1. A proposal when accepted becomes

(a) A promise under section 2(b)

(b) A consideration under section 2(d)

(c) An agreement under section 2(e)

(d) A contract under section 2(h)

Ans. (a)

2. Every promise and every set of promises, forming the consideration for each other, is an

(a) agreement

(b) contract

(c) offer

(d) acceptance

Ans. (a)

3. The leading case of carlill v.carbolic smoke ball Co.is related

(a) General offer

(b) counter offer

(c) invitation to offer

(d) Lapsed offer.

Ans. (a)

4. The doctrine of privity of contract means that :

(a) A contract is a private affair between the parties

(b) Consideration can be supplied only by the parties to contract

(c) only parties to contract can sue and be sued upon the contract

(d) The contract can be enforced only by a civil and private action.

Ans. (c)

5. Quid pro quo means ———–.

( a) something in return

(b) Adequacy of consideration

(c) value of promise

(d) sufficiency of consideration

Ans. (a)

6.Consideration means:-

(a) must be real

(b) must not be illusory

(c) must have some value in the eyes of law

(d) all are correct

Ans. (d)

7. What can a catalogue of books, listing price of each book and specifying the place where the listed books are

available be termed as ?

(a) An offer

(b) An Invitation to offer

(c) An obligation to sell book

(d) A promise to make available the books at the listed place

Ans. (b)

8.The acceptance given by A on B’s invitation for lunch over phone is not a contract because of which one of the

following?

(a) The acceptance was given orally

(b) The parties did not talk face-to-face

(c) Invitation cannot be proved in the court of law

(d) There is no intention to create a legal obligation.

Ans. (d)

9. Which is correct

(a) proposal + acceptance =promise

(b) promise + consideration =agreement

(c) agreement + enforceability =contract

(d) all of the above .

Ans. (d)

10. 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

Ans. (b)

11. Communication of acceptance is complete as against the proposer

(a) when it comes to the knowledge of the proposer

(b) when it is put in the course of transmission to him so as to be out of power of the acceptor

(c) when the acceptance is communicated to the proposer

(d) all the above

Ans. (b)

12. Communication of acceptance is complete as against the acceptor

(a) When it comes to the knowledge of the proposer

(b) When it is put in the course of transmission

(c) When it is communicated to the acceptor that the acceptance has reached the proposer

(d) When the proposer conveys the acceptance to the acceptor.

Ans. (a)

13. Parties are not competent to contract if any of them is

(a) minor

(b) Insane

(c) declared unqualified

(d) all the above

Ans. (d)

14. 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 .

Ans. (d)

15. Consent under section 13 means

(a) agreeing on the same thing in the same 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 .

Ans. (a)

16. An agreement in restraint of trade under section 27 is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

Ans. (c)

17.An agreement by way of wager under section 30 is

(a) void

(b) voidable

(c) valid

(d) unenforceable

Ans . (a)

18. An agreement in connection with horse -racing under section 30 is

(a) unlawful

(b) void

(c) voidable

(d) valid

Ans. (d)

19. An agreement in restraint of marriage under section 26 is

(a) void

(b) voidable

(c) valid

(d) unenforceable.

Ans. (a)

20. Agreement without consideration is valid

(a) when made out of love & affection due to near relationship

(b) when made to compensate a person who has already done something voluntarily

(c) when made to pay a time barred debt

(d) all the above

Ans. (d)

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

(a) happens

(b) becomes impossible

(c) does not happen

(d) none of the above is correct

Ans. (a)

22. An agreement to do an act impossible in itself under section 56 is

(a) void

(b) valid

(c) voidable

(d) unenforceable.

Ans. (a)

23. 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 of the above.

Ans. (d)

24. Rescission of the contract means

(a) The renewal of original contract

(b) cancelation of contract

(c) alteration of contract

(d) substitution of new contract in place of earlier one .

Ans. (b).

25. 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 minors property or estate

(d) can be enforced against the guardian ,if any ,of the minor.

Ans. (c)

26. In case of breach of contract, compensation can be claimed under section 73

(a) for the proximate and natural consequences of breach

(b) for remote consequence of the breach

(c) for indirect consequences of the breach

(d) all the above .

Ans . (a)

27. 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

Ans. (d)

28. 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)

Ans. (b)

29. Under 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 parties

(d) All of the above

Ans. (d)

30. Competency to contract relates to

(a) Age of the parties

(b) soundness of mind of the parties

(c) Both age & soundness of mind

(d) Intelligence of the parties

Ans. ( c)

31. Which decision has laid down the principle that contract by a minor is void ab initio?

(a) Durga prasad v. Baldeo

(b) mohori Bibi v. Dharmo Das Ghosh

(c) Iswaran Pillai v. Sonnivaveru

(d) chinayya v. Ramayya

Ans. (b)

32. A threat to commit suicide in performance of the contract amounts to

(a) undue influence

(b) fraud

(c) misappropriation

(d) coercion

Ans. (d)

33. A master asks his servant to sell his bike to him at a price less than the market price .This contract can be

avoided by the servant on the ground of:

(a) coercion

(b) fraud

(c) mistake

(d) undue influence

Ans. (d)

34. Where both parties are under mistake as to matter of fact ,the agreement will be –

(a) Enforceable

(b) voidable

(c) Not void

(d) void

Ans. (d)

35. Where one of the parties is under a mistake of fact ,the contract is

(a) valid

(b) void

(c) void

(d) Illegal

Ans. (a)

36. A promise to pay a debt barred by limitation, has been made enforceable under which section of the Indian contract

act?

(a) section 32

(b) section 47

(c) section 25

(d) section 8

Ans. (c)

37. 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

Ans. (c)

38. A having advanced money to his son ,B , during his minority, upon B’s coming of age obtains, by misuse of parental

influence, a bond from B for a greater influence, a bond from B for a greater amount than the sum due in respect of the

advance .A employs

(a) coercion

(b) fraud

(c) undue influence

(d) misrepresentation

Ans. (c)

39. ‘A’ promises to maintain ‘B’ s child . ‘ B’ promises to pay ‘A’ Rs 1000 yearly for the purpose .The consideration is

:

(a) Lawful

(b) unlawful

(c) No consideration

(d) none of these

Ans. (a)

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

This agreement is :

(a) voidable

(b) void

(c) Enforceable

(d) Non- Enforceable

Ans. (b)

41. Which one of the following is not provided in section 4 of the contract Act, 1872?

(a) Communication of a proposal

(b) Communication of acceptance

(c) communication of revocation

(d) Revocation of proposals and acceptance

Ans. (d)

42. 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 canot

(d) An offer can not be revoked but acceptance can be

Ans. (a)

43. In case 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.

Ans. (a)

44. A minor’s 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) .

Ans. (a)

45. Due to mistake as to the foreign law by the both parties, the contract becomes-

(a) valid

(b) voidable

(c) void

(d) Illegal

Ans. (c)

46. 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) .

Ans. (b)

47. 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.

Ans. (c)

48. The correct sequence in formation of contract is

(a) offer, consideration, acceptance, agreement

(b) agreement, consideration, offer, acceptance

(c) offer, acceptance, consideration, agreement

(d) offer, acceptance, agreement, consideration

Ans. (c)

49. Match List 1 with List 2 and select the correct answer by using the codes given below the list:

List 1 List 2

(case) (case)

A. Lalman shukla v. 1. Privity of

Appana dutt contract

B. Mcpherson v. 2. General

Appanna offer

C. Banwarilal v. 3.Invitation

Sukhdarshan to treat

Dayal

D. M. C. Chackoo v. 4.Intention

State Bank of to create

Travancore legal Relationship

      A B C D

(a) 1 4 3 2

(b) 2 3 4 1

(c) 1 3 4 2

(d) 2 4 3 1

Ans. (b)

50. As a general principle of law of contract, which one of the following is not an essential of a valid contract?

(a) Writing

(b) Competency to contract

(c) Lawful consideration and Lawful object

(d) Free consent

Ans. (a)

51. What is the terminology used to describe a situation when two parties make identical offers to each other in

ignorance of each other’s offer?

(a) offer

(b) cross offer

(c) counter offer

(d) conditional offer

Ans. (b)

52. An auction turns into a binding contract:

(a) Upon fall of the hammer

(b) Upon quotation of the highest bid

(c) Upon actual signing of contract

(d) Upon mentioning of reserve price

Ans. (a)

53. Which one of the following ingredients is not necessary for contract

(a) proposal

(b) Acceptance

(c) consideration

(d) property

Ans. (d)

54. Union of India v. Maddala Thathaiah is an illustration, where the tender was in the form of

(a) public offer

(b) standing offer

(c) specific offer

(d) General offer

Ans. (b)

55. The Indian contract Act was enacted in the year:

(a) 1950

(b) 1938

(c) 1945

(d) 1872

Ans. (d)

56. A tender in a newspaper is

(a) invitation to offer

(b) promise

(c) offer

(d) invitation for acceptance

Ans. (a)

57. Which one of the following statements is not correct?

(a) oral acceptance is a valid acceptance

(b) Acceptance must be in writing

(c) Acceptance must be communicated

(d) Acceptance must be in the prescribed manner

Ans. (b)

58. 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

Ans. (d)

59. An agreement not enforceable by law is said to be :

(a) void contract

(b) voidable contract

(c ) illegal contract

(d ) quasi-contract

Ans. (a)

60. According to section 10 of the contract Act which of the following is not essential to convert an agreement into a

contract?

(a) Free consent

(b) Competence to contract

(c) Lawful consideration with lawful object

(d) Certainty of terms of the agreement

Ans. (d)

61. Undue influence has been defined under section ———–of the Indian contract Act, 1872

(a) 16

(b) 23

(c) 15

(d) None of the above

Ans. (a)

62. Which one of the followings does not amount to fraud?

(a) Active concealment of a fact

(b) A promise made without any intention of performing it

(c) Suggestion as to a fact, which is not true, by one who does not believe it to be true

(d) A representation made without knowing it to be false, honesty believing it to be true

Ans. (d)

63. An agreement with minor is void, hence:

(a) Minor is never allowed to enforce such agreement

(b) Minor is allowed to enforce such agreement, if it was made for his benefit

(c) Minor is always allowed to enforce such agreement

(d) Minor is allowed to enforce such contract when other party makes no objection

Ans. (b)

64. The essence of liquidated damage is

(a) genuine pre-estimate of damage

(b) less than probable damage

(c) more than probable damage

(e) Payment of money in terrorem

Ans. (a)

65. What is an agreement to discover a treasure by magic?

(a) valid contract as it is voluntarily concluded

(b) void contract as it is impossible of performance

(c ) voidable contract as it amounts to misrepresentation

(d ) unenforceable contract as it is against notions of public policy

Ans. (b)

66. 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

Ans. (c)

67. 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

Ans. (c)

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

(a) Hadley v. Baxendale

(b) carlill v. Carbolic smoke Ball co.

(c) Satyabrata Ghosh v. Mugneeram

(d) Madras Railway co. v. Govind Rao

Ans. (c)

69. The effect of novation, rescission and alteration of contract is provided under-

(a) Section 59 of the Indian contract Act, 1872

(b) Section 24 of the specific Relief Act, 1963

(c) Section 62 of the Indian contract Act, 1872

(d) section 73 of the Indian contract Act, 1872

Ans. (c)

70. A and B agree to marry each other. Before the time fixed for marriage, A goes mad.

(a) The contract becomes void

(b) The contract becomes voidable

(c) The contract was void ab initio

(d) None of the above

Ans. (a)

71. 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

Ans. (d)

72. 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

Ans. (d)

73. ‘A’ saves ‘B’ property from fire, the circumstances indicated that he had done so gratuitously. Whether ‘A’ is

entitled to

(a) compensation from ‘B’

(b) no compensation

(c) compensation from the Government

(d) compensation from heirs of ‘B’

Ans. (b)

74. 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

Ans. (b)

75. Breach of contract may be

(a) actual only

(b) anticipatory only

(c) actual or anticipatory

(d) none of above

Ans. (c).

76. A contract of guarantee has been defined

(a) under section 123

(b) under section 124

(c ) under section 125

(d ) under section 126

Ans. (d)

77. A guarantee

(a) has to be in writing

(b) can be oral

(c) can be oral or in writing

(d) neither (a) or (b).

Ans. (c)

78. 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

(d) none of the above

Ans. (b)

79. ‘The liability of the surety is coextensive with that of the principal debtor’. It has been provided under

(a) section 126

(b) section 127

(c) section 128

(d) section 130

Ans. (c)

80. Continuing Guarantee has been defined

(a) Under Section 124 of the Indian contract Act

(b) Under section 129 of the Indian Contract Act

(c) Under section 146 of the Indian contract Act

(d) Under section 147 of the Indian Contract Act

Ans. (b)

81. A continuing guarantee under section 130 is

(a) Irrevocable absolutely

(b) Revocable as regards future transaction

(c) Revocable absolutely.

(d) Either (a) or (b)

Ans. (b)

82. 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

Ans. (a)

83. The delivery of goods by one person to another for some specific purpose is known as

(a) Bailment

(b) Pledge

(c) Hypothecation

(d) Mortgage

Ans. (a)

84. Adomsen v. Jarvis is a leading case on

(a) Bailment

(b) Contract of Indemnity

(c) Contract of Guarantee

(d) pledge

Ans. (a)

85. Bailment is defined in

(a) Section 138 of the Indian Contract Act, 1872

(b) Section 140 of the Indian Contract Act, 1872

(c) section 148 of the Indian Contract Act, 1872

(d) Section 150 of the Indian Contract Act, 1872

Ans. (c)

86. Section 170 of Indian Contract Act deals with:

(a) General lien

(b) Particular lien

(c) Wharfinger lien

(d) Broker’s lien

Ans. (b)

87. In law of contract Bailor in pledge is called

(a) Pawnor

(b) pawnee

(c) Agent

(e) Bailee.

Ans. (a)

88. Under section 182 of the contract Act1872, National Textile corporation Ltd. Is

(a) a Government department

(b) an agent of the central Government

(c) not an agent of the Central Government

(d) an agent of the central Government if the President consents

Ans. (c)

89. 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

Ans. (c)

90. No consideration is necessary to create

(a) a contract of guarantee

(b) a contingent contract

(c) an agency

(d) a contract of insurance

Ans. (c)

91. An agency can be terminated by

(a) Agreement between parties

(b) By renunciation by the agent

(c) By completion of business of agency

(d) All the above

Ans. (d)

92. 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.

Ans. (c)

93. 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

Ans. (b)

94. What is true to 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).

Ans. (d).

95. 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.

Ans. (d)

96. The case of Hochester v. De La Tour deals with:

(a) Quasi-contract

(b) Doctrine of promissory estoppel

(c) Anticipatory breach of contract

(d) Quantum-merit

Ans. (c)

97. 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

Ans. (d)

98. 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).

Ans. (c)

99. 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.

Ans. (d)

100. A Contract of Life Insurance is a:

(a) contingent contract

(b) wagering contract

(c) contract of indemnity

(d) contract of guarantee

Ans. (a)