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Principles Of Equity MCQs SET-2
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1. Unlike common law, equity focuses primarily on:
a. The form of documents
b. The letter of the law
c. The spirit and intention of the parties
d. The technical wording of contracts
2. In contracts for the sale of land, if a party fails to complete performance within the fixed time, equity generally:
a. Cancels the contract immediately
b. Imposes criminal liability
c. Allows a reasonable time to complete the contract
d. Transfers the property to the court
3. Relief against penalties and forfeitures reflects the equitable principle that:
a. Compensation must always equal the penalty mentioned in the contract
b. The main objective of the contract is performance rather than punishment
c. Contracts must always be terminated upon breach
d. Penalties must always be strictly enforced
4. Under equity, compensation for breach of contract is considered:
a. The primary objective of the contract
b. A subsidiary matter compared to performance
c. Completely irrelevant
d. Mandatory in every case
5. A precatory trust may arise where the author uses expressions such as:
a. “I command” or “I order”
b. “I hope”, “I request”, or “I recommend”
c. “I transfer ownership”
d. “I legally bind”
6. A valid trust generally requires which of the following elements?
a. Intention, purpose, beneficiary, and trust property
b. Written agreement only
c. Registration with court
d. Government approval
7. In mortgage law, the mortgagor’s right to recover his property after repayment of debt is known as:
a. Right of possession
b. Right of redemption
c. Right of foreclosure
d. Right of inheritance
8. The principle protecting the mortgagor’s right of redemption is expressed in the maxim:
a. Equity follows the law
b. Once a mortgage, always a mortgage
c. Equity aids the vigilant
d. Equality is equity
9. The doctrine that prevents restrictions on the mortgagor’s right to redeem is known as:
a. Doctrine of laches
b. Doctrine of clogs on redemption
c. Doctrine of election
d. Doctrine of estoppel
10. Section 55 of the Contract Act deals with situations where:
a. A contract is made orally
b. Time is the essence of the contract
c. Contracts must be registered
d. Contracts must involve consideration
11. According to Section 55 of the Contract Act, if time is not the essence of the contract:
a. The contract becomes void
b. The contract becomes illegal
c. The promisee is entitled only to damages
d. The contract is automatically cancelled
12. Section 74 of the Contract Act provides that:
a. Full penalty mentioned in the contract must always be paid
b. Only reasonable compensation can be claimed for breach
c. Contracts cannot contain penalty clauses
d. Courts cannot award damages
13. Section 114-A of the Transfer of Property Act deals with:
a. Transfer of ownership in sale
b. Forfeiture clauses in leases
c. Mortgage registration
d. Partition of property
14. The maxim “Equity looks on that as done which ought to be done” means that:
a. Equity ignores contractual obligations
b. Equity treats obligations as fulfilled if they ought to have been performed
c. Equity only recognizes written contracts
d. Equity cancels incomplete transactions
15. According to this maxim, equity focuses on:
a. The literal wording of contracts
b. The acts of the legislature
c. The obligations and conscience of the person bound
d. Criminal liability of parties
16. Under this principle, equity interprets actions in such a way that they amount to:
a. What was written in statute
b. What ought to have been done
c. What the defendant prefers
d. What the court orders
17. In the example given, A left 50,000 Taka to trustee T to purchase land for B. If T fails to purchase the land and B dies, the money will go to:
a. Y (the heir of movable property)
b. X (the heir of immovable property)
c. T (the trustee)
d. The government
18. The reasoning in the above example is that equity treats the purchase of land as:
a. Invalid
b. Unnecessary
c. Already completed
d. Illegal
19. The doctrine that converts property from one form into another is known as:
a. Doctrine of election
b. Doctrine of conversion
c. Doctrine of estoppel
d. Doctrine of laches
20. Under the doctrine of conversion, property may be treated as:
a. Always immovable
b. Always movable
c. Money as land or land as money
d. State property
21. The doctrine of conversion was illustrated in the case of:
a. Walsh v. Lonsdale
b. Holroyd v. Marshall
c. Lachmere v. Lady Lachmere
d. Maddison v. Alderson
22. The assignment of future property for consideration is treated in equity as:
a. Void transaction
b. A contract to assign property
c. A criminal act
d. A mortgage
23. The leading case regarding assignment of future property is:
a. Holroyd v. Marshall
b. Walsh v. Lonsdale
c. Maddison v. Alderson
d. Ashby v. White
24. In Walsh v. Lonsdale, it was held that:
a. A lease must always be registered
b. An agreement for lease may be treated as a lease in equity
c. Oral leases are invalid
d. Tenancy must be joint tenancy
25. The doctrine of part performance allows contracts relating to land to be proved by:
a. Written registration only
b. Oral evidence when acts of part performance are shown
c. Government approval
d. Criminal proceedings
26. The leading case on the doctrine of part performance is:
a. Maddison v. Alderson
b. Holroyd v. Marshall
c. Walsh v. Lonsdale
d. Lachmere v. Lady Lachmere
27. In Bangladesh, equitable assignments generally operate as:
a. Transfer of legal estate immediately
b. Contract to be performed in future
c. Criminal liability
d. Automatic transfer of ownership
28. Under the Transfer of Property Act example given, if A contracts to sell property to B but sells it to C who has notice of the contract:
a. B cannot enforce the contract
b. B may enforce the contract against C
c. C automatically becomes absolute owner
d. The contract becomes void
29. Section 12 of the Specific Relief Act illustrates the principle of:
a. Specific performance of part of a contract
b. Transfer of ownership
c. Mortgage foreclosure
d. Criminal liability
30. According to the Trusts Act principle mentioned, if a person acquires property with notice of an existing contract affecting it:
a. He becomes absolute owner
b. The contract becomes void
c. He must hold the property for the benefit of the other party
d. The property passes to the state
31. The maxim “Equity imputes an intention to fulfill an obligation” means that:
a. Equity ignores obligations of parties
b. A person is presumed to do what he is legally bound to do
c. Equity cancels obligations automatically
d. Equity focuses only on written contracts
32. According to this maxim, equity examines primarily:
a. The criminal conduct of parties
b. The acts of the parties to determine intention
c. The social status of parties
d. Government policies
33. If a person under an obligation performs another act capable of fulfilling that obligation, equity will:
a. Treat the act as irrelevant
b. Consider the act as fulfilling the obligation
c. Cancel the obligation
d. Treat the act as illegal
34. In Sowden v. Sowden, the husband had covenanted to pay £50,000 to trustees for:
a. Buying gold
b. Purchase of land in a particular area
c. Establishing a business
d. Repayment of a debt
35. In Sowden v. Sowden, instead of paying the trustees, the husband:
a. Refused to perform the agreement
b. Purchased land in his own name for £50,000
c. Donated money to charity
d. Invested in a company
36. The court in Sowden v. Sowden held that the purchase of land by the husband was intended to:
a. Avoid the obligation
b. Fulfill his obligation under the marriage settlement
c. Cancel the trust
d. Transfer property to the trustees
37. Which of the following doctrines is associated with this maxim?
a. Doctrine of performance and satisfaction
b. Doctrine of eclipse
c. Doctrine of severability
d. Doctrine of pith and substance
38. The doctrine of satisfaction refers to:
a. Payment of criminal damages
b. Donation of something to extinguish a prior claim of the donee
c. Registration of property
d. Transfer of ownership by inheritance
39. The maxim relating to intention to fulfill obligation is mainly applied when:
a. The intention of the testator is presumed
b. The intention is expressly stated
c. Criminal liability is determined
d. A statute clearly governs the matter
40. Ademption refers to:
a. Cancellation of contracts
b. Substitution of a gift previously made in a will
c. Transfer of property through sale
d. Creation of trust
41. If a testator gives a gift to a beneficiary during his lifetime which corresponds to a legacy under his will, it is called:
a. Estoppel
b. Ademption
c. Conversion
d. Election
42. The presumption of advancement arises when property is transferred without consideration by:
a. Employer to employee
b. Father or person in loco parentis to a child
c. Business partners
d. Two strangers
43. The presumption of advancement generally applies in relationships such as:
a. Parent and child
b. Husband and wife
c. Mother and child
d. All of the above
44. The doctrine of advancement does not apply to:
a. Parent and child
b. Husband and wife
c. Man and his mistress
d. Mother and child
45. A power of appointment refers to:
a. A legal right to own property
b. Authority given to a person to dispose of property not his own
c. Right to inherit property automatically
d. Authority to sell government property
46. Relief against defective execution of power of appointment is granted in equity because:
a. Equity ignores obligations
b. It is the duty of a person to fulfill obligations such as paying debts or providing for children
c. Courts must punish parties
d. Statutory law requires it
47. According to the Succession Act example (Hasanali v. Popatal), the court held that:
a. The legacy replaced the deposit
b. The brother was entitled to both the legacy and the deposit
c. The deposit was cancelled
d. The legacy was invalid
48. In the Rajmanar case, where the will clearly indicated that the legacy satisfied the debt:
a. The beneficiary could claim both
b. The beneficiary could claim only the legacy
c. The beneficiary could not claim both the debt and the legacy
d. The will became void
49. According to the Trust Act principle mentioned, if a person contracts to buy property to hold on trust and purchases it:
a. He becomes absolute owner
b. He must hold the property for the benefit of the beneficiaries
c. The contract becomes void
d. The property passes to the government
50. According to the text, the doctrine of advancement:
a. Fully applies in Bangladesh
b. Does not apply in Bangladesh
c. Applies only to inheritance cases
d. Applies only to trusts
51. The maxim “Where equities are equal, law shall prevail” means that:
a. Equity always overrides law
b. Legal rights prevail when competing equities are equal
c. Equity ignores legal rights
d. Courts always divide property equally
52. According to the maxim, when two parties have equitable claims of equal value:
a. The court cancels both claims
b. Equity prefers the weaker party
c. The legal right takes precedence
d. The government acquires the property
53. The maxim operates on the principle that:
a. Equity replaces the law
b. Equity follows the law when equities are equal
c. Law ignores equitable rights
d. Courts must cancel contracts
54. If a person purchases property for valuable consideration without notice of a prior equitable right and obtains legal estate, he:
a. Loses priority
b. Gains priority both in equity and at law
c. Must share property equally
d. Cannot claim ownership
55. In the illustration given, if A sells land to C which is subject to B’s right of way:
a. C acquires absolute ownership free from B’s right
b. B loses his right
c. C takes the land subject to B’s right of way
d. The contract becomes void
56. In disputes over property transfer where both parties have equal equities, the party who succeeds is:
a. The one with moral advantage
b. The one with legal right
c. The one who files the case first
d. The one who pays more money
57. In the example where A agreed to sell property to B but later sold it to C with a registered document and possession:
a. B has stronger legal interest
b. C has stronger legal interest
c. Both have equal ownership
d. The property goes to the state
58. In the above example, B possesses only:
a. Legal interest
b. Equitable interest
c. Criminal liability
d. Statutory ownership
59. According to the maxim, equitable interest compared to legal interest is:
a. Stronger
b. Equal in all situations
c. Weaker when legal interest exists
d. Always superior
60. Which doctrines are based on the maxim “Where equities are equal, law shall prevail”?
a. Election, Marshalling, and Set-off
b. Laches, Estoppel, and Conversion
c. Ademption, Satisfaction, and Redemption
d. Part Performance, Election, and Estoppel
61. The maxim applies particularly in situations involving conflict between:
a. Criminal and civil law
b. Legal and equitable rights
c. Constitutional and statutory law
d. Public and private law
62. The maxim does not apply when:
a. Legal rights exist
b. Priority of time in equity determines the outcome
c. Property is movable
d. Contracts are oral
63. Section 78 of the Transfer of Property Act is based on the principle that:
a. Fraudulent transfers are void
b. A prior mortgagee may lose priority due to fraud, misrepresentation, or gross neglect
c. All mortgages must be registered
d. Mortgages cannot be transferred
64. Section 53 of the Transfer of Property Act provides that:
a. All property transfers must be registered
b. Transfers intended to defeat or delay creditors are voidable
c. Mortgages cannot be assigned
d. Equitable rights always prevail
65. One exception to the maxim occurs when:
a. There is a prior equitable right and a subsequent legal right
b. A contract is written
c. The parties agree mutually
d. The property is immovable
66. Another exception to the maxim arises when:
a. Legal rights exist
b. Equal equities exist but no legal right is present
c. The court has jurisdiction
d. The parties are relatives
67. In Bangladesh, where multiple mortgages are created over the same property without notice of prior mortgages:
a. The last mortgagee gets priority
b. The mortgages rank according to time
c. All mortgagees share equally
d. The government takes possession
68. If C pays off A’s mortgage and obtains assignment of the legal estate:
a. C loses priority
b. C gains precedence over B and becomes first mortgagee
c. B becomes the first mortgagee
d. The mortgage becomes void
69. If the first mortgagee does not possess the legal estate, the third mortgagee who pays him:
a. Gains priority over the second mortgagee
b. Gains equal priority
c. Does not gain priority over the second mortgagee
d. Automatically becomes first mortgagee
70. The maxim “Where equities are equal, first in time shall prevail” deals primarily with:
a. Criminal liability
b. Priority of competing interests
c. Constitutional disputes
d. Tax obligations
71. To understand this maxim properly, it is necessary to distinguish between:
a. Criminal and civil rights
b. Legal interest and equitable interest
c. Public and private law
d. Movable and immovable property
72. A legal interest in property generally arises when property is transferred:
a. Without consideration
b. For valuable consideration such as money or marriage consideration
c. Only through inheritance
d. Through oral agreements only
73. Which of the following persons may possess a legal interest in property?
a. Mortgagee
b. Lessee
c. Purchaser for valuable consideration
d. All of the above
74. An equitable interest is one that is recognized by:
a. Criminal courts
b. Chancery courts
c. Administrative tribunals
d. Revenue courts
75. In the case of a trust, the legal ownership of property is held by:
a. The beneficiaries
b. The trustee
c. The government
d. The court
76. In a trust arrangement, the beneficiaries possess:
a. Legal interest
b. Equitable interest
c. Criminal liability
d. Administrative rights
77. According to the general rule of this maxim, interests take effect:
a. According to their monetary value
b. According to the order of their creation
c. According to the decision of the court
d. According to the age of the parties
78. Under the general rule, the person whose right is created first:
a. Always loses priority
b. Receives priority in equity
c. Shares property equally
d. Transfers ownership to the state
79. An earlier equitable interest may be defeated by:
a. A later equitable interest
b. A legal interest acquired bona fide without notice
c. A verbal agreement
d. A moral claim
80. When there is no legal estate and only equitable interests exist:
a. The court cancels all interests
b. The first equitable interest in time prevails
c. The last interest prevails
d. The court divides the property equally
81. If A contracts to sell his house first to B and later to C, both interests being equitable:
a. C will have priority
b. B will have priority
c. Both will share the property
d. The contract becomes void
82. The maxim operates particularly where:
a. Both competing interests are equitable
b. Both parties have criminal claims
c. The property belongs to the government
d. There is no written contract
83. If two parties have rights over the same property, equity generally favors:
a. The one who paid more money
b. The one who acquired the interest first
c. The one who files the case first
d. The one who has better legal representation
84. In the boat sale illustration, the first buyer was entitled to the boat because:
a. He offered more money
b. His agreement was formed earlier in time
c. He had legal representation
d. He registered the boat
85. In the same illustration, the second buyer is entitled to:
a. Ownership of the boat
b. Compensation from the court
c. Refund of his money
d. Half ownership
86. The maxim emphasizes that priority between equitable interests is determined mainly by:
a. Value of property
b. Time of creation of interest
c. Government approval
d. Written documentation
87. The maxim “Equity acts in personam” means that equity acts upon:
a. Property involved in the dispute
b. The conscience of the person
c. Government authority
d. Written contracts only
88. Acting “in personam” means that equity primarily directs its orders against:
a. The land in dispute
b. The individual party to the suit
c. Government officials
d. Public institutions
89. The opposite concept of “in personam” is:
a. In rem
b. Ultra vires
c. Res judicata
d. Bona fide
90. In contrast to equity, common law usually acts:
a. In personam
b. In rem
c. In equity
d. In jurisdiction
91. According to the Earl of Oxford’s Case, in case of conflict between equity and common law:
a. Common law prevails
b. Equity prevails
c. Both are equal
d. The court dismisses the case
92. Lord Ellesmere explained that equity:
a. Competes with common law
b. Replaces common law
c. Acts upon the conscience of the parties
d. Eliminates legal rights
93. The view that equity should prevail over common law in case of conflict was also supported by:
a. King Charles I
b. King James I
c. Queen Elizabeth I
d. King Henry VIII
94. The maxim “Equity acts in personam” is particularly relevant in matters relating to:
a. Trusts and mortgages
b. Criminal liability
c. Taxation
d. Constitutional amendments
95. One condition for applying the maxim “Equity acts in personam” is that:
a. The property must be movable
b. The defendant must be within the jurisdiction of the court
c. The plaintiff must be a citizen
d. The case must involve a contract
96. Equity will not grant an order if:
a. The plaintiff requests damages
b. The order would violate the legal rules of another country
c. The property is movable
d. The dispute involves foreigners
97. Equity will not issue an order that cannot be enforced because:
a. Equity prefers statutory remedies
b. Equity does not act in vain
c. Equity favors the defendant
d. Courts lack jurisdiction
98. In Norris v. Chambres, it was stated that courts should not issue an order requiring:
a. Property registration
b. Intervention of a foreign court for enforcement
c. Payment of damages
d. Criminal prosecution
99. The case of Penn v. Baltimore involved:
a. A mortgage dispute
b. A boundary dispute regarding land in America decided by an English court
c. A criminal offence in England
d. A trust dispute in Scotland
100. In Penn v. Baltimore, the English court granted the remedy of:
a. Injunction
b. Specific performance
c. Damages
d. Cancellation of contract
101. In Ewing v. Orr Ewing, administration of the estate was allowed in England because:
a. The property was movable
b. Equity acts in personam
c. The deceased was English
d. The heirs requested it
102. In Richard West and Partners (Inverness) v. Dick, the court granted:
a. Damages
b. Specific performance
c. Criminal punishment
d. Mortgage relief
103. One limitation of the maxim is that the court must not grant an order which:
a. Benefits the plaintiff
b. Violates the legal rules of another country
c. Is written in a contract
d. Involves foreign property
104. Another limitation is that the order must be capable of:
a. Immediate sale of property
b. Execution without intervention of a foreign court
c. Registration in another country
d. Approval by government
105. According to the meaning of the maxim, courts of equity are often described as:
a. Courts of statute
b. Courts of conscience
c. Courts of taxation
d. Courts of contract
106. In the Indian subcontinent, the application of the maxim “Equity acts in personam” is reflected in:
a. Section 9 of CPC
b. Proviso to Section 16 of the Civil Procedure Code
c. Section 73 of Contract Act
d. Section 115 of Evidence Act
107. In the Madras case mentioned, the Privy Council applied the principle of:
a. Constructive notice under English law
b. Criminal liability
c. Administrative jurisdiction
d. Constitutional supremacy
108. The Bombay High Court followed the Privy Council decision in the case of:
a. Ram Coomar v. Macqueen
b. Dada Honaji v. Babaji
c. Waghela Rajsanji v. Shekh Masluddi
d. Norris v. Chambres
109. In Waghela Rajsanji v. Shekh Masluddi, the issue was whether:
a. A mortgage could be cancelled
b. A guardian could create personal liability on behalf of a ward
c. A trustee could transfer property
d. A contract could be rescinded
110. In Ram Coomar v. Macqueen, the Privy Council applied the doctrine of:
a. Conversion
b. Estoppel by holding out
c. Election
d. Laches