MCQs

MCQ Law of Contract [Part-3]

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101. The communication of a proposal is complete when it comes to 

 (a) The knowledge of that person 

(b) The object of the offer 

(c) The intention with which offer is made 

(d) The facts underlying the offer 

Ans.a

102. A person making a proposal is called ………….. 

(a) Promisor  

(b) Vendor  

(c) Contractor  

(d) Promise  

Ans.a

103. Which one of the following will constitute a valid acceptance?  

 (a) An enquiry as to fitness of the subject matter of contract.  

(b) A provisional acceptance  

(c) Addition of a superfluous term, while accepting an offer.  

(d) A conditional acceptance.  

Ans.a

104. Which one of the following statements is true?  

(a) Offer and acceptance are revocable  

(b) Offer and acceptance are irrevocable  

(c) An offer can be revoked but acceptance cannot 

(d) An offer cannot be revoked but acceptance can be revoked.  

Ans.a

105. The Communication of acceptance through telephone is regarded as complete when:  

 (a) Acceptance is spoken on the phone.  

(b) Acceptance comes to the knowledge of party proposing.  

(c) Acceptance is put in the course of transmission.  

(d) Acceptance has done whatever is required to be done by him.  

Ans.b

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106. Which one of the following falls into the category of offer?  

 (a) Newspaper advertisement regarding sale. 

(b) Display of goods by a shopkeeper in his window with prices marked on them  

(c) An advertisement for a concert.  

(d) Announcement of reward to the public.   

Ans.d

107. A sees an article marked “Price Rupees Twenty” in B’s shop .He offers B  20 for the article. B refuses to sell saying the article is not for sale. Advice A.  

(a) A cannot force B to sell the article at ` 20  

(b) A can force B to sell the article at ` 20  

(c) A can claim damages  

(d) A can sue B in the Court. 

Ans.a 

 108. Which one of the following statements is incorrect?  

 (a) Oral acceptance is a valid acceptance.  

(b) Mere silence is not acceptance  

(c) Acceptance must be communicated  

(d) Acceptance may not be in the prescribed manner  

Ans.d

109. Consider the following statement: 

(1) There is no difference between the English Law and Indian Law with regard to acceptance through post. (2) Both Under the English Law and the Indian Law a contract is concluded when the letter of acceptance is posted. (3) Under the Indian Law when the Letter of acceptance is posted it is completed only as against the proposer. 

Which of the above statements is/are correct?  

 (a)1 and 2 

(b) 2 alone 

(c) 3 alone 

(d) None 

Ans.c

110. In Commercial and business agreements, the intention of the parties to create legal relationship is   

 (a) Presumed to exist  

(b) To be specifically expressed in writing  

(c) Not relevant or all  

(d) Not applicable.  

Ans.a

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111. An agreement is a Voidable Contract when it is  

(a) Enforceable  

(b) Enforceable by Law at the option of the aggrieved party  

(c) Enforceable by both the parties  

(d) Not enforceable at all. 

Ans.b 

 112. A Contract creates………….. 

 (a) Rights in personam  

(b) Rights in rem  

(c) Only rights and no obligations  

(d) Only Obligations and no rights.  

Ans.a

 113. An agreement not enforceable by Law is said to be void under section ……………. of the Indian Contract Act.  

(a) Section 2(a)  

(b) Section 2(b)  

(c) Section 2(f)  

(d) Section 2(g)  

Ans.d

114. When the contract is perfectly valid in its substance but cannot be enforced because of certain technical defects. This is called a/ an-  

 (a) Unilateral Contract  

(b) Bilateral Contract  

(c) Unenforceable Contract  

(d) Void Contract  

Ans.c

 115. The term” Proposal or offer” has been defined in – of the Indian contract Act.  

 (a) Section 2(a)  

(b) Section 2(b)  

(c) Section 2(c)  

(d) Section 2(d)  

Ans.a

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 116. The term” Promise” has been defined in ………….. of the Indian Contract Act.  

(a) Section 2(a)  

(b) Section 2(b)  

(c) Section 2(c)  

(d) Section 2(d)  

Ans.b

 117. The person making the proposal is called ………….  

 (a) Promisor  

(b) Promisee  

(c) Participator  

(d) Principal   

Ans.a

118. Offer implied from conduct of parties or from circumstances of the case is called ………..  

(a) Implied offer  

(b) Express offer  

(c) General offer  

(d) Specific offer 

Ans.a

 119. An offer made to a (i) Specific person, or (ii) a group of persons is known as 

(a) Standing offer  

(b) Specific offer  

(c) Special offer  

(d) Separate offer  

Ans.b

 120. Communication of proposal is complete when it comes to the knowledge of ………..  

(a) The person to whom it is made  

(b) The proposer  

(c) Either (a) or (b)  

(d) The Court.  

Ans.a

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121. Terms of an offer must be ……… 

 (a) Ambiguous  

(b) Uncertain  

(c) Definite  

(d) Vague

Ans.c  

 122. A contingent contract is 

 (a) Void  

(b) Voidable  

(c) Valid  

(d) Illegal  

Ans.c

123. A contract is said to be discharged or terminated 

 (a) When the rights and obligation are completed  

(b) When the contract becomes voidable  

(c) Both (a) & (b)  

(d) None of the above  

Ans.a

124. Which is not the mode of discharge of contract 

 (a) Performance of contract  

(b) Lapse of time  

(c) Breach of contract  

(d) Injunction 

Ans.d 

 125. A person finds certain goods belonging to some other persons. In such a case, the finder 

 (a) Becomes the owner of that good  

(b) Is under a duty to trace the real owner  

(c) Can sell that good if true owner is not found  

(d) Both (b) & (c)  

Ans.d

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126. If in a contract, the time lapses and if the party fails to perform the contract within specified time the contract becomes  

(a) Voidable  

(b) Void  

(c) Illegal  

(d) Enforceable in the court  

Ans.a

127. Change in one or more of the important terms in a contract, it is the case of 

 (a) Novation  

(b) Rescission  

(c) Remission  

(d) Alternation  

Ans.d

128. In both the cases, devolution of joint liabilities and devolution of joint rights, if a promisor dies, who will perform on behalf of him 

 (a) Other promiser   

(b) His legal representation  

(c) Both (a) & (b)  

(d) None of the above  

Ans.c

129. A contract which is impossible to perform is 

 (a) Voidable  

(b) Void  

(c) Illegal  

(d) Enforceable  

Ans.b

130. A party entitled to rescind the contract, loses the remedy where 

(a) He has ratified the contract  

(b) Third party has acquired right in good faith  

(c) Contract is not separable  

(d) All of the above  

Ans.d

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131. The special damages i.e. the damages which arises due to some special or unusual circumstances  

(a) Are not recoverable altogether  

(b) Are illegal being positive in nature  

(c) Cannot be claimed as a matter of right  

(d) Can be claimed as a matter of right  

Ans.d

132. Which of the following statement is/are correct  

 (a) Ordinary damages are recoverable  

(b) Special damages are recoverable only if parties know about them  

(c) Remote or indirect damages are not recoverable  

(d) All of these  

Ans.c

133. Exemplary damages are not awarded in such case  

(a) Breach of promise to marry  

(b) Wrongful dishonour & customers cheque by banker  

(c) Breach of any business contract    

(d) None of the above  

Ans.b

134. Damages which the contracting parties fix at the time of contract in case of breach  

 (a) Unliquidated Damages  

(b) Liquidated Damages  

(c) Nominal Damages  

(d) None of the above  

Ans.b

135. A order of court restraining a person from doing a particular act, it’s a case of 

(a) Specific performance 

(b) Injunction 

(c) Both (a) & (b) 

(d) None of the above 

Ans.b 

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136. Under the Indian Contract Act, the contract of indemnity is restricted to such cases  

 (a) Where the loss promise to be reimbursed is caused by the conduct of the promisor or any other person  

(b) The loss caused by the any events or accident which does not depend upon conduct of any person  

(c) Both (a) & (b)  

(d) None  

Ans.b

137. What is the ratio of parties in contract of indemnity and contract of guarantee  

 (a) 2 : 3  

(b) 3 : 2  

(c) 1 : 3  

(d) 2 : 1  

Ans.a

138. In contract of indemnity, what is the liability of indemnifier against the indemnified 

 (a) Primary  

(b) Secondary   

(c) No liability  

(d) Both (a) & (b)  

Ans.a

139. In case of contract of guarantee, what is the liability of the surety against the principal debtor 

 (a) Primary  

(b) Secondary  

(c) No liability  

(d) Fully liable  

Ans.b

140. Which is not the case of discharge of surety  

 (a) By notice of revocation  

(b) By death of surety  

(c) If creditor releases the principal debtor  

(d) None of the above  

Ans.d

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141. What is the right of the bailee against the goods 

 (a) Owner  

(b) Possessor  

(c) Bailee can sell those goods  

(d) Both (a) & (b)  

Ans.b

142. In case of Contract of guarantee, if the creditor loses or parts with any security which the debtor provides him at time of contract, the surety is discharged to the extent of 

 (a) The value of the security  

(b) The surety can be fully discharged  

(c) The surety can claim damages  

(d) All of the above  

Ans.a

143. Which one is not the duties of bailee  

 (a) The bailee must take care of goods as of his goods.  

(b) The bailee cannot use bailor’s goods in an unauthorised manner.  

(c) The bailee should return the goods without demand on the expiry of the time period.   

(d) He can set up adverse title to the goods.  

Ans.d

 144. A lien which is available only against that property of which the skill and labour have been exercised 

 (a) General Lien  

(b) Particular Lien  

(c) Ordinary Lien  

(d) Both (a) & (b)

Ans.b  

145. Which is not the case of termination of bailment 

 (a) Where the bailee wrongfully uses or disposes of the goods bailed.  

(b) When the period of bailment expires  

(c) When the object of bailment has been achieved  

(d) None of the above  

Ans.d

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146. An agency may also arise by 

 (a) Estoppel  

(b) Necessity  

(c) Ratification  

(d) All of the above  

Ans.d

 147. A mercantile agent employed to sell goods which have been placed in his possession or contract to buy goods for his principal 

 (a) Factors  

(b) Brokers  

(c) Del Credere Agent  

(d) Auctioneers  

Ans.a

147. The threat to commit suicide amounts to  

 (a) Coercion  

(b) Undue influence  

(c) Misrepresentation  

(d) Fraud  

Ans.a

 148. Consensus-ad-idem is an essential of   

 (a) Agreement   

(b) Promise  

(c) Both (a) & (b)  

(d) Consideration  

Ans.a

149. Agreement which are not contracts  

 (a) Social Matters  

(b) Relating to partnership  

(c) Domestic Agreements  

(d) Both (a) & (c)  

Ans.b

150. Offeror is ………… 

(a) Party to whom offer is made  

(b) Third party  

(c) Party making an offer   

(d) None of the above  

Ans.c

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