A agrees to pay Rs.1000 to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes
1.Valid
2.Void
3.Voidable
4.illegal
A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department. This agreement is
1.Void
2.Valid
3.Voidable
4.Contingent
A agrees to pay Rs.50000 to B if he kills C. the agreement is
1.Void
2.Valid
3.Voidable
4.Contingent
A agrees to sell his car to B at a price which B may be able to pay. This agreement is
1.Void
2.Valid
3.Voidable
4.Contingent
A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A's consent was obtained by coercion. Here, the agreement is;
1.Void
2.Valid
3.Voidable
4.Unlawful
A and B both believe that a particular kind of rice is being sold in the market@Rs.3000 per quintel and A sells rice of that kind to B @3000/quintel. But in fact, the market price was Rs.4000, the contract is
1.Valid
2.Void
3.Voidable
4.illegal
A contingent contract depend on the happening of the future uncertain event can be enforced when the event;
1.Happens
2.Becomes impossible
3.Doesn't happen
4.Either of these
A contingent contract is;
1.Void
2.Voidable
3.Valid
4.illegal
A contract depend on the happening or non happening of the future uncertain event, is a
1.Uncertain contract
2.Contingent contract
3.Void contract
4.Voidable contract
A contract with the minor, which is beneficial for him, is;
1.Void ab initio
2.Voidable
3.Valid
4.Illegal
A mistake as to law not in force in India has the same effect as;
1.Mistake of fact
2.Mistake of Indian Law
3.Fraud
4.Misrepresentation
A proposal when accepted becomes a:
1.Promise
2.Contract
3.Offer
4.Acceptance
A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. This contract is
1.Valid
2.Void
3.Voidable
4.illegal
A void agreement is one which is
1.Valid but not enforceable
2.Enforceable at the portion of both parties
3.Enforceable at the portion of one party
4.Not enforceable in a Court of Law
A voidable contract is one which;
1.Can be enforced at the option of the aggrieved party
2.Can be enforced at the option of the both parties
3.Cannot be enforced in a court of laws
4.Court prohibits
A wrong representation when made without any intention to deceive the other party amounts to
1.Coercion
2.Undue influence
3.Misrepresentation
4.fraud
An agreement in restraint of legal proceedings is void. It does not cover an agreement which
1.Restrict absolutely the parties from enforcing their legal rights.
2.Cuts short the period of limitation
3.Discharges a party from liability or extinguishes the rights of a party
4.Provides for a reference to arbitration instead of court of law
An agreement made with free consent to which the consideration is lawful but inadequate is;
1.Void
2.Valid
3.Voidable
4.Unlawful
An agreement the object or consideration of which is unlawful, is:
1.Void
2.Valid
3.Voidable
4.Contingent
An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is
1.Valid
2.Void
3.Voidable
4.Contingent
An agreement which is enforceable by law at the portion of one or more of the parties thereon but not at the option of the other or others is a:
1.Valid Contract
2.Void Contract
3.Voidable Contract
4.Illegal Contract
An offer may lapse by
1.Revocation
2.Counter Offer
3.Rejection of offer by offeree
4.All of these
As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;
1.Void
2.Valid
3.Voidable
4.illegal
Consideration in sample term means
1.Anything in return
2.Something in return
3.Everything in return
4.Nothing in return
In case of anticipatory breach, the aggrieved party may treat the contract;
1.As discharged and bring an immediate action for damages
2.As operative and wait till the time for performance arrives
3.Exercise option either (a) or (b)
4.None of these
Moral pressure is involved in the case of
1.Coercion
2.Undue influence
3.Misrepresentation
4.fraud
On the acceptance of an offer by a offeree
1.Only the acceptor becomes bound by accepting the offer
2.Only the offeror becomes bound as his terms are accepted
3.Both the acceptor and offeree becomes bound by the contract
4.None of these
On the valid performance of the contractual obligations by the parties, the contract;
1.Is discharged
2.Becomes enforceable
3.Becomes void
4.None of these
Ordinarily, a minor's agreement is
1.Void ab initio
2.Voidable
3.Valid
4.Unlawful
Standing offer means
1.Offer allowed to remain open for acceptance over a period of times
2.Offer made to the public in general
3.When the offeree offers to qualified acceptance of the offer
4.Offer made to a definite person
The basis of 'quasi contractual relations' is the
1.Existence of a valid contract between the parties
2.Prevention of unjust enrichment at the expense of others
3.Provision contained in section 10 of the Contract Act
4.Existence of a voidable contract between the parties
The special damages ie, the damages which arise due to so a special or unusual circumstances
1.Are not recoverable altogether
2.Are illegal being punitive in nature
3.Cannot be claimed as a matter of right
4.Can be claimed as a matter of right
The threat to commit suicide amounts to
1.Coercion
2.Undue influence
3.Misrepresentation
4.fraud
When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;
1.Coercion
2.Undue influence
3.Fraud
4.Misrepresentation
When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as:
1.Abandonment of a contract
2.Remission of contract
3.Actual breach of contract
4.Anticipatory breach of contract
When the consent of a party is not free, the contract is:
1.Void
2.Voidable
3.Valid
4.Illegal
When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;
1.Void
2.Voidable
3.Valid
4.illegal
When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of
1.Either party to the agreement
2.A party whose consent was so obtained
3.A party who obtained the consent
4.None of these
When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a
1.Standing, open or continuing offer
2.Counter offer
3.Cross offer
4.Special offer
Where the consent of a party is obtained by misrepresentation, the contract is;
1.Valid
2.Void
3.Voidable
4.illegal
Where the consent of both the parties is given by mistakes, the contract is;
1.Void
2.Valid
3.Voidable
4.Illegal
Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under category of
1.Mutual and Concurrent
2.Conditional and dependent
3.Mutual and independent
4.Both (a) and (b)
Which is the following is false? An offer to be valid must;
1.Intend to create legal relations
2.Have certain and unambiguous terms
3.Contain a term the non‐compliance of which would amount to acceptance
4.Be communicated to the person to whom it is made
Which of the following is not an exception to the rule - No consideration, No contract.
1.Compensation for involuntary services
2.Love & Affection
3.Contract of agencies
4.Gift
Which of the following persons are not competent to contract?
1.Minors
2.Persons of unsound mind
3.Persons disqualified by law
4.All of these
Which of the following persons can perform the contract?
1.Promisor alone
2.Legal representatives of the Promisor
3.Agent of the Promisor
4.All of these
Which of the following statement is false?
1.Generally a stranger to a contract can not sue
2.A verbal promise to pay a time barred debt is valid
3.Completed gifts need no consideration
4.No consideration is necessary to create an agency
Which of the following statement is not true about minor's position in a form?
1.He cannot become a partner in an existing firm
2.He can become a partner in an existing firm
3.He can be admitted only to the benefits of any existing firm
4.He can become partner on becoming a major
Which of the following statement is true?
1.There can be a stranger to a contract
2.There can be a stranger to a consideration
3.There can be a stranger to a contract & consideration
4.None of the above
Which of the following statements is correct?
1.Ordinary damages are recoverable
2.Special damage is recoverable only if the parties knew about them
3.Remote or indirect damages are not recoverable
4.All of these