,000 to her daughter. But the Limitation Act has barred this debt. The mother signs a written promise to pay Rs. 3,000 on account of the debt. In this case which one of the following is correct?

a. There is no contract as the debt is already barred by limitation and so it cannot be revived by a subsequent promise.

b. There is no contract because the mother has promised to give only a part of the debt.

c. This is a contract because there is a natural love and affection relation and the promise , is in writing and signed.

d. This is enforceable against the mother because such a promise is valid and binding under the Indian Contract Act.

41. An agreement in restraint of marriage is:

a. valid

b. illegal

c. void

d. voidable

42. An agreement to remain unmarried is:

a. Valid

b. Void

c. Voidable

d. Unenforceable

43. A enters into contract with B to marry her. Can this contract be specifically enforced?

a. Yes

b. No

c. With the help of court, yes

d. None of the above

44. An agreement in restraint of trade under Section 27 of the Indian Contract Act, 1872 is

a. valid

b. voidable

c. void

d. enforceable

45. Under Section 27 of the Indian Contract Act, 1872 in which of the following relation an agreement in restraint of trade is valid:

a. Mutual, adjustment

b. Business contingency

c. Sale of goodwill

d. None of these

46. ‘P’ a wholesale dealer in sugar, sells sugar to ‘Q’ with a condition that ‘Q’ shall not sell the sugar ' beyond one kilometer of ‘P’s godown. The agreement is:

a. valid

b. without free consent

c. in restraint of trade and thus void

d. voidable at the option of ‘P’.

47. Which of the following is not an agreement in restraint of trade?

I. A sells the goodwill of his business with an agreement not to carry on a similar business within specified local limits, so long as the buyer carries on a similar business.

II. A sells the goodwill of his business with an agreement not to carry on a similar business within India, so long as the buyer carries on a similar business.

III. A sells the goodwill of his business with an agreement not to practice the same trade for 25 years.

IV. A sells the goodwill of his business with an agreement not to engage in any business competing or liable to compete in any way with the business for the time being carried on by the buyer.

a. I, III and IV

b. II, III and IV

c. III and IV.

d. I only

48. Which Section of the Indian Contract Act, 1872, deals with agreements in restraint of legal proceedings?

a. Section 27

b. Section 29

c. Section 23

d. Section 28

49. The Indian Contract (Amendment) Act, 1997 has amended:

a. Section 26 of the Indian Contract Act

b. Section 27 of the Indian Contract Act

c. Section 28 of the Indian Contract Act

d. Section 75 of the Indian Contract Act

50. Under Section 28 of the Indian Contract Act, 1872 an agreement not to pursue any legal remedy to enforce the right is:

a. Valid

b. Voidable

c. Void

d. Unenforceable

51. Parties by their consent/agreement:

a. can confer jurisdiction on a court where there is none in law

b. can oust the jurisdiction of a court when there is one in law

c. can oust the jurisdiction of one of the courts when there are two courts having simultaneous jurisdiction in law

d. all of the above

52. An agreement not to raise the plea of limitation is:

a. valid and binding

b. voidable

c. void

d. illegal

53. An agreement not to pursue legal remedies but to refer the dispute to the arbitrator under Section 28 of the Indian Contract Act is

a. voidable

b. void

c. valid

d. unenforceable

54. 188. Which Section of the Contract Act makes the agreements, the meaning of which is not certain or capable of being made certain, as void

a. 26

b. 27

c. 28

d. 29

55. Which one of the following statements is true under Indian Contract Act, 1872?

a. 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

56. ‘A’ agrees to sell to ‘B’ a hundred tons of oil. There is nothing whatever to show what kind of oil was intended. The agreement is:

a. Voidable

b. Void

c. Enforceable

d. Non-enforceable

57. A, who deals only in coconut oil, enters into an agreement with B to sell 50 tons of oil. The agreement is

a. enforceable by law

b. void due to uncertainty

c. voidable due to uncertainty

d. None of the above

58. In Indian Law, a wagering contract is:

a. treated as voidable

b. treated as void

c. treated against public policy

d. treated as valid

59. In Carlill v. Carbolic Smoke Ball Co. the definition of “Wagering Agreement” was given by:

a. Justice Bowen

b. Justice Hawkins

c. Lord Denning

d. Lord Selborne

60. An agreement in connection with horse racing under Section 30 is:

a. unlawful

b. voidable

c. void

d. valid

61. Under Indian Contract Act, contract of betting is:

a. Voidable

b. Against the law

c. Void and against the law

d. Void

62. Which of the following is/are involved in wagering agreement?

1. An uncertain event.

2. Parties have no control over the event.

3. Except the stake parties have no other interest in the event.

4. Select the correct answer using the code given below:

a. 1 only

b. 1 and 2

c. 2 and 3

d. 1, 2 and 3

63. Out of the following agreements which one is not void?

a. Agreement with handicapped person

b. Agreement to restrain a marriage

c. Wagering agreement

d. Agreement without consideration

64. Which of the following agreement(s) is/are void?

1. Agreement without consideration

2. Agreement in restraint of legal proceedings

3. Agreement effected by fraud

a. 3 only

b. 2 only

c. 1,2 and 3

d. 1 and 2

65. Contingent contract is defined in

a. Section 43 of the Indian Contract Act, 1872

b. Section 46 of the Indian Contract Act, 1872

c. Section 37 of the Indian Contract Act, 1872

d. None of the above

66. A contingent contract is:

a. dependent or conditional upon the happening or non-happening of a future event or contingency

b. dependent or conditional upon the happening of a future event or contingency

c. independent or unconditional contract

d. none of the above

67. A contract of life insurance is a

a. Wagering contract

b. Contingent contract

c. Contract of indemnity

d. Contract of guarantee

68. Anu enters into a contract with Manu to pay him Rs. 1,000 if India wins the world cup. It is a:

a. Contingent Contract

b. Wagering Agreement

c. Social Contract

d. Voidable Contract

69. Which one of the following facts constitutes a Contingent Contract?

a. A contracts to pay B Rs. 10,000 if B’s house is burnt

b. Where a salt lake was offered by way of lease on deposit of a sum of money within a specified period

c. Acceptance of a tender for up to 1000 tons of coal to be supplied as and when any order is placed during the financial year

d. When a bank offers a locker to its customer subject to the condition that the customer makes a fixed deposit of rupees one lac with the bank before the end of the month .

70. A contingent contract dependent on the happening of uncertain event in the future can be enforced when the event

a. does not happen

b. becomes impossible

c. happens

d. none of the above is correct

71. Contingent agreements to do or not to do anything, if an impossible event happens:

a. are void if the impossibility of the event is known to the parties at the time when it is made

b. are void if the impossibility of the event is not known to the parties to agreement at the time when it is made

c. are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made

d. are voidable at the option of the parties

72. ‘A’ contracts to pay ‘B’ a sum of Rs. 10,000 when ‘B’ marries ‘C’. This is a type of under Indian Contract Act, 1872.

a. Contingent contract

b. Vested contract

c. Illegal contract

d. Voidable contract

73. A agrees to pay ‘B’ a sum of money, if ‘B’ marries ‘C’ ,‘C’ marries ‘D’. The agreement is:

a. Void

b. Voidable

c. Legal

d. Illegal

74. If a future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible:

a. When such person does anything renders it impossible that he should so act within any definite time

b. Otherwise than under further contingencies

c. Both (a) & (b) above

d. None of the above

75. In which of the following cases, a contingent becomes void:

a. If the contract contemplates the happening of the event within a certain time, and event does not happen or its happening becomes impossible

b. If the performance is made to depend upon an event which is already impossible

c. If the event contemplated does not happen

d. Both (a) & (b) above

76. Match the List-I with List-II and select the correct answer with the help of codes given below:

List-I List-II

A. Contingent (i) Section 30,

Contract Act Contract Act

B. Wagering (ii) Section 25,

Contract Act Contract Act

C. Restraint from (iii) Section 31,

trade or Contract Act

business

D. Agreement (iv) Section 27,

without Contract Act

consideration

Codes:

A B C D

a. (i) (iv) (iii) (ii)

b. (iii) (i) (iv) (ii)

c. (i) (iii) (iv) (ii)

d. (iv) (i) (iii) (ii)

77. The law relating to tender of performance is contained in:

a. Section 37 of the Indian Contract Act, 1872

b. Section 38 of the Indian Contract Act, 1872

c. Section 36 of the Indian Contract Act, 1872

d. Section 35 of the Indian Contract Act, 1872

78. On the valid performance of the contractual obligations by the parties, the contract:

a. Becomes enforceable

b. Is discharged

c. Becomes void

d. None of these

79. When the promisor offers to perform his obligation to the promisee, it is called:

a. novation

b. tender of performance

c. offer of performance

d. both (b) and (c)

80. In which of the following instances has the discharge of agreement not been effected?

a. A promises to paint a picture for B.B afterwards forbid him to do so

b. A owes B Rs. 5,000. C pays to B Rs. . 1,000, which B accepts in satisfaction of his claim against A

c. A awaits arrival of B to finish the painting for B

d. A owes B Rs. 2,000 and is also indebted to other creditors. A makes an arrangement with his creditors, including B, to pay them, half of the loan amount. A pays to B Rs. 1,000

81. A contract can be discharged:

a. By performance of the contract

b. By frustration of the contract

c. Both (a) and (b)

d. Neither (a) nor (b)

82. A promises to paint a picture for B by a certain day at a certain price. A dies before the day.

a. The agreement does not lapse and can be confirmed by or against the legal representatives of A.

b. The agreement becomes voidable at; the option of A’s legal representatives.

c. The agreement lapses for both the parties.

d. The agreement becomes unlawful.

83. 'A' promises to deliver goods to 'B' on a certain day at a certain time on the payment of Rs. 1000/ - 'A' dies before that day-

a. the contract is void

b. A's representatives are not bound to deliver the goods to B

c. B is not bound to pay Rs. 1000/-to A's representatives

d. A's representatives are bound to deliver the goods to B. And B is bound to pay Rs. 1000/- to the, representatives of ‘A'.

84. ‘A’ enters into a contract with ‘B’ to sing at his theatre two nights in every week during the next two months and ‘B’ engages to pay her at rate of Rs. 1,000 for each night. ‘A’ willfully absents herself on the sixth night but with the assent of ‘A’ sings on the seventh night ‘B’:

a. Can put an end to the Contract

b. Cannot put an end to the Contract

c. Is not liable to pay for five nights on which A had sung

d. Is not entitled to compensation for damage sustained by him on the sixth night

85. The case Frost v. Knight, (1872) LR 7 Ex 111, related to:

a. anticipatory breach of contract

b. frustration of contract

c. remission of performance of contract

d. discharge of contract by agreement

86. When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as:

a. Abandonment of contract

b. Actual breach of contract

c. Remission of contract

d. Anticipatory breach of contract

87. Section 40 of Indian Contract Act deals:

a. About compensation on non-performance of promise

b. About persons by whom promise is to be performed

c. About voidability of agreement

d. About legality of contract

88. Section 41 of the Indian Contract Act, 1872 deals with:

a. Effect of accepting performance from third person

b. Person by whom promise is to be performed

c. Tender to perform a promise

d. Effect of refusal of party to perform promise wholly

89. In case of joint promise, generally the performance must be by:

a. All the promisors jointly

b. Any one of them individually

c. Individual promisor with the consent of the promisee

d. None of the above

90. A, B and C jointly promise to pay ‘D’ a sum of Rs. 3,000. A & B are untraceable. Is ‘C’ is liable to pay?

a. ‘C’ liable to pay ‘D’ in full

b. ‘C’ liable' to pay ‘D’ in part

c. Liability of ‘C’ does not arise

d. None of these

91. Where no application is made and no time is specified for performance of promise, there the agreement must be performed within:

a. Three years

b. Two years

c. One year

d. Reasonable time

92. Reasonable time for performance of a contract is a question:

a. of fact

b. of law

c. mixed question of fact and law

d. of prudence

93. 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

c. becomes voidable at the instance of the promisee

d. becomes unenforceable

94. In a contract in which time is not essence of the contract, the failure to perform the contract before specified time:

a. Contract will become void.

b. The Promisee is entitled to compensation from the promisor for any loss occasioned to him by such failure

c. Contract will become voidable at the option of the promisor

d. Contract will become voidable at the option of the promise

95. A contract not specifying the place of performance:

a. Can be performed at any place to the knowledge Of the promisee

b. The promisor need not seek any instruction from the promisee as to the place of performance

c. The promisor has to apply to the promisee for appointment of a place of performance and perform the promise at that place

d. The promisor can perform the promise at a place other than the place appointed by the promise

96. Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, they shall be performed in that order; and where the order is not expressly fixed it shall be performed:

a. As desired by the proposal

b. In the order as one of the parties prefer

c. In that order which the nature of transaction require

d. None of the above

97. Where persons reciprocally promise, firstly to do certain things which are legal and secondly, Under specified circumstances, to do certain other things which are illegal the:

a. first set of promise is a contract, but the second is a void agreement.

b. first set of promise is voidable but the second set is a void agreement.

c. entire set of promises is void.

d. entire set of promises is valid.

98. The contract can be discharged by impossibility of performance specified in:

a. Section 26 of the Indian Contract Act, 1872

b. Section 53 of the Indian Contract Act, 1872

c. Section 56 of the Indian Contract Act, 1872

d. Section 28 of the Indian Contract Act, 1872

99. Match list-I with list-II and select correct answer using the code given below the lists-

List-I List-II

A. Novation 1. Sec. 70 I.C.A.

B. Unjust 2. Sec. 62 I.C.A.

enrichment

C. Party competent 3. Sec. 15 I.C.A.

to contract

D. Dispossession of 4. Sec. 11 I.C.A

property induces

by threat To

cause death

Code:

A B C D

a. 2 1 4 3

b. 1 2 4 1

c. 2 3 4 1

d. 3 1 2 4

100. A valid contract at the initial stage ceases to be enforceable subsequently due to intervention of unforeseen factors. The contract will:

a. remain valid

b. be voidable at the option of either party to the contract, when it ceases to be enforceable

c. become void since the time of its inception

d. become void since the time it ceases to be enforceable

101. In India, the doctrine of impossibility of performance of a contract being void, is based:

a. On the theory of implied term

b. On the theory of just and reasonable solution

c. On supervening impossibility or illegality as laid down in Section 56 of Indian Contract Act

d. On the principle of unjust enrichment

102. An agreement to do an act impossible in itself is

a. Unenforceable

b. Voidable

c. Wrongful

d. Void

103. ‘A’ and ‘B’ contract to marry each other, before the time fixed for the marriage, ‘A’ goes mad, the contract becomes:

a. Voidable Contract

b. Conditional Contract

c. Contingent Contract

d. Void Contract

104. Under Indian Contract Act, 1872, destruction of subject matter of contract leads to:

a. Performance of contract

b. Renovation of Contract

c. Breach of Contract

d. Discharge by impossibility

105. The first case on the ‘doctrine of frustration’ as decided by the Supreme Court of India is:

a. Basanti Bastralaya v. River Steam Navigation Co.Ltd

b. Raja Dhruv Dev Chand v. Raja Harmohirider Singh

c. Sushila Devi v. Hari Singh

d. Satyabrata Ghose v. Mungneeram

106. 'X contracted with a tent house for erecting a shamiana for performing the marriage of his daughter. On the day of marriage, a curfew was clamped in the area preventing the celebration of the marriage. The shamiana owner claims the charges agreed to be paid by X.

In the light of the above, which one of the following is correct?

a. X has to pay the contracted charges

b. X need not pay the agreed charges but only reasonable charges

c. X can require the State to bear the claim for damages

d. X need not pay anything as the celebration of the marriage was impossible on account of the curfew

107. The facts of Griffith v. Brymer would attract Section 20 and facts of Krell v. Henry attract

a. Section 20 of the Indian Contract Act, 1872

b. Section 10 of the Indian Contract Act, 1872

c. Section 12 of the Indian Contract Act, 1872

d. Section 56 of the Indian Contract Act, 1872

108. A contract is not frustrated:

a. by commercial impossibility

b. by imposition of government restriction or order

c. by destruction of subject-matter of contract

d. by death or incapability of party when contract is of personal services

109. Which one of the following statements is correct?

Doctrine of frustration comes into play:

a. when both the parties are frustrated

b. when either of the parties is frustrated

c. when the object has failed

d. when there is commercial hardship

110. Which of the following cases is related to ‘ doctrine of frustration’?

a. Felt House v.Bindly

b. Hardly v. Baxendale

c. Krell v. Henry

d. Mohri Bibi v. Dharmodas Ghose

111. Match List-I with List-II and select the correct answer using the code given below the lists:

List-I List-II

A. Doctrine (1) Taylor v.

of frustration Caldwell

B. Special (2) Hochester v.

damages De la Tour

C. Anticipatory (3) Tim v.

breach of Hoffman dr Co.

contract

D. Cross-offer (4) Hadley v.

Codes: Baxendale

A B C D

a. 1 4 2 3

b. 2 4 3 1

c. 3 4 1 2

d. 1 2 3 4

112. Contract is frustrated due to frustration of:

a. Subject matter of contract

b. Change of one party’s desire

c. Consideration of contract

d. Capacity to contract

113. A and B agree that A shall pay B Rs. 500 for which B shall afterwards deliver to A one quintal wheat or a smuggled pistol. Decide:

a. The whole agreement is void

b. The whole agreement is valid

c. The whole agreement is unlawful

d. The agreement to deliver wheat is valid but the agreement is void as to the pistol

114. Under Indian Contract Act, 1872, A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is:

a. valid

b. invalid

c. void

d. voidable

115. Which of the following sections of Indian Contract Act embodies the rule of Clayton’s case relating to appropriation of payments?

a. Section 59

b. Section 61

c. Section 60

d. Section 58

116. The intimation under Section 59 of the Indian Contract Act, 1872:

a. must be implied

b. must be expressed

c. may be either expressed or implied

d. none of the above

117. Where the debtor has omitted to intimate, and there are no other circumstances indicating to which debt the payment is to be applied:

a. the creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor, provided its recovery is not barred by the law

b. it is to be applied in discharge of the debts in order of time

c. it is to be applied in discharge of the debts in order of time provided they are not barred by the law of limitation

d. the creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor, whether its recovery is or is not barred by the law in force for the time being as to the limitation of suits

118. Section 62 of Contract Act relates to the

a. Novation

b. Agency

c. Breach

d. Compensation

119. Change of the nature of the obligation in a contract is known as:

a. Rescission

b. Novation

c. Renovation

d. Alteration

120. 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

121. ‘A’ owes ‘B’ Rs. 5,000. ‘A’ pays to ‘B’ Rs. 2,000 and ‘B’ accepts it in satisfaction of whole claim on ‘A’, here

a. whole debt is discharged

b. no debt is discharged

c. a part of debt is discharged

d. none of the above

122. A lends rupees' one lakh to B and B promises to repay it with interest @ 12% per annum after one year. The agreement also provides that if the amount is repaid within six months, the rate of interest will be 10%. The stipulation is:

a. valid

b. void

c. voidable

d. illegal

123. The obligation to restore advantage in a void agreement is provided by:

a. Section 65 of the Indian Contract Act, 1872

b. Section 60 of the Indian Contract Act, 1872

c. Section 63 of the Indian Contract Act, 1872

d. Section 68 of the Indian Contract Act, 1872

124. The rule enunciated by Section 65 of Indian Contract Act, 1872 is applicable to agreements which are discovered void by:

a. Mistake

b. Failure of consideration

c. Impossibility

d. All the above

125. In Indian Contract Act, certain relations resembling with contracts are provided under

a. Chapter IV

b. Chapter V

c. Chapter VI

d. Chapter VII

126. The judicial basis of quasi-contractual obligation can be explained through the principle of:

a. Voluntary benefits

b. Just and reasonable solution

c. Unjust enrichment

d. “Indebitus—assumpsit”

127. The theory on which quasi-contractual obligations are based is to prevent unjust enrichment. Who is considered to be the real founder of this theory?

a. Lord Mansfield

b. Lord Wright

c. Anson

d. Lord Radcliffe

128. “No one is allowed to enrich himself at the expense of another.” This principle is known as:

a. quantum meruit

b. quantum valeat

c. quasi-contract

d. nudum pactum

129. A contract implied by law is known as:

a. contingent contract

b. quasi-contract

c. expressed contract

d. implied contract

130. ‘Doctrine of unjust enrichment’ was laid down by the Supreme Court in which one of the following cases?

a. SarlaMudgalv. Union of India

b. Mafatlal Industries Ltd. v. Union of India

c. S.K Bommai v. Union of India

d. Unni Krishnan v. State of A.P.

131. Which one of the following Sections of Indian Contract Act provides for the liability for necessary supplied to persons incompetent to contract?

a. Section 68

b. Section 11

c. Section 69

d. Section 25(1)

132. When a minor is supplied with necessaries of life, the supplier:

a. Cannot recover the price

b. Can recover the price

c. Can recover the price from the property of minor

d. Can file a criminal case

133. Under Section 68 of the Indian Contract Act, the minor:

a. is personally liable

b. only minor's property is liable

c. minor personally and his property both are liable

d. none of the above is correct

134. A minor having lost his parents, is maintained by his neighbor. Whether the neighbor can seek recovery of expenses?

a. Yes, in certain condition

b. No '

c. Yes, if minor’s guardianship is granted by court

d. None of the above

135. A person who supplies ‘Necessaries’ to a minor ' is entitled to be reimbursed from the property of the minor on the basis of a

a. Valid, contract

b. Voidable contract

c. Quasi contract

d. Contingent contract

136. Claim for necessaries of life supplied to a minor under Section 68 of the Indian Contract Act, 1872

a. Can be enforced against the guardian, if any, of the minor

b. Can be enforced against the minor personally on his attaining majority

c. Can be enforced against the minor’s property or estate, during his minority

d. Cannot be enforced at all

137. 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) and (c)

138. Section 70 of the Indian Contract Act does not apply in case of

a. government

b. minor

c. pardanashin lady

d. public corporation

139. ‘A’, a tradesman leaves his goods at B’s house by mistake. ‘B’ uses the goods as his own. Then:

a. B need not pay to ‘A’

b. B is bound to pay ‘A’

c. There is no contract

d. None of the above

140. In Indian Contract Act, the responsibility of finder of goods is provided under:

a. Section 68

b. Section 69

c. Section 70

d. Section 71

141. Finder of lost goods under Indian Contract Act, 1872 is a:

a. bailor

b. surety

c. bailee

d. none of the above

142. Ramaiah and Laxmaiah jointly owe Rs. 10,000 to Sattaiah, Ramaiah pays the amount to Sattaiah. Laxmaiah not knowing this fact again pays Rs. 10,000 to Sattaiah. In law he is bound to repay the amount to Laxmaiah. Which provision of India Contract Act 1872, contains the principle?

a. Section 73

b. Section 83

c. Section 93

d. Section 72

143. 77. A local development authority announced a housing scheme and accepted applications under it, subsequently finding that the scheme was in violation of the Master Plan cancelled it.

a. It is free to do so without any shackles of promissory estoppel.

b. It is not free to do so due to promissory estoppel.

c. It is free to do so without any shackles of promissory estoppel as there cannot be any estoppel against the Government in the exercise of its sovereign, legislative and executive functions.

d. None of the above.

144. Which of the following is not a quasi-contract:

a. Obligation of person enjoying benefit of non-gratuitous act

b. Responsibility of finder of goods

c. Quantum merit

d. Novation

145. Damages allowed under Section 73 of the Indian Contract Act, are

a. liquidated damages

b. compensatory damages

c. penal damages

d. none of the above

146. A sum fixed beforehand as, amount of compensation payable in the event of breach of contract is called

a. liquidated damage

b. penalty

c. Either (a) or (b)

d. Neither (a) and (b)

147. If the compensation to be paid on breach of contract is the genuine pre-estimate of the prospective damages, it is known as:

a. special damages

b. penalty

c. unliquidated damages

d. liquidated damages

148. Which of the following sections of the Indian Contract Act, 1872 imposes on a person, who sues for damages, a duty to mitigate the loss consequent upon the breach of contract?

a. Section 73

b. Section 72

c. Section 74

d. Section 75

149. The remedies for breach of contract are:

a. Punitive damages

b. Nominal damages

c. Compensatory damages

d. Exemplary damages

150. Breach of contract may be

a. actual only.

b. anticipatory only

c. actual or anticipatory

d. none of above

151. Hadley v. Baxendale is a leading case on

a. Anticipatory breach

b. Remoteness of damages

c. Breach of implied terms

d. All of these

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 gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance. He is liable:

a. To pay the whole penalty

b. To pay half penalty

c. It depends on the discretion of the judge

d. For no penalty

154. A having contracted with B to supply B with 1000 tons of iron at 100 Rs. a ton, to be delivered at a stated time, contracts with C for the purchase of 1000 tons of iron at 80 Rs a ton, telling C that he requires so for the purpose of performing his contract in B. C fails to perform, A will be entitled to-

a. loss which he suffered Rs. 20 per ton

b. no compensation

c. compensation for loss of profit along with any damages which he might have to pay to B on account of breach

d. none of the above

155. A agrees to sell to B a certain quantity of gunny bags deliverable on a future day. Before the due date, B assigns his beneficial interest in the contract to C. A commits a breach of contract. Which of the following is correct?

a. C is entitled to sue A for damages for not delivering the gunny bags

b. C is not entitled to sue for damages as it will amount to transfer of mere right to sue by B

c. C is not entitled to sue A for damages as there is no privity of contract between A and C

d. C is entitled to sue only to get his money back from B

156. Under Section 74 of the Indian Contract Act, 1872 the Court cannot award damages

a. equal to the amount stated in the contract

b. less than the amount stated in the contract

c. more than the amount stated in the contract

d. none of the above

157. In case of breach of contract which of the following remedy is available to the aggrieved party?

a. Suit for recession

b. Suit for damages

c. Suit for specific performance

d. All of these

158. A stipulation for increased interest from the date of default is known as

a. damage

b. penalty

c. liquidated damage

d. compensation

159. While determining damages for breach of contract, which of the following are taken into account?

a. Motive

b. Indirect loss

c. Means or remedying the inconvenience caused by non-performance.

d. All of these

160. What is the remedy available for breach of contract in a case where a person enjoys the benefit of non-gratuitous act although there exists no express agreement between the parties?

a. Suit for damages

b. Suit for injunction

c. Suit for ‘quantum meruit’

d. Suit for specific performance

161. ‘Quantum meruit’ means:

a. To the extent of the work done

b. Extent and quality

c. The amount involved

d. None of the above

162. A right to sue on “Quantum Merit” arises:

a. When a party has fully performed the contract

b. When a party partly performed the contract and is discharged by the other party

c. When a contract is discharged by impossibility of performance

d. When a contract becomes illegal

163. A party who does not suffer any loss in case of contract is entitled to:

a. Statutory damages

b. Liquidated damages

c. Exemplary damages

d. Nominal damages

164. The loss or damage arising from a breach of contract has to be ascertained:

a. At the date of the breach of contract

b. At the date of the making of contract

c. At the date of the frustration of contract

d. None of the above

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